Advantage Solutions Inc. · NASDAQ:ADV
Advantage Solutions — Q3 2020 Earnings Presentation
14 slides from Advantage Solutions's earnings presentation, Nov 16, 2020
Slide 1: Advantage Solutions, Inc. Q3 2020 Earnings Presentation
Advantage Solutions, Inc. Q3 2020 Earnings Presentation November 16, 2020
Slide 2: Disclaimer
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 Successfully Completed Business Combination with Conyers Park II Q3 Financial Results Met or Exceeded Expectations Evidence of Recovery in COVID-Impacted Operations in Sales and Marketing Segments Executing Well Against Long-term Value Creation Strategies Raising Expected FY 2
Slide 4: Improving Trends in Q3 Results
Improving Trends in Q3 Results Revenues Adjusted EBITDA $ in millions. Sequential Improvement $ in millions. Y/Y growth 1% (30%) (20%) Y/Y growth 11% (6%) (6%) Total $879 $136 Advantage $784 $106 $112 $642 17.4% % margin 12.1% 17.5% Q1'20A Q2'20A Q3'20A Q1'20A Q2'20A Q3'20A Y/Y growth 11% (3%) 8% Y/
Slide 5: Q3 Results Reflect Improvement in Trends
Q3 Results Reflect Improvement in Trends Continued strength in Sales segment – Strong center-store / eat-at-home trends remain in place – Food service channel remains weak, but beginning recovery – European Joint Venture still soft, but improving – E-commerce (on-line, click-and-collect) business
Slide 6: Pillars of Our Strategy for Value Creation
Pillars of Our Strategy for Value Creation Operate with excellence by serving existing clients well and delivering productivity through continuous improvement Invest wisely in talent, technology and capability to support clients’ evolving needs through attractive opportunities for – Organic rein
Slide 7: Financial Performance
Financial Performance 6
Slide 8: Financial Summary
Financial Summary Q1 Q2 Q3 ($ in millions.) 2020A 2019A % 2020A 2019A % 2020A 2019A % Total Advantage Revenues $879 $869 1% $642 $922 (30%) $784 $982 (20%) Adjusted EBITDA 106 96 11% 112 119 (6%) 136 145 (6%) % margin 12.1% 11.0% 17.5% 12.9% 17.4% 14.8% Adjusted Net Income 27 8 220% 39 34 13% 66 66
Slide 9: Capitalization Summary
Capitalization Summary Q3 2020 Total Debt of $3,331 million refinanced(1) as part of the Conyers Park II business combination – Reduced leverage: 5.7x Net Debt / LTM Q3 2020 Adjusted EBITDA of $499 million reduced to 4.1x post-combination – Pushed out maturities: 2021 and 2022 term loan maturities
Slide 10: Outlook
Outlook Revised FY 2020 Outlook (excluding future acquisitions): FY 2020 Adjusted EBITDA of $480 to $485 million, an increase to the $475 million forecast shared as part of our business combination Revenues expected to decline 16% to 19% versus 2019 revenues of $3,785 million, revised from previ
Slide 11: Thank you
Thank you 10
Slide 12: Non-GAAP Reconciliation for Adjusted EBITDA (1/3)
Non-GAAP Reconciliation for Adjusted EBITDA (1/3) Three Months Ended Three Months Ended Three Months Ended LTM Period Ended Consolidated March 31, June 30, September 30, September 30, 2020 2019 2020 2019 2020 2019 2020 2019 Total Company (in thousands) Net income (loss) $ (21,723) $ (44,195) $ (37,8
Slide 13: Non-GAAP Reconciliation for Historical Periods (2/3)
Non-GAAP Reconciliation for Historical Periods (2/3) 12
Slide 14: Non-GAAP Reconciliation for Historical Periods (3/3)
Non-GAAP Reconciliation for Historical Periods (3/3) Note: Dollars in millions. Numerical figures included in this slide have been subject to rounding adjustments (1) Historical management fees paid to existing shareholders and non-cash stock based compensation expense. (2) Represents adjustments to