Slide 1: Advantage Solutions, Inc. Q2 2021 Earnings Presentation
ADVANTAGE SOLUTIONS, INC. Q2 2021 Earnings Presentation August 9, 2021
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 • Delivered solid second quarter financial results as reopening continues • Raising our 2021 Adjusted EBITDA guidance to a range of $520 to $530 million, despite COVID uncertainty • Seeing steady recovery in businesses most impacted by COVID, with sampling events up ~4x y/y in June • Se
Slide 4: Improving Trends in Q2 Results
IMPROVING TRENDS IN Q2 RESULTS Revenues Adjusted EBITDA $ in millions. $ in millions. Y/Y growth 32.5% Y/Y growth 8.9% Total $922 $850 Advantage $119 $112 $122 $642 Q2'19 Q2'20A Q2'21A Q2'19 Q2'20A Q2'21A Y/Y growth 22.0% Y/Y growth (0.6%) Sales $562 Segment $90 $90 $475 $460 $73 Q2'19 Q2'20A Q2'21A
Slide 5: Improving Trends in Q2 Results
IMPROVING TRENDS IN Q2 RESULTS SAMPLING EVENT COUNT • Strengthening recovery in Marketing segment − In-store sampling recovering at key retailer partners +22% Q/Q − Click-and-collect sampling supporting consumer omnichannel shift • Continued strength in Sales segment Jan Feb Mar Apr May Jun Jul Aug
Slide 6: Pillars of Our Strategy for Value Creation
PILLARS OF OUR STRATEGY FOR VALUE CREATION • Operate with excellence by serving existing clients well and delivering productivity through continuous improvement • Invest wisely in talent, technology and capability to support clients’ evolving needs through attractive opportunities for − Organic rein
Slide 7: Financial Performance
FINANCIAL PERFORMANCE
Slide 8: Financial Summary
FINANCIAL SUMMARY Q3 Q4 Q1 Q2 ($ in millions) 2020A 2019A % 2020A 2019A % 2021A 2020A % 2021A 2020A % Total Advantage Revenues $784 $982 (20%) $850 $1,013 (16%) $791 $879 (10%) $850 $642 32% Adjusted EBITDA 136 145 (6%) 133 144 (8%) 111 106 5% 122 112 9% % margin 17.4% 14.8% 15.6% 14.2% 14.1% 12.1%
Slide 9: Capitalization Summary
CAPITALIZATION SUMMARY • Q2 2021 Total Debt of $2.1 billion(1) − Leverage at around 3.9x net debt(1) to LTM June Adjusted EBITDA − No meaningful maturities for the next five+ years $1,325 (4) • Q2 2021 Debt Capitalization: Maturity Rate Outstanding $775 Asset-backed Revolver ($400M) 2025 L+2.25%(2)
Slide 10: Outlook
OUTLOOK Raising FY2021 Outlook: • FY 2021 Adjusted EBITDA of $520-530 million • Continued investment in recruiting, training and retaining talent in a still-constrained labor market • Continued post-COVID normalization in 2H 2021 • Net Debt / Adjusted EBITDA trending downwards in 2021, toward 3.0x b
Slide 11: Thank You
THANK YOU
Slide 12: Non-GAAP Reconciliation for Adjusted EBITDA (1/3)
NON-GAAP RECONCILIATION FOR ADJUSTED EBITDA (1/3) Consolidated Three Months Ended June 30, 2021 2020 (in thousands) Net income (loss) $ 5,754 $ (37,814) Add: Interest expense, net 37,189 51,521 Provision for income taxes 6,563 (13,704) Depreciation and amortization 62,674 58,748 Equity based compens
Slide 13: Non-GAAP Reconciliation for Historical Periods (2/3)
NON-GAAP RECONCILIATION FOR HISTORICAL PERIODS (2/3) Three Months Ended June 30, 2021 2020 (in thousands) Net income (loss) $ 5,754 $ (37,814) Less: Net loss attributable to noncontrolling interest (367) (410) Add: Equity based compensation of Topco and Advantage Sponsors’ management fee(1) (1,642)
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) Equity based compensation of Karman Topco L.P. and Advantage’s private equity sponsors’ management fee. (2) Represents non-cash compe