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Advantage Solutions Restructures Operations

Advantage Solutions Inc. has recently released its 10-Q report, providing a detailed insight into the company's financial performance and operations. The company operates in two segments, Sales and Marketing, offering a wide range of brand-centric and retailer-centric services to consumer goods manufacturers and retailers in North America and internationally. Advantage Solutions Inc. was formerly known as Karman Holding Corp. and was founded in 1987, with its headquarters in Irvine, California.

In the 10-Q report, Advantage Solutions Inc. stated that their revised reportable segments consist of Branded Services, Experiential Services, and Retailer Services. The company has reorganized its portfolio of businesses into a new, simplified structure, aligning its business capabilities with economic buyers. As a result of this reorganization, the company has disposed of certain business units and is evaluating opportunities to further simplify its operations to focus more resources on its core businesses.

The report also includes a detailed breakdown of the company's financial performance for the three months ended March 31, 2024, compared to the same period in 2023. Key financial highlights include a 6.9% decrease in revenues to $879.0 million, a 496.8% decrease in operating loss from continuing operations to $26.8 million, and a $14.7 million increase in net loss from continuing operations to $49.1 million. Adjusted Net Income increased by 8.3% to $14.9 million, while Adjusted EBITDA from continuing and discontinued operations decreased by 14.5% to $78.8 million.

The company also outlined several factors affecting its business and financial reporting, including organic growth, acquisitions and divestitures, contingent consideration, depreciation and amortization, foreign exchange fluctuations, and seasonality. Advantage Solutions Inc. provided a detailed explanation of how it assesses the performance of its business, particularly in terms of analyzing revenue growth attributable to organic activities and acquired revenues.

Following these announcements, the company's shares moved -6.1%, and are now trading at a price of $3.51. For more information, read the company's full 10-Q submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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