Advantage Solutions Inc. · NASDAQ:ADV
Advantage Solutions — Q1 2021 Earnings Presentation
14 slides from Advantage Solutions's earnings presentation, May 10, 2021
Slide 1: Advantage Solutions, Inc. Q1 2021 Earnings Presentation
ADVANTAGE SOLUTIONS, INC. Q1 2021 Earnings Presentation May 10, 2021
Slide 2: Disclaimer: Forward Looking Statements
DISCLAIMER 1 Forward Looking Statements Certain statements in this presentation or accompanying commentary may be considered forward - looking statements with the meaning of federal securities laws. Forward - looking statements generally relate to future events or Advantage’s future financial or ope
Slide 3: Key Messages
KEY MESSAGES • Delivered results ahead of expectations for the third quarter in a row • Highly confident in full year Adjusted EBITDA outlook of $515 - 525 million, despite COVID uncertainty • Seeing steady recovery in businesses most impacted by COVID, with sampling and demonstration events up 30%
Slide 4: Improving Trends in Q1 Results
IMPROVING TRENDS IN Q1 RESULTS Note: Please see the appendix for a reconciliation of non - GAAP financial measures to most directly comparable GAAP measures. 3 Total Advantage Sales Segment Marketing Segment $106 $111 Q1'20A Q1'21A Y/Y growth 4.8% $79 $84 Q1'20A Q1'21A 7.0% $28 $27 Q1'20A Q1'21A (1.
Slide 5: Improving Trends in Q1 Results
IMPROVING TRENDS IN Q1 RESULTS • Signs of recovery in Marketing segment − In - store sampling continues to ramp on back of accelerated vaccine roll out to 176K in March − Digital agency business strong as COVID accelerated digital investment • Continued strength in Sales segment − Strong center - st
Slide 6: Pillars of Our Strategy for Value Creation
PILLARS OF OUR STRATEGY FOR VALUE CREATION • Operate with excellence by serving existing clients well and delivering productivity through continuous improvement • Invest wisely in talent, technology and capability to support clients’ evolving needs through attractive opportunities for − Organic rein
Slide 7: Financial Performance
FINANCIAL PERFORMANCE
Slide 8: Financial Summary
FINANCIAL SUMMARY Note: Please see the appendix for a reconciliation of non - GAAP financial measures to most directly comparable GAAP measures . Totals may not add due to rounding. 7 Q2 Q3 Q4 Q1 ($ in millions.) 2020A 2019A % 2020A 2019A % 2020A 2019A % 2021A 2020A % Total Advantage Revenues $642 $
Slide 9: Capitalization Summary
• Q1 2021 Total Debt of $2.1 billion (1) − Leverage at around 3.9x net debt (1) to LTM March Adjusted EBITDA − No meaningful maturities for the next five+ years • Q1 2021 Debt Capitalization: • Equity capitalization @ March 31, 2021: − 318,449,966 Class A Common shares outstanding (5) − 18,583,333 W
Slide 10: Outlook
OUTLOOK Highly confident in FY 2021 Outlook: • FY 2021 Adjusted EBITDA of $515 - 525 million • Q2 headwinds from Marketing segment reinvestment and Sales segment pantry loading comp • COVID recovery back - half weighted • Net Debt / Adjusted EBITDA trending downwards in 2021, toward 3.0x by end of 2
Slide 11: Thank You
THANK YOU
Slide 12: Non-GAAP Reconciliation for Adjusted EBITDA (1/3)
NON - GAAP RECONCILIATION FOR ADJUSTED EBITDA (1/3) 11 Sales Segment Three Months Ended March 31, 2021 2020 Sales Segment Revenues $ 534,324 $ 507,798 Operating income $ 35,148 $ 24,194 Add: Depreciation and amortization 42,564 43,107 Equity based compensation of Karman Topco L.P. and Advantage’s pr
Slide 13: Non-GAAP Reconciliation for Historical Periods (2/3)
NON - GAAP RECONCILIATION FOR HISTORICAL PERIODS (2/3) 12 (in millions) March 31, 2021 Current portion of long - term debt $ 13.3 Long - term debt, net of current portion 2,028.1 Total Debt 2,041.4 Less: Debt issuance costs (58.3) Cash and cash equivalents 156.4 Total Net Debt (11) $ 1,943.3 Three M
Slide 14: Non-GAAP Reconciliation for Historical Periods (3/3)
NON - GAAP RECONCILIATION FOR HISTORICAL PERIODS (3/3) Note: Dollars in millions. Numerical figures included in this slide have been subject to rounding adjustments (1) Equity based compensation of Karman Topco L.P. and Advantage’s private equity sponsors’ management fee. (2) Represents non - cash c