Slide 1: Q4 2021 Earnings Presentation
ADVANTAGE SOLUTIONS INC. Q4 2021 Earnings Presentation March 1, 2022
Slide 2: Disclaimer: Forward-Looking Statements
DISCLAIMER Forward-Looking Statements Certain statements in this press release may be considered forward -looking statements within the meaning of the federal securiti es laws, including statements regarding the expected future performance of Advantage's business. Forward-looking statements generall
Slide 3: Q4 Key Messages
Q4 KEY MESSAGES • Delivered solid fourth quarter revenue and adjusted EBITDA growth, finishing strong in a challenging year • Seeing continued recovery in businesses most impacted by COVID, with sampling events up ~20% q/q • Seeing sustained at-home consumer goods demand – supported by healthy prici
Slide 4: Q4 Delivered Solid Finish to 2021
Q4 DELIVERED SOLID FINISH TO 2021 Revenues Adjusted EBITDA $ in millions. $ in millions. Y/Y growth (10%) 32% 18% 21% Y/Y growth 5% 9% (2%) 16% $1033 Total $929 $154 $850 $134 Advantage $791 $111 $122 14.9% % margin 14.4% 14.4% 14.1% Q1'21A Q2'21A Q3'21A Q4'21A Q1'21A Q2'21A Q3'21A Q4'21A Y/Y growth
Slide 5: Healthy Trends Across Segments in Q4
HEALTHY TRENDS ACROSS SEGMENTS IN Q4 SAMPLING EVENT COUNT • Strengthening recovery in Marketing segment − In-store sampling continuing to rebound +20% Q/Q − Digital services outpacing e-commerce end market • Balanced performance in Sales segment Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec − At-h
Slide 6: 2021 Key Messages
2021 KEY MESSAGES • 2021 was not a ‘normalizing’ post-COVID year: • Trends continued stronger for longer in COVID-aided businesses • Rebounds were slower in COVID-impacted businesses • Sales segment posted healthy revenue growth but mix, recruiting and wage costs constrained EBITDA growth • Marketin
Slide 7: 2021 Trends Rebounded Nicely
2021 TRENDS REBOUNDED NICELY Revenues Adjusted EBITDA $ in millions. $ in millions. (17%) 14% Y/Y growth (3%) 7% Y/Y growth $3,785 Total $3,602 $521 Advantage $504 $3,156 $487 14.5% % margin 13.3% 15.4% FY'19A FY'20A FY'21A FY'19A FY'20A 5.8% FY'21A Y/Y growth 5% 13% Y/Y growth 16% 1% $2,324 Sales $
Slide 8: Financial Performance
FINANCIAL PERFORMANCE
Slide 9: Financial Summary
FINANCIAL SUMMARY Q1 Q2 Q3 Q4 ($ in millions) 2021A 2020A % 2021A 2020A % 2021A 2020A % 2021A 2020A % Total Advantage Revenues $791 $879 (10)% $850 $642 32% $929 $784 18% $1033 $850 21% Adjusted EBITDA 111 106 5% 122 112 9% 134 136 (2)% 154 133 16% % margin 14.1% 12.1% 14.4% 17.5% 14.4% 17.4% 14.9%
Slide 10: Capitalization Summary
CAPITALIZATION SUMMARY • Total Debt of $2.1 billion(1) − Leverage at around 3.7x net debt(1) to FY21 Adjusted EBITDA − No meaningful maturities for the next four+ years (4) • Debt Capitalization: $1312 Maturity Rate Outstanding $775 Asset-backed Revolver ($400M) 2025 L+2.25%(2) -- $400 First Lien Te
Slide 11: Outlook and Guidance
OUTLOOK AND GUIDANCE Establishing 2022 Outlook: • FY 2022 Adjusted EBITDA of $490 to $510 million • This reflects an initial budget for 2022 that showed modest year-over-year EBITDA growth • Focusing even more funding on talent – wages, recruiting, and retention • Investing in innovation to scale ad
Slide 12: Thank You
THANK YOU
Slide 13: Non-GAAP Reconciliation (1/3)
NON-GAAP RECONCILIATION (1/3) Three Months Ended Three Months Ended Three Months Ended Three Months Ended Consolidated March 31, June 30, September 30, December 31, 2021 2020 2021 2020 2021 2020 2021 2020 Total Company (in thousands) Net income $ (546) $ (21,723) $ 5,754 $ (37,814) $ 24,327 $ 36,705
Slide 14: Non-GAAP Reconciliation (2/3)
NON-GAAP RECONCILIATION (2/3) (in millions) December 31, 2021 Current portion of long-term debt $ 14.4 Long-term debt, net of current portion 2,028.9 Less: Debt issuance costs (49.8) Total Debt 2,093.1 Less: Cash and cash equivalents 164.6 (10,11) Total Net Debt $ 1,928.5 13
Slide 15: 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