- Packaging System placement up 1.1% year over year to
approximately 143.6 thousand machines at September 30,
2024
- Net revenue for the third quarter increased 11.4% year over
year to $92.2 million and increased 10.5% year over year on a
constant currency basis to $94.7 million
- Net loss for the third quarter of $8.1 million compared to
net loss of $3.3 million for the prior year period
- Constant Currency Adjusted EBITDA (“AEBITDA”) for the third
quarter of $20.5 million up 13.9%, or $2.5 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 third
quarter 2024 financial results.
Omar Asali, Chairman and Chief Executive Officer, commented,
“Ranpak delivered another strong quarter to build on the solid
momentum of the first half of the year. We are pleased to report
that in the third quarter we experienced a meaningful acceleration
in volumes globally which led to double-digit top-line and Adjusted
EBITDA growth as well as an increase in our cash position. Net
revenue for the quarter increased 11.4% year over year, or 10.5% on
a constant currency basis, driven by an e-Commerce induced 14.7%
volume increase. We experienced strong demand for our void-fill
products globally resulting in increased volumes in both regions,
while lower industrial activity weighed on our cushioning product
line. We continued to build momentum in Automation with strong
revenue growth in the quarter and a robust bookings outlook going
into year end.
“Gross margins remained in-line with expectations at 37.3% and
Adjusted EBITDA grew 13.9% in the quarter on a constant currency
basis driving further progress on deleveraging. Our net debt to LTM
Adjusted EBITDA ratio on a constant currency basis reached 4.0x as
of the end of the third quarter, marking substantial progress
towards our goal of 3.0x or below.
“Although the macro environment remains choppy, our execution on
strategic accounts has been excellent and fueled much of the
improved results this year. I am pleased with the phenomenal effort
to drive results in a challenging environment. While it may not
show up now, I believe other steps we have taken this year in the
general business will start to pay off in 2025 and beyond as we are
rolling out a number of new products in PPS and brought in
additional talent to drive the pipeline.”
Third Quarter 2024 Highlights
- Packaging systems placement increased 1.1% year over year, to
approximately 143.6 thousand machines as of September 30, 2024
- Net revenue increased 11.4% and increased 10.5% adjusting for
constant currency
- Net loss of $8.1 million compared to net loss of $3.3 million
for the prior year period
- Constant currency AEBITDA1 of $20.5 million for the three
months ended September 30, 2024 is up 13.9%
Net revenue for the third quarter of 2024 was $92.2 million
compared to $82.8 million in the third quarter of 2023, an increase
of $9.4 million or 11.4% year over year. Net revenue was positively
impacted by an increase in void-fill, wrapping, and other net
revenue, partially offset by a decrease in cushioning. 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 $3.2 million, or 9.0%, to
$32.5 million from $35.7 million; void-fill increased $9.7 million,
or 28.4%, to $43.9 million from $34.2 million; wrapping increased
$0.4 million or 4.9% to $8.5 million from $8.1 million; and other
sales increased $2.5 million, or 52.1%, to $7.3 million from $4.8
million for the third quarter of 2024 compared to the third quarter
of 2023. The increase in void-fill was primarily due to increased
volume from e-commerce activity in North America. The increase in
net revenue is quantified by an increase in the volume of sales of
our paper consumable products of approximately 14.7% and a 2.9%
increase in sales of automated box sizing equipment, partially
offset by a 7.0% decrease in the price or mix of our paper
consumable products. Constant currency net revenue was $94.7
million for the third quarter of 2024, a 10.5% increase from $85.7
million from the third quarter of 2023.
Net revenue in North America for the third quarter of 2024
totaled $40.3 million compared to $34.9 million in the third
quarter of 2023. The increase of $5.4 million, or 15.5%, was
primarily attributable to an increase in void-fill and other sales,
partially offset by decreases in wrapping and cushioning.
Net revenue in Europe/Asia for the third quarter of 2024 totaled
$51.9 million compared to $47.9 million in the third quarter of
2023. The increase of $4.0 million, or 8.4%, was driven by
increases in void-fill, wrapping, and other sales, partially offset
by a decrease in cushioning. Constant currency net revenue in
Europe/Asia was $54.4 million for the third quarter of 2024, a $3.6
million, or 7.1%, increase from $50.8 million for the third 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 7.3% and increased 6.9% adjusting for
constant currency
- Net loss of $10.7 million compared to net loss of $17.8 million
for the prior year period
- Constant currency AEBITDA of $61.1 million for the nine months
ended September 30, 2024 is up 17.3%
Balance Sheet and Liquidity
Ranpak completed the third quarter of 2024 with a strong
liquidity position, including a cash balance of $69.5 million and
no borrowings on its $45 million Revolving Credit Facility, which
matures in June 2025. As of September 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 4.0x based on results on a constant currency basis through the
third 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 September 30,
2024 and 2023:
September 30, 2024
September 30, 2023
Change
% Change
PPS Systems
(in thousands)
Cushioning machines
34.9
34.8
0.1
0.3
Void-Fill machines
85.8
84.7
1.1
1.3
Wrapping machines
22.9
22.5
0.4
1.8
Total
143.6
142.0
1.6
1.1
Conference Call Information
The Company will host a conference call and webcast at 8:30 a.m.
(ET) on Thursday, October 31, 2024. The conference call and
earnings presentation will be webcast live at the following link:
https://events.q4inc.com/attendee/101951246. 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, October 31, 2024 and
ending at 11:59 p.m. (ET) on Thursday, November 7, 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 September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Paper revenue
$
71.3
$
64.8
$
205.0
$
192.4
Machine lease revenue
13.6
13.2
40.0
38.7
Other revenue
7.3
4.8
18.9
14.8
Net revenue
92.2
82.8
263.9
245.9
Cost of goods sold
57.8
51.3
165.5
156.7
Gross profit
34.4
31.5
98.4
89.2
Selling, general and administrative
expenses
28.8
20.9
84.0
64.4
Depreciation and amortization expense
8.2
8.1
24.9
24.2
Other operating expense, net
1.6
0.9
3.7
3.5
Income (loss) from operations
(4.2
)
1.6
(14.2
)
(2.9
)
Interest expense
9.3
6.8
20.8
18.4
Foreign currency (gain) loss
0.2
(0.7
)
(1.1
)
0.2
Other non-operating income, net
(3.1
)
(0.1
)
(21.0
)
(0.8
)
Loss before income tax benefit
(10.6
)
(4.4
)
(12.9
)
(20.7
)
Income tax benefit
(2.5
)
(1.1
)
(2.2
)
(2.9
)
Net loss
$
(8.1
)
(3.3
)
$
(10.7
)
$
(17.8
)
Two-class method
Basic and diluted loss per share
$
(0.10
)
$
(0.04
)
$
(0.13
)
$
(0.22
)
Class A – basic and diluted loss per
share
$
(0.10
)
$
(0.04
)
$
(0.13
)
$
(0.22
)
Class C – basic and diluted loss per
share
$
(0.10
)
$
(0.03
)
$
(0.13
)
$
(0.21
)
Weighted average number of shares
outstanding – Class A and C – basic and diluted
83,227,887
82,322,957
82,994,759
82,297,985
Other comprehensive income (loss),
before tax
Foreign currency translation
adjustments
$
3.6
$
(1.9
)
$
1.4
$
(1.0
)
Interest rate swap adjustments
—
(2.2
)
(3.4
)
(5.3
)
Total other comprehensive income
(loss), before tax
3.6
(4.1
)
(2.0
)
(6.3
)
Provision (benefit) for income taxes
related to other comprehensive income (loss)
(0.8
)
0.1
(0.8
)
(1.1
)
Total other comprehensive income
(loss), net of tax
4.4
(4.2
)
(1.2
)
(5.2
)
Comprehensive loss, net of tax
$
(3.7
)
$
(7.5
)
$
(11.9
)
$
(23.0
)
Ranpak Holdings Corp.
Unaudited Condensed
Consolidated Balance Sheets
(in millions, except share
data)
September 30, 2024
December 31, 2023
Assets
Current assets
Cash and cash equivalents
$
69.5
62.0
Accounts receivable, net
40.2
31.6
Inventories
22.5
17.3
Income tax receivable
11.1
0.9
Prepaid expenses and other current
assets
9.7
13.1
Total current assets
153.0
124.9
Property, plant and equipment, net
143.9
142.1
Operating lease right-of-use assets,
net
22.2
23.7
Goodwill
451.3
450.1
Intangible assets, net
324.4
345.4
Deferred tax assets
0.1
0.1
Other assets
38.4
36.4
Total assets
$
1,133.3
1,122.7
Liabilities and Shareholders'
Equity
Current liabilities
Accounts payable
$
24.4
17.6
Accrued liabilities and other
28.9
22.1
Current portion of long-term debt
2.7
2.5
Operating lease liabilities, current
4.0
3.8
Deferred revenue
4.8
2.0
Total current liabilities
64.8
48.0
Long-term debt
400.5
397.8
Deferred tax liabilities
71.2
71.6
Derivative instruments
7.4
6.3
Operating lease liabilities,
non-current
22.3
24.7
Other liabilities
2.8
2.3
Total liabilities
569.0
550.7
Commitments and contingencies – Note
13
Shareholders' equity
Class A common stock, $0.0001 par,
200,000,000 shares authorized at September 30, 2024 and December
31, 2023; shares issued and outstanding: 80,309,764 and 79,684,170
at September 30, 2024 and December 31, 2023, respectively
—
—
Convertible Class C common stock, $0.0001
par, 200,000,000 shares authorized at September 30, 2024 and
December 31, 2023; shares issued and outstanding: 2,921,099 at
September 30, 2024 and December 31, 2023
—
—
Additional paid-in capital
697.9
693.7
Accumulated deficit
(134.5
)
(123.8
)
Accumulated other comprehensive income
0.9
2.1
Total shareholders' equity
564.3
572.0
Total liabilities and shareholders'
equity
$
1,133.3
$
1,122.7
Ranpak Holdings Corp.
Unaudited Condensed
Consolidated Statements of Cash Flows
(in millions)
Nine Months Ended September
30,
2024
2023
Cash Flows from Operating
Activities
Net loss
$
(10.7
)
$
(17.8
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
49.4
49.4
Amortization of deferred financing
costs
2.1
1.5
Loss on disposal of property and
equipment
0.9
0.8
Gain on sale of patents
(5.4
)
—
Deferred income taxes
2.6
(1.5
)
Amortization of initial value of interest
rate swap
(1.2
)
(1.6
)
Currency (gain) loss on foreign
denominated debt and notes payable
(1.1
)
0.2
Stock-based compensation expense
4.6
(11.8
)
Amortization of cloud-based software
implementation costs
2.6
2.2
Unrealized loss on strategic
investments
0.4
—
Changes in operating assets and
liabilities:
(Increase) decrease in receivables,
net
(6.0
)
(4.1
)
(Increase) decrease in inventory
(5.0
)
3.3
(Increase) decrease in income tax
receivable
(10.1
)
(1.6
)
(Increase) decrease in prepaid expenses
and other assets
(1.6
)
(1.9
)
Increase (decrease) in accounts
payable
6.2
(1.2
)
Increase (decrease) in accrued
liabilities
7.7
11.3
Change in other assets and liabilities
(0.5
)
(4.2
)
Net cash provided by operating
activities
34.9
23.0
Cash Flows from Investing
Activities
Purchases of converter equipment
(21.3
)
(17.5
)
Purchases of other property, plant, and
equipment
(4.0
)
(17.4
)
Proceeds from sale of patents
5.4
—
Proceeds from sale of plant, property, and
equipment
—
2.9
Cash paid for strategic investments
(4.8
)
—
Net cash used in investing
activities
(24.7
)
(32.0
)
Cash Flows from Financing
Activities
Principal payments on term loans
(0.8
)
(1.5
)
Financing costs of debt facilities
—
(1.0
)
Proceeds from equipment financing
0.7
2.3
Payments on equipment financing
(0.9
)
—
Payments on finance lease liabilities
(0.9
)
(0.7
)
Tax payments for withholdings on
stock-based awards distributed
(0.4
)
(0.5
)
Net cash used in financing
activities
(2.3
)
(1.4
)
Effect of Exchange Rate Changes on
Cash
(0.4
)
(0.3
)
Net Increase (Decrease) in Cash and
Cash Equivalents
7.5
(10.7
)
Cash and Cash Equivalents, beginning of
period
62.0
62.8
Cash and Cash Equivalents, end of
period
$
69.5
52.1
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 nine months ended
September 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 nine months ended September 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 Third Quarter of 2024 and 2023
(in millions)
Please refer to our discussion and
definitions of Non-GAAP financial measures
Three Months Ended September
30,
2024
2023
$ Change
% Change
Net revenue
$
92.2
$
82.8
$
9.4
11.4
Cost of goods sold
57.8
51.3
6.5
12.7
Gross profit
34.4
31.5
2.9
9.2
Selling, general and administrative
expenses
28.8
20.9
7.9
37.8
Depreciation and amortization expense
8.2
8.1
0.1
1.2
Other operating expense, net
1.6
0.9
0.7
77.8
Income (loss) from operations
(4.2
)
1.6
(5.8
)
(362.5
)
Interest expense
9.3
6.8
2.5
36.8
Foreign currency (gain) loss
0.2
(0.7
)
0.9
(128.6
)
Other non-operating income, net
(3.1
)
(0.1
)
(3.0
)
NM
Loss before income tax benefit
(10.6
)
(4.4
)
(6.2
)
140.9
Income tax benefit
(2.5
)
(1.1
)
(1.4
)
127.3
Net loss
(8.1
)
(3.3
)
(4.8
)
145.5
Depreciation and amortization expense –
COS
5.7
8.3
(2.6
)
(31.3
)
Depreciation and amortization expense –
D&A
8.2
8.1
0.1
1.2
Interest expense
9.3
6.8
2.5
36.8
Income tax benefit
(2.5
)
(1.1
)
(1.4
)
127.3
EBITDA(1)
12.6
18.8
(6.2
)
(33.0
)
Adjustments(2):
Foreign currency (gain) loss
0.2
(0.6
)
0.8
(133.3
)
Non-cash impairment losses
0.3
—
0.3
NM
M&A, restructuring, severance
3.2
1.5
1.7
113.3
Stock-based compensation expense
1.8
(5.1
)
6.9
(135.3
)
Amortization of cloud-based software
implementation costs(3)
0.8
0.7
0.1
14.3
Cloud-based software implementation
costs
0.9
0.7
0.2
28.6
SOX remediation costs
0.9
1.0
(0.1
)
(10.0
)
Unrealized gain on strategic
investments
(3.1
)
—
(3.1
)
NM
Other adjustments
2.2
0.4
1.8
450.0
Constant currency
0.7
0.6
0.1
16.7
Constant Currency AEBITDA(1)
$
20.5
$
18.0
$
2.5
13.9
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 Nine Months Ended September 30,
2024 and 2023 (in millions)
Please refer to our discussion and
definitions of Non-GAAP financial measures
Nine Months Ended September
30,
2024
2023
$ Change
% Change
Net revenue
263.9
245.9
18.0
7.3
Cost of goods sold
165.5
156.7
8.8
5.6
Gross profit
98.4
89.2
9.2
10.3
Selling, general and administrative
expenses
84.0
64.4
19.6
30.4
Depreciation and amortization expense
24.9
24.2
0.7
2.9
Other operating expense, net
3.7
3.5
0.2
5.7
Loss from operations
(14.2
)
(2.9
)
(11.3
)
389.7
Interest expense
20.8
18.4
2.4
13.0
Foreign currency (gain) loss
(1.1
)
0.2
(1.3
)
(650.0
)
Other non-operating income, net
(21.0
)
(0.8
)
(20.2
)
NM
Loss before income tax benefit
(12.9
)
(20.7
)
7.8
(37.7
)
Income tax benefit
(2.2
)
(2.9
)
0.7
(24.1
)
Net loss
(10.7
)
(17.8
)
7.1
(39.9
)
Depreciation and amortization expense –
COS
24.5
25.2
(0.7
)
(2.8
)
Depreciation and amortization expense –
D&A
24.9
24.2
0.7
2.9
Interest expense
20.8
18.4
2.4
13.0
Income tax benefit
(2.2
)
(2.9
)
0.7
(24.1
)
EBITDA(1)
57.3
47.1
10.2
21.7
Adjustments(2):
Foreign currency (gain) loss
(1.1
)
0.2
(1.3
)
NM
Non-cash impairment losses
0.9
0.9
—
—
M&A, restructuring, severance
5.6
3.0
2.6
86.7
Stock-based compensation expense
4.6
(11.8
)
16.4
(139.0
)
Amortization of cloud-based software
implementation costs(3)
2.6
2.2
0.4
18.2
Cloud-based software implementation
costs
2.1
3.1
(1.0
)
(32.3
)
SOX remediation costs
4.1
3.4
0.7
20.6
Gain on sale of patents
(5.4
)
—
(5.4
)
NM
Patent litigation settlement
(16.1
)
—
(16.1
)
NM
Unrealized loss on strategic
investments
0.4
—
0.4
NM
Other adjustments
3.6
1.8
1.8
100.0
Constant currency
2.5
2.2
0.3
13.6
Constant Currency AEBITDA(1)
61.1
52.1
9.0
17.3
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 Third Quarter of 2024
Please refer to our discussion and
definitions of Non-GAAP financial measures, including Non-GAAP
Constant Currency
Three Months Ended September
30, 2024
As reported
Constant Currency(4)
Non-GAAP
Net revenue
$
92.2
$
2.5
$
94.7
Cost of goods sold
57.8
1.4
59.2
Gross profit
34.4
1.1
35.5
Selling, general and administrative
expenses
28.8
0.7
29.5
Depreciation and amortization expense
8.2
0.1
8.3
Other operating expense, net
1.6
—
1.6
Loss from operations
(4.2
)
0.3
(3.9
)
Interest expense
9.3
0.2
9.5
Foreign currency loss
0.2
0.1
0.3
Other non-operating income, net
(3.1
)
0.2
(2.9
)
Loss before income tax benefit
(10.6
)
(0.2
)
(10.8
)
Income tax benefit
(2.5
)
—
(2.5
)
Net loss
$
(8.1
)
$
(0.2
)
$
(8.3
)
Constant currency-effected
add(1):
Depreciation and amortization expense –
COS
$
5.9
Depreciation and amortization expense –
D&A
8.3
Interest expense
9.5
Income tax benefit
(2.5
)
Constant currency EBITDA
12.9
Constant currency-effected
adjustments(2):
Foreign currency loss
0.3
Non-cash impairment losses
0.3
M&A, restructuring, severance
3.3
Stock-based compensation expense
1.8
Amortization of cloud-based software
implementation costs(3)
0.9
Cloud-based software implementation
costs
0.8
SOX remediation
0.9
Unrealized gain on strategic
investments
(3.1
)
Other adjustments
2.4
Constant currency AEBITDA
$
20.5
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 Third Quarter of 2023
Please refer to our discussion and
definitions of Non-GAAP financial measures, including Non-GAAP
Constant Currency
Three Months Ended September
30, 2023
As reported
Constant Currency(4)
Non-GAAP
Net revenue
$
82.8
$
2.9
$
85.7
Cost of goods sold
51.3
1.7
53.0
Gross profit
31.5
1.2
32.7
Selling, general and administrative
expenses
20.9
0.7
21.6
Depreciation and amortization expense
8.1
0.1
8.2
Other operating expense, net
0.9
—
0.9
Income from operations
1.6
0.4
2.0
Interest expense
6.8
—
6.8
Foreign currency gain
(0.7
)
0.1
(0.6
)
Other non-operating (income) expense,
net
(0.1
)
0.3
0.2
Loss before income tax benefit
(4.4
)
—
(4.4
)
Income tax benefit
(1.1
)
(0.1
)
(1.2
)
Net loss
$
(3.3
)
$
0.1
$
(3.2
)
Constant currency-effected
add(1):
Depreciation and amortization expense –
COS
$
8.5
Depreciation and amortization expense –
D&A
8.2
Interest expense
6.8
Income tax benefit
(1.2
)
Constant currency EBITDA
19.1
Constant currency-effected
adjustments(2):
Foreign currency gain
(0.6
)
M&A, restructuring, severance
1.4
Stock-based compensation expense
(5.3
)
Amortization of cloud-based software
implementation costs(3)
0.7
Cloud-based software implementation
costs
0.7
SOX remediation
1.0
Other adjustments
1.0
Constant currency AEBITDA
$
18.0
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 Nine Months Ended September 30,
2024
Please refer to our discussion and
definitions of Non-GAAP financial measures, including Non-GAAP
Constant Currency
Nine Months Ended September
30, 2024
As reported
Constant Currency(4)
Non-GAAP
Net revenue
$
263.9
$
8.9
$
272.8
Cost of goods sold
165.5
5.2
170.7
Gross profit
98.4
3.7
102.1
Selling, general and administrative
expenses
84.0
2.4
86.4
Depreciation and amortization expense
24.9
0.4
25.3
Other operating expense, net
3.7
—
3.7
Loss from operations
(14.2
)
0.9
(13.3
)
Interest expense
20.8
0.3
21.1
Foreign currency gain
(1.1
)
—
(1.1
)
Other non-operating income, net
(21.0
)
(0.5
)
(21.5
)
Loss before income tax benefit
(12.9
)
1.1
(11.8
)
Income tax benefit
(2.2
)
0.2
(2.0
)
Net loss
$
(10.7
)
$
0.9
$
(9.8
)
Constant currency-effected
add(1):
Depreciation and amortization expense –
COS
25.4
Depreciation and amortization expense –
D&A
25.3
Interest expense
21.1
Income tax benefit
(2.0
)
Constant currency EBITDA
60.0
Constant currency-effected
adjustments(2):
Foreign currency gain
(1.1
)
Non-cash impairment losses
0.9
M&A, restructuring, severance
5.8
Stock-based compensation expense
4.7
Amortization of cloud-based software
implementation costs(3)
2.7
Cloud-based software implementation
costs
2.0
SOX remediation
4.1
Gain on sale of patents
(5.4
)
Patent litigation settlement
(17.2
)
Unrealized loss on strategic
investments
0.4
Other adjustments
4.2
Constant currency AEBITDA
$
61.1
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 Nine Months Ended September 30,
2023
Please refer to our discussion and
definitions of Non-GAAP financial measures, including Non-GAAP
Constant Currency
Nine Months Ended September
30, 2023
As reported
Constant Currency(4)
Non-GAAP
Net revenue
$
245.9
$
9.2
$
255.1
Cost of goods sold
156.7
5.6
162.3
Gross profit
89.2
3.6
92.8
Selling, general and administrative
expenses
64.4
2.1
66.5
Depreciation and amortization expense
24.2
0.4
24.6
Other operating expense, net
3.5
—
3.5
Loss from operations
(2.9
)
1.1
(1.8
)
Interest expense
18.4
0.2
18.6
Foreign currency loss
0.2
0.1
0.3
Other non-operating (income) expense,
net
(0.8
)
1.2
0.4
Loss before income tax benefit
(20.7
)
(0.4
)
(21.1
)
Income tax benefit
(2.9
)
(0.4
)
(3.3
)
Net loss
$
(17.8
)
$
—
$
(17.8
)
Constant currency-effected
add(1):
Depreciation and amortization expense –
COS
$
25.9
Depreciation and amortization expense –
D&A
24.6
Interest expense
18.6
Income tax benefit
(3.3
)
Constant currency EBITDA
48.0
Constant currency-effected
adjustments(2):
Foreign currency loss
0.3
Non-cash impairment losses
1.0
M&A, restructuring, severance
3.1
Stock-based compensation expense
(12.0
)
Amortization of cloud-based software
implementation costs(3)
2.3
Cloud-based software implementation
costs
3.1
SOX remediation
3.4
Other adjustments
2.9
Constant currency AEBITDA
$
52.1
(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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241031397462/en/
Contact for Investors: IR@Ranpak.com
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