Revenue Performance - Ranpak generated net revenue of $263.9 million for the nine months ended September 30, 2024, compared to $245.9 million for the same period in 2023, representing a year-over-year increase of approximately 7.9%[98] - Net revenue for Q3 2024 was $92.2 million, an increase of $9.4 million or 11.4% compared to $82.8 million in Q3 2023[115] - Net revenue for the nine months ended September 30, 2024, was $263.9 million, an increase of $18.0 million or 7.3% compared to $245.9 million in the same period of 2023[132] - North America net revenue for Q3 2024 was $40.3 million, an increase of $5.4 million or 15.5% from $34.9 million in Q3 2023[116] - Europe/Asia net revenue for Q3 2024 was $51.9 million, an increase of $4.0 million or 8.4% from $47.9 million in Q3 2023[117] - North America net revenue for the nine months ended September 30, 2024, was $109.9 million, an increase of $11.7 million or 11.9% from $98.2 million in 2023[133] - Europe/Asia net revenue for the nine months ended September 30, 2024, was $154.0 million, an increase of $6.3 million or 4.3% from $147.7 million in 2023[134] Cost and Expenses - Cost of goods sold for Q3 2024 totaled $57.8 million, an increase of $6.5 million or 12.7% from $51.3 million in Q3 2023[118] - Cost of goods sold for the nine months ended September 30, 2024, totaled $165.5 million, an increase of $8.8 million or 5.6% from $156.7 million in 2023[135] - Selling, general and administrative expenses (SG&A) for Q3 2024 were $28.8 million, up $7.9 million or 37.8% from $20.9 million in Q3 2023[119] - Selling, general and administrative expenses (SG&A) increased by $19.6 million or 30.4% to $84.0 million for the nine months ended September 30, 2024, compared to $64.4 million in 2023[136] Profitability and Loss - Net loss for Q3 2024 increased to $8.1 million from a net loss of $3.3 million in Q3 2023, a change of $4.8 million[126] - Net loss for the nine months ended September 30, 2024, decreased to $10.7 million from a net loss of $17.8 million in 2023, a change of $7.1 million[143] - EBITDA for Q3 2024 was $12.6 million, a decrease of $6.2 million or 33.0% compared to $18.8 million in Q3 2023[127] - EBITDA for the nine months ended September 30, 2024, was $57.3 million, an increase of $10.2 million or 21.7% compared to $47.1 million in 2023[144] - AEBITDA (Constant Currency) for Q3 2024 was $20.5 million, an increase of $2.5 million or 13.9% year over year[127] - AEBITDA for the nine months ended September 30, 2024, totaled $61.1 million, representing an increase of $9.0 million or 17.3% from $52.1 million in 2023[144] Cash Flow and Debt - Cash and cash equivalents as of September 30, 2024, were $69.5 million, up from $62.0 million as of December 31, 2023[151] - Total debt as of September 30, 2024, was $408.2 million, with $2.7 million classified as short-term[151] - Net cash provided by operating activities was $34.9 million for the nine months ended September 30, 2024, compared to $23.0 million for the same period in 2023, largely due to a patent litigation settlement of $16.1 million[155] - Net cash used in investing activities was $24.7 million for the nine months ended September 30, 2024, which included an additional investment of $4.8 million in Pickle, while cash inflows from the sale of two patents amounted to $5.4 million[156] - Net cash used in financing activities was $2.3 million for the nine months ended September 30, 2024, reflecting debt repayments and payments on finance lease liabilities[157] Market and Operational Insights - Approximately 30% of Ranpak's net revenue in 2023 was derived from e-commerce sectors, which typically experience seasonal sales peaks during the fourth quarter[105] - The company operates manufacturing facilities in the United States and Europe, with 59% of its 2023 net revenue generated outside the United States[97] - The company expects continued pressure on gross margins in the medium term due to rising input costs and competitive market conditions[101] - The cost of paper, a key component of goods sold, is subject to significant fluctuations, impacting gross margins and overall operating results[100] - Currency fluctuations affect the comparability of results, with the company using a cross-currency swap to hedge some exposure[104] - The company expects capital expenditures to increase as it continues to grow its business and expand its manufacturing footprint[150] Other Financial Information - Other non-operating income for Q3 2024 was $3.1 million, compared to $0.1 million in Q3 2023, primarily due to an unrealized gain on investment[124] - Other non-operating income for the nine months ended September 30, 2024, was $21.0 million, primarily from $16.1 million in litigation proceeds and a $5.4 million gain on the sale of patents[141] - Interest expense for Q3 2024 was $9.3 million, an increase of $2.5 million or 36.8% from $6.8 million in Q3 2023[122] - Interest expense for the nine months ended September 30, 2024, was $20.8 million, an increase of $2.4 million or 13.0% from $18.4 million in 2023[139] - The interest rate for the First Lien Dollar Term Facility as of September 30, 2024, was 9.05%, down from 9.44% as of December 31, 2023[151] Impairment and Off-Balance Sheet Arrangements - As of September 30, 2024, there were no indicators of impairment for goodwill or long-lived assets[163] - The company has not engaged in any off-balance sheet arrangements as of September 30, 2024[159] - There have been no significant changes to the company's contractual obligations outside the ordinary course of business[158]

Financial Performance - Net revenue for Q3 2024 rose by 11.4% year over year to $92.2 million, with a constant currency increase of 10.5% to $94.7 million[1][3] - Net loss for Q3 2024 was $8.1 million, compared to a net loss of $3.3 million in the same period last year[1][2] - Constant Currency Adjusted EBITDA (AEBITDA) for Q3 2024 was $20.5 million, reflecting a 13.9% increase year over year[1][2] - North America net revenue for Q3 2024 was $40.3 million, a 15.5% increase from $34.9 million in Q3 2023[4] - Europe/Asia net revenue for Q3 2024 was $51.9 million, an 8.4% increase from $47.9 million in Q3 2023[5] - Year-to-date 2024 net revenue increased by 7.3%, with a net loss of $10.7 million compared to a net loss of $17.8 million for the prior year period[6] - Net revenue for the nine months ended September 30, 2024, was $263.9 million, compared to $245.9 million for the same period in 2023, reflecting a 7.3% growth[15] - Net loss for the nine months ended September 30, 2024, was $10.7 million, an improvement from a net loss of $17.8 million for the same period in 2023[17] Cash and Assets - The company ended Q3 2024 with a cash balance of $69.5 million and no borrowings on its $45 million Revolving Credit Facility[6] - Total current assets increased to $153.0 million as of September 30, 2024, up from $124.9 million at the end of 2023, marking a 22.5% increase[16] - Cash and cash equivalents increased to $69.5 million as of September 30, 2024, compared to $62.0 million at the end of 2023, a growth of 24.2%[16] - Cash and cash equivalents at the end of the period were $69.5 million, up from $52.1 million at the end of September 30, 2023, indicating a 33.4% increase[17] Expenses and Losses - Selling, general and administrative expenses rose to $28.8 million in Q3 2024, a significant increase of 37.8% from $20.9 million in Q3 2023[25] - The company reported a loss from operations of $14.2 million for the nine months ended September 30, 2024, compared to a loss of $2.9 million in the same period in 2023, marking a 389.7% increase in losses[27] - Interest expense increased to $9.3 million in Q3 2024, up 36.8% from $6.8 million in Q3 2023[25] Profitability Metrics - Gross profit for Q3 2024 was $31.5 million, resulting in a gross margin of 38.0%, compared to a gross margin of 36.3% in Q3 2023[15] - Gross profit for Q3 2024 reached $34.4 million, reflecting a 9.2% increase from $31.5 million in Q3 2023[25] - Constant Currency AEBITDA for Q3 2024 was $20.5 million, an increase of 13.9% from $18.0 million in Q3 2023[25] Debt and Liabilities - The net debt to LTM Adjusted EBITDA ratio on a constant currency basis reached 4.0x, showing progress towards the goal of 3.0x or below[2][6] - Total liabilities rose to $569.0 million as of September 30, 2024, compared to $550.7 million at the end of 2023, indicating a 3.9% increase[16] - The company’s accumulated deficit increased to $(134.5) million as of September 30, 2024, from $(123.8) million at the end of 2023[16] - The company’s total shareholders' equity decreased to $564.3 million as of September 30, 2024, down from $572.0 million at the end of 2023[16] Future Outlook - The company anticipates that new product rollouts and talent acquisition will positively impact results in 2025 and beyond[2]

Core Insights - Lakeside Holding Limited has launched a new Pick & Pack Fulfillment service aimed at enhancing logistics efficiency for a major customer in China [1][5] - The service integrates real-time inventory management and order processing to streamline operations [2][4] Service Details - The Pick & Pack Fulfillment service includes inventory management, order processing, and a multi-hub service available at key locations such as Chicago O'Hare International Airport, Dallas-Fort Worth International Airport, and Los Angeles International Airport [3] - The service has already commenced at the Chicago O'Hare location, with plans to expand to Dallas-Fort Worth and Los Angeles shortly [3] Strategic Importance - This new service offering is designed to optimize the fulfillment process, reduce lead times, and enhance customer experience [4] - The CEO of Lakeside emphasized that this initiative deepens the partnership with the customer and leverages advanced infrastructure and technology to improve operational efficiency [5]

Financial Data and Key Metrics Changes - The company reported a 5.9% year-over-year increase in net revenue for Q2 2024 on a constant currency basis, driven by an 8.8% increase in volumes, offset somewhat by lower pricing [11] - Adjusted EBITDA increased 7.4% year-over-year to $20.4 million, resulting in a 22.8% margin [14] - Gross profit increased 5.4% on a constant currency basis, with a margin of 36.8% compared to 37% in the prior year [13] Business Line Data and Key Metrics Changes - North American net revenue increased 17.1% year-over-year, with volumes up approximately 20%, primarily driven by e-commerce related to strategic account activity [12] - Cushioning Systems experienced a 0.3% decline, while void-fill installed systems increased by 0.7% [11] - In Europe and Asia Pacific, net revenue on a constant currency basis was down 1% year-over-year, despite a volume growth of 3.2% [12] Market Data and Key Metrics Changes - North America saw a 17% increase in sales, driven by improved void-fill activity, while Europe and Asia Pacific had less robust activity with volumes increasing slightly over 3% [6][8] - Strength was noted in Brazil, France, and the Netherlands, while Poland and Germany remained weaker [9] - Japan was highlighted as a significant growth driver in Asia Pacific [9] Company Strategy and Development Direction - The company is focused on winning new large accounts and improving efficiency, which contributed to strong results in North America [6] - The transition from plastic to paper is expected to drive significant volume growth, with public validation from key players in e-commerce [7] - The company aims to scale its Asia Pacific operations, with the Malaysia plant going live in August 2024, which is expected to enhance local production capabilities and reduce logistics costs [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall trajectory of the business, anticipating continued volume growth despite a challenging economic backdrop [17] - The company expects to see a normalization in discretionary goods purchases and industrial activity, which could lead to additional EBITDA growth [21] - Management is focused on maintaining a gross margin profile of 37% to 38% for the year, despite anticipated input cost pressures [9][10] Other Important Information - The company completed Q2 with a strong liquidity position, including a $65 million cash balance and no drawings on its revolving credit facility [15] - The company is committed to reducing G&A expenses by more than $5 million by the end of the year [20] Q&A Session Summary Question: Pricing headwinds in Europe - Management confirmed that the pricing headwinds of roughly 2% in Europe were in line with expectations and will start to ease in August [23] Question: New wins versus core markets in North America - The majority of the 20% volume increase in North America was attributed to new strategic accounts, with expectations for continued growth in the second half of the year [24][25] Question: Decline in cushioning business - The decline in the cushioning business was attributed to a slowdown in industrial activity, particularly in Europe, but management remains optimistic about maintaining market share [26][27] Question: Revenue growth and EBITDA expectations - Management's view on revenue growth and EBITDA for the year has not changed, with increased confidence due to robust activity with larger accounts [28][29] Question: Automation business growth - Management remains confident in achieving over 50% growth in the automation business for the year, supported by strong bookings activity [39]

Financial Performance - The company generated net revenue of $171.7 million for the six months ended June 30, 2024, compared to $163.1 million for the same period in 2023, representing a year-over-year increase of approximately 4.0%[77] - Net revenue for Q2 2024 was $86.4 million, an increase of $4.5 million or 5.5% from $81.9 million in Q2 2023[90] - Net revenue for the six months ended June 30, 2024, was $171.7 million, an increase of $8.6 million or 5.3% compared to $163.1 million in the same period of 2023[104] - Constant currency net revenue was $178.1 million for the six months ended June 30, 2024, a 5.1% increase from $169.4 million in the same period of 2023[104] - North America net revenue for Q2 2024 was $37.7 million, up $5.5 million or 17.1% from $32.2 million in Q2 2023[91] - North America net revenue increased by $6.3 million or 10.0% to $69.6 million, while Europe/Asia net revenue rose by $2.3 million or 2.3% to $102.1 million[105] Profitability Metrics - Gross profit for Q2 2024 was $31.7 million, up $1.5 million or 5.0% compared to $30.2 million in Q2 2023[88] - EBITDA for Q2 2024 was $29.3 million, an increase of $8.5 million or 40.9% from $20.8 million in Q2 2023[101] - EBITDA for the six months ended June 30, 2024, was $44.7 million, an increase of $16.4 million or 58.0% compared to $28.3 million in the same period of 2023[115] - Net income for Q2 2024 was $5.5 million, an increase of $7.6 million from a net loss of $2.1 million in Q2 2023[100] - Net loss decreased to $2.6 million for the six months ended June 30, 2024, from a net loss of $14.5 million in the same period of 2023, a change of $11.9 million[114] Expenses and Costs - SG&A expenses increased to $27.3 million, a rise of $11.0 million or 67.5% from $16.3 million in Q2 2023, primarily due to increased stock-based compensation[93] - Selling, general and administrative expenses increased by $11.7 million or 26.9% to $55.2 million, primarily due to a rise in stock-based compensation[107] - Cost of goods sold for Q2 2024 was $54.7 million, an increase of $3.0 million or 5.8% from $51.7 million in Q2 2023[92] - Cost of goods sold for the six months ended June 30, 2024, totaled $107.7 million, an increase of $2.3 million or 2.2%, with a decrease in cost of goods sold as a percentage of net sales to 62.7% from 64.6%[106] Cash Flow and Liquidity - Net cash provided by operating activities was $24.8 million for the six months ended June 30, 2024, compared to $16.6 million for the same period in 2023, reflecting a significant improvement[126] - Net cash used in investing activities was $19.1 million for the six months ended June 30, 2024, which included a $4.8 million investment in Pickle, compared to $25.2 million in the same period of 2023[127] - Net cash used in financing activities was $1.6 million for the six months ended June 30, 2024, up from $0.7 million in the same period of 2023, indicating increased financial obligations[128] - The company had $65.1 million in cash and cash equivalents as of June 30, 2024, up from $62.0 million at the end of 2023[120] - Total debt as of June 30, 2024, was $401.7 million, a slight decrease from $407.4 million at the end of 2023[122] Market and Operational Insights - The installed base of Protective Packaging Solutions (PPS) systems increased to approximately 141.2 thousand as of June 30, 2024, up from 140.7 thousand in the previous year, reflecting a growth of 0.4%[78] - The installed base of cushioning machines slightly decreased by 0.3% from 35.0 thousand in June 2023 to 34.9 thousand in June 2024[78] - Approximately 30% of the company's net revenue in 2023 was derived from e-commerce sectors, indicating a strong seasonal trend with higher sales typically recorded in the fourth quarter[82] - The company operates manufacturing facilities in the United States and Europe, with about 59% of its 2023 net revenue generated outside the United States[76] - The company utilizes three-dimensional computer vision and artificial intelligence technologies through its R Squared Robotics division to enhance packaging and logistics functions[76] Economic and External Factors - The company experienced inflationary pressures in 2024, which adversely impacted end-users and resulted in increased costs, although some of these costs were mitigated by price increases[81] - The company anticipates continued pressure on gross margins in the medium term relative to historical performance due to rising input costs and competitive market conditions[79] - The company is exposed to currency translation risks due to its global operations, which may affect the comparability of financial results between periods[79] - Foreign currency gain for the six months ended June 30, 2024, was $1.3 million, a change of $2.2 million or 244.4% from a loss of $0.9 million in the same period of 2023[111] - Foreign currency loss decreased by $0.6 million or 85.7% to $0.1 million in Q2 2024, reflecting reduced volatility in Euro exchange rates[97] Shareholder and Capital Management - The company has authorized a share repurchase program of up to $50.0 million, with no repurchases executed to date[124] - The company expects capital expenditures to increase as it continues to grow its business and expand its manufacturing footprint[121] - The interest rate for the First Lien Dollar Term Facility was 9.18% as of June 30, 2024, down from 9.44% at the end of 2023[122] - The company has $43.8 million available under its revolving credit facility after accounting for outstanding letters of credit[122] Asset Management - There were no indicators of impairment for goodwill or long-lived assets as of June 30, 2024, suggesting stable asset valuations[133] - The company continues to monitor for indicators of impairment in its reporting units and long-lived assets[133] - The company has various contractual obligations and commercial commitments recorded as liabilities, with no significant changes reported[129] - There were no off-balance sheet arrangements as of June 30, 2024[130]

Financial Performance - Net revenue for Q2 2024 increased by 5.5% year over year to $86.4 million, and by 5.9% on a constant currency basis to $89.6 million[1][5] - Net income for Q2 2024 was $5.5 million, compared to a net loss of $2.1 million in the prior year period[1][3] - Constant Currency Adjusted EBITDA (AEBITDA) for Q2 2024 was $20.4 million, up 7.4% year over year[1][3] - Year-to-date net revenue increased by 5.3%, with a net loss of $2.6 million compared to a net loss of $14.5 million for the prior year period[7] - Net revenue for the six months ended June 30, 2024, was $171.7 million, compared to $163.1 million for the same period in 2023, reflecting a 5.6% growth[15] - Net income for Q2 2024 was $5.5 million, compared to a net loss of $2.1 million in Q2 2023, marking a significant turnaround[15] - For the six months ended June 30, 2024, net revenue was $171.7 million, up 5.3% from $163.1 million in the same period of 2023[24] - The company reported a net loss of $2.6 million for the first half of 2024, which improved to a loss of $1.5 million when adjusted for constant currency[28] Revenue Breakdown - Net revenue in North America for Q2 2024 totaled $37.7 million, a 17.1% increase from $32.2 million in Q2 2023[6] - Net revenue in Europe/Asia for Q2 2024 was $48.7 million, a decrease of 2.0% from $49.7 million in Q2 2023[6] - Paper revenue for Q2 2024 was $67.5 million, up from $63.3 million in Q2 2023, representing a 3.3% increase[15] Profitability Metrics - Gross profit grew by 5.0%, resulting in a gross margin of 36.7%[2] - Gross profit for Q2 2024 was $31.7 million, an increase from $30.2 million in Q2 2023, indicating a 5.0% rise[15] - Gross profit for the first half of 2024 was $64.0 million, a 10.9% increase from $57.7 million in the first half of 2023[24] - EBITDA for Q2 2024 was reported at $29.3 million, marking a 40.9% increase from $20.8 million in Q2 2023[23] Cash and Assets - Cash balance at the end of Q2 2024 was $65.1 million, with no borrowings on the $45 million Revolving Credit Facility[7] - Total current assets increased to $147.5 million as of June 30, 2024, up from $124.9 million at the end of 2023, a growth of 18.0%[16] - Cash and cash equivalents increased to $65.1 million as of June 30, 2024, compared to $62.0 million at the end of 2023, a growth of 5.0%[16] - Total cash and cash equivalents at the end of the period rose to $65.1 million, up from $53.9 million a year earlier[17] Expenses and Liabilities - Selling, general and administrative expenses surged to $27.3 million, a significant increase of 67.5% from $16.3 million in Q2 2023[23] - Total liabilities rose to $553.8 million as of June 30, 2024, compared to $550.7 million at the end of 2023, a slight increase of 0.6%[16] - The accumulated deficit as of June 30, 2024, was $(126.4) million, compared to $(123.8) million at the end of 2023[16] Strategic Initiatives - The company has incurred $1.5 million in M&A, restructuring, and severance costs, indicating ongoing strategic initiatives[28] - Stock-based compensation expense was $2.8 million, a decrease from $6.7 million in the prior year[17] - Stock-based compensation expense for the first half of 2024 was $2.9 million, highlighting the company's investment in talent retention[28] Foreign Currency Impact - The company experienced a significant foreign currency loss of $17.9 million in the first half of 2024, compared to a loss of $0.7 million in the same period of 2023[24] - The company uses constant currency measures to evaluate performance, applying an exchange rate of 1 Euro to 1.15 USD for its Europe/Asia financial data[18]

Core Viewpoint - Ranpak Holdings has shown improvements in revenue and profitability metrics, but its shares are considered relatively expensive compared to peers, leading to a downgrade to a 'hold' rating [6][15][19] Financial Performance - In 2023, Ranpak Holdings reported revenue of $336.3 million, a 3% increase from $326.5 million in 2022 [7] - The company's net loss improved from $41.4 million in 2022 to $27.1 million in 2023, while EBITDA grew from $62.5 million to $73.4 million [11] - For the first quarter of 2024, revenue was $85.3 million, a 5% increase over $81.2 million in the same period of 2023 [17] Product Offerings - Ranpak Holdings provides various packaging systems, including cushioning protective systems (PadPak), void-fill protective systems (FillPak), and wrapping protective systems [7][11] - The PadPak brand accounted for $145.8 million, or 43.4% of total revenue in 2023, showing growth from $140.3 million in 2022 [7] - The company has launched new eco-friendly products, including Geami MV and naturemailer, to meet environmental concerns and expand revenue opportunities [19] Market Position - Ranpak Holdings has a price to operating cash flow ratio of 21.2 and an EV/EBITDA ratio of 13.4, making it the most expensive among its peers [5][13] - Analysts forecast a revenue increase for the second quarter of 2024, with expected sales of $87.7 million, a 7.1% year-over-year increase [13]

The world's largest e-commerce company already sources some of its paper fillers from this little-known company. In fact, there is. Ranpak Holdings (PACK -4.78%) is a company that few investors have ever heard of. But it could find itself as a sudden beneficiary of Amazon's abrupt move. According to certain investor presentations, Amazon is already a customer of Ranpak, although it's unclear how big a customer it is. Craig-Hallum analyst Greg Palm says that Amazon is Ranpak's largest direct customer, accord ...

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Ranpak Holdings Corp. (NYSE:PACK) Q1 2024 Earnings Conference Call May 2, 2024 8:30 AM ET Company Participants Sara Horvath - General Counsel Omar Asali - Chairman & Chief Executive Officer Bill Drew - Chief Financial Officer Conference Call Participants Danny Eggerichs - Craig-Hallum Capital Group Ghansham Panjabi - Baird Adam Samuelson - Goldman Sachs Operator Welcome to the Ranpak Holdings First Quarter 2024 Earnings Call. My name is Benjamin and I'll be your operator for today's call. [Operator Instruct ...