Company: CODI-PB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001345126-25-000015
Chunk: 51

Company: Compass Diversified Holdings
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 51
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 Company upon five business days’ notice and pursuant to which the Company may make no more than two draws by July 9, 2025. The initial $200 million draw was used to reduce the amount outstanding under the 2022 Revolving Credit Facility and for general corporate purposes.

The following table summarizes our cash activity for the years presented:

Year ended December 31,(in thousands)202420232022Cash provided by (used in) operating activities$(67,636)$78,080 $(28,293)Cash (used in) provided by investing activities(422,450)570,503 (626,723)Cash provided by (used in)  financing activities100,614 (260,163)556,885 Effect of exchange rates on cash and cash equivalents(1,278)786 (1,331)Increase (decrease) in cash and cash equivalents$(390,750)$389,206 $(99,462)

Cash Flow from Operating Activities

2024

Cash flows used in operating activities totaled approximately $67.6 million for the year ended December 31, 2024, which represents an increase in the use of cash in operating activities of $145.7 million compared to cash flow provided by operating activities of $78.1 million for the year ended December 31, 2023. A majority of the increase in cash used in operating activities was due to an increase in cash used for working capital in 2024. Cash used in operating activities for working capital for the year ended December 31, 2024 was $292.9 million, as compared to cash used in operating activities for working capital of $160.3 million for the year ended December 31, 2023. In the 

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current year, the increase in the cash used in operations is primarily attributable to our Lugano subsidiary, which has experienced significant revenue growth in 2024, and the acquisition of The Honey Pot Co. in January 2024. The decrease in the use of cash for working capital in the year ended December 31, 2023 primarily reflected inventory management strategies, as several of our businesses worked through higher inventory levels than normal during 2023. In 2022, these businesses substantially increased inventory levels to combat supply chain issues given longer lead times, resulting in higher cash outflows throughout that year. 

2023

Cash flows provided by operating activities totaled approximately $78.1 million for the year ended December 31, 2023, which