Compass Diversified (CoDi), citing supply chain and inflationary issues and lower year-over-year demand for products within its Velocity Outdoor business, is forecasting a temporary slowdown in its 2022 growth rate that will likely be lower than its long-term growth rate target. Also, the company, whose portfolio includes Boa Technology and Marucci Sports, has decided to postpone a planned initial public offering for its 5.11 technical gear and apparel business due to current suboptimal market conditions.
The group’s fourth-quarter net income attributable to shareholders reached $22.1 million, up sharply from $8.4 million a year earlier, on a 27 percent improvement in total revenues to $536.6 million. Boa, which CoDi acquired at the end of 2020, booked a 60 percent increase in adjusted Ebitda to $14.1 million in the quarter on 55 percent higher revenues of $45.1 million, led by athletic, outdoor and snow applications for its lacing technology.
For the full year ended Dec. 31, the group’s operating income was 153 percent higher year-over-year at $139.5 million on 35 percent revenue growth to $1.842 billion. Annual net income attributable to shareholders came in at $114.5 million, up from $22.8 million, thanks mainly to a capital gain on the sale of Liberty Safe.
Pro forma annual sales at Marucci Sports, specializing in baseball equipment, rose 79 percent to $118.2 million in 2021. The operating unit, which recently acquired Lizard Skins, a grip and bar tape specialist, posted a net income of $10.2 million from continuing operations. Velocity Outdoor’s revenues rose by 25 percent to $270.4 million, while the unit’s net income from continuing operations jumped 106 percent to $23.0 million. At Boa, 2021 pro forma revenues turned 55 percent higher at $165.2 million, generating a net income from continuing operations of nearly $21.2 million. Annual sales for 5.11 rose by 10.9 percent to $445 million, and the segment’s net income from continuing operations increased by 63 percent to nearly $20.2 million.
