- Packaging System placement up 2.5% year over year to
approximately 142,000 machines at September 30, 2023
- Net revenue for the third quarter increased 6.4% year over
year to $82.8 million and increased 1.9% year over year on a
constant currency basis to $85.7 million
- Net loss for the third quarter of $3.3 million compared to
net loss of $8.7 million in the prior period and Adjusted EBITDA
(“AEBITDA”) of $18.0 million up 8.4%, 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 solutions for e-Commerce and industrial supply
chains, today reported its third quarter 2023 financial
results.
“We are pleased to report continued improvement in our operating
and financial profile as volumes increased year over year and we
continue to see gross margin expansion,” said Omar M. Asali,
Chairman and Chief Executive of Ranpak. “Sales for the quarter
increased 6.4% year over year, or 1.9% on a constant currency
basis, as volumes increased 5% but were partially offset by price
giveback in certain regions. Overall the environment remains
challenging as consumer spend is more heavily allocated to
experiences rather than discretionary goods and the impact of
inflationary and interest rate pressures continue to impact
consumer and corporate spend. In addition to seeing volumes improve
for the first time since 2021, the continued favorable input cost
environment drove gross margin expansion of more than 650 bps year
over year and 1000 bps above the fourth quarter of 2022 to 38.0%,
or 38.2% on a constant currency basis. Gross profit improvement of
29.1%, or 23.4% on a constant currency basis, drove an increase of
Adjusted EBITDA by 8.4% year over year to $18.0 million on a
constant currency basis.”
“Although the environment remains inconsistent, we are pleased
to see the continued year over year improvement of Gross Profit and
Adjusted EBITDA on a constant currency basis and expect to build on
that in the fourth quarter as we enter our seasonal peak. Although
there is a great deal of uncertainty in the world right now, I
believe we have turned the corner in the business and are on the
path to realizing the benefits of the investments and efforts we
have made over the past few years. I believe we are exiting 2023
with good momentum in the pipeline for PPS and Automation and that
we will build on the progress we have made this year. In addition
to driving topline and returning to growth, our top priorities as
an organization are deleveraging and maximizing the return on our
existing investments.”
Third Quarter 2023 Highlights
- Packaging systems placement increased 2.5% year over year, to
approximately 142,000 machines as of September 30, 2023
- Net revenue increased 6.4% and increased 1.9% adjusting for
constant currency
- Net loss of $3.3 million compared to net loss of $8.7
million
- Constant currency AEBITDA1 of $18.0 million for the three
months ended September 30, 2023 is up 8.4%
Net revenue for the third quarter of 2023 was $82.8 million
compared to $77.8 million in the third quarter of 2022, an increase
of $5.0 million or 6.4% year over year. Net revenue was positively
impacted by increases in cushioning, void-fill, and other products,
partially offset by a decrease in wrapping. Currency rates
contributed a benefit of 4.5%, though revenue was negatively
affected by lower economic activity, the impact inflationary
pressures are having on consumer and corporate budgets, and
increased business sponsoring costs. Cushioning increased $2.3
million, or 6.9%, to $35.7 million from $33.4 million; void-fill
increased $2.9 million, or 9.3%, to $34.2 million from $31.3
million; wrapping decreased $1.5 million, or 15.6%, to $8.1 million
from $9.6 million; and other sales increased $1.3 million, or
37.1%, to $4.8 million from $3.5 million for the third quarter of
2023 compared to the third 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. The increase in net revenue is quantified by an
increase in the volume of sales of our paper consumable products of
approximately 5.2% and a 4.5% decrease in the price or mix of our
paper consumable products, partially offset by an increase of 1.1%
in sales of automated box sizing equipment. Constant currency net
revenue was $85.7 million for the third quarter of 2023, a 1.9%
increase from $84.1 million for the third quarter of 2022.
Net revenue in North America for the third quarter of 2023
totaled $34.9 million compared to $33.4 million in the third
quarter of 2022. The increase of $1.5 million, or 4.5%, was
primarily attributable to increases in void-fill, partially offset
by decreases in wrapping, cushioning, and other sales.
Net revenue in Europe/Asia for the third quarter of 2023 totaled
$47.9 million compared to $44.4 million in the third quarter of
2022. The increase of $3.5 million, or 7.9%, was driven by
increases from void-fill, cushioning and other sales, partially
offset by a decrease in wrapping. Constant currency net revenue in
Europe/Asia was $50.8 million for the third quarter of 2023, a $0.1
million, or 0.2%, increase from $50.7 million for the third quarter
of 2022.
__________________________
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 2023 Highlights
- Net revenue decreased 0.5% and decreased 1.5% adjusting for
constant currency
- Net loss of $17.8 million compared to net loss of $34.1
million
- Constant currency AEBITDA of $52.1 million for the nine months
ended September 30, 2023 is down 3.3%
Balance Sheet and Liquidity
Ranpak completed the third quarter of 2023 with a strong
liquidity position, including a cash balance of $52.1 million and
no borrowings on its $45 million Revolving Credit Facility. As of
September 30, 2023, the Company had First Lien Term Loan facilities
outstanding consisting of a $250.0 million USD-denominated term
loan and €134.4 million euro-denominated term loan resulting in an
Adjusted EBITDA net leverage ratio of 5.6x based on results on a
constant currency basis through the third 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 September 30,
2023 and 2022:
September 30, 2023
September 30, 2022
Change
% Change
PPS Systems
(in thousands)
Cushioning machines
34.8
35.4
(0.6
)
(1.7
)
Void-Fill machines
84.7
81.2
3.5
4.3
Wrapping machines
22.5
22.0
0.5
2.3
Total
142.0
138.6
3.4
2.5
Conference Call Information
The Company will host a conference call and webcast at 8:30 a.m.
(ET) on Tuesday, October 31, 2023. The conference call and earnings
presentation will be webcast live at the following link:
https://events.q4inc.com/attendee/482231394. Investors who cannot
access the webcast may listen to the conference call live via
telephone by dialing (833) 470-1428 or (833) 950-0062 and use the
Conference ID: 524301.
A telephonic replay of the webcast also will be available
starting at 11:30 a.m. (ET) on Tuesday, October 31, 2023 and ending
at 11:59 p.m. (ET) on Tuesday, November 7, 2023. To listen to the
replay, please dial (866) 813-9403 and use the passcode:
703241.
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 the
price of kraft paper on our results of operations; (iii) our
reliance on third party suppliers; (iv) the COVID-19 pandemic, the
Russia and Ukraine conflict, and associated responses; (v) the high
degree of competition in the markets in which we operate; (vi)
consumer sensitivity to increases in the prices of our products;
(vii) changes in consumer preferences with respect to paper
products generally; (viii) continued consolidation in the markets
in which we operate; (ix) the loss of significant end-users of our
products or a large group of such end-users; (x) our failure to
develop new products that meet our sales or margin expectations;
(xi) our future operating results fluctuating, failing to match
performance or to meet expectations; (xii) our ability to fulfill
our public company obligations; (xiii) our exposure to changes in
interest rates; and (xiv) 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,
2023
2022
2023
2022
Paper revenue
$
64.8
$
62.6
$
192.4
$
199.0
Machine lease revenue
13.2
11.7
38.7
36.4
Other revenue
4.8
3.5
14.8
11.7
Net revenue
82.8
77.8
245.9
247.1
Cost of goods sold
51.3
53.4
156.7
169.8
Gross profit
31.5
24.4
89.2
77.3
Selling, general and administrative
expenses
20.9
26.8
64.4
86.8
Depreciation and amortization expense
8.1
7.8
24.2
24.0
Other operating expense, net
0.9
1.5
3.5
3.4
Income (loss) from operations
1.6
(11.7
)
(2.9
)
(36.9
)
Interest expense
6.8
5.3
18.4
15.2
Foreign currency (gain) loss
(0.7
)
(1.2
)
0.2
(4.1
)
Other non-operating income, net
(0.1
)
(4.0
)
(0.8
)
(4.0
)
Loss before income tax expense
(benefit)
(4.4
)
(11.8
)
(20.7
)
(44.0
)
Income tax expense (benefit)
(1.1
)
(3.1
)
(2.9
)
(9.9
)
Net loss
$
(3.3
)
$
(8.7
)
$
(17.8
)
$
(34.1
)
Two-class method
Loss per share
Basic
$
(0.04
)
$
(0.11
)
$
(0.22
)
$
(0.42
)
Diluted
$
(0.04
)
$
(0.11
)
$
(0.22
)
$
(0.42
)
Class A – earnings (loss) per share
Basic
$
(0.04
)
$
(0.11
)
$
(0.22
)
$
(0.42
)
Diluted
$
(0.04
)
$
(0.11
)
$
(0.22
)
$
(0.42
)
Class C – earnings (loss) per share
Basic
$
(0.03
)
$
(0.10
)
$
(0.21
)
$
(0.41
)
Diluted
$
(0.03
)
$
(0.10
)
$
(0.21
)
$
(0.41
)
Weighted average number of shares
outstanding – Class A and C
Basic
82,322,957
81,979,986
82,297,985
81,833,718
Diluted
82,322,957
81,979,986
82,297,985
81,833,718
Other comprehensive income (loss), before
tax
Foreign currency translation
adjustments
$
(4.6
)
$
(9.8
)
$
(2.0
)
$
(24.3
)
Interest rate swap adjustments
(2.2
)
3.3
(5.3
)
14.1
Cross-currency swap adjustments
2.7
2.7
1.0
7.0
Total other comprehensive income
(loss), before tax
(4.1
)
(3.8
)
(6.3
)
(3.2
)
Provision (benefit) for income taxes
related to other comprehensive income (loss)
0.1
1.5
(1.1
)
5.2
Total other comprehensive income
(loss), net of tax
(4.2
)
(5.3
)
(5.2
)
(8.4
)
Comprehensive loss, net of tax
$
(7.5
)
$
(14.0
)
$
(23.0
)
$
(42.5
)
Ranpak Holdings Corp.
Unaudited Condensed
Consolidated Balance Sheets
(in millions, except share
data)
September 30, 2023
December 31, 2022
Assets
Current assets
Cash and cash equivalents
$
52.1
$
62.8
Accounts receivable, net
32.2
33.0
Inventories, net
18.6
25.0
Income tax receivable
3.7
2.1
Prepaid expenses and other current
assets
16.8
16.7
Total current assets
123.4
139.6
Property, plant and equipment, net
134.6
124.0
Operating lease right-of-use assets,
net
21.8
6.0
Goodwill
445.4
446.7
Intangible assets, net
349.5
372.1
Deferred tax assets
0.6
0.6
Other assets
43.9
44.5
Total assets
$
1,119.2
$
1,133.5
Liabilities and Shareholders'
Equity
Current liabilities
Accounts payable
$
19.7
$
24.3
Accrued liabilities and other
18.1
10.6
Current portion of long-term debt
2.3
1.3
Operating lease liabilities, current
3.0
2.0
Deferred revenue
2.8
0.9
Total current liabilities
45.9
39.1
Long-term debt
390.0
391.7
Deferred tax liabilities
78.1
80.8
Derivative instruments
2.7
3.7
Operating lease liabilities,
non-current
23.2
4.0
Other liabilities
1.7
1.4
Total liabilities
541.6
520.7
Commitments and contingencies – Note
13
Shareholders' equity
Class A common stock, $0.0001 par,
200,000,000 shares authorized at September 30, 2023 and December
31, 2022
Shares issued and outstanding: 79,652,315
and 79,086,372 at September 30, 2023 and December 31, 2022,
respectively
-
-
Convertible Class C common stock, $0.0001
par, 200,000,000 shares authorized at September 30, 2023 and
December 31, 2022
Shares issued and outstanding: 2,921,099
at September 30, 2023 and December 31, 2022
-
-
Additional paid-in capital
692.1
704.3
Accumulated deficit
(114.5
)
(96.7
)
Accumulated other comprehensive income
-
5.2
Total shareholders' equity
577.6
612.8
Total liabilities and shareholders'
equity
$
1,119.2
$
1,133.5
Ranpak Holdings Corp.
Unaudited Condensed
Consolidated Statements of Cash Flows
(in millions)
Nine Months Ended September
30,
2023
2022
Cash Flows from Operating
Activities
Net loss
$
(17.8
)
$
(34.1
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization
49.4
52.8
Amortization of deferred financing
costs
1.5
1.1
Loss on disposal of fixed assets
0.8
0.9
Deferred income taxes
(1.5
)
(8.2
)
Amortization of initial value of interest
rate swap
(1.6
)
(0.6
)
Currency (gain) loss on foreign
denominated debt and notes payable
0.2
(3.8
)
Amortization of restricted stock units
(11.8
)
20.8
Amortization of cloud-based software
implementation costs
2.2
2.1
Unrealized gain on investments in small
private businesses
-
(3.9
)
Changes in operating assets and
liabilities:
(Increase) decrease in receivables,
net
(4.1
)
(0.2
)
(Increase) decrease in inventory
3.3
(1.5
)
(Increase) decrease in prepaid expenses
and other assets
(1.9
)
(3.3
)
Increase (decrease) in accounts
payable
(1.2
)
(4.2
)
Increase (decrease) in accrued
liabilities
11.3
(4.9
)
Change in other assets and liabilities
(5.8
)
(22.5
)
Net cash provided by (used in)
operating activities
23.0
(9.5
)
Cash Flows from Investing
Activities
Capital expenditures:
Converter equipment
(17.5
)
(23.4
)
Other capital expenditures
(17.4
)
(10.6
)
Total capital expenditures
(34.9
)
(34.0
)
Cash paid for investments in small private
businesses
-
(2.1
)
Cash inflow from settlement of net
investment hedges
-
10.0
Patent and trademark expenditures
-
(1.0
)
Proceeds from sale of plant, property, and
equipment
2.9
-
Net cash used in investing
activities
(32.0
)
(27.1
)
Cash Flows from Financing
Activities
Proceeds from equipment financing
2.3
-
Financing costs of debt facilities
(1.0
)
-
Principal payments on term loans
(1.5
)
(1.2
)
Payments on finance lease liabilities
(0.7
)
(0.6
)
Tax payments for withholdings on
stock-based awards distributed
(0.5
)
(2.5
)
Net cash used in financing
activities
(1.4
)
(4.3
)
Effect of Exchange Rate Changes on
Cash
(0.3
)
(1.7
)
Net Decrease in Cash and Cash
Equivalents
(10.7
)
(42.6
)
Cash and Cash Equivalents, beginning of
period
62.8
103.9
Cash and Cash Equivalents, end of
period
$
52.1
$
61.3
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 and nine months ended
September 30, 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 and nine months ended September 30, 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 Third Quarter of 2023 and
2022
Please refer to our discussion and
definitions of Non-GAAP financial measures
Three Months Ended September
30,
2023
2022
$ Change
% Change
Net revenue
$
82.8
$
77.8
$
5.0
6.4
Cost of goods sold
51.3
53.4
(2.1
)
(3.9
)
Gross profit
31.5
24.4
7.1
29.1
Selling, general and administrative
expenses
20.9
26.8
(5.9
)
(22.0
)
Depreciation and amortization expense
8.1
7.8
0.3
3.8
Other operating expense, net
0.9
1.5
(0.6
)
(40.0
)
Income (loss) from operations
1.6
(11.7
)
13.3
(113.7
)
Interest expense
6.8
5.3
1.5
28.3
Foreign currency gain
(0.7
)
(1.2
)
0.5
(41.7
)
Other non-operating income, net
(0.1
)
(4.0
)
3.9
(97.5
)
Loss before income tax benefit
(4.4
)
(11.8
)
7.4
(62.7
)
Income tax expense (benefit)
(1.1
)
(3.1
)
2.0
(64.5
)
Net loss
(3.3
)
(8.7
)
5.4
(62.1
)
Depreciation and amortization expense –
COS
8.3
8.3
-
-
Depreciation and amortization expense –
D&A
8.1
7.8
0.3
3.8
Interest expense
6.8
5.3
1.5
28.3
Income tax expense (benefit)
(1.1
)
(3.1
)
2.0
(64.5
)
EBITDA(1)
18.8
9.6
9.2
95.8
Adjustments(2):
Unrealized (gain) loss translation
(0.6
)
(1.3
)
0.7
(53.8
)
Non-cash impairment losses
-
0.3
(0.3
)
(100.0
)
M&A, restructuring, severance
1.5
0.1
1.4
1,400.0
Amortization of restricted stock units
(5.1
)
6.7
(11.8
)
(176.1
)
Amortization of cloud-based software
implementation costs(3)
0.7
0.7
-
-
Cloud-based software implementation
costs
0.7
1.7
(1.0
)
(58.8
)
Unrealized gain on investment in small
private business
-
(3.9
)
3.9
(100.0
)
SOX remediation costs
1.0
-
1.0
―
Other adjustments
0.4
0.8
(0.4
)
(50.0
)
Constant currency
0.6
1.9
(1.3
)
(68.4
)
Constant Currency AEBITDA(1)
$
18.0
$
16.6
$
1.4
8.4
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 Nine Months Ended September 30,
2023 and 2022
Please refer to our discussion and
definitions of Non-GAAP financial measures
Nine Months Ended September
30,
2023
2022
$ Change
% Change
Net revenue
$
245.9
$
247.1
$
(1.2
)
(0.5
)
Cost of goods sold
156.7
169.8
(13.1
)
(7.7
)
Gross profit
89.2
77.3
11.9
15.4
Selling, general and administrative
expenses
64.4
86.8
(22.4
)
(25.8
)
Depreciation and amortization expense
24.2
24.0
0.2
0.8
Other operating expense, net
3.5
3.4
0.1
2.9
Income (loss) from operations
(2.9
)
(36.9
)
34.0
(92.1
)
Interest expense
18.4
15.2
3.2
21.1
Foreign currency gain
0.2
(4.1
)
4.3
(104.9
)
Other non-operating income, net
(0.8
)
(4.0
)
3.2
(80.0
)
Loss before income tax benefit
(20.7
)
(44.0
)
23.3
(53.0
)
Income tax benefit
(2.9
)
(9.9
)
7.0
(70.7
)
Net loss
(17.8
)
(34.1
)
16.3
(47.8
)
Depreciation and amortization expense –
COS
25.2
28.7
(3.5
)
(12.2
)
Depreciation and amortization expense –
D&A
24.2
24.0
0.2
0.8
Interest expense
18.4
15.2
3.2
21.1
Income tax benefit
(2.9
)
(9.9
)
7.0
(70.7
)
EBITDA(1)
47.1
23.9
23.2
97.1
Adjustments(2):
Unrealized gain translation
0.2
(4.2
)
4.4
(104.8
)
Non-cash impairment losses
0.9
0.5
0.4
80.0
M&A, restructuring, severance
3.0
1.7
1.3
76.5
Amortization of restricted stock units
(11.8
)
20.8
(32.6
)
(156.7
)
Amortization of cloud-based software
implementation costs(3)
2.2
2.1
0.1
4.8
Cloud-based software implementation
costs
3.1
6.5
(3.4
)
(52.3
)
Unrealized gain on investment in small
private business
-
(3.9
)
3.9
(100.0
)
SOX remediation costs
3.4
-
3.4
―
Other adjustments
1.8
3.3
(1.5
)
(45.5
)
Constant currency
2.2
3.2
(1.0
)
(31.3
)
Constant Currency AEBITDA(1)
$
52.1
$
53.9
$
(1.8
)
(3.3
)
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
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
Loss 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, 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):
Unrealized (gain) loss translation
(0.6
)
Non-cash impairment losses
-
M&A, restructuring, severance
1.4
Amortization of restricted stock units
(5.3
)
Amortization of cloud-based software
implementation costs(3)
0.7
Cloud-based software implementation
costs
0.7
SOX remediation costs
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
For the Third Quarter of 2022
Please refer to our discussion and
definitions of Non-GAAP financial measures, including Non-GAAP
Constant Currency
Three Months Ended September
30, 2022
As reported
Constant Currency(4)
Non-GAAP
Net revenue
$
77.8
$
6.3
$
84.1
Cost of goods sold
53.4
4.2
57.6
Gross profit
24.4
2.1
26.5
Selling, general and administrative
expenses
26.8
1.1
27.9
Depreciation and amortization expense
7.8
0.3
8.1
Other operating expense, net
1.5
0.9
2.4
Income from operations
(11.7
)
(0.2
)
(11.9
)
Interest expense
5.3
0.1
5.4
Foreign currency gain
(1.2
)
0.3
(0.9
)
Other non-operating income, net
(4.0
)
-
(4.0
)
Loss before income tax benefit
(11.8
)
(0.6
)
(12.4
)
Income tax benefit
(3.1
)
(0.1
)
(3.2
)
Net loss
(8.7
)
(0.5
)
(9.2
)
Constant currency-effected
add(1):
Depreciation and amortization expense –
COS
8.9
Depreciation and amortization expense –
D&A
8.1
Interest expense
5.4
Income tax benefit
(3.2
)
Constant currency EBITDA
10.0
Constant currency-effected
adjustments(2):
Unrealized gain translation
(0.9
)
Non-cash impairment losses
0.3
M&A, restructuring, severance
0.2
Amortization of restricted stock units
6.7
Amortization of cloud-based software
implementation costs(3)
0.8
Cloud-based software implementation
costs
1.6
Unrealized gain on investment in a small
private business
(3.9
)
Other adjustments
1.8
Constant currency AEBITDA
$
16.6
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
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 gain
0.2
0.1
0.3
Other non-operating income, 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):
Unrealized gain translation
0.3
Non-cash impairment losses
1.0
M&A, restructuring, severance
3.1
Amortization of restricted stock units
(12.0
)
Amortization of cloud-based software
implementation costs(3)
2.3
Cloud-based software implementation
costs
3.1
SOX remediation costs
3.4
Other adjustments
2.9
Constant currency AEBITDA
$
52.1
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
For the Nine Months Ended September 30,
2022
Please refer to our discussion and
definitions of Non-GAAP financial measures, including Non-GAAP
Constant Currency
Nine Months Ended September
30, 2022
As reported
Constant Currency(4)
Non-GAAP
Net revenue
$
247.1
$
11.9
$
259.0
Cost of goods sold
169.8
8.0
177.8
Gross profit
77.3
3.9
81.2
Selling, general and administrative
expenses
86.8
2.4
89.2
Depreciation and amortization expense
24.0
0.5
24.5
Other operating expense, net
3.4
1.6
5.0
Income from operations
(36.9
)
(0.6
)
(37.5
)
Interest expense
15.2
0.2
15.4
Foreign currency gain
(4.1
)
0.5
(3.6
)
Other non-operating income, net
(4.0
)
-
(4.0
)
Loss before income tax benefit
(44.0
)
(1.3
)
(45.3
)
Income tax benefit
(9.9
)
(0.4
)
(10.3
)
Net income
$
(34.1
)
$
(0.9
)
$
(35.0
)
Constant currency-effected
add(1):
Depreciation and amortization expense –
COS
29.9
Depreciation and amortization expense –
D&A
24.5
Interest expense
15.4
Income tax benefit
(10.3
)
Constant currency EBITDA
24.5
Constant currency-effected
adjustments(2):
Unrealized loss translation
(3.7
)
Non-cash impairment losses
0.5
M&A, restructuring, severance
1.8
Amortization of restricted stock units
20.8
Amortization of cloud-based software
implementation costs(3)
2.2
Cloud-based software implementation
costs
6.6
Unrealized gain on investment in small
private business
(3.9
)
Other adjustments
5.1
Constant currency AEBITDA
$
53.9
_______________________________
(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 is as
follows:
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Net revenue
$
2.9
$
6.3
$
9.2
$
11.9
Cost of goods sold
1.7
4.2
5.6
8.0
Gross profit
1.2
2.1
3.6
3.9
Selling, general and administrative
expenses
0.7
1.1
2.1
2.4
Depreciation and amortization expense
0.1
0.3
0.4
0.5
Other operating expense, net
-
0.9
-
1.6
Loss from operations
0.4
(0.2
)
1.1
(0.6
)
Interest expense (income)
-
0.1
0.2
0.2
Foreign currency (gain) loss
0.1
0.3
0.1
0.5
Other non-operating income, net
0.3
-
1.2
-
Income (loss) before income tax
benefit
-
(0.6
)
(0.4
)
(1.3
)
Income tax benefit
(0.1
)
(0.1
)
(0.4
)
(0.4
)
Net income (loss)
$
0.1
$
(0.5
)
$
-
$
(0.9
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231030732092/en/
Contact for Investors: IR@Ranpak.com
Ranpak (NYSE:PACK)
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