Company: CODI-PB
Filing Date: 2025-12-08
Form Type: 10-K/A
Source: 0001345126-25-000078
Chunk: 148

Company: Compass Diversified Holdings
Filing Date: 2025-12-08
Form: 10-K/A
Chunk 148
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 the year ended December 31, 2024 compared to $109.9 million for the comparable period in 2023, an increase of $12.9 million. The increase in interest expense in the current period reflects higher average amounts outstanding on our revolving credit facility in the current year, and an increase of $11.4 million in interest expense related to financing arrangements at our Lugano business.

Loss on Sale of Crosman

On April 30, 2024, Velocity Outdoor sold Crosman Corporation ("Crosman"), its airgun product division. Velocity recorded a loss on the sale of Crosman $24.2 million in the year ended December 31, 2024.

Provision for income taxes (as restated)

We had income tax expense of $18.6 million during the year ended December 31, 2024 compared to income tax expense of $8.2 million in 2023, an increase of $10.4 million in 2024 as compared to 2023. Our effective tax rate in the year ended December 31, 2024 was (6.0)%, compared to an effective income tax rate of (3.1)% during the same period in 2023. Our tax rate is affected by recurring items, such as tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions. It is also affected by discrete items that may occur in any given year but are not consistent from year to year. In addition to state income taxes, the items with the most significant impact on the difference between our statutory U.S. federal income tax rate of 21% and our effective

<div align='center'>92</div>

income tax rate in 2024 was the limitations on the net operating loss carryforwards and utilization of tax credits at our subsidiaries, and the loss on the sale of Crosman in the second quarter of 2024.

<div align='center'>Year ended December 31, 2023 as restated compared to the Year ended December 31, 2022 as restated</div>

Net revenues (as restated)

Net revenues for the year ended December 31, 2023 decreased by approximately $66.9 million or 3.8% compared to the corresponding period in 2022. During the year ended December 31, 2023 compared to 2022, we saw a decrease in net revenue at BOA ($52.9 million decrease), Velocity Outdoor ($60.0 million