Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Advantage Solutions (ADV) is a business solutions provider for consumer goods manufacturers and retailers. The Zacks Consensus Estimate for its current year earnings has been revised almost 12.8% downward over the last 60 days.ALLIENT INC (ALNT) designs, manufactures, and sells precision and specialty-controlled motion components and systems. The Zacks Consensus Estimate for its current year earnings has been revised 18.9% downward ov ...

ST. LOUIS, June 18, 2024 (GLOBE NEWSWIRE) -- Advantage Solutions Inc. (NASDAQ: ADV), a leading business solutions provider to consumer goods manufacturers and retailers, today announced it has entered into an agreement to sell its digital advertising platform Jun Group to Verve Group SE, a Swedish digital advertising company formerly known as Media and Games Invest SE. Gross proceeds from the sale are expected to be approximately $185 million, the majority of which will be received in cash at closing. The t ...

ST. LOUIS, June 18, 2024 (GLOBE NEWSWIRE) -- Advantage Solutions Inc. (NASDAQ:ADV), a leading business solutions provider to consumer goods manufacturers and retailers, today announced it has entered into an agreement to sell its digital advertising platform Jun Group to Verve Group SE, a Swedish digital advertising company formerly known as Media and Games Invest SE. Gross proceeds from the sale are expected to be approximately $185 million, the majority of which will be received in cash at closing. The tr ...

ST. LOUIS and LOS ANGELES, June 11, 2024 (GLOBE NEWSWIRE) -- Advantage Solutions Inc. (NASDAQ:ADV), a leading business solutions provider to consumer goods manufacturers and retailers, and L.A. Libations, a leading consumer packaged goods innovator, incubator and accelerator, today announced they have signed a letter of intent to form a joint venture that will bring the full power of Advantage's suite of services on a national scale to emerging consumer packaged goods and beverage brands. The proposed joint ...

Core Insights - Advantage Solutions Inc. has sold Strong Analytics to OneSix, a move aimed at simplifying its business and focusing on core capabilities [1][2] - The sale is part of Advantage's broader growth acceleration plan, which includes reinvesting proceeds into the business and reducing debt to achieve a net-debt-to-adjusted-EBITDA ratio of less than 3.5 times [2] Company Strategy - The CEO of Advantage Solutions emphasized that this transaction is a step towards sharpening the company's focus on its core capabilities [2] - The company has been actively simplifying its portfolio, which includes recent sales of other non-core assets such as Adlucent and The Data Council [3] Business Operations - Strong Analytics, acquired by Advantage in 2021, provided data science services primarily to industries outside of Advantage's main focus on retail and consumer packaged goods [1] - Advantage Solutions is positioned at the intersection of brands and retailers, offering a range of data- and technology-driven services to enhance sales and marketing efforts [4]

Advantage Solutions Inc. (ADV) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the s ...

Advantage Solutions Inc. (ADV) has been beaten down lately with too much selling pressure. While the stock has lost 16.8% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum osci ...

Earnings Presentation First Quarter 2024 May 8, 2024 Forward-Looking Statements Non-GAAP Measures & Other Performance Metrics Thispresentationmaycontain“forward-lookingstatements”withinthemeaningoftheU.S.PrivateSecurities To supplement the financial measures presented in our presentation and related conference call in accordance LitigationReformActof1995.Inthiscontext,forward-lookingstatementsgenerallyrelatetofutureeventsor withgenerallyacceptedaccountingprinciplesintheUnitedStates(“GAAP”),wealsopresentthef ...

Advantage Solutions Inc. (NASDAQ:ADV) Q1 2024 Earnings Conference Call May 9, 2024 8:30 AM ET Company Participants Ruben Mella - Vice President, Investment Relations Dave Peacock - Chief Executive Officer Chris Growe - Chief Financial Officer Sean Choksi - Senior Vice President, Strategy and M&A Conference Call Participants Pallav Saini - Canaccord Genuity Faiza Alwy - Deutsche Bank Operator Greetings. And welcome to the Advantage Solutions First Quarter 2024 Earnings Call. At this time, all participants ar ...

PART I—FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Advantage Solutions reported a Q1 2024 revenue decrease and net loss, significantly improved by a gain from discontinued operations [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $3.63 billion and total liabilities to $2.55 billion as of March 31, 2024, primarily due to debt reduction Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $112,293 | $120,839 | | Total current assets | $932,128 | $1,012,034 | | Goodwill | $833,491 | $833,491 | | Total assets | $3,634,072 | $3,779,323 | | Total current liabilities | $476,928 | $541,297 | | Long-term debt, net of current portion | $1,795,878 | $1,848,118 | | Total liabilities | $2,549,889 | $2,675,246 | | Total stockholders' equity | $1,084,183 | $1,104,077 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q1 2024 revenues decreased to $879.0 million, leading to an operating loss, but a significant gain from discontinued operations reduced the net loss Q1 2024 vs Q1 2023 Performance (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenues | $879,003 | $944,382 | | Operating (loss) income from continuing operations | $(26,762) | $6,744 | | Net loss from continuing operations | $(49,107) | $(34,370) | | Net income (loss) from discontinued operations | $45,992 | $(13,308) | | **Net loss** | **$(3,115)** | **$(47,678)** | | Basic net loss per common share | $(0.02) | $(0.15) | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity decreased to $1.084 billion due to a net loss of $3.1 million and $11.7 million in treasury stock purchases - Key drivers for the change in equity during Q1 2024 included a net loss of **$3.1 million** and the repurchase of treasury stock for **$11.7 million**[10](index=10&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 operating activities used cash, while divestitures provided $87.4 million, and financing used cash for debt and share repurchases Cash Flow Summary from Continuing Operations (in thousands) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(8,894) | $41,396 | | Net cash provided by (used in) investing activities | $68,715 | $(5,988) | | Net cash used in financing activities | $(66,882) | $(6,797) | - Investing activities were significantly impacted by **$87.4 million** in proceeds from divestitures in Q1 2024[12](index=12&type=chunk) - Financing activities in Q1 2024 included **$47.9 million** for repurchases of Senior Secured Notes and **$11.7 million** for the purchase of treasury stock[12](index=12&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail segment reorganization, a $91.0 million divestiture, debt repurchase, goodwill impairment risks, and April 2024 equity grants - Effective January 1, 2024, the company revised its reportable segments to **Branded Services**, **Experiential Services**, and **Retailer Services** to align with its business strategy[18](index=18&type=chunk)[68](index=68&type=chunk) - In January 2024, the company sold its foodservice businesses for approximately **$91.0 million**, recognizing a gain of **$56.6 million** These and other divested businesses are now presented as discontinued operations[34](index=34&type=chunk)[36](index=36&type=chunk) - The company voluntarily repurchased **$51.0 million** of its Senior Secured Notes during Q1 2024, recognizing a gain of **$2.7 million**[50](index=50&type=chunk) - Goodwill impairment tests as of January 1, 2024, indicated that the fair values of the Branded Agencies and Experiential Services reporting units exceeded their carrying values by **less than 20%**[20](index=20&type=chunk) - In April 2024, the company granted **5.3 million RSUs**, **1.1 million PSUs**, and **3.0 million stock options**[91](index=91&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 6.9% revenue decline to a European joint venture deconsolidation, with organic revenue growth of 3.0% and a widened operating loss [Executive Overview](index=33&type=section&id=Executive%20Overview) The company reorganized into three new segments, divesting non-core units to simplify its portfolio and focus on core services - Effective January 1, 2024, the company realigned into three reportable segments: **Branded Services**, **Experiential Services**, and **Retailer Services**[96](index=96&type=chunk) - The company has formally disposed of certain business units as part of a reorganization plan, with these units now classified as discontinued operations[97](index=97&type=chunk) [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Q1 2024 revenues decreased 6.9% to $879.0 million due to a European joint venture deconsolidation, with an increased operating loss from reorganization costs Revenue by Segment (in thousands) | Segment | Q1 2024 | Q1 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Branded Services | $344,529 | $444,862 | $(100,333) | (22.6%) | | Experiential Services | $307,351 | $257,167 | $50,184 | 19.5% | | Retailer Services | $227,123 | $242,353 | $(15,230) | (6.3%) | | **Total Revenues** | **$879,003** | **$944,382** | **$(65,379)** | **(6.9%)** | - Excluding the impact of the European joint venture deconsolidation and foreign exchange rates, total revenues increased by **3.0%**[132](index=132&type=chunk) - The increase in operating loss was primarily due to a **$26.0 million** increase in costs associated with internal reorganization activities, largely related to professional fees and severance[136](index=136&type=chunk)[144](index=144&type=chunk) - Net income from discontinued operations of **$46.0 million** was primarily driven by a **$56.7 million** gain on the divestiture of the foodservice businesses[145](index=145&type=chunk) [Non-GAAP Financial Measures](index=46&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted Net Income slightly increased to $14.9 million, but Adjusted EBITDA decreased 14.5% to $78.8 million due to lower revenues and wage inflation Adjusted EBITDA by Segment (in thousands) | Segment | Q1 2024 | Q1 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Branded Services | $41,400 | $61,193 | $(19,793) | (32.3%) | | Experiential Services | $17,125 | $6,862 | $10,263 | 149.6% | | Retailer Services | $20,235 | $24,015 | $(3,780) | (15.7%) | | **Total Adjusted EBITDA** | **$78,760** | **$92,070** | **$(13,310)** | **(14.5%)** | Reconciliation of Net Loss to Adjusted Net Income (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net loss | $(3,115) | $(47,678) | | Adjustments (Amortization, Reorganization, etc.) | $18,027 | $61,451 | | **Adjusted Net Income** | **$14,912** | **$13,773** | [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) Q1 2024 operating activities used cash, while divestitures provided $87.4 million, and financing used cash for debt and share repurchases - Principal uses of cash in Q1 2024 included repurchases of Senior Secured Notes (**$47.9 million**), share repurchases (**$11.7 million**), and principal payments on the Term Loan Facility (**$3.3 million**)[171](index=171&type=chunk) - As of March 31, 2024, the company had **$1.1 billion** outstanding under its Term Loan Facility and **$692.0 million** under its Senior Secured Notes[48](index=48&type=chunk) - The company has access to a **$500.0 million** Revolving Credit Facility, with full capacity available as of March 31, 2024, subject to borrowing base limitations and outstanding letters of credit[174](index=174&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency and interest rate fluctuations, mitigated by derivative instruments, with minimal impact from hypothetical changes - The company's main foreign currency exposure is to the **Canadian dollar**[205](index=205&type=chunk) - Interest rate risk pertains to the Term Loan Facility and Revolving Credit Facility The company uses interest rate cap and collar agreements to manage this exposure[207](index=207&type=chunk) - As of March 31, 2024, the company had interest rate cap and collar contracts with an aggregate notional value of **$950.0 million**[57](index=57&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of March 31, 2024, the company's disclosure controls and procedures were **effective**[210](index=210&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2024, that have **materially affected**, or are reasonably likely to materially affect, the company's internal control[211](index=211&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal matters, including class actions and the 'Take 5 Matter' related to misconduct, with indeterminable potential liability - The company is involved in various litigation, including **class actions** related to California labor laws and commercial disputes[214](index=214&type=chunk)[216](index=216&type=chunk) - A key legal issue is the '**Take 5 Matter**,' which involves misconduct at a previously acquired business (Take 5 Media Group), a subsequent government investigation, and potential liability for which the amount is currently **indeterminable**[217](index=217&type=chunk) [Risk Factors](index=46&type=page&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the 2023 Annual Report on Form 10-K were reported - **No material changes** to the risk factors disclosed in the 2023 Annual Report on Form 10-K were reported[218](index=218&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported during the period - **None**[218](index=218&type=chunk) [Defaults Upon Senior Securities](index=47&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - **None**[219](index=219&type=chunk) [Mine Safety Disclosures](index=47&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - **Not applicable**[219](index=219&type=chunk) [Other Information](index=47&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement in Q1 2024 - **No directors or executive officers adopted or terminated** a Rule 10b5-1 trading arrangement in Q1 2024[220](index=220&type=chunk) [Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including an amendment to the First Lien Credit Agreement and CEO/CFO certifications - Filed exhibits include **Amendment No. 3 to the First Lien Credit Agreement** and required **CEO/CFO certifications**[221](index=221&type=chunk)