Ranpak (PACK)2024-08-01 11:40Financial 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]