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ADVANTAGE SOLUTIONS Advantage Solutions Reports Healthy Third Quarter 2021 Financial Results and Affirms 2021 Outlook November 9 , 2021 IRVINE , Calif . , Nov. 09 , 2021 ( GLOBE NEWSWIRE ) -- Advantage Solutions Inc. ( NASDAQ : ADV ) ( " Advantage , " the " Company , " " we " or " our " ) , the leading provider of outsourced sales and marketing services to consumer goods manufacturers and retailers , today reported financial results for its fiscal third quarter ended September 30 , 2021 . " We are pleased with how our team navigated the third quarter , " said Tanya Domier , Chief Executive Officer of Advantage . " At - home consumer demand remains elevated – supported by steady volume and rising prices . Our higher growth , higher margin digital services continue to outperform . And we are investing and will continue to invest to stand up critical services for brands and retailers , " Domier commented . " While the operating environment remains dynamic during the pandemic , we're confident in delivering against FY 2021 Adjusted EBITDA guidance of $ 520 to $ 530 million . Demand for our essential services remains high as we help our partners navigate through unprecedented change - in both brick - and - mortar and e - commerce . And we've been disciplined in realizing price to offset wage inflation in our most labor intensive services . " " Importantly , I'd like to again thank our associates . They're providing essential , high ROI services to consumer goods companies and retailers - helping to lead our clients and communities out of this pandemic better , cheaper and faster , " Domier added . Third Quarter 2021 Highlights • Revenues were $ 928.8 million for the third quarter of 2021 , representing an increase of $ 144.4 million , or 18.4 % , from the third quarter of 2020 revenues of $ 784.3 million . • Operating income was $ 65.6 million for the third quarter of 2021 , representing a decline of $ 23.0 million , or 26.0 % , from the third quarter of 2020 operating income of $ 88.6 million . • Net income was $ 24.3 million for the third quarter of 2021 , representing a decline of $ 12.4 million , or 33.8 % , from the third quarter of 2020 net income of $ 36.7 million . • Adjusted EBITDA was $ 133.8 million for the third quarter of 2021 , representing a decline of $ 2.5 million , or 1.8 % , from the third quarter of 2020 Adjusted EBITDA of $ 136.3 million . The year - over - year increase in revenues was driven by $ 89.3 million of growth in the marketing segment ( an increase of 37 % year - over - year ) , and $ 55.1 million of growth in the sales segment ( an increase of 10 % year - over - year ) . Third quarter growth in the marketing segment was driven by continued sequential recovery in product demonstration and sampling and sustained outperformance in our digital businesses . Third quarter growth in the sales segment was driven by continued growth in our retailer merchandising services and a rebound in international . The year - over - year decline in operating income was driven primarily by a difficult comparison given a favorable settlement of lease liability obligations associated with real estate realignment initiatives in 2020 and a non - cash change in fair value adjustments related to contingent consideration . The year - over - year decline in net income was driven primarily by lower operating income , partially offset by lower year - on - year interest expense and a fair value adjustment to warrant liability . The year - over - year decline in Adjusted EBITDA was driven primarily by investments to stand up tens of thousands of associates in two areas - the fast - growing retail merchandising operation , and the sampling and demonstration business that's coming back to life post - COVID . Adjusted EBITDA was also impacted by expected volume normalization in headquarter sales services and by the roll - off of ancillary COVID - related services that aided EBITDA in the prior year . Balance Sheet Highlights As of September 30 , 2021 , the Company's cash and cash equivalents was $ 168.0 million , total debt was $ 2,039.0 million and Net Debt was $ 1,925.0 million . The debt capitalization consists primarily of a $ 1,315.1 million First Lien Term Loan facility , $ 775 million of senior secured notes and a $ 400 million revolving credit facility , under which no balance was outstanding as of September 30 , 2021 . Subsequent Events On October 28 , 2021 , Advantage successfully repriced its $ 1,315 million First Lien Term Loan facility . The spread on its floating rate term loan was reduced by 75 basis points from Libor + 5.25 % to Libor + 4.50 % . The facility remains subject to the 0.75 % Libor floor . The effective rate on this facility at the floor was reduced from 6.00 % to 5.25 % , and yields a projected interest savings of $ 10 million , or $ 7 million after tax . On November 9 , 2021 , Advantage announced that its Board of Directors had approved and authorized an open - ended share repurchase program up to $ 100 million . This program will allow Advantage to be opportunistic in allocating capital to share repurchase . Advantage CEO Tanya Domier noted , " As long - term stewards and owners , we are excited to have the flexibility to invest opportunistically in the asset we know best – our own stock . " COVID - 19 Update Advantage continues to monitor the impact of the COVID - 19 pandemic on its business and remains focused on : ensuring its ability to safeguard the health of its employees , maintaining high service levels for brand and retailer clients so that essential products are available to consumers in - store and online , and preserving financial liquidity to mitigate the uncertainty caused by the pandemic .