NYSE$PACK

Ranpak Holdings Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Ranpak reported an increase in net revenue and improved profitability in Q3 2023.

Ranpak Holdings Corp. reported a 6.4% year-over-year increase in net revenue for the third quarter of 2023, reaching $82.8 million. The company's net loss decreased to $3.3 million compared to $8.7 million in the prior year. Adjusted EBITDA increased by 8.4% year-over-year to $18.0 million.

  • Packaging system placements increased by 2.5% year-over-year, reaching approximately 142,000 machines.
  • Net revenue increased by 6.4%, or 1.9% on a constant currency basis.
  • Net loss improved to $3.3 million compared to a net loss of $8.7 million in the previous year.
  • Adjusted EBITDA increased by 8.4% year-over-year to $18.0 million on a constant currency basis.

Headline financials

Total Revenue

$82.8M

Previous: $77.8M+6.4%
EPS (adj)

-$0.04

Previous: -$0.11+63.6%
Adjusted EBITDA

$18M

Previous: $16.6M+8.4%
Total PPS Systems

142.0K

Previous: 138.6K+2.5%
Capital Expenditures

-$34.9M

Previous: -$34M-2.6%
Free Cash Flow

-$38.2M

Previous: -$42.7M+10.5%
Net Income

-$3.3M

Previous: -$8.7M+62.1%
Operating Income

$1.6M

Previous: -$11.7M+113.7%
Gross Profit

$31.5M

Previous: $24.4M+29.1%
Cash & Equivalents

$52.1M

Previous: $61.3M-15.0%
Total Assets

$1.12B

Previous: $1.14B-1.9%

Revenue & EPS history

Ranpak · Revenue · Quarterly

$82.8M

Q3 2023+6.4%vs Q3 2022
Beat estimate in 4 of 14 quarters(29%)
ActualEstimate

Revenue by segment

Ranpak · $78M total across 3 segments · Q3 2023

  • Cushioning
    $35.7M+6.9%
  • Void-Fill
    $34.2M+9.3%
  • Wrapping
    $8.1M-15.6%

Forward guidance

The company expects to build on the year-over-year improvement of Gross Profit and Adjusted EBITDA in the fourth quarter as they enter their seasonal peak. They believe they are exiting 2023 with good momentum in the pipeline for PPS and Automation and that they will build on the progress they have made this year. In addition to driving topline and returning to growth, their top priorities as an organization are deleveraging and maximizing the return on our existing investments.

Tailwinds

  • Continued improvement of Gross Profit
  • Continued year over year improvement of Adjusted EBITDA
  • Entering seasonal peak in Q4
  • Good momentum in the pipeline for PPS and Automation
  • Top priorities are deleveraging and maximizing return on existing investments

Headwinds

  • Environment remains inconsistent
  • Consumer spend is more heavily allocated to experiences rather than discretionary goods
  • Impact of inflationary and interest rate pressures continue to impact consumer and corporate spend
  • There is a great deal of uncertainty in the world right now
  • Overall environment remains challenging

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-0.5%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+4.7%

Avg return

30 days after

42%

14 / 33 earnings

Positive

+45.4%

Q4 2023

Best reaction

-29.1%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+29.2%+50.0%+74.1%
Q4 2025-1.3%-6.0%-34.0%
Q3 2025-17.5%-5.4%-11.5%
Q1 2025-29.1%-21.0%-19.6%
Q4 2024+2.6%-6.1%-36.9%
Q3 2024+3.0%+7.9%+31.4%
Q2 2024+7.5%+6.5%-1.8%
Q1 2024-8.2%-2.7%-14.9%
Q4 2023+45.4%+64.7%+62.5%
Q3 2023-23.8%-17.3%+16.1%
Q2 2023+15.0%-6.9%+7.1%
Q1 2023-23.2%-19.8%-9.7%
Q4 2022+7.7%+7.9%-2.8%
Q3 2022+15.8%+37.6%+50.3%
Q2 2022-25.5%-27.6%-16.9%
Q1 2022-20.0%-26.5%-15.5%
Q4 2021-8.4%-13.1%-17.0%
Q3 2021+9.8%+13.6%+24.1%
Q2 2021-1.9%-0.6%+16.9%
Q1 2021+4.0%-3.5%-0.9%
Q4 2020+8.9%+16.1%+10.7%
Q3 2020+8.3%+21.0%+30.4%
Q2 2020-3.9%-1.2%+5.2%
Q1 2020+0.1%-14.1%+0.1%
Q4 2019+1.4%-3.1%-16.5%
Q3 2019-2.4%+0.0%-2.5%
Q2 2019-8.5%-0.7%+32.5%
Q1 2019-0.3%-0.7%-9.2%
Q4 2018-0.1%-0.2%+0.9%
Q2 2018-0.1%-0.2%+0.9%
Q3 2018+0.0%+0.0%+0.3%
Q4 2017-0.2%-0.2%+0.4%
Q1 2018-0.2%-0.2%+0.4%
Q3 2017

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