Advantage Solutions Inc. · NASDAQ:ADV
Advantage Solutions — Q3 2024 Earnings Presentation
21 slides from Advantage Solutions's earnings presentation, Nov 7, 2024
Slide 1: 3Q 2024 Earnings
3Q 2024 Earnings November 7, 2024
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements Advantage believes that the use of Adjusted EBITDA from Continuing Operations, Adjusted EBITDA from Discontinued Operations, Certain statements in this presentation may be considered forward-looking statements within the meaning of the federal Adjusted EBITDA by
Slide 3: Healthy 3Q'24 Performance
Healthy 3Q’24 Performance $802M $101M $69M 3.9x Revenues(1) Adj. Unlevered -10% YOY Adj. EBITDA(2) FCF 67% Net Leverage +2% organic +8% YOY conversion(3) Ratio(3) • Adjusted EBITDA growth driven by healthy performance across Experiential and Retailer Services • Transformation remains on track with c
Slide 4: Scaled Platform and Full-Service Capabilities Increases Efficiency with Clients
Scaled Platform and Full-Service Capabilities Increases Efficiency with Clients 4,000+ 70,000+ ~70,000,000 100,000+ Clients Associates Labor Hours Retailer Locations Helping brands and retailers break through, grow sales, lower costs and solve problems in stores and online Brands Retailers Advantage
Slide 5: Competitive Differentiation Attracting New Clients and Expanding Services with Current Clients
Competitive Differentiation Attracting New Clients and Expanding Services with Current Clients Retailer Services Experiential Services Branded Services Adding more services for Meeting the growing Cross-selling and expanding existing clients and demand for in-store-events, on existing services for e
Slide 6: Significant Actions to Simplify, Streamline and Improve the Business
Significant Actions to Simplify, Streamline and Improve the Business Operating Modernizing Elevating Effectiveness Technology AI Omnichannel Deploy new technologies for increased Equip teammates with the right tools Create competitive differentiation and Offer scalable and targeted solutions speed a
Slide 7: Growth During a Year of Investment
Growth During a Year of Investment 1 2 3 Meeting Clients’ Strengthening Position Reaffirming 2024 Needs as Provider of Choice Guidance ► Providing differentiated ► Transformation on track; ► Expect low single-digit capabilities to drive investing to enhance revenue and Adjusted consistent client res
Slide 8: Resilience in a Dynamic Market Environment
Resilience in a Dynamic Market Environment TOTAL ADVANTAGE 3Q’24 Highlights Revenues (Continuing Operations) ► Improved profit trajectory for Branded $ in millions Deconsolidation Services through increased client activity, Y/Y growth (8)% +2%(1) $1,020 Pass-Through Costs better execution and gains
Slide 9: Efficient Execution and Labor Utilization Improved Profit Trajectory
Efficient Execution and Labor Utilization Improved Profit Trajectory BRANDED SERVICES 3Q’24 Highlights Revenues (Continuing Operations) ► Demonstrated improved execution and $ in millions Deconsolidation operating efficiency through higher labor Y/Y growth (27)% (4)%(1) $451 Pass-Through Costs utili
Slide 10: Strong Client Demand Drove Performance
Strong Client Demand Drove Performance EXPERIENTIAL SERVICES 3Q’24 Highlights Revenues (Continuing Operations) ► Strong client demand drove revenue $ in millions and Adjusted EBITDA growth Y/Y growth +11% +12%(1) Pass-Through Costs $343 Revenues Net of Pass- $308 $89 $82 Through Costs ► Average even
Slide 11: Growth from Increased Activity and Solid Execution
Growth from Increased Activity and Solid Execution RETAILER SERVICES 3Q’24 Highlights Revenues (Continuing Operations) ► Increased client activity for $ in millions merchandising services, including a Y/Y growth +2% shift in activity from the fourth quarter $265 $260 ► Solid execution managing talen
Slide 12: Strengthening Balance Sheet, Disciplined Spending
Strengthening Balance Sheet, Disciplined Spending As of 9/30/2024 Net Debt Overview Maturity Schedule $ in millions $1,565(3) $ in millions Maturity Rate Outstanding $456 First Lien Term Loan 2027 S+4.25%(2) $1,109 Senior Secured Notes 2028 6.50% 615 $1,109 Total Gross Debt $1,724 $615 Less: Cash an
Slide 13: On Track to Deliver 2024 Guidance
On Track to Deliver 2024 Guidance Expect to achieve growth during a year of investment $ in millions, unless otherwise noted 2024 Guidance 2024 Commentary (on a continuing operations basis) ► Navigating a challenging consumer Revenues Low single digit growth environment for clients ► Improving opera
Slide 14: Appendix
Appendix
Slide 15: Non-GAAP Reconciliation (1/7)
Non-GAAP Reconciliation (1/7) Net Income to Adjusted EBITDA from Continuing Operations and Discontinued Operations Internal Use Only 15
Slide 16: Non-GAAP Reconciliation (2/7)
Non-GAAP Reconciliation (2/7) Operating Income to Adjusted EBITDA by Segment Internal Use Only 16
Slide 17: Non-GAAP Reconciliation (3/7)
Non-GAAP Reconciliation (3/7) Operating Income to Adjusted EBITDA by Segment Internal Use Only 17
Slide 18: Non-GAAP Reconciliation (4/7)
Non-GAAP Reconciliation (4/7) Revenues to Revenues net of pass-through costs Three Months Ended September 30, (in thousands) 2024 2023 Revenues Branded services $ 331,357 $ 451,173 Experiential services 342,731 308,381 Retail services 265,182 260,152 Total revenues $ 939,270 $ 1,019,706 Less: Pass-t
Slide 19: Non-GAAP Reconciliation (5/7)
Non-GAAP Reconciliation (5/7) LTM Adjusted EBITDA and Adjusted Unlevered Free Cash Flow Internal Use Only 19
Slide 20: Non-GAAP Reconciliation (6/7)
Non-GAAP Reconciliation (6/7) Net Debt Internal Use Only 20
Slide 21: Non-GAAP Reconciliation (7/7)
Non-GAAP Reconciliation (7/7) Footnotes (a) Represents non-cash compensation expense related to performance stock units, restricted stock units, and stock options under the 2020 Advantage Solutions Incentive Award Plan and the Advantage Solutions 2020 Employee Stock Purchase Plan. (b) Represents exp