Slide 1: Advantage Solutions Inc. Earnings Presentation
ADVANTAGE SOLUTIONS INC. Earnings Presentation March 1, 2023
Slide 2: Disclaimer
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: 2022 Key Messages
2022 KEY MESSAGES • Record revenues of greater than $4 billion for full year 2022, an increase of 12% year-over-year • Adjusted EBITDA of $436 million in line with Company’s updated guidance rage • Decline in dollars and margin reflect a continued shift in revenue mix and persistent cost pressures •
Slide 4: Quarterly Financial Results
QUARTERLY FINANCIAL RESULTS Revenues Adjusted EBITDA $ in millions. $ in millions. $1,051 $1,103 $915 $981 Total $108 $118 $113 $97 Advantage 11.0% 11.3% 10.2% 10.6% % margin Q1'22A Q2'22A Q3'22A Q4'22A Q1'22A Q2'22A Q3'22A Q4'22A $665 $78 $646 $76 Sales $592 $604 $68 $72 Segment 11.5% 11.9% 11.8% 1
Slide 5: Healthy Revenue Trends Across Segments in Q4
HEALTHY REVENUE TRENDS ACROSS SEGMENTS IN Q4 • Strong growth in retail merchandising IN -S TO R E S A MPL IN G A N D D E MO N S TR A TIO N E V E N T CO U N T with continued mix shift away from headquarter work Sales Segment • Improvement in foodservice (no longer +26% YOY lapping customer loss) and
Slide 6: 2023 Outlook
2023 OUTLOOK • FY2023 Adjusted EBITDA guidance in the range of $400 million to $420 million prior to adjustments related to any acquisitions and divestitures • Decline from FY2022 performance, reflecting: • Continued inflationary cost pressures at “higher-than-normal” rates • Slow improvements in la
Slide 7: Capitalization Summary
CAPITALIZATION SUMMARY • Total Debt of $2.1 billion(1) − Leverage at around 4.5x net debt(1) to LTM December Adjusted EBITDA − No meaningful maturities for the next 4+ years • Debt Capitalization: Maturity Rate Outstanding (3) $1,799 (2) First Lien Term Loan 2027 L+4.50% 1,299 $500 Senior Secured No
Slide 8: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 9: Non-GAAP Reconciliation (1/4)
NON-GAAP RECONCILIATION (1/4) Three Months Ended Consolidated March 31, June 30, September 30, December 31, 2022 2022 2022 2022 Total Company (in thousands) Net income (loss) $ 17,534 $ 3,676 $ 23,227 $ (1,421,729) Add: Interest expense, net 11,883 28,188 23,557 40,831 Provision for (benefit from) i
Slide 10: Non-GAAP Reconciliation (2/4)
NON-GAAP RECONCILIATION (2/4) Three Months Ended March 31, June 30, September 30, December 31, 2022 2022 2022 2022 Sales Segment (in thousands) Operating income (loss) $ 18,973 $ 15,177 $ 31,765 $ (1,389,107) Add: Depreciation and amortization 40,969 40,543 39,798 40,075 Impairment of goodwill and i
Slide 11: Non-GAAP Reconciliation (3/4)
NON-GAAP RECONCILIATION (3/4) (in millions) December 31, 2022 Current portion of long-term debt $ 14.0 Long-term debt, net of current portion 2,022.8 Less: Debt issuance costs (42.4) Total Debt 2,079.2 Less: Cash and cash equivalents 120.7 Total Net Debt $ 1,958.5 10
Slide 12: Non-GAAP Reconciliation (4/4)
NON-GAAP RECONCILIATION (4/4) 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 equityhold
Slide 13: Thank You
Thank You