Ranpak (PACK) - 2023 Q4 - Annual Results

Financial Performance - Net revenue for Q4 2023 increased by 13.9% year over year to $90.4 million, with a constant currency increase of 10.3% to $93.9 million[4] - Adjusted EBITDA for Q4 2023 rose by 89.1% year over year to $24.4 million on a constant currency basis[5] - Net revenue for 2023 reached $336.3 million, up 5.9% from $326.5 million in 2022[20] - Gross profit improved to $123.3 million in 2023, compared to $99.6 million in 2022, reflecting a gross margin increase[20] - Gross profit for Q4 2023 reached $34.1 million, reflecting a 52.9% increase from $22.3 million in Q4 2022[34] - EBITDA for the year ended December 31, 2023, was $62.6 million, a significant increase of 90.3% from $32.9 million in 2022[35] - The company reported a net loss of $(27.1) million for the year ended December 31, 2023, a 34.5% improvement from $(41.4) million in 2022[35] - The net loss for Q4 2023 was $9.3 million, slightly higher than the net loss of $7.3 million in Q4 2022[36][37] Revenue Breakdown - Net revenue in North America for Q4 2023 was $39.1 million, an increase of 8.3% from $36.1 million in Q4 2022[9] - Net revenue in Europe/Asia for Q4 2023 reached $51.3 million, an 18.5% increase from $43.3 million in Q4 2022[10] - Paper revenue for 2023 was $264.2 million, a slight increase of 1.1% from $261.3 million in 2022[20] Future Projections - For 2024, the company forecasts net revenue growth of 6% to 12%, translating to $370 million to $390 million in constant currency[13] - The company aims for an Adjusted EBITDA growth of 5% to 16%, resulting in a range of $80 million to $89 million for 2024[13] Cash and Assets - As of December 31, 2023, the company had a cash balance of $62.0 million and no borrowings on its $45 million Revolving Credit Facility[11] - Total current assets decreased to $124.9 million in 2023 from $139.6 million in 2022, primarily due to a reduction in inventories[22] Expenses and Liabilities - Selling, general and administrative expenses decreased by 13.0% to $91.8 million in 2023 from $105.5 million in 2022[35] - Total liabilities increased to $550.7 million in 2023, up from $520.7 million in 2022, driven by higher long-term debt[22] - Interest expense increased to $24.3 million in 2023, up 17.4% from $20.7 million in 2022[35] Operational Metrics - Packaging system placements increased by 1.5% year over year, totaling approximately 141,200 machines as of December 31, 2023[5] - The Adjusted EBITDA net leverage ratio was 4.6x based on constant currency results for Q4 2023, down from a recent peak in Q2[3] - Net cash provided by operating activities was $52.6 million in 2023, a significant increase from $1.1 million in 2022[24] - Capital expenditures for 2023 totaled $55.3 million, compared to $44.8 million in 2022, indicating ongoing investment in growth[24]