EX-99.1 2 adv-ex99_1.htm EX-99.1 EX-99.1

EXHIBIT 99.1

ADVANTAGE SOLUTIONS INC.

SUMMARIZED QUARTERLY RESULTS

AS RECAST

(UNAUDITED)

 

 

Three Months Ended

 

 

(in thousands)

 

June 30,
2024(a)

 

 

March 31,
2024

 

 

December 31,
2023

 

 

September 30,
2023

 

 

June 30,
2023

 

 

March 31,
2023

 

 

December 31,
2022

 

 

September 30,
2022

 

 

June 30,
2022

 

 

March 31,
2022

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded Services

 

$

322,340

 

 

$

329,054

 

 

$

431,282

 

 

$

451,173

 

 

$

447,265

 

 

$

428,697

 

 

$

480,963

 

 

$

444,317

 

 

$

428,044

 

 

$

410,752

 

 

Experiential Services

 

 

319,508

 

 

 

307,351

 

 

 

308,727

 

 

 

308,381

 

 

 

285,174

 

 

 

257,167

 

 

 

253,557

 

 

 

245,752

 

 

 

221,863

 

 

 

183,058

 

 

Retailer Services

 

 

231,509

 

 

 

225,007

 

 

 

251,939

 

 

 

260,152

 

 

 

231,319

 

 

 

238,849

 

 

 

260,270

 

 

 

264,976

 

 

 

230,941

 

 

 

221,849

 

 

Total revenues from continuing operations

 

$

873,357

 

 

$

861,412

 

 

$

991,948

 

 

$

1,019,706

 

 

$

963,758

 

 

$

924,713

 

 

$

994,790

 

 

$

955,045

 

 

$

880,848

 

 

$

815,659

 

 

Revenues from discontinued operations

 

 

28,874

 

 

 

44,634

 

 

 

87,801

 

 

 

76,353

 

 

 

73,297

 

 

 

87,270

 

 

 

107,973

 

 

 

96,050

 

 

 

100,228

 

 

 

99,149

 

 

Previously reported revenues from continuing and discontinued operations(b)

 

$

902,231

 

 

$

906,046

 

 

$

1,079,749

 

 

$

1,096,059

 

 

$

1,037,055

 

 

$

1,011,983

 

 

$

1,102,763

 

 

$

1,051,095

 

 

$

981,076

 

 

$

914,808

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (Loss) Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded Services

 

$

(107,280

)

 

$

(22,118

)

 

$

33,779

 

 

$

(599

)

 

$

8,920

 

 

$

3,286

 

 

$

(800,471

)

 

$

24,033

 

 

$

10,123

 

 

$

9,057

 

 

Experiential Services

 

 

6,453

 

 

 

(3,642

)

 

 

845

 

 

 

1,971

 

 

 

4,805

 

 

 

(4,326

)

 

 

(358,628

)

 

 

(1,390

)

 

 

(5,379

)

 

 

(6,503

)

 

Retailer Services

 

 

9,568

 

 

 

(4,190

)

 

 

(13,962

)

 

 

5,281

 

 

 

1,526

 

 

 

5,063

 

 

 

(392,537

)

 

 

14,722

 

 

 

5,511

 

 

 

7,519

 

 

Total operating (loss) income from continuing operations

 

$

(91,259

)

 

$

(29,950

)

 

$

20,662

 

 

$

6,653

 

 

$

15,251

 

 

$

4,023

 

 

$

(1,551,636

)

 

$

37,365

 

 

$

10,255

 

 

$

10,073

 

 

Operating income (loss) from discontinued operations

 

 

9,820

 

 

 

61,287

 

 

 

25,530

 

 

 

9,330

 

 

 

7,020

 

 

 

(12,279

)

 

 

14,098

 

 

 

9,477

 

 

 

18,011

 

 

 

12,951

 

 

Previously reported operating (loss) income from continuing and discontinued operations(b)

 

$

(81,439

)

 

$

31,337

 

 

$

46,192

 

 

$

15,983

 

 

$

22,271

 

 

$

(8,256

)

 

$

(1,537,538

)

 

$

46,842

 

 

$

28,266

 

 

$

23,024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded Services

 

$

42,856

 

 

$

34,335

 

 

$

49,385

 

 

$

50,710

 

 

$

51,787

 

 

$

51,801

 

 

$

64,663

 

 

$

62,418

 

 

$

58,289

 

 

$

52,642

 

 

Experiential Services

 

 

22,611

 

 

 

16,693

 

 

 

13,211

 

 

 

16,584

 

 

 

16,202

 

 

 

7,006

 

 

 

7,161

 

 

 

10,520

 

 

 

4,587

 

 

 

3,281

 

 

Retailer Services

 

 

24,431

 

 

 

19,613

 

 

 

24,229

 

 

 

26,023

 

 

 

21,865

 

 

 

23,445

 

 

 

18,433

 

 

 

29,289

 

 

 

24,720

 

 

 

22,490

 

 

Total Adjusted EBITDA by segment from continuing operations

 

$

89,898

 

 

$

70,641

 

 

$

86,825

 

 

$

93,317

 

 

$

89,854

 

 

$

82,252

 

 

$

90,257

 

 

$

102,227

 

 

$

87,596

 

 

$

78,413

 

 

Adjusted EBITDA from discontinued operations

 

 

7,938

 

 

 

8,119

 

 

 

28,091

 

 

 

19,832

 

 

 

14,358

 

 

 

9,818

 

 

 

22,409

 

 

 

16,041

 

 

 

20,726

 

 

 

18,326

 

 

Previously reported Adjusted EBITDA from Continuing and Discontinued Operations(b)

 

$

97,836

 

 

$

78,760

 

 

$

114,916

 

 

$

113,149

 

 

$

104,212

 

 

$

92,070

 

 

$

112,666

 

 

$

118,268

 

 

$

108,322

 

 

$

96,739

 

 

__________________

(a)
Results for the three months ended June 30, 2024 have not been previously reported.
(b)
For the three months ended March 31, 2024 and 2023 revenues related to discontinued operations as reported were $44.6 million and $87.3 million, respectively. For the three months ended March 31, 2024 operating income related to discontinued operations as reported was $61.3 million. For the three months ended March 31, 2023 operating loss related to discontinued operations as reported was $12.3 million. For the three months ended March 31, 2024 and 2023 Adjusted EBITDA from Discontinued Operations was not previously reported. During the three months ended June 30, 2024, additional businesses met the criteria as held for sale representing an additional $5.0 million and $3.6 million during the three months ended March 31, 2024 and 2023, respectively.

1

EXHIBIT 99.1

 

ADVANTAGE SOLUTIONS INC.

NON-GAAP ADJUSTED EBITDA RECONCILIATIONS

AS RECAST

(UNAUDITED)

This supplemental financial information includes certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”), including Adjusted EBITDA from Continuing Operations and Discontinued Operations, Adjusted EBITDA by segment, Adjusted EBITDA from Discontinued Operations, Revenues net of pass-through costs by segment and Revenues net of pass-through costs from discontinued operations. These are not measures of financial performance calculated in accordance with GAAP and may exclude items that are significant in understanding and assessing the financial results for Advantage Solutions Inc. (“Advantage”). 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 operating income, 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 and Discontinued Operations, Adjusted EBITDA by segment, Adjusted EBITDA from Discontinued Operations, Revenues net of pass-through costs by segment and Revenues net of pass-through costs from discontinued operations each 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. Advantage believes that Adjusted EBITDA from Continued and Discontinued Operations will help management and investors reconcile to previously reported amounts. 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 and Discontinued Operations are supplemental non-GAAP financial measures of our operating performance. Adjusted EBITDA from Continuing and Discontinued Operations, means 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 and indefinite-lived assets, (vi) gain on deconsolidation of subsidiaries, (vii) loss (gain) on divestitures, (viii) changes in fair value of warrant liability, (ix) stock based compensation expense, (x) equity-based compensation of Karman Topco L.P., (xi) fair value adjustments of contingent consideration related to acquisitions, (xii) acquisition and divestiture related expenses, (xiii) reorganization expenses, (xiv) litigation expenses (recoveries), (xv) costs associated with COVID-19, net of benefits received, (xvi) costs associated with the Take 5 Matter, net of (recoveries), (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 and Adjusted EBITDA from Discontinued Operations means, with respect to such segment or discontinued operations, as applicable, operating income (loss) before (i) depreciation, (ii) impairment of goodwill and indefinite-lived assets, (iii) amortization of intangible assets, (iv) gain on deconsolidation of subsidiaries, (v) (gain) loss on divestitures, (vi) equity-based compensation of Karman Topco L.P., (vii) changes in fair value of warrant liability, (viii) stock-based compensation expense, (ix) fair value adjustments of contingent consideration related to acquisitions, (x) acquisition and divestiture related expenses, (xi) costs associated with COVID-19, net of benefits received, (xii) EBITDA for economic interests in investments, (xiii) reorganization expenses, (xiv) litigation expenses (recovery), (xv) costs associated with the Take 5 Matter, net of (recoveries) and (xvi) other adjustments that management believes are helpful in evaluating our operating performance.

 

Revenue net of pass-through costs by segment and Revenues net of pass-through costs from discontinued operations means revenues less pass-through costs that are paid by Advantage's clients, including media, sample, retailer fees and other marketing and production costs.

2

EXHIBIT 99.1

ADVANTAGE SOLUTIONS INC.

NON-GAAP ADJUSTED EBITDA RECONCILIATIONS

AS RECAST

(Unaudited)

 

Reconciliations of Adjusted EBITDA from Continuing and Discontinued Operations to Net (loss) income are provided in the following table:

 

 

 

Three Months Ended

 

(in thousands)

 

June 30,
2024(a)

 

 

March 31, 2024

 

 

December 31, 2023

 

 

September 30, 2023

 

 

June 30,
2023

 

 

March 31,
2023

 

 

December 31, 2022

 

 

September 30, 2022

 

 

June 30,
2022

 

 

March 31,
2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Previously reported revenues from continuing and discontinued operations

 

$

902,231

 

 

$

906,046

 

 

$

1,079,749

 

 

$

1,096,059

 

 

$

1,037,055

 

 

$

1,011,983

 

 

$

1,102,763

 

 

$

1,051,095

 

 

$

981,076

 

 

$

914,808

 

Less: Pass-through costs(b)

 

 

(124,391

)

 

 

(134,592

)

 

 

(134,132

)

 

 

(131,926

)

 

 

(123,217

)

 

 

(110,068

)

 

 

(127,040

)

 

 

(109,480

)

 

 

(94,951

)

 

 

(73,138

)

Total revenues net of pass-through costs from continuing and discontinued operations

 

$

777,840

 

 

$

771,454

 

 

$

945,617

 

 

$

964,133

 

 

$

913,838

 

 

$

901,915

 

 

$

975,723

 

 

$

941,615

 

 

$

886,125

 

 

$

841,670

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(100,835

)

 

$

(3,115

)

 

$

17,788

 

 

$

(22,582

)

 

$

(7,846

)

 

$

(47,678

)

 

$

(1,421,729

)

 

$

23,227

 

 

$

3,676

 

 

$

17,534

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

39,770

 

 

 

35,793

 

 

 

45,850

 

 

 

42,301

 

 

 

30,460

 

 

 

47,191

 

 

 

40,831

 

 

 

23,557

 

 

 

28,188

 

 

 

11,883

 

(Benefit from) provision for income taxes

 

 

(19,688

)

 

 

(1,628

)

 

 

(16,573

)

 

 

(4,323

)

 

 

(416

)

 

 

(7,696

)

 

 

(156,860

)

 

 

1,158

 

 

 

1,316

 

 

 

9,049

 

Depreciation and amortization

 

 

53,200

 

 

 

52,356

 

 

 

54,390

 

 

 

56,465

 

 

 

56,738

 

 

 

57,104

 

 

 

59,078

 

 

 

57,785

 

 

 

58,444

 

 

 

57,768

 

Impairment of goodwill and indefinite-lived assets

 

 

99,670

 

 

 

—

 

 

 

43,500

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,572,523

 

 

 

—

 

 

 

—

 

 

 

—

 

Gain on deconsolidation of subsidiaries

 

 

—

 

 

 

—

 

 

 

(58,891

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

(Gain) loss on divestitures

 

 

(13,179

)

 

 

(57,016

)

 

 

(1,140

)

 

 

2,553

 

 

 

1,158

 

 

 

16,497

 

 

 

81

 

 

 

—

 

 

 

—

 

 

 

2,782

 

Changes in fair value of warrant liability

 

 

(686

)

 

 

287

 

 

 

(873

)

 

 

587

 

 

 

73

 

 

 

(73

)

 

 

220

 

 

 

(1,100

)

 

 

(4,914

)

 

 

(15,442

)

Stock-based compensation expense(c)

 

 

7,630

 

 

 

7,220

 

 

 

10,370

 

 

 

10,074

 

 

 

11,226

 

 

 

11,210

 

 

 

9,919

 

 

 

7,174

 

 

 

14,961

 

 

 

7,771

 

Equity-based compensation of Karman Topco L.P.(d)

 

 

(872

)

 

 

392

 

 

 

754

 

 

 

209

 

 

 

(1,218

)

 

 

(2,269

)

 

 

208

 

 

 

(828

)

 

 

(3,519

)

 

 

(2,795

)

Fair value adjustments related to contingent consideration related to acquisitions(e)

 

 

2,872

 

 

 

689

 

 

 

(1,229

)

 

 

2,231

 

 

 

5,068

 

 

 

4,292

 

 

 

(674

)

 

 

(340

)

 

 

3,654

 

 

 

2,134

 

Acquisition and divestiture related expenses(f)

 

 

450

 

 

 

1,319

 

 

 

2,503

 

 

 

1,591

 

 

 

498

 

 

 

2,432

 

 

 

3,978

 

 

 

4,260

 

 

 

5,998

 

 

 

6,803

 

Reorganization expenses(g)

 

 

25,502

 

 

 

37,126

 

 

 

17,620

 

 

 

22,416

 

 

 

5,837

 

 

 

11,148

 

 

 

1,636

 

 

 

3,562

 

 

 

253

 

 

 

643

 

Litigation (recovery) expenses(h)

 

 

(993

)

 

 

284

 

 

 

855

 

 

 

4,314

 

 

 

4,350

 

 

 

—

 

 

 

6,157

 

 

 

—

 

 

 

(800

)

 

 

—

 

Costs associated with COVID-19, net of benefits received(i)

 

 

—

 

 

 

—

 

 

 

(2

)

 

 

(49

)

 

 

2,317

 

 

 

1,017

 

 

 

2,263

 

 

 

2,009

 

 

 

1,362

 

 

 

1,574

 

Costs associated with the Take 5 Matter, net of (recoveries)(j)

 

 

456

 

 

 

240

 

 

 

63

 

 

 

53

 

 

 

(1,576

)

 

 

80

 

 

 

377

 

 

 

278

 

 

 

723

 

 

 

1,087

 

EBITDA for economic interests in investments(k)

 

 

4,539

 

 

 

4,813

 

 

 

(69

)

 

 

(2,691

)

 

 

(2,457

)

 

 

(1,185

)

 

 

(5,342

)

 

 

(2,474

)

 

 

(1,020

)

 

 

(4,052

)

Previously reported Adjusted EBITDA from Continuing and Discontinued Operations

 

$

97,836

 

 

$

78,760

 

 

$

114,916

 

 

$

113,149

 

 

$

104,212

 

 

$

92,070

 

 

$

112,666

 

 

$

118,268

 

 

$

108,322

 

 

$

96,739

 

 

3

EXHIBIT 99.1

ADVANTAGE SOLUTIONS INC.

NON-GAAP ADJUSTED EBITDA RECONCILIATIONS

AS RECAST

(Unaudited)

Financial information by segment, including reconciliations of Adjusted EBITDA by segment to Operating income (loss), the closest GAAP financial measure, is provided in the following tables:

Branded Services Segment

 

 

Three Months Ended

 

(in thousands)

 

June 30,
2024

 

 

March 31, 2024

 

 

December 31, 2023

 

 

September 30, 2023

 

 

June 30,
2023

 

 

March 31,
2023

 

 

December 31, 2022

 

 

September 30, 2022

 

 

June 30,
2022

 

 

March 31,
2022

 

Branded Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

322,340

 

 

$

329,054

 

 

$

431,282

 

 

$

451,173

 

 

$

447,265

 

 

$

428,697

 

 

$

480,963

 

 

$

444,317

 

 

$

428,044

 

 

$

410,752

 

Less: Pass-through costs(b)

 

 

(38,206

)

 

 

(46,629

)

 

 

(48,497

)

 

 

(46,227

)

 

 

(45,052

)

 

 

(39,252

)

 

 

(61,739

)

 

 

(48,383

)

 

 

(38,459

)

 

 

(29,893

)

Total revenues net of pass-through costs

 

$

284,134

 

 

$

282,425

 

 

$

382,785

 

 

$

404,946

 

 

$

402,213

 

 

$

389,445

 

 

$

419,224

 

 

$

395,934

 

 

$

389,585

 

 

$

380,859

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

 

$

(107,280

)

 

$

(22,118

)

 

$

33,779

 

 

$

(599

)

 

$

8,920

 

 

$

3,286

 

 

$

(800,471

)

 

$

24,033

 

 

$

10,123

 

 

$

9,057

 

Depreciation and amortization

 

 

32,327

 

 

 

31,987

 

 

 

34,382

 

 

 

35,369

 

 

 

35,609

 

 

 

35,572

 

 

 

35,720

 

 

 

35,718

 

 

 

36,206

 

 

 

36,710

 

Impairment of goodwill and indefinite-lived assets

 

 

99,670

 

 

 

—

 

 

 

43,500

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

831,008

 

 

 

—

 

 

 

—

 

 

 

—

 

Gain on deconsolidation of subsidiaries

 

 

—

 

 

 

—

 

 

 

(58,891

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loss (gain) on divestitures

 

 

—

 

 

 

—

 

 

 

(18,193

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

81

 

 

 

—

 

 

 

—

 

 

 

2,782

 

Stock based compensation expense(c)

 

 

2,797

 

 

 

3,926

 

 

 

4,342

 

 

 

3,689

 

 

 

4,318

 

 

 

3,302

 

 

 

2,826

 

 

 

1,470

 

 

 

3,815

 

 

 

2,009

 

Equity-based compensation of Karman Topco L.P.(d)

 

 

24

 

 

 

498

 

 

 

522

 

 

 

275

 

 

 

(463

)

 

 

(1,021

)

 

 

327

 

 

 

(164

)

 

 

(1,558

)

 

 

(1,255

)

Fair value adjustments related to contingent consideration related to acquisitions(e)

 

 

900

 

 

 

778

 

 

 

665

 

 

 

1,518

 

 

 

4,632

 

 

 

4,321

 

 

 

(1,606

)

 

 

(985

)

 

 

7,111

 

 

 

2,052

 

Acquisition and divestiture related expenses(f)

 

 

30

 

 

 

74

 

 

 

293

 

 

 

159

 

 

 

258

 

 

 

1,067

 

 

 

(824

)

 

 

2,307

 

 

 

2,905

 

 

 

3,779

 

Reorganization expenses(g)

 

 

9,248

 

 

 

13,656

 

 

 

8,459

 

 

 

10,730

 

 

 

3,015

 

 

 

6,535

 

 

 

1,236

 

 

 

1,573

 

 

 

99

 

 

 

526

 

Litigation expenses(h)

 

 

50

 

 

 

191

 

 

 

187

 

 

 

1,994

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Costs associated with COVID-19, net of benefits received(i)

 

 

—

 

 

 

—

 

 

 

3

 

 

 

6

 

 

 

(361

)

 

 

29

 

 

 

1,400

 

 

 

914

 

 

 

91

 

 

 

195

 

Costs associated with the Take 5 Matter, net of (recoveries)(j)

 

 

456

 

 

 

240

 

 

 

63

 

 

 

53

 

 

 

(1,576

)

 

 

80

 

 

 

377

 

 

 

278

 

 

 

723

 

 

 

1,087

 

EBITDA for economic interests in investments(k)

 

 

4,634

 

 

 

5,103

 

 

 

274

 

 

 

(2,484

)

 

 

(2,565

)

 

 

(1,370

)

 

 

(5,411

)

 

 

(2,726

)

 

 

(1,226

)

 

 

(4,300

)

Total Adjusted EBITDA

 

$

42,856

 

 

$

34,335

 

 

$

49,385

 

 

$

50,710

 

 

$

51,787

 

 

$

51,801

 

 

$

64,663

 

 

$

62,418

 

 

$

58,289

 

 

$

52,642

 

 

4

EXHIBIT 99.1

ADVANTAGE SOLUTIONS INC.

NON-GAAP ADJUSTED EBITDA RECONCILIATIONS

AS RECAST

(Unaudited)

Experiential Services Segment

 

 

Three Months Ended

 

 

(in thousands)

 

June 30,
2024

 

 

March 31, 2024

 

 

December 31, 2023

 

 

September 30, 2023

 

 

June 30,
2023

 

 

March 31,
2023

 

 

December 31, 2022

 

 

September 30, 2022

 

 

June 30,
2022

 

 

March 31,
2022

 

 

Experiential Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

319,508

 

 

$

307,351

 

 

$

308,727

 

 

$

308,381

 

 

$

285,174

 

 

$

257,167

 

 

$

253,557

 

 

$

245,752

 

 

$

221,863

 

 

$

183,058

 

 

Less: Pass-through costs(b)

 

 

(84,689

)

 

 

(85,015

)

 

 

(81,506

)

 

 

(81,848

)

 

 

(75,204

)

 

 

(69,053

)

 

 

(63,076

)

 

 

(59,014

)

 

 

(54,222

)

 

 

(41,378

)

 

Total revenues net of pass-through costs

 

$

234,819

 

 

$

222,336

 

 

$

227,221

 

 

$

226,533

 

 

$

209,970

 

 

$

188,114

 

 

$

190,481

 

 

$

186,738

 

 

$

167,641

 

 

$

141,680

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

6,453

 

 

$

(3,642

)

 

$

845

 

 

$

1,971

 

 

$

4,805

 

 

$

(4,326

)

 

$

(358,628

)

 

$

(1,390

)

 

$

(5,379

)

 

$

(6,503

)

 

Depreciation and amortization

 

 

11,015

 

 

 

9,920

 

 

 

9,298

 

 

 

9,221

 

 

 

9,002

 

 

 

9,063

 

 

 

10,465

 

 

 

9,485

 

 

 

9,466

 

 

 

8,491

 

 

Impairment of goodwill and indefinite-lived assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

354,452

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Stock based compensation expense(c)

 

 

2,170

 

 

 

1,928

 

 

 

(1,560

)

 

 

(778

)

 

 

(646

)

 

 

(436

)

 

 

(456

)

 

 

(19

)

 

 

(424

)

 

 

(443

)

 

Equity-based compensation of Karman Topco L.P.(d)

 

 

(458

)

 

 

(44

)

 

 

129

 

 

 

(29

)

 

 

(358

)

 

 

(547

)

 

 

(45

)

 

 

(267

)

 

 

(792

)

 

 

(594

)

 

Fair value adjustments related to contingent consideration related to acquisitions(e)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Acquisition and divestiture related expenses(f)

 

 

(101

)

 

 

106

 

 

 

71

 

 

 

19

 

 

 

48

 

 

 

374

 

 

 

319

 

 

 

670

 

 

 

1,144

 

 

 

1,224

 

 

Reorganization expenses(g)

 

 

3,472

 

 

 

8,252

 

 

 

3,869

 

 

 

4,960

 

 

 

1,304

 

 

 

1,966

 

 

 

299

 

 

 

1,079

 

 

 

98

 

 

 

29

 

 

Litigation expenses (recovery)(h)

 

 

60

 

 

 

173

 

 

 

566

 

 

 

1,276

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(700

)

 

 

—

 

 

Costs associated with COVID-19, net of benefits received(i)

 

 

—

 

 

 

—

 

 

 

(7

)

 

 

(56

)

 

 

2,040

 

 

 

912

 

 

 

755

 

 

 

962

 

 

 

1,174

 

 

 

1,077

 

 

Total Adjusted EBITDA

 

$

22,611

 

 

$

16,693

 

 

$

13,211

 

 

$

16,584

 

 

$

16,202

 

 

$

7,006

 

 

$

7,161

 

 

$

10,520

 

 

$

4,587

 

 

$

3,281

 

 

 

5

EXHIBIT 99.1

ADVANTAGE SOLUTIONS INC.

NON-GAAP ADJUSTED EBITDA RECONCILIATIONS

AS RECAST

(Unaudited)

 

Retailer Services Segment

 

 

Three Months Ended

 

 

(in thousands)

 

June 30,
2024

 

 

March 31, 2024

 

 

December 31, 2023

 

 

September 30, 2023

 

 

June 30,
2023

 

 

March 31,
2023

 

 

December 31, 2022

 

 

September 30, 2022

 

 

June 30,
2022

 

 

March 31,
2022

 

 

Retailer Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

231,509

 

 

$

225,007

 

 

$

251,939

 

 

$

260,152

 

 

$

231,319

 

 

$

238,849

 

 

$

260,270

 

 

$

264,976

 

 

$

230,941

 

 

$

221,849

 

 

Less: Pass-through costs(b)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Total revenues net of pass-through costs

 

$

231,509

 

 

$

225,007

 

 

$

251,939

 

 

$

260,152

 

 

$

231,319

 

 

$

238,849

 

 

$

260,270

 

 

$

264,976

 

 

$

230,941

 

 

$

221,849

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

9,568

 

 

$

(4,190

)

 

$

(13,962

)

 

$

5,281

 

 

$

1,526

 

 

$

5,063

 

 

$

(392,537

)

 

$

14,722

 

 

$

5,511

 

 

$

7,519

 

 

Depreciation and amortization

 

 

7,975

 

 

 

7,841

 

 

 

7,740

 

 

 

7,825

 

 

 

7,866

 

 

 

7,909

 

 

 

8,322

 

 

 

8,485

 

 

 

8,493

 

 

 

8,486

 

 

Impairment of goodwill and indefinite-lived assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

387,063

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Loss on divestitures

 

 

—

 

 

 

—

 

 

 

18,193

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Stock based compensation expense(c)

 

 

2,561

 

 

 

2,700

 

 

 

6,751

 

 

 

6,072

 

 

 

6,340

 

 

 

7,539

 

 

 

6,265

 

 

 

4,515

 

 

 

10,037

 

 

 

5,506

 

 

Equity-based compensation of Karman Topco L.P.(d)

 

 

(438

)

 

 

(62

)

 

 

103

 

 

 

(37

)

 

 

(397

)

 

 

(701

)

 

 

(74

)

 

 

(397

)

 

 

(1,169

)

 

 

(946

)

 

Fair value adjustments related to contingent consideration related to acquisitions(e)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

9

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Acquisition and divestiture related expenses(f)

 

 

(1,703

)

 

 

260

 

 

 

(222

)

 

 

154

 

 

 

89

 

 

 

896

 

 

 

3,102

 

 

 

983

 

 

 

1,765

 

 

 

1,576

 

 

Reorganization expenses(g)

 

 

7,571

 

 

 

13,144

 

 

 

5,501

 

 

 

5,682

 

 

 

1,475

 

 

 

2,637

 

 

 

101

 

 

 

823

 

 

 

56

 

 

 

51

 

 

Litigation (recovery) expenses(h)

 

 

(1,103

)

 

 

(80

)

 

 

102

 

 

 

1,044

 

 

 

4,350

 

 

 

—

 

 

 

6,157

 

 

 

—

 

 

 

(100

)

 

 

—

 

 

Costs associated with COVID-19, net of benefits received(i)

 

 

—

 

 

 

—

 

 

 

2

 

 

 

1

 

 

 

638

 

 

 

76

 

 

 

108

 

 

 

133

 

 

 

97

 

 

 

302

 

 

EBITDA for economic interests in investments(k)

 

 

—

 

 

 

—

 

 

 

21

 

 

 

1

 

 

 

(31

)

 

 

26

 

 

 

(74

)

 

 

25

 

 

 

30

 

 

 

(4

)

 

Total Adjusted EBITDA

 

$

24,431

 

 

$

19,613

 

 

$

24,229

 

 

$

26,023

 

 

$

21,865

 

 

$

23,445

 

 

$

18,433

 

 

$

29,289

 

 

$

24,720

 

 

$

22,490

 

 

 

6

EXHIBIT 99.1

ADVANTAGE SOLUTIONS INC.

NON-GAAP ADJUSTED EBITDA RECONCILIATIONS

AS RECAST

(Unaudited)

Discontinued Operations

 

 

Three Months Ended

 

 

(in thousands)

 

June 30,
2024

 

 

March 31, 2024

 

 

December 31, 2023

 

 

September 30, 2023

 

 

June 30,
2023

 

 

March 31,
2023

 

 

December 31, 2022

 

 

September 30, 2022

 

 

June 30,
2022

 

 

March 31,
2022

 

 

Discontinued Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

28,874

 

 

$

44,634

 

 

$

87,801

 

 

$

76,353

 

 

$

73,297

 

 

$

87,270

 

 

$

107,973

 

 

$

96,050

 

 

$

100,228

 

 

$

99,149

 

 

Less: Pass-through costs(b)

 

 

(1,496

)

 

 

(2,948

)

 

 

(4,129

)

 

 

(3,851

)

 

 

(2,961

)

 

 

(1,763

)

 

 

(2,225

)

 

 

(2,083

)

 

 

(2,270

)

 

 

(1,867

)

 

Total revenues net of pass-through costs

 

$

27,378

 

 

$

41,686

 

 

$

83,672

 

 

$

72,502

 

 

$

70,336

 

 

$

85,507

 

 

$

105,748

 

 

$

93,967

 

 

$

97,958

 

 

$

97,282

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

9,820

 

 

$

61,287

 

 

$

25,530

 

 

$

9,330

 

 

$

7,020

 

 

$

(12,279

)

 

$

14,098

 

 

$

9,477

 

 

$

18,011

 

 

$

12,951

 

 

Depreciation and amortization

 

 

1,883

 

 

 

2,608

 

 

 

2,970

 

 

 

4,050

 

 

 

4,261

 

 

 

4,560

 

 

 

4,571

 

 

 

4,097

 

 

 

4,279

 

 

 

4,081

 

 

Loss on divestitures

 

 

(13,179

)

 

 

(57,016

)

 

 

(1,140

)

 

 

2,553

 

 

 

1,158

 

 

 

16,497

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Stock based compensation expense(c)

 

 

102

 

 

 

(1,334

)

 

 

837

 

 

 

1,091

 

 

 

1,214

 

 

 

805

 

 

 

1,284

 

 

 

1,208

 

 

 

1,533

 

 

 

699

 

 

Fair value adjustments related to contingent consideration related to acquisitions(e)

 

 

1,972

 

 

 

(89

)

 

 

(1,894

)

 

 

713

 

 

 

420

 

 

 

(29

)

 

 

932

 

 

 

645

 

 

 

(3,457

)

 

 

82

 

 

Acquisition and divestiture related expenses(f)

 

 

2,224

 

 

 

879

 

 

 

2,361

 

 

 

1,259

 

 

 

103

 

 

 

95

 

 

 

1,381

 

 

 

300

 

 

 

184

 

 

 

224

 

 

Reorganization expenses(g)

 

 

5,211

 

 

 

2,074

 

 

 

(209

)

 

 

1,044

 

 

 

43

 

 

 

10

 

 

 

—

 

 

 

87

 

 

 

—

 

 

 

37

 

 

EBITDA for economic interests in investments(k)

 

 

(95

)

 

 

(290

)

 

 

(364

)

 

 

(208

)

 

 

139

 

 

 

159

 

 

 

143

 

 

 

227

 

 

 

176

 

 

 

252

 

 

Total Adjusted EBITDA from Discontinued Operations

 

$

7,938

 

 

$

8,119

 

 

$

28,091

 

 

$

19,832

 

 

$

14,358

 

 

$

9,818

 

 

$

22,409

 

 

$

16,041

 

 

$

20,726

 

 

$

18,326

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

__________________

(a)
Results for the three months ended June 30, 2024 have not been previously reported.
(b)
Pass-through costs are costs that are paid by our clients, including media, sample, retailer fees and other marketing and production costs.
(c)
Represents non-cash compensation expense related to performance stock units, restricted stock units, and stock options under the 2020 Advantage Solutions Incentive Award Plan and the Advantage Solutions 2020 Employee Stock Purchase Plan.
(d)
Represents expenses related to (i) equity-based compensation expense associated with grants of Common Series D Units of Topco made to one of the Advantage Sponsors, and (ii) equity-based compensation expense associated with the Common Series C Units of Topco.
(e)
Represents adjustments to the estimated fair value of our contingent consideration liabilities related to our acquisitions, for the applicable periods.
(f)
Represents fees and costs associated with activities related to our acquisitions, divestitures, and related reorganization activities, including professional fees, due diligence, and integration activities.
(g)
Represents fees and costs associated with various internal reorganization activities, including professional fees, lease exit costs, severance, and nonrecurring compensation costs.
(h)
Represents legal settlements, reserves, and expenses that are unusual or infrequent costs associated with our operating activities.
(i)
Represents (i) costs related to implementation of strategies for workplace safety in response to COVID-19, including employee-relief fund, additional sick pay for front-line associates, medical benefit payments for furloughed associates, and personal protective equipment; and (ii) benefits received from government grants for COVID-19 relief.
(j)
Represents cash receipts from an insurance policy for claims related to the Take 5 Matter and costs associated with investigation and remediation activities related to the Take 5 Matter, primarily, professional fees and other related costs.
(k)
Represents additions to reflect our proportional share of Adjusted EBITDA related to our equity method investments and reductions to remove the Adjusted EBITDA related to the minority ownership percentage of the entities that we fully consolidate in our financial statements.

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