Compass Diversified Holdings (CODI) saw its loss widen to $21.60 million, or $0.60 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $16.02 million, or $0.31 a share. Revenue during the quarter surged 50.03 percent to $289.99 million from $193.29 million in the previous year period. Gross margin for the quarter contracted 64 basis points over the previous year period to 32.53 percent. Operating margin for the quarter stood at negative 3.94 percent as compared to a positive 4.18 percent for the previous year period.
Operating loss for the quarter was $11.41 million, compared with an operating income of $8.08 million in the previous year period.
“During the first quarter, our leading middle market businesses generated stable operating results that were consistent with management’s expectations,” stated Alan Offenberg, Chief executive officer of Compass Diversified Holdings. “These results reflect strong performances at our Clean Earth, Sterno Products, ERGObaby and 5.11 subsidiaries, with each reporting year-over-year, double-digit revenue increases.”
Operating cash flow turns negative
Compass Diversified Holdings has spent $1.41 million cash to meet operating activities during the quarter as against cash inflow of $6.02 million in the last year period. Cash flow from investing activities was $120.02 million for the quarter, up 1,952.59 percent or $114.17 million, when compared with the last year period.
The company has spent $42.90 million cash to carry out financing activities during the quarter as against cash outgo of $22.14 million in the last year period.
Cash and cash equivalents stood at $115.28 million as on Mar. 31, 2017, up 58.86 percent or $42.71 million from $72.57 million on Mar. 31, 2016.
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