Slide 1: Advantage Solutions Q4 and FY 2020 Earnings Presentation
ADVANTAGE SOLUTIONS Q4 and FY 2020 Earnings Presentation March 16, 2021
Slide 2: Disclaimer: Forward Looking Statements
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 • We delivered in 2020, despite a tough operating environment • We are keeping our financial commitments -- financial results met or exceeded expectations • We are remaining disciplined and nimble as we manage through the remainder of the pandemic • We see steady recovery in COVID-impac
Slide 4: We Delivered in 2020, Despite a Tough Operating Environment
WE DELIVERED IN 2020, DESPITE A TOUGH OPERATING ENVIRONMENT Talented teams and our nimble operating platform allowed us to pivot quickly in response to COVID-19 headwinds and deliver results we’re proud of for all key stakeholders Clients Associates Capital Providers • Extraordinary associates helpe
Slide 5: We Are Keeping Our Financial Commitments
WE ARE KEEPING OUR FINANCIAL COMMITMENTS • Met or exceeded previously communicated FY’20 outlook • Expect a better FY’21 and are raising Adj. EBITDA outlook from $515 million to $515 to $525 million FY’20 FY’20 Outlook Performance Revenue Growth -17% -19% to -16% Adjusted EBITDA $487 $480 to $485 +
Slide 6: Q4 Results Reflect Continued Progress in Recovery
Q4 RESULTS REFLECT CONTINUED PROGRESS IN RECOVERY • Continued strength in Sales segment − Strong center-store / eat-at-home trends remain in place − E-commerce (on-line, click-and-collect) business gains continue − Foodservice channel remains softer but is recovering − European Joint Venture still p
Slide 7: Improving Trends Continued in Q4
IMPROVING TRENDS CONTINUED IN Q4 Revenues Adjusted EBITDA $ in millions. Sequential Improvement $ in millions. Y/Y growth 1% (30%) (20%) (16%) Y/Y growth 11% (6%) (6%) (8%) Total $879 $850 $136 $133 Advantage $784 $106 $112 $642 17.4% 15.6% % margin 12.1% 17.5% Q1'20A Q2'20A Q3'20A Q4'20A Q1'20A Q2'
Slide 8: We Thrive Based on Three Pillars of Value Creation
WE THRIVE BASED ON THREE PILLARS OF VALUE CREATION • Operate with excellence by serving existing clients well and delivering productivity through continuous improvement • Invest wisely in talent, technology and capability to support clients’ evolving needs through attractive opportunities for − Orga
Slide 9: Financial Performance
FINANCIAL PERFORMANCE
Slide 10: Financial Summary
FINANCIAL SUMMARY Q1 Q2 Q3 Q4 FY ($ in millions.) 2020A 2019A % 2020A 2019A % 2020A 2019A % 2020A 2019A % 2020A 2019A % Total Advantage Revenues $879 $869 1% $642 $922 (30%) $784 $982 (20%) $850 $1,013 (16%) $3,156 $3,785 (17%) Adjusted EBITDA 106 96 11% 112 119 (6%) 136 145 (6%) 133 144 (8%) 487 50
Slide 11: Capitalization Summary
CAPITALIZATION SUMMARY • Q4 2020 Total Debt outstanding of $2,154 million(1) after refinancing 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 4.0x Net Debt / FY 2020 Adjusted EBITDA of $487 million at yea
Slide 12: Fiscal Year 2021 Outlook
FISCAL YEAR 2021 OUTLOOK Revised FY 2021 Outlook (excluding future acquisitions): • Expecting COVID-related restrictions to continue through the first half of 2021 as vaccines are rolled out and COVID continues to limit activity • FY 2021 Adjusted EBITDA of $515 to $525 million, an increase to the $
Slide 13: Thank You
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Slide 14: 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 Three Months Ended Consolidated March 31, June 30, September 30, December 31, 2020 2019 2020 2019 2020 2019 2020 2019 Total Company (in thousands) Net income (loss) $ (21,723) $ (44,195) $ (37,
Slide 15: Non-GAAP Reconciliation for Historical Periods (2/3)
NON-GAAP RECONCILIATION FOR HISTORICAL PERIODS (2/3) Three Months Ended Three Months Ended Three Months Ended Three Months Ended March 31, June 30, September 30, December 31, 2020 2019 2020 2019 2020 2019 2020 2019 Adjusted Net Income (in thousands) Net income (loss) $ (21,723) $(44,195) $ (37,814)
Slide 16: Non-GAAP Reconciliation for Historical Periods (3/3)
NON-GAAP RECONCILIATION FOR HISTORICAL PERIODS (3/3) Note: Numerical figures included in this slide have been subject to rounding adjustments (1) Historical management fees paid to existing shareholders, non-cash stock based compensation expense associated with partnership units, and non-recurring a