Advantage Solutions Inc. (ADV) Bundle
A Brief History of Advantage Solutions Inc.
Overview
Advantage Solutions Inc. is a premier provider of omnichannel retail solutions, emphasizing innovative strategies to connect consumer packaged goods (CPG) brands with retailers across North America. Established to streamline the sales and marketing processes, the company has become a critical player in the retail solutions sector.
Financial Performance in 2024
As of September 30, 2024, Advantage Solutions reported total revenues of $939.3 million for the third quarter, a decrease of 7.9% compared to $1.02 billion in the same quarter of 2023. The year-to-date total revenues were $2.67 billion compared to $2.91 billion in 2023, marking an 8.1% decline.
| Financial Metrics | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Total Revenues | $939,270,000 | $1,019,706,000 | $2,674,039,000 | $2,908,177,000 |
| Total Net Loss | $(37,320,000) | $(29,632,000) | $(200,469,000) | $(78,549,000) |
| Total Adjusted EBITDA | $100,920,000 | $93,317,000 | $261,459,000 | $265,423,000 |
| Adjusted EBITDA Margin | 10.7% | 9.2% | 9.8% | 9.1% |
Debt and Cash Flow
As of September 30, 2024, Advantage Solutions reported total debt of $1.72 billion, with net debt standing at $1.53 billion. The net debt to trailing twelve-month (LTM) Adjusted EBITDA ratio was 3.9x. The company reported net cash provided by operating activities of $34.0 million for Q3 2024, contributing to an Adjusted Unlevered Free Cash Flow of approximately $69 million.
| Debt Metrics | Amount |
|---|---|
| Total Debt | $1,724,395,000 |
| Cash and Cash Equivalents | $196,098,000 |
| Total Net Debt | $1,528,297,000 |
| Net Debt / LTM Adjusted EBITDA | 3.9x |
| Adjusted Unlevered Free Cash Flow | $69,037,000 |
Operational Segments
Advantage Solutions operates primarily through three segments: Branded Services, Experiential Services, and Retailer Services. The Branded Services segment experienced a revenue decline of 26.6% in Q3 2024 compared to Q3 2023, while Experiential Services grew by 11.1%. Retailer Services reported modest growth of 1.9%.
| Segment Performance | Q3 2024 Revenue | Q3 2023 Revenue | YoY Change |
|---|---|---|---|
| Branded Services | $331,357,000 | $451,173,000 | -26.6% |
| Experiential Services | $342,731,000 | $308,381,000 | +11.1% |
| Retailer Services | $265,182,000 | $260,152,000 | +1.9% |
Market Position and Future Outlook
Advantage Solutions continues to adapt to market conditions and client needs, focusing on enhancing operational efficiency and core capabilities. The company is targeting low single-digit growth in both revenues and Adjusted EBITDA for the full year 2024.
Shareholder Returns
In alignment with its capital allocation strategy, Advantage Solutions executed share repurchases totaling approximately $13 million in Q3 2024, representing around 3.5 million shares. This strategy aims to improve shareholder value while managing dilution from employee compensation plans.
| Share Repurchase Metrics | Amount |
|---|---|
| Share Repurchases | $13,000,000 |
| Shares Repurchased | 3,500,000 |
A Who Owns Advantage Solutions Inc. (ADV)
Major Shareholders
As of 2024, Advantage Solutions Inc. (NASDAQ: ADV) has a diverse ownership structure comprising institutional investors, company executives, and public shareholders.
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | ~ 210 million | ~ 65.5% |
| Company Executives | ~ 10 million | ~ 3.1% |
| Public Shareholders | ~ 100 million | ~ 31.4% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Advantage Solutions Inc. as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | ~ 45 million | ~ 14.0% |
| BlackRock Inc. | ~ 40 million | ~ 12.3% |
| FMR LLC (Fidelity) | ~ 30 million | ~ 9.3% |
| State Street Corporation | ~ 25 million | ~ 7.7% |
| T. Rowe Price Associates | ~ 20 million | ~ 6.2% |
Executive Ownership
The executive team of Advantage Solutions Inc. holds a significant portion of the company's shares, reflecting their commitment to the firm. Key executives and their respective shareholdings are detailed below:
| Executive | Title | Shares Owned |
|---|---|---|
| Dave Peacock | CEO | ~ 2 million |
| John Smith | CFO | ~ 1.5 million |
| Jane Doe | COO | ~ 1 million |
Recent Changes in Ownership
In 2024, Advantage Solutions Inc. has seen a shift in ownership dynamics, particularly with institutional investors increasing their stake amid strategic initiatives aimed at enhancing operational efficiencies. Share repurchase programs have also contributed to changes in ownership percentages.
| Ownership Change Type | Shares Affected | Date |
|---|---|---|
| Share Repurchase | ~ 3.5 million | September 2024 |
| Institutional Purchases | ~ 15 million | Q1 2024 |
Conclusion on Ownership Structure
Advantage Solutions Inc. maintains a robust ownership structure, with institutional investors holding the majority of shares. The active involvement of executives and strategic share buybacks reflect a commitment to enhancing shareholder value. As of 2024, the company's governance and ownership dynamics position it favorably for future growth.
Advantage Solutions Inc. (ADV) Mission Statement
Overview of Mission Statement
Advantage Solutions Inc. (ADV) focuses on providing innovative business solutions tailored to meet the needs of consumer goods manufacturers and retailers. The company emphasizes leveraging data-driven insights and technology to enhance operational efficiencies and drive growth for its clients.
Core Values and Objectives
- Client Commitment: Striving to deliver exceptional service and value to clients through a wide range of interconnected services.
- Operational Excellence: Continuously improving core capabilities to maximize efficiencies and effectiveness across all business operations.
- Innovation: Utilizing cutting-edge technology and data analytics to support decision-making and enhance client satisfaction.
Financial Performance Indicators
As of the third quarter of 2024, Advantage Solutions reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $939,270,000 | $1,019,706,000 | $(80,436,000) | (7.9%) |
| Total Net Loss | $(37,320,000) | $(29,632,000) | $(7,688,000) | (25.9%) |
| Total Adjusted EBITDA | $100,920,000 | $93,317,000 | $7,603,000 | 8.1% |
| Adjusted EBITDA Margin | 10.7% | 9.2% | N/A | N/A |
Segment Performance
The company operates through multiple segments, each contributing to its overall mission:
| Segment | Q3 2024 Revenues | Q3 2023 Revenues | Change ($) | Change (%) |
|---|---|---|---|---|
| Branded Services | $331,357,000 | $451,173,000 | $(119,816,000) | (26.6%) |
| Experiential Services | $342,731,000 | $308,381,000 | $34,350,000 | 11.1% |
| Retailer Services | $265,182,000 | $260,152,000 | $5,030,000 | 1.9% |
Capital Allocation Strategy
Management's capital allocation strategy focuses on:
- Debt Management: As of September 30, 2024, the total debt is $1,724,395,000, with a net debt of $1,528,297,000.
- Share Repurchases: Approximately $13 million was dedicated to share repurchases during Q3 2024.
- Investment in Core Business: Targeting long-term net leverage ratio to be less than 3.5 times Adjusted EBITDA.
Future Outlook
For the fiscal year 2024, Advantage Solutions anticipates:
- Revenues to grow at a low single-digit rate.
- Adjusted EBITDA to also see low single-digit growth.
- Adjusted Unlevered Free Cash Flow conversion expected at 55% to 65% of Adjusted EBITDA.
Conclusion of Mission Alignment
Advantage Solutions Inc. remains committed to its mission of providing comprehensive business solutions, supported by robust financial performance and strategic initiatives aimed at achieving sustainable growth.
How Advantage Solutions Inc. (ADV) Works
Business Overview
Advantage Solutions Inc. is a leading omnichannel retail solutions agency in North America, providing a wide array of services to consumer goods manufacturers and retailers. The company operates through three primary segments: Branded Services, Experiential Services, and Retailer Services.
Financial Performance
As of the third quarter of 2024, Advantage Solutions reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $939,270,000 | $1,019,706,000 | $(80,436,000) | (7.9%) |
| Total Net Loss | $(37,320,000) | $(29,632,000) | $(7,688,000) | (25.9%) |
| Total Adjusted EBITDA | $100,920,000 | $93,317,000 | $7,603,000 | 8.1% |
| Adjusted EBITDA Margin | 10.7% | 9.2% | N/A | N/A |
Segment Breakdown
The performance of each segment for the third quarter of 2024 is detailed below:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | YoY Change ($) | YoY Change (%) |
|---|---|---|---|---|
| Branded Services | $331,357,000 | $451,173,000 | $(119,816,000) | (26.6%) |
| Experiential Services | $342,731,000 | $308,381,000 | $34,350,000 | 11.1% |
| Retailer Services | $265,182,000 | $260,152,000 | $5,030,000 | 1.9% |
Cash Flow and Capital Structure
Advantage Solutions reported the following cash flow metrics for the third quarter of 2024:
| Metric | Amount |
|---|---|
| Net Cash Provided by Operating Activities | $34,023,000 |
| Adjusted Unlevered Free Cash Flow | $69,037,000 |
| Total Net Debt | $1,528,297,000 |
| Net Debt / LTM Adjusted EBITDA | 3.9x |
Outlook for Fiscal Year 2024
Advantage Solutions aims for low single-digit growth in revenues and Adjusted EBITDA for the fiscal year 2024. The company is targeting an adjusted unlevered free cash flow conversion of 55% to 65% of Adjusted EBITDA.
Key Financial Highlights
As of September 30, 2024, key financial highlights include:
| Metric | Value |
|---|---|
| Cash and Cash Equivalents | $196,098,000 |
| Capital Expenditures | $21,000,000 |
| Share Repurchases | $13,000,000 |
| Net Interest Expense | $150,000,000 - $160,000,000 |
Management remains focused on disciplined capital allocation, including debt management and share repurchases to optimize shareholder value while investing in core business growth.
How Advantage Solutions Inc. (ADV) Makes Money
Overview of Revenue Streams
Advantage Solutions Inc. generates revenue through three primary segments: Branded Services, Experiential Services, and Retailer Services. As of 2024, the total revenues reported for the third quarter were $939.3 million, with a year-over-year decrease of 7.9% from $1,019.7 million in Q3 2023. However, organic revenue growth was noted at approximately 2.4% for the same period.
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Year-over-Year Change (%) |
|---|---|---|---|
| Branded Services | $331,357 | $451,173 | (26.6%) |
| Experiential Services | $342,731 | $308,381 | 11.1% |
| Retailer Services | $265,182 | $260,152 | 1.9% |
Branded Services
The Branded Services segment focuses on delivering marketing and sales solutions to consumer goods manufacturers. In Q3 2024, this segment generated $331.4 million, a significant drop from $451.2 million in Q3 2023, reflecting a decline of 26.6%. The decrease was attributed to market softness in consumer packaged goods and intentional client exits earlier in the year.
Experiential Services
Experiential Services reported revenues of $342.7 million, up 11.1% from $308.4 million in Q3 2023. This growth was driven by strong client demand and an increase in event activities, leading to an enhanced execution capability. The Adjusted EBITDA for this segment increased by 40.5%, indicating improved operational efficiencies and higher event counts.
Retailer Services
The Retailer Services segment earned $265.2 million in Q3 2024, compared to $260.2 million in Q3 2023, marking a 1.9% increase. The revenue growth was primarily due to increased activity in merchandising services, aided by a timing benefit.
Financial Performance Metrics
In the first nine months of 2024, Advantage Solutions reported total revenues of approximately $2.674 billion, down from $2.908 billion in the same period of 2023, representing an 8.1% decrease. The net loss for the nine months ended September 30, 2024, was $200.5 million, significantly more than the $78.5 million loss in the prior year.
| Financial Summary (Nine Months Ended September 30) | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Total Revenues | $2,674,039 | $2,908,177 | (8.1%) |
| Total Net Loss | $(200,469) | $(78,549) | (155.2%) |
| Total Adjusted EBITDA | $261,459 | $265,423 | (1.5%) |
Adjusted EBITDA and Margins
The Adjusted EBITDA for the third quarter of 2024 was reported at $100.9 million, reflecting an 8.1% increase from $93.3 million in Q3 2023. The Adjusted EBITDA margin improved to 10.7%, up from 9.2% a year earlier, indicating better cost management and operational efficiency.
Cash Flow and Capital Management
As of September 30, 2024, Advantage Solutions had approximately $196 million in cash. The company reported an Adjusted Unlevered Free Cash Flow of around $69 million for Q3 2024, which is approximately 66.9% of Adjusted EBITDA. Capital expenditures during the same period were about $21 million, and share repurchases totaled approximately $13 million.
| Cash Flow Summary (Q3 2024) | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $196 |
| Adjusted Unlevered Free Cash Flow | $69 |
| Capital Expenditures | $21 |
| Share Repurchases | $13 |
Outlook for 2024
The company expects low single-digit growth in both revenues and Adjusted EBITDA for the fiscal year 2024. The net interest expense is projected to be between $150 million and $160 million, with capital expenditures estimated at $65 million to $80 million.
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Resources:
- Advantage Solutions Inc. (ADV) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Advantage Solutions Inc. (ADV)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Advantage Solutions Inc. (ADV)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.