Advantage Solutions(US:ADV)2025-05-12 11:05Financial 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]