Ranpak Holdings Corp.

Ladies and gentlemen, thank you for standing by and welcome to the Rand Pack Holdings Q4 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I will now like to hand the conference over to your speaker today, David Mergeo, Chief Sustainability Officer and Secretary. Thank you. Please go ahead, sir.

Thank you and good morning, everyone. Before we begin, I'd like to remind you that we will discuss forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those forward-looking statements as a result of various factors, including those discussed in our press release and the risk factors identified in our most recent Form 10-K file with the SEC and our other filings with the SEC. Some of the statements and responses to your questions in this conference call may include forward-looking statements that are subject to future events and uncertainties that could cause our actual results to differ materially from these statements. Rampak assumes no obligation and does not intend to update any such forward-looking statements. You should not place undue reliance on these forward-looking statements, all of which speak to the company only as of today. The earnings release we issued this morning and the presentation for today's call are posted on the investor relations section of our website. A copy of the release has been included in 8K we submitted to the SEC before this call. We will also make a replay of this conference call available via webcast on the company website. Financial information that is presented on a non-GAAP basis, we have included reconciliations to the comparable GAAP information. Please refer to the table and slide presentation accompanying today's earnings release. Also, as we will discuss in more detail later, due to the accounting treatment for the business combination we closed on June 3rd, 2019, We've also presented our full year 2019 results on a combined basis, reflecting a simple arithmetic combination of the GAAP predecessor and successor periods without further adjustment, as well as any other adjustments as described. Lastly, we'll be filing our 10-K with the SEC for the period ending December 31st, 2020. The 10-K will be available through the SEC or on the investor relations section of our website. With me today, I have Omar Asmi, our chairman and CEO, and Bill Drew, our CFO. Omar will summarize our fourth quarter results, provide an update on our growth strategies, and issue our outlook for 2021 and beyond. Bill will provide additional detail on the financial results before we open up the call for questions. With that, I'll turn the call over to Omar.

Thank you, David. Good morning, everybody. I hope everyone listening in and their families are staying safe and healthy. RAMPAC had a strong fourth quarter and robust performance for the calendar year 2020. I'm extremely pleased with our overall results and the execution of our team who delivered strong growth in our top line as well as our profitability. The team has come together and taken a global approach to fulfilling our customers' needs and pursuing opportunities to grow the business. I'm grateful to be part of an organization that not only delivered such results, but did so while maintaining the highest health standards. The safety of our employees has been the top priority over the past year, and I'm proud of our team's ability to execute while maintaining strict safety protocols. Additionally, while experiencing modestly longer lead times for some items, our employees have worked hard to ensure our global supply chain remains intact and our focus on execution and customer service is unwavering. We finished the year with solid momentum in the business and are excited about what 2021 has in store for us. Overall, we have stayed focused throughout the pandemic on executing in the short term and investing in the business for the long term. We believe we are well positioned to pursue the substantial market share gains and growth opportunities that exist for RAMPAC. Growth in e-commerce, increased focus on sustainability and automation are all key trends that have played throughout last year and are here to stay. This past year, e-commerce gained significant share versus brick and mortar. Consumers worldwide are buying items rarely purchased online prior to the pandemic, and I believe consumers have become accustomed to the convenience online shopping has to offer. Included in our earnings presentation are findings from RAMPAC's first annual e-commerce and packaging trends survey, which we conducted in partnership with Harris Research. The takeaways regarding the consumer's propensity to ramp up online shopping in 2021 and the desire for more paper-based packaging are very encouraging, as two-thirds of respondents expect to do more online shopping in 2021 versus 2020, and 78% of respondents cited they preferred paper for in-the-box packaging. Shopify also recently put out a report outlining their view on the future of e-commerce and included a consumer survey which cited almost 50% of respondents expecting to shop online more frequently after the outbreak is over. In that same report, they also cited that 72% of global consumers want brands to use sustainable packaging. Over the past year, we have been consistently investing in raising awareness of our solutions and our brand, so companies across the globe know that RAMPAC is the answer to their sustainable packaging needs. For the quarter, I'm pleased to report consolidated net sales on a constant currency basis increased 13.9%, driven by broad-based growth in all product lines, bringing full-year sales up 7.8% on a constant currency basis. Europe and Asia Pacific experienced exceptional demand in the quarter, exiting the year with strong momentum. Net revenue on a constant currency basis was up 30%, driven by strong growth across all product lines. Overall, my hat is off to the production teams in Europe, as they navigated unprecedented demand, brought in additional capacity in the quarter, and coordinated with our North American colleagues to source more product to meet record customer needs. Our North America business, which had a very strong fourth quarter in 2019, delivered top line results that were slightly down at 2% year over year. Our pipeline of new activity and new trials in North America is extremely robust, and I believe the fourth quarter figures are not indicative of the power of the business in North America today. Overall, I'm really pleased with the activity levels we see in the region. and believe that in 2021, North America is on a strong path to sustainable growth. We made a number of changes over the past year in the region that I think are starting to pay dividends. Proforma adjusted EBITDA of $33 million was up 14.6% in constant currency terms year over year due to higher sales and improved pricing, resulting in a very strong margin of 36.6%. For the year, pro forma adjusted EBITDA was up 7.3% to 93.7 million in line with our revenue growth. Overall, really exceptional performance to finish the year, which sets us up well for further success in 2021. This year, we continue to build our growth platform at RAMPAC. We're investing in people, systems, capacity, and technology. When we spoke about the fourth quarter last year, I shared that we were investing in the sales team in the U.S., bringing automation production in-house, adding engineering talent, filling out the finance function, and upgrading technology resources. I'm pleased to report today we've done all these things and are investing further in some of these areas. We began to feel positive impact of these initiatives beginning in the second half of 2020, and I believe we'll reap the benefits of these investments more fully in 2021. In order to take RAMPAC to the next level, in 2021, we will continue to add personnel to the organization with particular emphasis on sales and support, engineering, as well as operations as we expand product lines and further penetrate our operating regions. Our technology and digital transformation continues as we upgrade our systems to position us for success organically and through M&A. The demand for sustainable and automated products is loud and clear. It's up to us at RAMPAC to ensure the right resources are in place to fulfill it. Our guidance for 2021 reflects this level of investment, continued meaningful top line growth and slightly lower EBITDA growth in the short term as we ramp up investments. Areas like automation will scale up this year and will position us well to achieve our longer-term goals. We'll discuss the 2021 outlook further after Will's remarks. With that, let me turn the call over to Bill, who will give you further details related to the quarter and full year 2020.