Slide 1: Advantage Solutions Inc. Earnings Presentation
ADVANTAGE SOLUTIONS INC. Earnings Presentation August 4, 2023
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: Q2 Key Messages
Q2 KEY MESSAGES • Strong quarterly revenues of $1 billion, an increase of approximately 6% year-over-year • Slow improvements in macroeconomic environment • Moderating inflationary rates, despite continued tightness in labor supply • Made approximately 1,000 net new hires in the quarter • Generated
Slide 4: Q2 Financial Results
Q2 FINANCIAL RESULTS Revenues Adjusted EBITDA $ in millions. $ in millions. 6% Y/Y growth Y/Y growth (4)% $1,037 $981 $20 0 $18 0 $16 0 Total $14 0 $12 0 $104 $108 Advantage $10 0 $80 $60 $40 % margin $20 10.0% 11.0% $- Q2'23A Q2'22A Q2'23A Q2'22A Y/Y growth Y/Y growth (11)% (1)% $20 0 $18 0 $16 0 S
Slide 5: Healthy Revenue Trends Across Segments in Q2
HEALTHY REVENUE TRENDS ACROSS SEGMENTS IN Q2 • Increase in retail merchandising services, I N - S T OR E S A M P LI N G A N D realization of pricing and growth in European D E M O N S TR A T I ON E V E N T C O U N T joint venture Sales Segment • Completed divestiture of third-party reselling busines
Slide 6: Capitalization Summary
CAPITALIZATION SUMMARY • Total Debt of $2.0 billion(1) − Leverage at around 4.3x net debt(1) to LTM June Adjusted EBITDA − No meaningful maturities for the next 4+ years • Debt Capitalization: $ in millions Maturity Rate Outstanding (3) $1,738 First Lien Term Loan 2027 S+4.50%(2) $1,238 $500 Senior
Slide 7: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 8: Non-GAAP Reconciliation (1/6)
NON-GAAP RECONCILIATION (1/6) Three Months Ended Consolidated June 30, 2023 2022 Total Company (in thousands) Net (loss) income $ (7,846) $ 3,676 Add: Interest expense, net 30,459 28,188 (Benefit from) provision for income taxes (416) 1,316 Depreciation and amortization 56,738 58,444 Equity based co
Slide 9: Non-GAAP Reconciliation (2/6)
NON-GAAP RECONCILIATION (2/6) Three Months Ended June 30, 2023 2022 Sales Segment (in thousands) Operating income $ 7,123 $ 15,177 Add: Depreciation and amortization 39,390 40,543 Equity based compensation of Topco(1) (580) (2,032) Stock based compensation expense(2) 6,313 9,171 Fair value adjustmen
Slide 10: Non-GAAP Reconciliation (3/6)
NON-GAAP RECONCILIATION (3/6) Three Months Ended Consolidated September 30, December 31, March 31, June 30, 2022 2022 2023 2023 Total Company (in thousands) Net (loss) income $ 23,227 $ (1,421,729) $ (47,678) $ (7,846) Add: Interest expense, net 23,557 40,831 47,191 30,459 Provision for (benefit fro
Slide 11: Non-GAAP Reconciliation (4/6)
NON-GAAP RECONCILIATION (4/6) Six months Three months Three months Six months Three months Three months Ended Ended Ended Ended Ended Ended June 30, June 30, March 31, June 30, June 30, March 31, 2023 2023 2023 2022 2022 2022 (in thousands) Net cash provided by (used in) operating activities $ 104,9
Slide 12: Non-GAAP Reconciliation (5/6)
NON-GAAP RECONCILIATION (5/6) June 30, December 31, June 30, (in millions) 2023 2022 2022 Current portion of long-term debt $ 15.5 $ 14.0 $ 59.8 Long-term debt, net of current portion 1,966.2 2,022.8 2,026.0 Less: Debt issuance costs (38.1) (42.4) (45.4) Total Debt 2,019.8 2,079.2 2,131.2 Less: Cash
Slide 13: Non-GAAP Reconciliation (6/6)
NON-GAAP RECONCILIATION (6/6) 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 equity hol
Slide 14: Thank You
Thank You