Advantage Solutions Inc. · NASDAQ:ADV
Advantage Solutions — Q2 2024 Earnings Presentation
26 slides from Advantage Solutions's earnings presentation, Aug 7, 2024
Slide 1: 2Q 2024 Earnings Presentation
2Q 2024 Earnings Presentation August 7, 2024 1
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements Advantage believes that the use of Adjusted EBITDA from Continuing Operations, Adjusted EBTIDA from Discontinued Operations, Adjusted Certain statements in this presentation may be considered forward-looking statements within the meaning of the federal securitie
Slide 3: 2Q 2024: Business Simplification Substantially Complete
2Q 2024: Business Simplification Substantially Complete ► Focus on core capabilities as a unified company ► Improving business trajectory • Simplification initiatives to rationalize the portfolio and align • Revenues from Continuing Operations were $873M capabilities with economic buyers are substan
Slide 4: Divestitures Substantially Complete Enabling Focus on Core Capabilities
Divestitures Substantially Complete Enabling Focus on Core Capabilities 10/30/23 1/31/24 1/31/24 6/04/24 7/31/24 Atlas Technology Foodservice Businesses Tata Consultancy The Data Jun Group Group Sold to KeyImpact Sales & Services Council Sold to Verve Group Sold to Crisp Systems to form Acxion Moder
Slide 5: Enhancing Capabilities, Driving Efficiencies, and Unlocking Value
Enhancing Capabilities, Driving Efficiencies, and Unlocking Value PRESENT FUTURE One Advantage Company & Culture Simplify & Transform Realize Full Potential ► People-first culture Improved Enhancing financial employee ► Best-in-class discipline experience commercial excellence PAST ► Higher ROI & Un
Slide 6: Recognized for Delivering Through People and Purpose to Strengthen Performance
Recognized for Delivering Through People and Purpose to Strengthen Performance 7th Largest America's Greatest Gold Star Agency Company Workplaces for Partners In North America Women OUR VALUES PUT SERVE LEAD EXECUTE WIN PEOPLE WITH WITH RELENTLESSLY TOGETHER FIRST HEART INSIGHTS Celebrate diverse st
Slide 7: Branded Services
Branded Services Serving as the strategic extension of CPG sales and marketing teams with services including selling to retailers, retail merchandising and omnichannel marketing, leading brand and retail execution for a large and diverse client base Highlights Enhancing Commercial Value ► Turning re
Slide 8: Experiential Services
Experiential Services Helping brands break through, build loyalty and drive sales with omnichannel sampling experiences in-store and online Highlights Enhancing Commercial Value: ► Expanding omnichannel penetration ► Building on the power of sampling ~85% ~65% Shoppers indicate Shoppers make a purch
Slide 9: Retailer Services
Retailer Services Providing end-to-end solutions for retailers, including private brand strategy, merchandising, retail media and aisle/ shelf optimization Highlights Enhancing Commercial Value: ► Modernizing tech to diagnose stock levels and fill shelf gaps faster ► Leveraging new efficiencies to e
Slide 10: Uniquely Positioned at the Intersection of …
Uniquely Positioned at the Intersection of … CPG Manufacturers Retailers Business Intel & Growth Omni- Brand channel & Retail Physical Marketing Execution E-Commerce Retail Product, Private Aisle & Shelf Brands Reinvention National Brand Private Brand 10
Slide 11: Full Year Performance Expected to be More Weighted to the Second Half of the Year
Full Year Performance Expected to be More Weighted to the Second Half of the Year 1 2 3 Seasonality favors the Optimizing a unified company Focus on price second half of the year for business opportunities realization to help combat wage inflation ► Increased activity including ► Right-sizing talent
Slide 12: Strengthening Position as a Provider of Choice
Strengthening Position as a Provider of Choice Building on Proven Enhancing Commercial Stronger Results, Returns Strengths + Capabilities = and Value Unparalleled High Tech Generating consumer Insights and Advanced, real-time insights and on-demand demand Expertise solutions enhancing speed and prec
Slide 13: Improved Performance in a Dynamic Market
Improved Performance in a Dynamic Market TOTAL ADVANTAGE 2Q’24 Performance Commentary Revenues ► Increased in-store demonstration events per (Continuing Operations) (9)% +1%(1) day resulted in continued strong Revenues Net of Pass- $ in millions $873 $964 Through Costs performance from Experiential
Slide 14: Strong Performance Driven by Increased Events per Day
Strong Performance Driven by Increased Events per Day EXPERIENTIAL SERVICES 2Q’24 Performance Commentary Revenues (Continuing Operations) ► Average daily demo activity grew ~11% $ in millions +12% +12%(1) Revenues Net of Pass- year-over-year Y/Y growth Through Costs ► Execution rate (ability to meet
Slide 15: Improved Execution Increased Profitability
Improved Execution Increased Profitability RETAILER SERVICES 2Q’24 Performance Commentary Revenues (Continuing Operations) ► Adjusted EBITDA performance driven by $ in millions improved execution managing talent Y/Y growth 0% deployment and overall costs ► Softer market conditions in the traditional
Slide 16: Improving Business Trajectory
Improving Business Trajectory BRANDED SERVICES 2Q’24 Performance Commentary Revenues (Continuing Operations) ► Improving trajectory due to better $ in millions Deconsolidation execution and cost reductions in response Y/Y growth (28)% (6)%(1) $447 Pass-Through Costs to current market conditions and
Slide 17: Capitalization Summary
Capitalization Summary As of 6/30/2024 Net Debt Overview Maturity Schedule $ in millions $ in millions Maturity Rate Outstanding $1,598(3) $456 First Lien Term Loan 2027 S+4.25%(2) $1,142 Senior Secured Notes 2028 6.50% 666 $1,142 Total Gross Debt $1,808 $666 Less: Cash and Cash Equivalents (154) 20
Slide 18: Reaffirming 2024 Guidance
Reaffirming 2024 Guidance Growth during a year of investment Commentary $ in millions 2024 Guidance (on a continuing operations basis) ► As planned, full-year performance more weighted to 2H due to increased activity and Prior Current additional price realization Revenues Low single digit growth Low
Slide 19: Appendix
Appendix
Slide 20: Non-GAAP Reconciliation (1/6)
Non-GAAP Reconciliation (1/6) Net income to Adjusted EBITDA from Continuing Operations 20
Slide 21: Non-GAAP Reconciliation (2/6)
Non-GAAP Reconciliation (2/6) Operating income from continuing operations to Adjusted EBITDA by Segment 21
Slide 22: Non-GAAP Reconciliation (3/6)
Non-GAAP Reconciliation (3/6) Revenues to Revenues net of pass-through costs 22
Slide 23: Non-GAAP Reconciliation (4/6)
Non-GAAP Reconciliation (4/6) LTM Adjusted EBITDA and Net Debt 23
Slide 24: Non-GAAP Reconciliation (5/6)
Non-GAAP Reconciliation (5/6) Cash flow to Adjusted Unlevered Free Cash Flow 24
Slide 25: Non-GAAP Reconciliation (6/6)
Non-GAAP Reconciliation (6/6) Note: Numerical figures included in this slide have been subject to rounding adjustments a. Represents non-cash compensation expense related to the 2020 Incentive Award Plan and the 2020 Employee Stock Purchase Plan. b. Represents expenses related to (i) equity-based co
Slide 26: Thank you
Thank you (A) ADVANTAGE SOLUTIONS