Company: CODI-PB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001345126-25-000015
Chunk: 35

Company: Compass Diversified Holdings
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 35
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59.4 %Selling, general and administrative expense$20,728 27.9 %$19,448 29.0 %$27,576 34.5 %Impairment expense$— — %$57,810 86.2 %$— — %Segment operating income (loss)$4,024 5.4 %$(57,057)(85.1)%$(1,877)(2.3)%

Pro forma results of operations include the following pro forma adjustments as if we had acquired PrimaLoft January 1, 2022:

•    Amortization expense associated with the intangible assets recorded in connection with the purchase price allocation of PrimaLoft of an additional $6.4 million for the year ended December 31, 2022.

•    Management fees of $0.5 million that would have been payable to the Manager during the year ended December 31, 2022. 

91

 Year ended December 31, 2024 compared to the Year ended December 31, 2023

Net sales

Net sales for the year ended December 31, 2024 were $74.2 million, an increase of $7.2 million as compared to net sales of $67.1 million for the year ended December 31, 2023. The increase in net sales during the year ended December 31, 2024 is attributable to inventory levels in the retail market normalizing, which has resulted in an increase in orders from retailers with brand partners. 

Gross profit

Gross profit for the year ended December 31, 2024 increased $4.6 million as compared to the year ended December 31, 2023, primarily due to the increase in net sales noted above. Gross profit as a percentage of net sales for both the year ended December 31, 2024 and December 31, 2023 was 62.7%.

Selling general and administrative expense

Selling, general and administrative expense for the year ended December 31, 2024 was $20.7 million, or 27.9% of net sales compared to $19.4 million, or 29.0% of net sales for the year ended December 31, 2023. Selling, general and administrative expense in the prior period included $2.4 million in integration services fees associated with the Company's acquisition of PrimaLoft