Advantage Solutions Inc. · NASDAQ:ADV
Advantage Solutions — Q3 2022 Earnings Presentation
13 slides from Advantage Solutions's earnings presentation, Nov 9, 2022
Slide 1: Advantage Solutions Inc. Q3 2022 Earnings Presentation
ADVANTAGE SOLUTIONS INC. Q3 2022 Earnings Presentation November 9, 2022
Slide 2: Disclaimer: Forward-Looking Statements
DISCLAIMER Forward-Looking Statements Certain statements in this presentation may be considered forward -looking statements within the meaning of the federal securitie s laws, including statements regarding the expected future performance of Advantage's business. Forward-looking statements generally
Slide 3: Q3 Key Messages
Q3 KEY MESSAGES • Advantage generated approximately 13% year-on-year revenue growth driven by: • In-store sampling and demonstration events up 41% year-on-year • Further growth in retail merchandising services • Adjusted EBITDA and margin declined year-over-year as anticipated reflecting a shift in
Slide 4: Q3 Results Demonstrate Continued Recovery
Q3 RESULTS DEMONSTRATE CONTINUED RECOVERY Revenues Adjusted EBITDA $ in millions. $ in millions. $981 $1,051 $915 Total Advantage $108 $118 $97 11.0% 11.3% % margin 10.6% Q1'22A Q2'22A Q3'22A Q1'22A Q2'22A Q3'22A $20 0 Sales $18 0 $16 0 $592 $604 $646 $14 0 Segment $12 0 $10 0 $68 $72 $76 $80 $60 11
Slide 5: Healthy Revenue Trends Across Segments in Q3
HEALTHY REVENUE TRENDS ACROSS SEGMENTS IN Q3 • Solid revenue performance in Sales segment S A M P LI N G E V E N T C O U N T − Recovery in international businesses − Retail merchandising growth − Contributions from acquisitions +41% YOY − Mix challenged by growth in lower margin merchandising servic
Slide 6: Outlook and Guidance
OUTLOOK AND GUIDANCE Updating 2022 Outlook: • Reducing FY 2022 Adjusted EBITDA guidance to a range of $430 million to $440 million from a range of $490 million to $510 million, previously • This reflects a number of factors, including: • Tighter than anticipated labor market • Impacts from inflation
Slide 7: Capitalization Summary
CAPITALIZATION SUMMARY • Total Debt of $2.1 billion(1) − Leverage at around 4.2x net debt(1) to LTM September Adjusted EBITDA − No meaningful maturities for the next four+ years • Debt Capitalization: Maturity Rate Outstanding (2) First Lien Term Loan 2027 L+4.50% 1,302 $1,302 (3) Senior Secured Not
Slide 8: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 9: Non-GAAP Reconciliation (1/4)
NON-GAAP RECONCILIATION (1/4) Three Months Ended Consolidated March 31, June 30, September 30, 2022 2022 2022 Total Company (in thousands) Net income $ 17,534 $ 3,676 $ 23,227 Add: Interest expense, net 11,883 28,188 23,557 Provision for income taxes 9,049 1,316 1,158 Depreciation and amortization 5
Slide 10: Non-GAAP Reconciliation (2/4)
NON-GAAP RECONCILIATION (2/4) Three Months Ended March 31, June 30, September 30, 2022 2022 2022 Sales Segment (in thousands) Operating income $ 18,973 $ 15,177 $ 31,765 Add: Depreciation and amortization 40,969 40,543 39,798 Equity-based compensation of Topco(1) (1,652) (2,032) (320) Stock-based co
Slide 11: Non-GAAP Reconciliation (3/4)
NON-GAAP RECONCILIATION (3/4) September 30, (in millions) 2022 Current portion of long-term debt $ 14,7 Long-term debt, net of current portion 2,024.6 Less: Debt issuance costs (43.1) Total Debt 2,082.4 Less: Cash and cash equivalents 96.2 Total Net Debt $ 1,986.2 10
Slide 12: Non-GAAP Reconciliation (4/4)
NON-GAAP RECONCILIATION (4/4) Note: Numerical figures included in this slide have been subject to rounding adjustments (1) Represents expenses related to (i) equity-based compensation expense associated with grants of Common Series D Units of Karman Topco L.P. (“Topco”) made to one of the equityhold
Slide 13: Thank You
Thank You