Ranpak Holdings Corp. (PACK) shares lost 5.79% in the after-hours on Tuesday, May 25, 2021, and close the session at $23.25 per share. Earlier, PACK’s stock gained 0.69% in a normal trading session on Tuesday and closed at $24.68 per share. PACK shares have surged 229.07% over the last 12 months, and they have moved up 12.18% in the past week. Over the past three months, the stock has gained 27.41%, while over the past six months, it has added 111.12%.
Let’s see what’s going on with Ranpak Holdings Corp.
Proposed public offering of common stock
On May 25, 2021, Ranpak Holdings Corp commenced an underwritten registered public offering of its Class A common stock. The proposed offering consists of 4,500,000 shares being offered by Ranpak and 500,000 shares being offered by certain selling security holders of Ranpak.
The net proceeds from the offer will be used for debt repayment and general corporate purposes. Ranpak will not receive any proceeds from the sale of the Class A common stock offered by the Selling Security Holders.
Recent financial result
On May 6, 2021, Ranpak Holdings announced its first-quarter 2021 financial results.
Q1 2021 financial highlights
- Ranpak Holdings net revenue was $87.7 million for the three months ended March 31, 2021, compared to $63.4 million for the three months ended March 31, 2020.
- Gross profit was $36.3 million in Q1 2021 compared to $26.8 million in Q1 2020.
- In Q1 2021, net income was $6.3 million compared to a net loss of $3.6 million in the three months ended March 31, 2020.
- In Q1 2021, earnings(loss) per basic share was $0.09 compared to $0.05 earnings(loss) per basic share in Q1 2020.
- In Q1 2021, earnings(loss) per diluted share was $0.08 compared to $0.05 earnings(loss) per diluted share in Q1 2020.
- AEBITDAwas $28.0 million in Q1 2021 compared to $18.1 million in Q1 2020.
- As of March 31, 2021, PACK had cash and cash equivalents of $40.5 million compared to $20.2 million on March 31, 2020.
2020 ESG impact report
On April 12, 2021, Ranpak Holdings released its Environmental, Social and Governance (ESG) Report for 2020.
2020 Ranpak ESG Impact Report also provide us with the benchmarks achieved by the company such as
- Renewable resources of Ranpak raw materials (80%).
- Increased usage of recycled fibre by 3%.
- Recycling of Ranpak total waste generated (96%).
- Diversity & inclusion with a commitment to varied perspectives.
The company also set bold targets and goals for the company and for its 650 worldwide employees to achieve by 2030 such as
- Reducing greenhouse gas emissionsby at least 46% by 2030.
- Using at least 75% recycled paper supply by 2030
- Source an aggregate paper supply consisting of at least 75% recycled (i.e. post-industrial & post-consumer waste) pulp by 2030.
- Sell 100% of our paper products as FSC-certified, all by 2030.
The PACK stock declined in the after-hours session after the company announced the proposed public offering of its common stock. It is hard to predict how PACK stock will perform in the rest of the week after the recent announcement.