Advantage Solutions Inc. · NASDAQ:ADV
Advantage Solutions — Debt Investor Presentation (October 2021)
21 slides from Advantage Solutions's debt investor presentation, Oct 14, 2021
Slide 1: Advantage Solutions Inc. Lender Presentation October 2021
ADVANTAGE SOLUTIONS INC. LENDER PRESENTATION October 2021 CONFIDENTIAL ADVANTAGE SOLUTIONS
Slide 2: Disclaimer
DISCLAIMER 1 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 the future financial or operating perfo
Slide 3: Executive Summary
EXECUTIVE SUMMARY • Advantage Solutions (“Advantage” or the “Company”) is the leading provider of outsourced sales and marketing solutions to consumer goods companies and retailers o The Company generated Revenues, Adjusted EBITDA(1), and Credit Adjusted EBITDA(2) of $3.3 billion, $502 million, and
Slide 4: Sources & Uses and Pro Forma Capitalization
SOURCES & USES AND PRO FORMA CAPITALIZATION ($ in millions) Sources of Funds Amount Repriced First Lien Term Loan $1,318 Total Sources $1,318 Uses of Funds Amount Repay Existing First Lien Term Loan $1,318 Total Uses $1,318 3 ($ in millions) As of Pro Forma Pro Forma Capitalization Maturity 6/30/21
Slide 5: Summary of Indicative Terms
1) Current Asset Collateral shall comprise of Inventory, Deposit, Securities, and Commodities Accounts, General Intangibles (other than intellectual property, capital stock and intercompany loans), chattel paper, instruments, documents, commercial tort claims, letter of credit rights, supporting obl
Slide 6: Transaction Timeline
TRANSACTION TIMELINE 5 October 2021 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Date Event Week of October 11th Lender Call (10/15 @ 10:30 am ET) Week of October 17th Lender Commitments due (10/21 @ 12pm ET) Price and Allocate (10/2
Slide 7: Company Overview & Recent Developments
COMPANY OVERVIEW & RECENT DEVELOPMENTS
Slide 8: Advantage Solutions Overview
ADVANTAGE SOLUTIONS OVERVIEW 7 Essential Partner to Brands and Retailers Proven Value Creation Algorithm • Operate with excellence by serving clients well and delivering productivity through continuous improvement • Invest wisely in talent, technology and capability to support clients’ evolving need
Slide 9: Key Messages
KEY MESSAGES • Delivered solid financial results through the third quarter as reopening continues • Confirming the 2021 Adjusted EBITDA guidance of $520 to $530 million – a raise to our 2020 Refinancing outlook of $515 million – despite COVID uncertainty and difficult labor market • Seeing continued
Slide 10: Financial Performance
FINANCIAL PERFORMANCE
Slide 11: Preliminary Q3 Flash Results Show Continued Improvement in Trends
PRELIMINARY Q3 FLASH RESULTS SHOW CONTINUED IMPROVEMENT IN TRENDS 10 Total Advantage Sales Segment Marketing Segment $145 $136 $133 Q3'19A Q3'20A Q3'21E Y/Y growth (2%) $86 $102 $95 Q3'19A Q3'20A Q3'21E (7%) $59 $34 $38 Q3'19A Q3'20A Q3'21E 11% Y/Y growth Y/Y growth $ in millions. Adjusted EBITDA $9
Slide 12: Improving Trends Continue in Q3
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 Act 2020 Act 2021 Act IMPROVING TRENDS CONTINUE IN Q3 • Strengthening recovery in Marketing segment − In-store sampling recovering at key retailer partners − Digital & e-commerce strength continuing with consumer omnichannel shift • Continued stre
Slide 13: Financial Summary
FINANCIAL SUMMARY 12 Q4 Q1 Q2 TTM Q3 ($ in millions) Total Advantage 2020A 2019A % 2021A 2020A % 2021A 2020A % 2021E(1) 2020A % 2021E(1) 2020A % Revenues $850 $1,013 (16%) $791 $879 (10%) $850 $642 32% $929 $784 18% $3,420 $3,318 3% Adjusted EBITDA 133 144 (8%) 111 106 5% 122 112 9% 133 136 (2%) 499
Slide 14: Outlook
OUTLOOK Confirming FY2021 Outlook: • FY 2021 Adjusted EBITDA of $520 to 530 million • Continued investment in recruiting, training and retaining talent in a still-constrained labor market • Continued post-COVID normalization through balance of 2021 • Net Debt (1) / Adjusted EBITDA trending downwards
Slide 15: Appendix
APPENDIX
Slide 16: Non-GAAP Reconciliation for Historical Periods (1/3)
NON-GAAP RECONCILIATION FOR HISTORICAL PERIODS (1/3) 15 Consolidated Three Months Ended September 30, Three Months Ended December 31, Three Months Ended March 31, Three Months Ended June 30, LTM Period Ended 2020 2019 2020 2019 2021 2020 2021 2020 June 30, 2021 September 30, 2020 Total Company (in t
Slide 17: Non-GAAP Reconciliation for Net Debt (2/3)
NON-GAAP RECONCILIATION FOR NET DEBT (2/3) 16 (in millions) June 30, 2021 Current portion of long-term debt $ 13.3 Long-term debt, net of current portion 2,027.1 Less: Debt issuance costs (55.9) Total Debt 2,096.3 Less: Cash and cash equivalents 159.8 Total Net Debt (10) $ 1,936.5
Slide 18: Non-GAAP Reconciliation for Historical Periods (3/3)
NON-GAAP RECONCILIATION FOR HISTORICAL PERIODS (3/3) Note: Dollars in thousands. 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 comp
Slide 19: Non-GAAP Reconciliation for Credit Adjusted EBITDA (1/2)
NON-GAAP RECONCILIATION FOR CREDIT ADJUSTED EBITDA (1/2) 18 Consolidated LTM Period Ended June 30, (in thousands) 2021 Adjusted EBITDA (a) $ 502,179 Add: Interest income 667 Foreign exchange losses on operations (1) 2,353 Credit Adjusted EBITDA adjustments for economic interest (2) (10,661) Dividend
Slide 20: Non-GAAP Reconciliation for Credit Adjusted EBITDA (2/2)
NON-GAAP RECONCILIATION FOR CREDIT ADJUSTED EBITDA (2/2) Note: Dollars in thousands. Numerical figures included in this slide have been subject to rounding adjustments (1) Represents foreign exchange gains or losses on operations. (2) Represents reductions to remove (i) Equity in Earnings from uncon
Slide 21: Recent Developments
RECENT DEVELOPMENTS 20 Note: Our financial results for the three and nine months ended September 30 , 2021 are not yet complete . However, set forth above are certain preliminary estimated financial results for the three and nine months ended September 30, 2021 . We have provided ranges, rather than
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