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Advantage Solutions(ADV) - 2025 Q1 - Quarterly Results
ADVAdvantage Solutions(ADV)2025-05-12 11:05

Financial Performance - Revenues for Q1 2025 were 822million,adeclineof5822 million, a decline of 5% from 861 million in Q1 2024[3] - Net loss for Q1 2025 was 56million,comparedtoanetlossof56 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 58million,withanadjustedEBITDAmarginof7.158 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 861,412inQ12024[34]−Operatinglossfromcontinuingoperationswas861,412 in Q1 2024[34] - Operating loss from continuing operations was 14,621, improved from a loss of 29,950inQ12024[34]−Netlossfromcontinuingoperationswas29,950 in Q1 2024[34] - Net loss from continuing operations was 56,130, compared to a loss of 50,133inthesameperiodlastyear[34]−AdjustedEBITDAfromcontinuingoperationsdecreasedto50,133 in the same period last year[34] - Adjusted EBITDA from continuing operations decreased to 58,181, down 17.6% from 70,639inQ12024[41]−Basiclosspercommonsharefromcontinuingoperationswas70,639 in Q1 2024[41] - Basic loss per common share from continuing operations was (0.17), compared to (0.16)inQ12024[34]−Thecompanyreportedanetlossof(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 289.8million,whileExperientialServicesrevenueincreasedby2.2289.8 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,down18.427,945,000, down 18.4% from 34,334,000 in Q1 2024[44] - Experiential Services segment Adjusted EBITDA for Q1 2025 was 12,069,000,adecreaseof27.512,069,000, a decrease of 27.5% compared to 16,692,000 in Q1 2024[44] - Retailer Services segment reported an operating income of 4,205,000inQ12025,asignificantimprovementfromanoperatinglossof4,205,000 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 121,149from121,149 from 205,233 at the end of 2024, a decline of 41%[36] - Net cash used in operating activities was 39,627,comparedto39,627, 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,comparedto22,139, 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),withAdjustedEBITDAfromContinuingandDiscontinuedOperationsat(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 1.698billionandcashandcashequivalentsofaround1.698 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,withaNetDebttoLTMAdjustedEBITDAratioof4.4x[50]−TotaldebtasofMarch31,2025,was1,557,381,000, 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 15million,withvoluntarysharerepurchasestotalingabout15 million, with voluntary share repurchases totaling about 1 million[12] - The company is focused on disciplined capital allocation, including voluntary debt repurchases of approximately 20million[7]GuidanceandFutureOutlook−Thecompanyplanstoloweritsfiscalyear2025revenueguidancetoalowsingle−digitdeclineorflat,downfromapriorexpectationoflowsingle−digitgrowth[14]−Thedeclineinrevenueswasattributedtointentionalclientexits,transformationspending,andlaborshortagesaffectingordervolumes[7]AssetandLiabilityChanges−Totalassetsdecreasedto20 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,reflectingareductionof33,106,517, reflecting a reduction of 3%[36] - Total liabilities decreased to 2,317,778 from 2,357,782,areductionof1.72,357,782, a reduction of 1.7%[36] Other Expenses - Cash payments for restructuring expenses in Q1 2025 totaled 7,496,000[50] - The company incurred 3,473,000inacquisitionanddivestiturerelatedexpensesforthetwelvemonthsendedMarch31,2025[53]−DepreciationandamortizationfortheBrandedServicessegmentwas3,473,000 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]