Ranpak Holdings Corp.

Good day and thank you for standing by. Welcome to the RANPAC Q2 2021 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 one on your telephone. Please be advised that today's conference call 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 for today, Mr. David Mergeo.

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 point 10-K and our other filings filed for the SEC. Some of the statements in response 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. RAMPAC 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 the Form 8K that we submitted with the SEC before this call. We will also make a replay of this conference call available via webcast and on the company website. For financial information that is presented on a non-GAAP basis, we've included reconciliations to the comparable GAAP information. Please refer to the table and slide presentation accompanying today's earnings release. Lastly, we'll be filing with the SEC our Form 10-Q for the three months ending June 30th, 2021. The 10-Q will be available through the SEC or on the Investor Relations section of our website. With me today, I have Omar Asli, our Chairman and CEO, and Bill Drew, our CFO. Omar will summarize our second quarter results, and Bill will provide some additional detail before opening up to call for questions.

With that, I'll turn the call over to Omar. Thank you, David, and good morning, everyone. Our team continued its momentum and performed extremely well in today's environment. Our strong results were underpinned by the continued hard work and resilience of the global RAMPAC organization. teams in all regions of the world are communicating well and coordinating to efficiently manage the business and its record demand for our products and longer lead times in shipping and supply chains we're seeing exceptional demand for our products and working tirelessly to fulfill our rapidly growing customer needs the men and women in our facilities producing paper and assembling our equipment has been the bedrock of our success throughout COVID, and I want to, as I do in each quarter, express my sincere appreciation to them all. We continue to pay close attention to local health trends surrounding our facilities to ensure we maintain the safety and health of our colleagues while maintaining business continuity. We follow local health and safety guidelines as we bring back staggered groups of employees to our offices. Our terrific start to the year for RAMPAC continued in the second quarter. Our results for the quarter were exceedingly strong and well-rounded, with success occurring in multiple key areas. We expect to have a record year at RAMPAC, both financially and strategically, meaningfully surpassing our original 2021 guidance and entering 2022 well-positioned to achieve our multi-year growth objectives of double-digit top-line growth. Over the past eight quarters, we've changed the trajectory of RAMPAC through investing in the team and providing additional resources to the organization to accelerate growth. This comes in the form of increased innovation and training, product line and capacity expansion, increased marketing and awareness, as well as digital and technology investments. We've taken actions to greatly simplify and improve our capital structure, resulting in a more conservative leverage profile that provides us great flexibility to pursue our growth initiatives and make strategic investments that we believe will enhance our customer value proposition. The second half of 2021 is an important period for us as we continue to invest behind our key initiatives and build out the infrastructure to position RAMPAC as a key beneficiary of powerful global trends, making businesses more efficient and environmentally friendly. Following the end of the second quarter, we made a strategic investment in an emerging company called Pickle Robot. Pickle has developed a low-cost collaborative package handling robot that automates several key tasks along the e-commerce supply chain. RAMPAC Automation's investment in Pickle is highly strategic and complements RAMPAC's existing portfolio of automated solutions. This investment follows RAMPAC's recent creation of R-Squared Robotics, an internal division that uses 3D computer vision and artificial intelligence technologies to improve end-of-the-line packaging and logistics. RAMPAC Automation, along with PICOL and R-Squared Robotics, will design and build automated, integrated systems for high-volume end users to improve the speed and efficiency of their operations. Between our protective packaging offering, RAMPAC Automation, R-Squared, and PICOL, we believe we have the most compelling, comprehensive, and sustainable offering available to high-volume end users. Turning the discussion now to second quarter highlights, I'm very pleased with the second quarter performance as we achieved strong growth in all regions and in all product lines compared to prior year. Our excellent top line results were mirrored by increased profitability as we executed on our top line growth strategy with intense focus on maintaining our attractive financial profile. For the quarter, Consolidated net revenue on a constant currency basis increased 29%, driven by broad-based growth across all products, with particularly strong performance from cushioning and wrapping, as well as continued strong growth in void fill. North America posted its best quarterly sales increase as a public company by a considerable margin as economic activity ramps up and demand for our products grows. We have made a lot of changes to the North American organization over the past two years and believe those efforts are beginning to show up in the results. We added resources across the board, initially investing in areas such as sales, marketing, and engineering, and more recently adding talent in operations, supply chain, and quality. We are pleased with the second quarter results as North American net revenue increased 26.6% year over year, primarily driven by exceptional growth in wrapping and a strong performance by cushioning. Activity levels across all applications were strong as we secured key wins in general industrial, automotive, cosmetics, e-commerce, and ship from store. Europe and Asia Pacific led the way again this quarter as e-commerce remained strong, industrial activity improved, and we further penetrated areas of geographic expansion. On a constant currency basis, for the quarter, net revenue in Europe and APAC was up approximately 30.8%, driven by strong growth across all product lines with particular strength in wrapping and cushioning. Our constant currency gross profit increased 25% year-over-year, slightly behind sales growth, but overall, we were able to improve profitability as adjusted EBITDA in constant currency terms outperformed our sales growth, increasing 35% year-over-year to $25.6 million, due to our sales growth being meaningfully higher than our increase in G&A spend. From an operational and supply chain perspective, Our production continues uninterrupted, and we continue to serve outsized demand globally as industrial activity increases and e-commerce remains elevated. We're investing in additional production capacity across the globe and qualifying additional paper suppliers to expand our network. These initiatives should result in improved efficiencies over time and an even greater service to our customers. Like many global players, we continue to manage through higher input costs, including materials, labor, and transportation, as well as longer lead times for ports arriving from overseas due to port congestion and container availability. To offset some of the constraints in the global supply chain, we're investing more in safety stock and inventory ahead of our seasonal high-volume periods so we can be better positioned to meet demand. Our business units and finance teams have done an outstanding job of working together to identify pain points and take steps to mitigate margin exposure. We have implemented price increases to protect our margins, but also carefully designed to provide us with an opportunity to increase market share as customers increasingly look for more sustainable packaging solutions. Overall, we're pleased with our competitive positioning and feel this is an environment where paper solutions are very attractively positioned to gain share against plastics and foam-based products. Additionally, we believe that in a world where labor and import costs are higher, RAMPAC can thrive because our solutions can increase throughput, lower damage rates, as well as reduce shipping and labor costs. These are the high-level points on our second quarter in which we delivered record results and took key steps to position ourselves for further success over the coming years. With that, let me turn the call over to Del, who will give you further details related to the quarter.