- Packaging System placement up 1.5% year over year to
approximately 141,200 machines at December 31, 2023
- Net revenue for the fourth quarter increased 13.9% year over
year to $90.4 million and increased 10.3% year over year on a
constant currency basis to $93.9 million
- Net loss for the fourth quarter of $9.3 million compared to
net loss of $7.3 million for the prior year period.
- Constant Currency Adjusted EBITDA (“AEBITDA”) for the fourth
quarter of $24.4 million up 89.1%, or $11.5 million, year over
year
Ranpak Holdings Corp (NYSE: PACK) (“Ranpak” or “the Company”), a
leading provider of environmentally sustainable, systems-based,
product protection solutions for e-Commerce and industrial supply
chains, today reported its fourth quarter and full year 2023
financial results.
Omar Asali, Chairman and Chief Executive Officer, commented, “We
are pleased with our fourth quarter results as Ranpak finished the
year on a positive note and built on the volume improvement
momentum which began in the third quarter of 2023. Net revenue for
the quarter increased 10.3% year over year on a constant currency
basis to $93.9 million, driven by growth in both North America and
Europe/APAC. We saw continued general improvement in the operating
environment in Europe in the quarter and a more pronounced
e-Commerce holiday season uptick in North America. Volumes overall
increased 10% compared to the prior year and finished positive for
the year after a slower start. In addition to our improved top-line
performance, we experienced our most profitable quarter of the year
as better volumes and more favorable input costs drove an Adjusted
EBITDA increase of 89.1% to $24.4 million on a constant currency
basis. Overall, we continued to claw back our targeted gross margin
throughout the year and are encouraged by the volume improvement we
began to see in the second half of the year. The fourth quarter
shows the power of the model when a sufficient amount of volumes
are flowing through the complex and we are committed to building on
our finish to the year to have a much improved 2024.”
“We have been working towards bringing our key initiatives to
drive top-line growth to fruition and made solid progress executing
in this area. Strategic account activity in PPS in North America
will begin to be felt in the second quarter and we believe
Automation revenue growth will step up this year driven by inroads
we have made in the industry by building our reputation as a
top-tier end of line Automation player. We made substantial
investments in our digital and physical infrastructure as well as
our product portfolio over the past couple of years, and believe
2024 is the first year where we are able to focus on volumes,
profitability, and deleveraging rather than additional investment.
We finished 2023 at 4.6x net debt to LTM Adjusted EBITDA on a
constant currency basis which is a full turn below our recent peak
in Q2, and are committed to moving further down the path towards
less than 3.0x leverage.”
Fourth Quarter 2023 Highlights
- Packaging systems placement increased 1.5% year over year, to
approximately 141,200 machines as of December 31, 2023
- Net revenue increased 13.9% and increased 10.3% adjusting for
constant currency
- Net loss of $9.3 million compared to net loss of $7.3
million
- Constant currency AEBITDA1 of $24.4 million for the three
months ended December 31, 2023 is up 89.1%
Net revenue for the fourth quarter was $90.4 million compared to
net revenue of $79.4 million in 2022, an increase of $11.0 million
or 13.9%. Net revenue was positively impacted by increases in
cushioning, void-fill, wrapping, and other revenue. Revenue from
our cushioning and void-fill product categories continued to
improve quarter over quarter on a consolidated basis driven by
increased utilization of packaging systems by end users, driven by
the holiday season and improved operating environment. Cushioning
increased $2.8 million, or 8.5%, to $35.9 million from $33.1
million; void-fill increased $5.2 million, or 15.7%, to $38.4
million from $33.2 million; wrapping increased $0.5 million, or
5.2%, to $10.2 million from $9.7 million; and other sales increased
$2.5 million, or 73.5%, to $5.9 million from $3.4 million, for the
fourth quarter of 2023 compared to the fourth quarter of 2022.
Other net revenue includes automated box sizing equipment and
non-paper revenue from packaging systems installed in the field,
such as systems accessories.
___________________
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.
The increase in net revenue is quantified by an increase in the
volume of our paper consumable products of approximately 10.4% and
a 2.2% increase in sales of automated box sizing equipment,
partially offset by a 2.1% decrease in the price or mix of our
paper consumable products. Constant currency net revenue was $93.9
million for the fourth quarter of 2023, an $8.8 million, or 10.3%,
increase from constant currency net revenue of $85.1 million for
the fourth quarter of 2022.
Net revenue in North America for the fourth quarter of 2023
totaled $39.1 million compared to $36.1 million in the fourth
quarter of 2022. The increase of $3.0 million, or 8.3%, was
attributable to increases in cushioning sales of $0.3 million,
void-fill sales of $1.7 million, and other sales of $1.4 million,
partially offset by a decrease in wrapping sales of $0.4
million.
Net revenue in Europe/Asia for the fourth quarter of 2023
totaled $51.3 million compared to $43.3 million in the fourth
quarter of 2022. The increase of $8.0 million, or 18.5%, was driven
by increases in cushioning sales of $2.5 million, void-fill sales
of $3.5 million, wrapping sales of $0.9 million, and other sales of
$1.1 million, as well as favorable currency exchange rates of the
Euro to the U.S. dollar. Constant currency net revenue in
Europe/Asia was $54.8 million for the fourth quarter of 2023, a
$5.8 million, or 11.8%, increase from constant currency net revenue
of $49.0 million for the fourth quarter of 2022.
Full Year 2023 Highlights
- Net revenue increased 3.0% and increased 1.4% adjusting for
constant currency
- Net loss of $27.1 million compared to net loss of $41.4
million
- Constant currency AEBITDA of $76.5 million for the year ended
December 31, 2023 is up 14.5%
Balance Sheet and Liquidity
Ranpak completed the fourth quarter of 2023 with a strong
liquidity position, including a cash balance of $62.0 million and
no borrowings on its $45 million Revolving Credit Facility, which
matures in June 2025. As of December 31, 2023, the Company had
$250.0 million of USD-denominated term loans and €134.0 million of
euro-denominated term loans outstanding under its First Lien Term
Loan facilities, resulting in an Adjusted EBITDA net leverage ratio
of 4.6x based on results on a constant currency basis through the
fourth quarter of 2023. 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 December 31,
2023 and 2022:
December 31, 2023
December 31, 2022
Change
% Change
PPS Systems
(in thousands)
Cushioning machines
34.8
35.3
(0.5
)
(1.4
)
Void-Fill machines
83.7
81.6
2.1
2.6
Wrapping machines
22.7
22.2
0.5
2.3
Total
141.2
139.1
2.1
1.5
Outlook for 2024
On a constant currency basis, we are forecasting net revenue
growth in the area of 6% – 12% and AEBITDA growth of 5% – 16%,
which results in a range of $370 – $390 million in constant
currency net revenue and $80 – $89 million for AEBITDA on a
constant currency basis. Our outlook reflects our expectation of a
continuing but somewhat uneven return to a more normal operating
environment as e-Commerce buying patterns normalize and strategic
account activity ramps up, while industrial activity remains
slower. Our expected growth in Adjusted EBITDA reflects expected
strong top-line growth and a steady margin profile that is
consistent with the second half of 2023. Our focus for 2024 is to
grow volumes in PPS, scale Automation, and focus on profitability
and cash generation to de-lever. We made tremendous investments in
facilities, technology, products, and people over the past few
years. We have now transitioned to a new phase in Ranpak focused on
achieving strong returns on these investments.
Conference Call Information
The Company will host a conference call and webcast at 4:30 p.m.
(ET) on Monday, March 11, 2024. The conference call and earnings
presentation will be webcast live at the following link:
https://events.q4inc.com/attendee/432867697. 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 7:30 p.m. (ET) on Monday, March 11, 2024 and ending at
11:59 p.m. (ET) on Monday, March 18, 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”). 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. Statements that are not historical
facts, including statements about the parties, perspectives and
expectations, are forward-looking statements. 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
environmental, social and governance 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)
Year Ended December
31,
2023
2022
2021
Paper revenue
$
264.2
$
261.3
$
321.4
Machine lease revenue
51.5
50.1
47.7
Other revenue
20.6
15.1
14.8
Net revenue
336.3
326.5
383.9
Cost of goods sold
213.0
226.9
235.0
Gross profit
123.3
99.6
148.9
Selling, general and administrative
expenses
91.8
105.5
98.3
Depreciation and amortization expense
33.8
32.1
35.0
Other operating expense, net
5.2
4.5
3.4
Income (loss) from operations
(7.5
)
(42.5
)
12.2
Interest expense
24.3
20.7
22.4
Foreign currency gain
(0.3
)
(2.2
)
(5.3
)
Other non-operating income, net
(0.2
)
(4.3
)
-
Loss before income tax benefit
(31.3
)
(56.7
)
(4.9
)
Income tax benefit
(4.2
)
(15.3
)
(2.1
)
Net loss
$
(27.1
)
$
(41.4
)
$
(2.8
)
Two-class method
Basic and diluted loss per share
$
(0.33
)
$
(0.51
)
$
(0.04
)
Class A – basic and diluted loss per
share
$
(0.33
)
$
(0.51
)
$
(0.04
)
Class C – basic and diluted loss per
share
$
(0.34
)
$
(0.51
)
$
(0.03
)
Weighted average number of shares
outstanding – Class A and C – basic and diluted
82,374,605
81,877,334
78,542,734
Other comprehensive income (loss), before
tax
Foreign currency translation
adjustments
$
2.0
$
(7.2
)
$
(13.1
)
Interest rate swap adjustments
(7.9
)
14.1
7.3
Total other comprehensive income
(loss), before tax
(5.9
)
6.9
(5.8
)
Provision (benefit) for income taxes
related to other comprehensive income (loss)
(2.8
)
4.3
2.3
Total other comprehensive income
(loss), net of tax
(3.1
)
2.6
(8.1
)
Comprehensive loss, net of tax
$
(30.2
)
$
(38.8
)
$
(10.9
)
Ranpak Holdings Corp.
Unaudited Condensed
Consolidated Balance Sheets
(in millions, except share
data)
December 31, 2023
December 31, 2022
Assets
Current assets
Cash and cash equivalents
$
62.0
$
62.8
Accounts receivable, net
31.6
33.0
Inventories, net
17.3
25.0
Income tax receivable
0.9
2.1
Prepaid expenses and other current
assets
13.1
16.7
Total current assets
124.9
139.6
Property, plant and equipment, net
142.1
124.0
Operating lease right-of-use assets,
net
23.7
6.0
Goodwill
450.1
446.7
Intangible assets, net
345.4
372.1
Deferred tax assets
0.1
0.6
Other assets
36.4
44.5
Total assets
$
1,122.7
$
1,133.5
Liabilities and Shareholders'
Equity
Current liabilities
Accounts payable
$
17.6
$
24.3
Accrued liabilities and other
22.1
10.6
Current portion of long-term debt
2.5
1.3
Operating lease liabilities, current
3.8
2.0
Deferred revenue
2.0
0.9
Total current liabilities
48.0
39.1
Long-term debt
397.8
391.7
Deferred tax liabilities
71.6
80.8
Derivative instruments
6.3
3.7
Operating lease liabilities,
non-current
24.7
4.0
Other liabilities
2.3
1.4
Total liabilities
550.7
520.7
Commitments and contingencies – Note
18
Shareholders' equity
Class A common stock, $0.0001 par,
200,000,000 shares authorized at December 31, 2023 and 2022
Shares issued and outstanding: 79,684,170
and 79,086,372 at December 31, 2023 and 2022, respectively
-
-
Convertible Class C common stock, $0.0001
par, 200,000,000 shares authorized at December 31, 2023 and
2022
Shares issued and outstanding: 2,921,099
at December 31, 2023 and 2022
-
-
Additional paid-in capital
693.7
704.3
Accumulated deficit
(123.8
)
(96.7
)
Accumulated other comprehensive income
2.1
5.2
Total shareholders' equity
572.0
612.8
Total liabilities and shareholders'
equity
$
1,122.7
$
1,133.5
Ranpak Holdings Corp.
Unaudited Condensed
Consolidated Statements of Cash Flows
(in millions)
Year Ended December
31,
2023
2022
2021
Cash Flows from Operating
Activities
Net loss
$
(27.1
)
$
(41.4
)
$
(2.8
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
69.6
69.0
73.6
Amortization of deferred financing
costs
2.2
1.5
1.9
Loss on disposal of fixed assets
1.4
1.1
1.8
Deferred income taxes
(5.9
)
(19.7
)
(12.8
)
Amortization of initial value of interest
rate swap
(2.4
)
(0.8
)
(0.8
)
Foreign currency gain
(0.3
)
(2.2
)
(5.5
)
Amortization of restricted stock units
(10.2
)
18.3
22.5
Amortization of cloud-based software
implementation costs
3.0
2.8
-
Unrealized gain on investments in small
private businesses
-
(3.9
)
-
Changes in operating assets and
liabilities:
(Increase) decrease in receivables,
net
1.9
9.1
(6.9
)
(Increase) decrease in inventory
5.3
7.6
(17.2
)
(Increase) decrease in prepaid expenses
and other assets
(2.3
)
(1.6
)
(0.5
)
Increase (decrease) in accounts
payable
(0.7
)
(12.4
)
5.7
Increase (decrease) in accrued
liabilities
13.5
(14.4
)
6.9
Change in other assets and liabilities
4.6
(11.9
)
(11.6
)
Net cash provided by operating
activities
52.6
1.1
54.3
Cash Flows from Investing
Activities
Capital expenditures:
Converter equipment
(31.4
)
(31.6
)
(42.3
)
Other capital expenditures
(23.9
)
(13.2
)
(12.2
)
Total capital expenditures
(55.3
)
(44.8
)
(54.5
)
Cash paid for investments in small private
businesses
-
(2.1
)
(14.1
)
Proceeds from sale of plant, property, and
equipment
2.9
-
-
Cash inflow from settlement of net
investment hedges
-
10.0
-
Patent and trademark expenditures
-
(1.0
)
(1.2
)
Net cash used in investing
activities
(52.4
)
(37.9
)
(69.8
)
Cash Flows from Financing
Activities
Proceeds from equity offerings, gross
-
-
104.0
Prepayments on term loan
-
-
(20.9
)
Principal payments on term loans
(1.9
)
(1.1
)
(1.6
)
Financing costs of debt and equity
transactions
(1.0
)
-
(0.6
)
Proceeds from equipment financing
3.2
-
-
Payments on equipment financing
(0.5
)
-
-
Payments on finance lease liabilities
(1.1
)
(0.9
)
(0.7
)
Exit Payment
-
-
(8.2
)
Tax payments for withholdings on
stock-based awards distributed
(0.5
)
(2.5
)
-
Net cash provided by (used in)
financing activities
(1.8
)
(4.5
)
72.0
Effect of Exchange Rate Changes on Cash
and Cash Equivalents
0.8
0.2
(1.1
)
Net Increase (Decrease) in Cash and
Cash Equivalents
(0.8
)
(41.1
)
55.4
Cash and Cash Equivalents, beginning of
period
62.8
103.9
48.5
Cash and Cash Equivalents, end of
period
$
62.0
$
62.8
$
103.9
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, constant currency EBITDA and constant currency AEBITDA can
provide a useful measure for period-to-period comparisons of our
primary business operations.
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 months and year ended
December 31, 2023 and 2022. 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 months and year ended December 31, 2023 and
2022.
This press release also includes forecasts for certain non-GAAP
metrics. We are unable to provide a reconciliation of our forecast
of net revenue on a constant currency basis for 2023 to a forecast
of net revenue on a GAAP basis without unreasonable effort
primarily because we are unable to forecast with reasonable
certainty the associated currency impact. In addition, a
reconciliation of our forecast for constant currency AEBITDA for
2023 to GAAP net income cannot be provided without unreasonable
effort because we are unable to forecast with reasonable certainty
several of the items necessary to calculate such comparable GAAP
measure, including asset impairments, integration related expenses,
reorganizations and discontinued operations related expenses, legal
settlement costs, constant currency adjustments, as well as other
unusual or non-recurring gains or losses. These items are
uncertain, depend on various factors, and could be material to our
results computed in accordance with GAAP. We believe the inherent
uncertainties in reconciling such non-GAAP measures for projected
periods to the most comparable GAAP measures would make the
forecasted comparable GAAP measures difficult to predict with
reasonable certainty or reliability.
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 Fourth Quarter of 2023 and
2022
Please refer to our discussion and
definitions of Non-GAAP financial measures
Non-GAAP Measures
Three Months Ended December
31,
2023
2022
$ Change
% Change
Net revenue
$
90.4
$
79.4
$
11.0
13.9
Cost of goods sold
56.3
57.1
(0.8
)
(1.4
)
Gross profit
34.1
22.3
11.8
52.9
Selling, general and administrative
expenses
27.4
18.7
8.7
46.5
Depreciation and amortization expense
9.6
8.1
1.5
18.5
Other operating expense, net
1.7
1.1
0.6
54.5
Loss from operations
(4.6
)
(5.6
)
1.0
(17.9
)
Interest expense
5.9
5.5
0.4
7.3
Foreign currency (gain) loss
(0.5
)
1.9
(2.4
)
(126.3
)
Other non-operating (income) expense,
net
0.6
(0.3
)
0.9
(300.0
)
Loss before income tax benefit
(10.6
)
(12.7
)
2.1
(16.5
)
Income tax benefit
(1.3
)
(5.4
)
4.1
(75.9
)
Net loss
(9.3
)
(7.3
)
(2.0
)
27.4
Depreciation and amortization expense –
COS
10.6
8.1
2.5
30.9
Depreciation and amortization expense –
D&A
9.6
8.1
1.5
18.5
Interest expense
5.9
5.5
0.4
7.3
Income tax benefit
(1.3
)
(5.4
)
4.1
(75.9
)
EBITDA(1)
15.5
9.0
6.5
72.2
Adjustments(2):
Unrealized (gain) loss translation
(0.5
)
1.9
(2.4
)
(126.3
)
Non-cash impairment losses
0.6
0.5
0.1
20.0
M&A, restructuring, severance
2.8
0.3
2.5
833.3
Amortization of restricted stock units
1.6
(2.5
)
4.1
(164.0
)
Amortization of cloud-based software
implementation costs(3)
0.8
0.7
0.1
14.3
Cloud-based software implementation
costs
1.2
0.9
0.3
33.3
SOX remediation costs
0.8
-
0.8
-
Other adjustments
0.7
1.0
(0.3
)
(30.0
)
Constant currency
0.9
1.1
(0.2
)
(18.2
)
Constant Currency AEBITDA(1)
$
24.4
$
12.9
$
11.5
89.1
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 Year Ended December 31, 2023
and 2022
Please refer to our discussion and
definitions of Non-GAAP financial measures
Non-GAAP Measures
Year Ended December
31,
2023
2022
$ Change
% Change
Net revenue
$
336.3
$
326.5
$
9.8
3.0
Cost of goods sold
213.0
226.9
(13.9
)
(6.1
)
Gross profit
123.3
99.6
23.7
23.8
Selling, general and administrative
expenses
91.8
105.5
(13.7
)
(13.0
)
Depreciation and amortization expense
33.8
32.1
1.7
5.3
Other operating expense, net
5.2
4.5
0.7
15.6
Loss from operations
(7.5
)
(42.5
)
35.0
(82.4
)
Interest expense
24.3
20.7
3.6
17.4
Foreign currency gain
(0.3
)
(2.2
)
1.9
(86.4
)
Other non-operating income, net
(0.2
)
(4.3
)
4.1
(95.3
)
Loss before income tax benefit
(31.3
)
(56.7
)
25.4
(44.8
)
Income tax benefit
(4.2
)
(15.3
)
11.1
(72.5
)
Net loss
(27.1
)
(41.4
)
14.3
(34.5
)
Depreciation and amortization expense –
COS
35.8
36.8
(1.0
)
(2.7
)
Depreciation and amortization expense –
D&A
33.8
32.1
1.7
5.3
Interest expense
24.3
20.7
3.6
17.4
Income tax benefit
(4.2
)
(15.3
)
11.1
(72.5
)
EBITDA(1)
62.6
32.9
29.7
90.3
Adjustments(2):
Unrealized gain translation
(0.3
)
(2.3
)
2.0
(87.0
)
Non-cash impairment losses
1.5
1.0
0.5
50.0
M&A, restructuring, severance
5.8
2.0
3.8
190.0
Amortization of restricted stock units
(10.2
)
18.3
(28.5
)
(155.7
)
Amortization of cloud-based software
implementation costs(3)
3.0
2.8
0.2
7.1
Cloud-based software implementation
costs
4.3
7.4
(3.1
)
(41.9
)
Unrealized gain on investment in small
private business
-
(3.9
)
3.9
(100.0
)
SOX remediation costs
4.2
-
4.2
-
Other adjustments
2.5
4.3
(1.8
)
(41.9
)
Constant currency
3.1
4.3
(1.2
)
(27.9
)
Constant Currency AEBITDA(1)
$
76.5
$
66.8
$
9.7
14.5
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
For the Fourth Quarter of 2023
Please refer to our discussion and
definitions of Non-GAAP financial measures, including Non-GAAP
Constant Currency
Three Months Ended December
31, 2023
As reported
Constant Currency(4)
Non-GAAP
Net revenue
$
90.4
$
3.5
$
93.9
Cost of goods sold
56.3
2.2
58.5
Gross profit
34.1
1.3
35.4
Selling, general and administrative
expenses
27.4
1.0
28.4
Depreciation and amortization expense
9.6
0.2
9.8
Other operating expense, net
1.7
0.1
1.8
Loss from operations
(4.6
)
-
(4.6
)
Interest expense
5.9
0.2
6.1
Foreign currency gain
(0.5
)
(0.1
)
(0.6
)
Other non-operating expense, net
0.6
-
0.6
Loss before income tax benefit
(10.6
)
(0.1
)
(10.7
)
Income tax benefit
(1.3
)
0.2
(1.1
)
Net loss
$
(9.3
)
$
(0.3
)
$
(9.6
)
Constant currency-effected
add(1):
Depreciation and amortization expense –
COS
10.9
Depreciation and amortization expense –
D&A
9.8
Interest expense
6.1
Income tax benefit
(1.1
)
Constant currency EBITDA
16.1
Constant currency-effected
adjustments(2):
Unrealized gain translation
(0.6
)
Non-cash impairment losses
0.6
M&A, restructuring, severance
2.9
Amortization of restricted stock units
1.7
Amortization of cloud-based software
implementation costs(3)
0.8
Cloud-based software implementation
costs
1.2
SOX remediation costs
0.8
Other adjustments
0.9
Constant currency AEBITDA
$
24.4
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
For the Fourth Quarter of 2022
Please refer to our discussion and
definitions of Non-GAAP financial measures, including Non-GAAP
Constant Currency
Three Months Ended December
31, 2022
As reported
Constant Currency(4)
Non-GAAP
Net revenue
$
79.4
$
5.7
$
85.1
Cost of goods sold
57.1
4.1
61.2
Gross profit
22.3
1.6
23.9
Selling, general and administrative
expenses
18.7
1.2
19.9
Depreciation and amortization expense
8.1
0.3
8.4
Other operating expense, net
1.1
0.1
1.2
Loss from operations
(5.6
)
-
(5.6
)
Interest expense
5.5
0.1
5.6
Foreign currency loss
1.9
(0.3
)
1.6
Other non-operating income, net
(0.3
)
-
(0.3
)
Loss before income tax benefit
(12.7
)
0.2
(12.5
)
Income tax benefit
(5.4
)
-
(5.4
)
Net loss
(7.3
)
0.2
(7.1
)
Constant currency-effected
add(1):
Depreciation and amortization expense –
COS
9.0
Depreciation and amortization expense –
D&A
8.4
Interest expense
5.6
Income tax benefit
(5.4
)
Constant currency EBITDA
10.5
Constant currency-effected
adjustments(2):
Unrealized loss translation
1.6
Non-cash impairment losses
0.6
M&A, restructuring, severance
0.3
Amortization of restricted stock units
(2.5
)
Amortization of cloud-based software
implementation costs(3)
0.8
Cloud-based software implementation
costs
1.0
Other adjustments
0.6
Constant currency AEBITDA
$
12.9
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
For the Year Ended December 31,
2023
Please refer to our discussion and
definitions of Non-GAAP financial measures, including Non-GAAP
Constant Currency
Year Ended December 31,
2023
As reported
Constant Currency(4)
Non-GAAP
Net revenue
$
336.3
$
12.7
$
349.0
Cost of goods sold
213.0
7.8
220.8
Gross profit
123.3
4.9
128.2
Selling, general and administrative
expenses
91.8
3.1
94.9
Depreciation and amortization expense
33.8
0.6
34.4
Other operating expense, net
5.2
0.1
5.3
Loss from operations
(7.5
)
1.1
(6.4
)
Interest expense
24.3
0.4
24.7
Foreign currency gain
(0.3
)
-
(0.3
)
Other non-operating (income) loss, net
(0.2
)
1.2
1.0
Loss before income tax benefit
(31.3
)
(0.5
)
(31.8
)
Income tax benefit
(4.2
)
(0.2
)
(4.4
)
Net loss
$
(27.1
)
$
(0.3
)
$
(27.4
)
Constant currency-effected
add(1):
Depreciation and amortization expense –
COS
36.8
Depreciation and amortization expense –
D&A
34.4
Interest expense
24.7
Income tax benefit
(4.4
)
Constant currency EBITDA
64.1
Constant currency-effected
adjustments(2):
Unrealized gain translation
(0.3
)
Non-cash impairment losses
1.6
M&A, restructuring, severance
6.0
Amortization of restricted stock units
(10.3
)
Amortization of cloud-based software
implementation costs(3)
3.1
Cloud-based software implementation
costs
4.3
SOX remediation costs
4.2
Other adjustments
3.8
Constant currency AEBITDA
$
76.5
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
For the Year Ended December 31,
2022
Please refer to our discussion and
definitions of Non-GAAP financial measures, including Non-GAAP
Constant Currency
Year Ended December 31,
2022
As reported
Constant Currency(4)
Non-GAAP
Net revenue
$
326.5
$
17.6
$
344.1
Cost of goods sold
226.9
12.1
239.0
Gross profit
99.6
5.5
105.1
Selling, general and administrative
expenses
105.5
3.6
109.1
Depreciation and amortization expense
32.1
0.8
32.9
Other operating expense, net
4.5
1.7
6.2
Loss from operations
(42.5
)
(0.6
)
(43.1
)
Interest expense
20.7
0.3
21.0
Foreign currency gain
(2.2
)
0.2
(2.0
)
Other non-operating income, net
(4.3
)
-
(4.3
)
Loss before income tax benefit
(56.7
)
(1.1
)
(57.8
)
Income tax benefit
(15.3
)
(0.4
)
(15.7
)
Net loss
$
(41.4
)
$
(0.7
)
$
(42.1
)
Constant currency-effected
add(1):
Depreciation and amortization expense –
COS
38.9
Depreciation and amortization expense –
D&A
32.9
Interest expense
21.0
Income tax benefit
(15.7
)
Constant currency EBITDA
35.0
Constant currency-effected
adjustments(2):
Unrealized gain translation
(2.1
)
Non-cash impairment losses
1.1
M&A, restructuring, severance
2.1
Amortization of restricted stock units
18.3
Amortization of cloud-based software
implementation costs(3)
3.0
Cloud-based software implementation
costs
7.6
Unrealized gain on investment in small
private business
(3.9
)
Other adjustments
5.7
Constant currency AEBITDA
$
66.8
(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/20240311162153/en/
Contact for Investors: IR@Ranpak.com
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