Compass Diversified Holdings (CODI) has reported 69.78 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $49.70 million, or $0.75 a share in the quarter, compared with $164.50 million, or $3.01 a share for the same period last year. Revenue during the quarter surged 36.50 percent to $252.28 million from $184.83 million in the previous year period. Gross margin for the quarter contracted 227 basis points over the previous year period to 32.67 percent. Total expenses were 95.50 percent of quarterly revenues, up from 92.09 percent for the same period last year. That has resulted in a contraction of 341 basis points in operating margin to 4.50 percent.
Operating income for the quarter was $11.36 million, compared with $14.63 million in the previous year period.
"During the third quarter, we continued to generate consistent free cash flow across both our niche industrial and our branded consumer businesses," stated Alan Offenberg, chief executive officer of Compass Diversified Holdings. "In particular, our ERGObaby, Manitoba Harvest and Sterno Products subsidiaries each reported year-over-year, double-digit EBITDA growth aided by our recent add-on acquisitions."
Operating cash flow improves significantlyCompass Diversified Holdings has generated cash of $60.59 million from operating activities during the nine month period, up 30.39 percent or $14.12 million, when compared with the last year period. The company has spent $417.28 million cash to meet investing activities during the nine month period as against cash inflow of $246.59 million in the last year period
Cash flow from financing activities was $300.41 million for the nine month period as against cash outgo of $225.45 million in the last year period.
Cash and cash equivalents stood at $26.39 million as on Sep. 30, 2016, down 70.26 percent or $62.34 million from $88.72 million on Sep. 30, 2015.
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