Consolidated Statements of Cash Flows(Unaudited) Six Months Ended June 30, (in thousands) 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $(103,950) $(55,524)Net income (loss) from discontinued operations, net of tax 59,199 (6,606)Net loss from continuing operations (163,149) (48,918)Adjustments to reconcile net loss to net cash provided by operating activities Noncash interest income (5,427) (9,500)Deferred financing fees related to repricing of long-term debt 1,079 — Amortization of deferred financing fees 3,470 4,238 Impairment of goodwill 99,670 — Depreciation and amortization 101,065 105,021 Change in fair value of warrant liability (399) — Fair value adjustments related to contingent consideration 1,678 8,969 Deferred income taxes (29,546) (33,403)Equity-based compensation of Karman Topco L.P. (480) (3,487)Stock-based compensation 16,082 20,417 Loss from unconsolidated investments (123) (3,002)Distribution received from unconsolidated affiliates 3,289 1,611 Gain on repurchases of Senior Secured Notes and Term Loan Facility debt (5,103) (4,969)Changes in operating assets and liabilities, net of effects from divestitures: Accounts receivable, net 9,268 32,854 Prepaid expenses and other assets 26,233 63,109 Accounts payable 32,834 (35,944)Accrued compensation and benefits (21,602) 2,435 Deferred revenues 2,449 12,501 Other accrued expenses and other liabilities (27,233) (11,523)Net cash provided by operating activities from continuing operations 44,055 100,409 Net cash provided by operating activities from discontinued operations 6,368 4,581 Net cash provided by operating activities 50,423 104,990 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investment in unconsolidated affiliates (10,932) — Purchase of property and equipment (25,029) (14,046)Proceeds from divestitures, net of cash from divestitures 146,828 12,763 Net cash provided by (used in) investing activities from continuing operations 110,867 (1,283)Net cash used in investing activities from discontinued operations (7,332) (4,506)Net cash provided by (used in) investing activities 103,535 (5,789)CASH FLOWS FROM FINANCING ACTIVITIES Borrowings under lines of credit — 72,735 Payments on lines of credit — (71,278)Principal payments on long-term debt (6,637) (6,741)Repurchases of Senior Secured Notes and Term Loan Facility debt (71,749) (49,427)Debt issuance costs (971) — Proceeds from issuance of common stock 1,167 1,193 Payments for taxes related to net share settlement under 2020 Incentive Award Plan (11,113) (1,277)Contingent consideration payments (4,455) (1,867)Holdback payments — (656)Redemption of noncontrolling interest — (154)Purchase of treasury stock (20,775) — Net cash used in financing activities from continuing operations (114,533) (57,472)Net cash (used in) provided by financing activities from discontinued operations (4,243) 397 Net cash used in financing activities (118,776) (57,075)Net effect of foreign currency changes on cash from continuing operations (2,579) 1,843 Net effect of foreign currency changes on cash from discontinued operations (435) (349)Net effect of foreign currency changes on cash (3,014) 1,494 Net change in cash, cash equivalents and restricted cash 32,168 43,620 Cash, cash equivalents and restricted cash, beginning of period 137,202 138,532 Cash, cash equivalents and restricted cash, end of period 169,370 182,152 Less: Cash, cash equivalents and restricted cash of discontinued operations — 2,824 Cash, cash equivalents and restricted cash, end of period $169,370 $179,328 SUPPLEMENTAL CASH FLOW INFORMATION (Gain) loss on divestitures from discontinued operations $(70,195) $17,655 Purchase of property and equipment recorded in accounts payable and accrued expenses $10,660 $1,507 Advantage Solutions Inc.
Adjusted EBITDA from Continuing Operations and Adjusted EBITDA from Discontinued Operations means net (loss) income before (i) interest expense (net), (ii) provision for (benefit from) income taxes, (iii) depreciation, (iv) amortization of intangible assets, (v) impairment of goodwill, (vi) changes in fair value of warrant liability, (vii) stock-based compensation expense, (viii) equity-based compensation of Karman Topco L.P., (ix) fair value adjustments of contingent consideration related to acquisitions, (x) acquisition and divestiture related expenses, (xi) (gain) loss on divestitures, (xii) reorganization expenses, (xiii) litigation expenses (recovery), (xiv) costs associated with COVID-19, net of benefits received, (xv) costs associated with (recovery from) the Take 5 Matter, (xvi) EBITDA for economic interests in investments and (xvii) other adjustments that management believes are helpful in evaluating our operating performance.
Reconciliation of Net Income (Loss) to Adjusted EBITDA(Unaudited) Continuing OperationsThree Months Ended June 30, Six Months Ended June 30, (in thousands)2024 2023 2024 2023 Net loss from continuing operations$(113,016) $(13,024) $(163,149) $(48,918)Add: Interest expense, net 39,754 30,446 75,515 77,608 Benefit from income taxes (17,311) (2,244) (33,176) (9,416)Depreciation and amortization 51,317 52,477 101,065 105,021 Impairment of goodwill 99,670 — 99,670 — Change in fair value of warrant liability (686) 73 (399) — Stock-based compensation expense(h) 7,528 10,012 16,082 20,417 Equity-based compensation of Karman Topco L.P.(a) (872) (1,218) (480) (3,487)Fair value adjustments related to contingent consideration related to acquisitions(b) 900 4,648 1,678 8,969 Acquisition and divestiture related expenses(c) (1,774) 395 (1,334) 2,732 Reorganization expenses(d) 20,291 5,794 55,343 16,932 Litigation (recovery) expenses(e) (993) 4,350 (709) 4,350 Costs associated with COVID-19, net of benefits received(f) — 2,317 — 3,334 Costs associated with the Take 5 Matter, net of (recoveries)(g) 456 (1,576) 696 (1,496)EBITDA for economic interests in investments(i) 4,634 (2,596) 9,737 (3,940)Adjusted EBITDA from Continuing Operations$89,898 $89,854 $160,539 $172,106 Discontinued OperationsThree Months Ended June 30, Six Months Ended June 30, (in thousands)2024 2023 2024 2023 Net income (loss) from discontinued operations$12,181 $5,178 $59,199 $(6,606)Add: Interest expense, net 16 14 48 43 Benefit from income taxes (2,377) 1,828 11,860 1,304 Depreciation and amortization 1,883 4,261 4,491 8,821 Fair value adjustments related to contingent consideration related to acquisitions(b) 1,972 420 1,883 391 Acquisition and divestiture related expenses(c) 2,224 103 3,103 198 (Gain) loss on divestitures (13,179) 1,158 (70,195) 17,655 Reorganization expenses(d) 5,211 43 7,285 53 Stock-based compensation expense(h) 102 1,214 (1,232) 2,019 EBITDA for economic interests in investments(i) (95) 139 (385) 298 Adjusted EBITDA from Discontinued Operations$7,938 $14,358 $16,057 $24,176 Branded Services SegmentThree Months Ended June 30, Six Months Ended June 30, (in thousands)2024 2023 2024 2023 Operating (loss) income from continuing operations$(107,280) $8,920 $(129,398) $12,206 Add: Depreciation and amortization 32,327 35,609 64,314 71,181 Impairment of goodwill 99,670 — 99,670 — Stock-based compensation expense(h) 2,797 4,318 6,723 7,620 Equity-based compensation of Karman Topco L.
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