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 ...

Core Viewpoint - Lion Electric has successfully achieved final certification for its LionBattery HD battery pack, which meets stringent automotive industry safety and performance standards [1][6]. Group 1: Product Development - The LionBattery HD is a lithium-ion battery pack designed specifically for heavy-duty trucks, enhancing the company's product offerings in the electric vehicle market [6]. - Lion Electric had previously announced the certification of its medium-duty battery pack, the LionBattery MD, in December 2023, indicating a focus on multiple vehicle classes [2]. Group 2: Manufacturing and Capacity - The LionBattery HD and MD packs are produced at Lion's advanced battery production facility, which has an annual manufacturing capacity of 1.7 gigawatt hours, sufficient to power 5,000 commercial vehicles each year [9]. Group 3: Market Position and Vision - Lion Electric is recognized as a leader in the North American electric transportation sector, manufacturing all-electric commercial trucks and school buses, and is committed to innovation in zero-emission vehicle technology [3][4]. - The company emphasizes the societal and environmental benefits of transitioning to all-electric vehicles, aiming to improve overall quality of life [4].

Financial Data and Key Metrics Changes - The company reported a net revenue increase of 4.4% year-over-year on a constant currency basis, driven by increased volumes and automation contributions, despite slightly lower prices [12][22] - Gross profit increased by 16.7% on a constant currency basis, resulting in a gross margin of 38% compared to 34% in the prior year [13][23] - Adjusted EBITDA rose by 33.8% year-over-year to $20.2 million, implying a margin of 22.8% [13][22] - The liquidity position remained strong with a cash balance of $55 million and no drawings on the revolving credit facility [14][22] Business Line Data and Key Metrics Changes - North American sales increased by 2.6% year-over-year, driven by improved void-fill and automation sales, while cushioning and wrapping saw declines [24][53] - In Europe and APAC, net revenue on a constant currency basis was up 5.4% year-over-year, driven by void-fill, wrapping, and automation, offset by lower cushioning revenue [53] - Machine placements increased by 0.9% year-over-year to approximately 140,800 machines globally, with void-fill systems increasing by 1.3% and wrapping systems by 1.8% [30][22] Market Data and Key Metrics Changes - Activity levels in North America were described as inconsistent, with improvements in consumer confidence noted [6][24] - Southern Europe, particularly Spain and Italy, showed strength, while central Europe, including Poland, Belgium, and Germany, remained weaker [27][70] - The freight market in the U.S. has remained favorable, with a more optimistic tone from market participants [10][22] Company Strategy and Development Direction - The company aims to drive volumes in PPS, scale automation, and generate cash as top priorities for 2024 and into 2025 [17][22] - The transition from plastic to paper is expected to provide solid volume momentum, with a targeted revenue growth of over 50% in automation for the year [17][22] - The company is focused on maintaining gross margins in line with 2023 levels and is closely monitoring the commodity environment for potential pricing adjustments [28][22] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the ramp-up in the plastic-to-paper shift and the potential for improved macroeconomic conditions [7][22] - The company noted that while the overall operating landscape remains uneven, there is a moderate general improvement expected [4][22] - Management highlighted the importance of executing strategic initiatives and gaining efficiencies as the focus shifts to execution following a significant investment cycle [58][70] Other Important Information - The company completed a litigation settlement resulting in cash proceeds of €20 million, which bolstered its cash position [33][80] - Capital expenditures for the quarter were $9.8 million, with a focus on converter placement and investments in the Malaysia production facility [32][22] - The company aims to reduce leverage to below 4 turns by year-end, with a long-term goal of reaching 3 turns or below [15][22] Q&A Session Summary Question: Visibility into strategic accounts and confidence in the second half - Management noted improved visibility into strategic accounts, with many transitioning away from plastic in Q2, leading to increased confidence in the second half [38][61] Question: Momentum across end markets and regional performance - Management observed healthy trends in e-commerce and some improvement in retail shipping capabilities, while industrial activity remains uneven, particularly in Central Europe [42][70] Question: Raw material cost inflation and pricing outlook - Management indicated good visibility on pricing and supply for the first half of the year, with expectations to negotiate favorable terms for the second half [43][71] Question: Update on automation pipeline and order activity - The company reported record bookings in Q1 for automation, with expectations for over 50% growth in the segment for the year [64][86] Question: Installed base trends and future machine placements - Management expects a modest increase in installed base trends as strategic accounts ramp up, with careful management of capital expenditures [81][22]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________. Commission File Number 001-38348 RANPAK HOLDINGS CORP. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) FORM 10-Q (Mark One) ☒ QUARTER ...

Omar Asali, Chairman and Chief Executive Officer, commented, "We are pleased to build off the momentum of the second half of 2023 by beginning 2024 with continued volume growth and profitability improvement as evidenced by strong growth in Gross Profit and Adjusted EBITDA on a constant currency basis. Sales for the quarter increased 5.0% year over year, or 4.4% on a constant currency basis, as volumes increased 5.3% and Automation grew 50%+. In addition to seeing volumes improve vs the prior year for the th ...

Revenue Breakdown - In 2023, the Void-Fill products generated $133.9 million in revenue, accounting for 39.8% of the company's net revenue[21] - The Cushioning products generated $145.8 million in revenue in 2023, representing 43.4% of the company's net revenue[21] - Wrapping products generated $36.0 million in revenue in 2023, which accounted for 10.7% of the company's net revenue[24] - In 2023, approximately 89% of the company's net revenue was derived from sales to distributors, while direct sales to end-users accounted for about 11%[32][33] - Sales to e-commerce end-users accounted for approximately 30% of net revenue in 2023, highlighting the importance of this segment for growth[45] - Sales to industrial manufacturing end-users accounted for approximately 12.6% of net revenue in 2023, driven by demand from growing populations and expanding middle classes[46] - The automotive after-market accounted for approximately 9.0% of net revenue in 2023, with demand driven by the need for replacement parts and customization[47] - Sales to electronics end-users accounted for approximately 7.5% of net revenue in 2023, reflecting the growth in consumer electronics and innovation[48] Installed Base and Facilities - The company has an installed base of approximately 83,700 FillPak units as of December 31, 2023[21] - The company has an installed base of approximately 34,800 PadPak units as of December 31, 2023[21] - The company has an installed base of approximately 22,700 Wrapping units as of December 31, 2023[24] - The company has established a full-service paper conversion facility in Malaysia, expected to be operational in the second half of 2024, to enhance service capabilities in the APAC region[36] Sustainability and Environmental Initiatives - The company achieved a significant increase in FSC-certified paper supply, with approximately 86% of raw paper being certified in 2023, up from 55% in 2022[57] - Approximately two-thirds of the pulp used for manufacturing paper consumables in 2023 was recycled fiber, with 57% sourced from post-consumer waste (PCW) globally[57] - The company has committed to sourcing at least 75% recycled pulp and achieving a 46% reduction in greenhouse gas emissions by 2030[61] - The company was recognized with the 2023 SEAL Business Sustainability Award for its sustainable packaging and automation solutions[56] Growth Strategies - The company aims to continue geographic expansion and penetration of existing markets to drive future growth[20] - The company aims to grow through targeted acquisitions and partnerships, including investments in sustainable packaging solutions like Creapaper[44] - The company is focused on expanding its geographic reach, particularly in growth regions such as Asia-Pacific, South America, and Central and Eastern Europe[36] - The APAC region represented less than 10% of net revenue in 2023, indicating significant growth opportunities[44] - The company plans to pursue targeted growth opportunities in areas such as Cold Chain/thermal packaging and automation[44] Compliance and Regulatory Environment - The company is subject to various federal, state, local, and international environmental-related health and safety laws, which may increase regulatory burden and compliance costs[65] - Beginning in 2026, the company will be required to disclose certain environmental, social, and governance impacts, risks, and opportunities for fiscal year 2025 under the Corporate Sustainability Reporting Directive (CSRD)[65] - Compliance with environmental laws and regulations may incur significant costs and adversely affect capital expenditures, earnings, and competitive position[65] Workforce and Diversity - As of December 31, 2023, the company had approximately 800 full-time employees worldwide, with 330 located in the United States[60] - The company has developed robust anti-bias training and diversity initiatives to enhance representation in its workforce and boardroom[58] Innovation and Patents - The company holds over 684 U.S. and foreign patents related to its business innovations[21] - The company is a leader in automated void reduction systems technology and focuses on environmentally friendly fiber-based packaging solutions[54] - The Automation products represented only 6.1% of net revenue in 2023, but the company believes it will serve as a platform for expansion to meet higher volume requirements[35]

Ranpak Holdings Corp. (NYSE:PACK) Q4 2023 Earnings Conference Call March 11, 2024 4:30 PM ET Company Participants Sara Horvath - General Counsel Omar Asali - Chairman and Chief Executive Officer Bill Drew - Chief Financial Officer Conference Call Participants Ghansham Panjabi - Baird Adam Samuelson - Goldman Sachs Danny Eggerichs - Craig-Hallum Capital Group Operator Ladies and gentlemen, thank you for standing by. My name is Desiree and I will be your conference operator today. At this time, I would like t ...