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]

Company Overview - Advantage Solutions Inc. is the leading omnichannel retail solutions agency in North America, positioned at the intersection of consumer-packaged goods (CPG) brands and retailers [4] - The company utilizes data- and technology-powered services to provide insights and expertise, helping brands and retailers generate demand and distribute products effectively [4] - Advantage Solutions operates throughout North America and has strategic investments and owned operations in select international markets [4] Upcoming Financial Results - Advantage Solutions will release its financial results for the fourth quarter and full year on March 7, 2025, at 7 a.m. ET [1] - A conference call will follow at 8:30 a.m. ET on the same day to discuss the results [1] Conference Call Details - The conference call can be accessed by dialing 1-800-225-9448 for domestic callers and 1-203-518-9708 for international callers, with the conference ID being ADVQ4 [2] - A replay of the call will be available three hours after it concludes, accessible by dialing 1-844-512-2921 for domestic and 1-412-317-6671 for international callers, with a passcode of 11158219 [2] - The replay will be available until March 14, 2025 [2] Webcast Information - Interested parties can also listen to a simultaneous conference call webcast via the Investor Relations section of the Advantage Solutions website [3] - An online replay will be available shortly after the call for a limited time [3]

Company Announcement - Advantage Solutions Inc appoints George Johnson as chief workforce operations officer, effective Dec 31 [1] - Johnson will join the executive leadership team and report to CEO Dave Peacock [1] Leadership Perspective - CEO Dave Peacock highlights Johnson's expertise in driving field execution and efficiency, enhancing teammate experience, and improving retention [2] - Johnson expresses enthusiasm for joining a company with a meaningful mission and 70,000 teammates [2] Role and Responsibilities - Johnson will oversee workforce strategy for frontline workers, including talent acquisition, workforce enablement, and safety [4] - He will lead efforts to enhance talent assignment and deployment in over 100,000 retail stores served annually [4] Professional Background - Johnson previously served as president of Sysco Corp's Carolinas region and held leadership roles at Aramark and Aramark Healthcare [5] - His initiatives at Aramark significantly improved operational performance and teammate satisfaction [5] Company Overview - Advantage Solutions is a leading omnichannel retail solutions agency in North America, positioned at the intersection of CPG brands and retailers [7] - The company leverages data and technology to help brands and retailers generate demand and optimize consumer experiences [7] - Advantage has offices throughout North America and strategic investments in select international markets [7]

Core Insights - Advantage Solutions Inc. has been recognized as one of Chief Marketer's 2025 Top Agencies of the Year, highlighting its leadership in omnichannel marketing services [1][5] - The company has transformed its operations under a 'One Advantage' model to enhance support for retailers and consumer packaged goods (CPG) brands [1][2] - Advantage serves over 4,000 clients across more than 100,000 retail locations in the U.S. and Canada, affirming its extensive reach in the market [1] Company Achievements - Advantage is the No. 1 global provider of experiential marketing services, offering a variety of omnichannel solutions including in-store sampling, online order sampling, and digital engagement [2][3] - The company has received multiple industry recognitions, including being ranked the 16th largest agency worldwide and the 7th largest in North America according to the 2024 Ad Age Agency Report [5] - Advantage Unified Commerce (AUC) is recognized as Amazon's largest full-service partner and has received Amazon's Gold Tier recognition for excellence [3] Additional Honors - Amp, one of Advantage's omnichannel marketing agencies, has also been recognized by Chief Marketer, showcasing the company's diverse expertise across various marketing sectors [4][6] - The agency has won multiple awards in 2024, including accolades from the Shorty awards, Davey awards, Muse awards, Hermes awards, and Merit awards [6] Company Overview - Advantage Solutions is positioned at the intersection of CPG brands and retailers, leveraging data and technology to drive demand and facilitate product availability [7] - The company focuses on creating impactful experiences both in-store and online, optimizing merchandising, and enhancing e-commerce capabilities [7]

ST. LOUIS, Dec. 19, 2024 (GLOBE NEWSWIRE) -- Advantage Solutions Inc. (NASDAQ: ADV), a leading provider of business solutions to consumer goods manufacturers and retailers, has been named to Chief Marketer’s 2025 Top Agencies of the Year, an honor that recognizes the “best and brightest across all agency types and channels.”  In recognizing Advantage, Chief Marketer, a leading information hub that serves Fortune 1000 marketers, noted how the organization recently “transformed its business, aligning teams, o ...

Core Insights - Advantage Solutions Inc. has announced strategic partnerships with Feeding America and the Urban League of Metropolitan St. Louis, involving a total investment exceeding $750,000 to enhance community engagement and support food security and economic mobility initiatives [2][4][10] Group 1: Partnership with Feeding America - The partnership includes a commitment to donate the equivalent of 2.5 million meals over two years, amounting to a total investment of $250,000 to the Food Security Equity Impact Fund [5][6] - Feeding America addresses food insecurity, with over 47 million Americans affected, including one in five children, aiming to improve access to food nationwide [6][7] - Advantage Solutions has contributed over 4.1 million meals since 2012, reinforcing its long-standing relationship with Feeding America [6] Group 2: Partnership with the Urban League - Advantage Solutions will donate $500,000 over the next five years to support the Urban League's Save Our Sisters program, which provides comprehensive services for women [8][10] - The program focuses on various areas including employment, education, and financial literacy, aiming to empower women from diverse backgrounds [8][11] - Advantage will also engage in career fairs organized by the Urban League to facilitate professional development opportunities [9][10] Group 3: Community Engagement and Corporate Strategy - The partnerships align with Advantage's Belonging & Impact strategy, which emphasizes diversity, equity, inclusion, community engagement, and environmental, social, and governance commitments [4] - Advantage Solutions plans to enhance its impact through employee volunteering initiatives, launching regional engagement committees in 2025 [12]

Financial Performance - Revenues for the three months ended September 30, 2024 decreased by $80.4 million, or 7.9%, to $939.3 million compared to the same period in 2023[118]. - Operating income from continuing operations for the three months ended September 30, 2024 resulted in an operating loss of $3.2 million, a decrease of $9.9 million[118]. - Net loss from continuing operations increased by $7.7 million to $37.3 million for the three months ended September 30, 2024[118]. - Revenues for the nine months ended September 30, 2024 decreased by $234.2 million, or 8.1%, to $2,674.0 million compared to the same period in 2023[119]. - Adjusted Net Income for the nine months ended September 30, 2024 increased by $9.1 million, or 14.2%, to $54.9 million[119]. - Adjusted Net Income decreased by $3.9 million, or 1.5%, to $261.5 million for the nine months ended September 30, 2024, from $265.4 million in the prior year[194]. - Adjusted Net Income for September 2024 was $23,667,000, a decrease from $24,775,000 in September 2023, representing a decline of 4.5%[197]. - The company reported a net loss of $37,320,000 for the three months ended September 2024, compared to a net loss of $29,632,000 for the same period in 2023, indicating a worsening of 25.5%[203]. Segment Performance - The Branded Services segment generated approximately 36.8% of revenues in the nine months ended September 30, 2024, down from 45.6% in the same period of 2023[114]. - The Experiential Services segment generated approximately 36.3% of revenues in the nine months ended September 30, 2024, up from 29.3% in the same period of 2023[116]. - The Retailer Services segment generated approximately 27.0% of revenues in the nine months ended September 30, 2024, compared to 25.1% in the same period of 2023[117]. - The Branded Services segment experienced a revenue decrease of $15.0 million, primarily due to an intentional client resignation and a weaker economic environment[160]. - The Experiential Services segment saw an increase in revenues of $34.4 million, or 11.1%, primarily due to a rise in events per day volume[160]. - Branded Services segment revenues fell by $344.4 million, or 25.9%, to $982.8 million for the nine months ended September 30, 2024, largely due to an intentional client resignation[177]. - Experiential Services segment revenues increased by $118.9 million, or 14.0%, to $969.6 million for the nine months ended September 30, 2024, driven by higher event volumes[178]. Cost and Expenses - Adjusted EBITDA from Continuing Operations for the nine months ended September 30, 2024 decreased by $3.9 million, or 1.5%, to $261.5 million[119]. - Cost of revenues as a percentage of total revenues improved to 84.6% for the three months ended September 30, 2024, down from 87.5% in the prior year, attributed to changes in revenue mix and decreased incentive compensation expenses[162]. - Selling, general, and administrative expenses increased to 10.5% of revenues for the three months ended September 30, 2024, compared to 6.7% in the same period last year, driven by costs related to internal reorganization and restructuring activities[163]. - Cost of revenues as a percentage of revenues improved to 85.9% for the nine months ended September 30, 2024, down from 87.8% in the prior year[179]. - Selling, general, and administrative expenses as a percentage of revenues increased to 9.4% for the nine months ended September 30, 2024, compared to 5.9% in the same period of 2023[180]. Restructuring and Impairment - The Company recognized a non-cash goodwill impairment charge of $99.7 million related to the Branded Agencies reporting unit during the nine months ended September 30, 2024[137]. - A restructuring plan was announced in July 2024, aimed at improving cost structure and operational efficiency, expected to be substantially completed by the end of 2024[152]. - The Company incurred $18.6 million and $74.0 million in reorganization expenses during the three and nine months ended September 30, 2024, respectively, compared to $21.4 million and $38.3 million in the same periods of 2023[153]. - The company incurred reorganization expenses of $2,250,000 for the three months ended September 30, 2024, compared to $1,044,000 for the same period in 2023[204]. - A non-cash goodwill impairment charge of $99.7 million was recognized during the nine months ended September 30, 2024, impacting overall financial performance[182]. Cash Flow and Liquidity - The company’s principal sources of liquidity include cash flows from operations and borrowings under the Revolving Credit Facility, with cash primarily used for operating expenses and technology investments[143]. - Net cash provided by operating activities from continuing operations was $78,009,000 for the nine months ended September 30, 2024, compared to $172,576,000 for the same period in 2023[209]. - Net cash provided by investing activities from continuing operations was $211,427,000 for the nine months ended September 30, 2024, compared to a net cash used of $(10,256,000) for the same period in 2023[209]. - Net cash used in financing activities from continuing operations was $(207,122,000) for the nine months ended September 30, 2024, compared to $(115,170,000) for the same period in 2023[209]. - The company reported a net change in cash, cash equivalents, and restricted cash of $80,909,000 for the nine months ended September 30, 2024, compared to $47,805,000 for the same period in 2023[209]. - Existing domestic cash and cash flows from operations are expected to be sufficient to fund domestic operating activities for at least the next 12 months[239]. Debt Management - The Term Loan Facility has an aggregate principal amount of $1.1 billion, with borrowings amortizing at 1.00% per annum of the original issued amount of $1.3 billion[221]. - The Company voluntarily repurchased $127.9 million principal amount of its Senior Secured Notes during the nine months ended September 30, 2024, recognizing a gain of $8.6 million[228]. - The Revolving Credit Facility matures in December 2027 and provides for revolving loans and letters of credit up to $500.0 million[214]. - The Term Loan Facility bears interest at a floating rate of Term SOFR plus an applicable margin of 4.25% per annum[221]. - The Company recognized a gain of $0.5 million from repurchases of the Term Loan Facility during the nine months ended September 30, 2024[221]. Other Financial Metrics - Interest expense, net decreased by $3.3 million, or 7.8%, to $39.0 million for the three months ended September 30, 2024, primarily due to a lower debt balance from repurchases of Term Loan Facility and Senior Secured Notes[169]. - Interest expense decreased by $5.4 million, or 4.5%, to $114.5 million for the nine months ended September 30, 2024, due to lower debt balances[188]. - The company reported costs associated with COVID-19 of $0 for the three months ended September 2024, compared to $(49,000) in the same period of 2023, reflecting a reduction in pandemic-related expenses[197]. - The company recognized a goodwill impairment charge of $99.7 million related to the Branded Agencies reporting unit during the second quarter of fiscal year 2024[246]. - The company does not have any off-balance sheet financing arrangements or liabilities[240].

Financial Data and Key Metrics Changes - Revenues increased approximately 2% year-over-year to $802 million, while adjusted EBITDA increased 8% to $101 million [7][8] - Revenues for Branded Services declined 4% to $283 million, with adjusted EBITDA down 4% to $49 million [31] - Experiential Services saw a revenue increase of 12% to $254 million, with adjusted EBITDA growing 41% to $23 million [32] - Retailer Services revenues increased 2% to $265 million, with adjusted EBITDA up 11% to $29 million [32] - Total funded debt outstanding was approximately $1.7 billion, with nearly 91% hedged or at fixed interest rates [33] Business Line Data and Key Metrics Changes - Experiential Services and Retailer Services delivered healthy performance, contributing to revenue and adjusted EBITDA growth [8] - Branded Services faced challenges due to a tough consumer environment, impacting revenue performance [31] - Retailer Services focused on efficient execution and management of talent deployment, driving profitability [32] Market Data and Key Metrics Changes - The consumer environment remains mixed, with premium brands facing different realities compared to value brands [39] - Growth in private label space continues, while national brand space shows flat to slight decline [39] Company Strategy and Development Direction - The company is focused on expanding client relationships and enhancing service offerings through technology and analytics [10][19] - Transformation initiatives aim to improve operating efficiency and streamline processes [21][28] - The company is modernizing technology and forming strategic collaborations to enhance productivity [20][23] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer resilience based on recent economic data [40] - The company is not providing guidance for 2025 but acknowledges a mixed sentiment among clients [39] - Management is focused on better utilization of existing labor to improve efficiency [44] Other Important Information - The company repurchased approximately $80 million of notes and term loan debt at attractive discounts [33] - Adjusted unlevered free cash flow in Q3 was approximately $69 million, representing 67% of adjusted EBITDA [35] Q&A Session Summary Question: Client sentiment in the Branded segment for next year - Management noted a mixed bag of sentiments across different categories, with some optimism due to recent GDP growth data [39] Question: Performance of Experiential Services - Management indicated that Experiential Services are outperforming expectations, with events per day increasing year-over-year [41][43] Question: Wage growth and labor market expectations - Wage growth remains inflated but is returning to historic norms, with a focus on better labor utilization [44] Question: Impact of recent market consolidation on competition - Management has not seen specific impacts from recent competitor transactions, as integration periods are ongoing [48][49] Question: Pricing and labor spread - Management is approaching equilibrium with wage inflation moderating and pricing actions being implemented [51] Question: Promotions and their impact on business - Management noted fluctuating results in promotional activity, which can drive unit volume and is generally positive for the business [55] Question: Timing impact on Experiential and Retailer Services - Management acknowledged a timing benefit in Q3, with some activities shifting from Q4 [58] Question: New business sales growth and future impact - Management is pleased with new business development activity, particularly in private label and cross-selling initiatives [60] Question: Margin improvement in Branded Services despite revenue decline - Margin growth in Branded Services is attributed to labor efficiency and better deployment of technology [62]

Financial Performance - Revenues for 3Q'24 were $101 million, a decrease of 10% year-over-year, but with a 2% organic growth[6] - Adjusted EBITDA for 3Q'24 was $69 million, an increase of 8% year-over-year[6] - Adjusted Unlevered Free Cash Flow (FCF) conversion was 67% for 3Q'24[6] - Net Debt/LTM Adjusted EBITDA ratio was 3.9x[6] - The company paid down approximately $80 million of debt[7] Segment Performance - Branded Services revenues decreased by 4% excluding the impact of the deconsolidation of European JV in 4Q'23 and pass-through costs[25], with an Adjusted EBITDA margin of 172%[26] - Experiential Services revenues increased by 12% excluding pass-through costs[28], with Adjusted EBITDA up 41%[28] and an Adjusted EBITDA margin of 92%[28] - Retailer Services revenues increased by 2%[30], with Adjusted EBITDA up 11%[30] and an Adjusted EBITDA margin of 109%[30] Balance Sheet and Capital Allocation - Total Net Debt was $1528 billion as of September 30, 2024[33] - Cash balance of $196 million[39] - Voluntary debt repurchases year-to-date through 9/30/24 totaled $158 million (face value)[39] - Share repurchases in 3Q'24 amounted to approximately $13 million / 35 million Shares[39] Outlook - The company reaffirmed its 2024 guidance, expecting low single-digit revenue and Adjusted EBITDA growth[18] - Adjusted Unlevered FCF conversion is expected to be at the high end of the guidance range of 55%-65% of Adjusted EBITDA[41]