Slide 1: Advantage Solutions Inc. Q3 2021 Earnings Presentation
ADVANTAGE SOLUTIONS INC. Q3 2021 Earnings Presentation November 9, 2021
Slide 2: Disclaimer: Forward Looking Statements
DISCLAIMER 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 operating
Slide 3: Key Messages
KEY MESSAGES • Delivered healthy financial results through the third quarter as reopening continued • Affirming 2021 Adjusted EBITDA guidance of $520 to $530 million despite a dynamic operating environment • Taking pricing in a majority of our businesses most impacted by part-time labor wage inflati
Slide 4: Q3 Trends
Q3 TRENDS Revenues Adjusted EBITDA $ in millions. $ in millions. Y/Y growth 18% Y/Y growth (2%) Total $982 $929 $145 $136 $134 Advantage $784 Q3'19A Q3'20A Q3'21A Q3'19A Q3'20A Q3'21A Y/Y growth 10% Y/Y growth (7%) Sales $597 $102 $542 $95 Segment $503 $86 Q3'19A Q3'20A Q3'21A Q3'19A Q3'20A Q3'21A Y
Slide 5: Improving Trends Continue in Q3
IMPROVING TRENDS CONTINUE IN Q3 SAMPLING EVENT COUNT • Strengthening recovery in Marketing segment − In-store sampling recovering at key retailer partners +~13% Q/Q − Digital & e-commerce strength continuing with consumer omnichannel shift • Continued strength in Sales segment Jan Feb Mar Apr May Ju
Slide 6: Value Creation Algorithm
VALUE CREATION ALGORITHM • Operate with excellence by serving existing clients well and delivering productivity through continuous improvement • Invest wisely in talent, technology and capability to support clients’ evolving needs through attractive opportunities for: − Organic reinvestment − Discip
Slide 7: Financial Performance
FINANCIAL PERFORMANCE
Slide 8: Financial Summary
FINANCIAL SUMMARY Q4 Q1 Q2 Q3 ($ in millions) 2020A 2019A % 2021A 2020A % 2021A 2020A % 2021A 2020A % Total Advantage Revenues $850 $1,013 (16)% $791 $879 (10)% $850 $642 32% $929 $784 18% Adjusted EBITDA 133 144 (8)% 111 106 5% 122 112 9% 134 136 (2)% % margin 15.6% 14.2% 14.1% 12.1% 14.4% 17.5% 14
Slide 9: Capitalization Summary
CAPITALIZATION SUMMARY • Total Debt of $2.1 billion(1) − Leverage at around 3.9x net debt(1) to LTM September Adjusted EBITDA − No meaningful maturities for the next four+ years $1,315 (4) • Debt Capitalization: Maturity Rate Outstanding $775 Asset-backed Revolver ($400M) 2025 L+2.25%(2) -- $400 Fir
Slide 10: Outlook
OUTLOOK Affirming FY2021 Outlook: • FY 2021 Adjusted EBITDA of $520-530 million • Realizing disciplined pricing to offset wage inflation in labor intensive services • Investing in recruiting, training and retaining talent in a still-constrained labor market • Expecting continued post-COVID recovery
Slide 11: Thank You
THANK YOU
Slide 12: Non-GAAP Reconciliation (1/3)
NON-GAAP RECONCILIATION (1/3) Three Months Ended Three Months Ended Three Months Ended Three Months Ended Consolidated December 31, March 31, June 30, September 30, 2020 2019 2021 2020 2021 2020 2021 2020 Total Company (in thousands) Net income $ (152,238) $ 14,802 $ (546) $ (21,723) $ 5,754 $ (37,8
Slide 13: Non-GAAP Reconciliation (2/3)
NON-GAAP RECONCILIATION (2/3) September 30, (in millions) 2021 Current portion of long-term debt $ 13.4 Long-term debt, net of current portion 2,026.0 Less: Debt issuance costs (53.6) Total Debt 2,093.0 Less: Cash and cash equivalents 168.0 (12,13) Total Net Debt $ 1,925.0 12
Slide 14: Non-GAAP Reconciliation (3/3)
NON-GAAP RECONCILIATION (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 compensation expense related