Advantage Solutions(ADV) - 2024 Q4 - Annual Results

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]