Slide 1: Advantage Solutions Inc. Q1 2022 Earnings Presentation
ADVANTAGE SOLUTIONS INC. Q1 2022 Earnings Presentation May 10, 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: Q1 Key Messages
Q1 KEY MESSAGES • Delivered first quarter results that were largely in-line with our expectations • Generated approximately 16% year-on-year revenue growth driven by: • Sampling events up 62% year-on-year • Meaningful rebound in Europe due to reopening of businesses • Successful tuck-in M&A activiti
Slide 4: Q1 Delivered a Solid Start to 2022
Q1 DELIVERED A SOLID START TO 2022 Revenues Adjusted EBITDA $ in millions. $ in millions. Y/Y growth 16% Y/Y growth (13)% Total $915 $791 Advantage $111 $97 % margin 14.1% 10.6% Q1'21A Q1'22A Q1'21A Q1'22A Y/Y growth 11% Y/Y growth (19)% Sales $592 Segment $534 $84 $68 15.7% % margin 11.5% Q1'21A Q1
Slide 5: Healthy Trends Across Segments in Q1
HEALTHY TRENDS ACROSS SEGMENTS IN Q1 • Solid revenue performance in Sales segment S A M P LI N G E V E N T C O U N T − Sales agency business reflects increase in consumer goods spend in dollars due to inflation partially offset by lower unit volume due to supply chain challenges +62% YOY − Retail me
Slide 6: 2022 Investment Activities
2022 INVESTMENT ACTIVITIES Innovation Renovation Talent Investing to scale adjacent and Accelerating investment in Increased spending in wages, complementary services, especially infrastructure, systems and tools recruiting and retention higher-growth, higher-margin data, to help drive productivity
Slide 7: Financial Performance
FINANCIAL PERFORMANCE
Slide 8: Financial Summary
FINANCIAL SUMMARY Q2 Q3 Q4 Q1 ($ in millions) 2021A 2020A % 2021A 2020A % 2021A 2020A % 2022A 2021A % Total Advantage Revenues $850 $642 32% $929 $784 18% $1,033 $850 21% $915 $791 16% Adjusted EBITDA 122 112 9% 134 136 (2)% 154 133 16% 97 111 (13)% % margin 14.4% 17.5% 14.4% 17.4% 14.9% 15.6% 10.6%
Slide 9: Capitalization Summary
CAPITALIZATION SUMMARY • Total Debt of $2.1 billion(1) − Leverage at around 3.9x net debt(1) to LTM March Adjusted EBITDA − No meaningful maturities for the next four+ years • Debt Capitalization: Maturity Rate Outstanding (4) (2) $1,308 Asset-backed Revolver ($400M) 2025 L+2.25% -- First Lien Term
Slide 10: Outlook and Guidance
OUTLOOK AND GUIDANCE Affirming 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 and continued reinvestment activities, including: • Focusing more funding on talent – wages, recruiting, and reten
Slide 11: Thank You
THANK YOU
Slide 12: Non-GAAP Reconciliation (1/3)
NON-GAAP RECONCILIATION (1/3) Three Months Ended Consolidated March 31, 2022 2021 Total Company (in thousands) Net income (loss) $ 17,534 $ (546) Add: Interest expense, net 11,883 30,865 Provision for income taxes 9,049 1,743 Depreciation and amortization 57,768 59,613 Equity based compensation of T
Slide 13: Non-GAAP Reconciliation (2/3)
NON-GAAP RECONCILIATION (2/3) (in millions) March 31, 2022 Current portion of long-term debt $ 15.0 Long-term debt, net of current portion 2,027.7 Less: Debt issuance costs (47.5) Total Debt 2,090.2 Less: Cash and cash equivalents 123.6 Total Net Debt (10) $ 1,966.6 12
Slide 14: 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) Represents equity-based compensation of Karman Topco L.P. (2) Represents non-cash compensation expense related to issuance of performance restricted stock u