Ranpak Holdings Corp. (NYSE:PACK) Q1 2024 Earnings Call Transcript

Omar Asali: We have been laser-focused, Adam, as you know, about redeploying, refurbishing and working our asset base to the extent possible. And that continues to be our priority, given in the last couple of years we did feel that some accounts were overcapitalized. And the world changed and we needed to react. And we continue to do that. So that’s priority one. With some of the large strategic accounts and as we’re ramping those up, just given the scale of some of these accounts, redeploying and refurbing, etcetera, may not be enough to meet the demands that we’re seeing. So you will see some pickup that we’ve already planned for in Q1 because we’re, frankly, ramping up as we speak some of these accounts. I don’t think you’re going to see something that’s going to move the needle at 140,000 installed base.

It will be maybe a modest increase from the last couple of quarters for us to fulfill the needs of these customers. But we’re trying to be very, very prudent with our CapEx and how we fulfill these customer demands. And the beauty of some of these large accounts, Adam, is the efficiency per converter, the efficiency per machine, given volume, sometimes tends to be above what we’ve offered other customers just given sheer needs. So they tend to be pretty efficient from a CapEx standpoint.

Operator: That concludes the Q&A session. I will now turn the conference back over to Bill Drew for closing remarks.

Bill Drew: Thanks, Benjamin. And thank you everybody for joining us today. We look forward to catching up next quarter.

Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining. You may now disconnect.