Good afternoon and welcome to Compass Diversified's First Quarter 2021 Conference Call. Today's call is being recorded. [Operator Instructions] At this time, I would like to turn the conference over to Matt Berkowitz of The IGB Group for instructions and the reading of the Safe Harbor statement. Please go ahead, sir.

Thank you and welcome to Compass Diversified's first quarter 2021 conference call. Representing the company today are Elias Sabo, CODI's CEO; Ryan Faulkingham, CODI's CFO; and Pat Maciariello, COO of Compass Group Management. Before we begin, I would like to point out that the Q1, 2021 press release including the financial tables and non-GAAP financial measure reconciliations are available at the Investor Relations section on the company's website at www.compassdiversified.com. The Company also filed its Form 10-Q with the SEC today after the market close, which includes reconciliations of non-GAAP financial measures discussed on this call and is also available at the Investor Relations section of our website. Please note that references to EBITDA and the following discussions referred to adjusted EBITDA is reconciled to net income in the company's financial filings. The company does not provide a reconciliation of its full year expected 2021 adjusted EBITDA or 2021 payout ratio, because certain significant reconciling information is not available without unreasonable efforts. Throughout this call, we will refer to Compass Diversified as CODI or the Company. Now allow me to read the following Safe Harbor statement. During this conference call, we may make certain forward-looking statements, including statements with regard to the future performance of CODI and its subsidiaries. And statements related to CODI's future tax deduction. Words such as believes, expects, plans, projects and 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 forward-looking statements. And some of these factors are enumerated in the Risk Factor discussion in the Form 10-Q as filed with the SEC for the quarter ended March 31, 2021, as well as in other SEC filings. In particular, the domestic and global economic environment, as currently impacted by the COVID-19 pandemic has a significant impact on our subsidiary company. Except as required by law, CODI undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise. At this time, I would like to turn the call over to Elias Sabo.

Good afternoon. Thank you all for your time, and welcome to our first quarter earnings conference call. Before disusing our results, I would like to take a brief moment to acknowledge our employees. Our performance over the last year since the onset of COVID-19 is a testament to their extraordinary efforts. Despite the ongoing challenges brought on by the pandemic, I am pleased to report that our first quarter results dramatically exceeded our expectations, including BOA and Marucci as if we own them from January 1, 2020, pro forma consolidated revenue grew over 20% and adjusted EBITDA grew more than 45% over prior year's quarter. Our first quarter results were exceptional and reflect the incredible work of each of our subsidiary companies management teams. Though, we continue to experience certain challenges and uncertainties, stemming from the pandemic; such as changes in demand patterns, supply disruptions, shortages in labor and inflationary pressures at levels not previously experienced, our subsidiaries team continue to expertly maintain our operational to deliver record results. Our outstanding first quarter results, build on the positive momentum from the second half of 2020. Our branded consumer businesses grew at a rapid pace, driven by continued increased participation by consumers and outdoor activities. We have seen significant structural shifts, since the onset of the pandemic that have benefited outdoor activities, including trends towards decarbonization and remote work. At the same time, disposable spending has been supported by historic levels of transfer payments globally and a shift in spending patterns towards goods and away from services. While these trends have proven to be durable, it remained unclear for how long and the extent to which these consumer habits will continue as the economy gradually reopen and lockdowns ease. At this time, end-market demand continues to rise along with our bookings…

Thanks Elias. Before I begin on our subsidiary results, I want to touch generally on the quarter, our branded consumer businesses were well positioned to benefit from changes in consumer demand as lockdown restrictions began to ease in North America. And as a result, experienced impressive growth across the board. Our niche industrial businesses are exceeding our expectations, as a group and are showing agility and resiliency even as we experienced labor shortages and commodity increases at several of our businesses. Now onto our subsidiary results. I'll begin with our niche industrial businesses. For the first quarter of 2021, revenue increased by 4% and EBITDA increased by 2.1% versus the first quarter of 2020. For the first quarter of 2021, revenue at Advanced Circuits was approximately flat and EBITDA declined slightly as compared to the first quarter of 2020. As discussed last quarter, longer lead time defense related bookings declined in the fourth quarter of 2020, following the election. And we saw this trend impact revenues in January and early February. Bookings began to stabilize across segments, early in the current quarter and the company returned to revenue growth in March of this year. Arnold Magnetics revenue increased by 9.9%, and EBITDA increased approximately 50% to $5.1 million as the company benefited increased sales to aerospace and defense related customers associated with large orders received in 2020. And from higher gross profit margins associated with positive mix and increase efficiencies. What we believe Q1 will be a seasonally strong quarter for the company in 2021. We do expect the business to steadily improve through the year, the first 2020. Arnold Acquisition of Ramco was completed on March 1 of this year. And its financials are only included sense that date. By acquiring Ramco, Arnold expanded and already diverse product offering…

Thank you, Pat. Moving to our consolidated financial results for the quarter ended March 31, 2021, I will limit my comments largely to the overall results for our company since the individual subsidiary results are detailed in our Form 10-Q that was filed with the SEC earlier today. On a consolidated basis, revenue for the quarter ended March 31, 2021 was $461.6 million, up 38.4% compared to $333.4 million for the prior year period. This year-over-year increase primarily reflects our acquisitions of Marucci and BOA during 2020. Excluding these recent acquisitions, our revenue increased by more than 14%, driven by strong sales growth at our branded consumer subsidiaries, Velocity Outdoor, 5.11 and Liberty, which offset the decline in sales at Sterno. Consolidated net income for the quarter ended March 31, 2021 was $22 million compared to $4.9 million in the prior year. The increase in net income was primarily attributable to the acquisitions of Marucci and BOA during 2020. CAD for the quarter ended March 31, 2021 was $46.2 million, up over 160% from $17.7 million in the prior year period. Our CAD that we generated during the quarter was significantly above our expectations, almost doubled our distribution and was a highest quarterly CAD we've ever generated. The increase was above our expectations primarily due to the outstanding performance of our most recent acquisitions Marucci and BOA, as well as continued strong performance at our Liberty and Velocity businesses. Other factors impacting our CAD in Q1 compared to the prior year include slightly higher CapEx spend an increase in cash taxes and higher preferred share distributions as a result of our Series C issuance in November 2019. Turning to our balance sheet. As a reminder, we refinanced our debt during the first quarter by placing $1 billion of eight year…

Thank you, Ryan. I would like to close by briefly discussing M&A activity and our go-forward growth strategy. As I mentioned earlier, we took pursuing steps in 2019 to prepare for the unexpected in 2020. Those decisions in our unique permanent capital structure position us to not only weather the storm, but to also proactively execute on our growth strategy in a volatile year. We believe that as we enter the middle of 2021. We continue to have the balance sheet strength to support our company's operations regardless of macro condition. Our confidence in our subsidiaries in the respective management teams remains strong following their incredible performance as they pivoted their businesses to maintain and even grow their market positions during the pandemic. As we look to the future. We are optimistic that our subsidiaries are well positioned to continue to gain additional market share and look forward to continuing to support their growth in the months and years to come. As for CODI, our permanent capital structure puts us in a strong position to continue to seek both platform and add-on acquisitions. We believe there are compelling opportunities for us to generate long-term shareholder value given continued market dislocations in 2021. In addition, we will continue to invest in and enhance our subsidiary companies competitive positioning, which include supporting them as they build and grow their digital transformation strategy. Our differentiated strategy has set us apart for more than a decade. And it remains consistent. In 2021, we remain intensely focused on executing our proven and disciplined acquisition strategy, improving the operating performance of our companies, opportunistically divesting enhancing our commitment to ESG initiatives across our portfolio and creating long-term shareholder value. With that, operator, please open up the lines for Q&A.

[Operator Instructions] Our first question is from Larry Solow with CJS Securities.

Hi, good afternoon. It's actually Lee Jagoda for Larry.

Good afternoon.

Hi Lee.

So just starting, obviously, you're seeing a lot of the benefits of the pandemic in a number of the outdoor brands, which are probably somewhat offset by some of the assets that are geared towards a recovery. If I look at the portfolio, if you look at the portfolio in total, in terms of overall benefit versus potential headwinds from the pandemic? Can you kind of speak to where you think the total portfolio is and maybe speak to the runway for future growth once the pandemic kind of eases a little bit here?

Sure, so it's really a case-by-case basis right, as it's a roll-up of each of the 10 subsidiaries when you get to those. But if I look at it holistically across our consumer businesses, some of them have benefited incredibly strong namely Velocity and Liberty through the increased participation rates and outdoor activities. I would say as we look forward, there is nothing right now for those two businesses that lead us to believe that demand is receding. All the forward indicators like book-to-bill ratios and kind of weekly bookings are pointing up. So that gives good confidence there. Outside of those businesses, I would say the other four consumer businesses don't feel like they have really kind of participated meaningfully in any upside recovery from the pandemic. ERGO probably got hurt from it, to be honest, 5.11 I would say likely got hurt, because the professional side of the business was incredibly weak. And the consumer side of the business has - I would say just longer-term secular growth tailwinds that we don't think we're impacted materially. And BOA and Marucci in the first quarter, I think probably benefited from some seasonal changes in demand patterns, but I'm not sure that if you looked at it on a LTM basis, we would say that these companies are kind of benefiting any kind of large level. So all that being said, if you put it all together, we still have a outlook that our consumer businesses will continue to grow over the balance of 2021. The second quarter likely to be kind of another strong growth quarter as we comp against, what was a really weak period as kind of lockdown hit full force in 2020. On the other side, our industrial business is really took it on the chin…

Great, that's very helpful. And then last one from me. Just I know you gave the different components of the liquidity in your prepared remarks, I just missed them, if you could give those again that would be great. And then speak to just the current pipeline of opportunities and areas in the market that look interesting to you all today, either in terms of valuation or growth potential. As you look at these various businesses.

Sure Lee, this is Ryan. I'll talk to liquidity and let Elias talk to the latter question there. But we, as of March 31, we had $594 million of availability on a revolver. So, virtually the entire revolver - balances open and available, plus we had about $60 million of cash on the balance sheet so, just a really strong liquidity position at this point.

And Lee in terms of M&A, I'll ask Pat to comment on that, as he is much closer to the M&A markets.

Yes, I think we're seeing right now lots of on the platform side, we think of it really [ph] is going to platforms and add-on. See on the platform side, we are seeing lots of deals, we’re probably seeing as many transactions as we have really in a long time and part of that is just some internal efforts, I mean some hirings, we've made but part of it is just the deal market. The trouble is shifting through quality. And you touched on a lot of you - touched on pandemic-related tailwinds before, you have to make sure that the companies that you're looking at don't have tailwinds that are too strong on the pandemic. And that you can get comfortable with what you're underwriting, if that makes sense. On the add-on side, it's also more plentiful. And we're seeing some good potentially actionable activities on the add-on side in the near or medium term.

And Lee, the last part of your question on valuations, we're seeing valuations hit all-time highs. I would say they've reverted back to pre-pandemic levels plus some. And there is a plethora of capital that's out there. If you think about the effects of the pandemic last year, M&A was virtually non-existent. We were really proud to put $700 million roughly to work, but those were through effort that were direct - that was because of our catalyst, to get those transactions completed. And we have the balance sheet to do it. By and large, the rest of the private equity market kind of sat on their hands. And if you think about one of the disadvantages, that we believe exist in traditional private equity, especially when compared to our model, there is timelines on which you have to put this money to work. And if you have a five-year window under which you need to invest money and you took one year off, that just increase the pace that you have to invest and from 20% per year to 25% per year over the balance of the four years. That puts an incredible amount of upward demand on the asset and the availability of debt financing at historically attractive rates has come back to the market. So, the window was incredibly short during this pandemic-fueled recession that we experienced in 2021 for valuations to rein in. And now valuations have kind of reverted back to pre-pandemic levels.

Great very helpful, I'll hop back in queue. Thank you very much.

Your next question is from Matt Koranda with ROTH Capital.

Hi Matt.

Hey guys good afternoon. One kind of fundamental question and one higher level strategic. So on the fundamental question maybe just wanted to see if you could highlight, you did mentioned sort of modest margin pressure across most segments that you're factoring into the guidance for EBITDA after the rest of the year. I was curious if you could just highlight specific segments, where you're factoring in the most commodity pressure for the rest of the year. And maybe also if you could threat in which segments have sort of the most pricing power to offset that versus which are sort of just more price takers that may not be able to offset as much.

Yes so, Matt, I would just say look across the board. There is a lot of inflationary pressures and some of it's from commodity and so take a business like Liberty Safe for example, Liberty has a large portion of the raw material cost in the form of steel. And steel cost have risen dramatically, now Liberty is really good at locking in steel and so those costs didn't manifest in the first quarter, but they are clearly coming. Now the good news with Liberty is demand is robust and we can even take orders in the second quarter. We're now taking them into the third quarter. So our goal there is to pass through dollar for dollar, the steel price increases that we're getting. Now on obvious margin point here, if you have $1 of cost that you pass through dollar of price, even though you can maintain the same dollar margin per unit, your margin comes down. And so I would just caution everybody that in a rising price environment, where you are pushing through prices equal to your kind of underlying cost increase, that margins will come down, but the dollar profit margin is not. I think beyond that, I think most of the companies where there is large pricing pressure. Is where we have the greatest ability to push through pricing, Velocity is seeing some price pressure, but they also have very strong demand and the ability to push it through. We believe and so I would say, largely we feel where the costs are increasing the most is where demand is passed, and we should have the most in elasticity to push through these prices. Altor is the last one company that I would highlight because we have seen a dramatic rise in costs, now…

Okay, super detailed and helpful. It's very great. And then the other higher level strategic question I had was basically just, does the potential flip to a C-Corp change any of your decision making process when it comes to the portfolio, whether that the acquisitions or divestitures in the near term?

Yes, I mean this is one of the things that Ryan highlighted and I highlighted here, this is really a tax neutral, there were some benefits that historically it pass through entities receive holistically from a tax standpoint that have waned in recent years. To the point now where there is no advantage to executing our model as a pass-through versus the C-Corp. So they're being there is no disadvantage of being a C-Corp, we don't view tax policy, the tax change or reclassification as being something that would dictate a change in strategy.

Okay. Awesome. And then just one more if I could slip one in here. Just on the dollar per share hypothetical distribution that you highlighted relative to the $1.44 that historically we've had. Is all of the gap there the 40% basically just alluding to what we have to retain for tax liabilities that come about as a result of the C-Corp? Just help me understand sort of how we arrived at the dollar?

Yes. Sure, Matt. That's right. If you think about the $1.44 per share that we've historically paid a portion of that is paid to the IRS. And we went back five, eight, 10 years ran all the numbers, did the averages and as you know sometimes in a given year, the after-tax return for CODI could be very low, if we have substantial capital gains or other significant income. Some years where we don't have substantial income, the after-tax return can be higher, right. So, if we think about the $1.44 and we went back and ran these numbers. The after-tax $1 per share on average you received was very roughly around $0.70. And when we set this $1 per share distribution going forward. We said well-qualified dividend rate that's roughly 30% if you consider federal and state getting you to about the same after-tax, roughly $0.70 per share. But that's how we thought it through, because the goal here, Matt is on an after-tax basis, the return should be the same. And we've created that using averages over the past number of years.

And Matt just one follow-up point that I'll make. As Ryan mentioned, we think the after-tax proceeds, the average $0.70 over history and in the future will average $0.70 under qualified dividend rate. We think going forward, it's much more beneficial, even though it's the same, because the volatility in that after-tax return is going to be vastly reduced. It's going to go to zero volatility compared to before. There were some years where the capital gains and dividend income we receive essentially wiped out the full $1.44 and there are some years where virtually none of it was, and I think shareholders will enjoy having a more stable after-tax return that is equal to what they were getting in over history. Given that now there will be no volatility in that after-tax return.

Excellent point. Okay, awesome. Very helpful. Thank you. I will get back in queue.

And your next question is from Kyle Joseph with Jefferies.

Hi, good afternoon, guys. Congratulations on a really strong start to the year. And thanks for having me on. A lot of my questions have been addressed, but just Ryan apologies if I missed it, did you give an outlook for maintenance CapEx for the remainder of the year?

We did not update that Kyle. So, I would assume it falls in line with the previous guidance.

Okay, perfect. And then Elias you references but in appreciate the color you gave on inflationary impact on the companies, but I want to talk about supply chain disruption and any companies that are being impacted there, because looking at the results, it doesn't necessarily feel like that's the case, but just any company did highlight being impacted by supply chain issues?

Yes. Kyle, I mean, again I want to start the question the answer off with giving praise to our subsidiary company managers who are all dealing with supply chain issues of varying degrees. And what they executed? How they executed? And the results they posted honestly is nothing short of remarkable and I think it's a testament to the strength of our subsidiary managers that we have in place and kind of what they're doing with their teams. And we've been for the last few years making some adjustments to our subsidiary management teams and really doing a lot of upgrading and I think the result of those efforts is really showing through in what are very challenging times today. I would point each company is having some issue. I would say Liberty Safe is dealing with getting some materials that we get or some components like locks that we get from Asia are difficult to get in. And there is component that we've continue to highlight at Velocity that causing supply shortages. Probably the two businesses that suffer the most right now from our supply shortages are 5.11 where we have an inordinately high amount of in-transit inventory, sort of double to triple the normal levels on a historical basis that is in transit. That's creating tremendous challenges for them to be able to ship inventory that should have been sitting in our warehouse. Now, the company is still growing. So, I think that is a testament to how strong demand is and how well they're executing and Velocity would be the second company that really is finding significant shortages. But again, kudos to the management team at Velocity for being able to manage through this and post such remarkable results.

Got it. Very helpful. Thanks again for having have me on and answering my questions.

Thank you, Kyle.

Thank you Kyle.

Your next question is from Cris Kennedy with William Blair.

Hi guys, thanks for taking the question and I appreciate all the detail. And the tax structure change potential. Just wanted to dive a little bit more into the M&A pipeline, is it primarily within kind of the consumer and niche industrial verticals are you kind of getting closer to potentially entering healthcare intact or technology. Some of the higher growth markets?

So I think we're looking now outside of just outside a little bit further afield we’re sort of just traditional and niche industrial and consumer businesses, we're not excluding them obviously, we're still focused on them, but we're looking at a little. We’ve done work sort of buildings out that second or that next vertical, but we haven't made any key hires to date and there is still a lot of stuff sort of going on in there. Right. So on the sort of healthcare on the dedicated healthcare team, we haven't any actions are definitive actions are definitive steps that is a long-term sort of strategic process that we continue to move down the path of but don't have anything to announce yet.

Okay, understood. And then Elias you mentioned increasing spending at some of your businesses. Can you just talk about some of the key priorities I guess which businesses you're referring to? Thanks guys.

Sure, so yes. So in general, I would say we really kind of clamp down on non-revenue generating spend as I think kind of our shareholders would have wanted us to do as the pandemic started and most of our managers just given the uncertainty as revenue started to rebound late in 2020. And for us remember we started posting comps year-over-year in Q3 with acceleration in Q4 and now massive acceleration in Q1 of this year. I would say the general uncertainty brought on by the pandemic had our managers, continuing to be I would say conservative in terms of allowing cost to come back. So there are some costs that need to come back, because we need to support the kind of revenue growth that we had, and that is across the board. Now, a company like Sterno, which have seen their revenue pop back here, likely does have cost increases, until we see significant increases in the their demand activity, but a company like Velocity or companies like 5.11 which were really kind of pushing down on our cost structure 5.11 I'm thinking in particular, there are some costs that need to come back there. Just to be able to support the operations and provide the logistics capabilities and customer support and all and the financial kind of back-office type things that need to occur. So, there is some, I would say, make-up that needs to occur in terms of spend to support higher levels of demand that exists in our businesses right now. That's a small portion to be honest. I would say where most of our focus is right now on adding cost. If I said we're going to add SG&A maybe 10% to 20% across the portfolio is in non-revenue generating activities. Our goal…

Very helpful. Thanks a lot guys.

Thank you.

And we have time for one last question. Your next question is from Robert Dodd with Raymond James.

Hi, guys, and congratulations on the quarter a couple about tax first and then fundamental if I can. On the tax and I really appreciate all the detail. You said - you expect the average after-tax return to approximately average - historically versus the future. In the analysis, you've done. Is there any particular characteristic, if the average is going to be the same, somebody is going to do worse somebody is going to do better? Are there any characteristics within your analysis of which shareholders would actually see a higher return versus a lower return post this decision, if it goes there [ph]?

No Robert. The average is meant - the mean across many years, so the rough numbers I had provided which was the $0.70. In some years, the years where we have substantial capital gains, like we did in 2019. The tax liability on a per share basis that a shareholder would have paid the IRS might have been $1.10 or $1.20 of the $1.44 right. So, the after-tax return was a couple penny of a dime right.

Understood, understood yes.

Whereas some years right yes, 2020 should be or 2018 was a reasonably high one. So it's really about averaging over the years shareholders in general, their tax situation will differ slightly based on some of their inside basis from time-to-time. But in general, the average we were referring to is over a time period.

Got it, I appreciate that. On just one more on that - the issue is still being discussed. I mean what's the process less - and I realize it's a Board recommendation if they decide to go this way or that way. What's left to do is this really I mean are we done [ph]. Is it just the paper work left to do in this proposal is going to go through or is the board still actually evaluating it on a fundamental basis?

So, the Board is certainly supportive of the analysis, but what's left is time and that time has to do with the special shareholder vote we need. So that special proxy that will have to file is subject to SEC review and that can take days or it can take months. So we've tried to be conservative with the time here. So I think, I think late Q3 is a reasonable estimate, I certainly hope we could beat that, but it's a little bit out of our control because it's based on the SEC review. And then so it’s a really - shareholder vote and then official formal Board resolutions.

Got it, I appreciate that yes.

But to be clear, Robert, we expect to move, this will be moved forward our Board is fully supportive, management is supportive. It's now just about getting the special vote in place. And we think this is a very good transaction for our shareholders and the company. And we would anticipate that our shareholders will support it. But obviously, a lot of kind of language which was softer around that as we said believe or anticipate those things are - less representative of what we're going to do internally. It was only representative of whether we get approval by our shareholders, which we would ask our shareholders to come out and vote their shares in special proxy that's coming up. So, that we get to a quorum and that they vote in favor of this, because we think it is a true game-changer in creating total shareholder return over the long-term for everybody.

Got it, I appreciate the clarity on that one. Thank you. One more if I can, on the supply chain and I say issues because - your performance doesn't as confidence [ph] doesn't really look like that's how many issues to be honest? Very, very strong performance and compliments on - that manages subsidiaries this performance produces? What, could you give us - with 5.11, it sounds like frankly there is just - there is inventory stuck on container ships of the core Long Beach probably, but is there - any of the supply chain issues actually related to say overseas production capacity problems? Or is it primarily just transport and we all know the backlogs of moving products backwards and forward side?

So, the vast majority is due to shipping issues and port issues. I think as you know I live on the West Coast and many times I can look out and see a sea full of containerships that are sitting waiting to be unloaded at the Port of Long Beach. And I always think while I wonder how much of our goods are sitting in there that unfortunately isn't being shipped to our customers. But I would say the vast majority is that. There are in some instances some component production issues, that we're dealing with Velocity because of the sudden increase in participation in - their sports had a massive demand increase and we didn't have and our frankly our suppliers didn't have the available capacity to ramp up is quickly is our demand ramp. And we've been chasing supply for boy the better part of kind of eight, nine months now. And so we continue to build kind of a supply there, but I would say it's a little bit different in terms of what is creating it, right. In some industries, what you're hearing about is there was capacity that was really shut-in. And it's hard to bring that capacity back as quickly as demand has come back. We hadn't experienced any of that. So, there are some demand chasing some supply chasing because of rapid demand. In terms of one company, that we do have a watch out for would be ERGO Baby. They have a reasonable amount of production in India. I think as everyone is aware, India is suffering probably more acutely than any other country right now with the pandemic. And so although right now, we are continuing to get supply uninterrupted out of India. I would just say that there is a heightened level of worry that we're managing through right now around whether or not. India starts to enact more stringent lockdowns that would cause supply issue there. But we're really not seeing out of our supply partners and inability on the, from the most part to be able to meet our demand, it's much more getting the product on a boat and getting it off loaded into the United States.

Can I just, one exception to that Robert would be around the storms in Texas. We did have some shutdowns briefly that our teams did a really great job of managing around. So there are some acute instances.

Got it, got it. I really appreciate that color. And again, congrats on the quarter record quarter for Pat, I mean in a still tough environment out there.

Thanks Robert.

Thank you, Robert.

And I'll now hand the call back over to the Elias Sabo for closing remarks.

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. We look forward to sharing our progress with you in the future. That concludes our call operator.

Thank you for joining us today. This does conclude today's presentation. You may now disconnect.