- Packaging System placement up 0.4% year over year to
approximately 141.2 thousand machines at June 30, 2024
- Net revenue for the second quarter increased 5.5% year over
year to $86.4 million and increased 5.9% year over year on a
constant currency basis to $89.6 million
- Net income for the second quarter of $5.5 million compared
to net loss of $2.1 million for the prior year period
- Constant Currency Adjusted EBITDA (“AEBITDA”) for the second
quarter of $20.4 million up 7.4%, or $1.4 million, year over
year
Ranpak Holdings Corp. (NYSE: PACK) (“Ranpak” or “the Company”),
a leading provider of environmentally sustainable, systems-based,
product protection and end-of-line automation solutions for
e-Commerce and industrial supply chains, today reported its second
quarter 2024 financial results.
Omar Asali, Chairman and Chief Executive Officer, commented, “We
are pleased to build on our momentum to start the year and deliver
a solid performance in the second quarter that included growth in
volumes, sales, Adjusted EBITDA and an increase in our cash
position. Sales for the quarter increased 5.5% year over year, or
5.9% on a constant currency basis, driven by an 8.8% volume
increase fueled by a meaningful uptick in strategic account
activity in North America and a 3.2% volume growth rate in the
quarter in Europe and APAC. The input cost environment remained
roughly inline with the first quarter and resulted in gross profit
growth of 5.0% or 5.4% on a constant currency basis, implying a
gross margin of 36.7%. The improved volume growth and gross profit
drove a 7.4% increase in Adjusted EBITDA for the quarter continuing
our steady progress on deleveraging, achieving a 4.2x net debt to
LTM Adjusted EBITDA ratio on a constant currency basis as of the
end of the second quarter. In addition to driving volume growth,
deleveraging to 3.0x or below and generating cash remain our key
priorities at Ranpak.”
“We were pleased to execute on our strategic account activity
plan in the second quarter and see the beginnings of large
e-commerce players in North America making the plastic to paper
shift while publicly citing the benefits of paper versus air
pillows. Although activity levels at many of the consumer and
industrial customers we serve remain constrained due to persistent
interest rate and inflationary pressures, we believe we are well
positioned to benefit from continued volume growth for the year as
our strategic account initiatives began to bear fruit and build
from here. We believe this is only the beginning as these sites
ramp up and our additional actions begin to be layered in later
this year, which we expect will provide us with solid momentum
going into 2025.
In addition to the sustainability momentum, our Automation and
data capabilities are increasingly becoming a key differentiator in
discussions with large accounts. Our value-added solutions provide
customers with insights into their business as well as cost savings
opportunities, enabling us to have much deeper and broader
relationships across these organizations. I truly believe we have
changed the game at Ranpak, and the world is beginning to see
Ranpak brings a lot more to the table than it did a few years
ago.”
Second Quarter 2024 Highlights
- Packaging systems placement increased 0.4% year over year, to
approximately 141.2 thousand machines as of June 30, 2024
- Net revenue increased 5.5% and increased 5.9% adjusting for
constant currency
- Net income of $5.5 million compared to net loss of $2.1 million
for the prior year period
- Constant currency AEBITDA1 of $20.4 million for the three
months ended June 30, 2024 is up 7.4%
Net revenue for the second quarter of 2024 was $86.4 million
compared to $81.9 million in the second quarter of 2023, an
increase of $4.5 million or 5.5% year over year. Net revenue was
positively impacted by an increase in void-fill, partially offset
by a decrease in cushioning and other net revenue. Other net
revenue includes automated box sizing equipment and non-paper
revenue from packaging systems installed in the field, such as
systems accessories. Cushioning decreased $1.6 million, or 4.4%, to
$35.0 million from $36.6 million; void-fill increased $6.6 million,
or 21.2%, to $37.7 million from $31.1 million; wrapping remained
constant at $8.4 million; and other sales decreased $0.5 million,
or 8.6%, to $5.3 million from $5.8 million for the second quarter
of 2024 compared to the second quarter of 2023. The increase in net
revenue is quantified by an increase in the volume of sales of our
paper consumable products of approximately 8.8%, partially offset
by a 2.5% decrease in the price or mix of our paper consumable
products and a 0.4% decrease in sales of automated box sizing
equipment. Constant currency net revenue was $89.6 million for the
second quarter of 2024, a 5.9% increase from $84.6 million from the
second quarter of 2023.
Net revenue in North America for the second quarter of 2024
totaled $37.7 million compared to $32.2 million in the second
quarter of 2023. The increase of $5.5 million, or 17.1%, was
primarily attributable to an increase in void-fill sales, partially
offset by decreases in wrapping and other sales.
Net revenue in Europe/Asia for the second quarter of 2024
totaled $48.7 million compared to $49.7 million in the second
quarter of 2023. The decrease of $1.0 million, or 2.0%, was driven
by decreases in void-fill and cushioning, partially offset by
increases in wrapping and other sales. Constant currency net
revenue in Europe/Asia was $51.9 million for the second quarter of
2024, a $0.5 million, or 1.0%, decrease from $52.4 million for the
second quarter of 2023.
_________________________
1 Please refer to “Non-GAAP Financial
Data” in this press release for an explanation and related
reconciliation of the Company’s non-GAAP financial measures and
further discussion related to certain other non-GAAP metrics
included in this press release.
Year-to-Date 2024 Highlights
- Net revenue increased 5.3% and increased 5.1% adjusting for
constant currency
- Net loss of $2.6 million compared to net loss of $14.5 million
for the prior year period
- Constant currency AEBITDA of $40.6 million for the six months
ended June 30, 2024 is up 19.1%
Balance Sheet and Liquidity
Ranpak completed the second quarter of 2024 with a strong
liquidity position, including a cash balance of $65.1 million and
no borrowings on its $45 million Revolving Credit Facility, which
matures in June 2025. As of June 30, 2024, the Company had $250.0
million of USD-denominated term loans and €133.4 million of
euro-denominated term loans outstanding under its First Lien Term
Loan facilities, resulting in an Adjusted EBITDA net leverage ratio
of 4.2x based on results on a constant currency basis through the
second quarter of 2024. The First Lien Term Loan facilities mature
in June 2026.
The following table presents Ranpak’s installed base of
protective packaging systems by product line as of June 30, 2024
and 2023:
June 30, 2024
June 30, 2023
Change
% Change
PPS Systems
(in thousands)
Cushioning machines
34.9
35.0
(0.1
)
(0.3
)
Void-Fill machines
83.9
83.3
0.6
0.7
Wrapping machines
22.4
22.4
—
—
Total
141.2
140.7
0.5
0.4
Conference Call Information
The Company will host a conference call and webcast at 8:30 a.m.
(ET) on Thursday, August 1, 2024. The conference call and earnings
presentation will be webcast live at the following link:
https://events.q4inc.com/attendee/405040634. Investors who cannot
access the webcast may listen to the conference call live via
telephone by dialing (800) 715-9871 and use the Conference ID:
5813434.
A telephonic replay of the webcast also will be available
starting at 11:30 a.m. (ET) on Thursday, August 1, 2024 and ending
at 11:59 p.m. (ET) on Thursday, August 8, 2024. To listen to the
replay, please dial (800) 770-2030 and use the passcode:
5813434.
Note Regarding Forward-Looking Statements
This news release contains “forward-looking statements” within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”). Statements that are not historical
facts are forward-looking statements. Our forward-looking
statements include, but are not limited to, statements regarding
our or our management team’s expectations, hopes, beliefs,
intentions or strategies regarding the future. In addition, any
statements that refer to estimates, projections, forecasts or other
characterizations of future events or circumstances, including any
underlying assumptions, are forward-looking statements. The words
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“forecast,” “intend,” “may,” “might,” “plan,” “possible,”
“potential,” “predict,” “project,” “should,” “would” and similar
expressions may identify forward-looking statements, but the
absence of these words does not mean that a statement is not
forward- looking. Forward-looking statements in this news release
include, for example, statements about our expectations around the
future performance of the business, including our forward-looking
guidance.
The forward-looking statements contained in this news release
are based on our current expectations and beliefs concerning future
developments and their potential effects on us taking into account
information currently available to us. There can be no assurance
that future developments affecting us will be those that we have
anticipated. These forward-looking statements involve a number of
risks, uncertainties (some of which are beyond our control) or
other assumptions that may cause actual results or performance to
be materially different from those expressed or implied by these
forward-looking statements. These risks include, but are not
limited to: (i) our inability to secure a sufficient supply of
paper to meet our production requirements; (ii) the impact of
rising prices on production inputs, including labor, energy, and
freight on our results of operations; (iii) the impact of the price
of kraft paper on our results of operations; (iv) our reliance on
third party suppliers; (v) geopolitical conflicts and other social
and political unrest or change; (vi) the high degree of competition
and continued consolidation in the markets in which we operate;
(vii) consumer sensitivity to increases in the prices of our
products, changes in consumer preferences with respect to paper
products generally or customer inventory rebalancing; (viii)
economic, competitive and market conditions generally, including
macroeconomic uncertainty, the impact of inflation, and variability
in energy, freight, labor and other input costs; (ix) the loss of
certain customers; (x) our failure to develop new products that
meet our sales or margin expectations or the failure of those
products to achieve market acceptance; (xi) our ability to achieve
our environmental, social and governance (“ESG”) goals and maintain
the sustainable nature of our product portfolio and fulfill our
obligations under evolving ESG standards; (xii) our ability to
fulfill our obligations under new disclosure regimes relating to
ESG matters, such as the European Sustainability Disclosure
Standards recently adopted by the European Union (“EU”) under the
EU’s Corporate Sustainability Reporting Directive (“CSRD”); (xiii)
our future operating results fluctuating, failing to match
performance or to meet expectations; (xiv) our ability to fulfill
our public company obligations; and (xv) other risks and
uncertainties indicated from time to time in filings made with the
SEC.
Should one or more of these risks or uncertainties materialize,
they could cause our actual results to differ materially from the
forward-looking statements. We are not undertaking any obligation
to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise. You should
not take any statement regarding past trends or activities as a
representation that the trends or activities will continue in the
future. Accordingly, you should not put undue reliance on these
statements.
Ranpak Holdings Corp.
Unaudited Condensed
Consolidated Statements of Operations and Comprehensive Income
(Loss)
(in millions, except share and
per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Paper revenue
$
67.5
$
63.3
$
133.7
$
127.6
Machine lease revenue
13.6
12.7
26.4
25.5
Other revenue
5.3
5.9
11.6
10.0
Net revenue
86.4
81.9
171.7
163.1
Cost of goods sold
54.7
51.7
107.7
105.4
Gross profit
31.7
30.2
64.0
57.7
Selling, general and
administrative expenses
27.3
16.3
55.2
43.5
Depreciation and amortization
expense
8.3
8.1
16.7
16.1
Other operating expense, net
1.3
1.4
2.1
2.6
Income (loss) from
operations
(5.2
)
4.4
(10.0
)
(4.5
)
Interest expense
5.3
5.9
11.5
11.6
Foreign currency (gain) loss
0.1
0.7
(1.3
)
0.9
Other non-operating income,
net
(17.9
)
(0.4
)
(17.9
)
(0.7
)
Income (loss) before income tax expense
(benefit)
7.3
(1.8
)
(2.3
)
(16.3
)
Income tax expense (benefit)
1.8
0.3
0.3
(1.8
)
Net income (loss)
$
5.5
$
(2.1
)
$
(2.6
)
$
(14.5
)
Two-class method
Basic and diluted income (loss)
per share
$
0.07
$
(0.03
)
$
(0.03
)
$
(0.18
)
Class A – basic and diluted income (loss)
per share
$
0.07
$
(0.03
)
$
(0.03
)
$
(0.18
)
Class C – basic and diluted income (loss)
per share
$
0.07
$
(0.03
)
$
(0.03
)
$
(0.17
)
Weighted average number of shares
outstanding – Class A and C – basic
83,071,520
82,432,158
82,876,914
82,285,291
Weighted average number of shares
outstanding – Class A and C – diluted
83,123,636
82,432,158
82,876,914
82,285,291
Other comprehensive income
(loss), before tax
Foreign currency translation
adjustments
$
(0.1
)
$
(1.2
)
$
(2.2
)
$
0.9
Interest rate swap
adjustments
(0.8
)
(1.0
)
(3.4
)
(3.1
)
Total other comprehensive
loss, before tax
(0.9
)
(2.2
)
(5.6
)
(2.2
)
Benefit for income taxes related
to other comprehensive income (loss)
(0.1
)
(0.4
)
—
(1.2
)
Total other comprehensive
loss, net of tax
(0.8
)
(1.8
)
(5.6
)
(1.0
)
Comprehensive income (loss), net of
tax
$
4.7
$
(3.9
)
$
(8.2
)
$
(15.5
)
Ranpak Holdings Corp.
Unaudited Condensed
Consolidated Balance Sheets
(in millions, except share
data)
June 30, 2024
December 31, 2023
Assets
Current assets
Cash and cash equivalents
$
65.1
$
62.0
Accounts receivable, net
36.5
31.6
Inventories, net
26.0
17.3
Income tax receivable
7.5
0.9
Prepaid expenses and other
current assets
12.4
13.1
Total current assets
147.5
124.9
Property, plant and equipment,
net
139.1
142.1
Operating lease right-of-use
assets, net
22.2
23.7
Goodwill
446.8
450.1
Intangible assets, net
328.7
345.4
Deferred tax assets
0.1
0.1
Other assets
35.6
36.4
Total assets
$
1,120.0
$
1,122.7
Liabilities and Shareholders'
Equity
Current liabilities
Accounts payable
$
26.2
$
17.6
Accrued liabilities and other
23.5
22.1
Current portion of long-term
debt
2.6
2.5
Operating lease liabilities,
current
3.9
3.8
Deferred revenue
2.4
2.0
Total current liabilities
58.6
48.0
Long-term debt
393.5
397.8
Deferred tax liabilities
72.4
71.6
Derivative instruments
4.3
6.3
Operating lease liabilities,
non-current
22.5
24.7
Other liabilities
2.5
2.3
Total liabilities
553.8
550.7
Commitments and contingencies – Note
13
Shareholders' equity
Class A common stock, $0.0001 par,
200,000,000 shares authorized at June 30, 2024 and December 31,
2023; shares issued and outstanding: 80,289,912 and 79,684,170 at
June 30, 2024 and December 31, 2023, respectively
—
—
Convertible Class C common stock, $0.0001
par, 200,000,000 shares authorized at June 30, 2024 and December
31, 2023; shares issued and outstanding: 2,921,099 at June 30, 2024
and December 31, 2023
—
—
Additional paid-in capital
696.1
693.7
Accumulated deficit
(126.4
)
(123.8
)
Accumulated other comprehensive
income (loss)
(3.5
)
2.1
Total shareholders' equity
566.2
572.0
Total liabilities and
shareholders' equity
$
1,120.0
$
1,122.7
Ranpak Holdings Corp.
Unaudited Condensed
Consolidated Statements of Cash Flows (in millions)
Six Months Ended June
30,
2024
2023
Cash Flows from Operating
Activities
Net loss
$
(2.6
)
$
(14.5
)
Adjustments to reconcile net loss
to net cash provided by operating activities:
Depreciation and amortization
35.5
33.0
Amortization of deferred
financing costs
1.4
0.9
Loss on disposal of property and
equipment
0.6
0.8
Gain on sale of patents
(5.4
)
—
Deferred income taxes
3.7
(0.3
)
Amortization of initial value of
interest rate swap
(1.2
)
(0.9
)
Currency (gain) loss on foreign
denominated debt and notes payable
(1.3
)
0.8
Stock-based compensation
expense
2.8
(6.7
)
Amortization of cloud-based
software implementation costs
1.8
1.5
Unrealized loss on strategic
investments
3.5
—
Changes in operating assets and
liabilities:
(Increase) decrease in
receivables, net
(5.6
)
(1.5
)
(Increase) decrease in
inventory
(8.8
)
2.8
(Increase) decrease in income tax
receivable
(6.6
)
(2.0
)
(Increase) decrease in prepaid
expenses and other assets
(2.6
)
(3.5
)
Increase (decrease) in accounts
payable
9.5
1.5
Increase (decrease) in accrued
liabilities
3.4
2.3
Change in other assets and
liabilities
(3.3
)
2.4
Net cash provided by operating
activities
24.8
16.6
Cash Flows from Investing
Activities
Purchases of converter
equipment
(15.3
)
(11.0
)
Purchases of other property,
plant, and equipment
(4.4
)
(14.2
)
Proceeds from sale of patents
5.4
—
Cash paid for strategic
investments
(4.8
)
—
Net cash used in investing
activities
(19.1
)
(25.2
)
Cash Flows from Financing
Activities
Principal payments on term
loans
(0.8
)
(1.1
)
Financing costs of debt
facilities
—
(0.2
)
Proceeds from equipment
financing
0.7
1.9
Payments on equipment
financing
(0.5
)
—
Payments on finance lease
liabilities
(0.6
)
(0.8
)
Tax payments for withholdings on
stock-based awards distributed
(0.4
)
(0.5
)
Net cash used in financing
activities
(1.6
)
(0.7
)
Effect of Exchange Rate
Changes on Cash
(1.0
)
0.4
Net Increase (Decrease) in
Cash and Cash Equivalents
3.1
(8.9
)
Cash and Cash Equivalents,
beginning of period
62.0
62.8
Cash and Cash Equivalents, end of
period
$
65.1
$
53.9
Non-GAAP Financial Data
In this press release, we present Earnings Before Interest,
Taxes, Depreciation and Amortization (“EBITDA”) and constant
currency EBITDA and constant currency adjusted EBITDA (“Constant
currency AEBITDA”), which are non-GAAP financial measures. We have
included EBITDA, constant currency EBITDA and Constant Currency
AEBITDA because they are key measures used by our management and
board of directors to understand and evaluate our operating
performance and trends, to prepare and approve our annual budget
and to develop short- and long-term operational plans. In
particular, the exclusion of certain expenses in calculating EBITDA
and Constant Currency AEBITDA can provide a useful measure for
period-to-period comparisons of our primary business operations.
Adjusting AEBITDA for comparability for constant currency also
assists in this comparison as it allows a better insight into the
performance of our businesses that operate in currencies other than
our reporting currency. Before consolidation, our Europe/Asia
financial data is derived in Euros. To calculate the adjustment
that we apply to present AEBITDA on a constant currency basis, we
multiply this Euro-derived data by 1.15 to reflect an exchange rate
of 1 Euro to 1.15 USD, which we believe is a reasonable exchange
rate to use to give a stable depiction of the business without
currency fluctuations between periods, to calculate Europe/Asia
data in constant currency USD. An exchange rate of 1.15
approximates the average exchange rate of the Euro to USD over the
past five years. We also present non-GAAP constant currency net
revenue and derive it in the same manner.
However, EBITDA, constant currency EBITDA and Constant Currency
AEBITDA have limitations as analytical tools, and you should not
consider them in isolation or as substitutes for analysis of our
results as reported under GAAP. In particular, EBITDA, constant
currency EBITDA and Constant Currency AEBITDA should not be viewed
as substitutes for, or superior to, net income (loss) prepared in
accordance with GAAP as a measure of profitability or liquidity.
Some of these limitations are:
- although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized may have to be replaced
in the future, and EBITDA, constant currency EBITDA and constant
currency AEBITDA do not reflect all cash capital expenditure
requirements for such replacements or for new capital expenditure
requirements;
- EBITDA, constant currency EBITDA and constant currency AEBITDA
do not reflect changes in, or cash requirements for, our working
capital needs;
- constant currency AEBITDA does not consider the potentially
dilutive impact of equity-based compensation;
- EBITDA, constant currency EBITDA and constant currency AEBITDA
do not reflect the impact of the recording or release of valuation
allowances or tax payments that may represent a reduction in cash
available to us;
- constant currency AEBITDA does not take into account any
restructuring and integration costs;
- constant currency EBITDA and constant currency AEBITDA are
presented on a constant currency basis and give effect to the
impact of currency fluctuations; and
- other companies, including companies in our industry, may
calculate EBITDA, constant currency EBITDA and constant currency
AEBITDA differently, which reduces their usefulness as comparative
measures.
EBITDA — EBITDA is a non-GAAP financial measure that we
calculate as net income (loss), adjusted to exclude: benefit from
(provision for) income taxes; interest expense; and depreciation
and amortization.
Constant currency EBITDA — Constant currency EBITDA is a
non-GAAP financial measure that we present on a constant currency
basis and we calculate as net income (loss), adjusted to exclude:
benefit from (provision for) income taxes; interest expense; and
depreciation and amortization.
Constant Currency AEBITDA — Constant Currency AEBITDA is
a non-GAAP financial measure that we present on a constant currency
basis and calculate as net income (loss), adjusted to exclude:
benefit from (provision for) income taxes; interest expense;
depreciation and amortization; stock-based compensation expense;
and, in certain periods, certain other income and expense items; as
further adjusted to reflect the performance of the business on a
constant currency basis.
We present constant currency EBITDA and Constant Currency
AEBITDA on a constant currency basis because it allows a better
insight into the performance of our businesses that operate in
currencies other than our reporting currency. Before consolidation,
our Europe/Asia financial data is derived in Euros. To calculate
the adjustment that we apply to present constant currency EBITDA
and Constant Currency AEBITDA on a constant currency basis, we
multiply this Euro-derived data by 1.15 to reflect an exchange rate
of 1 Euro to 1.15 U.S. dollars (“USD”), which we believe is a
reasonable exchange rate to use to give a stable depiction of the
business without currency fluctuations between periods, to
calculate Europe/ Asia data in constant currency USD. We believe
that using an exchange rate of 1.15 is reasonable because it
approximates the average exchange rate of the Euro to USD over the
past five years. In addition, we include certain other unaudited,
non- GAAP constant currency data for the three and six months ended
June 30, 2024 and 2023.
This data is based on our historical financial statements,
adjusted (where applicable) to reflect a constant currency
presentation between periods for the convenience of readers. We
reconcile this data to our GAAP data for the same period for the
three and six months ended June 30, 2024 and 2023. Dollar amounts
are presented in millions. “NM” represents “not meaningful.”
Ranpak Holdings Corp.
Non-GAAP Financial Data
Reconciliation and Comparison of GAAP
Statement of Income Data to Non-GAAP EBITDA and Constant Currency
AEBITDA For the Second Quarter of 2024 and 2023 (in
millions)
Please refer to our discussion and
definitions of Non-GAAP financial measures
Three Months Ended June
30,
2024
2023
$ Change
% Change
Net revenue
$
86.4
$
81.9
$
4.5
5.5
Cost of goods sold
54.7
51.7
3.0
5.8
Gross profit
31.7
30.2
1.5
5.0
Selling, general and
administrative expenses
27.3
16.3
11.0
67.5
Depreciation and amortization
expense
8.3
8.1
0.2
2.5
Other operating expense, net
1.3
1.4
(0.1
)
(7.1
)
Income (loss) from
operations
(5.2
)
4.4
(9.6
)
(218.2
)
Interest expense
5.3
5.9
(0.6
)
(10.2
)
Foreign currency loss
0.1
0.7
(0.6
)
(85.7
)
Other non-operating income,
net
(17.9
)
(0.4
)
(17.5
)
NM
Income (loss) before income
tax expense
7.3
(1.8
)
9.1
(505.6
)
Income tax expense
1.8
0.3
1.5
500.0
Net income (loss)
5.5
(2.1
)
7.6
(361.9
)
Depreciation and amortization
expense – COS
8.4
8.6
(0.2
)
—
Depreciation and amortization
expense – D&A
8.3
8.1
0.2
2.5
Interest expense
5.3
5.9
(0.6
)
(10.2
)
Income tax expense
1.8
0.3
1.5
500.0
EBITDA(1)
29.3
20.8
8.5
40.9
Adjustments(2):
Foreign currency loss
0.1
0.6
(0.5
)
(83.3
)
Non-cash impairment losses
0.2
0.5
(0.3
)
(60.0
)
M&A, restructuring,
severance
1.5
1.3
0.2
15.4
Stock-based compensation
expense
1.5
(9.5
)
11.0
(115.8
)
Amortization of cloud-based software
implementation costs(3)
0.9
0.8
0.1
—
Cloud-based software
implementation costs
0.7
1.2
(0.5
)
(41.7
)
SOX remediation costs
2.4
2.4
—
—
Gain on sale of patents
(5.4
)
—
(5.4
)
NM
Patent litigation settlement
(16.1
)
—
(16.1
)
NM
Unrealized loss on strategic
investments
3.5
—
3.5
NM
Other adjustments
1.0
0.1
0.9
900.0
Constant currency
0.8
0.8
—
—
Constant Currency
AEBITDA(1)
$
20.4
$
19.0
$
1.4
7.4
Ranpak Holdings Corp.
Non-GAAP Financial Data
Reconciliation and Comparison of GAAP
Statement of Income Data to Non-GAAP EBITDA and Constant Currency
AEBITDA For the Six Months Ended June 30, 2024 and 2023 (in
millions)
Please refer to our discussion and
definitions of Non-GAAP financial measures
Six Months Ended June
30,
2024
2023
$ Change
% Change
Net revenue
$
171.7
$
163.1
$
8.6
5.3
Cost of goods sold
107.7
105.4
2.3
2.2
Gross profit
64.0
57.7
6.3
10.9
Selling, general and
administrative expenses
55.2
43.5
11.7
26.9
Depreciation and amortization
expense
16.7
16.1
0.6
3.7
Other operating expense, net
2.1
2.6
(0.5
)
(19.2
)
Loss from operations
(10.0
)
(4.5
)
(5.5
)
122.2
Interest expense
11.5
11.6
(0.1
)
(0.9
)
Foreign currency (gain) loss
(1.3
)
0.9
(2.2
)
(244.4
)
Other non-operating income,
net
(17.9
)
(0.7
)
(17.2
)
NM
Loss before income tax expense
(benefit)
(2.3
)
(16.3
)
14.0
(85.9
)
Income tax expense (benefit)
0.3
(1.8
)
2.1
(116.7
)
Net loss
(2.6
)
(14.5
)
11.9
(82.1
)
Depreciation and amortization
expense – COS
18.8
16.9
1.9
—
Depreciation and amortization
expense – D&A
16.7
16.1
0.6
3.7
Interest expense
11.5
11.6
(0.1
)
(0.9
)
Income tax expense (benefit)
0.3
(1.8
)
2.1
(116.7
)
EBITDA(1)
44.7
28.3
16.4
58.0
Adjustments(2):
Foreign currency (gain) loss
(1.3
)
0.8
(2.1
)
(262.5
)
Non-cash impairment losses
0.6
0.9
(0.3
)
(33.3
)
M&A, restructuring,
severance
2.4
1.5
0.9
60.0
Stock-based compensation
expense
2.8
(6.7
)
9.5
(141.8
)
Amortization of cloud-based
software implementation costs(3)
1.8
1.5
0.3
—
Cloud-based software
implementation costs
1.2
2.4
(1.2
)
(50.0
)
SOX remediation costs
3.2
2.4
0.8
33.3
Gain on sale of patents
(5.4
)
—
(5.4
)
NM
Patent litigation settlement
(16.1
)
—
(16.1
)
NM
Unrealized loss on strategic
investments
3.5
—
3.5
NM
Other adjustments
1.4
1.4
—
—
Constant currency
1.8
1.6
0.2
12.5
Constant Currency
AEBITDA(1)
$
40.6
$
34.1
$
6.5
19.1
Ranpak Holdings Corp.
Non-GAAP Financial Data
Reconciliation of GAAP Statement of
Income Data to Non-GAAP Constant Currency Statement of Income Data,
Constant Currency EBITDA, and Constant Currency AEBITDA (in
millions)
For the Second Quarter of 2024
Please refer to our discussion and
definitions of Non-GAAP financial measures, including Non-GAAP
Constant Currency
Three Months Ended June 30,
2024
As reported
Constant Currency(4)
Non-GAAP
Net revenue
$
86.4
$
3.2
$
89.6
Cost of goods sold
54.7
1.9
56.6
Gross profit
31.7
1.3
33.0
Selling, general and
administrative expenses
27.3
1.0
28.3
Depreciation and amortization
expense
8.3
0.1
8.4
Other operating expense, net
1.3
0.1
1.4
Loss from operations
(5.2
)
0.1
(5.1
)
Interest expense
5.3
—
5.3
Foreign currency loss
0.1
—
0.1
Other non-operating income,
net
(17.9
)
(1.0
)
(18.9
)
Income before income tax
expense
7.3
1.1
8.4
Income tax expense
1.8
0.3
2.1
Net income
$
5.5
$
0.8
$
6.3
Constant currency-effected
add(1):
Depreciation and amortization
expense – COS
$
8.7
Depreciation and amortization
expense – D&A
8.4
Interest expense
5.3
Income tax expense
2.1
Constant currency
EBITDA
30.8
Constant currency-effected
adjustments(2):
Foreign currency loss
0.1
Non-cash impairment losses
0.1
M&A, restructuring, severance
1.5
Stock-based compensation expense
1.6
Amortization of cloud-based software
implementation costs(3)
0.9
Cloud-based software implementation
costs
0.7
SOX remediation
2.4
Gain on sale of patents
(5.4
)
Patent litigation settlement
(17.2
)
Unrealized loss on strategic
investments
3.5
Other adjustments
1.4
Constant currency AEBITDA
$
20.4
Ranpak Holdings Corp.
Non-GAAP Financial Data
Reconciliation of GAAP Statement of
Income Data to Non-GAAP Constant Currency Statement of Income Data,
Constant Currency EBITDA, and Constant Currency AEBITDA (in
millions)
For the Second Quarter of 2023
Please refer to our discussion and
definitions of Non-GAAP financial measures, including Non-GAAP
Constant Currency
Three Months Ended June 30,
2023
As reported
Constant Currency(4)
Non-GAAP
Net revenue
$
81.9
$
2.7
$
84.6
Cost of goods sold
51.7
1.6
53.3
Gross profit
30.2
1.1
31.3
Selling, general and
administrative expenses
16.3
0.5
16.8
Depreciation and amortization
expense
8.1
0.1
8.2
Other operating expense, net
1.4
—
1.4
Income from operations
4.4
0.5
4.9
Interest expense
5.9
0.1
6.0
Foreign currency loss
0.7
—
0.7
Other non-operating income,
net
(0.4
)
0.4
—
Loss before income tax
expense
(1.8
)
—
(1.8
)
Income tax expense
0.3
(0.3
)
—
Net loss
$
(2.1
)
$
0.3
$
(1.8
)
Constant currency-effected
add(1):
Depreciation and amortization
expense – COS
$
8.8
Depreciation and amortization
expense – D&A
8.2
Interest expense
6.0
Income tax expense
—
Constant currency
EBITDA
21.2
Constant currency-effected
adjustments(2):
Foreign currency loss
0.7
Non-cash impairment losses
0.5
M&A, restructuring, severance
1.5
Stock-based compensation expense
(9.6
)
Amortization of cloud-based software
implementation costs(3)
0.8
Cloud-based software implementation
costs
1.3
SOX remediation
2.4
Other adjustments
0.2
Constant currency AEBITDA
$
19.0
Ranpak Holdings Corp.
Non-GAAP Financial Data
Reconciliation of GAAP Statement of
Income Data to Non-GAAP Constant Currency Statement of Income Data,
Constant Currency EBITDA, and Constant Currency AEBITDA (in
millions)
For the Six Months Ended June 30,
2024
Please refer to our discussion and
definitions of Non-GAAP financial measures, including Non-GAAP
Constant Currency
Six Months Ended June 30,
2024
As reported
Constant Currency(4)
Non-GAAP
Net revenue
$
171.7
$
6.4
$
178.1
Cost of goods sold
107.7
3.8
111.5
Gross profit
64.0
2.6
66.6
Selling, general and
administrative expenses
55.2
1.7
56.9
Depreciation and amortization
expense
16.7
0.3
17.0
Other operating expense, net
2.1
—
2.1
Loss from operations
(10.0
)
0.6
(9.4
)
Interest expense
11.5
0.1
11.6
Foreign currency gain
(1.3
)
(0.1
)
(1.4
)
Other non-operating income,
net
(17.9
)
(0.7
)
(18.6
)
Loss before income tax
benefit
(2.3
)
1.3
(1.0
)
Income tax expense
0.3
0.2
0.5
Net loss
$
(2.6
)
$
1.1
$
(1.5
)
Constant currency-effected
add(1):
Depreciation and amortization expense –
COS
$
19.5
Depreciation and amortization expense –
D&A
17.0
Interest expense
11.6
Income tax expense
0.5
Constant currency
EBITDA
47.1
Constant currency-effected
adjustments(2):
Foreign currency gain
(1.4
)
Non-cash impairment losses
0.6
M&A, restructuring, severance
2.5
Stock-based compensation expense
2.9
Amortization of cloud-based software
implementation costs(3)
1.8
Cloud-based software implementation
costs
1.2
SOX remediation
3.2
Gain on sale of patents
(5.4
)
Patent litigation settlement
(17.2
)
Unrealized loss on strategic
investments
3.5
Other adjustments
1.8
Constant currency AEBITDA
$
40.6
Ranpak Holdings Corp.
Non-GAAP Financial Data
Reconciliation of GAAP Statement of
Income Data to Non-GAAP Constant Currency Statement of Income Data,
Constant Currency EBITDA, and Constant Currency AEBITDA (in
millions)
For the Six Months Ended June 30,
2023
Please refer to our discussion and
definitions of Non-GAAP financial measures, including Non-GAAP
Constant Currency
Six Months Ended June
30, 2023
As reported
Constant Currency(4)
Non-GAAP
Net revenue
$
163.1
$
6.3
$
169.4
Cost of goods sold
105.4
3.9
109.3
Gross profit
57.7
2.4
60.1
Selling, general and
administrative expenses
43.5
1.4
44.9
Depreciation and amortization
expense
16.1
0.3
16.4
Other operating expense, net
2.6
—
2.6
Loss from operations
(4.5
)
0.7
(3.8
)
Interest expense
11.6
0.2
11.8
Foreign currency loss
0.9
—
0.9
Other non-operating (income)
expense, net
(0.7
)
0.9
0.2
Loss before income tax
benefit
(16.3
)
(0.4
)
(16.7
)
Income tax benefit
(1.8
)
(0.3
)
(2.1
)
Net loss
$
(14.5
)
$
(0.1
)
$
(14.6
)
Constant currency-effected
add(1):
Depreciation and amortization
expense – COS
$
17.4
Depreciation and amortization
expense – D&A
16.4
Interest expense
11.8
Income tax benefit
(2.1
)
Constant currency
EBITDA
28.9
Constant currency-effected
adjustments(2):
Foreign currency loss
0.9
Non-cash impairment losses
1.0
M&A, restructuring, severance
1.7
Stock-based compensation expense
(6.7
)
Amortization of cloud-based software
implementation costs(3)
1.6
Cloud-based software implementation
costs
2.4
SOX remediation
2.4
Other adjustments
1.9
Constant currency AEBITDA
$
34.1
_________________________
(1)
Reconciliations of EBITDA and constant
currency AEBITDA for each period presented are to net (loss)
income, the nearest GAAP equivalent.
(2)
Adjustments are related to non-cash
unusual or infrequent costs such as: effects of non-cash foreign
currency remeasurement or adjustment; impairment of returned
machines; costs associated with the evaluation of acquisitions;
costs associated with executive severance; costs associated with
restructuring actions such as plant rationalization or realignment,
reorganization, and reductions in force; costs associated with the
implementation of the global ERP system; and other items deemed by
management to be unusual, infrequent, or non-recurring.
(3)
Represents amortization of capitalized
costs related to the implementation of the global ERP system, which
are included in SG&A.
(4)
Effect of Euro constant currency
adjustment to a rate of €1.00 to $1.15 on each line item.
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version on businesswire.com: https://www.businesswire.com/news/home/20240801832641/en/
Investors: IR@Ranpak.com
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