Advantage Solutions Reports 2024 Third Quarter Results and Remains on Track to Achieve Its Full-Year Outlook
Advantage Solutions (NASDAQ: ADV) reported its Q3 2024 financial results, showing mixed performance. Revenues decreased to $939.3 million from $1,019.7 million year-over-year, while net loss widened to $37.3 million from $29.6 million. However, organic revenues grew by 2.4%, driven by strength in Experiential Services, and Adjusted EBITDA increased 8.1% to $101 million. The company maintained its focus on capital allocation, with $80 million in debt repayment and $13 million in share repurchases. Management remains committed to achieving low single-digit growth in 2024 revenues and Adjusted EBITDA on a continuing operations basis.
Advantage Solutions (NASDAQ: ADV) ha riportato i risultati finanziari del terzo trimestre del 2024, mostrando una performance mista. I ricavi sono diminuiti a 939,3 milioni di dollari rispetto a 1.019,7 milioni di dollari dell'anno precedente, mentre la perdita netta è aumentata a 37,3 milioni di dollari rispetto ai 29,6 milioni. Tuttavia, i ricavi organici sono cresciuti del 2,4%, spinti dalla solidità dei Servizi Esperienziali, e l'EBITDA rettificato è aumentato dell'8,1% a 101 milioni di dollari. L'azienda ha mantenuto il proprio focus sull'allocazione di capitale, con 80 milioni di dollari destinati al rimborso del debito e 13 milioni di dollari in riacquisti di azioni. La direzione è impegnata a raggiungere una crescita bassa di un solo dito nei ricavi del 2024 e nell'EBITDA rettificato basato sulle operazioni continuative.
Advantage Solutions (NASDAQ: ADV) informó sobre sus resultados financieros del tercer trimestre de 2024, mostrando un desempeño mixto. Los ingresos disminuyeron a 939,3 millones de dólares desde 1.019,7 millones de dólares en el mismo periodo del año anterior, mientras que la pérdida neta se amplió a 37,3 millones de dólares desde 29,6 millones. Sin embargo, los ingresos orgánicos crecieron un 2,4%, impulsados por la fortaleza de los Servicios Experienciales, y el EBITDA ajustado aumentó un 8,1% hasta 101 millones de dólares. La empresa mantuvo su enfoque en la asignación de capital, con 80 millones de dólares destinados al pago de deudas y 13 millones de dólares en recompra de acciones. La dirección sigue comprometida a lograr un crecimiento de dígitos bajos en los ingresos de 2024 y el EBITDA ajustado en base a operaciones continuas.
Advantage Solutions(NASDAQ: ADV)는 2024년 3분기 재무 결과를 발표하며 혼합된 성과를 보였습니다. 수익은 전년 동기 대비 1,019.7백만 달러에서 939.3백만 달러로 감소했으며, 순손실은 29.6백만 달러에서 37.3백만 달러로 확대되었습니다. 그러나 유기적 수익은 2.4% 증가했으며, 이는 체험 서비스의 강세에 의해 촉진되었고, 조정 EBITDA는 101백만 달러로 8.1% 증가했습니다. 회사는 8천만 달러의 채무 상환과 1천3백만 달러의 자사주 매입을 통해 자본 배분에 계속 집중하고 있습니다. 경영진은 2024년 수익과 계속 운영 기준의 조정 EBITDA에서 저가의 한 자리 성장 달성을 위한 노력을 지속하고 있습니다.
Advantage Solutions (NASDAQ: ADV) a publié ses résultats financiers pour le troisième trimestre 2024, affichant des performances mitigées. Les revenus ont baissé à 939,3 millions de dollars contre 1 019,7 millions de dollars l'année précédente, tandis que la perte nette s'est élargie à 37,3 millions de dollars contre 29,6 millions. Cependant, les revenus organiques ont augmenté de 2,4%, stimulés par la solidité des Services Expérientiels, et le EBITDA ajusté a augmenté de 8,1% pour atteindre 101 millions de dollars. L'entreprise a maintenu son attention sur l'allocation du capital, avec 80 millions de dollars destinés au remboursement de la dette et 13 millions de dollars en rachats d'actions. La direction reste engagée à atteindre une croissance à un chiffre bas pour les revenus et l'EBITDA ajusté en 2024 sur une base d'opérations continues.
Advantage Solutions (NASDAQ: ADV) berichtete über seine Finanzergebnisse für das 3. Quartal 2024 und zeigte eine gemischte Leistung. Die Einnahmen fielen von 1.019,7 Millionen Dollar auf 939,3 Millionen Dollar im Jahresvergleich, während sich der Nettoverlust von 29,6 Millionen Dollar auf 37,3 Millionen Dollar vergrößerte. Dennoch stiegen die organischen Einnahmen um 2,4%, vorangetrieben durch die Stärke der Erlebnisse-Dienstleistungen, und das bereinigte EBITDA erhöhte sich um 8,1% auf 101 Millionen Dollar. Das Unternehmen hielt seinen Fokus auf die Kapitalverwendung bei 80 Millionen Dollar für die Schuldentilgung und 13 Millionen Dollar für Aktienrückkäufe. Das Management bleibt verpflichtet, im Jahr 2024 ein niedriges einstelliges Wachstum bei den Einnahmen und dem bereinigten EBITDA auf Basis der fortgeführten Betriebe zu erreichen.
- Organic revenue growth of 2.4% in Q3 2024
- Adjusted EBITDA increased 8.1% to $101 million
- Adjusted EBITDA margin improved to 10.7% from 9.2%
- $93 million in debt and share repurchases executed
- Revenue declined 7.9% to $939.3 million
- Net loss increased by 25.9% to $37.3 million
- YTD net loss widened significantly to $200.5 million from $78.5 million
- YTD Adjusted EBITDA decreased 1.5% to $261.5 million
Insights
The Q3 results present a mixed financial picture. While
However, the widening net loss of
The transformation efforts and focus on operating efficiencies suggest potential margin improvements ahead, though the low single-digit growth guidance indicates near-term upside.
Delivered revenues and Adjusted EBITDA growth during a year of investment.
Transformation is progressing to enhance core service capabilities with greater operating efficiencies.
Remain committed to growing 2024 revenues and Adjusted EBITDA by low single digits on a continuing operations basis.
ST. LOUIS, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Advantage Solutions Inc. (NASDAQ: ADV) (“Advantage,” “Advantage Solutions,” the “Company,” “we,” or “our”), a leading business solutions provider to consumer goods manufacturers and retailers, today reported financial results for the three and nine months ended September 30, 2024.
Unless otherwise noted, results presented in this release are on a continuing operations basis. Revenues for the three months ended September 30, 2024, were
2024 Third Quarter Financial Highlights
- Organic revenues(1) increased by approximately
2% driven by strength in Experiential Services. - Adjusted EBITDA was
$101 million , an8.1% increase compared to the prior year. - Management remains focused on disciplined capital allocation with debt and share repurchases of approximately
$80 million and$13 million , respectively.
“We continued to execute on our operational priorities, which resulted in organic revenue and Adjusted EBITDA growth in the quarter,” said Advantage CEO Dave Peacock. “At the same time, we are making progress on our transformation initiatives to enhance Advantage's core capabilities and maximize operating efficiencies across the business. We remain committed to achieving our 2024 guidance and relentlessly serving our clients through our broad range of interconnected services.”
Consolidated Financial Summary from Continuing Operations | ||||||||||||||||||||
(amounts in thousands) | Three Months Ended September 30, | Change (Reported) | Organic(1) | |||||||||||||||||
2024 | 2023 | $ | % | % | ||||||||||||||||
Total Revenues | $ | 939,270 | $ | 1,019,706 | $ | (80,436 | ) | (7.9 | %) | 2.4 | % | |||||||||
Total Net Loss | $ | (37,320 | ) | $ | (29,632 | ) | $ | (7,688 | ) | (25.9 | %) | |||||||||
Total Adjusted EBITDA | $ | 100,920 | $ | 93,317 | $ | 7,603 | 8.1 | % | ||||||||||||
Adjusted EBITDA Margin | 10.7 | % | 9.2 | % | ||||||||||||||||
(amounts in thousands) | Nine Months Ended September 30, | Change (Reported) | Organic(1) | |||||||||||||||||
2024 | 2023 | $ | % | % | ||||||||||||||||
Total Revenues | $ | 2,674,039 | $ | 2,908,177 | $ | (234,138 | ) | (8.1 | %) | 2.2 | % | |||||||||
Total Net Loss | $ | (200,469 | ) | $ | (78,549 | ) | $ | (121,920 | ) | (155.2 | %) | |||||||||
Total Adjusted EBITDA | $ | 261,459 | $ | 265,423 | $ | (3,964 | ) | (1.5 | %) | |||||||||||
Adjusted EBITDA Margin | 9.8 | % | 9.1 | % | ||||||||||||||||
(1) Excludes ~ | ||||||||||||||||||||
The complete earnings release can be found here.
Media Contact: Peter Frost | press@youradv.com
Investor Contact: Ruben Mella | ruben.mella@youradv.com
About Advantage Solutions
Advantage Solutions is the leading omnichannel retail solutions agency in North America, uniquely positioned at the intersection of consumer-packaged goods (CPG) brands and retailers. With its data- and technology-powered services, Advantage leverages its unparalleled insights, expertise and scale to help brands and retailers of all sizes generate demand and get products into the hands of consumers, wherever they shop. Whether it’s creating meaningful moments and experiences in-store and online, optimizing assortment and merchandising, or accelerating e-commerce and digital capabilities, Advantage is the trusted partner that keeps commerce and life moving. Advantage has offices throughout North America and strategic investments and owned operations in select international markets. For more information, please visit YourADV.com.
Included with this press release are the Company’s consolidated and condensed financial statements as of and for the three months and nine months ended September 30, 2024. These financial statements should be read in conjunction with the information contained in the Company’s Quarterly Report on Form 10-Q, to be filed with the Securities and Exchange Commission (the "SEC") on or about Nov. 12, 2024.
Forward-Looking Statements
Certain statements in this press release may be considered forward-looking statements within the meaning of the federal securities laws, including statements regarding the expected future performance of Advantage's business and projected financial results. Forward-looking statements generally relate to future events or Advantage’s future financial or operating performance. These forward-looking statements generally are identified by the words “may”, “should”, “expect”, “intend”, “will”, “would”, “could”, “estimate”, “anticipate”, “believe”, “predict”, “confident”, “potential” or “continue”, or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements.
These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Advantage and its management at the time of such statements, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, market-driven wage changes or changes to labor laws or wage or job classification regulations, including minimum wage; the COVID-19 pandemic and other future potential pandemics or health epidemics; Advantage’s ability to continue to generate significant operating cash flow; client procurement strategies and consolidation of Advantage’s clients’ industries creating pressure on the nature and pricing of its services; consumer goods manufacturers and retailers reviewing and changing their sales, retail, marketing and technology programs and relationships; Advantage’s ability to successfully develop and maintain relevant omni-channel services for our clients in an evolving industry and to otherwise adapt to significant technological change; Advantage’s ability to maintain proper and effective internal control over financial reporting in the future; potential and actual harms to Advantage’s business arising from the Take 5 Matter; Advantage’s substantial indebtedness and our ability to refinance at favorable rates; and other risks and uncertainties set forth in the section titled “Risk Factors” in the Annual Report on Form 10-K filed by the Company with the SEC on March 1, 2024, and in its other filings made from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Advantage assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Financial Measures and Related Information
This press release includes certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”), including Adjusted EBITDA from Continuing Operations, Adjusted EBITDA from Discontinued Operations, Adjusted EBITDA by Segment, Adjusted Unlevered Free Cash Flow and Net Debt. These are not measures of financial performance calculated in accordance with GAAP and may exclude items that are significant in understanding and assessing Advantage’s financial results. Therefore, the measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP, and should not be considered in isolation or as an alternative to net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that Advantage’s presentation of these measures may not be comparable to similarly titled measures used by other companies. Reconciliations of historical non-GAAP measures to their most directly comparable GAAP counterparts are included below.
Advantage believes these non-GAAP measures provide useful information to management and investors regarding certain financial and business trends relating to Advantage’s financial condition and results of operations. Advantage believes that the use of Adjusted EBITDA from Continuing Operations, Adjusted EBITDA from Discontinued Operations, Adjusted EBITDA by Segment, Adjusted Unlevered Free Cash Flow, and Net Debt provide an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing Advantage’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. Additionally, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore Advantage’s non-GAAP measures may not be directly comparable to similarly titled measures of other companies.
Adjusted EBITDA from Continuing Operations, Adjusted EBITDA from Discontinued Operations and Adjusted EBITDA by Segment are supplemental non-GAAP financial measures of our operating performance. Adjusted EBITDA from Continuing Operations and Adjusted EBITDA from Discontinued Operations mean net (loss) income before (i) interest expense (net), (ii) provision for (benefit from) income taxes, (iii) depreciation, (iv) amortization of intangible assets, (v) impairment of goodwill, (vi) changes in fair value of warrant liability, (vii) stock based compensation expense, (viii) equity-based compensation of Karman Topco L.P., (ix) fair value adjustments of contingent consideration related to acquisitions, (x) acquisition and divestiture related expenses, (xi) (gain) loss on divestitures, (xii) restructuring expenses, (xiii) reorganization expenses, (xiv) litigation expenses (recovery), (xv) costs associated with COVID-19, net of benefits received, (xvi) costs associated with (recovery from) the Take 5 Matter, (xvii) EBITDA for economic interests in investments and (xviii) other adjustments that management believes are helpful in evaluating our operating performance.
Adjusted EBITDA by Segment means, with respect to each segment, operating income (loss) from continuing operations before (i) depreciation, (ii) amortization of intangible assets, (iii) impairment of goodwill, (iv) stock based compensation expense, (v) equity-based compensation of Karman Topco L.P., (vi) fair value adjustments of contingent consideration related to acquisitions, (vii) acquisition and divestiture related expenses, (viii) restructuring expenses, (ix) reorganization expenses, (x) litigation expenses (recovery), (xi) costs associated with COVID-19, net of benefits received, (xii) costs associated with (recovery from) the Take 5 Matter, (xiii) EBITDA for economic interests in investments and (xiv) other adjustments that management believes are helpful in evaluating our operating performance, in each case, attributable to such segment.
Adjusted EBITDA Margin with means Adjusted EBITDA from Continuing Operations divided by total revenues.
Adjusted Unlevered Free Cash Flow represents net cash provided by (used in) operating activities from continuing and discontinued operations less purchase of property and equipment as disclosed in the Statements of Cash Flows further adjusted by (i) cash payments for interest, (ii) cash received from interest rate derivatives, (iii) cash paid for income taxes; (iv) cash paid for acquisition and divestiture related expenses, (v) cash paid for restructuring expenses, (vi) cash paid for reorganization expenses, (vii) cash paid for contingent earnout payments included in operating cash flow, (viii) cash paid for costs associated with COVID-19, net of benefits received, (ix) cash paid for costs associated with the Take 5 Matter, (x) net effect of foreign currency fluctuations on cash, and (xi) other adjustments that management believes are helpful in evaluating our operating performance. Adjusted Unlevered Free Cash Flow as a percentage of Adjusted EBITDA means Adjusted Unlevered Free Cash Flow divided by Adjusted EBITDA from Continuing Operations and Adjusted EBITDA from Discontinued Operations.
Net Debt represents the sum of current portion of long-term debt and long-term debt, less cash and cash equivalents and debt issuance costs. With respect to Net Debt, cash and cash equivalents are subtracted from the GAAP measure, total debt, because they could be used to reduce the debt obligations. We present Net Debt because we believe this non-GAAP measure provides useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and to evaluate changes to the Company's capital structure and credit quality assessment.
Advantage Solutions Inc. Reconciliation of Net Income (Loss) to Adjusted EBITDA (Unaudited) | |||||||||||||||
Continuing Operations | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
(in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
Net loss from continuing operations | $ | (37,320 | ) | $ | (29,632 | ) | $ | (200,469 | ) | $ | (78,549 | ) | |||
Add: | |||||||||||||||
Interest expense, net | 38,969 | 42,275 | 114,484 | 119,883 | |||||||||||
Benefit from income taxes from continuing operations | (4,866 | ) | (6,577 | ) | (38,042 | ) | (15,994 | ) | |||||||
Depreciation and amortization | 51,866 | 52,415 | 152,931 | 157,436 | |||||||||||
Impairment of goodwill and indefinite-lived assets | — | — | 99,670 | — | |||||||||||
Changes in fair value of warrant liability | 40 | 587 | (359 | ) | 587 | ||||||||||
Stock-based compensation expense (a) | 8,143 | 8,983 | 24,225 | 29,400 | |||||||||||
Equity-based compensation of Karman Topco L.P. (b) | (178 | ) | 209 | (658 | ) | (3,278 | ) | ||||||||
Fair value adjustments related to contingent consideration related to acquisitions (c) | — | 1,518 | 1,678 | 10,487 | |||||||||||
Acquisition and divestiture related expenses (d) | 127 | 332 | (1,207 | ) | 3,064 | ||||||||||
Restructuring expenses (e) | 24,118 | — | 24,118 | — | |||||||||||
Reorganization expenses (f) | 18,637 | 21,372 | 73,980 | 38,304 | |||||||||||
Litigation (recovery) expenses (g) | (1,713 | ) | 4,314 | (2,422 | ) | 8,664 | |||||||||
Costs associated with COVID-19, net of benefits received (h) | — | (49 | ) | — | 3,285 | ||||||||||
Costs associated with the Take 5 Matter, net of (recoveries) (i) | 385 | 53 | 1,081 | (1,443 | ) | ||||||||||
EBITDA for economic interests in investments(j) | 2,712 | (2,483 | ) | 12,449 | (6,423 | ) | |||||||||
Adjusted EBITDA from Continuing Operations | $ | 100,920 | $ | 93,317 | $ | 261,459 | $ | 265,423 | |||||||
FAQ
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