Eastman Kodak Company (NYSE: KODK) today reported financial results
for the fourth quarter and full year 2023.
Fourth-quarter 2023 highlights include:
- Consolidated revenues of $275
million, compared with $305 million for Q4 2022, a decrease of $30
million or 10 percent (decreased by $35 million on a constant
currency basis, or 11 percent)
- Gross profit of $47 million,
compared with $43 million for Q4 2022, an increase of $4 million or
9 percent
- Gross profit percentage of 17
percent, compared with 14 percent for Q4 2022 an increase of 3
percentage points
- GAAP net income of $5 million,
compared with net income of $7 million for Q4 2022, a decrease of
$2 million or 29 percent
- Operational EBITDA of $2 million,
compared with $7 million for Q4 2022, a decrease of $5 million or
71 percent
- A year-end cash balance of $255
million, compared with $246 million at the end of the third quarter
of 2023, an increase of $9 million; cash flow from operations
improved by $3 million from the prior period
Full-year 2023 highlights include:
- Consolidated revenues of $1.117
billion, compared with $1.205 billion for the full year 2022, a
decrease of $88 million or 7 percent (decreased by $89 million on a
constant currency basis, or 7 percent)
- Gross profit of $210 million,
compared with $170 million for full year 2022, an increase of $40
million or 24 percent
- Gross profit percentage of 19
percent, compared to 14 percent in the prior year, an increase of 5
percentage points
- GAAP net income of $75 million,
compared with $26 million for 2022, an increase of $49 million or
188 percent
- Operational EBITDA of $45 million,
compared with $18 million for 2022, an increase of $27 million or
150 percent
- A year-end cash balance of $255
million, compared with $217 million on December 31, 2022, an
increase of $38 million; cash flow from operations improved by $154
million from the prior period
“After almost five years of executing our plan, we saw our
efforts start to come to fruition in 2023, delivering
year-over-year improvements in gross profit and Operational EBITDA
and building a strong foundation for growth,” said Jim Continenza,
Kodak’s Executive Chairman and CEO. “Our recent progress has been
the result of our ability to adapt to difficult business conditions
and our commitment to executing our long-term plan: investing in
innovation, improving efficiency and helping our customers stay
productive and profitable. We continue to innovate across our
traditional and digital print portfolio, and we will introduce a
wide range of products at the upcoming drupa tradeshow. We continue
to invest in growth initiatives in our Advanced Materials &
Chemicals group and have seen increasing revenue contributions from
those businesses. We continue to improve our infrastructure and
streamline processes to increase capacity in our film business and
gain efficiencies across our enterprise. And most importantly, we
have continued to deliver for our customers — and they have shown
their appreciation by staying with us through this challenging
period. I’d like to thank our customers for their loyalty and our
employees for their hard work and winning attitude as we continue
the Kodak transformation.”
For the full year ended December 31, 2023, revenues were $1.117
billion, a decrease of $88 million or 7 percent compared to the
same period in 2022. Adjusting for the favorable impact of foreign
exchange of $1 million, revenues decreased by $89 million, or 7
percent compared to the prior year.
GAAP net income was $75 million for the full year, compared to
$26 million in 2022, an increase of $49 million or 188 percent.
Operational EBITDA for the year ended December 31, 2023 was $45
million, compared to $18 million in 2022, an increase of $27
million or 150 percent. The increase was primarily driven by
profitability relating to pricing rationalization and improved
operational efficiency executing on cost controls, partially offset
by higher continued ongoing global cost increases.
Kodak ended the year with a cash balance of $255 million, an
increase of $38 million from December 31, 2022. The increase was
primarily driven by the net proceeds of $31 million received from
July 2023 refinancing transactions.
“Kodak delivered strong cash performance in 2023, generating
cash in the fourth quarter and increasing full year cash flow from
operations by $154 million compared to 2022,” said David
Bullwinkle, Kodak’s CFO. “Throughout the year, our team improved
profitability and performance in working capital to enhance the
Company’s ability to generate cash which we delivered in three of
the last four quarters. The Company also delivered year-over-year
improvement in gross profit percentage, reflecting our strategic
focus on improving operational efficiency and driving smart
revenue. For the year ahead, we plan to build on our momentum by
continuing to execute our long-term plan.”
##
Revenue and
Operational EBITDA by Reportable Segment Q4 2023 vs. Q4
2022 |
|
|
|
|
|
|
|
|
($
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2023 Actuals |
|
Print |
|
Advanced Materials & Chemicals |
|
Brand |
|
Total |
Revenue |
|
$ |
208 |
|
|
$ |
58 |
|
|
$ |
5 |
|
|
$ |
271 |
|
Operational EBITDA
* |
|
$ |
2 |
|
|
$ |
(5 |
) |
|
$ |
5 |
|
|
$ |
2 |
|
|
|
|
|
|
|
|
|
|
Q4 2022 Actuals |
|
Print |
|
Advanced Materials & Chemicals |
|
Brand |
|
Total |
Revenue |
|
$ |
234 |
|
|
$ |
61 |
|
|
$ |
6 |
|
|
$ |
301 |
|
Operational EBITDA
* |
|
$ |
5 |
|
|
$ |
(2 |
) |
|
$ |
4 |
|
|
$ |
7 |
|
|
|
|
|
|
|
|
|
|
Q4 2023 vs. Q4 2022
ActualsB/(W) |
|
Print |
|
Advanced Materials & Chemicals |
|
Brand |
|
Total |
Revenue |
|
$ |
(26 |
) |
|
$ |
(3 |
) |
|
$ |
(1 |
) |
|
$ |
(30 |
) |
Operational EBITDA
* |
|
$ |
(3 |
) |
|
$ |
(3 |
) |
|
$ |
1 |
|
|
$ |
(5 |
) |
|
|
|
|
|
|
|
|
|
Q4 2023 Actuals on constant currency
** vs. Q4 2022
ActualsB/(W) |
|
Print |
|
Advanced Materials & Chemicals |
|
Brand |
|
Total |
Revenue |
|
$ |
(31 |
) |
|
$ |
(3 |
) |
|
$ |
(1 |
) |
|
$ |
(35 |
) |
Operational EBITDA
* |
|
$ |
(5 |
) |
|
$ |
(3 |
) |
|
$ |
1 |
|
|
$ |
(7 |
) |
Revenue and
Operational EBITDA by Reportable Segment FY 2023 vs. FY
2022 |
|
|
|
|
|
|
|
|
($
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 2023 Actuals |
|
Print |
|
Advanced Materials & Chemicals |
|
Brand |
|
Total |
Revenue |
|
$ |
828 |
|
|
$ |
255 |
|
|
$ |
17 |
|
$ |
1,100 |
|
Operational EBITDA
* |
|
$ |
20 |
|
|
$ |
10 |
|
|
$ |
15 |
|
$ |
45 |
|
|
|
|
|
|
|
|
|
|
FY 2022 Actuals |
|
Print |
|
Advanced Materials & Chemicals |
|
Brand |
|
Total |
Revenue |
|
$ |
938 |
|
|
$ |
234 |
|
|
$ |
17 |
|
$ |
1,189 |
|
Operational EBITDA
* |
|
$ |
5 |
|
|
$ |
(1 |
) |
|
$ |
14 |
|
$ |
18 |
|
|
|
|
|
|
|
|
|
|
FY 2023 vs. FY 2022 Actuals
B/(W) |
|
Print |
|
Advanced Materials & Chemicals |
|
Brand |
|
Total |
Revenue |
|
$ |
(110 |
) |
|
$ |
21 |
|
|
$ |
- |
|
$ |
(89 |
) |
Operational EBITDA
* |
|
$ |
15 |
|
|
$ |
11 |
|
|
$ |
1 |
|
$ |
27 |
|
|
|
|
|
|
|
|
|
|
FY 2023 Actuals on constant currency
** vs. FY 2022
ActualsB/(W) |
|
Print |
|
Advanced Materials & Chemicals |
|
Brand |
|
Total |
Revenue |
|
$ |
(111 |
) |
|
$ |
21 |
|
|
$ |
- |
|
$ |
(90 |
) |
Operational EBITDA
* |
|
$ |
13 |
|
|
$ |
11 |
|
|
$ |
1 |
|
$ |
25 |
|
* Total Operational EBITDA is a non-GAAP financial measure. The
reconciliation between GAAP and non-GAAP measures is provided in
Appendix A of this press release.
** The impact of foreign exchange represents the foreign
exchange impact using average foreign exchange rates for the three
or twelve months ended December 31, 2022, rather than the actual
average exchange rates in effect for the three or twelve months
ended December 31, 2023.
Eastman Business Park segment is not a reportable segment and is
excluded from the table above.
About KodakKodak (NYSE: KODK) is a leading
global manufacturer focused on commercial print and advanced
materials & chemicals. With 79,000 worldwide patents earned
over 130 years of R&D, we believe in the power of technology
and science to enhance what the world sees and creates. Our
innovative, award-winning products, combined with our
customer-first approach, make us the partner of choice for
commercial printers worldwide. Kodak is committed to environmental
stewardship, including industry leadership in developing
sustainable solutions for print. For additional information on
Kodak, visit us at kodak.com, or follow us on
Twitter @Kodak and LinkedIn.
Cautionary Statement Regarding Forward-Looking
Statements
This press release includes “forward-looking statements” as that
term is defined under the Private Securities Litigation Reform Act
of 1995.
Forward-looking statements include statements concerning Kodak’s
plans, objectives, goals, strategies, future events, future revenue
or performance, capital expenditures, liquidity, investments,
financing needs and business trends and other information that is
not historical information. When used in this press release, the
words “estimates,” “expects,” “anticipates,” “projects,” “plans,”
“intends,” “believes,” “predicts,” “forecasts,” “strategy,”
“continues,” “goals,” “targets” or future or conditional verbs,
such as “will,” “should,” “could,” or “may,” and similar words and
expressions, as well as statements that do not relate strictly to
historical or current facts, are intended to identify
forward-looking statements. All forward-looking statements,
including management’s examination of historical operating trends
and data, are based upon Kodak’s current expectations and
assumptions. Forward-looking statements are subject to risks,
uncertainties and other factors that could cause actual results to
differ materially from historical results or those expressed in or
implied by such forward-looking statements.
Important factors that could cause actual events or results to
differ materially from the forward-looking statements include,
among others, the risks and uncertainties described in more detail
in Kodak’s Annual Report on Form 10-K for the year ended
December 31, 2023 under the headings “Business,” “Risk
Factors,” “Legal Proceedings,” and/or “Management’s Discussion and
Analysis of Financial Condition and Results of Operations–Liquidity
and Capital Resources” and in other filings Kodak makes with the
U.S. Securities and Exchange Commission from time to time, as well
as the following: Kodak’s ability to improve and
sustain its operating structure, cash flow, profitability and other
financial results; Kodak’s ability to achieve strategic objectives,
cash forecasts, financial projections, and projected growth;
Kodak’s ability to achieve the financial and operational results
contained in its business plans; Kodak’s ability to obtain
additional or alternate financing if and as needed, Kodak’s
continued ability to manage world-wide cash through inter-company
loans, distributions and other mechanisms, and Kodak’s ability to
provide or facilitate financing for its customers; Kodak’s ability
to fund continued investments, capital needs, collateral
requirements and restructuring payments and service its debt and
Series B Preferred Stock and Series C Preferred Stock; Changes in
foreign currency exchange rates, commodity prices, interest rates
and tariff rates; the impact of the global economic environment,
including inflationary pressures, geopolitical issues such as the
war in Ukraine and the conflicts involving Israel, medical
epidemics, and Kodak’s ability to effectively mitigate the
associated increased costs of aluminum and other raw materials,
energy, labor, shipping, delays in shipment and production times,
and fluctuations in demand; Kodak’s ability to effectively compete
with large, well-financed industry participants or with competitors
whose cost structure is lower than Kodak’s; the performance by
third parties of their obligations to supply products, components
or services to Kodak and Kodak’s ability to address supply chain
disruptions and continue to obtain raw materials and components
available from single or limited sources of supply, which may be
adversely affected by the war in Ukraine, the conflicts involving
Israel, and residual effects of the COVID-19 pandemic; Kodak’s
ability to comply with the covenants in its various credit
facilities; Kodak’s ability to effectively anticipate technology
and industry trends and develop and market new products, solutions
and technologies, including products based on its technology and
expertise that relate to industries in which it does not currently
conduct material business; Kodak’s ability to effect strategic
transactions, such as investments, acquisitions, strategic
alliances, divestitures and similar transactions, or to achieve the
benefits sought to be achieved from such strategic transactions;
Kodak’s ability to discontinue, sell or spin-off certain non-core
businesses or operations, or otherwise monetize assets; the impact
of the investigations, litigation and claims arising out of the
circumstances surrounding the announcement on July 28, 2020, by the
U.S. International Development Finance Corporation of the signing
of a non‐binding letter of interest to provide a subsidiary of
Kodak with a potential loan to support the launch of an initiative
for the manufacture of pharmaceutical ingredients for essential
generic drugs; and the potential impact of force majeure events,
cyber‐attacks or other data security incidents that could disrupt
or otherwise harm Kodak’s operations.
Future events and other factors may cause Kodak’s actual results
to differ materially from the forward-looking statements. All
forward-looking statements attributable to Kodak or persons acting
on its behalf apply only as of the date of this press release and
are expressly qualified in their entirety by the cautionary
statements included or referenced in this press release. Kodak
undertakes no obligation to update or revise forward-looking
statements to reflect events or circumstances that arise after the
date made or to reflect the occurrence of unanticipated events,
except as required by law.
APPENDICES
In this fourth quarter and full year 2023 financial results news
release, reference is made to the following non-GAAP financial
measures:
- Operational EBITDA; and
- Revenues and Operational EBITDA on
a constant currency basis.
Kodak believes that these non-GAAP measures represent important
internal measures of performance. Accordingly, where they are
provided, it is to give investors the same financial data
management uses with the belief that this information will assist
the investment community in properly assessing the underlying
performance of Kodak, its financial condition, results of
operations and cash flow.
Kodak’s segment measure of profit and loss is an adjusted
earnings before interest, taxes, depreciation and amortization
(“Operational EBITDA”). Operational EBITDA represents the earnings
(loss) from continuing operations excluding the provision for
income taxes; non-service cost components of pension and other
postemployment benefits income; depreciation and amortization
expense; restructuring costs and other; stock-based compensation
expense; consulting and other costs; idle costs; other operating
expense (income); loss on early extinguishment of debt; interest
expense; and other (income) charges, net.
The change in revenues and Operational EBITDA on a constant
currency basis, as presented in this financial results news
release, is calculated by using average foreign exchange rates for
the three or twelve months ended December 31, 2022, rather than the
actual average exchange rates in effect for the three or twelve
months ended December 31, 2023.
The following table reconciles the most directly comparable GAAP
measure of Net Income to Operational EBITDA and Operational EBITDA
on a constant currency basis for the three months ended December
31, 2023 and 2022, respectively:
(in
millions) |
Q4 2023 |
|
Q4 2022 |
|
$ Change |
|
% Decline |
Net Income |
$ |
5 |
|
|
$ |
7 |
|
|
$ |
(2 |
) |
|
-29 |
% |
All other |
|
1 |
|
|
|
(1 |
) |
|
|
2 |
|
|
|
Depreciation and
amortization |
|
7 |
|
|
|
7 |
|
|
|
- |
|
|
|
Restructuring costs and
other |
|
1 |
|
|
|
10 |
|
|
|
(9 |
) |
|
|
Stock based compensation |
|
1 |
|
|
|
1 |
|
|
|
- |
|
|
|
Consulting and other
costs(2) |
|
(3 |
) |
|
|
(9 |
) |
|
|
6 |
|
|
|
Idle costs(3) |
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
Other operating expense
(income), net |
|
6 |
|
|
|
(1 |
) |
|
|
7 |
|
|
|
Interest expense |
|
16 |
|
|
|
11 |
|
|
|
5 |
|
|
|
Pension income excluding
service cost component |
|
(39 |
) |
|
|
(21 |
) |
|
|
(18 |
) |
|
|
Other charges, net |
|
1 |
|
|
|
(1 |
) |
|
|
2 |
|
|
|
Provision for income
taxes |
|
4 |
|
|
|
3 |
|
|
|
1 |
|
|
|
Operational
EBITDA |
$ |
2 |
|
|
$ |
7 |
|
|
$ |
(5 |
) |
|
-71 |
% |
Impact of foreign
exchange(5) |
|
(2 |
) |
|
|
|
|
(2 |
) |
|
|
Operational EBITDA on
a constant currency basis |
$ |
- |
|
|
$ |
7 |
|
|
$ |
(7 |
) |
|
-100 |
% |
The following table reconciles the most directly comparable GAAP
measure of Net Income to Operational EBITDA and Operational EBITDA
on a constant currency basis for the twelve months ended December
31, 2023 and 2022, respectively:
(in
millions) |
FY 2023 |
|
FY 2022 |
|
$ Change |
|
% Improvement |
Net Income |
$ |
75 |
|
|
$ |
26 |
|
|
$ |
49 |
|
|
188 |
% |
All other |
|
(2 |
) |
|
|
(3 |
) |
|
|
1 |
|
|
|
Depreciation and
amortization |
|
30 |
|
|
|
29 |
|
|
|
1 |
|
|
|
Restructuring costs and
other(1) |
|
10 |
|
|
|
13 |
|
|
|
(3 |
) |
|
|
Stock based compensation |
|
7 |
|
|
|
5 |
|
|
|
2 |
|
|
|
Consulting and other
costs(2) |
|
(13 |
) |
|
|
(2 |
) |
|
|
(11 |
) |
|
|
Idle costs(3) |
|
3 |
|
|
|
3 |
|
|
|
- |
|
|
|
Other operating expense
(income), net(4) |
|
6 |
|
|
|
(1 |
) |
|
|
7 |
|
|
|
Interest expense(4) |
|
52 |
|
|
|
40 |
|
|
|
12 |
|
|
|
Pension income excluding
service cost component(4) |
|
(161 |
) |
|
|
(98 |
) |
|
|
(63 |
) |
|
|
Loss on early extinguishment
of debt(4) |
|
27 |
|
|
|
- |
|
|
|
27 |
|
|
|
Other (income) charges,
net(4) |
|
(1 |
) |
|
|
1 |
|
|
|
(2 |
) |
|
|
Provision for income
taxes(4) |
|
12 |
|
|
|
5 |
|
|
|
7 |
|
|
|
Operational
EBITDA |
$ |
45 |
|
|
$ |
18 |
|
|
$ |
27 |
|
|
150 |
% |
Impact of foreign
exchange(5) |
|
(2 |
) |
|
|
|
|
(2 |
) |
|
|
Operational EBITDA on
a constant currency basis |
$ |
43 |
|
|
$ |
18 |
|
|
$ |
25 |
|
|
139 |
% |
Footnote Explanations:
(1) |
Restructuring costs and other for the twelve months ended December
31, 2023 and 2022 included $7 million and $10 million,
respectively, which were reported as Restructuring costs and other
and $3 million in each period representing inventory write-downs
which were reported as Cost of revenues. |
(2) |
Consulting and other costs are
primarily professional services and internal costs associated with
certain corporate strategic initiatives, investigations and
litigation. Consulting and other costs includes $15 million and $10
million of income in the twelve months ended December 31, 2023 and
2022, respectively, and $3 million and $10 million of income in the
three months ended December 31, 2023 and 2022, respectively,
representing insurance reimbursement of legal costs previously paid
by the Company associated with investigations and litigation
matters. |
(3) |
Consists of third-party costs
such as security, maintenance, and utilities required to maintain
land and buildings in certain locations not used in any Kodak
operations and the costs, net of any rental income received, of
underutilized portions of certain properties. |
(4) |
As reported in the Consolidated
Statement of Operations. |
(5) |
The impact of foreign exchange is
calculated by using average foreign exchange rates for the three or
twelve months ended December 31, 2022, rather than the actual
average exchange rates in effect for the three or twelve months
ended December 31, 2023 |
A. FINANCIAL STATEMENTS
EASTMAN KODAK
COMPANY |
|
|
|
|
CONSOLIDATED STATEMENT
OF OPERATIONS (Unaudited) |
|
|
|
|
|
|
|
|
|
(in millions) |
|
Three Months Ended |
|
|
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues |
|
|
|
|
Sales |
|
$ |
229 |
|
|
$ |
249 |
|
Services |
|
|
46 |
|
|
|
56 |
|
Total revenues |
|
|
275 |
|
|
|
305 |
|
Cost of revenues |
|
|
|
|
Sales |
|
|
194 |
|
|
|
223 |
|
Services |
|
|
34 |
|
|
|
39 |
|
Total cost of revenues |
|
|
228 |
|
|
|
262 |
|
Gross profit |
|
|
47 |
|
|
|
43 |
|
Selling, general and
administrative expenses |
|
|
45 |
|
|
|
30 |
|
Research and development
costs |
|
|
9 |
|
|
|
8 |
|
Restructuring costs and
other |
|
|
— |
|
|
|
7 |
|
Other operating expense (income),
net |
|
|
6 |
|
|
|
(1 |
) |
Loss from operations before
interest expense, pension income excluding service cost component,
other charges (income), net and income taxes |
|
|
(13 |
) |
|
|
(1 |
) |
Interest expense |
|
|
16 |
|
|
|
11 |
|
Pension income excluding service
cost component |
|
|
(39 |
) |
|
|
(21 |
) |
Other charges (income), net |
|
|
1 |
|
|
|
(1 |
) |
Earnings from operations before
income taxes |
|
|
9 |
|
|
|
10 |
|
Provision for income taxes |
|
|
4 |
|
|
|
3 |
|
NET EARNINGS |
|
$ |
5 |
|
|
$ |
7 |
|
EASTMAN KODAK
COMPANY |
|
|
|
CONSOLIDATED STATEMENT
OF CASH FLOW (Unaudited) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
December 31, |
(in millions) |
|
2023 |
|
|
|
2022 |
|
Cash flows from operating
activities: |
|
|
|
Net earnings |
$ |
5 |
|
|
$ |
7 |
|
Adjustments to reconcile to net
cash provided by operating activities: |
|
|
|
Depreciation and amortization |
|
7 |
|
|
|
7 |
|
Pension and other postretirement income |
|
(36 |
) |
|
|
(13 |
) |
Change in fair value of the Preferred Stock and Convertible Notes
embedded derivatives |
|
— |
|
|
|
(2 |
) |
Asset Impairments |
|
5 |
|
|
|
1 |
|
Stock based compensation |
|
1 |
|
|
|
1 |
|
Non-cash changes in workers' compensation and other employee
benefit reserves |
|
2 |
|
|
|
(2 |
) |
Net loss on sale of assets |
|
1 |
|
|
|
— |
|
Benefit from deferred income taxes |
|
(1 |
) |
|
|
— |
|
Increase in trade receivables |
|
— |
|
|
|
(5 |
) |
Increase in miscellaneous receivables |
|
(4 |
) |
|
|
(2 |
) |
Decrease in inventories |
|
23 |
|
|
|
43 |
|
Increase (decrease) in trade accounts payable |
|
1 |
|
|
|
(17 |
) |
Decrease in liabilities excluding borrowings and trade
payables |
|
(2 |
) |
|
|
(10 |
) |
Other items, net |
|
15 |
|
|
|
6 |
|
Total adjustments |
|
12 |
|
|
|
7 |
|
Net cash provided by operating activities |
|
17 |
|
|
|
14 |
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
Additions to properties |
|
(17 |
) |
|
|
(12 |
) |
Net cash used in investing activities |
|
(17 |
) |
|
|
(12 |
) |
|
|
|
|
Cash flows from financing
activities: |
|
|
|
Preferred stock cash dividend payments |
|
(1 |
) |
|
|
(1 |
) |
Finance lease payments |
|
(1 |
) |
|
|
(1 |
) |
Net cash used in financing activities |
|
(2 |
) |
|
|
(2 |
) |
Effect of exchange rate changes
on cash, cash equivalents and restricted cash |
|
5 |
|
|
|
6 |
|
Net increase in cash, cash
equivalents and restricted cash |
|
3 |
|
|
|
6 |
|
Cash, cash equivalents and
restricted cash, beginning of period |
|
374 |
|
|
|
280 |
|
Cash, cash equivalents and
restricted cash, end of period |
$ |
377 |
|
|
$ |
286 |
|
EASTMAN KODAK
COMPANY |
|
|
|
|
CONSOLIDATED STATEMENT
OF OPERATIONS |
|
|
|
|
|
|
|
|
|
(in millions, except per share
data) |
|
Twelve Months Ended |
|
|
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues |
|
|
|
|
Sales |
|
$ |
917 |
|
|
$ |
983 |
|
Services |
|
|
200 |
|
|
|
222 |
|
Total revenues |
|
|
1,117 |
|
|
|
1,205 |
|
Cost of revenues |
|
|
|
|
Sales |
|
|
765 |
|
|
|
885 |
|
Services |
|
|
142 |
|
|
|
150 |
|
Total cost of revenues |
|
|
907 |
|
|
|
1,035 |
|
Gross profit |
|
|
210 |
|
|
|
170 |
|
Selling, general and
administrative expenses |
|
|
159 |
|
|
|
153 |
|
Research and development
costs |
|
|
34 |
|
|
|
34 |
|
Restructuring costs and
other |
|
|
7 |
|
|
|
10 |
|
Other operating expense (income),
net |
|
|
6 |
|
|
|
(1 |
) |
Earnings (loss) from continuing
operations before interest expense, pension income excluding
service cost component, loss on early extinguishment, other
(income) charges, net and income taxes |
|
|
4 |
|
|
|
(26 |
) |
Interest expense |
|
|
52 |
|
|
|
40 |
|
Pension income excluding service
cost component |
|
|
(161 |
) |
|
|
(98 |
) |
Loss on early extinguishment of
debt |
|
|
27 |
|
|
|
— |
|
Other (income) charges, net |
|
|
(1 |
) |
|
|
1 |
|
Earnings from continuing
operations before income taxes |
|
|
87 |
|
|
|
31 |
|
Provision for income taxes |
|
|
12 |
|
|
|
5 |
|
NET EARNINGS |
|
$ |
75 |
|
|
$ |
26 |
|
|
|
|
|
|
Basic earnings per share
attributable to Eastman Kodak Company common shareholders |
|
$ |
0.71 |
|
|
$ |
0.16 |
|
|
|
|
|
|
Diluted earnings per share
attributable to Eastman Kodak Company common shareholders |
|
$ |
0.67 |
|
|
$ |
0.16 |
|
The notes accompanying the financial statements contained in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2023 are an integral part of these consolidated financial
statements.
EASTMAN KODAK
COMPANY |
|
|
|
|
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION |
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
(in millions) |
|
|
2023 |
|
|
|
2022 |
|
ASSETS |
|
|
|
|
Cash and cash equivalents |
|
$ |
255 |
|
|
$ |
217 |
|
Trade receivables, net of
allowances of $8 and $7, respectively |
|
|
195 |
|
|
|
177 |
|
Inventories, net |
|
|
217 |
|
|
|
237 |
|
Other current assets |
|
|
45 |
|
|
|
48 |
|
Current assets held for sale |
|
|
— |
|
|
|
2 |
|
Total current assets |
|
|
712 |
|
|
|
681 |
|
Property, plant and equipment,
net |
|
|
169 |
|
|
|
154 |
|
Goodwill |
|
|
12 |
|
|
|
12 |
|
Intangible assets, net |
|
|
24 |
|
|
|
28 |
|
Operating lease right-of-use
assets |
|
|
30 |
|
|
|
39 |
|
Restricted cash |
|
|
110 |
|
|
|
62 |
|
Pension and other postretirement
assets |
|
|
1,216 |
|
|
|
1,233 |
|
Other long-term assets |
|
|
82 |
|
|
|
76 |
|
TOTAL ASSETS |
|
$ |
2,355 |
|
|
$ |
2,285 |
|
|
|
|
|
|
LIABILITIES, REDEEMABLE
CONVERTIBLE PREFERRED STOCK AND EQUITY |
|
|
|
|
Accounts payable, trade |
|
$ |
125 |
|
|
$ |
134 |
|
Short-term borrowings and current
portion of long-term debt |
|
|
1 |
|
|
|
1 |
|
Current portion of operating
leases |
|
|
13 |
|
|
|
15 |
|
Other current liabilities |
|
|
144 |
|
|
|
143 |
|
Total current liabilities |
|
|
283 |
|
|
|
293 |
|
Long-term debt, net of current
portion |
|
|
457 |
|
|
|
316 |
|
Pension and other postretirement
liabilities |
|
|
237 |
|
|
|
230 |
|
Operating leases, net of current
portion |
|
|
24 |
|
|
|
31 |
|
Other long-term liabilities |
|
|
213 |
|
|
|
171 |
|
Total liabilities |
|
|
1,214 |
|
|
|
1,041 |
|
|
|
|
|
|
Commitments and Contingencies
(Note 11) |
|
|
|
|
|
|
|
|
|
Redeemable, convertible preferred
stock, no par value, $100 per share liquidation preference |
|
|
210 |
|
|
|
203 |
|
|
|
|
|
|
Equity |
|
|
|
|
Common stock, $0.01 par
value |
|
|
— |
|
|
|
— |
|
Additional paid in capital |
|
|
1,156 |
|
|
|
1,160 |
|
Treasury stock, at cost |
|
|
(11 |
) |
|
|
(11 |
) |
Accumulated deficit |
|
|
(495 |
) |
|
|
(570 |
) |
Accumulated other comprehensive
income |
|
|
281 |
|
|
|
462 |
|
Total shareholders’ equity |
|
|
931 |
|
|
|
1,041 |
|
TOTAL LIABILITIES,
REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY |
|
$ |
2,355 |
|
|
$ |
2,285 |
|
The notes accompanying the financial statements contained in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2023 are an integral part of these consolidated financial
statements.
EASTMAN KODAK
COMPANY |
|
|
|
|
CONSOLIDATED STATEMENT
OF CASH FLOW |
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
December 31, |
(in millions) |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating
activities: |
|
|
|
|
Net earnings |
|
$ |
75 |
|
|
$ |
26 |
|
Adjustments to reconcile to net
cash provided by (used in) operating activities: |
|
|
|
|
Depreciation and amortization |
|
|
30 |
|
|
|
29 |
|
Pension and other postretirement income |
|
|
(145 |
) |
|
|
(77 |
) |
Change in fair value of the Preferred Stock and Convertible Notes
embedded derivatives |
|
|
2 |
|
|
|
(3 |
) |
Asset Impairments |
|
|
5 |
|
|
|
1 |
|
Stock based compensation |
|
|
7 |
|
|
|
5 |
|
Non-cash changes in workers' compensation and other employee
benefit reserves |
|
|
(1 |
) |
|
|
(15 |
) |
Loss on early extinguishment of debt |
|
|
27 |
|
|
|
— |
|
Benefit from deferred income taxes |
|
|
(1 |
) |
|
|
(3 |
) |
Increase in trade receivables |
|
|
(16 |
) |
|
|
(12 |
) |
Decrease (increase) in miscellaneous receivables |
|
|
6 |
|
|
|
(1 |
) |
Decrease (increase) in inventories |
|
|
19 |
|
|
|
(31 |
) |
Decrease in trade accounts payable |
|
|
(14 |
) |
|
|
(12 |
) |
Increase (decrease) in liabilities excluding borrowings and trade
payables |
|
|
21 |
|
|
|
(36 |
) |
Other items, net |
|
|
23 |
|
|
|
13 |
|
Total adjustments |
|
|
(37 |
) |
|
|
(142 |
) |
Net cash provided by (used in) operating activities |
|
|
38 |
|
|
|
(116 |
) |
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
Additions to properties |
|
|
(32 |
) |
|
|
(31 |
) |
Purchase of equity interest |
|
|
— |
|
|
|
(25 |
) |
Net cash used in investing activities |
|
|
(32 |
) |
|
|
(56 |
) |
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
Net proceeds from Amended and Restated Term Loan Credit
Agreement |
|
|
435 |
|
|
|
— |
|
Net proceeds from Original Term Loan Credit Agreement |
|
|
— |
|
|
|
49 |
|
Repayment of Original Term Loan Credit Agreement |
|
|
(316 |
) |
|
|
— |
|
Repayment of Convertible Notes |
|
|
(28 |
) |
|
|
— |
|
Other debt acquisition costs |
|
|
(1 |
) |
|
|
— |
|
Preferred stock cash dividend payments |
|
|
(4 |
) |
|
|
(4 |
) |
Treasury stock purchases |
|
|
— |
|
|
|
(1 |
) |
Finance lease payments |
|
|
(1 |
) |
|
|
(1 |
) |
Net cash provided by financing activities |
|
|
85 |
|
|
|
43 |
|
Effect of exchange rate changes
on cash, cash equivalents and restricted cash |
|
|
— |
|
|
|
(8 |
) |
Net increase (decrease) in cash,
cash equivalents and restricted cash |
|
|
91 |
|
|
|
(137 |
) |
Cash, cash equivalents and
restricted cash, beginning of period |
|
|
286 |
|
|
|
423 |
|
Cash, cash equivalents and
restricted cash, end of period |
|
$ |
377 |
|
|
$ |
286 |
|
The notes accompanying the financial statements contained in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2023 are an integral part of these consolidated financial
statements.
Media Contact:Kurt Jaeckel,
Kodak, +1 585-490-8646, kurt.jaeckel@kodak.com
Investor Contact:Anthony
Redding, Kodak, +1 585-724-4053, shareholderservices@kodak.com
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