Advantage Solutions Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Advantage Solutions Inc. filed its 2023 10-K, detailing financial performance, assets, liabilities, and executive compensation.</b>

AI Summary

Advantage Solutions Inc. (ADV) filed a Annual Report (10-K) with the SEC on March 1, 2024. Filed 10-K for the fiscal year ending December 31, 2023. Includes financial data for periods including 2023, 2022, and 2021. Details on various financial instruments and liabilities, including warrant liabilities and contingent consideration. Reports on revenue segments such as Marketing Revenues and Marketing Brand-Centric Services. Discloses information on executive compensation and stock units.

Why It Matters

For investors and stakeholders tracking Advantage Solutions Inc., this filing contains several important signals. Provides a comprehensive overview of the company's financial health and operational performance for the fiscal year 2023. Offers insights into the company's capital structure, including details on common stock, warrants, and other equity instruments.

Risk Assessment

Risk Level: — Advantage Solutions Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report, but specific financial performance details and future outlook are not yet fully analyzed in this summary.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to assess the company's financial health and strategic direction.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-01 — Filing Date (Date of submission)
• 133 — Public Document Count (Number of documents in the filing)

Key Players & Entities

• Advantage Solutions Inc. (company) — Filer name
• Conyers Park II Acquisition Corp. (company) — Former company name
• 2023-12-31 (date) — Fiscal year end
• 2024-03-01 (date) — Filing date

FAQ

Risk Factors

• Impairment of Intangible Assets, Including Goodwill [medium — financial]: The company may recognize impairment charges on intangible assets, including goodwill, which could negatively impact financial results.
• Gain/Loss on Disposition of Assets [low — financial]: Fluctuations in gains or losses from the sale of assets can affect reported earnings.

Industry Context

Advantage Solutions Inc. operates in the business services sector, providing marketing and sales solutions to clients.

Regulatory Implications

The filing adheres to the requirements of the Securities Exchange Act of 1934, mandating comprehensive annual financial reporting.

What Investors Should Do

1. Analyze the detailed financial statements for revenue trends, profitability, and cash flow.
2. Examine the risk factors section for potential threats to the company's operations and financial stability.
3. Review executive compensation details and equity awards for insights into management incentives.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-01: Filing Date — Date the 10-K was officially filed with the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the official annual financial overview for Advantage Solutions Inc.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair market value of its net assets. (Potential impairment of goodwill can significantly impact a company's balance sheet and net income.)

Year-Over-Year Comparison

This is the 2023 annual report (10-K), providing updated financial and operational data compared to previous filings.

Key Financial Figures

• $0.0001 — hich registered Class A common stock, $0.0001 par value per share ADV Nasdaq Glob
• $11.50 — A common stock at an exercise price of $11.50 ADVWW Nasdaq Global Select Market
• $2.34 — reference to the closing sales price of $2.34 reported on the Nasdaq Global Select Ma

Filing Documents

• adv-20231231.htm (10-K) — 4365KB
• adv-ex10_12.htm (EX-10.12) — 204KB
• adv-ex10_14.htm (EX-10.14) — 121KB
• adv-ex10_5d.htm (EX-10.5(D)) — 23KB
• adv-ex21_1.htm (EX-21.1) — 44KB
• adv-ex23_1.htm (EX-23.1) — 4KB
• adv-ex31_1.htm (EX-31.1) — 16KB
• adv-ex31_2.htm (EX-31.2) — 16KB
• adv-ex32_1.htm (EX-32.1) — 10KB
• adv-ex32_2.htm (EX-32.2) — 10KB
• adv-ex97_1.htm (EX-97.1) — 40KB
• adv-ex97_1.pdf (EX-97.1) — 639KB
• img182782360_0.jpg (GRAPHIC) — 349KB
• img215636048_0.jpg (GRAPHIC) — 1KB
• img215636048_1.jpg (GRAPHIC) — 1KB
• img215636048_2.jpg (GRAPHIC) — 1KB
• img215636048_3.jpg (GRAPHIC) — 1KB
• img215636048_4.jpg (GRAPHIC) — 1KB
• 0000950170-24-023841.txt (&nbsp;) — 22007KB
• adv-20231231.xsd (EX-101.SCH) — 3161KB
• adv-20231231_htm.xml (XML) — 3866KB

Business

Item 1. Business 2

Risk Factors

Item 1A. Risk Factors 7

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 27

Cybersecurity

Item 1C. Cybersecurity 27

Properties

Item 2. Properties 28

Legal Proceedings

Item 3. Legal Proceedings 28

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 29 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29

[Reserved]

Item 6. [Reserved] 31

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 31

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 51

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 53

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 105

Controls and Procedures

Item 9A. Controls and Procedures 105

Other Information

Item 9B. Other Information 106

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 106 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 106

Executive Compensation

Item 11. Executive Compensation 106

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 106

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 106

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 106 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 107

Form 10-K Summary

Item 16. Form 10-K Summary 110

Signatures

Signatures Pa rt I

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K ("Annual Report") and other documents we file with the Securities and Exchange Commission ("SEC") contain forward-looking statements that are based on current expectations, estimates, forecasts and projections about us, our future performance, our business, our beliefs and our management's assumptions. In addition, we, or others on our behalf, may make forward-looking statements in press releases, written statements or our communications and discussions with investors and analysts in the normal course of business through meetings, webcasts, phone calls and conference calls. Such words as "expect," "anticipate," "outlook," "could," "target," "project," "intend," "plan," "believe," "seek," "estimate," "should," "may," "assume" and "continue" as well as variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and they involve certain risks, uncertainties and assumptions that are difficult to predict. We describe our respective risks, uncertainties and assumptions that could affect the outcome or results of operations in Part I, Item 1A. Risk Factors . We have based our forward-looking statements on our management's beliefs and assumptions based on information available to our management at the time the statements are made. We caution you that actual outcomes and results may differ materially from what is expressed, implied or forecasted by our forward-looking statements. Except as required under the federal securities laws and the rules and regulations of the SEC, we do not have any intention or obligation to update publicly any forward-looking statements after the distribution of this report, whether as a result of new information, future events, changes in assumptions or otherwise.

Business

Item 1. Business Our Company We are a leading business solutions provider to consumer goods manufacturers and retailers. We have a strong platform of competitively advantaged sales and marketing services built over multiple decades – essential, business critical services like headquarter sales, retail merchandising, in-store sampling, digital commerce and shopper marketing. For brands and retailers of all sizes, we help get the right products on the shelf (whether physical or digital) and into the hands of consumers (however they shop). We use a scaled platform to innovate as a trusted partner with our clients, solving problems to increase their efficiency and effectiveness across a broad range of channels. At the most fundamental level: We sit at the nexus of consumer goods companies and retailers and serve as a trusted partner to both. We help our clients sell more while spending less. We make them more effective and more efficient. We win by providing best-in-class service every day and innovating on a nimble operating platform. We drive productivity to provide fuel for reinvestment and growth. Simply put, we are built to do it better, cheaper and faster. We offer headquarter sales representation services to consumer goods manufacturers, for whom we prepare and present to retailers a business case to increase distribution of manufacturers' products and optimize how they are displayed, priced and promoted. We also make in-store merchandising visits for both manufacturer and retailer clients to ensure the products we represent are adequately stocked and properly displayed. Within our marketing services, our largest service offering is retail experiential, also known as in-store sampling or demonstrations, through which we create and manage highly customized large-scale sampling programs (both in-store and on-line) for leading retailers. We also have a collection of specialized agency businesses, where we provide private label services to retaile

View Full Filing

View this 10-K filing on SEC EDGAR