Ranpak Holdings Corp. Reports Third Quarter 2021 Financial Results
Ranpak Holdings reported a 26.4% increase in third-quarter net revenue, reaching $97.1 million, driven by strong growth in North America and Europe/APAC. The net loss decreased to $1.4 million from $6.1 million year over year. Adjusted EBITDA rose 20.3% to $28.5 million, with a 29.8% margin. Packaging systems placed increased by 14.2% to approximately 129,200 machines. The year-to-date revenue surged 28.5%, and the company maintains a strong liquidity position with $110.4 million in cash.
- Net revenue increased 26.4% year over year to $97.1 million.
- Adjusted EBITDA rose 20.3% to $28.5 million with a 29.8% margin.
- Year-to-date net revenue increased 28.5%.
- Packaging systems placement grew 14.2% year over year.
- Net loss of $1.4 million compared to prior net loss of $6.1 million does not indicate profitability.
- Decline in automation revenue impacted overall growth.
-
Packaging System placement up
14.2% year over year to approximately 129,200 machines atSeptember 30, 2021 -
Third quarter net revenue increased
26.4% year over year to$97.1 million 25.6% year over year on a constant currency basis to$95.6 million -
Third quarter net loss of
$1.4 million $6.1 million -
Constant currency Adjusted EBITDA (“AEBITDA”) of
$28.5 million 29.8% margin) is up20.3% , or$4.8 million
“On a year-to-date basis, net revenue is up
“Across the globe, sustainability continues to be a key value driver and a priority for businesses. Within organizations, steering committees are being formed to examine ways to embed sustainability throughout companies’ operations, gather data, and reach publicly stated goals. Regulators, consumers, employees, and shareholders are increasingly working to drive change globally to reduce plastic pollution, and
Third Quarter 2021 Highlights
-
Packaging systems placement increased
14.2% year over year, to approximately 129,200 machines as ofSeptember 30, 2021 -
Net revenue increased
26.4% and25.6% adjusting for constant currency -
Net loss of
$1.4 million $6.1 million -
AEBITDA1 of
$28.5 million September 30, 2021 is up20.3%
Net revenue for the third quarter of 2021 was
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1 |
AEBITDA is a non-GAAP financial measure. Please refer to “Presentation of Combined and Pro |
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Cushioning increased
Net revenue in
Net revenue in
Net loss for the third quarter of 2021 decreased
Year-to-Date 2021 Highlights
-
Net revenue increased
33.2% and28.5% adjusting for constant currency -
Net loss of
$0.3 million $18.2 million -
AEBITDA of
$82.1 million September 30, 2021 is up35.0%
Balance Sheet and Liquidity
As of
The following table presents Ranpak’s installed base of protective packaging systems by product line as of
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Change |
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% Change |
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Protective Packaging Systems |
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(in thousands) |
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Cushioning machines |
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34.9 |
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33.2 |
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1.7 |
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5.1 |
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Void-fill machines |
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75.1 |
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65.5 |
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9.6 |
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14.7 |
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Wrapping machines |
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19.2 |
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14.4 |
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4.8 |
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33.3 |
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Total |
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129.2 |
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113.1 |
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16.1 |
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14.2 |
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Conference Call Information
The Company will host a conference call and webcast at
A telephonic replay of the webcast also will be available starting at
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
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.
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (in millions, except share and per share data) |
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Three Months Ended |
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Nine Months Ended |
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2021 |
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2020 |
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2021 |
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2020 |
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Paper revenue |
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$ |
81.2 |
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$ |
64.9 |
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$ |
229.5 |
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$ |
171.2 |
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Machine lease revenue |
|
|
11.8 |
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10.4 |
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35.0 |
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|
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28.3 |
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Other revenue |
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4.1 |
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1.5 |
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10.3 |
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6.8 |
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Net revenue |
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97.1 |
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|
76.8 |
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|
|
274.8 |
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206.3 |
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Cost of goods sold |
|
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59.1 |
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|
46.6 |
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|
164.8 |
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|
122.3 |
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Gross profit |
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38.0 |
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30.2 |
|
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|
110.0 |
|
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|
84.0 |
|
Selling, general and administrative expenses |
|
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27.1 |
|
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16.6 |
|
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|
70.8 |
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|
56.9 |
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Transaction costs |
|
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- |
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1.2 |
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- |
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1.2 |
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Depreciation and amortization expense |
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8.7 |
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7.7 |
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26.1 |
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22.9 |
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Other operating expense (income), net |
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(0.1 |
) |
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1.9 |
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2.0 |
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|
2.9 |
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Income from operations |
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2.3 |
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2.8 |
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11.1 |
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0.1 |
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Interest expense |
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5.5 |
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4.9 |
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17.1 |
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16.6 |
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Foreign currency (gain) loss |
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(1.5 |
) |
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3.2 |
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(3.9 |
) |
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3.1 |
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Loss before income tax expense (benefit) |
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(1.7 |
) |
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(5.3 |
) |
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(2.1 |
) |
|
|
(19.6 |
) |
Income tax expense (benefit) |
|
|
(0.3 |
) |
|
|
0.8 |
|
|
|
(1.8 |
) |
|
|
(1.4 |
) |
Net loss |
|
$ |
(1.4 |
) |
|
$ |
(6.1 |
) |
|
$ |
(0.3 |
) |
|
$ |
(18.2 |
) |
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Two-class method |
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Loss per share |
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Basic |
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$ |
(0.02 |
) |
|
$ |
(0.08 |
) |
|
$ |
- |
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$ |
(0.25 |
) |
Diluted |
|
$ |
(0.02 |
) |
|
$ |
(0.08 |
) |
|
$ |
- |
|
|
$ |
(0.25 |
) |
Class A – earnings (loss) per share |
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Basic |
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$ |
(0.02 |
) |
|
$ |
(0.08 |
) |
|
$ |
- |
|
|
$ |
(0.25 |
) |
Diluted |
|
$ |
(0.02 |
) |
|
$ |
(0.08 |
) |
|
$ |
- |
|
|
$ |
(0.25 |
) |
Class C – earnings (loss) per share |
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Basic |
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$ |
(0.03 |
) |
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$ |
(0.08 |
) |
|
$ |
- |
|
|
$ |
(0.26 |
) |
Diluted |
|
$ |
(0.03 |
) |
|
$ |
(0.08 |
) |
|
$ |
- |
|
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$ |
(0.26 |
) |
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Weighted average number of shares outstanding - Class A and C |
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Basic |
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|
81,396,832 |
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|
72,396,183 |
|
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|
77,579,205 |
|
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|
71,401,580 |
|
Diluted |
|
|
81,396,832 |
|
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|
72,396,183 |
|
|
|
77,579,205 |
|
|
|
71,401,580 |
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|
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Other comprehensive income (loss), before tax |
|
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|
|
|
|
|
|
|
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|
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Foreign currency translation adjustments |
|
$ |
(4.9 |
) |
|
$ |
8.4 |
|
|
$ |
(11.1 |
) |
|
$ |
7.9 |
|
Interest rate swap adjustments |
|
|
0.8 |
|
|
|
(0.5 |
) |
|
|
4.0 |
|
|
|
(12.2 |
) |
Cross currency swap adjustments |
|
|
1.4 |
|
|
|
- |
|
|
|
1.4 |
|
|
|
- |
|
Total other comprehensive income (loss), before tax |
|
|
(2.7 |
) |
|
|
7.9 |
|
|
|
(5.7 |
) |
|
|
(4.3 |
) |
Provision (benefit) for income taxes related to other comprehensive income (loss) |
|
|
0.5 |
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|
0.1 |
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1.3 |
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|
|
(2.1 |
) |
Total other comprehensive income (loss), net of tax |
|
|
(3.2 |
) |
|
|
7.8 |
|
|
|
(7.0 |
) |
|
|
(2.2 |
) |
Comprehensive income (loss), net of tax |
$ |
(4.6 |
) |
$ |
1.7 |
|
$ |
(7.3 |
) |
$ |
(20.4 |
) |
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Unaudited Condensed Consolidated Balance Sheets (in millions, except share data) |
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(unaudited) |
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Assets |
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Current assets |
|
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Cash and cash equivalents |
|
$ |
110.4 |
|
|
$ |
48.5 |
|
Accounts receivable, net |
|
|
44.8 |
|
|
|
39.1 |
|
Inventories, net |
|
|
30.2 |
|
|
|
16.1 |
|
Income tax receivable |
|
|
9.2 |
|
|
|
0.1 |
|
Prepaid expenses and other current assets |
|
|
4.1 |
|
|
|
3.4 |
|
Total current assets |
|
|
198.7 |
|
|
|
107.2 |
|
|
|
|
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|
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Property, plant and equipment, net |
|
|
126.5 |
|
|
|
124.4 |
|
Operating lease right-of-use assets, net |
|
|
6.8 |
|
|
|
- |
|
|
|
|
452.1 |
|
|
|
458.4 |
|
Intangible assets, net |
|
|
413.9 |
|
|
|
440.6 |
|
Other assets |
|
|
24.6 |
|
|
|
2.9 |
|
Total assets |
|
$ |
1,222.6 |
|
|
$ |
1,133.5 |
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Liabilities and Shareholders' Equity |
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Current liabilities |
|
|
|
|
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Accounts payable |
|
$ |
34.7 |
|
|
$ |
24.9 |
|
Accrued liabilities and other |
|
|
31.6 |
|
|
|
30.7 |
|
Current portion of long-term debt |
|
|
1.1 |
|
|
|
0.5 |
|
Operating lease liabilities, current |
|
|
2.4 |
|
|
|
- |
|
Deferred machine fee revenue |
|
|
1.7 |
|
|
|
1.4 |
|
Total current liabilities |
|
|
71.5 |
|
|
|
57.5 |
|
|
|
|
|
|
|
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Long-term debt |
|
|
403.9 |
|
|
|
432.7 |
|
Deferred tax liabilities |
|
|
105.4 |
|
|
|
109.6 |
|
Derivative instruments |
|
|
4.9 |
|
|
|
9.6 |
|
Operating lease liabilities, non-current |
|
|
4.4 |
|
|
|
- |
|
Other liabilities |
|
|
0.9 |
|
|
|
1.2 |
|
Total liabilities |
|
|
591.0 |
|
|
|
610.6 |
|
|
|
|
|
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Commitments and contingencies – Note 13 |
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Shareholders' equity |
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Class A common stock, |
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authorized at |
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Shares issued and outstanding: 78,475,824 and 69,005,059 |
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at |
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|
- |
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|
- |
|
Class C common stock, |
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authorized at |
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Shares issued and outstanding: 2,921,099 and 6,511,293 |
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at |
|
|
- |
|
|
|
- |
|
Additional paid-in capital |
|
|
680.7 |
|
|
|
564.7 |
|
Accumulated deficit |
|
|
(52.8 |
) |
|
|
(52.5 |
) |
Accumulated other comprehensive income |
|
|
3.7 |
|
|
|
10.7 |
|
Total shareholders' equity |
|
|
631.6 |
|
|
|
522.9 |
|
Total liabilities and shareholders' equity |
|
$ |
1,222.6 |
|
|
$ |
1,133.5 |
|
Unaudited Condensed Consolidated Statements of Cash Flows (in millions) |
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Nine Months Ended |
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|
2021 |
|
|
2020 |
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Cash Flows from Operating Activities |
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|
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Net loss |
|
$ |
(0.3 |
) |
|
$ |
(18.2 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
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Depreciation and amortization |
|
|
54.4 |
|
|
|
45.3 |
|
Amortization of deferred financing costs |
|
|
1.5 |
|
|
|
1.2 |
|
Loss on disposal of fixed assets |
|
|
1.0 |
|
|
|
1.7 |
|
Deferred income taxes |
|
|
(4.0 |
) |
|
|
(0.9 |
) |
Amortization of initial value of hedging instrument |
|
|
(0.6 |
) |
|
|
(1.2 |
) |
Currency (gain) loss on foreign denominated debt and notes payable |
|
|
(4.1 |
) |
|
|
3.2 |
|
Amortization of restricted stock units |
|
|
14.3 |
|
|
|
5.9 |
|
Changes in operating assets and liabilities: |
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|
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(Increase) decrease in receivables, net |
|
|
(4.5 |
) |
|
|
(9.4 |
) |
(Increase) decrease in inventory |
|
|
(14.3 |
) |
|
|
(2.7 |
) |
(Increase) decrease in prepaid expenses and other assets |
|
|
(0.7 |
) |
|
|
(1.0 |
) |
Increase (decrease) in accounts payable |
|
|
8.0 |
|
|
|
8.2 |
|
Increase (decrease) in accrued liabilities |
|
|
5.5 |
|
|
|
6.5 |
|
Change in other assets and liabilities |
|
|
(15.4 |
) |
|
|
(0.8 |
) |
Net cash provided by operating activities |
|
|
40.8 |
|
|
|
37.8 |
|
|
|
|
|
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Cash Flows from Investing Activities |
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Capital expenditures: |
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Converter equipment |
|
|
(32.9 |
) |
|
|
(21.1 |
) |
Other capital expenditures |
|
|
(7.7 |
) |
|
|
(3.9 |
) |
Total capital expenditures |
|
|
(40.6 |
) |
|
|
(25.0 |
) |
Cash paid for investments in small private businesses |
|
|
(9.2 |
) |
|
|
- |
|
Patent and trademark expenditures |
|
|
(0.9 |
) |
|
|
(0.5 |
) |
Net cash used in investing activities |
|
|
(50.7 |
) |
|
|
(25.5 |
) |
|
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|
|
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Cash Flows from Financing Activities |
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|
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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 |
|
|
(1.2 |
) |
|
|
(1.2 |
) |
Payments on finance lease liabilities |
|
|
(0.5 |
) |
|
|
- |
|
Exit Payment |
|
|
(8.2 |
) |
|
|
- |
|
Net cash provided by (used in) financing activities |
|
|
72.6 |
|
|
|
(1.2 |
) |
|
|
|
|
|
|
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Effect of Exchange Rate Changes on Cash |
|
|
(0.8 |
) |
|
|
0.5 |
|
Net Increase in Cash and Cash Equivalents |
|
|
61.9 |
|
|
|
11.6 |
|
Cash and Cash Equivalents, beginning of period |
|
|
48.5 |
|
|
|
19.7 |
|
Cash and Cash Equivalents, end of period |
$ |
110.4 |
$ |
31.3 |
||||
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
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 nine months ended
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 Please refer to our discussion and definitions of Non-GAAP financial measures, including Non-GAAP Constant Currency |
||||||||||||
|
|
Three Months Ended |
|
|||||||||
|
|
As reported |
|
|
Constant Currency(3) |
|
|
Non-GAAP |
|
|||
Net revenue |
|
$ |
97.1 |
|
|
$ |
(1.5 |
) |
|
$ |
95.6 |
|
Cost of goods sold |
|
|
59.1 |
|
|
|
(0.9 |
) |
|
|
58.2 |
|
Gross profit |
|
|
38.0 |
|
|
|
(0.6 |
) |
|
|
37.4 |
|
Selling, general and administrative expenses |
|
|
27.1 |
|
|
|
(0.3 |
) |
|
|
26.8 |
|
Depreciation and amortization expense |
|
|
8.7 |
|
|
|
- |
|
|
|
8.7 |
|
Other operating income, net |
|
|
(0.1 |
) |
|
|
- |
|
|
|
(0.1 |
) |
Income from operations |
|
|
2.3 |
|
|
|
(0.3 |
) |
|
|
2.0 |
|
Interest expense |
|
|
5.5 |
|
|
|
- |
|
|
|
5.5 |
|
Foreign currency gain |
|
|
(1.5 |
) |
|
|
(0.3 |
) |
|
|
(1.8 |
) |
Loss before income tax benefit |
|
|
(1.7 |
) |
|
|
- |
|
|
|
(1.7 |
) |
Income tax benefit |
|
|
(0.3 |
) |
|
|
- |
|
|
|
(0.3 |
) |
Net loss |
|
$ |
(1.4 |
) |
|
$ |
- |
|
|
|
(1.4 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Constant currency-effected add(1): |
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization expense - COS |
|
|
|
|
|
|
|
|
9.6 |
|
||
Depreciation and amortization expense - D&A |
|
|
|
|
|
|
|
|
8.7 |
|
||
Interest expense |
|
|
|
|
|
|
|
|
5.5 |
|
||
Income tax benefit |
|
|
|
|
|
|
|
|
(0.3 |
) |
||
Constant currency EBITDA |
|
|
|
|
|
|
|
|
22.1 |
|
||
|
|
|
|
|
|
|
|
|
|
|||
Constant currency-effected adjustments(2): |
|
|
|
|
|
|
|
|
|
|||
Unrealized gain translation |
|
|
|
|
|
|
|
|
(1.5 |
) |
||
Non-cash impairment losses |
|
|
|
|
|
|
|
|
0.3 |
|
||
M&A, restructuring, severance |
|
|
|
|
|
|
|
|
0.1 |
|
||
Amortization of restricted stock units |
|
|
|
|
|
|
|
|
6.9 |
|
||
Other non-core and non-cash adjustments |
|
|
|
|
|
|
|
|
0.6 |
|
||
Constant currency AEBITDA |
|
|
|
|
|
|
|
$ |
28.5 |
|||
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 Please refer to our discussion and definitions of Non-GAAP financial measures, including Non-GAAP Constant Currency |
||||||||||||
|
|
Three Months Ended |
|
|||||||||
|
|
As reported |
|
|
Constant Currency(3) |
|
|
Non-GAAP |
|
|||
Net revenue |
|
$ |
76.8 |
|
|
$ |
(0.7 |
) |
|
$ |
76.1 |
|
Cost of goods sold |
|
|
46.6 |
|
|
|
(0.4 |
) |
|
|
46.2 |
|
Gross profit |
|
|
30.2 |
|
|
|
(0.3 |
) |
|
|
29.9 |
|
Selling, general and administrative expenses |
|
|
16.6 |
|
|
|
(0.1 |
) |
|
|
16.5 |
|
Transaction costs |
|
|
1.2 |
|
|
|
- |
|
|
|
1.2 |
|
Depreciation and amortization expense |
|
|
7.7 |
|
|
|
- |
|
|
|
7.7 |
|
Other operating expense, net |
|
|
1.9 |
|
|
|
(0.1 |
) |
|
|
1.8 |
|
Income from operations |
|
|
2.8 |
|
|
|
(0.1 |
) |
|
|
2.7 |
|
Interest expense |
|
|
4.9 |
|
|
|
- |
|
|
|
4.9 |
|
Foreign currency loss |
|
|
3.2 |
|
|
|
- |
|
|
|
3.2 |
|
Loss before income tax expense |
|
|
(5.3 |
) |
|
|
(0.1 |
) |
|
|
(5.4 |
) |
Income tax expense |
|
|
0.8 |
|
|
|
- |
|
|
|
0.8 |
|
Net loss |
|
$ |
(6.1 |
) |
|
$ |
(0.1 |
) |
|
|
(6.2 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Constant currency-effected add(1): |
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization expense - COS |
|
|
|
|
|
|
|
|
8.0 |
|
||
Depreciation and amortization expense - D&A |
|
|
|
|
|
|
|
|
7.7 |
|
||
Interest expense |
|
|
|
|
|
|
|
|
4.9 |
|
||
Income tax expense |
|
|
|
|
|
|
|
|
0.8 |
|
||
Constant currency EBITDA |
|
|
|
|
|
|
|
|
15.2 |
|
||
|
|
|
|
|
|
|
|
|
|
|||
Constant currency-effected adjustments(2): |
|
|
|
|
|
|
|
|
|
|||
Unrealized loss translation |
|
|
|
|
|
|
|
|
3.3 |
|
||
Constant currency |
|
|
|
|
|
|
|
|
(0.2 |
) |
||
Non-cash impairment losses |
|
|
|
|
|
|
|
|
0.7 |
|
||
M&A, restructuring, severance |
|
|
|
|
|
|
|
|
1.2 |
|
||
Amortization of restricted stock units |
|
|
|
|
|
|
|
|
1.7 |
|
||
Warrant Exchange costs |
|
|
|
|
|
|
|
|
1.2 |
|
||
Other non-core and non-cash adjustments |
|
|
|
|
|
|
|
|
0.6 |
|
||
Constant currency AEBITDA |
|
|
|
|
|
|
|
$ |
23.7 |
|||
Non-GAAP Financial Data Comparison of Non-GAAP Constant Currency Statement of Income Data, EBITDA, and AEBITDA
For the Three Months Ended Please refer to our discussion and definitions of Non-GAAP financial measures, including Non-GAAP Constant Currency |
||||||||||||||||
|
|
Non-GAAP Constant Currency |
|
|||||||||||||
|
|
Three Months Ended |
|
|
|
|
|
|
|
|||||||
|
|
2021 |
|
|
2020 |
|
|
$ Change |
|
|
% Change |
|
||||
Net revenue |
|
$ |
95.6 |
|
|
$ |
76.1 |
|
|
$ |
19.5 |
|
|
|
25.6 |
|
Cost of goods sold |
|
|
58.2 |
|
|
|
46.2 |
|
|
|
12.0 |
|
|
|
26.0 |
|
Gross profit |
|
|
37.4 |
|
|
|
29.9 |
|
|
|
7.5 |
|
|
|
25.1 |
|
Selling, general and administrative expenses |
|
|
26.8 |
|
|
|
16.5 |
|
|
|
10.3 |
|
|
|
62.4 |
|
Transaction costs |
|
|
- |
|
|
|
1.2 |
|
|
|
(1.2 |
) |
|
|
(100.0 |
) |
Depreciation and amortization expense |
|
|
8.7 |
|
|
|
7.7 |
|
|
|
1.0 |
|
|
|
13.0 |
|
Other operating expense (income), net |
|
|
(0.1 |
) |
|
|
1.8 |
|
|
|
(1.9 |
) |
|
|
(105.6 |
) |
Income (loss) from operations |
|
|
2.0 |
|
|
|
2.7 |
|
|
|
(0.7 |
) |
|
|
(25.9 |
) |
Interest expense |
|
|
5.5 |
|
|
|
4.9 |
|
|
|
0.6 |
|
|
|
12.2 |
|
Foreign currency (gain) loss |
|
|
(1.8 |
) |
|
|
3.2 |
|
|
|
(5.0 |
) |
|
|
(156.3 |
) |
Loss before income tax expense (benefit) |
|
|
(1.7 |
) |
|
|
(5.4 |
) |
|
|
3.7 |
|
|
|
(68.5 |
) |
Income tax expense (benefit) |
|
|
(0.3 |
) |
|
|
0.8 |
|
|
|
(1.1 |
) |
|
|
(137.5 |
) |
Net loss |
|
|
(1.4 |
) |
|
|
(6.2 |
) |
|
|
4.8 |
|
|
|
(77.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Constant currency-effected add(1): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization expense - COS |
|
|
9.6 |
|
|
|
8.0 |
|
|
|
1.6 |
|
|
|
20.0 |
|
Depreciation and amortization expense - D&A |
|
|
8.7 |
|
|
|
7.7 |
|
|
|
1.0 |
|
|
|
13.0 |
|
Interest expense |
|
|
5.5 |
|
|
|
4.9 |
|
|
|
0.6 |
|
|
|
12.2 |
|
Income tax expense (benefit) |
|
|
(0.3 |
) |
|
|
0.8 |
|
|
|
(1.1 |
) |
|
|
(137.5 |
) |
Constant currency EBITDA |
|
|
22.1 |
|
|
|
15.2 |
|
|
|
6.9 |
|
|
|
45.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Constant currency-effected adjustments(2): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized (gain) loss translation |
|
|
(1.5 |
) |
|
|
3.3 |
|
|
|
(4.8 |
) |
|
|
(145.5 |
) |
Constant currency |
|
|
- |
|
|
|
(0.2 |
) |
|
|
0.2 |
|
|
|
(100.0 |
) |
Non-cash impairment losses |
|
|
0.3 |
|
|
|
0.7 |
|
|
|
(0.4 |
) |
|
|
(57.1 |
) |
M&A, restructuring, severance |
|
|
0.1 |
|
|
|
1.2 |
|
|
|
(1.1 |
) |
|
|
(91.7 |
) |
Amortization of restricted stock units |
|
|
6.9 |
|
|
|
1.7 |
|
|
|
5.2 |
|
|
|
305.9 |
|
Warrant Exchange costs |
|
|
- |
|
|
|
1.2 |
|
|
|
(1.2 |
) |
|
|
(100.0 |
) |
Other non-core and non-cash adjustments |
|
|
0.6 |
|
|
|
0.6 |
|
|
|
- |
|
|
|
- |
|
Constant currency AEBITDA |
|
$ |
28.5 |
|
|
$ |
23.7 |
|
|
$ |
4.8 |
|
|
|
20.3 |
|
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 Nine Months Ended Please refer to our discussion and definitions of Non-GAAP financial measures, including Non-GAAP Constant Currency |
||||||||||||
|
|
Nine Months Ended |
|
|||||||||
|
|
As reported |
|
|
Constant Currency(3) |
|
|
Non-GAAP |
|
|||
Net revenue |
|
$ |
274.8 |
|
|
$ |
(6.7 |
) |
|
$ |
268.1 |
|
Cost of goods sold |
|
|
164.8 |
|
|
|
(3.9 |
) |
|
|
160.9 |
|
Gross profit |
|
|
110.0 |
|
|
|
(2.8 |
) |
|
|
107.2 |
|
Selling, general and administrative expenses |
|
|
70.8 |
|
|
|
(1.2 |
) |
|
|
69.6 |
|
Depreciation and amortization expense |
|
|
26.1 |
|
|
|
(0.3 |
) |
|
|
25.8 |
|
Other operating expense, net |
|
|
2.0 |
|
|
|
- |
|
|
|
2.0 |
|
Income from operations |
|
|
11.1 |
|
|
|
(1.3 |
) |
|
|
9.8 |
|
Interest expense |
|
|
17.1 |
|
|
|
(0.1 |
) |
|
|
17.0 |
|
Foreign currency gain |
|
|
(3.9 |
) |
|
|
(1.0 |
) |
|
|
(4.9 |
) |
Loss before income tax benefit |
|
|
(2.1 |
) |
|
|
(0.2 |
) |
|
|
(2.3 |
) |
Income tax benefit |
|
|
(1.8 |
) |
|
|
(0.1 |
) |
|
|
(1.9 |
) |
Net loss |
|
$ |
(0.3 |
) |
|
$ |
(0.1 |
) |
|
|
(0.4 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Constant currency-effected add(1): |
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization expense - COS |
|
|
|
|
|
|
|
|
27.7 |
|
||
Depreciation and amortization expense - D&A |
|
|
|
|
|
|
|
|
25.8 |
|
||
Interest expense |
|
|
|
|
|
|
|
|
17.0 |
|
||
Income tax benefit |
|
|
|
|
|
|
|
|
(1.9 |
) |
||
Constant currency EBITDA |
|
|
|
|
|
|
|
|
68.2 |
|
||
|
|
|
|
|
|
|
|
|
|
|||
Constant currency-effected adjustments(2): |
|
|
|
|
|
|
|
|
|
|||
Unrealized gain translation |
|
|
|
|
|
|
|
|
(4.1 |
) |
||
Non-cash impairment losses |
|
|
|
|
|
|
|
|
1.0 |
|
||
M&A, restructuring, severance |
|
|
|
|
|
|
|
|
0.5 |
|
||
Amortization of restricted stock units |
|
|
|
|
|
|
|
|
14.3 |
|
||
Other non-core and non-cash adjustments |
|
|
|
|
|
|
|
|
2.2 |
|
||
Constant currency AEBITDA |
|
|
|
|
|
|
|
$ |
82.1 |
|
||
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 Nine Months Ended Please refer to our discussion and definitions of Non-GAAP financial measures, including Non-GAAP Constant Currency |
||||||||||||
|
|
Nine Months Ended |
|
|||||||||
|
|
As reported |
|
|
Constant Currency(3) |
|
|
Non-GAAP |
|
|||
Net revenue |
|
$ |
206.3 |
|
|
$ |
2.4 |
|
|
$ |
208.7 |
|
Cost of goods sold |
|
|
122.3 |
|
|
|
1.4 |
|
|
|
123.7 |
|
Gross profit |
|
|
84.0 |
|
|
|
1.0 |
|
|
|
85.0 |
|
Selling, general and administrative expenses |
|
|
56.9 |
|
|
|
0.6 |
|
|
|
57.5 |
|
Transaction costs |
|
|
1.2 |
|
|
|
- |
|
|
|
1.2 |
|
Depreciation and amortization expense |
|
|
22.9 |
|
|
|
0.2 |
|
|
|
23.1 |
|
Other operating expense, net |
|
|
2.9 |
|
|
|
0.3 |
|
|
|
3.2 |
|
Income from operations |
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
- |
|
Interest expense |
|
|
16.6 |
|
|
|
- |
|
|
|
16.6 |
|
Foreign currency loss |
|
|
3.1 |
|
|
|
- |
|
|
|
3.1 |
|
Loss before income tax benefit |
|
|
(19.6 |
) |
|
|
(0.1 |
) |
|
|
(19.7 |
) |
Income tax benefit |
|
|
(1.4 |
) |
|
|
0.1 |
|
|
|
(1.3 |
) |
Net loss |
|
$ |
(18.2 |
) |
|
$ |
(0.2 |
) |
|
|
(18.4 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Constant currency-effected add(1): |
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization expense - COS |
|
|
|
|
|
|
|
|
22.4 |
|
||
Depreciation and amortization expense - D&A |
|
|
|
|
|
|
|
|
23.0 |
|
||
Interest expense |
|
|
|
|
|
|
|
|
16.6 |
|
||
Income tax benefit |
|
|
|
|
|
|
|
|
(1.4 |
) |
||
Constant currency EBITDA |
|
|
|
|
|
|
|
|
42.2 |
|
||
|
|
|
|
|
|
|
|
|
|
|||
Constant currency-effected adjustments(2): |
|
|
|
|
|
|
|
|
|
|||
Unrealized loss translation |
|
|
|
|
|
|
|
|
3.1 |
|
||
Constant currency |
|
|
|
|
|
|
|
|
0.4 |
|
||
Non-cash impairment losses |
|
|
|
|
|
|
|
|
1.5 |
|
||
M&A, restructuring, severance |
|
|
|
|
|
|
|
|
4.8 |
|
||
Amortization of restricted stock units |
|
|
|
|
|
|
|
|
5.9 |
|
||
Warrant Exchange costs |
|
|
|
|
|
|
|
|
1.2 |
|
||
Other non-core and non-cash adjustments |
|
|
|
|
|
|
|
|
1.7 |
|
||
Constant currency AEBITDA |
|
|
|
|
|
|
|
$ |
60.8 |
|
||
Non-GAAP Financial Data Comparison of Non-GAAP Constant Currency Statement of Income Data, EBITDA, and AEBITDA
For the Nine Months Ended Please refer to our discussion and definitions of Non-GAAP financial measures, including Non-GAAP Constant Currency |
||||||||||||||||
|
|
Non-GAAP Constant Currency |
|
|||||||||||||
|
|
Nine Months Ended |
|
|
|
|
|
|
|
|||||||
|
|
2021 |
|
|
2020 |
|
|
$ Change |
|
|
% Change |
|
||||
Net revenue |
|
$ |
268.1 |
|
|
$ |
208.7 |
|
|
$ |
59.4 |
|
|
|
28.5 |
|
Cost of goods sold |
|
|
160.9 |
|
|
|
123.7 |
|
|
|
37.2 |
|
|
|
30.1 |
|
Gross profit |
|
|
107.2 |
|
|
|
85.0 |
|
|
|
22.2 |
|
|
|
26.1 |
|
Selling, general and administrative expenses |
|
|
69.6 |
|
|
|
57.5 |
|
|
|
12.1 |
|
|
|
21.0 |
|
Transaction costs |
|
|
- |
|
|
|
1.2 |
|
|
|
(1.2 |
) |
|
|
(100.0 |
) |
Depreciation and amortization expense |
|
|
25.8 |
|
|
|
23.1 |
|
|
|
2.7 |
|
|
|
11.7 |
|
Other operating expense, net |
|
|
2.0 |
|
|
|
3.2 |
|
|
|
(1.2 |
) |
|
|
(37.5 |
) |
Income from operations |
|
|
9.8 |
|
|
|
- |
|
|
|
9.8 |
|
|
― |
|
|
Interest expense |
|
|
17.0 |
|
|
|
16.6 |
|
|
|
0.4 |
|
|
|
2.4 |
|
Foreign currency (gain) loss |
|
|
(4.9 |
) |
|
|
3.1 |
|
|
|
(8.0 |
) |
|
|
(258.1 |
) |
Loss before income tax benefit |
|
|
(2.3 |
) |
|
|
(19.7 |
) |
|
|
17.4 |
|
|
|
(88.3 |
) |
Income tax benefit |
|
|
(1.9 |
) |
|
|
(1.3 |
) |
|
|
(0.6 |
) |
|
|
46.2 |
|
Net loss |
|
|
(0.4 |
) |
|
|
(18.4 |
) |
|
|
18.0 |
|
|
|
(97.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Constant currency-effected add(1): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization expense - COS |
|
|
27.7 |
|
|
|
22.4 |
|
|
|
5.3 |
|
|
|
23.7 |
|
Depreciation and amortization expense - D&A |
|
|
25.8 |
|
|
|
23.0 |
|
|
|
2.8 |
|
|
|
12.2 |
|
Interest expense |
|
|
17.0 |
|
|
|
16.6 |
|
|
|
0.4 |
|
|
|
2.4 |
|
Income tax benefit |
|
|
(1.9 |
) |
|
|
(1.4 |
) |
|
|
(0.5 |
) |
|
|
35.7 |
|
Constant currency-effected EBITDA |
|
|
68.2 |
|
|
|
42.2 |
|
|
|
26.0 |
|
|
|
61.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Constant currency-effected adjustments(2): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized (gain) loss translation |
|
|
(4.1 |
) |
|
|
3.1 |
|
|
|
(7.2 |
) |
|
|
(232.3 |
) |
Constant currency |
|
|
- |
|
|
|
0.4 |
|
|
|
(0.4 |
) |
|
|
(100.0 |
) |
Non-cash impairment losses |
|
|
1.0 |
|
|
|
1.5 |
|
|
|
(0.5 |
) |
|
|
(33.3 |
) |
M&A, restructuring, severance |
|
|
0.5 |
|
|
|
4.8 |
|
|
|
(4.3 |
) |
|
|
(89.6 |
) |
Amortization of restricted stock units |
|
|
14.3 |
|
|
|
5.9 |
|
|
|
8.4 |
|
|
|
142.4 |
|
Warrant Exchange costs |
|
|
- |
|
|
|
1.2 |
|
|
|
(1.2 |
) |
|
|
(100.0 |
) |
Other non-core and non-cash adjustments |
|
|
2.2 |
|
|
|
1.7 |
|
|
|
0.5 |
|
|
|
29.4 |
|
Constant currency-effected AEBITDA |
|
$ |
82.1 |
|
|
$ |
60.8 |
|
|
$ |
21.3 |
|
|
|
35.0 |
|
|
|
|
(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 |
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Net revenue |
|
$ |
(1.5 |
) |
|
$ |
(0.7 |
) |
|
$ |
(6.7 |
) |
|
$ |
2.4 |
|
Cost of goods sold |
|
|
(0.9 |
) |
|
|
(0.4 |
) |
|
|
(3.9 |
) |
|
|
1.4 |
|
Gross profit |
|
|
(0.6 |
) |
|
|
(0.3 |
) |
|
|
(2.8 |
) |
|
|
1.0 |
|
Selling, general and administrative expenses |
|
|
(0.3 |
) |
|
|
(0.1 |
) |
|
|
(1.2 |
) |
|
|
0.6 |
|
Depreciation and amortization expense |
|
|
- |
|
|
|
- |
|
|
|
(0.3 |
) |
|
|
0.2 |
|
Other operating expense, net |
|
|
- |
|
|
|
(0.1 |
) |
|
|
- |
|
|
|
0.3 |
|
Loss from operations |
|
|
(0.3 |
) |
|
|
(0.1 |
) |
|
|
(1.3 |
) |
|
|
(0.1 |
) |
Interest expense |
|
|
- |
|
|
|
- |
|
|
|
(0.1 |
) |
|
|
- |
|
Foreign currency gain |
|
|
(0.3 |
) |
|
|
- |
|
|
|
(1.0 |
) |
|
|
- |
|
Loss before income tax expense (benefit) |
|
|
- |
|
|
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
(0.1 |
) |
Income tax expense (benefit) |
|
|
- |
|
|
|
- |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
Net loss |
|
$ |
- |
|
|
$ |
(0.1 |
) |
|
$ |
(0.1 |
) |
|
$ |
(0.2 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20211028005400/en/
drew.bill@ranpak.com
(212) 763-0939
Contact for Investors:
IR@Ranpak.com
Source:
FAQ
What was Ranpak's net revenue for Q3 2021?
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What were the key growth drivers for Ranpak in Q3 2021?
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