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Ranpak Holdings Corp. Reports Second Quarter 2021 Financial Results

07/29/2021
  • Packaging System placement up 12.9% year over year to approximately 123,600 machines at June 30, 2021
  • Second quarter net revenue increased 36.2% year over year to $90.0 million and 29.1% year over year on a constant currency basis to $87.5 million
  • Second quarter net loss of $5.2 million compared to net loss of $8.5 million
  • Constant currency Adjusted EBITDA (“AEBITDA”) of $25.6 million (which represents approximately a 29.3% margin) is up 34.7%, or $6.6 million, year over year

CONCORD TOWNSHIP, Ohio--(BUSINESS WIRE)-- 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 second quarter 2021 financial results.

Omar Asali, Chairman and Chief Executive Officer, commented, “Ranpak delivered an outstanding second quarter, with very strong net revenue and profitability growth. Net revenue for the quarter increased 29.1% year over year on a constant currency basis to $87.5 million, driven by broad-based strength across the globe with both North America and Europe/APAC meaningfully contributing to the top-line outperformance. We experienced robust demand for all protective packaging products fueled by continued elevated e-Commerce activity, improving industrial activity, and a growing focus on sustainability contributing to new business wins globally. This strong top-line growth was surpassed by our growth in profitability as Adjusted EBITDA increased 34.7% on a constant currency basis to $25.6 million. Activity levels in a variety of end markets are driving growth, with strong momentum in the business as organizations worldwide seek to make their supply chains more efficient and more environmentally friendly.”

“On a year-to-date basis, net revenue is up 30.1% in constant currency. Given the increased demand for our products and underlying strength in the end markets, we expect to continue to deliver strong growth in 2021 surpassing our expectations from the start of the year and expect to finish with a record year at Ranpak, despite having second half comparisons that are more challenging given our robust 2020 performance. Our team is adeptly maneuvering through this dynamic market and working extremely hard to serve our customers. I am extremely proud of the phenomenal effort.”

“As we look further ahead, Ranpak is uniquely positioned to benefit from several key trends that have been accelerated by COVID-19: e-Commerce taking share from brick and mortar, increased Automation adoption, and an increased awareness by the consumer on the amount of plastic and foam in supply chains. We are seizing this opportunity by investing in innovation, capacity, and resources to help the team execute to achieve our substantial growth ambitions.”

Second Quarter 2021 Highlights

  • Packaging systems placement increased 12.9% year over year, to approximately 123,600 machines as of June 30, 2021
  • Net revenue increased 36.2% and 29.1% adjusting for constant currency
  • Net loss of $5.2 million compared to net loss of $8.5 million
  • AEBITDA1 of $25.6 million for the three months ended June 30, 2021 is up 34.7%

Net revenue for the three months ended June 30, 2021 was $90.0 million compared to net revenue of $66.1 million in the three months ended June 30, 2020, an increase of $23.9 million or 36.2% year over year. Net revenue was positively impacted by increases in cushioning, void-fill, wrapping, and other sales.

Cushioning increased $12.5 million, or 48.4%, to $38.3 million from $25.8 million; void-fill increased $6.7 million, or 23.3%, to $35.5 million from $28.8 million; wrapping increased $4.2 million, or 53.2%, to $12.1 million from $7.9 million; and other sales increased $0.5 million, or 13.9%, to $4.1 million from $3.6 million, for the three months ended June 30, 2021 compared to the three months ended June 30, 2020. Other net revenue includes automated box sizing equipment and non-paper revenue from packaging systems installed in the field. Constant currency net revenue was $87.5 million for the three months ended June 30, 2021, a $19.7 million, or 29.1%, increase from constant currency net revenue of $67.8 million for the three months ended June 30, 2020. The increase in net revenue was a result of an increase in the volume of our paper consumable products of approximately 32.0 percentage points (“pp”), partially offset by a 3.0 pp decrease in the price of our paper consumable products.

Net revenue in North America for the three months ended June 30, 2021 totaled $35.7 million. Net revenue in North America was $28.2 million in the three months ended June 30, 2020. Net revenue in North America increased $7.5 million, or 26.6% attributable to an increase in cushioning, void-fill, wrapping, and other sales.

Net revenue in Europe/Asia for the three months ended June 30, 2021 totaled $54.3 million. Net revenue in Europe/Asia was $37.9 million in the three months ended June 30, 2020. Net revenue in Europe/Asia increased $16.4 million or 43.3% driven primarily by increases in cushioning, void-fill and wrapping product categories, partially offset by a decline in automation revenue. Constant currency net revenue in Europe/Asia was $51.8 million for the three months ended June 30, 2021, a $12.2 million, or 30.8%, increase from constant currency net revenue of $39.6 million for the three months ended June 30, 2020.

Net loss for the three months ended June 30, 2021 decreased $3.3 million to $5.2 million from a net loss of $8.5 million in the three months ended June 30, 2020. Constant currency net loss was $5.1 million in the three months ended June 30, 2021 compared to constant currency net loss of $8.6 million for the three months ended June 30, 2020.

Year-to-Date 2021 Highlights

  • Net revenue increased 37.2% and 30.1% adjusting for constant currency
  • Net income of $1.1 million compared to net loss of $12.1 million
  • AEBITDA of $53.6 million for the six months ended June 30, 2021 is up 44.5%

Balance Sheet and Liquidity

Ranpak completed the second quarter of 2021 with a strong liquidity position, including a cash balance of $125.3 million and no borrowings on its $45 million available Revolving Credit Facility.

As of June 30, 2021, the Company had First Lien Term Loan facilities outstanding consisting of $250.0 million USD-denominated term loan and €137.6 million euro-denominated first lien resulting in a Bank AEBITDA leverage ratio of 2.4x. We sold approximately 5.3 million shares of Class A common stock in a public offering in May 2021 for net proceeds of $103.4 million. We prepaid $20.9 million of principal on the USD-denominated term loan in June 2021 and placed the remaining cash proceeds on the balance sheet as dry powder for future investments.

The following table presents Ranpak's installed base of protective packaging systems by product line as of June 30, 2021 and 2020:

 

 

June 30, 2021

 

 

June 30, 2020

 

 

Change

 

 

% Change

 

Protective Packaging Systems

 

(in thousands)

 

 

 

 

Cushioning machines

 

 

34.3

 

 

 

33.1

 

 

 

1.2

 

 

 

3.6

 

Void-fill machines

 

 

71.8

 

 

 

62.9

 

 

 

8.9

 

 

 

14.1

 

Wrapping machines

 

 

17.5

 

 

 

13.5

 

 

 

4.0

 

 

 

29.6

 

Total

 

 

123.6

 

 

 

109.5

 

 

 

14.1

 

 

 

12.9

 

Conference Call Information

The Company will host a conference call and webcast at 8:30 a.m. (ET) on Thursday, July 29, 2021. The conference call and earnings presentation will be webcast live at the following link: https://event.on24.com/wcc/r/3196565/40A4E8959E92AA21D51A0D9E70EEC29F. Investors who cannot access the webcast may listen to the conference call live via telephone by dialing (833) 579-0916 (domestic) or (778) 560-2805 (international) and use the Conference ID: 2991899.

A telephonic replay of the webcast also will be available starting at 11:30 a.m. (ET) on Thursday, July 29, 2021 and ending at 11:59 p.m. (ET) on Thursday, August 5, 2021. To listen to the replay, please dial (800) 585-8367 (domestic) or (416) 621-4642 (international) and use the Conference ID: 2991899.

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 and associated response; (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; and (xiii) 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.

_______________

1AEBITDA is a non-GAAP financial measure. Please refer to “Presentation of Combined and Pro Forma Measures and Reconciliation of U.S. GAAP to Non-GAAP Measures” in this press release for an explanation and reconciliations of this non-GAAP financial measure

 

Ranpak Holdings Corp.

Unaudited Condensed Consolidated Statements of Operations

and Comprehensive Income (Loss)

(in millions, except share and per share data)

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Paper revenue

 

$

73.5

 

 

$

52.9

 

 

$

148.3

 

 

$

106.3

 

Machine lease revenue

 

 

12.4

 

 

 

9.4

 

 

 

23.2

 

 

 

17.9

 

Other revenue

 

 

4.1

 

 

 

3.8

 

 

 

6.2

 

 

 

5.3

 

Net revenue

 

 

90.0

 

 

 

66.1

 

 

 

177.7

 

 

 

129.5

 

Cost of goods sold

 

 

54.3

 

 

 

39.1

 

 

 

105.7

 

 

 

75.7

 

Gross profit

 

 

35.7

 

 

 

27.0

 

 

 

72.0

 

 

 

53.8

 

Selling, general and administrative expenses

 

 

24.6

 

 

 

20.7

 

 

 

43.7

 

 

 

40.3

 

Depreciation and amortization expense

 

 

8.7

 

 

 

7.7

 

 

 

17.4

 

 

 

15.2

 

Other operating expense, net

 

 

1.3

 

 

 

0.7

 

 

 

2.1

 

 

 

1.0

 

Income (loss) from operations

 

 

1.1

 

 

 

(2.1

)

 

 

8.8

 

 

 

(2.7

)

Interest expense

 

 

6.0

 

 

 

5.5

 

 

 

11.6

 

 

 

11.7

 

Foreign currency (gain) loss

 

 

1.2

 

 

 

1.4

 

 

 

(2.4

)

 

 

(0.1

)

Loss before income tax benefit

 

 

(6.1

)

 

 

(9.0

)

 

 

(0.4

)

 

 

(14.3

)

Income tax benefit

 

 

(0.9

)

 

 

(0.5

)

 

 

(1.5

)

 

 

(2.2

)

Net income (loss)

 

$

(5.2

)

 

$

(8.5

)

 

$

1.1

 

 

$

(12.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Two-class method

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.07

)

 

$

(0.12

)

 

$

0.01

 

 

$

(0.17

)

Diluted

 

$

(0.07

)

 

$

(0.12

)

 

$

0.01

 

 

$

(0.17

)

Class A – earnings (loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.07

)

 

$

(0.12

)

 

$

0.01

 

 

$

(0.17

)

Diluted

 

$

(0.07

)

 

$

(0.12

)

 

$

0.01

 

 

$

(0.17

)

Class C – earnings (loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.07

)

 

$

(0.12

)

 

$

0.02

 

 

$

(0.17

)

Diluted

 

$

(0.07

)

 

$

(0.12

)

 

$

0.02

 

 

$

(0.17

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding - Class A and C

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

77,653,610

 

 

 

70,947,868

 

 

 

75,617,785

 

 

 

70,898,813

 

Diluted

 

 

77,653,610

 

 

 

70,947,868

 

 

 

77,028,319

 

 

 

70,898,813

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), before tax

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

$

2.2

 

 

$

3.5

 

 

$

(6.2

)

 

$

(0.5

)

Interest rate swap adjustments

 

 

0.6

 

 

 

(1.6

)

 

 

3.2

 

 

 

(11.7

)

Total other comprehensive income (loss), before tax

 

 

2.8

 

 

 

1.9

 

 

 

(3.0

)

 

 

(12.2

)

Provision (benefit) for income taxes related to other comprehensive income (loss)

 

 

0.2

 

 

 

0.1

 

 

 

0.8

 

 

 

(2.2

)

Total other comprehensive income (loss), net of tax

 

 

2.6

 

 

 

1.8

 

 

 

(3.8

)

 

 

(10.0

)

Comprehensive loss, net of tax

 

$

(2.6

)

 

$

(6.7

)

 

$

(2.7

)

 

$

(22.1

)

 

Ranpak Holdings Corp.

Unaudited Condensed Consolidated Balance Sheets

(in millions, except share data)

 

 

June 30, 2021

 

 

December 31, 2020

 

 

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

125.3

 

 

$

48.5

 

Accounts receivable, net

 

 

40.8

 

 

 

39.1

 

Inventories, net

 

 

25.6

 

 

 

16.1

 

Income tax receivable

 

 

6.6

 

 

 

0.1

 

Prepaid expenses and other current assets

 

 

3.4

 

 

 

3.4

 

Total current assets

 

 

201.7

 

 

 

107.2

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

124.8

 

 

 

124.4

 

Operating lease right-of-use assets, net

 

 

7.6

 

 

 

-

 

Goodwill

 

 

454.9

 

 

 

458.4

 

Intangible assets, net

 

 

423.3

 

 

 

440.6

 

Other assets

 

 

9.9

 

 

 

2.9

 

Total assets

 

$

1,222.2

 

 

$

1,133.5

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

33.2

 

 

$

24.9

 

Accrued liabilities and other

 

 

26.8

 

 

 

30.7

 

Current portion of long-term debt

 

 

1.1

 

 

 

0.5

 

Operating lease liabilities, current

 

 

2.5

 

 

 

-

 

Deferred machine fee revenue

 

 

2.1

 

 

 

1.4

 

Total current liabilities

 

 

65.7

 

 

 

57.5

 

 

 

 

 

 

 

 

Long-term debt

 

 

408.1

 

 

 

432.7

 

Deferred tax liabilities

 

 

107.1

 

 

 

109.6

 

Derivative instruments

 

 

6.0

 

 

 

9.6

 

Operating lease liabilities, non-current

 

 

5.1

 

 

 

-

 

Other liabilities

 

 

0.9

 

 

 

1.2

 

Total liabilities

 

 

592.9

 

 

 

610.6

 

 

 

 

 

 

 

 

Commitments and contingencies – Note 13

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

Class A common stock, $0.0001 par, 200,000,000 shares

 

 

 

 

 

 

authorized at June 30, 2021 and December 31, 2020

 

 

 

 

 

 

Shares issued and outstanding: 78,469,923 and 69,005,059

 

 

 

 

 

 

at June 30, 2021 and December 31, 2020, respectively

 

 

-

 

 

 

-

 

Class C common stock, $0.0001 par, 200,000,000 shares

 

 

 

 

 

 

authorized at June 30, 2021 and December 31, 2020

 

 

 

 

 

 

Shares issued and outstanding: 2,921,099 and 6,511,293

 

 

 

 

 

 

at June 30, 2021 and December 31, 2020, respectively

 

 

-

 

 

 

-

 

Additional paid-in capital

 

 

673.8

 

 

 

564.7

 

Accumulated deficit

 

 

(51.4

)

 

 

(52.5

)

Accumulated other comprehensive income

 

 

6.9

 

 

 

10.7

 

Total shareholders' equity

 

 

629.3

 

 

 

522.9

 

Total liabilities and shareholders' equity

 

$

1,222.2

 

 

$

1,133.5

 

 

 

Ranpak Holdings Corp.

Unaudited Condensed Consolidated Statements of Cash Flows

(in millions)

 

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

Cash Flows from Operating Activities

 

 

 

 

 

 

Net income (loss)

 

$

1.1

 

 

$

(12.1

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

35.9

 

 

 

29.6

 

Amortization of deferred financing costs

 

 

1.1

 

 

 

0.7

 

Loss on disposal of fixed assets

 

 

0.7

 

 

 

1.0

 

Deferred income taxes

 

 

(2.4

)

 

 

(0.9

)

Amortization of initial value of hedging instrument

 

 

(0.4

)

 

 

-

 

Currency gain on foreign denominated debt and notes payable

 

 

(2.6

)

 

 

(0.2

)

Amortization of restricted stock units

 

 

7.4

 

 

 

4.2

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

(Increase) decrease in receivables, net

 

 

(0.9

)

 

 

(2.6

)

(Increase) decrease in inventory

 

 

(9.2

)

 

 

(4.8

)

(Increase) decrease in prepaid expenses and other assets

 

 

0.1

 

 

 

(0.3

)

Increase (decrease) in accounts payable

 

 

7.5

 

 

 

10.2

 

Increase (decrease) in accrued liabilities

 

 

0.8

 

 

 

2.1

 

Change in other assets and liabilities

 

 

(8.3

)

 

 

(4.6

)

Net cash provided by operating activities

 

 

30.8

 

 

 

22.3

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

Converter equipment

 

 

(21.9

)

 

 

(15.1

)

Other capital expenditures

 

 

(4.3

)

 

 

(3.1

)

Total capital expenditures

 

 

(26.2

)

 

 

(18.2

)

Patent and trademark expenditures

 

 

(0.6

)

 

 

(0.4

)

Net cash used in investing activities

 

 

(26.8

)

 

 

(18.6

)

 

 

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

 

 

Proceeds from equity offering, gross

 

 

104.0

 

 

 

-

 

Prepayments on term loan

 

 

(20.9

)

 

 

-

 

Financing costs of equity offering

 

 

(0.6

)

 

 

-

 

Principal payments on term loans

 

 

(0.8

)

 

 

(0.7

)

Payments on finance lease liabilities

 

 

(0.3

)

 

 

-

 

Exit Payment

 

 

(8.2

)

 

 

-

 

Net cash provided by (used in) financing activities

 

 

73.2

 

 

 

(0.7

)

 

 

 

 

 

 

 

Effect of Exchange Rate Changes on Cash

 

 

(0.4

)

 

 

(0.1

)

Net Increase in Cash and Cash Equivalents

 

 

76.8

 

 

 

2.9

 

Cash and Cash Equivalents, beginning of period

 

 

48.5

 

 

 

19.7

 

Cash and Cash Equivalents, end of period

 

$

125.3

 

 

$

22.6

 

Non-GAAP Financial Data

In this press release, we present Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and adjusted EBITDA (“AEBITDA”), each on a constant currency basis, which are non-GAAP financial measures. We have included EBITDA and AEBITDA on a constant currency basis 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. Adjusting these non-GAAP measures for comparability for constant currency also assists in this comparison as allows a better insight into the performance of our businesses that operate in currencies other than our reporting currency. Before consolidation, our Europe/Asia data is derived in Euros. 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 figure to use to give a stable depiction of the business without currency fluctuations, to calculate Europe/Asia data in constant currency USD. We combine the constant currency USD data for Europe/Asia with the USD North America data to create combined constant currency figures and adjust our non-GAAP figures by the respective amounts. In sum, we believe that constant currency EBITDA and AEBITDA provide useful information to investors and others in understanding and evaluating the Company’s operating results in the same manner as our management and Board of Directors.

However, EBITDA and 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 and 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 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;
  • AEBITDA does not consider the potentially dilutive impact of equity-based compensation;
  • 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 take into account any restructuring and integration costs; and
  • other companies, including companies in our industry, may calculate EBITDA and AEBITDA differently, which reduces their usefulness as comparative measures.

EBITDA — 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.

AEBITDA — AEBITDA 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; depreciation and amortization; stock-based compensation expense; and, in certain periods, certain other income and expense items.

In addition, we include certain other unaudited, non-GAAP constant currency data for the three and six months ended June 30, 2021 and 2020. This data is based on our historical financial statements, adjusted (where applicable) to reflect a constant currency presentation between periods for the convenience of readers. We reconcile this data to our GAAP data for the same period for the three and six months ended June 30, 2021 and 2020.

Ranpak Holdings Corp.
Non-GAAP Financial Data
Reconciliation of GAAP Statement of Income Data to Non-GAAP Constant Currency Statement of Income Data, EBITDA, and AEBITDA
For the Three Months Ended June 30, 2021
Please refer to our discussion and definitions of Non-GAAP financial measures, including Non-GAAP Constant Currency

 

 

Three Months Ended June 30, 2021

 

 

 

As reported

 

 

Constant Currency(3)

 

 

Non-GAAP

 

Net revenue

 

$

90.0

 

 

$

(2.5

)

 

$

87.5

 

Cost of goods sold

 

 

54.3

 

 

 

(1.5

)

 

 

52.8

 

Gross profit

 

 

35.7

 

 

 

(1.0

)

 

 

34.7

 

Selling, general and administrative expenses

 

 

24.6

 

 

 

(0.5

)

 

 

24.1

 

Depreciation and amortization expense

 

 

8.7

 

 

 

(0.2

)

 

 

8.5

 

Other operating expense, net

 

 

1.3

 

 

 

-

 

 

 

1.3

 

Income from operations

 

 

1.1

 

 

 

(0.3

)

 

 

0.8

 

Interest expense

 

 

6.0

 

 

 

(0.1

)

 

 

5.9

 

Foreign currency loss

 

 

1.2

 

 

 

(0.3

)

 

 

0.9

 

Loss before income tax benefit

 

 

(6.1

)

 

 

0.1

 

 

 

(6.0

)

Income tax benefit

 

 

(0.9

)

 

 

-

 

 

 

(0.9

)

Net loss

 

$

(5.2

)

 

$

0.1

 

 

 

(5.1

)

 

 

 

 

 

 

 

 

 

 

Constant currency-effected add(1):

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense - COS

 

 

 

 

 

 

 

 

9.2

 

Depreciation and amortization expense - D&A

 

 

 

 

 

 

 

 

8.5

 

Interest expense

 

 

 

 

 

 

 

 

5.9

 

Income tax benefit

 

 

 

 

 

 

 

 

(0.9

)

Constant currency EBITDA

 

 

 

 

 

 

 

 

17.6

 

 

 

 

 

 

 

 

 

 

 

Constant currency-effected adjustments(2):

 

 

 

 

 

 

 

 

 

Unrealized loss translation

 

 

 

 

 

 

 

 

1.0

 

Non-cash impairment losses

 

 

 

 

 

 

 

 

0.5

 

M&A, restructuring, severance

 

 

 

 

 

 

 

 

0.3

 

Amortization of restricted stock units

 

 

 

 

 

 

 

 

4.7

 

Other non-core and non-cash adjustments

 

 

 

 

 

 

 

 

1.5

 

Constant currency AEBITDA

 

 

 

 

 

 

 

$

25.6

 

Ranpak Holdings Corp.
Non-GAAP Financial Data
Reconciliation of GAAP Statement of Income Data to Non-GAAP Constant Currency Statement of Income Data, EBITDA, and AEBITDA
For the Three Months Ended June 30, 2020
Please refer to our discussion and definitions of Non-GAAP financial measures, including Non-GAAP Constant Currency

 

 

Three Months Ended June 30, 2020

 

 

 

As reported

 

 

Constant Currency(3)

 

 

Non-GAAP

 

Net revenue

 

$

66.1

 

 

$

1.7

 

 

$

67.8

 

Cost of goods sold

 

 

39.1

 

 

 

1.0

 

 

 

40.1

 

Gross profit

 

 

27.0

 

 

 

0.7

 

 

 

27.7

 

Selling, general and administrative expenses

 

 

20.7

 

 

 

0.4

 

 

 

21.1

 

Depreciation and amortization expense

 

 

7.7

 

 

 

0.1

 

 

 

7.8

 

Other operating expense, net

 

 

0.7

 

 

 

0.2

 

 

 

0.9

 

Loss from operations

 

 

(2.1

)

 

 

-

 

 

 

(2.1

)

Interest expense

 

 

5.5

 

 

 

-

 

 

 

5.5

 

Foreign currency loss

 

 

1.4

 

 

 

-

 

 

 

1.4

 

Loss before income tax benefit

 

 

(9.0

)

 

 

-

 

 

 

(9.0

)

Income tax benefit

 

 

(0.5

)

 

 

0.1

 

 

 

(0.4

)

Net loss

 

$

(8.5

)

 

$

(0.1

)

 

 

(8.6

)

 

 

 

 

 

 

 

 

 

 

Constant currency-effected add(1):

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense - COS

 

 

 

 

 

 

 

 

7.4

 

Depreciation and amortization expense - D&A

 

 

 

 

 

 

 

 

7.7

 

Interest expense

 

 

 

 

 

 

 

 

5.5

 

Income tax benefit

 

 

 

 

 

 

 

 

(0.5

)

Constant currency EBITDA

 

 

 

 

 

 

 

 

11.5

 

 

 

 

 

 

 

 

 

 

 

Constant currency-effected adjustments(2):

 

 

 

 

 

 

 

 

 

Unrealized loss translation

 

 

 

 

 

 

 

 

1.3

 

Constant currency

 

 

 

 

 

 

 

 

0.5

 

Non-cash impairment losses

 

 

 

 

 

 

 

 

0.6

 

M&A, restructuring, severance

 

 

 

 

 

 

 

 

2.3

 

Amortization of restricted stock units

 

 

 

 

 

 

 

 

2.0

 

Other non-core and non-cash adjustments

 

 

 

 

 

 

 

 

0.8

 

Constant currency AEBITDA

$

19.0

 

Ranpak Holdings Corp.
Non-GAAP Financial Data
Comparison of Non-GAAP Constant Currency Statement of Income Data, EBITDA, and AEBITDA
For the Three Months Ended June 30, 2021 and 2020
Please refer to our discussion and definitions of Non-GAAP financial measures, including Non-GAAP Constant Currency

 

 

Non-GAAP Constant Currency

 

 

 

Three Months Ended June 30,

 

 

 

 

 

 

 

 

 

2021

 

 

2020

 

 

$ Change

 

 

% Change

 

Net revenue

 

$

87.5

 

 

$

67.8

 

 

$

19.7

 

 

 

29.1

 

Cost of goods sold

 

 

52.8

 

 

 

40.1

 

 

 

12.7

 

 

 

31.7

 

Gross profit

 

 

34.7

 

 

 

27.7

 

 

 

7.0

 

 

 

25.3

 

Selling, general and administrative expenses

 

 

24.1

 

 

 

21.1

 

 

 

3.0

 

 

 

14.2

 

Depreciation and amortization expense

 

 

8.5

 

 

 

7.8

 

 

 

0.7

 

 

 

9.0

 

Other operating expense, net

 

 

1.3

 

 

 

0.9

 

 

 

0.4

 

 

 

44.4

 

Income (loss) from operations

 

 

0.8

 

 

 

(2.1

)

 

 

2.9

 

 

 

(138.1

)

Interest expense

 

 

5.9

 

 

 

5.5

 

 

 

0.4

 

 

 

7.3

 

Foreign currency loss

 

 

0.9

 

 

 

1.4

 

 

 

(0.5

)

 

 

(35.7

)

Loss before income tax benefit

 

 

(6.0

)

 

 

(9.0

)

 

 

3.0

 

 

 

(33.3

)

Income tax benefit

 

 

(0.9

)

 

 

(0.4

)

 

 

(0.5

)

 

 

125.0

 

Net loss

 

 

(5.1

)

 

 

(8.6

)

 

 

3.5

 

 

 

(40.7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Constant currency-effected add(1):

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense - COS

 

 

9.2

 

 

 

7.4

 

 

 

1.8

 

 

 

24.3

 

Depreciation and amortization expense - D&A

 

 

8.5

 

 

 

7.7

 

 

 

0.8

 

 

 

10.4

 

Interest expense

 

 

5.9

 

 

 

5.5

 

 

 

0.4

 

 

 

7.3

 

Income tax benefit

 

 

(0.9

)

 

 

(0.5

)

 

 

(0.4

)

 

 

80.0

 

Constant currency EBITDA

 

 

17.6

 

 

 

11.5

 

 

 

6.1

 

 

 

53.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Constant currency-effected adjustments(2):

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss translation

 

 

1.0

 

 

 

1.3

 

 

 

(0.3

)

 

 

(23.1

)

Constant currency

 

 

-

 

 

 

0.5

 

 

 

(0.5

)

 

 

(100.0

)

Non-cash impairment losses

 

 

0.5

 

 

 

0.6

 

 

 

(0.1

)

 

 

(16.7

)

M&A, restructuring, severance

 

 

0.3

 

 

 

2.3

 

 

 

(2.0

)

 

 

(87.0

)

Amortization of restricted stock units

 

 

4.7

 

 

 

2.0

 

 

 

2.7

 

 

 

135.0

 

Other non-core and non-cash adjustments

 

 

1.5

 

 

 

0.8

 

 

 

0.7

 

 

 

87.5

 

Constant currency AEBITDA

 

$

25.6

 

 

$

19.0

 

 

$

6.6

 

 

 

34.7

 

Ranpak Holdings Corp.
Non-GAAP Financial Data
Reconciliation of GAAP Statement of Income Data to Non-GAAP Constant Currency Statement of Income Data, EBITDA, and AEBITDA
For the Six Months Ended June 30, 2021
Please refer to our discussion and definitions of Non-GAAP financial measures, including Non-GAAP Constant Currency

 

 

Six Months Ended June 30, 2021

 

 

 

As reported

 

 

Constant Currency(3)

 

 

Non-GAAP

 

Net revenue

 

$

177.7

 

 

$

(5.2

)

 

$

172.5

 

Cost of goods sold

 

 

105.7

 

 

 

(3.0

)

 

 

102.7

 

Gross profit

 

 

72.0

 

 

 

(2.2

)

 

 

69.8

 

Selling, general and administrative expenses

 

 

43.7

 

 

 

(0.9

)

 

 

42.8

 

Depreciation and amortization expense

 

 

17.4

 

 

 

(0.3

)

 

 

17.1

 

Other operating expense, net

 

 

2.1

 

 

 

-

 

 

 

2.1

 

Income from operations

 

 

8.8

 

 

 

(1.0

)

 

 

7.8

 

Interest expense

 

 

11.6

 

 

 

(0.1

)

 

 

11.5

 

Foreign currency gain

 

 

(2.4

)

 

 

(0.7

)

 

 

(3.1

)

Loss before income tax benefit

 

 

(0.4

)

 

 

(0.2

)

 

 

(0.6

)

Income tax benefit

 

 

(1.5

)

 

 

(0.1

)

 

 

(1.6

)

Net income

 

$

1.1

 

 

$

(0.1

)

 

 

1.0

 

 

 

 

 

 

 

 

 

 

 

Constant currency-effected add(1):

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense - COS

 

 

 

 

 

 

 

 

18.1

 

Depreciation and amortization expense - D&A

 

 

 

 

 

 

 

 

17.1

 

Interest expense

 

 

 

 

 

 

 

 

11.5

 

Income tax benefit

 

 

 

 

 

 

 

 

(1.6

)

Constant currency EBITDA

 

 

 

 

 

 

 

 

46.1

 

 

 

 

 

 

 

 

 

 

 

Constant currency-effected adjustments(2):

 

 

 

 

 

 

 

 

 

Unrealized gain translation

 

 

 

 

 

 

 

 

(2.6

)

Non-cash impairment losses

 

 

 

 

 

 

 

 

0.7

 

M&A, restructuring, severance

 

 

 

 

 

 

 

 

0.4

 

Amortization of restricted stock units

 

 

 

 

 

 

 

 

7.4

 

Other non-core and non-cash adjustments

 

 

 

 

 

 

 

 

1.6

 

Constant currency AEBITDA

 

 

 

 

 

 

 

$

53.6

 

Ranpak Holdings Corp.
Non-GAAP Financial Data
Reconciliation of GAAP Statement of Income Data to Non-GAAP Constant Currency Statement of Income Data, EBITDA, and AEBITDA
For the Six Months Ended June 30, 2020
Please refer to our discussion and definitions of Non-GAAP financial measures, including Non-GAAP Constant Currency

 

 

Six Months Ended June 30, 2020

 

 

 

As reported

 

 

Constant Currency(3)

 

 

Non-GAAP

 

Net revenue

 

$

129.5

 

 

$

3.1

 

 

$

132.6

 

Cost of goods sold

 

 

75.7

 

 

 

1.8

 

 

 

77.5

 

Gross profit

 

 

53.8

 

 

 

1.3

 

 

 

55.1

 

Selling, general and administrative expenses

 

 

40.3

 

 

 

0.7

 

 

 

41.0

 

Depreciation and amortization expense

 

 

15.2

 

 

 

0.2

 

 

 

15.4

 

Other operating expense, net

 

 

1.0

 

 

 

0.4

 

 

 

1.4

 

Loss from operations

 

 

(2.7

)

 

 

-

 

 

 

(2.7

)

Interest expense

 

 

11.7

 

 

 

-

 

 

 

11.7

 

Foreign currency gain

 

 

(0.1

)

 

 

-

 

 

 

(0.1

)

Loss before income tax benefit

 

 

(14.3

)

 

 

-

 

 

 

(14.3

)

Income tax benefit

 

 

(2.2

)

 

 

0.1

 

 

 

(2.1

)

Net loss

 

$

(12.1

)

 

$

(0.1

)

 

 

(12.2

)

 

 

 

 

 

 

 

 

 

 

Constant currency-effected add(1):

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense - COS

 

 

 

 

 

 

 

 

14.4

 

Depreciation and amortization expense - D&A

 

 

 

 

 

 

 

 

15.3

 

Interest expense

 

 

 

 

 

 

 

 

11.7

 

Income tax benefit

 

 

 

 

 

 

 

 

(2.2

)

Constant currency EBITDA

 

 

 

 

 

 

 

 

27.0

 

 

 

 

 

 

 

 

 

 

 

Constant currency-effected adjustments(2):

 

 

 

 

 

 

 

 

 

Unrealized gain translation

 

 

 

 

 

 

 

 

(0.2

)

Constant currency

 

 

 

 

 

 

 

 

0.6

 

Non-cash impairment losses

 

 

 

 

 

 

 

 

0.8

 

M&A, restructuring, severance

 

 

 

 

 

 

 

 

3.6

 

Amortization of restricted stock units

 

 

 

 

 

 

 

 

4.2

 

Other non-core and non-cash adjustments

 

 

 

 

 

 

 

 

1.1

 

Constant currency AEBITDA

 

 

 

 

 

 

 

$

37.1

 

Ranpak Holdings Corp.
Non-GAAP Financial Data
Comparison of Non-GAAP Constant Currency Statement of Income Data, EBITDA, and AEBITDA
For the Six Months Ended June 30, 2021 and 2020
Please refer to our discussion and definitions of Non-GAAP financial measures, including Non-GAAP Constant Currency

 

 

Non-GAAP Constant Currency

 

 

 

Six Months Ended June 30,

 

 

 

 

 

 

 

 

 

2021

 

 

2020

 

 

$ Change

 

 

% Change

 

Net revenue

 

$

172.5

 

 

$

132.6

 

 

$

39.9

 

 

 

30.1

 

Cost of goods sold

 

 

102.7

 

 

 

77.5

 

 

 

25.2

 

 

 

32.5

 

Gross profit

 

 

69.8

 

 

 

55.1

 

 

 

14.7

 

 

 

26.7

 

Selling, general and administrative expenses

 

 

42.8

 

 

 

41.0

 

 

 

1.8

 

 

 

4.4

 

Depreciation and amortization expense

 

 

17.1

 

 

 

15.4

 

 

 

1.7

 

 

 

11.0

 

Other operating expense, net

 

 

2.1

 

 

 

1.4

 

 

 

0.7

 

 

 

50.0

 

Income (loss) from operations

 

 

7.8

 

 

 

(2.7

)

 

 

10.5

 

 

 

(388.9

)

Interest expense

 

 

11.5

 

 

 

11.7

 

 

 

(0.2

)

 

 

(1.7

)

Foreign currency gain

 

 

(3.1

)

 

 

(0.1

)

 

 

(3.0

)

 

 

3,000.0

 

Loss before income tax benefit

 

 

(0.6

)

 

 

(14.3

)

 

 

13.7

 

 

 

(95.8

)

Income tax benefit

 

 

(1.6

)

 

 

(2.1

)

 

 

0.5

 

 

 

(23.8

)

Net income (loss)

 

 

1.0

 

 

 

(12.2

)

 

 

13.2

 

 

 

(108.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Constant currency-effected add(1):

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense - COS

 

 

18.1

 

 

 

14.4

 

 

 

3.7

 

 

 

25.7

 

Depreciation and amortization expense - D&A

 

 

17.1

 

 

 

15.3

 

 

 

1.8

 

 

 

11.8

 

Interest expense

 

 

11.5

 

 

 

11.7

 

 

 

(0.2

)

 

 

(1.7

)

Income tax benefit

 

 

(1.6

)

 

 

(2.2

)

 

 

0.6

 

 

 

(27.3

)

Constant currency-effected EBITDA

 

 

46.1

 

 

 

27.0

 

 

 

19.1

 

 

 

70.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Constant currency-effected adjustments(2):

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain translation

 

 

(2.6

)

 

 

(0.2

)

 

 

(2.4

)

 

 

1,200.0

 

Constant currency

 

 

-

 

 

 

0.6

 

 

 

(0.6

)

 

 

(100.0

)

Non-cash impairment losses

 

 

0.7

 

 

 

0.8

 

 

 

(0.1

)

 

 

(12.5

)

M&A, restructuring, severance

 

 

0.4

 

 

 

3.6

 

 

 

(3.2

)

 

 

(88.9

)

Amortization of restricted stock units

 

 

7.4

 

 

 

4.2

 

 

 

3.2

 

 

 

76.2

 

Other non-core and non-cash adjustments

 

 

1.6

 

 

 

1.1

 

 

 

0.5

 

 

 

45.5

 

Constant currency-effected AEBITDA

 

$

53.6

 

 

$

37.1

 

 

$

16.5

 

 

 

44.5

 

 

 

 

(1)

Reconciliations of EBITDA and AEBITDA for each period presented are to net (loss) income, the nearest GAAP equivalent, and accordingly include the adjustments shown in the “Constant Currency” column to net (loss) income of each table.

(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; and other items deemed by management to be unusual, infrequent, or non-recurring.

(3)

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 June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net revenue

 

$

(2.5

)

 

$

1.7

 

 

$

(5.2

)

 

$

3.1

 

Cost of goods sold

 

 

(1.5

)

 

 

1.0

 

 

 

(3.0

)

 

 

1.8

 

Gross profit

 

 

(1.0

)

 

 

0.7

 

 

 

(2.2

)

 

 

1.3

 

Selling, general and administrative expenses

 

 

(0.5

)

 

 

0.4

 

 

 

(0.9

)

 

 

0.7

 

Depreciation and amortization expense

 

 

(0.2

)

 

 

0.1

 

 

 

(0.3

)

 

 

0.2

 

Other operating expense, net

 

 

-

 

 

 

0.2

 

 

 

-

 

 

 

0.4

 

Loss from operations

 

 

(0.3

)

 

 

-

 

 

 

(1.0

)

 

 

-

 

Interest expense

 

 

(0.1

)

 

 

-

 

 

 

(0.1

)

 

 

-

 

Foreign currency gain

 

 

(0.3

)

 

 

-

 

 

 

(0.7

)

 

 

-

 

Loss before income tax expense (benefit)

 

 

0.1

 

 

 

-

 

 

 

(0.2

)

 

 

-

 

Income tax expense (benefit)

 

 

-

 

 

 

0.1

 

 

 

(0.1

)

 

 

0.1

 

Net income (loss)

 

$

0.1

 

 

$

(0.1

)

 

$

(0.1

)

 

$

(0.1

)

 

Bill Drew
IR@ranpak.com

Source: Ranpak Holdings Corp.

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