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 17% year over year on a constant currency basis
-
Net loss for the fourth quarter of
$8.0 million $9.3 million
-
Adjusted EBITDA (“AEBITDA”) for the fourth quarter of
$25.3 million 8% , or$1.8 million 8% on a constant currency basis
-
Packaging System placement up
1% year over year to approximately 142.7 thousand machines at December 31, 2024
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
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
Refer to the section below entitled “Non-GAAP Measures” and the related reconciliations and comparisons of
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
|
|
||||||
|
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 |
|
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 |
Outlook for 2025
On a constant currency basis, we are forecasting net revenue growth in the area of
Our outlook reflects our expectation of increased contributions from strategic accounts in
Fourth Quarter 2024 Highlights
-
Net revenue increased
16% and increased17% on a constant currency basis
-
Net loss of
$8.0 million $9.3 million
-
AEBITDA1 of
$25.3 million 8% and up8% 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
Full Year 2024 Highlights
-
Net revenue increased
10% and increased10% on a constant currency basis
-
Net loss of
$18.7 million $27.1 million
-
AEBITDA of
$83.8 million 14% and up14% 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
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: https://events.q4inc.com/attendee/449556914. 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,
|
|
December 31,
|
||||
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, |
|
— |
|
|
|
— |
|
Convertible Class C common stock, |
|
— |
|
|
|
— |
|
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
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
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
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
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
- 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
| 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 |
|
Constant
|
||||||||||||||
|
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 |
|||||
|
|
|||||
(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 |
|||||
| 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 |
|
Constant
|
||||||||||||||
|
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 |
|||||
|
|
|||||
(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 |
|||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250306111495/en/
Megan Wintersteen
wintersteen.megan@ranpak.com
Source: Ranpak Holdings Corp
