Business
Advantage Solutions Reports Third Quarter 2022 Financial Results and Provides Updated Guidance
IRVINE, Calif., Nov. 09, 2022 (GLOBE NEWSWIRE) -- Advantage Solutions Inc. (NASDAQ: ADV) (“Advantage,” “Advantage Solutions,” the “Company,” “we” or “our”), a
About this update from Advantage Solutions Inc.
[{"type":"text","content":"IRVINE, Calif., Nov. 09, 2022 (GLOBE NEWSWIRE) -- Advantage Solutions Inc. (NASDAQ: ADV) (“Advantage,” “Advantage Solutions,” the “Company,” “we” or “our”), a leading provider of outsourced sales and marketing services to consumer goods manufacturers and retailers, today reported financial results for its third quarter ended September 30, 2022. “Advantage’s performance in the third quarter was highlighted by 13% year-over-year revenue growth. Similar to recent prior quarters, this increase was driven largely by the ongoing recovery in our in-store sampling and demonstration business, along with further growth in retail merchandising services,” said Advantage Solutions Chief Executive Officer, Jill Griffin. “Although we have generated sequential revenue growth each quarter this year, the labor market remains extremely challenging, worsening over the course of 2022, and wage inflation and macro-economic conditions continue to be dynamic. Notwithstanding ongoing investments in wages to remain competitive and in infrastructure to improve our overall recruitment efficiencies, we have not been able to hire enough associates to meet the continued strong demand for our ‘must have’ service offerings. As a result of these ongoing challenges, the rebound we were expecting in the second half of 2022 will be more muted than we had originally anticipated and we believe will ultimately extend beyond this year. Therefore, we are reducing our 2022 full year Adjusted EBITDA outlook to a range of $430 million to $440 million.” Griffin continued, “Given the labor and inflationary headwinds and the longer path to more normalized operating conditions, we will be making a pivot with respect to our capital allocation priorities. In the current environment, we intend to be much more focused on de-leveraging our balance sheet with less emphasis on M&A in the near term until macro-economic conditions improve. Looking ahead, I remain confident that Advantage remains in a strong position to drive profitable growth as market conditions normalize.” Third Quarter 2022 Highlights Revenues were $1,051.1 million for the third quarter of 2022, representing an increase of $122.3 million, or 13.2%, from the third quarter 2021 revenues of $928.8 million.Operating income was $46.8 million for the third quarter of 2022, representing a decrease of $18.8 million, or 28.6...