Slide 1: Advantage Solutions Inc. Earnings Presentation
ADVANTAGE SOLUTIONS INC. Earnings Presentation May 10, 2023
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: Q1 Key Messages
Q1 KEY MESSAGES • New executive leadership team in place with broad experience across consumer, retail, and business transformation. Team is working on a strategic long-range plan over coming months to better position company for long-term profitable growth • Strong quarterly revenues of $1 billion,
Slide 4: Q1 Financial Results
Q1 FINANCIAL RESULTS Revenues Adjusted EBITDA $ in millions. $ in millions. 11% Y/Y growth Y/Y growth (5)% $1,012 $915 Total Advantage $92 $97 % margin 9.1% 10.6% Q1'23A Q1'22A Q1'23A Q1'22A Y/Y growth Y/Y growth (4)% 4% $200 $180 $160 Sales $613 $592 $140 $120 $68 Segment $66 $100 $80 $60 11.5% $40
Slide 5: Healthy Revenue Trends Across Segments in Q1
HEALTHY REVENUE TRENDS ACROSS SEGMENTS IN Q1 • Growth in retail merchandising services IN-STORE SAMPLING AND DEMONSTRATION EVENT COUNT and European joint venture Sales Segment • Successful realization of pricing increases and new business wins +27% YOY • In-store sampling and demonstration continuin
Slide 6: Capitalization Summary
CAPITALIZATION SUMMARY • Total Debt of $2.1 billion(1) − Leverage at around 4.5x net debt(1) to LTM March Adjusted EBITDA − No meaningful maturities for the next 4+ years • Debt Capitalization: $ in millions Maturity Rate Outstanding (3) $1,793 First Lien Term Loan 2027 L+4.50%(2) $1,293 $500 Senior
Slide 7: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 8: Non-GAAP Reconciliation (1/5)
NON-GAAP RECONCILIATION (1/5) Three Months Ended March 31, 2023 2022 Total Company (amount in thousands) Net (loss) income $ (47,678) $ 17,534 Add: Interest expense, net 47,191 11,883 (Benefit from) provision for income taxes (7,696) 9,049 Depreciation and amortization 57,104 57,768 Equity based com
Slide 9: Non-GAAP Reconciliation (2/5)
NON-GAAP RECONCILIATION (2/5) Three Months Ended March 31, 2023 2022 Sales Segment (in thousands) Operating (loss) income $ (4,146) $ 18,973 Add: Depreciation and amortization 39,814 40,969 Equity based compensation of Topco(1) (1,501) (1,652) Stock based compensation expense(2) 6,690 4,758 Fair val
Slide 10: Non-GAAP Reconciliation (3/5)
NON-GAAP RECONCILIATION (3/5) Three Months Ended March 31, 2023 2022 (in thousands) Net cash provided by (used in) operating activities $ 43,086 $ (23,955) Add (Less): Purchase of property and equipment (7,278) (10,439) Cash payments for interest 28,631 18,516 Cash payments for income taxes 3,880 5,
Slide 11: Non-GAAP Reconciliation (4/5)
NON-GAAP RECONCILIATION (4/5) (in millions) March 31, 2023 Current portion of long-term debt $ 15.1 Long-term debt, net of current portion 2,018.8 Less: Debt issuance costs (40.3) Total Debt 2,074.2 Less: Cash and cash equivalents 149.1 Total Net Debt $ 1,925.1 10
Slide 12: Non-GAAP Reconciliation (5/5)
NON-GAAP RECONCILIATION (5/5) 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 equity hol
Slide 13: Thank You
Thank You