Q1'25 Earnings May 12, 2025 Disclaimer Forward-Looking Statements Certain statements in this presentation may be considered forward-looking statements within the meaning of the federal securities laws, including statements regarding the expected future performance of Advantage's business and projected financial results. Forward-looking statements generally relate to future events or Advantage's future financial or operating performance. These forward-looking statements generally are identified by the words ...

Financial Performance - Revenues for Q1 2025 were $822 million, a decline of 5% from $861 million in Q1 2024[3] - Net loss for Q1 2025 was $56 million, compared to a net loss of $50 million in the same period last year, representing a 12% increase in losses[3] - Adjusted EBITDA decreased by 18% to $58 million, with an adjusted EBITDA margin of 7.1%, down from 8.2% in Q1 2024[5][6] - Revenues for Q1 2025 were $821,792, a decrease of 4.6% compared to $861,412 in Q1 2024[34] - Operating loss from continuing operations was $14,621, improved from a loss of $29,950 in Q1 2024[34] - Net loss from continuing operations was $56,130, compared to a loss of $50,133 in the same period last year[34] - Adjusted EBITDA from continuing operations decreased to $58,181, down 17.6% from $70,639 in Q1 2024[41] - Basic loss per common share from continuing operations was $(0.17), compared to $(0.16) in Q1 2024[34] - The company reported a net loss of $377,785,000 for the twelve months ended March 31, 2025[53] Revenue Breakdown - Branded Services revenue fell by 11.9% to $289.8 million, while Experiential Services revenue increased by 2.2% to $314 million[10] - Branded Services segment Adjusted EBITDA for Q1 2025 was $27,945,000, down 18.4% from $34,334,000 in Q1 2024[44] - Experiential Services segment Adjusted EBITDA for Q1 2025 was $12,069,000, a decrease of 27.5% compared to $16,692,000 in Q1 2024[44] - Retailer Services segment reported an operating income of $4,205,000 in Q1 2025, a significant improvement from an operating loss of $4,190,000 in Q1 2024[44] Cash Flow and Liquidity - Cash and cash equivalents decreased to $121,149 from $205,233 at the end of 2024, a decline of 41%[36] - Net cash used in operating activities was $39,627, compared to $9,376 in Q1 2024, indicating increased cash outflow[39] - The company reported a net cash used in financing activities of $22,139, compared to $66,882 in Q1 2024, showing a significant reduction in cash outflow[39] - Adjusted Unlevered Free Cash Flow for Q1 2025 was $(7,071,000), with Adjusted EBITDA from Continuing and Discontinued Operations at $58,181,000[50] Debt and Capital Expenditures - The company reported a gross debt of approximately $1.698 billion and cash and cash equivalents of around $121 million[12] - The net leverage ratio stood at 4.4x as of March 31, 2025[12] - Total Net Debt as of March 31, 2025, was $1,557,381,000, with a Net Debt to LTM Adjusted EBITDA ratio of 4.4x[50] - Total debt as of March 31, 2025, was $1,678,530,000, after accounting for debt issuance costs[50] - Capital expenditures for Q1 2025 were approximately $15 million, with voluntary share repurchases totaling about $1 million[12] - The company is focused on disciplined capital allocation, including voluntary debt repurchases of approximately $20 million[7] Guidance and Future Outlook - The company plans to lower its fiscal year 2025 revenue guidance to a low single-digit decline or flat, down from a prior expectation of low single-digit growth[14] - The decline in revenues was attributed to intentional client exits, transformation spending, and labor shortages affecting order volumes[7] Asset and Liability Changes - Total assets decreased to $3,013,353 from $3,106,517, reflecting a reduction of 3%[36] - Total liabilities decreased to $2,317,778 from $2,357,782, a reduction of 1.7%[36] Other Expenses - Cash payments for restructuring expenses in Q1 2025 totaled $7,496,000[50] - The company incurred $3,473,000 in acquisition and divestiture related expenses for the twelve months ended March 31, 2025[53] - Depreciation and amortization for the Branded Services segment was $31,462,000 in Q1 2025, slightly down from $31,987,000 in Q1 2024[44]

Group 1 - Advantage Solutions Inc. will release its financial results for the first quarter on May 12, 2025, at 7 a.m. EDT, followed by a conference call at 8:30 a.m. EDT [1] - The conference call can be accessed via phone or through a webcast on the company's Investor Relations website [2][3] - The company is a leading omnichannel retail solutions agency in North America, focusing on consumer-packaged goods (CPG) brands and retailers [4] Group 2 - Advantage Solutions utilizes data- and technology-powered services to help brands and retailers generate demand and enhance consumer access to products [4] - The company has a presence throughout North America and strategic investments in select international markets [4]

Financial Data and Key Metrics Changes - In Q4 2024, revenues were $762 million, down 3% year-over-year, while adjusted EBITDA increased by 9% to $95 million, reflecting improved cost discipline and efficiency [10] - For the full year 2024, revenues totaled $3 billion, flat compared to the previous year, and adjusted EBITDA reached $356 million, up 1% [11] - A nearly 2% revenue drag was noted for both the fourth quarter and full year due to intentional client exits [12] Business Line Data and Key Metrics Changes - Branded Services revenues decreased by approximately 4% to $1.1 billion, with adjusted EBITDA down 11% to $181 million [39] - Experiential Services saw revenues increase by approximately 11% to $945 million, with adjusted EBITDA rising 43% to $76 million [41] - Retailer Services revenues declined by 2% to $965 million, while adjusted EBITDA increased by approximately 3% to $99 million [43] Market Data and Key Metrics Changes - The macro environment in 2024 saw increased value-seeking shopping behavior, benefiting club stores and mass merchandisers at the expense of regional grocery channels [12] - Consumer debt levels are rising, which may pressure spending habits further in 2025 [13] - CPG companies and retailers are addressing muted growth through innovation and price promotions, impacting overall performance [14] Company Strategy and Development Direction - The company is focused on a multi-year transformation to improve operating efficiency and strengthen business fundamentals [9] - Plans for 2025 include implementing systems and processes to enhance decision-making and client service delivery, with a focus on technology and labor utilization [18] - The company aims to expand its services across market channels and adjacencies to pursue future growth [34] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, noting uncertainty due to tariffs and consumer spending patterns [60][64] - The company anticipates low single-digit revenue and adjusted EBITDA growth in 2025, influenced by the subdued CPG environment [35] - Management is confident in the company's ability to achieve accelerated, sustainable long-term growth despite current challenges [56] Other Important Information - The company completed several divestitures to focus on core capabilities and established centralized shared services for better support [15] - A new chief of workforce operations has been appointed to enhance labor utilization and employee experience [24] - The company is investing in technology and data architecture to improve operational efficiency and client service [19][22] Q&A Session Summary Question: Insights on the macro environment and tariffs - Management noted that tariffs are generating uncertainty in the market, with companies in a wait-and-see mode regarding their business strategies [60][64] Question: Achievability of new logo wins in the current environment - Management indicated that there are opportunities for new business development despite the challenging environment, particularly in retailer and experiential services [68][70] Question: Headwinds affecting branded services and outlook for 2025 - Management acknowledged ongoing headwinds but expressed optimism about the potential for new business and incremental services to drive growth [78][82] Question: Anticipation of further client exits in 2025 - Management does not foresee any intentional client exits moving into 2025, having addressed unique circumstances from previous exits [89]

Financial Data and Key Metrics Changes - In Q4 2024, revenues were $762 million, down 3% year-over-year, while adjusted EBITDA increased by 9% to $95 million, reflecting improved cost discipline and efficiency [10] - For the full year 2024, revenues totaled $3 billion, flat compared to the previous year, and adjusted EBITDA reached $356 million, up 1% [11] - A nearly 2% drag on revenues for both the fourth quarter and full year was attributed to intentional client exits [12] Business Line Data and Key Metrics Changes - Branded Services revenues decreased by approximately 4% to $1.1 billion, with adjusted EBITDA down 11% to $181 million [39] - Experiential Services saw revenues of $945 million, an increase of approximately 11%, with adjusted EBITDA rising 43% to $76 million [41] - Retailer Services revenues declined by 2% to $965 million, while adjusted EBITDA increased by approximately 3% to $99 million [43] Market Data and Key Metrics Changes - The macro environment in 2024 saw increased value-seeking shopping behavior, benefiting club stores and mass merchandisers at the expense of regional grocery channels [12] - Consumer debt levels are rising, which may pressure spending habits further in 2025 [13] - CPG companies and retailers are addressing muted growth through innovation and price promotions, impacting overall performance [14] Company Strategy and Development Direction - The company is focused on a multi-year transformation to improve operating efficiency and strengthen business fundamentals [9][55] - Plans for 2025 include implementing systems and infrastructure to enhance decision-making and client service delivery [18] - The company aims to optimize technology and labor utilization while continuing to invest in data architecture and cloud capabilities [19][22] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about navigating the current macroeconomic challenges and emphasized the importance of cost discipline [12][56] - The company anticipates low single-digit revenue and adjusted EBITDA growth in 2025, influenced by the subdued CPG environment [35] - Management highlighted the potential for new business wins and incremental services despite the challenging market conditions [70] Other Important Information - The company completed several divestitures to focus on core capabilities and established centralized shared services for better support [15] - A new chief of workforce operations has been appointed to enhance labor utilization and employee experience [24] - The company expects adjusted unlevered free cash flow to be over 50% of adjusted EBITDA in 2025, influenced by one-time items [51] Q&A Session Summary Question: Insights on the macro environment and tariffs - Management noted that the current environment is generating uncertainty, with potential impacts from tariffs affecting various categories [60][64] Question: Achievability of new logo wins in the current environment - Management expressed optimism about the pipeline for new logos and incremental services, particularly in constrained labor markets [68][70] Question: Headwinds affecting branded services and outlook for 2025 - Management acknowledged ongoing headwinds but emphasized the potential for growth through new business and improved operational efficiency [74][78] Question: Anticipation of further client exits in 2025 - Management does not foresee any intentional client exits moving into 2025, having addressed unique circumstances from the previous year [89]

Core Insights - Advantage Solutions Inc. has appointed Dean General as the new Chief Operating Officer of its Branded Services business unit, effective March 24, 2025, replacing Jack Pestello who is leaving to pursue new opportunities [1][2]. Company Leadership Transition - Dean General brings over 30 years of experience in the consumer goods industry and will oversee the business unit that serves as a strategic extension for consumer-packaged goods companies [2][4]. - Jack Pestello, who joined Advantage in 2023, played a key role in the company's transformation and operational streamlining [7]. Strategic Focus and Goals - General will lead efforts to leverage Advantage's retail connectivity, technology, and network scale to enhance productivity and drive growth for clients [3][4]. - The company aims to provide value-added services that include selling to retailers, retail merchandising, and omnichannel marketing [2][3]. Background of New COO - Prior to joining Advantage, General held significant roles at Henkel Consumer Brands and Treehouse Foods, focusing on commercial transformation and profitable revenue growth [4][5]. - General holds a Bachelor of Science degree in business from Rider University and an Executive Scholar credential from Northwestern University's Kellogg School of Business [6]. Company Overview - Advantage Solutions is a leading omnichannel retail solutions agency in North America, positioned at the intersection of consumer-packaged goods brands and retailers [8]. - The company utilizes data and technology-powered services to help brands and retailers generate demand and optimize their operations [8].

Indebtedness and Credit Facilities - As of December 31, 2024, the company had total indebtedness of $1.7 billion, excluding debt issuance costs, and $44.1 million in letters of credit outstanding[159] - The company could incur an additional $455.9 million under its revolving credit facility, subject to covenant compliance[160] - The company’s credit ratings may impact borrowing costs and access to capital markets, with potential downgrades posing risks to liquidity and capital position[161] - The company’s variable rate indebtedness exposes it to interest rate risk, which could significantly increase debt service obligations if interest rates rise[162] Foreign Exchange and Interest Rate Exposure - A 10% unfavorable change in foreign exchange rates could increase the company's consolidated loss before taxes by approximately $3.5 million for the year ended December 31, 2024[379] - The company has interest rate collar contracts with an aggregate notional value of $850.0 million to manage exposure to interest rate movements[382] - A change of one-eighth percentage point in the weighted average interest rate above the floor of 0.75% would have resulted in an increase of $0.8 million in interest expense for the year ended December 31, 2024[383] Legal and Regulatory Risks - The company is subject to various litigation and regulatory proceedings that could adversely affect its financial results[164] - Increased costs associated with being a public company include legal, accounting, and insurance expenses, which were not incurred as a private company[167] Shareholder Impact - The company may issue additional shares or convertible securities, which could result in ownership dilution for existing shareholders[170]

FY 2024 Earnings March 7, 2025 Disclaimer Forward-Looking Statements Certain statements in this presentation may be considered forward-looking statements within the meaning of the federal securities laws, including statements regarding the expected future performance of Advantage's business and projected financial results. Forward-looking statements generally relate to future events or Advantage's future financial or operating performance. These forward-looking statements generally are identified by the wor ...

Revenue Performance - Revenues for Q4 2024 were $892.3 million, a decrease of 10.0% compared to $991.9 million in Q4 2023[3] - Full year revenues for 2024 totaled $3,566.3 million, down 8.6% from $3,900.1 million in 2023[3] - Total revenues for the year ended December 31, 2024, were $3,566.3 million, a decrease from $3,900.1 million in 2023, representing a decline of approximately 8.6%[32] Net Loss and Financial Performance - The net loss for Q4 2024 was $177.9 million, compared to a net loss of $2.7 million in Q4 2023[3] - The full year net loss for 2024 was $378.4 million, significantly higher than the net loss of $81.2 million in 2023[3] - Net loss for the year was $(324.8) million, compared to a net loss of $(60.4) million in 2023, indicating a significant increase in losses[32] - Net loss from continuing operations for the year was $378,404, compared to a loss of $81,211 in 2023[37] - The company reported a basic loss per common share from continuing operations of $(1.18) for the year, compared to $(0.26) in 2023[32] Adjusted EBITDA - Adjusted EBITDA for Q4 2024 increased by 8.9% to $94.6 million, while for the full year it rose by 1.1% to $356.0 million[6] - Adjusted EBITDA from Continuing Operations for the fourth quarter was $(170.6) million, compared to $20.7 million in the same quarter of the previous year[32] - Adjusted EBITDA from continuing operations for the year was $356,014, slightly up from $352,248 in 2023[39] - The company reported a net loss of $324,770,000 for the year ended December 31, 2024, with total Adjusted EBITDA from continuing and discontinued operations at $374,373,000[58] Segment Performance - For the Branded Services segment, the Adjusted EBITDA for Q4 2024 was $55,470,000, an increase from $49,385,000 in Q4 2023, while the full year Adjusted EBITDA decreased to $181,465,000 from $203,683,000[41] - The Experiential Services segment reported an Adjusted EBITDA of $13,134,000 for Q4 2024, slightly down from $13,211,000 in Q4 2023, with a full year total of $53,003,000 compared to $75,697,000 in 2023[41] - The Retailer Services segment achieved an Adjusted EBITDA of $25,951,000 in Q4 2024, up from $24,229,000 in Q4 2023, and a full year total of $98,852,000, compared to $95,562,000 in 2023[43] - The Branded Services segment experienced an operating loss of $176,973,000 in Q4 2024, compared to an operating income of $15,586,000 in Q4 2023[41] - The Experiential Services segment reported an operating loss of $3,103,000 in Q4 2024, compared to an operating income of $845,000 in Q4 2023[41] - The Retailer Services segment's operating income increased to $9,479,000 in Q4 2024 from $4,231,000 in Q4 2023[43] Capital Expenditures and Debt - Capital expenditures for 2024 were approximately $55 million, with share repurchases totaling around $34 million[10] - The net leverage ratio as of December 31, 2024, was 4.0x[10] - The total net debt as of December 31, 2024, was $1,515,849,000, with a Net Debt to Adjusted EBITDA ratio of 4.0x[54] - The company is focused on disciplined capital allocation, including voluntary debt repurchases of approximately $158 million in 2024[6] Cash Flow and Assets - Cash and cash equivalents increased to $205,233, up 70% from $120,839 in 2023[34] - Net cash provided by operating activities was $93,095, down from $228,492 in 2023[37] - Total assets decreased to $3,106,517, down 18% from $3,779,323 in 2023[34] - Total current liabilities decreased to $460,062, down 15% from $541,297 in 2023[34] - Total equity attributable to stockholders decreased to $748,735, down 32% from $1,105,362 in 2023[34] - Cash, cash equivalents, and restricted cash at the end of the period totaled $220,751, up from $137,202 in 2023[37] Impairment and Restructuring - Impairment of goodwill and indefinite-lived assets amounted to $275,170, significantly higher than $43,500 in 2023[37] - The company incurred impairment charges of $275,170,000 related to goodwill and indefinite-lived assets for the year[58] - Cash paid for restructuring charges includes costs associated with the VERP and employee termination benefits related to the 2024 RIF, aimed at improving operational efficiencies[66] - Cash paid for various reorganization activities includes professional fees, lease exit costs, severance, and nonrecurring compensation costs[67] - Cash paid for costs associated with the Take 5 Matter primarily involves professional fees and other related costs[69] Other Financial Information - Interest expense for the year was $146.8 million, a decrease from $165.7 million in 2023[32] - The weighted-average number of common shares for the year was approximately 321.1 million, a slight decrease from 324.6 million in 2023[32] - The financials for the period from January 1, 2024, to December 31, 2024, are unaudited and include discontinued operations[69]

Core Insights - Advantage Solutions Inc. reported a significant decline in revenues and an increase in net loss for the year ended December 31, 2024, while achieving growth in Adjusted EBITDA [2][4][5] - The company is focused on transformation initiatives aimed at enhancing operational efficiencies and capabilities, with expectations for revenue and Adjusted EBITDA growth in 2025 [1][4] Financial Performance - For Q4 2024, total revenues were $892.3 million, a decrease of 10.0% from $991.9 million in Q4 2023, with a net loss of $177.9 million compared to a net loss of $2.7 million [2][3] - For the full year 2024, total revenues were $3,566.3 million, down 8.6% from $3,900.1 million in 2023, with a net loss of $378.4 million compared to a net loss of $81.2 million [2][3] - Adjusted EBITDA for Q4 2024 increased by 8.9% to $94.6 million, and for the full year, it rose by 1.1% to $356.0 million [5][3] Operational Highlights - The company achieved healthy profit performance in 2024 across its Experiential Services and Retailer Services segments while adjusting its Branded Services to align with market demand [5] - Advantage Solutions executed disciplined capital allocation strategies, including voluntary debt repurchases and share buybacks totaling approximately $158 million and $34 million, respectively [5] Future Outlook - Management anticipates growth in revenues and Adjusted EBITDA in 2025, indicating a positive outlook for the company's operational strategies and market positioning [1][4]