Ranpak Holdings Corp. Reports Fourth Quarter and Full Year 2020 Financial Results

Ranpak Holdings Corp. (NYSE: PACK) (“Ranpak” or “the Company”), a leading provider of environmentally sustainable, systems-based, product protection solutions for e-commerce and industrial supply chains, today reported its fourth quarter and full year 2020 financial results.

Omar Asali, Chairman and Chief Executive Officer, commented, “The Ranpak team continued to execute well into year end and delivered excellent results while staying focused on employee health and safety. Our disciplined approach to investing in the business and enhancing our commercial capabilities was on display in the fourth quarter as net revenue of $90.2 million increased 13.9% year over year on a constant currency basis compared to pro forma net revenue of $79.2 million in the fourth quarter of 2019. Exceptional demand in Europe / APAC driven by elevated e-Commerce activity as well as improvements in industrial activity were the key growth drivers in the quarter. Strong growth in the top-line and operating leverage translated into robust growth in AEBITDA of 14.6% year over year to $33.0 million, implying an attractive margin of 36.6%.”

“As I reflect on where we are and where we are going, I believe it is safe to say Ranpak is a more nimble, proactive, and customer centric company than it was a year ago. The team sees the opportunity available to us and is operating at a new pace to pursue our growth initiatives. I believe 2020 was a year that will serve as a strong foundation for Ranpak’s next chapter. We reinvigorated the product portfolio with best-in-class Void-fill and Cushioning solutions, introduced a next generation Automation offering, developed an on-demand cold chain solution, and significantly increased our brand positioning through digital investments. I believe 2021 will continue to see the world move to more sustainable solutions and embrace Automation further. I am pleased with our continued progress at Ranpak and excited about our ability to drive growth and create shareholder value while also improving the world around us.”

Fourth Quarter 2020 Highlights

• Packaging systems placement increased 12.2% year over year, to approximately 117,400 machines as of December 31, 2020
• Net revenue increased 18.3% and 13.9% adjusting for constant currency¹ and purchase accounting adjustments of $0.1 million in the fourth quarter of 2019
• Net loss of $5.2 million and AEBITDA² of $33.0 million for the three months ended December 31, 2020 is up 14.6%

Net revenue for the three months ended December 31, 2020 was $91.9 million, an increase of $14.2 million or 18.3% year over year, driven by increases in cushioning, void-fill, and wrapping, partially offset by decreases in automation. Cushioning increased $6.6 million, or 20.0%, to $39.6 million from $33.0 million, void-fill increased $5.5 million, or 16.8%, to $38.2 million from $32.7 million, wrapping increased $3.3 million, or 34.4%, to $12.9 million from $9.6 million, while other sales decreased $1.2 million, or 50.0%, to $1.2 million from $2.4 million, for the three months ended December 31, 2020 compared to the three months ended December 31, 2019. Other net revenue includes automated box sizing equipment and non-paper revenue from packaging systems installed in the field. Pro forma net revenue was $90.2 million for the three months ended December 31, 2020, an $11.0 million, or 13.9%, increase on a constant currency basis from pro forma net revenue of $79.2 million for the three months ended December 31, 2019.

Net revenue in North America for the three months ended December 31, 2020 totaled $38.8 million. Net revenue in North America was $39.6 million in the three months ended December 31, 2019. Net revenue in North America decreased $0.8 million, or 2.0% attributable to a decline in cushioning and void-fill product categories, partially offset by an increase in wrapping sales. Pro forma net revenue in North America was $38.8 million for the three months ended December 31, 2020, a $0.9 million, or 2.3%, decrease from pro forma net revenue of $39.7 million for the three months ended December 31, 2019 after purchase accounting adjustments.

Net revenue in Europe/Asia for the three months ended December 31, 2020 totaled $53.1 million. Net revenue in Europe/Asia was $38.1 million in the three months ended December 31, 2019. Net revenue in Europe/Asia increased $15.0 million or 39.4% driven primarily by increases in cushioning, void-fill and wrapping product categories, partially offset by a decline in automation revenue. Pro forma net revenue in Europe/Asia was $51.4 million for the three months ended December 31, 2020, an $11.9 million, or 30.1%, increase from pro forma net revenue of $39.5 million for the three months ended D