Compass Diversified Holdings (CODI) 2024 Q4 法說會逐字稿

Good afternoon and welcome to Compass Diversified's fourth quarter and full year 2024 conference call. (Operator Instructions). At this time, I would not like to turn the conference over to Cody Slach of Gateway Group for introductions and the reading of the Safe Harbor statement. Mr. Slach, you may now begin the conference.

下午好，歡迎參加 Compass Diversified 2024 年第四季和全年電話會議。（操作員指令）。目前，我不想將會議交給 Gateway Group 的 Cody Slach 進行介紹和宣讀安全港聲明。斯拉赫先生，現在可以開始會議了。

Thank you and welcome to Compass Diversified's fourth quarter and full year 2024 conference call. Representing the company today are Elias J. Sabo, CODI's Chief Executive Officer, Stephen Keller, CODI's Chief Financial Officer, and Pat Maciariello, Chief Operating Officer of Compass Group Management.

感謝您並歡迎參加 Compass Diversified 2024 年第四季和全年電話會議。今天代表公司的有 CODI 執行長 Elias J. Sabo、CODI 財務長 Stephen Keller 和 Compass Group Management 營運長 Pat Maciariello。

Before we begin, I'd like to point out that the Q4 and full year 2024 press release, including the financial tables and non-gap financial measure reconciliations. For subsidiary adjusted EBITDA, adjusted earnings, and pro forma net sales are available at the investor relations section on the company's website at compassdiversified.com.

在我們開始之前，我想指出第四季和 2024 年全年的新聞稿，其中包括財務表和非差距財務指標對帳。子公司調整後的 EBITDA、調整後的收益和預測淨銷售額可在公司網站 compassdiversified.com 的投資者關係部分查閱。

The company also filed its Form 10k with the SEC today after the market closed, which includes reconciliations of certain non-GAAP financial measures discussed on this call and is also available at the investor relations section of the company's website. Please note that references the EBITDA in the following discussions refer to adjusted EBITDA as reconciled to net income or loss from continuing operations in the company's financial filings.

該公司還在今日股市收盤後向美國證券交易委員會提交了 10k 表格，其中包括本次電話會議上討論的某些非 GAAP 財務指標的對帳表，也可在公司網站的投資者關係部分查閱。請注意，以下討論中提到的 EBITDA 是指與公司財務文件中持續經營淨收入或虧損相協調的調整後 EBITDA。

The company does not provide a reconciliation of its full year expected 2024 adjusted earnings, adjusted EBITDA, or subsidiary adjusted EBITDA because certain significant reconciling information is not available without unreasonable efforts, unless otherwise noted references in these remarks to company specific financial metrics.

該公司不提供其 2024 年全年預期調整後收益、調整後 EBITDA 或子公司調整後 EBITDA 的對賬，因為某些重要的對賬資訊若不付出不合理的努力則無法獲得，除非這些備註中對公司特定的財務指標另有說明。

Relate to the fourth quarter of 2024 and references to period to period increases or decreases in financial metrics are year over year. Throughout this call, we will refer to Compass Diversified as CODI or the company. Now allow me to read the following Safe Harbor statement.

與 2024 年第四季相關，且財務指標的同期增減均與去年同期相比有所差異。在整個通話過程中，我們將把 Compass Diversified 稱為 CODI 或該公司。現在請容許我宣讀以下安全港聲明。

During this conference call, we may make certain forward-looking statements, including statements with regard to the expectations related to the future performance of CODI and its subsidiaries, the impact and expected timing of acquisitions and divestitures, and future operational plans.

在本次電話會議中，我們可能會做出某些前瞻性陳述，包括有關 CODI 及其子公司未來業績的預期、收購和資產剝離的影響和預期時間以及未來營運計劃的陳述。

Words such as believes, expects, anticipates, plans, projects, should in future or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ on a material basis from those projected in these four statements, and some of these factors are enumerated in the risk factor discussion.

相信、期望、預期、計劃、預測、未來應該或類似表達旨在識別前瞻性陳述。這些前瞻性陳述受預測未來結果和條件的固有不確定性的影響。某些因素可能導致實際結果與這四個聲明中預測的結果有重大差異，其中一些因素在風險因素討論中列舉。

In the form 10k as filed with the SEC for the year ended December 31, 2024, as well as in other SEC filings. In particular, the domestic and global political and economic environment, disruption in the global supply chain, labor disruptions, inflation, changes in the US tariffs and import-export regulations, risks associated with the company generally due to natural disasters or social, civil, and political unrest and changing interest rates as well as difficulties in integrating acquired businesses all may have a significant impact on CODI.

在向美國證券交易委員會提交的截至 2024 年 12 月 31 日的年度 10k 表格中，以及在其他美國證券交易委員會文件中。具體來說，國內和全球政治經濟環境、全球供應鏈中斷、勞動力中斷、通貨膨脹、美國關稅和進出口法規的變化、通常由於自然災害或社會、國內和政治動盪以及利率變化而與公司相關的風險以及整合收購業務的困難都可能對 CODI 產生重大影響。

In our subsidiary companies, except as required by law, CODI undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. At this time, I would like to turn the call over to Elias Sabo.

在我們的子公司中，除非法律要求，否則 CODI 不承擔公開更新或修改任何前瞻性聲明的義務，無論是由於新資訊、未來事件或其他原因。現在，我想將電話轉給 Elias Sabo。

Thank you, Cody.

謝謝你，科迪。

Good afternoon and welcome to Compass Diversified fourth quarter earnings call. I'm very pleased to report that once again we delivered strong financial results. For the full year 2024, we achieved double digit sales growth and increased our adjusted EBITDA by more than 30%.

下午好，歡迎參加 Compass Diversified 第四季財報電話會議。我很高興地報告，我們再次取得了強勁的財務表現。2024 年全年，我們的銷售額實現了兩位數成長，調整後 EBITDA 成長了 30% 以上。

Growth in both revenue and adjusted EBITDA accelerated in the fourth quarter, exceeding our expectations for both the quarter and for the full year. Before I hand it over to Pat and Stephen to provide more details on our performance in the fourth quarter and for the full year, I want to take this opportunity to reflect on the progress we made in 2024 and also provide a little more color on both our long-term strategy and our current operating environment.

第四季營收和調整後 EBITDA 均加速成長，超出了我們對該季度和全年的預期。在將我們第四季度和全年業績的更多細節交給帕特和史蒂芬之前，我想藉此機會回顧一下我們在 2024 年取得的進展，並對我們的長期策略和當前營運環境提供更多說明。

2024 was a transformational year for CODI. We took concrete steps to shift our focus to more innovative and disruptive businesses that can grow faster and drive long-term value creation for all stakeholders. In 2024, we acquired the Honey Pot, a purpose-driven business focused on disrupting the feminine hygiene market by educating consumers and providing plant-derived, better for you, feminine care solutions.

2024 年是 CODI 轉型的一年。我們採取了切實措施，將重點轉向更具創新性和顛覆性的業務，這些業務可以更快成長，並為所有利害關係人創造長期價值。2024 年，我們收購了 Honey Pot，這是一家目標明確的企業，致力於透過教育消費者並提供植物來源的、更適合您的女性護理解決方案來顛覆女性衛生市場。

Further, our Altor subsidiary acquired Lifoam, a leading manufacturer of temperature-controlled packaging products that will expand our presence in the cold chain sector and diversify our customer base with additional blue chip cold chain accounts. We also strategically divested our Ergo Baby subsidiary, a global leader in premium juvenile products. And further streamlined our Velocity Outdoor business by divesting the Crosman airgun business.

此外，我們的 Altor 子公司收購了領先的溫控包裝產品製造商 Lifoam，這將擴大我們在冷鏈領域的影響力，並透過增加藍籌冷鏈帳戶來豐富我們的客戶群。我們也策略性地剝離了我們的子公司 Ergo Baby，該公司是高端青少年產品的全球領導者。並透過剝離 Crosman 氣槍業務進一步精簡了我們的 Velocity Outdoor 業務。

Both transactions were aimed at optimizing our long-term focus while ensuring these businesses are well positioned for their next phase of development under new ownership. Outside of our strategic M&A activity, we continue to focus on improving our capital structure. For the full year 2024, we raised more than $115 million in preferred equity. Adding this flexible, non-dilutive capital helps us deleverage our balance sheet and reduces our overall weighted average cost of capital, supporting our long-term strategy.

這兩項交易的目的都是為了優化我們的長期重點，同時確保這些業務在新的所有權下為下一階段的發展做好準備。除了策略併購活動之外，我們也持續致力於改善資本結構。2024 年全年，我們籌集了超過 1.15 億美元的優先股。增加這種靈活的、非稀釋性資本有助於我們降低資產負債表的槓桿率，降低我們的整體加權平均資本成本，從而支持我們的長期策略。

As we discussed at our investor day last month, we also bought back more than 400,000 shares of CODI Common stock in the fourth quarter. While our preference remains to use our capital to fund our long-term strategic plan, the large discount between our share price and what we believe to be the intrinsic value of our shares encouraged us to return capital to shareholders.

正如我們上個月在投資者日所討論的那樣，我們還在第四季度回購了超過 40 萬股 CODI 普通股。雖然我們仍然傾向於使用我們的資本來資助我們的長期策略計劃，但我們的股價與我們認為的股票內在價值之間的巨大折扣促使我們向股東返還資本。

As we move forward, we will continue to look for ways to drive shareholder value and expect to reinvest in our businesses to accelerate earnings growth while also looking for efficient ways to return capital to shareholders. Consistent with our goal of driving shareholder value, earlier this year, we revised our management services agreement.

隨著我們不斷前進，我們將繼續尋找提高股東價值的方法，並期望對我們的業務進行再投資以加速獲利成長，同時也尋找向股東返還資本的有效方法。為了實現提高股東價值的目標，今年早些時候，我們修改了管理服務協議。

While we discussed this in detail during our investor day, I want to reiterate it here as we believe this will have a meaningful impact on our shareholders. The key changes include implementing a sliding scale for base management fee, introducing an incentive management fee. Eliminating integration services fees on acquisitions and excluding excess cash from the management fee calculation.

雖然我們在投資者日詳細討論了這一點，但我想在這裡重申這一點，因為我們相信這將對我們的股東產生有意義的影響。主要變化包括實施基本管理費的滑動比例，引入激勵管理費。取消收購的整合服務費，並將多餘現金排除在管理費計算之外。

Collectively, these changes will significantly reduce long term costs for shareholders, further align management compensation with shareholder interests, increase the oversight of our board's compensation committee, and focus any performance rewards on active members of our management team.

總的來說，這些變化將顯著降低股東的長期成本，進一步使管理層薪酬與股東利益保持一致，加強對董事會薪酬委員會的監督，並將績效獎勵集中在管理團隊的活躍成員身上。

Organisationally, we are also excited about our emerging centers of excellence. These centers of excellence will focus on critical areas such as internal audit and financial controls, sustainability, AI, and business automation. These are areas that our individual subsidiaries may not have the resources or bandwidth to tackle independently. By helping to develop foundational frameworks and best practices, we enable our businesses to identify opportunities, ensure and ensure that our businesses stay ahead of industry shifts.

從組織角度來看，我們也對新興的卓越中心感到興奮。這些卓越中心將專注於內部稽核和財務控制、永續性、人工智慧和業務自動化等關鍵領域。我們的各子公司可能沒有足夠的資源或頻寬來獨立解決這些領域。透過協助開發基礎框架和最佳實踐，我們使我們的企業能夠發現機會，確保並確保我們的企業在行業變化中保持領先地位。

Whether it's improving financial compliance, strengthening sustainability principles to bolster corporate citizenship, or leveraging AI to improve operations, our centers of excellence represent a major opportunity to drive value and further differentiate both CODI and our subsidiaries. Looking ahead, we remain cautiously optimistic about CODI's prospects for 2025.

無論是提高財務合規性、加強永續發展原則以支持企業公民意識，還是利用人工智慧改善運營，我們的卓越中心都代表著推動價值並進一步區分 CODI 和我們的子公司的重大機會。展望未來，我們對 CODI 2025 年的前景仍然持謹慎樂觀的態度。

The CODI Momentum index, our proprietary gauge of economic activity based on booking and sales activities from our subsidiaries, currently reads 1.06. Well, this is a slight decline from year-end levels, it remains consistent with a stable outlook. Although we have observed a modest slowdown in economic activity in recent weeks, we continue to expect resilience and growth in the economy throughout 2025.

CODI 動量指數是我們根據子公司的預訂和銷售活動來衡量經濟活動的專有指標，目前為 1.06。嗯，這與年底水平相比略有下降，但仍與穩定的前景一致。儘管我們觀察到最近幾週經濟活動略有放緩，但我們仍然預計 2025 年全年經濟仍將保持復甦和成長。

Consumer spending remains steady, with higher income consumers standing out as a key driver. Given our portfolio's focus on innovative and differentiated solutions, many of which ultimately cater to more affluent consumers, we believe our businesses are well positioned to outperform the broader market. Obviously, geopolitical uncertainty driven by tariffs and the potential for a trade war create incremental risks for 2025.

消費者支出維持穩定，高收入消費者成為主要動力。鑑於我們的投資組合專注於創新和差異化的解決方案，其中許多最終迎合了更富裕的消費者，我們相信我們的業務完全有能力超越更廣泛的市場。顯然，關稅引發的地緣政治不確定性以及貿易戰的可能性將為 2025 年帶來更多風險。

We are monitoring the situation closely but believe that our subsidiaries have taken the right steps to diversify our supply chains and limit risk. We believe that our subsidiaries are positioned as well or better than our competition, and we expect to be able to successfully navigate the evolving tariff landscape. Our focus remains on acquiring and managing high quality companies for long term success.

我們正在密切關注局勢，但相信我們的子公司已經採取了正確的措施來實現供應鏈多元化並限制風險。我們相信，我們的子公司的定位與競爭對手一樣好，甚至更好，我們期望能夠成功應對不斷變化的關稅格局。我們的重點仍然是收購和管理高品質的公司以獲得長期成功。

We are committed to identifying, owning, and actively supporting strong businesses with innovative and sustainable business models. Guided by our buy, build, and grow philosophy, we seek to create lasting value for all stakeholders. While M&A activity has increased recently, the overall market remains subdued.

我們致力於識別、擁有並積極支持具有創新和永續商業模式的強大企業。在我們的購買、建立和發展理念的指導下，我們致力於為所有利害關係人創造持久的價值。儘管近期併購活動有所增加，但整體市場仍低迷。

Nevertheless, we continue to cultivate relationships with entrepreneurs, bankers, and private equity firms to identify and acquire great companies at appropriate valuations. Our goal is to be the buyer of choice for exceptional businesses that can benefit from our long-term capital, strategic guidance, and hands-on support to unlock their potential.

儘管如此，我們仍繼續與企業家、銀行家和私募股權公司建立關係，以適當的估值尋找和收購優秀的公司。我們的目標是成為優秀企業的首選買家，這些企業可以從我們的長期資本、策略指導和實際支持中受益，從而釋放其潛力。

Despite macroeconomic and geopolitical uncertainties, we believe our values-driven approach, diverse group of subsidiaries, unique business model, and disciplined capital allocation position us well for continued growth in 2025 and beyond. With that, I will now turn the call over to Pat.

儘管存在宏觀經濟和地緣政治的不確定性，但我們相信，我們的價值驅動方法、多元化的子公司群體、獨特的商業模式和嚴格的資本配置使我們在 2025 年及以後能夠繼續成長。說完這些，我現在將電話轉給帕特。

Thanks, Elias.

謝謝，伊萊亞斯。

In 2024, our subsidiaries continued to perform well and exceeded our expectations. We remain confident in our strategy and believe we are well positioned for a successful 2025. For the full year 2024, our consumer vertical saw pro forma revenues grow double digits, and pro forma adjusted EBITDA increased by greater than 27% versus the prior year.

2024年，我們的子公司繼續表現良好，超出了我們的預期。我們對我們的策略充滿信心，並相信我們已為 2025 年的成功做好了準備。2024 年全年，我們的消費者垂直業務的預測收入將達到兩位數成長，預測調整後 EBITDA 較上年增長超過 27%。

This is despite the one-time impact of an approximately $12 million dollar write down of inventory at 5.11 related to PFAS regulations. Excluding this impact, our pro forma adjusted EBITDA on the consumer segment grew over 30%, and our adjusted EBITDA margin was greater than 27%, representing a more than 400 basis point improvement over 2023.

儘管受 PFAS 法規影響，5.11 的庫存減記約為 1200 萬美元，造成了一次性影響，但情況仍然如此。排除此影響，我們消費者部門的調整後 EBITDA 成長了 30% 以上，調整後的 EBITDA 利潤率超過 27%，比 2023 年提高了 400 多個基點。

Lugano continues to post exceptional results, with annual sales growth of more than 50%. For the full year 2024, Lugano delivered adjusted EBITDA of $195 million an increase of 76.4% versus the prior year. This performance is a direct result of the company's disruptive business model, redefining the greater than $160 billion dollar luxury collectibles market.

盧加諾持續取得優異的業績，年銷售額成長率超過 50%。2024 年全年，盧加諾的調整後 EBITDA 為 1.95 億美元，較前一年成長 76.4%。這項業績直接歸功於該公司顛覆性的商業模式，重新定義了價值超過 1,600 億美元的奢侈品收藏品市場。

As we've discussed, Lugano continues to consume significant amounts of working capital as they invest in their long-term growth. Lugano plans to open one new salon in the first half of the year, and two more in the second half of 2025. We are excited about the continued growth potential at Lugano and believe the momentum will continue.

正如我們所討論的，盧加諾在投資長期成長的過程中繼續消耗大量營運資金。盧加諾計劃在今年上半年開設一家新沙龍，並在 2025 年下半年再開設兩家。我們對盧加諾持續的成長潛力感到興奮，並相信這種勢頭將會持續下去。

Outside of Lugano, BOA continues to perform exceptionally well, delivering more than 20% growth in revenue and greater than 30% growth in adjusted EBITDA for the full year. In addition, Honey Pot performed well in 2024, and we believe it is well positioned for long-term growth. From an adjusted EBITDA perspective, 5.11 had a challenging year due to PFAS regulations.

在盧加諾以外，美國銀行持續表現出色，全年營收成長超過 20%，調整後 EBITDA 成長超過 30%。此外，Honey Pot 在 2024 年表現良好，我們相信它已做好長期增長的準備。從調整後的 EBITDA 角度來看，由於 PFAS 法規的影響，5.11 經歷了充滿挑戰的一年。

These challenges are now behind us, and we believe the company is well positioned for an improved 2025, with a focus both on growth from new product introductions and continued penetration in the direct-to-consumer segment. Turning to our industrial businesses. 2024 saw flat sales and a modest decline in adjusted EBITDA as we focused on repositioning our businesses for the long term.

這些挑戰如今已成為過去，我們相信公司已為 2025 年的更好發展做好了準備，重點是新產品的推出和直接面向消費者領域的持續滲透。轉向我們的工業業務。由於我們專注於長期業務重新定位，2024 年銷售額持平，調整後 EBITDA 略有下降。

Performance in Q4 improved significantly as we saw immediate benefit from Altor's acquisition of Lifoam. We're very excited about this acquisition, as we believe it significantly bolsters Altor's operations and strategically positions it in the faster growing segments of the market as demand for temperature control packaging grows due to emerging drugs and drug development.

由於我們看到 Altor 收購 Lifoam 的直接好處，第四季的業績顯著改善。我們對此次收購感到非常興奮，因為我們相信，隨著新興藥物和藥物開發對溫控包裝的需求不斷增長，此次收購將大大增強 Altor 的運營，並使其在市場增長較快的領域中佔據戰略地位。

The integration is progressing well, and we anticipate it will drive meaningful synergies over the next several quarters. Overall, our industrial subsidiaries continue to make progress. And while there have been challenges, we believe performance in this segment will improve as we move through 2025.

整合進展順利，我們預計它將在未來幾季產生有意義的協同效應。整體來看，我們的產業子公司持續取得進展。儘管面臨挑戰，但我們相信，隨著 2025 年的到來，這一領域的表現將會改善。

Before wrapping up, I want to take a moment to address the evolving tariff landscape. While the situation remains fluid, we believe we are well positioned to navigate any potential challenges that may arise. Over the past few years, we've proactively taken steps to geographically diversify our sourcing operations, strengthening our global supply chains.

在結束之前，我想花點時間談談不斷變化的關稅情況。儘管情況依然不確定，但我們相信我們已做好準備，以應對可能出現的任何潛在挑戰。過去幾年來，我們積極採取措施，實現採購業務的地域多元化，加強我們的全球供應鏈。

As Elias noted earlier, we believe our supply chain capabilities are as good or better than those of our competitors, and as a result, we do not anticipate being at a competitive disadvantage as we adapt to the changing tariff environment. That said, we recognize the broader risk lies in the potential economic impact of escalating trade tensions on both the US and global economies.

正如 Elias 先前指出的，我們相信我們的供應鏈能力與競爭對手一樣好甚至更好，因此，我們預計在適應不斷變化的關稅環境時不會處於競爭劣勢。話雖如此，我們意識到更廣泛的風險在於貿易緊張局勢升級對美國和全球經濟的潛在經濟影響。

A few of our subsidiaries do have exposure to Mexico and Canada. However, we have been working closely with our suppliers to mitigate potential disruptions, strategically building inventory stockpiles in certain instances and identifying alternative sourcing strategies. With these measures in place, we expect to be able to manage through potential tariff-related headwinds while continuing to drive long-term value.

我們的一些子公司確實與墨西哥和加拿大有業務往來。然而，我們一直與供應商密切合作，以減輕潛在的干擾，在某些情況下策略性地建立庫存，並確定替代採購策略。透過這些措施，我們預計能夠克服與關稅相關的潛在阻力，同時繼續推動長期價值。

I will now turn the call over to Stephen, who'll provide more details on CODI's consolidated performance in Q4 and the outlook for 2025.

現在我將電話轉給史蒂芬，他將提供有關 CODI 第四季度綜合業績和 2025 年展望的更多詳細資訊。

Thank you, Pat.

謝謝你，帕特。

Before we begin, I would like to remind you that we sold our Ergo Baby subsidiary in late 2024 for an enterprise value of $104 million. The results of Ergo Bay have therefore been reclassified as discontinued operations and are not included in the results we will discuss today.

在我們開始之前，我想提醒您，我們在 2024 年底以 1.04 億美元的企業價值出售了我們的 Ergo Baby 子公司。因此，Ergo Bay 的業績被重新歸類為終止經營的業務，並且不包括在我們今天討論的業績中。

In the fourth quarter, we delivered consolidated net sales of $620.3 million representing an increase of 13.8% over the prior year. Normalizing for the impact of the Honey Pot acquisition, our pro forma sales grew 8.9% in the quarter. As mentioned, growth in the quarter was primarily driven by our consumer businesses with the Lugano, BOA, PrimaLoft, and the Honey Pot all delivering double digit growth. The acquisition of Lifoam further accelerated growth.

第四季度，我們的綜合淨銷售額為 6.203 億美元，比上年增長 13.8%。考慮到 Honey Pot 收購的影響，本季我們的備考銷售額成長了 8.9%。如上所述，本季的成長主要由我們的消費者業務推動，其中 Lugano、BOA、PrimaLoft 和 Honey Pot 均實現了兩位數的成長。收購 Lifoam 進一步加速了成長。

Reported growth in the quarter was partially offset by the previously completed divested share of Velocity's Crosman airgun business. Our consolidated net income in the fourth quarter was $11.9 million, which is down verse Q4 2023 when we recorded a large gain on the sale of our Marucci business. Adjusted EBITDA down the quarter was $118 million, representing a 29% increase over the same period in 2023.

本季度報告的成長被 Velocity 先前完成的 Crosman 氣槍業務剝離份額部分抵消。我們第四季的綜合淨收入為 1,190 萬美元，與 2023 年第四季相比有所下降，當時我們出售 Marucci 業務獲得了巨額收益。本季調整後的 EBITDA 為 1.18 億美元，比 2023 年同期成長 29%。

While a year-over-year performance benefited from the acquisitions of the Honey Pot and Lifoam, growth in our adjusted EBITDA primarily driven by strong operational performance across most of our subsidiaries, with Lugano, BOA, PrimaLoft, and Sterno, all significantly expanding adjusted EBITDA margins in the corner.

雖然同比業績得益於收購 Honey Pot 和 Lifoam，但我們調整後 EBITDA 的成長主要得益於我們大多數子公司的強勁營運業績，其中 Lugano、BOA、PrimaLoft 和 Sterno 均大幅擴大了調整後 EBITDA 利潤率。

It's important to note that adjusted EBITDA includes a one-time charge of $11.8 million relays the write down of inventory at 5.11 due to the PFAS regulations. This is a one-time cost that will not repeat. Public company costs and corporate management fees are $22.7 million in the quarter. Adjusted earnings in the quarter for $46.6 million which is up 34% for Q4 2023.

值得注意的是，調整後的 EBITDA 包括 1,180 萬美元的一次性費用，由於 PFAS 法規導致庫存減記 5.11。這是一次性成本，不會重複。本季上市公司成本和公司管理費為 2,270 萬美元。本季調整後收益為 4,660 萬美元，比 2023 年第四季成長 34%。

Turning to our cash flow, in the fourth quarter, we generated $9 million to consolidate cash flow from operations. As Pat mentioned, Lugano continues to be a user of cash as we fund long-term growth, excluding the impact of Lugano, but other businesses generated greater than $25 million in the quarter.

談到我們的現金流，在第四季度，我們產生了 900 萬美元來整合經營現金流。正如帕特所提到的，盧加諾繼續成為現金使用者，因為我們為長期成長提供資金（不包括盧加諾的影響），但其他業務在本季度創造了超過 2500 萬美元的收入。

In terms of capital expenditures, we invested $22.9 million in the quarter, an increase of $6 million over the prior year. The increase in capital investments was primarily related to a plant relocation at Arnold. Our balance sheet is strong, and we ended the fourth quarter with $60 million in cash and approximately $490 million available on our revolver.

在資本支出方面，我們本季投資了 2,290 萬美元，比前一年增加 600 萬美元。資本投資的增加主要與阿諾德工廠搬遷有關。我們的資產負債表表現強勁，第四季末我們擁有 6,000 萬美元現金，循環信貸可用餘額約為 4.9 億美元。

As discussed at the at our investor day in early January, we further raised $300 million in an incremental term loan A. We funded $200 million of this facility immediately and have an additional $100 million available to us via six-month delay draw. Our total leverage ratio declined to 3.58 times at the end of the quarter. It's important to note that the calculation of our leverage ratio includes greater than $20 million of one-time cost associated with the 5.11 PFAS write-off and the facility movement on our own.

正如我們在 1 月初的投資者日上所討論的那樣，我們進一步籌集了 3 億美元的增量定期貸款 A。我們立即為該貸款提供了 2 億美元的資金，並透過六個月的延期提取方式獲得了額外的 1 億美元。本季末，我們的總槓桿率下降至 3.58 倍。值得注意的是，我們的槓桿率計算包括與 5.11 PFAS 註銷和我們自己的設施轉移相關的超過 2000 萬美元的一次性成本。

Excluding these one-time non-recurring costs, our leverage ratio would be significantly below our 3.5 times target, actually closer to 3.4 times. We remain focused on deleveraging and believe that we are well positioned to both fund the growth of our subsidiaries, as well as act on attractive acquisitions as they become available.

除去這些一次性非經常性成本，我們的槓桿率將遠低於 3.5 倍的目標，實際上更接近 3.4 倍。我們仍然專注於去槓桿，並相信我們已做好準備，既能為子公司的成長提供資金，又能在有吸引力的收購機會出現時採取行動。

Turning to our outlook for 2025, as Elias mentioned earlier, we see positive momentum across our businesses and are establishing our full year guide as follows. We expect our consolidated subsidiary adjusted EBITDA to be between $570 million and $610 million. We expect our branded consumer vertical to deliver adjusted EBITDA between $440 million and $465 million.

談到我們對 2025 年的展望，正如 Elias 之前提到的，我們看到了整個業務的積極勢頭，並製定瞭如下全年指南。我們預計合併子公司調整後的 EBITDA 將在 5.7 億美元至 6.1 億美元之間。我們預計，我們的品牌消費者垂直市場的調整後 EBITDA 將達到 4.4 億美元至 4.65 億美元之間。

Adjusted EBITDA industrial vertical is expected to be between $130 million and $145 million for the full year. On a consolidated basis, we expect our adjusted EBITDA to be between $480 million and $520 million inclusive of corporate cost of management fees. Our full year adjusted earnings are expected to be between $170 million and $190 million.

預計全年工業垂直領域調整後的 EBITDA 將在 1.3 億美元至 1.45 億美元之間。在合併基礎上，我們預計調整後的 EBITDA 將在 4.8 億美元至 5.2 億美元之間（包括公司管理費用）。我們預計全年調整後的收益將在 1.7 億美元至 1.9 億美元之間。

Our CapEx accident in 2025 is expected to be between $80 million to $90 million, driven by growth investments at Lugano, as well as other businesses. We also make some productivity related investments at all. Obviously, our outlook does not include the impact of any potential acquisitions or divestitures, and it assumes no significant impact on tariffs and or a trade war.

預計 2025 年我們的資本支出將在 8,000 萬至 9,000 萬美元之間，這主要得益於盧加諾和其他業務的成長投資。我們也進行了一些與生產力相關的投資。顯然，我們的展望不包括任何潛在收購或資產剝離的影響，並且假設對關稅或貿易戰不會產生重大影響。

With that, I will now turn the call back forward to Elias.

說完這些，我現在將電話轉回給 Elias。

Thank you, Stephen.

謝謝你，史蒂芬。

As we have discussed, 2024 was a great year for CODI. With a strengthened portfolio of businesses, a well-capitalized balance sheet, and a clear strategic vision, we believe we are well positioned to continue to deliver for all stakeholders. Before beginning the Q&A portion of the call, I want to quickly reiterate what I think is at the core of what sets CODI apart our unwavering commitment to purpose.

正如我們所討論的，2024 年對 CODI 來說是偉大的一年。憑藉更強大的業務組合、充足的資本資產負債表和清晰的策略願景，我們相信我們有能力繼續為所有利害關係人提供服務。在開始電話會議的問答部分之前，我想快速重申我認為 CODI 與眾不同的核心所在，也就是我們對目標的堅定承諾。

Unlike some of our competitors, where financial engineering and short-termism often drive decisions. We are focused on long-term value creation and are guided by our values. This is not rhetoric. Our values and long-term orientation drive every decision we make. We are cultivating a culture of innovation across our organization and are committed to empowering our businesses to succeed. At CODI, our ethos is to challenge conventions and push boundaries, to be and do better.

與我們的一些競爭對手不同，他們的決策往往受金融工程和短期行為的影響。我們專注於長期價值創造，並以我們的價值觀為指導。這並不是誇誇其談。我們的價值觀和長期導向驅動著我們所做的每一個決定。我們正在整個組織內培養創新文化，並致力於推動我們的業務取得成功。在 CODI，我們的精神是挑戰傳統、突破界限、做得更好。

Our long-term focus enables us to acquire and actively support innovative and disruptive businesses that challenge the status quo and deliver outsized growth. We believe that our approach generates superior returns without compromising our values. We are not constrained by fun life or limited time horizons, allowing us to manage our businesses for the long term.

我們的長期關注使我們能夠收購並積極支持那些挑戰現狀並實現超額成長的創新和顛覆性企業。我們相信，我們的方法能夠在不損害我們價值觀的情況下產生豐厚的回報。我們不受娛樂生活或有限時間範圍的束縛，這使我們能夠長期管理我們的業務。

We utilize our permanent capital base and are here to drive innovation. Accelerate market leading businesses and deliver long term shareholder value in a way that is transparent, responsible, and fundamentally different from the status quo. With that operator, please open the lines for Q&A.

我們利用我們的永久資本基礎來推動創新。以透明、負責、與現狀根本不同的方式加速市場領先業務並為股東提供長期價值。請與該接線員聯繫，開通問答熱線。

(Operator Instructions)

（操作員指示）

Our first question comes from the line of Larry Solow from CJS Securities.

我們的第一個問題來自 CJS Securities 的 Larry Solow。

Great, thanks guys. Good to hear a lot of consistency from I guess what we heard at the analyst day.

太好了，謝謝大家。很高興聽到與我們在分析師日聽到的有很多一致的消息。

I guess first question just on the guidance so breaking out the team branded industrial, it looks like branded, you have growing like 15% to 20%, maybe a little bit less than 15%, but around there, can you just give us just like a, I know you don't guide that by holding, but, I know Lugano, if we take, from what you said at the analyst they sounds like that's still going to grow very rapidly. So, is that driving the majority of that growth in branded, as you look at 2025 or how should we kind of look at that?

我想第一個問題只是關於指導，所以打破團隊品牌工業，看起來品牌，你的增長率在 15％ 到 20％ 之間，可能略低於 15％，但在那個水平左右，你能給我們一個，我知道你不會通過持有來指導，但是，我知道盧加諾，如果我們接受，從你在那裡所說的分析師來看，聽起來這仍然會增長得非常快。那麼，展望 2025 年，這是否會推動品牌成長的大部分？或者我們應該如何看待這一點？

Yeah Larry, it's Elias and welcome good afternoon. I would say the, with Lugano, as we said, we are funding Lugano and expect Lugano to grow consistent with sort of the growth rates we've experienced over the last couple of years. But we don't forecast that. We have a much more modest expectation for growth that we forecast.

是的，拉里，我是伊萊亞斯，歡迎大家下午好。我想說的是，正如我們所說，我們正在為盧加諾提供資金，並預計盧加諾的成長速度將與我們過去幾年經歷的成長率保持一致。但我們並不預測這一點。我們對成長的預期比我們預測的要溫和得多。

And then as Lugano hopefully exceeds and kind of meets growth rates that are consistent with the past couple of years, we're able to beat and raise guidance. So I would say some of the growth is coming from Lugano, but a good portion of growth is coming from other companies as well.

然後，隨著盧加諾有望超過並達到與過去幾年一致的成長率，我們能夠超越並提高指導。所以我想說部分成長來自盧加諾，但很大一部分成長也來自其他公司。

That's fair. So, it sounds like if you hit, not to put words in your mouth, but Lugano kind of does what, continues to grow, and it's probably hard to forecast that thing is going to grow 30%-40% every year. But if it does do that, or even 25%, on EBITDA basis, you're going to probably be at the high end of your range, if not higher, at least on the branded side, even assuming the other.

這很公平。所以，聽起來如果你成功了，雖然不是在說你，但盧加諾確實在做什麼，在繼續成長，很難預測每年會成長 30%-40%。但如果它確實做到了這一點，或者甚至在 EBITDA 基礎上達到 25%，那麼你可能會處於範圍的高端，如果不是更高的話，至少在品牌方面，即使假設其他方面也是如此。

I think that's a fair assumption.

我認為這是一個合理的假設。

Okay, and then on, specifically I guess just on 5.11 I want to ask a couple of things. I guess the PFAS that the charge that $11 million dollar charge, you're actually you're showing that in the $11 million EBITDA this quarter would actually have been $22 million if we add back that.

好的，然後，具體來說，我想就 5.11 問幾個問題。我猜 PFAS 收取了 1100 萬美元的費用，實際上你表明，如果我們把這筆費用加回去，本季度的 1100 萬美元 EBITDA 實際上應該是 2200 萬美元。

That charge, right.

那項指控，對的。

That's correct.

沒錯。

Is that correct?

對嗎？

That's correct, Larry.

沒錯，拉里。

Got you and

得到你和

It's closer to $12 million, but go ahead

接近 1200 萬美元，但繼續吧

Right. So, and, with that a back 5.11, even in a challenging year actually was pretty fine. I think it actually even grew a little bit driven more by the professional side but without giving us, numbers and what you think we're going to be in 2025, but.

正確的。因此，即使在充滿挑戰的一年裡，5.11 的成績也相當不錯。我認為它實際上甚至在專業方面的推動下有所增長，但沒有給我們提供數字以及你認為我們在 2025 年會是什麼樣子，但是。

Just give us a little bit, better, look, how things have been improving on the Troy's new leadership on the consumer side, what kind of initiatives you've been doing beyond sort of the PFAS, challenges, but you know what we should look for, in 2025 from 5.11.

請給我們稍微介紹一下，特洛伊新領導層在消費者方面取得了哪些進步，除了 PFAS 挑戰之外，您還採取了哪些舉措，但您知道從 5.11 開始我們應該在 2025 年尋找什麼。

Sure. So Larry, this is Pat, but I think you would, I would kind of focus on three things, we're sort of reinvigorating, the DTC, marketing, is one and through, sort of, more effective execution, we will have a brand refresh at some point this year that we're really excited about, and we think we'll drive, further sales.

當然。拉里，我是帕特，但我認為你會，我會關註三件事，我們正在重振 DTC 行銷，這是其中之一，透過更有效的執行，我們將在今年某個時候進行品牌更新，我們對此感到非常興奮，我們認為我們將推動進一步的銷售。

And then we also have some what I believe is some really exciting new product that will come out sort of in Q3 and we'll, further refresh our DTC strategy. So, there's kind of three prongs or three things that I would look for this year at 5.11, and I'm excited about each.

然後，我們還有一些我認為非常令人興奮的新產品將在第三季推出，我們將進一步更新我們的 DTC 策略。因此，今年 5.11 我會專注在三個方面或三件事，我對每件事都感到興奮。

Thanks, Pat I appreciate the call.

謝謝，帕特，我很感謝你的來電。

Thank you. One moment for our next question.

謝謝。請稍等片刻，回答我們的下一個問題。

Our next question comes from the line of Lance Vitanza from TD Cowen.

我們的下一個問題來自 TD Cowen 的 Lance Vitanza。

Thanks guys. Great, quarter. I have a couple questions if I could. The first is, going back to the tariffs, and I appreciate the prepared remarks, but could you talk a little bit more about what you've done to date versus what, if anything, still kind of remains a work in progress or perhaps you know work that remains ongoing. And then I know this is tough to sort of talk about, but how do you feel about how your portfolio companies, in the main are kind of exposed to tariffs versus, the competitors of those platforms.

謝謝大家。太好了，四分之一。如果可以的話我有幾個問題。首先，回到關稅問題，我很感謝您準備好的發言，但您能否再多談一下您迄今為止所做的工作，以及哪些工作仍在進行中，或者您知道哪些工作仍在進行中。然後我知道這有點難以談論，但是您如何看待您的投資組合公司與這些平台的競爭對手相比主要受到關稅的影響。

Sure, so this that I, I'll take a shot at it and then, Elias can, jump in. I would say it's really been sort of a several year process as far as preparing our companies, there was a Trump won and we were sort of, made aware that these were these were possibilities at the same time, there were also tensions, with China, etc. So, all of those things kind of, I would say it's several of our most, single geography dependent, subsidiaries.

當然，這樣我就會嘗試一下，然後 Elias 就可以加入。我想說，就準備我們的公司而言，這確實是一個幾年的過程，川普獲勝了，我們意識到，同時，這些都是可能性，還有與中國等的緊張關係。所以，所有這些事情，我想說，這是我們最依賴單一地理位置的幾家子公司。

We sort of mitigated and diversified our geographic supply chain or supply chain geographically I should say kind of over the last three years or four years, right? It's not to say it's perfect, it's not to say we, we're not exposed at all of course we are, so that's number one it's been a long-term process at many of our subsidiary businesses if that makes sense.

在過去的三、四年裡，我們在某種程度上緩解並多樣化了我們的地理供應鏈，或者地理上的供應鏈，對吧？這並不是說它是完美的，也不是說我們根本沒有暴露，當然我們有，所以這是第一，對於我們的許多子公司來說，這是一個長期的過程，如果這說得通的話。

As far as how we think we'll handle, we went company by company, we spent a long-time sort of strategically, working with our CEOs, understanding tariff impacts, at each business, and there are some benefits. There's some competitors of ours that. May import when we produce domestically in several instances, right? And so you know I wouldn't say there's as many benefits as cost, but the, there are some benefits, and those costs that we have will be shared by everybody in the industry, so we feel like we're pretty well positioned.

至於我們認為該如何處理，我們逐家逐戶地進行調查，花了很長時間進行策略規劃，與我們的執行長合作，了解關稅對每個企業的影響，並獲得了一些好處。我們有一些競爭對手。有幾種情況我們在國內生產的時候可以進口，對嗎？所以你知道，我不會說好處和成本一樣多，但是，還是有一些好處的，而且我們的這些成本將由業內每個人分擔，所以我們覺得我們處於相當有利的地位。

Thanks, that's helpful. And then maybe could you talk about maybe I'll I ask, could you talk a little bit about the environment for buying and selling companies in 2025 and do you expect to be more or less active over the coming 12 months versus the prior 12 months and here I'm thinking, about macro factors on the one hand, sure, but also the specific dynamics of kind of where your platform companies are these days.

謝謝，這很有幫助。然後也許您可以談談，也許我會問，您能否談談 2025 年公司買賣的環境，您預計未來 12 個月與前 12 個月相比會更加活躍還是更少，在這裡我想到，一方面是宏觀因素，當然，但也包括您的平台公司目前所處的具體動態。

Sure, so I would say on a macro basis lance, the market is a little better than where it was over the last, couple of years. 2021 was really a banner year and then starting in 2022, 2023 and unfortunately now three years into 2024 have been relatively muted years. 2024 picked up a little bit, did not have the quality that we were looking for in terms of meeting some of the innovative and disruptive nature of businesses that we want to buy.

當然，從宏觀角度來看，我認為目前的市場比過去幾年好一些。 2021 年確實是輝煌的一年，但從 2022 年、2023 年以及不幸的是現在已經進入 2024 年的三年來看，都是相對平淡的一年。 2024 年的情況略有好轉，但在滿足我們想要收購的企業的一些創新性和顛覆性方面，其品質並沒有達到我們所尋求的水平。

Now that being said, At the beginning of the year we closed on Honey Pot and we were also successful in closing on Lifoam as an acquisition into Altor so we felt, pretty good. We were able to deploy, call it around a half a billion dollars of capital. Which I think is, kind of a reasonable expectation for us, some years we can, hopefully be better than that if the market comes back, I think we can be significantly better than that.

話雖如此，今年年初我們完成了對 Honey Pot 的收購，並且還成功完成了對 Lifoam 的收購，將其納入 Altor，所以我們感覺非常好。我們能夠部署大約五億美元的資金。我認為這對我們來說是一種合理的預期，如果市場回暖，有些年份我們的表現會更好，我認為我們可以做得更好。

But I would say the market is recovering slightly. Now, the question you just asked, which has, kind of what is the impact of terrorists. And there's other federal policies that right now I think are having, the effect of creating some uncertainty just generally in the economy and that can quell M&A activity, but the initial read coming into 2025 is that activity should put pick up a little bit in terms of specific to our companies we feel really good about the portfolio that we have right now.

但我想說市場正在略微復甦。現在，您剛才問的問題是，恐怖分子的影響是什麼。我認為目前還有其他聯邦政策正在產生影響，這些政策通常會在經濟中產生一些不確定性，並可能抑制併購活動，但對 2025 年的初步預測是，併購活動應該會略有回升，具體到我們公司而言，我們對目前的投資組合感到非常滿意。

We have reoriented the portfolio and become much more aligned with our strategic vision of innovation and disruption and being able to significantly outgrow the underlying markets in which our companies participate in. So we feel great about that. We feel great about how our leverages come down. At 3.58, which is the actual number, a little bit of that I think is misleading because we have some onetime costs that are obvious in there.

我們重新調整了投資組合，使其與我們的創新和顛覆策略願景更加一致，並能夠顯著超越我們公司所參與的基礎市場。因此我們對此感到非常高興。我們很高興看到我們的槓桿率下降了。3.58 是實際數字，但我認為其中有一點誤導，因為其中有一些明顯的一次性成本。

So, you know I'm going to quote the number of 34 because that's kind of how we think about it and our lenders, are kind of think about it similarly with us. We feel really good about our. Progress on leverage. I mean, a year ago we were at four times. Now we're back within our leverage parameters. So, our company portfolio, the portfolio is positioned well.

所以，你知道我要引用 34 這個數字，因為這就是我們對此的看法，而我們的貸款人對此的看法也與我們類似。我們對我們的感覺非常好。槓桿比率取得進展。我的意思是，一年前我們的人數是四倍。現在我們又回到了槓桿參數範圍內。因此，我們的公司投資組合定位良好。

Our companies within the portfolio, even given that positioning, feel like they have positioned themselves well vis a vis their competitors. And barring some type of, economic, kind of slowdown that's unanticipated right now, we feel pretty good about their ability to grow, and our balance sheet is strong.

我們投資組合內的公司，即使考慮到這樣的定位，也覺得自己相對於競爭對手已經處於有利地位。除非出現目前無法預料的經濟放緩，否則我們對他們的成長能力非常有信心，而且我們的資產負債表也很強勁。

So, all of those things coalesce to create a really good environment for us to be on the acquisition hunt and with, deals becoming a little bit, more than they were over the last couple of years, we would anticipate picking up the pace from where we were over the last year or two.

因此，所有這些因素結合在一起，為我們尋找收購對象創造了一個非常好的環境，而且隨著交易數量比過去幾年略有增加，我們預計收購速度會比過去一兩年加快。

Great thanks so much for your help.

非常感謝您的幫忙。

Thank you. (Operator Instructions)

謝謝。（操作員指示）

Our next question comes from the line of Matt Koranda from Roth Capital Partners.

我們的下一個問題來自 Roth Capital Partners 的 Matt Koranda。

Good afternoon, guys. It's Joseph on from Matt. I just wanted to talk about Lugano for a second. We see that flow through on EBITDA is greater than the 60% zone and 4Q. It's quite a bit higher than like the 30% and 40% you guys spoken on in the past calls. Is there any excuse me, is there any call outs to why this is so strong and that any update on longer term flow through goals for your incremental revenues?

大家下午好。我是馬特的約瑟。我只是想談談盧加諾。我們看到 EBITDA 的流轉大於 60% 區域和 4Q。這比你們在過去的電話會議中提到的 30% 和 40% 要高得多。有什麼不好意思嗎？有什麼理由說為什麼這個數字這麼大？有沒有關於增量收入的長期流通目標的更新？

So we don't guide again company by company, the strength this year was just driven by a strong market and the continued. I would say the continued acceptance of what we believe is a really unique disruptive business model by its consumers, and you see that as far as average purchase size you see that as far as repeat purchases you see it, on almost every metric.

因此，我們不會再對每家公司進行指導，今年的強勁表現只是受到強勁市場的推動，而這種勢頭將持續下去。我想說的是，我們認為消費者繼續接受一種真正獨特的顛覆性商業模式，而且你可以看到，就平均購買規模而言，就重複購買而言，幾乎在每一個指標上都看到了這一點。

And so while we don't guide again, and I'll say that again, specifically by company, we did mention that we do have, at least one large salon opening that's been publicized in Chicago, likely in Q2 of this year, and we have a couple other in the works as well for later on in the year, so we're confident that, we'll once again have a good growth year at Lugano.

因此，雖然我們不再提供指導，但我要再說一遍，特別是按公司劃分，我們確實提到過，我們至少有一家大型沙龍開業，已經在芝加哥進行了宣傳，很可能是在今年第二季度，而且我們還有其他幾家沙龍正在籌備中，計劃在今年晚些時候開業，所以我們有信心，我們將在盧加諾再次迎來良好的增長。

Got it. And then just on 5.11 if you could now that Troy's had a year under the helm, what's the store strategy for a store growth strategy now if you could provide any details on that.

知道了。然後就在 5.11，如果您現在可以知道 Troy 已經執掌一年了，現在商店成長策略的商店策略是什麼，如果您可以提供任何細節的話。

We're going to likely at the end towards the end of this year we'll likely launch a couple few sort of stores with sort of a different profile and we're not getting into specifics about that profile right now but we're going to potentially change things up a little bit, and sort of test and learn so I would say test and learn is our retail strategy in 2025.

我們可能會在今年年底前推出幾家具有不同特色的商店，我們現在不會透露有關這些特色的具體細節，但我們可能會稍微改變一下，進行測試和學習，所以我想說測試和學習是我們 2025 年的零售戰略。

Okay, I appreciate you guys answering the questions.

好的，感謝你們回答這些問題。

Thank you.

謝謝。

Thank you. One moment for our next question.

謝謝。請稍等片刻，回答我們的下一個問題。

Our next question comes from the line of Randy Binner from B. Riley Securities.

我們的下一個問題來自 B. Riley Securities 的 Randy Binner。

Hey, thanks. I had a couple, and you know they kind of been addressed and different ways, so I might ask it just a little more directly, and that is that with Lugano, even a margin was at least quite a bit better than we thought it would be in the fourth quarter and so setting aside kind of the revenue comments there, was there anything unusually good. From even a margin perspective at Lugano this quarter that that wouldn't necessarily be, something that run rate in the model.

嘿，謝謝。我有幾個問題，你知道他們已經用不同的方式解決了這個問題，所以我可能會更直接地問一下，那就是盧加諾的利潤率至少比我們想像的第四季度要好得多，所以拋開那裡的收入評論，有什麼異常好的事情嗎？即使從盧加諾本季的利潤率角度來看，這也不一定是模型中的運行率。

No, I would just say the, you do get the benefit of operating leverage clearly and when revenue growth, accelerates you would expect to have some, kind of margin accretion as a result of that. And the other, component of the component is we do usually have a little bit of wholesale revenue in there that was much smaller in the fourth quarter than what we've had before, so that creates some margin accretion and lastly, the team is just executing at an exceptional level.

不，我只想說，你確實明顯獲得了經營槓桿的好處，而且當收入成長加速時，你預期利潤率也會隨之增加。另一個因素是，我們通常確實有一點批發收入，但第四季度的批發收入比以前少得多，因此這會帶來一些利潤增長，最後，團隊的執行力非常出色。

And that is on, kind of buying. It's on gross margin that they're able to generate, which is directly, attributable to buying. I would say our buying efforts and sourcing, became quite a bit stronger over the course of 2025 and that flowed through the margin. So, there's nothing that I would, look at and say was unusual. That being said, we are opening three new salons in 2025.

這就是購買。他們能夠產生的毛利率直接歸因於購買。我想說的是，我們的購買力和採購能力在 2025 年期間變得更加強大，並且透過利潤率得以提升。所以，我看了一下，覺得沒有什麼是不尋常的。話雖如此，我們將在 2025 年開設三家新沙龍。

And we are going to have, significant cost increases that come along with that and before those salons come fully up to scale, there's going to be some margin, kind of dilution that comes from that. So, I would keep that in mind. It will be dollar gross profit and EBITDA read it, but margins can come down a little bit, especially when we accelerate from a historical rate of, one to two salon openings to three this year, that will have an even, slightly more dilutive effect on gross margin percentage.

隨之而來的是成本的大幅增加，在這些沙龍完全達到規模之前，利潤率會受到一定程度的稀釋。所以，我會記住這一點。這將是美元毛利和 EBITDA，但利潤率可能會下降一點，特別是當我們從歷史速度（一到兩家沙龍開業）加速到今年三家時，這將對毛利率百分比產生均勻、略微稀釋的影響。

But I would say, the business just continues to ex execute at such an extraordinary level. These are some of the things that happen, you find, gross margin and profit upside when companies are executing this well.

但我想說的是，我們的業務仍在繼續以如此非凡的水平運作。你會發現，當公司執行得很好時，毛利率和利潤就會上升。

Alright, that's fantastic. And then if you cover this at investor day, I apologize, I don't recall the three new salons are being opened in what cities?

好吧，太棒了。如果您在投資者日報道此事，我很抱歉，我不記得這三家新沙龍是在哪些城市開業的？

We at Chicago we've announced we're going to let the company announce the other two.

我們在芝加哥宣布，我們將讓公司宣布另外兩項。

Okay, so it's. It, yeah, I was kind of thinking through like your comment on the health of the high-end consumer is that.

好的，是這樣。是的，我正在思考你對高端消費者健康狀況的評論。

Is it the regionality of that and maybe that's not really a word, but has that we know Texas has done well, there's areas of the country that any is any of that changing with, kind of the more economic noise so far this year or is it just too early to tell?

這是區域性的問題嗎？也許這不是一個真正的詞，但我們知道德克薩斯州表現良好，這個國家的一些地區是否也發生了變化，今年到目前為止，經濟噪音是否更大？還是現在下結論還太早？

Yeah, I mean, with respect to Lugano, this customer.

是的，我的意思是，對於盧加諾這位顧客來說。

Lugano, yeah.

盧加諾，是的。

Yeah, so in that context you have to understand this customer is a highly affluent customer. Remember our average ticket price approaches a $500,000 dollars. So, when you're at that kind of level, you're dealing with a different customer set than the broad macro the economy touches. In general, we're not really seeing anything through our other companies in terms of the affluent customer region by region, but with respect to Lugano.

是的，所以在這種情況下你必須明白這個客戶是個非常富裕的客戶。請記住，我們的平均票價接近 50 萬美元。因此，當你處於這種水平時，你所面對的客戶群與經濟所涉及的宏觀客戶群不同。整體而言，我們並沒有透過其他公司看到各地區富裕客戶的情況，但就盧加諾而言。

This is a very economically, I would say [a] sensitive customer base. If the economy does well, they buy. If the economy doesn't do well, they buy. I mean this is, just someone who buys based on more kind of want, and I think that it is very well insulated. So we're seeing nothing from region to region, international versus US, but I would anticipate that with the customer base that we approach there.

我想說，從經濟角度來看，這是一個非常敏感的客戶群。如果經濟狀況良好，他們就會購買。如果經濟形勢不好，他們就會購買。我的意思是，這只是有人根據更多需求購買的東西，我認為它的隔熱效果非常好。因此，我們沒有看到不同地區、國際與美國之間的任何差異，但我預計我們在那裡接觸的客戶群會有所不同。

Okay, got it. Those comments are helpful.

好的，明白了。這些評論很有幫助。

Thank you.

謝謝。

Thank you. At this time, I would not like to turn the conference back over to Elias Sabo for closing remarks.

謝謝。現在，我不想將會議交還給 Elias Sabo 做閉幕發言。

Thank you, operator. As always, I'd like to thank everyone again for joining us on today's call and for your continued interest in CODI.

謝謝您，接線生。像往常一樣，我再次感謝大家參加今天的電話會議並感謝大家對 CODI 的持續關注。

Thank you for your support.

感謝您的支持。

This concludes Compass Diversified conference call.

Compass Diversified 電話會議到此結束。

Thank you and have a great day.

謝謝您，祝您有愉快的一天。