Strong Growth Driven by Machine Placement slide image

Strong Growth Driven by Machine Placement

Ranpak Non GAAP metric reconciliation Quarterly Year Ended December 31, $ in millions 1Q18 1Q19 2Q18 2Q19 3Q18(1) 3Q19(1) 4Q18 4Q19 2018 (1) 2019 (1) Net sales Reported net sales 61.6 66.1 65.2 56.6 65.1 69.1 76.0 77.7 267.9 269.5 Constant currency adjustment (2.1) 0.5 (1.1) 0.7 (0.4) 1.2 0.3 1.5 (3.3) 3.9 Constant currency net sales (2) 59.5 66.6 64.1 57.3 64.7 70.3 76.3 79.2 264.5 273.4 Automation revenue recognition (0.4) 1.3 (1.3) (1.7) 1.3 Purchase accounting 2.6 0.1 0.0 2.7 Pro forma net sales (2) 59.1 67.9 64.1 59.9 64.7 70.4 75.0 79.2 262.9 277.4 Pro forma Adjusted EBITDA Net income (loss) (6.8) (3.3) Depreciation & amortization 16.3 Interest expense 7.1 Income tax benefit (1.3) (0.6) Unrealized (gain) / loss on translation 3.0 (2.1) Purchase accounting Constant currency adjustment at 1.15 (0.7) ུ་ྒུ་ཆ 1.9 (26.1) 0.3 (1.6) (4.0) (5.7) (8.7) (36.7) 16.1 15.9 15.2 16.0 15.4 16.2 15.0 64.5 61.7 8.1 7.8 20.1 8.0 9.5 8.1 9.7 30.9 47.4 0.9 (6.1) (5.5) (3.7) (6.3) (1.1) (0.8) (3.2) 6.8 1.1 0.1 (0.4) (1.6) (0.1) 0.4 ཌཱུ་ྔ (1.1) 3.4 (7.1) (7.0) (0.2) 2.6 (4.2) (3.8) 7.9 0.1 2.2 (1.1)▼ 1.1 Non-cash impairment losses 0.3 0.2 0.4 0.9 0.6 0.2 0.5 1.2 1.8 2.5 M&A, restructuring and severance 0.0 0.8 0.5 7.7 2.0 2.2 5.0 2.9 7.5 13.61 PE sponsor costs 0.4 0.5 0.5 0.8 0.4 0.3 1.6 1.3 1 RSU 0.2 1.6 (0.1) 1.7 Contingent liability adjustment (1.2) (1.2) Other non-core and non-cash adjustments Adjusted EBITDA (2) 0.6 0.2 0.5 0.5 0.5 0.1 1.0 (1.6) 2.7 (0.8) ! 18.9 20.0 21.8 17.3 21.4 22.0 25.9 28.5 88.0 87.8! Pro forma Automation (0.1) 0.4 (0.4) (0.5) 0.4 Pro forma public company costs (0.7) (0.7) (0.7) (0.5) (0.7) (0.7) 0.3 (2.9) (0.9)! Pro forma Adjusted EBITDA (2) 18.1 19.7 21.1 16.8 20.6 22.0 24.8 28.8 84.6 87.3 % margin 30.6% 29.0% 32.9% 28.0% 31.9% 31.3% 33.2% 36.4% 32.2% 31.5% (1) 22 (2) Represent unaudited financials. Due to the predecessor and successor accounting periods relating to the closing of the business combination, for the convenience of readers, we have presented the twelve month periods ended December 31, 2019 on a combined basis (reflecting simple arithmetic combination of the GAAP predecessor and successor periods without further adjustment) in order to present a meaningful comparison against the corresponding period twelve months ended December 31, 2018. Financial metrics of the Company presented on a constant currency basis, including net sales, gross profits, and Adjusted EBITDA on a constant currency basis. The average foreign exchange rate used by the Company for the three. and twelve months ended December 31, 2019 and 2018 was $1.15:€1.00.
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