Friday, Compass Diversified Holdings (CODI), a public investment firm, reported a wider loss for the first quarter, hurt mainly by non-cash impairment expenses for Staffmark subsidiary. Net sales for the quarter declined from the year ago quarter.
The Westport, Connecticut-based company reported a first-quarter net loss attributable to Holdings of $27.32 million or $0.87 per share, wider than a net loss of $0.80 million or $0.03 per share in the same quarter last year. Net loss for the quarter included a $16.4 million negative impact of one-time non-cash items.
Net loss before non-controlling interest was $42.23 million, wider than net loss of $1.31 million reported in the year ago quarter.
On average, eight analysts polled by Thomson Reuters expected the company to report a loss of $0.05 per share for the quarter. Analysts' estimates typically exclude special items.
The company noted that the wider net loss was the result of a $59.8 million non-cash impairment expense for its Staffmark subsidiary, partially offset by the associated tax benefit of $22.5 million, $12.7 million for the minority shareholders portion of impairment expense and a $8.2 million supplemental put reversal.
Net sales for the quarter were $274.91 million, down from $351.13 million in the comparable quarter last year. Analysts anticipated the company to report net sales of $291.72 million for the quarter.
Staffing expenses for the quarter decreased to $20.94 million from $25.07 million in the same quarter a year ago.
Operating loss for the quarter was $62.0 million, compared to operating income of $0.96 million in the prior year quarter. For the quarter, the company incurred a loss on debt repayment of 3.65 million.
Further during the quarter, the company repaid $75 million of debt, reducing outstanding debt at quarter end to $77.5 million, with no significant maturity until December 2013.
CODI is currently trading at $9.16, down $0.01 or 0.11% on a volume of 57,643 shares on the Nasdaq.
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