NYSE$PACK

Ranpak Holdings Corp · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported a 2.2% increase in net sales and a 15.8% increase in Adjusted EBITDA.

Ranpak Holdings Corp reported a 2.2% increase in net sales to $77.7 million for the fourth quarter of 2019, driven by growth in cushioning and wrapping solutions. Adjusted EBITDA increased by 15.8% to $28.8 million, with a margin expansion of 320 bps compared to the same period in 2018.

  • Net sales increased by 2.2% to $77.7 million, driven by cushioning and wrapping growth.
  • Adjusted EBITDA increased by 15.8% to $28.8 million, with a margin exceeding 36%.
  • The company experienced greater operating leverage due to higher sales volumes and improved execution.
  • Investments were made in innovation, human capital, and improving the digital footprint.

Headline financials

Total Revenue

$77.7M

Previous: $76M+2.2%
EPS (adj)

-$0.06

No prior period
Adjusted EBITDA

$28.8M

Previous: $24.8M+16.1%
Capital Expenditures

$19.2M

Previous: $4.3M+346.5%
Free Cash Flow

-$9.6M

Previous: -$4.9M-95.9%
Net Income

-$5.7M

Previous: -$1.52M-275.8%
Operating Income

$12.2M

Previous: -$3.18M+483.9%
Gross Profit

$32.9M

Previous: $32.4M+1.5%
Cash & Equivalents

$19.7M

Previous: $17.5M+12.6%
Total Assets

$1.1B

Previous: $793M+39.3%

Revenue & EPS history

Ranpak · Revenue · Quarterly

$77.7M

Q4 2019+2.2%vs Q4 2018
Beat estimate in 5 of 9 quarters(56%)
ActualEstimate

Forward guidance

Ranpak expects 2020 to be a year of strong operating and financial performance, with net sales growth in the area of 6 – 10% and Adj EBITDA growth of 4% - 10%.

Tailwinds

  • Significant opportunity to drive growth within the core business
  • Continued investment where attractive returns and opportunities exist
  • Strategic expansion of portfolio
  • Solid revenue growth expected
  • Adjusted EBITDA growth expected

Headwinds

  • Uncertainty of the timing of the impact of some investments
  • Guidance reflects a range due to uncertainty
  • Weakness in the Euro versus the prior period
  • Void-fill headwinds in North America
  • Automation revenue recognition using percentage of completion method may impact results

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 Q4 2019

Historical avgQ4 2019

-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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