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Business Wire
6 days ago
- Business
- Business Wire
Ranpak Holdings Corp. Reports Second Quarter 2025 Financial Results
CONCORD TOWNSHIP, Ohio--(BUSINESS WIRE)--Ranpak Holdings Corp (NYSE: PACK) ('Ranpak' or 'the Company'), a leading provider of environmentally sustainable, systems-based, product protection and end-of-line automation solutions for e-commerce and industrial supply chains, today reported its second quarter 2025 financial results. Omar Asali, Chairman and Chief Executive Officer, commented, 'I am pleased to share we achieved our 8 th quarter in a row of volume growth in a challenging environment, driven by our deepening relationships with Enterprise customers in North America where we continue to make strong inroads in Protective and Automation leading me to be more optimistic for the remainder of the year. Global paper volumes increased 5.2% in the quarter and net revenue increased 6.8% year over year, or 3.8% on a constant currency basis, driven by continued strength within North American e-commerce and includes a $1.2 million non-cash reduction for warrants. Uncertainty across the globe weighed on our exclusive distribution channel in the second quarter leading to a less robust May and June globally. In general, industrial activity continues to be subdued but we did see positive volume growth in Cushioning in the quarter in an encouraging sign of a more balanced growth profile outlook among our product lines and improved profitability. AEBITDA declined 15.8%, or 18.4% on a constant currency basis year over year, driven by lower volumes in Europe and APAC and higher production costs in North America and includes a $1.2 million non-cash reduction for warrants. The margin pressures we experienced in the first quarter persisted in the second quarter though we expect our cost reduction and margin improvement initiatives are set to take hold in Q3, leading to optimism for an improved financial profile in the second half of the year. In addition to increased pricing in Q2, we executed on our cost reduction initiatives by reducing headcount, optimizing freight and logistics costs, as well as securing lower cost warehouse space reducing our use of third party storage we relied on in the first half of the year. We expect these actions among others will enable us to achieve a three to five gross margin point improvement in North America in the second half of the year. Our Automation backlog is robust for the second half and we are having good success expanding with Enterprise customers in North America. We expect to generate $40 - $45 million in Automation net revenue for 2025, with the vast majority of the second half already in backlog, implying substantial growth in the second half and driving meaningful improvement in our overall financial profile as it has been a $5 million drag on AEBITDA to start the year. With the momentum I see in the business, I believe we have a clear path to scale Automation which we expect will have a significant impact on our financial profile. We believe we have laid the groundwork for strong and profitable growth going forward. Our differentiated solutions and strong customer execution have resulted in us forming a strategic and economic relationship with one of the largest and most sophisticated players in the world when it comes to protective packaging and warehouse Automation. I can't think of a greater vote of confidence and testament to the way we have innovated here at Ranpak and delivered for customers over the past number of years. I believe what we are building here at Ranpak is special and view 2025 as the turning point where Ranpak established itself as a leading player in both Protective and Automation.' Outlook for Remainder of 2025 Given the challenging start to the year and movements in currency, we are updating our forward-looking guidance to reflect the latest operating environment. At a current exchange rate of 1 Euro to 1.15 USD, we are forecasting second half 2025 net revenue of $216 - $230 million and AEBITDA of $44.5 - $54.5 million, reflecting an estimated $4 million recognition of warrant expense over that period. Using year to date actual results and the midpoint of the remaining year guidance range this implies total 2025 net revenue of $406.5 million and AEBITDA of $83.3 million. This guidance reflects the expectation of a non-cash net revenue and AEBITDA reduction of between $4 million and $6 million in 2025 related to the recognition of warrant expense. While we have encountered headwinds to start the year, we believe Ranpak is well positioned to weather the current environment due to the diversity of our operations and global footprint as well as the value-added solutions we provide to businesses across the world. We have cemented partnerships this year that we believe position Ranpak well for strong growth and increased scale in years to come. Second Quarter 2025 Highlights Net revenue increased 6.8% (including a $1.2 million, or 1.4%, non-cash reduction from warrants) and increased 3.8% on a constant currency basis Net loss of $7.5 million compared to net income of $5.5 million for the prior year period AEBITDA (1) of $16.5 million for the three months ended June 30, 2025 is down 15.8% and down 18.4% on a constant currency basis Packaging systems placement increased 2.7% year over year, to approximately 145.0 thousand machines as of June 30, 2025 Net revenue for the second quarter of 2025 was $92.3 million compared to $86.4 million for the second quarter of 2024, an increase of $5.9 million or 6.8% (3.8% on a constant currency basis) and includes a reduction of $1.2 million to void-fill net revenue for the provision for common stock warrants. Net revenue was positively impacted by increases in cushioning, void-fill, and other net revenue, partially offset by a decrease in wrapping. Cushioning increased $1.8 million, or 5.1%, to $36.8 million from $35.0 million; void-fill increased $3.4 million, or 9.0%, to $41.1 million from $37.7 million; wrapping decreased $1.1 million, or 13.1%, to $7.3 million from $8.4 million; and other net revenue increased $1.8 million, or 32.1% to $7.1 million from $5.3 million for the second quarter of 2025 compared to the second quarter of 2024. Other net revenue includes automated box sizing equipment and non-paper revenue from packaging systems installed in the field, such as systems accessories. The increase in net revenue for the second quarter of 2025 compared to the second quarter of 2024 is quantified by an increase in the volume of sales of our paper consumable products of approximately 5.2%, a 1.8% increase in the sales of automated box sizing equipment, and a 3.0% increase from foreign currency fluctuations, partially offset by a 1.9% decrease in the price or mix of our paper consumable products and a 1.3% decrease from the provision for common stock warrants. The following table presents the non-cash impact that the Company's outstanding warrants had on the Company's results of operations during the second quarters of 2025 and 2024, respectively: Three Months Ended June 30, % Change Related to Non-cash Impact of Warrants (2) ($ amounts in millions) 2025 2024 % Change Net revenue $ 92.3 $ 86.4 6.8 % (1.4 )% Gross profit $ 28.9 $ 31.7 (8.8 )% (3.8 )% Gross margin 31.3 % 36.7 % (5.4 )% (0.9 )% AEBITDA (1) $ 16.5 $ 19.6 (15.8 )% (6.1 )% AEBITDA (1) Margin 17.9 % 22.7 % (4.8 )% (1.1 )% (see subsequent footnotes) Expand (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. (2) The non-cash reduction in revenue from warrants related to the Company's agreement with Amazon was $1.2 million in the second quarter of 2025. Expand Balance Sheet and Liquidity Ranpak completed the second quarter of 2025 with a strong liquidity position, including a cash balance of $49.2 million and no borrowings on its $50.0 million revolving credit facility, which matures in December 2029. As of June 30, 2025, the Company had $408.0 million outstanding under its USD-denominated first lien term facility, which matures in December 2031. The following table presents Ranpak's installed base of protective packaging systems by product line as of June 30, 2025 and 2024: Conference Call Information The Company will host a conference call and webcast at 8:30 a.m. (ET) on Tuesday, August 5, 2025. The conference call and earnings presentation will be webcast live at the following link: 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: 8369975. A telephonic replay of the webcast also will be available starting at 11:30 a.m. (ET) on Tuesday, August 5, 2025 and ending at 11:59 p.m. (ET) on Tuesday, August 12, 2025. To listen to the replay, please dial (800) 770-2030 and use the passcode: 8369975. Cautionary Notice 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 potential tariffs on the import of goods; (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. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net product revenue $ 77.8 $ 72.8 $ 155.4 $ 145.3 Machine lease revenue 14.5 13.6 28.1 26.4 Net revenue 92.3 86.4 183.5 171.7 Cost of product sales 56.0 48.5 110.8 94.2 Cost of leased machines 7.4 6.2 12.9 13.5 Gross profit 28.9 31.7 59.8 64.0 Selling, general and administrative expenses 28.8 27.3 57.7 55.2 Depreciation and amortization expense 8.8 8.3 17.8 16.7 Other operating expense, net 1.0 1.3 2.0 2.1 Loss from operations (9.7 ) (5.2 ) (17.7 ) (10.0 ) Interest expense 8.3 5.3 17.0 11.5 Foreign currency (gain) loss (2.6 ) 0.1 (5.2 ) (1.3 ) Other non-operating income, net (5.9 ) (17.9 ) (5.9 ) (17.9 ) (Loss) income before income tax (benefit) expense (9.5 ) 7.3 (23.6 ) (2.3 ) Income tax (benefit) expense (2.0 ) 1.8 (5.2 ) 0.3 Net (loss) income $ (7.5 ) 5.5 $ (18.4 ) $ (2.6 ) Basic and diluted (loss) income per share $ (0.09 ) $ 0.07 $ (0.22 ) $ (0.03 ) Other comprehensive income (loss), before tax Foreign currency translation adjustments $ (4.6 ) $ (0.1 ) $ (7.2 ) $ (2.2 ) Interest rate swap adjustments — (0.8 ) — (3.4 ) Cross currency swap adjustments (0.6 ) — (1.2 ) — Total other comprehensive loss, before tax (5.2 ) (0.9 ) (8.4 ) (5.6 ) Benefit for income taxes related to other comprehensive loss (4.6 ) (0.1 ) (7.0 ) — Total other comprehensive loss, net of tax (0.6 ) (0.8 ) (1.4 ) (5.6 ) Comprehensive (loss) income, net of tax $ (8.1 ) $ 4.7 $ (19.8 ) $ (8.2 ) Expand Ranpak Holdings Corp. Unaudited Condensed Consolidated Balance Sheets (in millions, except share data) December 31, 2024 Assets Current assets Cash and cash equivalents $ 49.2 $ 76.1 Accounts receivable, net 45.4 43.9 Inventories 38.1 21.7 Income tax receivable 5.8 1.8 Prepaid expenses and other current assets 13.4 7.7 Total current assets 151.9 151.2 Property, plant and equipment, net 145.2 137.6 Operating lease right-of-use assets, net 24.0 20.9 Goodwill 457.0 443.7 Intangible assets, net 306.1 312.2 Deferred tax assets 0.1 0.1 Other assets 53.7 38.5 Total assets $ 1,138.0 $ 1,104.2 Liabilities and Shareholders' Equity Current liabilities Accounts payable $ 33.2 $ 26.9 Accrued liabilities and other 35.8 28.5 Current portion of long-term debt 5.4 5.6 Operating lease liabilities, current 4.0 4.0 Deferred revenue 8.9 3.4 Total current liabilities 87.3 68.4 Long-term debt 397.7 400.8 Deferred tax liabilities 55.1 62.0 Derivative instruments 33.5 1.3 Operating lease liabilities, non-current 24.2 20.8 Other liabilities 1.2 2.8 Total liabilities 599.0 556.1 Commitments and contingencies – Note 13 Shareholders' equity Class A common stock, $0.0001 par, 200,000,000 shares authorized at June 30, 2025 and December 31, 2024; shares issued and outstanding: 84,346,019 and 83,267,367 at June 30, 2025 and December 31, 2024, respectively — — Additional paid-in capital 710.3 699.6 Accumulated deficit (163.7 ) (145.3 ) Accumulated other comprehensive loss (7.6 ) (6.2 ) Total shareholders' equity 539.0 548.1 Total liabilities and shareholders' equity $ 1,138.0 $ 1,104.2 Expand Ranpak Holdings Corp. Unaudited Condensed Consolidated Statements of Cash Flows (in millions) Six Months Ended June 30, 2025 2024 Cash Flows from Operating Activities Net loss $ (18.4 ) $ (2.6 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 31.9 35.5 Amortization of deferred financing costs 0.6 1.4 Loss on disposal of property, plant, and equipment 0.2 0.6 Gain on sale of patents — (5.4 ) Deferred income taxes (1.8 ) 3.7 Amortization of initial value of interest rate swap — (1.2 ) Foreign currency gain (5.2 ) (1.3 ) Stock-based compensation expense 4.1 2.8 Provision for common stock warrants 2.0 — Amortization of cloud-based software implementation costs 1.9 1.8 Unrealized (gain) loss on strategic investments (5.8 ) 3.5 Changes in operating assets and liabilities: Accounts receivable 1.2 (5.6 ) Inventories (15.0 ) (8.8 ) Income tax receivable (4.0 ) (6.6 ) Prepaid expenses and other current assets (4.6 ) (2.6 ) Accounts payable 5.2 9.5 Accrued liabilities and other 2.6 3.4 Change in other assets and liabilities 0.2 (3.3 ) Net cash (used in) provided by operating activities (4.9 ) 24.8 Cash Flows from Investing Activities Purchases of converter equipment (15.2 ) (15.3 ) Purchases of other property, plant, and equipment (2.1 ) (4.4 ) Proceeds from sale of patents — 5.4 Cash paid for strategic investments (2.5 ) (4.8 ) Net cash used in investing activities (19.8 ) (19.1 ) Cash Flows from Financing Activities Principal payments on term loans (2.1 ) (0.8 ) Proceeds from hedging instruments 0.3 — Proceeds from equipment financing — 0.7 Payments on equipment financing (0.4 ) (0.5 ) Payments on finance lease liabilities (1.5 ) (0.6 ) Tax payments for withholdings on stock-based awards distributed (1.2 ) (0.4 ) Net cash used in financing activities (4.9 ) (1.6 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents 2.7 (1.0 ) Net (Decrease) Increase in Cash and Cash Equivalents (26.9 ) 3.1 Cash and Cash Equivalents, beginning of period 76.1 62.0 Cash and Cash Equivalents, end of period $ 49.2 $ 65.1 Expand Non-GAAP Measures Earnings Before Interest, Taxes, Depreciation and Amortization ('EBITDA') and Adjusted EBITDA ('AEBITDA') Our unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP. We also present Earnings Before Interest, Taxes, Depreciation and Amortization ('EBITDA') and adjusted EBITDA ('AEBITDA'), which are non-GAAP financial measures, 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 AEBITDA can provide a useful measure for period-to-period comparisons of our primary business operations. We believe that EBITDA and AEBITDA provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. 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. AEBITDA is a non-GAAP financial measure that we calculate as net income (loss), adjusted to exclude: benefit from (provision for) income taxes; interest expense; depreciation and amortization; stock-based compensation expense; foreign currency (gain) loss; amortization of cloud-based software implementation costs; and, in certain periods, other income and expense items. We reconcile this data to our U.S. GAAP data for the same periods presented. Constant Currency We operate globally, and a substantial portion of our net revenue and operations is denominated in foreign currencies, primarily the Euro. We calculate the year over-year impact of foreign currency movements using prior period foreign currency rates applied to current year results. These 'constant currency' change amounts are non-GAAP measures and are not in accordance with, or an alternative to, measures prepared in accordance with U.S. GAAP. In addition, constant currency change measures are not based on any established set of accounting rules or principles. In calculating the Constant Currency (Non-GAAP) % Change, the current year is translated at the average exchange rate for the comparable prior year period, when comparing the current year to the prior year. We believe that our Constant Currency (Non-GAAP) % Change presentation provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. Cautionary Notice Regarding Non-GAAP Measures Non-GAAP measures, such as EBITDA, AEBITDA, and constant currency change, have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under U.S. GAAP. In particular, non-GAAP financial measures should not be viewed as substitutes for, or superior to, net income (loss) prepared in accordance with U.S. 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 and AEBITDA do not reflect all cash capital expenditure requirements for such replacements or for new capital expenditure requirements; EBITDA and AEBITDA do not reflect changes in, or cash requirements for, our working capital needs; EBITDA and 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; AEBITDA does not consider the potentially dilutive impact of stock-based compensation, and in certain periods, other income and expense items, such as restructuring and integration costs; constant currency change measures exclude the foreign currency exchange rate impact on our foreign operations; and other companies, including companies in our industry, may calculate EBITDA, AEBITDA, and constant currency change differently, which reduces their usefulness as comparative measures. (1) Reconciliations of EBITDA and 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 primarily related to the implementation of the global ERP system, which are included in SG&A. (4) Third-party professional services and consulting fees related to post-implementation system remediation. (5) In the second quarter of 2025, Other adjustments includes non-recurring excess above market procurement costs and other insignificant items. In the second quarter of 2024, Other adjustments represents primarily non-recurring costs incurred from the outsourcing of paper conversion services and other insignificant items. (6) The Constant Currency (Non-GAAP) % Change excludes the impact of foreign currency translation effects when comparing to the prior year. In calculating the Constant Currency (Non-GAAP) % Change, the current year results are translated at the average exchange rate for the prior year period, which in this case was 1 Euro to 1.0768 USD. Refer to further discussion in 'Non-GAAP Measures.' Expand Six Months Ended June 30, Constant Currency (Non-GAAP) % Change (6) 2025 2024 $ Change % Change Depreciation and amortization expense – COS 14.1 18.8 (4.7 ) (25.0 ) Depreciation and amortization expense – D&A 17.8 16.7 1.1 6.6 Interest expense 17.0 11.5 5.5 47.8 Income tax (benefit) expense (5.2 ) 0.3 (5.5 ) NM EBITDA (1) 25.3 44.7 (19.4 ) (43.4 ) (44.3 ) Adjustments (2): Foreign currency gain (5.2 ) (1.3 ) (3.9 ) NM Non-cash impairment losses 0.2 0.6 (0.4 ) (66.7 ) M&A, restructuring, severance 6.5 2.4 4.1 170.8 Stock-based compensation expense 4.1 2.8 1.3 46.4 Amortization of cloud-based software implementation costs (3) 1.9 1.8 0.1 5.6 Cloud-based software implementation costs 1.4 1.2 0.2 16.7 SOX remediation costs (4) 0.9 3.2 (2.3 ) (71.9 ) Gain on sale of patents — (5.4 ) 5.4 (100.0 ) Patent litigation settlement — (16.1 ) 16.1 (100.0 ) Unrealized (gain) loss on strategic investments (5.8 ) 3.5 (9.3 ) (265.7 ) Other adjustments (5) 4.5 1.4 3.1 221.4 AEBITDA (1) $ 33.8 $ 38.8 $ (5.0 ) (12.9 ) (13.4 ) (see subsequent footnotes) Expand (1) Reconciliations of EBITDA and AEBITDA for each period presented are to net loss, 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 primarily related to the implementation of the global ERP system, which are included in SG&A. (4) Third-party professional services and consulting fees related to post-implementation system remediation. (5) In the six months ended June 30, 2025, Other adjustments includes non-recurring warehouse and transitory costs incurred related to conversion services, non-recurring excess above market procurement costs, and other insignificant items. In the six months ended June 30, 2024, Other adjustments represents primarily non-recurring costs incurred from the outsourcing of paper conversion services, legal expenses and fees related to the Company's patent litigation which was settled in the second quarter of 2024, and other insignificant items. (6) The Constant Currency (Non-GAAP) % Change excludes the impact of foreign currency translation effects when comparing to the prior year. In calculating the Constant Currency (Non-GAAP) % Change, the current year results are translated at the average exchange rate for the prior year period, which in this case was 1 Euro to 1.0814 USD. Refer to further discussion in 'Non-GAAP Measures.' Expand
Business Wire
31-07-2025
- Business
- Business Wire
Ranpak to Hold Conference Call to Discuss Second Quarter 2025 Results
CONCORD TOWNSHIP, Ohio--(BUSINESS WIRE)--Ranpak Holdings Corp. (NYSE: PACK) announced today that it will release its second quarter results at approximately 7:30 a.m. (ET) on Tuesday, August 5, 2025 and will host a conference call and webcast at 8:30 a.m. (ET) on that day. The conference call and earnings presentation will be webcast live at the following link: 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: 8369975. A telephonic replay of the webcast also will be available starting at 11:30 a.m. (ET) on Tuesday, August 5, 2025 and ending at 11:59 p.m. (ET) on Tuesday, August 12, 2025. To listen to the replay, please dial (800) 770-2030 and use the passcode: 8369975. About Ranpak Founded in 1972, Ranpak's goal was to create the first environmentally responsible system to protect products during shipment. The development and improvement of materials, systems and total solution concepts have earned Ranpak a reputation as an innovative leader in e-commerce and industrial supply chain solutions. Ranpak is headquartered in Concord Township, Ohio and has approximately 850 employees.
Yahoo
17-07-2025
- Business
- Yahoo
Ranpak Names Paul Aram as New COO
Ranpak Holdings Corp. (NYSE:PACK) is among the . Paul Aram has been appointed the Chief Operating Officer of Ranpak Holdings Corp. (NYSE:PACK) upon the approval of the Board of Directors on June 27, 2025. The official start date will be mutually decided. Under the employment contract, Aram is set to receive a salary of €310,000, in addition to the target cash bonus of 40% of his basic salary, and a one-time new hire award of 5,000 performance-based restricted stock units (PRSUs) and 5,000 restricted stock units (RSUs). If he meets the eligibility criteria, he can enjoy company benefit programs just like other senior officials. A factory line of workers working together to assemble protective packaging solutions. This comes at a time when Ranpak Holdings Corp. (NYSE:PACK) continues to work towards achieving 50% growth in automation revenue set for 2025. The expansion particularly comes from North America as robust enterprise accounts and automation demand have set high hopes. Ranpak Holdings Corp. (NYSE:PACK) is an Ohio-based company that, along with its subsidiaries, delivers both product protection and end-of-line automation solutions for e-commerce and industrial supply chains. Founded in 1972, the company is dedicated to providing sustainable paper packaging solutions to safeguard people, the planet, and everything in between. While we acknowledge the potential of PACK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . While we acknowledge the potential of PACK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PACK and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Sign in to access your portfolio
Yahoo
09-03-2025
- Business
- Yahoo
Ranpak Holdings Corp. (NYSE:PACK) Released Earnings Last Week And Analysts Lifted Their Price Target To US$11.17
Shareholders might have noticed that Ranpak Holdings Corp. (NYSE:PACK) filed its yearly result this time last week. The early response was not positive, with shares down 7.3% to US$6.20 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at US$369m, statutory losses exploded to US$0.23 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. See our latest analysis for Ranpak Holdings After the latest results, the three analysts covering Ranpak Holdings are now predicting revenues of US$396.3m in 2025. If met, this would reflect a modest 7.4% improvement in revenue compared to the last 12 months. Losses are forecast to narrow 4.3% to US$0.21 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$398.5m and losses of US$0.18 per share in 2025. While this year's revenue estimates held steady, there was also a notable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock. Despite expectations of heavier losses next year,the analysts have lifted their price target 9.8% to US$11.17, perhaps implying these losses are not expected to be recurring over the long term. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Ranpak Holdings at US$15.00 per share, while the most bearish prices it at US$7.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Ranpak Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 7.4% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.1% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Ranpak Holdings to grow faster than the wider industry. The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Ranpak Holdings. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving. Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Ranpak Holdings analysts - going out to 2026, and you can see them free on our platform here. That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Ranpak Holdings , and understanding them should be part of your investment process. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
06-03-2025
- Business
- Yahoo
Ranpak Holdings Corp. Reports Fourth Quarter and Full Year 2024 Financial Results
Net revenue for the fourth quarter increased 16% year over year to $105.0 million and increased 17% year over year on a constant currency basis Net loss for the fourth quarter of $8.0 million compared to net loss of $9.3 million for the prior year period Adjusted EBITDA ("AEBITDA") for the fourth quarter of $25.3 million up 8%, or $1.8 million, year over year, up 8% on a constant currency basis Packaging System placement up 1% year over year to approximately 142.7 thousand machines at December 31, 2024 CONCORD TOWNSHIP, Ohio, March 06, 2025--(BUSINESS WIRE)--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 fourth quarter 2024 financial results. Omar Asali, Chairman and Chief Executive Officer, commented, "We are pleased to finish 2024 on a really positive note with the fourth quarter delivering double digit volume and top-line growth. Volume growth of 12% and 16% net revenue growth across the organization was driven by North American e-commerce activity which experienced a strong holiday season overall as well as the impact of plastic to paper shift among strategic accounts. This translated into 8% growth in AEBITDA on a constant currency basis in the quarter due to the mix impact of more e-commerce business relative to industrial products. Our strong fourth quarter performance propelled us to achieve 10% volume and net revenue growth for the year and 14% growth in AEBITDA on a constant currency basis. The strategic account activity foundation we had been building and discussing for the past couple of years drove strong results in 2024 in a challenging environment and provides Ranpak with an excellent springboard going into 2025. We were pleased to announce in January 2025 that we signed a warrant transaction with Amazon. We believe this agreement provides economic alignment for continued growth which we believe aligns us well to continue to grow organically with our largest customer. In our opinion, this agreement is a testament to the innovation and execution the Ranpak team has delivered and value we can bring to the world's most discerning organizations. Ranpak is a differentiated value-added partner in protective packaging and Automation and the world is taking notice." Constant Currency We operate globally, and a substantial portion of our net revenue and operations is denominated in foreign currencies, primarily the Euro. We are changing our presentation of supplemental non-GAAP constant currency metrics, beginning with our 2024 results, to no longer utilize an exchange rate of 1 Euro to 1.15 U.S. Dollar ("USD") when calculating and discussing these metrics. In calculating the Constant Currency (Non-GAAP) % Change, the fiscal year and fourth quarter 2024 results are translated at an exchange rate of 1 Euro to 1.0818 USD and 1 Euro to 1.0766 USD, respectively, which represents the average exchange rates for the comparable periods in 2023, when comparing current results to the prior year. We believe that our Constant Currency (Non-GAAP) % Change presentation provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. Refer to the section below entitled "Non-GAAP Measures" and the related reconciliations and comparisons of U.S. GAAP statement of operations data to non-GAAP measures below. For ease of reference as we transition to this new presentation, below is a presentation of (i) net revenue and net income as presented in accordance with US GAAP, (ii) net revenue and AEBITDA, in each case presented on an adjusted basis, with the fiscal year and fourth quarter 2024 translated at an exchange rate of 1 Euro to 1.0818 USD and 1 Euro to 1.0766 USD, respectively, which represents the average exchange rates for the comparable periods in 2023 and (iii) net revenue and AEBITDA, in each case presented on an adjusted basis, with the fiscal year and fourth quarter 2024 translated at an exchange rate of 1 Euro to $1.15 USD. Amounts in the table are presented in millions (USD). U.S. GAAP FY 2024 Q4 2024 Net revenue $ 369 $ 105 Net loss $ (19 ) $ (8 ) Current Presentation - Constant Currency (1) Non-GAAP Constant Currency FY 2024 Guidance FY 2024 Q4 2024 Low High Net revenue $ 369 $ 105 $ 357 $ 376 Adjusted EBITDA (Constant Currency) $ 84 $ 25 $ 77 $ 85 Please refer to "Non-GAAP Measures" 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. ____________________ (1) Under the current presentation of non-GAAP constant currency results, the current year results have been translated at the comparable prior year period's average exchange rate of 1 Euro to 1.0818 USD for fiscal year 2024 and 1.0766 USD for the fourth quarter of 2024, respectively. FY 2024 Guidance has been recalculated in a manner consistent with the current year presentation using the comparable prior period's average exchange rate of 1.0818 USD. Prior Presentation - Constant Currency (1) Non-GAAP Constant Currency FY 2024 Guidance FY 2024 Q4 2024 Low High Net revenue $ 382 $ 109 $ 370 $ 390 Adjusted EBITDA (Constant Currency) $ 87 $ 26 $ 80 $ 89 Please refer to "Non-GAAP Measures" 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. ____________________ (1) Under the prior presentation of non-GAAP constant currency results, a fixed exchange rate of 1 Euro to 1.15 USD was used. Outlook for 2025 On a constant currency basis, we are forecasting net revenue growth in the area of 5% – 11% and AEBITDA growth of 5% – 16% calculated by translating forecasted 2025 metrics at an exchange rate of 1 Euro to 1.0822 USD, which represents the average exchange rate for 2024). This results in a range of $387 – $409 million in net revenue and $88 – $97 million for AEBITDA. This guidance reflects the expectation of a reported non-cash net revenue and AEBITDA reduction of between $3 million and $5 million in 2025 related to the recognition of Warrant expense against Amazon revenue. Our outlook reflects our expectation of increased contributions from strategic accounts in North America and a somewhat improving operating environment in the region as well as a continued somewhat challenging operating environment in Europe/Asia. We expect to grow volumes in the mid to high single digits after a robust volume growth year in 2024 and expect Automation to grow approximately 50%. Our focus for 2025 is to continue volume growth in PPS, scale Automation, and focus on cash generation to de-lever and get on the path to a leverage ratio of below 3.0x net debt to Adjusted EBITDA. Fourth Quarter 2024 Highlights Net revenue increased 16% and increased 17% on a constant currency basis Net loss of $8.0 million compared to net loss of $9.3 million for the prior year period AEBITDA1 of $25.3 million for the three months ended December 31, 2024 is up 8% and up 8% on a constant currency basis Packaging systems placement increased 1% year over year, to approximately 142.7 thousand machines as of December 31, 2024 Net revenue for the fourth quarter of 2024 was $105.0 million compared to $90.4 million in the fourth quarter of 2023, an increase of $14.6 million or 16% 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 $5.0 million, or 14%, to $30.9 million from $35.9 million; void-fill increased $13.9 million, or 36%, to $52.3 million from $38.4 million; wrapping increased $1.4 million, or 14%, to $11.6 million from $10.2 million; and other net revenue increased $4.3 million, or 73%, to $10.2 million from $5.9 million for the fourth quarter of 2024 compared to the fourth 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 12% and a 5% increase in sales of automated box sizing equipment, with an insignificant impact from price/mix. On a constant currency basis, net revenue increased 17% in the fourth quarter 2024 compared to the fourth quarter of 2023. Full Year 2024 Highlights Net revenue increased 10% and increased 10% on a constant currency basis Net loss of $18.7 million compared to net loss of $27.1 million for the prior year period AEBITDA of $83.8 million for the year ended December 31, 2024 is up 14% and up 14% on a constant currency basis Balance Sheet and Liquidity Ranpak completed the fourth quarter of 2024 with a strong liquidity position, including a cash balance of $76.1 million and no borrowings on its $50.0 million Revolving Credit Facility, which matures in December 2029. As of December 31, 2024, the Company had $410.0 million outstanding under its USD-denominated first lien term facility, which matures in December 2031. The following table presents Ranpak's installed base of protective packaging systems by product line as of December 31, 2024 and 2023: December 31, 2024 December 31, 2023 Change % Change PPS systems (in thousands) Cushioning 34.4 34.8 (0.4 ) (1.1 ) Void-Fill 85.7 83.7 2.0 2.4 Wrapping 22.6 22.7 (0.1 ) (0.4 ) Total 142.7 141.2 1.5 1.1 Conference Call Information The Company will host a conference call and webcast at 8:30 a.m. (ET) on Thursday, March 6, 2025. The conference call and earnings presentation will be webcast live at the following link: 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, March 6, 2025 and ending at 11:59 p.m. (ET) on Thursday, March 13, 2025. To listen to the replay, please dial (800) 770-2030 and use the passcode: 5813434. ____________________________________ 1 Please refer to "Non-GAAP Measures" 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. 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 potential tariffs on the import of goods; (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 December 31, 2024 2023 Net product revenue $ 91.6 $ 77.6 Machine lease revenue 13.4 12.8 Net revenue 105.0 90.4 Cost of product sales 54.8 47.3 Cost of leased machines 8.8 9.0 Gross profit 41.4 34.1 Selling, general and administrative expenses 27.9 27.4 Depreciation and amortization expense 10.2 9.6 Other operating expense, net 1.9 1.7 Loss from operations 1.4 (4.6 ) Interest expense 7.8 5.9 Foreign currency gain (0.5 ) (0.5 ) Loss on extinguishment of debt 4.8 — Other non-operating expense, net 0.1 0.6 Loss before income tax benefit (10.8 ) (10.6 ) Income tax benefit (2.8 ) (1.3 ) Net loss $ (8.0 ) $ (9.3 ) Basic and diluted loss per share $ (0.10 ) $ (0.11 ) Weighted average number of shares outstanding – Class A and C – basic and diluted 83,251,073 82,601,968 Other comprehensive income (loss), before tax Foreign currency translation adjustments (5.6 ) $ 3.0 Interest rate swap adjustments — (2.6 ) Total other comprehensive income (loss), before tax (5.6 ) 0.4 Provision (benefit) for income taxes related to other comprehensive income (loss) 1.5 (1.7 ) Total other comprehensive income (loss), net of tax (7.1 ) 2.1 Comprehensive loss, net of tax $ (15.1 ) $ (7.2 ) 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, 2024 2023 2022 Net product revenue $ 315.5 $ 284.8 $ 276.4 Machine lease revenue 53.4 51.5 50.1 Net revenue 368.9 336.3 326.5 Cost of product sales 202.9 181.3 192.6 Cost of leased machines 26.2 31.7 34.3 Gross profit 139.8 123.3 99.6 Selling, general and administrative expenses 111.9 91.8 105.5 Depreciation and amortization expense 35.1 33.8 32.1 Other operating expense, net 5.6 5.2 4.5 Loss from operations (12.8 ) (7.5 ) (42.5 ) Interest expense 28.6 24.3 20.7 Foreign currency gain (1.6 ) (0.3 ) (2.2 ) Loss on extinguishment of debt 4.8 — — Other non-operating income, net (20.9 ) (0.2 ) (4.3 ) Loss before income tax benefit (23.7 ) (31.3 ) (56.7 ) Income tax benefit (5.0 ) (4.2 ) (15.3 ) Net loss $ (18.7 ) $ (27.1 ) $ (41.4 ) Basic and diluted loss per share $ (0.23 ) $ (0.33 ) $ (0.51 ) Weighted average number of shares outstanding – Class A and C – basic and diluted 83,059,187 82,374,605 81,877,334 Other comprehensive income (loss), before tax Foreign currency translation adjustments $ (4.2 ) $ 2.0 $ (7.2 ) Interest rate swap adjustments (3.4 ) (7.9 ) 14.1 Total other comprehensive income (loss), before tax (7.6 ) (5.9 ) 6.9 Provision (benefit) for income taxes related to other comprehensive income (loss) 0.7 (2.8 ) 4.3 Total other comprehensive income (loss), net of tax (8.3 ) (3.1 ) 2.6 Comprehensive loss, net of tax $ (27.0 ) $ (30.2 ) $ (38.8 ) Ranpak Holdings Corp. Unaudited Condensed Consolidated Balance Sheets (in millions, except share data) December 31,2024 December 31,2023 Assets Current assets Cash and cash equivalents $ 76.1 $ 62.0 Accounts receivable, net 43.9 31.6 Inventories 21.7 17.3 Income tax receivable 1.8 0.9 Prepaid expenses and other current assets 7.7 13.1 Total current assets 151.2 124.9 Property, plant, and equipment, net 137.6 142.1 Operating lease right-of-use assets, net 20.9 23.7 Goodwill 443.7 450.1 Intangible assets, net 312.2 345.4 Deferred tax assets 0.1 0.1 Other assets 38.5 36.4 Total assets $ 1,104.2 $ 1,122.7 Liabilities and Shareholders' Equity Current liabilities Accounts payable $ 26.9 $ 17.6 Accrued liabilities and other 28.1 22.1 Current portion of long-term debt 5.6 2.5 Operating lease liabilities, current 4.0 3.8 Deferred revenue 3.4 2.0 Total current liabilities 68.0 48.0 Long-term debt 400.8 397.8 Deferred tax liabilities 59.6 71.6 Derivative instruments 1.3 6.3 Operating lease liabilities, non-current 20.8 24.7 Other liabilities 2.8 2.3 Total liabilities 553.3 550.7 Commitments and contingencies Shareholders' equity Class A common stock, $0.0001 par, 200,000,000 shares authorized at December 31, 2024 and 2023; shares issued and outstanding: 83,267,367 and 79,684,170 at December 31, 2024 and 2023, respectively — — Convertible Class C common stock, $0.0001 par, 200,000,000 shares authorized at December 31, 2024 and 2023; shares issued and outstanding: 0 and 2,921,099 at December 31, 2024 and 2023 — — Additional paid-in capital 699.6 693.7 Accumulated deficit (142.5 ) (123.8 ) Accumulated other comprehensive income (loss) (6.2 ) 2.1 Total shareholders' equity 550.9 572.0 Total liabilities and shareholders' equity $ 1,104.2 $ 1,122.7 Ranpak Holdings Corp. Unaudited Condensed Consolidated Statements of Cash Flows (in millions) Year Ended December 31, 2024 2023 2022 Cash Flows from Operating Activities Net loss $ (18.7 ) $ (27.1 ) $ (41.4 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 65.3 69.6 69.0 Amortization of deferred financing costs 2.8 2.2 1.5 Loss on disposal of property, plant, and equipment 1.2 1.4 1.1 Loss on extinguishment of debt 4.8 — — Gain on sale of patents (5.4 ) — ... — Deferred income taxes (9.5 ) (5.9 ) (19.7 ) Amortization of initial value of interest rate swap (1.2 ) (2.4 ) (0.8 ) Foreign currency gain (1.6 ) (0.3 ) (2.2 ) Stock-based compensation expense 6.3 (10.2 ) 18.3 Amortization of cloud-based software implementation costs 3.6 3.0 2.8 Unrealized (gain) loss on strategic investments 0.4 — (3.9 ) Changes in operating assets and liabilities: (Increase) decrease in accounts receivable (11.6 ) 6.9 9.1 (Increase) decrease in inventories (4.8 ) 5.3 7.6 (Increase) decrease in income tax receivable (0.9 ) 0.4 0.6 (Increase) decrease in prepaid expenses and other current assets 0.6 (2.3 ) (1.6 ) Increase (decrease) in accounts payable 9.1 (0.7 ) (12.4 ) Increase (decrease) in accrued liabilities and other 7.4 6.6 (14.4 ) Change in other assets and liabilities (6.4 ) 6.1 (12.5 ) Net cash provided by operating activities 41.4 52.6 1.1 Cash Flows from Investing Activities Purchases of converter equipment (28.3 ) (31.4 ) (31.6 ) Purchases of other property, plant, and equipment (4.8 ) (23.9 ) (13.2 ) Proceeds from sale of patents 5.4 — — Proceeds from sale of property, plant, and equipment — 2.9 — Cash paid for strategic investments (4.8 ) — (2.1 ) Cash inflow from settlement of net investment hedges — — 10.0 Patent and trademark expenditures — — (1.0 ) Net cash used in investing activities (32.5 ) (52.4 ) (37.9 ) Cash Flows from Financing Activities Proceeds from debt facilities 410.0 — — Principal payments on term loans (390.9 ) (1.9 ) (1.1 ) Payment of exit costs related to debt facilities (4.3 ) — — Financing costs of debt facilities (10.4 ) (1.0 ) — Proceeds from equipment financing 0.7 3.2 — Payments on equipment financing (1.5 ) (0.5 ) — Payments on finance lease liabilities (1.4 ) (1.1 ) (0.9 ) Tax payments for withholdings on stock-based awards distributed (0.4 ) (0.5 ) (2.5 ) Net cash provided by (used in) financing activities 1.8 (1.8 ) (4.5 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents 3.4 0.8 0.2 Net Increase (Decrease) in Cash and Cash Equivalents 14.1 (0.8 ) (41.1 ) Cash and Cash Equivalents, beginning of period 62.0 62.8 103.9 Cash and Cash Equivalents, end of period $ 76.1 $ 62.0 $ 62.8 Non-GAAP Measures Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA ("AEBITDA") Our consolidated financial statements are prepared in accordance with U.S. GAAP. We also present Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and adjusted EBITDA ("AEBITDA"), which are non-GAAP financial measures, 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 AEBITDA can provide a useful measure for period-to-period comparisons of our primary business operations. We believe that EBITDA and AEBITDA provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. EBITDA is a non-GAAP financial measure that we calculate as net loss, adjusted to exclude: benefit from (provision for) income taxes; interest expense; and depreciation and amortization. AEBITDA is a non-GAAP financial measure that we calculate as net loss, adjusted to exclude: benefit from (provision for) income taxes; interest expense; depreciation and amortization; stock-based compensation expense; foreign currency (gain) loss; amortization of cloud-based software implementation costs; and, in certain periods, other income and expense items. We reconcile this data to our U.S. GAAP data based on our historical financial statements included elsewhere herein for the same period for the three months and years ended December 31, 2024 and 2023. Constant Currency We operate globally, and a substantial portion of our net revenue and operations is denominated in foreign currencies, primarily the Euro. We calculate the year over-year impact of foreign currency movements using prior period foreign currency rates applied to current year results. These "constant currency" change amounts are non-GAAP measures and are not in accordance with, or an alternative to, measures prepared in accordance with U.S. GAAP. In addition, constant currency change measures are not based on any established set of accounting rules or principles. We are changing our presentation of supplemental non-GAAP constant currency metrics, beginning with our 2024 results, to no longer utilize an exchange rate of 1 Euro to 1.15 USD when calculating and discussing these metrics. In calculating the Constant Currency (Non-GAAP) % Change, the current period results are translated at the average exchange rate for the comparable period, when comparing current results to the prior year. We believe that our Constant Currency (Non-GAAP) % Change presentation provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. Cautionary Notice Regarding Non-GAAP Measures Non-GAAP measures, such as EBITDA, AEBITDA, and constant currency change, have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under U.S. GAAP. In particular, non-GAAP financial measures should not be viewed as substitutes for, or superior to, net loss prepared in accordance with U.S. 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 and AEBITDA do not reflect all cash capital expenditure requirements for such replacements or for new capital expenditure requirements; EBITDA and AEBITDA do not reflect changes in, or cash requirements for, our working capital needs; EBITDA and 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; AEBITDA does not consider the potentially dilutive impact of stock-based compensation, and in certain periods, other income and expense items, such as restructuring and integration costs; constant currency change measures exclude the foreign currency exchange rate impact on our foreign operations; and other companies, including companies in our industry, may calculate EBITDA, AEBITDA, and constant currency change differently, which reduces their usefulness as comparative measures. This press release also includes forecasts for certain non-GAAP metrics. Our forecast of 2025 net revenue on a constant currency basis is calculated by translating forecasted 2025 net revenue at an exchange rate of 1 Euro to 1.0822 USD, which represents the average exchange rate for 2024. A reconciliation of our forecast for AEBITDA for 2025 to a forecast for 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, 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 Operations Data to Non-GAAP EBITDA and AEBITDA For the Fourth Quarter of 2024 and 2023 (in millions) Please refer to our discussion and definitions of Non-GAAP financial measures Dollar amounts are presented in millions. "NM" represents "not meaningful." Non-GAAP Measures ConstantCurrency(Non-GAAP) %Change (6) Three Months Ended December 31, 2024 2023 $ Change % Change Net loss $ (8.0 ) $ (9.3 ) $ 1.3 (14.0 ) (14.0 ) Depreciation and amortization expense – COS 5.7 10.6 (4.9 ) (46.2 ) Depreciation and amortization expense – D&A 10.2 9.6 0.6 6.3 Interest expense 7.8 5.9 1.9 32.2 Income tax benefit (2.8 ) (1.3 ) (1.5 ) 115.4 EBITDA(1) 12.9 15.5 (2.6 ) (16.8 ) (18.1 ) Adjustments(2): Foreign currency gain (0.5 ) (0.5 ) — — Non-cash impairment losses 0.3 0.6 (0.3 ) (50.0 ) M&A, restructuring, severance 2.8 2.8 — — Stock-based compensation expense 1.7 1.6 0.1 6.3 Amortization of cloud-based software implementation costs(3) 1.0 0.8 0.2 25.0 Cloud-based software implementation costs (4) 0.3 1.2 (0.9 ) (75.0 ) SOX remediation costs 1.2 0.8 0.4 50.0 Loss on extinguishment of debt 4.8 — 4.8 NM Other adjustments (5) 0.8 0.7 0.1 14.3 AEBITDA(1) $ 25.3 $ 23.5 $ 1.8 7.7 7.7 ____________________________________________ (1) Reconciliations of EBITDA and AEBITDA for each period presented are to net loss, the nearest U.S. 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 primarily related to the implementation of the global ERP system, which are included in SG&A. (4) Third-party professional services and consulting fees related to post-implementation system remediation. (5) In the fourth quarter of 2024 and 2023, Other adjustments are comprised of individually immaterial items deemed by management to be unusual, infrequent, or non-recurring. (6) The Constant Currency (Non-GAAP) % Change excludes the impact of foreign currency translation effects when comparing current results to the prior year. In calculating the Constant Currency (Non-GAAP) % Change, the current year results are translated at the average exchange rate for the prior year period, which in this case was 1 Euro to 1.0766 USD. Refer to further discussion in "Non-GAAP Measures." Ranpak Holdings Corp. Non-GAAP Financial Data Reconciliation and Comparison of GAAP Statement of Operations Data to Non-GAAP EBITDA and AEBITDA For the Year Ended December 31, 2024 and 2023 (in millions) Please refer to our discussion and definitions of Non-GAAP financial measures Dollar amounts are presented in millions. "NM" represents "not meaningful." Non-GAAP Measures ConstantCurrency(Non-GAAP) %Change (6) Year Ended December 31, 2024 2023 $ Change % Change Net loss $ (18.7 ) $ (27.1 ) $ 8.4 (31.0 ) (30.6 ) Depreciation and amortization expense – COS 30.2 35.8 (5.6 ) (15.6 ) Depreciation and amortization expense – D&A 35.1 33.8 1.3 3.8 Interest expense 28.6 24.3 4.3 17.7 Income tax benefit (5.0 ) (4.2 ) (0.8 ) 19.0 EBITDA(1) 70.2 62.6 7.6 12.1 12.0 Adjustments(2): Foreign currency gain (1.6 ) (0.3 ) (1.3 ) 433.3 Non-cash impairment losses 1.2 1.5 (0.3 ) (20.0 ) M&A, restructuring, severance 8.3 5.8 2.5 43.1 Stock-based compensation expense 6.3 (10.2 ) 16.5 (161.8 ) Amortization of cloud-based software implementation costs(3) 3.6 3.0 0.6 20.0 Cloud-based software implementation costs(4) 2.3 4.3 (2.0 ) (46.5 ) SOX remediation costs 5.4 4.2 1.2 28.6 Loss on extinguishment of debt 4.8 — 4.8 NM 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(5) 4.4 2.5 1.9 76.0 AEBITDA (1) $ 83.8 $ 73.4 $ 10.4 14.2 14.3 ___________________________________________ (1) Reconciliations of EBITDA and AEBITDA are to net loss, 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 primarily related to the implementation of the global ERP system, which are included in SG&A. (4) Third-party professional services and consulting fees related to post-implementation system remediation. (5) In 2024, Other adjustments includes $1.8 million related to non-recurring costs incurred from the outsourcing of paper conversion services. Other adjustments also includes $0.8 million for legal expenses and fees primarily related to the Company's patent litigation, which was settled in the second quarter of 2024. The remaining $1.8 million is comprised of individually insignificant items. In 2023, Other adjustments are largely comprised of $1.6 million in legal expenses and fees, primarily related to the Company's patent litigation, which was settled in the second quarter of 2024. The remaining $0.9 million of Other adjustments is comprised of individually insignificant items. (6) The Constant Currency (Non-GAAP) % Change excludes the impact of foreign currency translation effects when comparing current results to the prior year. In calculating the Constant Currency (Non-GAAP) % Change, the current year results are translated at the average exchange rate for the prior year period, which in this case was 1 Euro to 1.0818 USD. Refer to further discussion in "Non-GAAP Measures." View source version on Contacts Megan
