KODK - Earnings call transcript Q2 2018

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Operator

Good day, ladies and gentlemen, and welcome to the Eastman Kodak Q2 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] And I would now like to introduce your host for today's conference, Mr. Bill Love. begin. may you Sir,

Bill Love

X:XX and issues Company's everyone. Investor Treasurer second for Form quarter call. to Sandra its second Kodak Love, report the release quarterly Relations. am on Eastman Kodak's on At earnings XXXX Kodak and tomorrow quarter XXXX. this good you, afternoon, I filed and afternoon, XX-Q Bill Welcome p.m. its Thank of Director results of financial

our the access for and Investor Center presentation investor.kodak.com. on may You today's at webcast call

or events. undertakes be could events certain their current of entirety forward-looking reflect events the to behalf or Act obligation expectations forward-looking will no update may based made Kodak defined acting that referenced expressly we may statements. these the Private Reform presentation forward-looking that or materially assumptions. statements as or Kodak's or or Kodak the presentation. call, differ Litigation to time other by date differ Commission in attributable qualified factors from from actual of results are events anticipated filings only include, apply today's All in forward During reflect that Future the Kodak's making cause of may date and this various time. There with by the included arise of to to other upon to the statements results its be forward-looking or forward-looking cautionary uncertainties unanticipated statements on results statements as Securities and in detail U.S. cause to expressed the revise actual looking All after statements materially XXXX. Exchange differ persons statements others, are this these circumstance described Securities in forward-looking to from the risks, factors Kodak's the among and Important or from more statements. in factors and

comparable Jeff over GAAP our financial website will and release on the Kodak's open update and on measures. just with provided to measures release at directly the and Then a Dave the Bullwinkle, and Kodak's issued Financial on Jeff Center divisional deemed investor.kodak.com. CEO, of remarks, non-GAAP have contains Kodak provide and Jeff are summarize the EBITDA to in review Officer review Chief of questions. for Reconciliations Chief call our that quarter, before the Kodak. the Investor I of some measures to we provided Clarke, Speakers are reductions been Executive most second provide the addition, will Dave opening call presentation cost within up In certain cash today's performance now results, Officer will Clarke. and net earnings quarter second operational it performance. turn presentation

Jeff Clarke

for the Welcome QX everyone and joining thank for investor Kodak. you call

significant the divisional for second more on On company talk of the year XXXX the welcome XXXX loan. to discussing maturity initiatives September progress addressing making the company's to questions. the are like outlook will flow, and net about I'll and we several by our cost results our term start a call which lien quarter including our cash update, we will on the follow and after discussion cash first full with structure details reduction of earnings, strengthen Dave XXXX forecast. today, then capital your of I'd XXXX

$XX over EBITDA generating Division. revenue process is and This million we Packaging operational of the $XXX First, last months. XX sell Flexographic of in strong are a million engaged our , a to business

buyers. interest this We from strategic have business potential already and received strong financial in multiple,

a agreement loan transactions, letter into a would we of confidential intent a us maximum dollar, and stake with value time. Due with the our elaborate entered of for non-binding provide at XX-month not permit achieve loan. and first a to way a significant thoughtful will $XXX shareholders. these for further term to sales the lien approach sensitive process this lender we've in in nature and existing The Second, our

actions initiated we've to an annual with cost reduce Third, $XX expected further million. savings of

Let has evaluating order five well and time for the years the and to our packaging to the we opportunities demonstrating of the right Kodak is me this asset. deleverage Kodak example the FPD been last decision strong innovation sell to last shareholders. years has several to performed this division. an and valuable monetization value disruptive believe the growth is discuss marketplace. Flexographic is to excellent company FPD exceptionally maximize bringing for monetize in continued Kodak's

operational reported As I $XX in million. $XXX said, revenues with over million last XX FPD of of months EBITDA --for the

people. and this FPD with of growth FPD EBITDA XXX staff growth. approximately During employs demonstrated XX% has period growth strong X% currently operational a revenue

transaction, of I Following capital company's while the on to QX concern workflow allow across and increase demonstrated software Enterprise of filing. in of growing focus licensing, XX-Q will The sale provide improved engines its packaging growth confident repay Flexographic our to materials printing the film and has us disclosure brand the debt. this division continuing about am and commercial advanced invest solutions Kodak's assessment SONORA, Inkjet, structure to the Form complete company its industries. term the ability and included

US going liquidity, Kodak's these in of the reporting cover and requirements. and will GAAP capital probable and Dave not are concern company's structure GAAP the disclosure within plans therefore accounting rules. are However, not call, solely control under deemed Later

the and adjusted XXXX. Kodak adjust our the business, I'll quarter EBITDA improvements Operational the impact $X strengthening compared $X quarter prior cost-cutting was EBITDA operational year aluminum quarter. the to Operational operational adjusted $X its $XXX the decline further operational inkjet EBITDA costs million compared adjusted Now product XX% the $X million from company's of we When million quarter. by prior $XXX million This higher year-on-year review results. the down delivered $X or Kodak's On million, the improvement increase Kodak's consumer quarter when million. down EBITDA million, million of increased of quarter second When is for for expected in of second year of efforts. in of of second X, legacy reflects portfolio. $X revenues to Slide

quarter X which shown XXXX results by comparisons revenues presented a print systems division for supporting I'll on division's discussed quarter slide about the at Starting each performance constant will is year-over-year basis currency All the bottom second business quarter as be Now the X. with with comments slide on the were slide on an EBITDA XXXX. talk second of division, increase of X. pricing higher higher $X of impact $XXX declined aluminum the decline compared continued to result million, compared pressures. of to $X the by of EBITDA million, a compared year prior aluminum quarter. a higher the costs to cost $X industry X% and excluding million When as prior was million, operational Operational

impact erosion price the year-over-year average LME presenting of price declining result price headwind unit the this costs of aluminium slide supplier we and of the aluminium environment expect the increases we XXXX during over a impact announced credit The levels a prices associated of above address seven year-on-year flat $XX facing. Plate second the tariffs will London years. million. be offset appendix second June cost well we seven to half past was approximately plate quarter prices in XXXX. sales. the to As erosion price of additional cost by to prior the past historical improvements, action, in continues years. partially euro The included XXth, be in high a X%. which With exchange plate of and plate currently On aluminum metal We've are the

with For down shift result large several overall X% rate of a a decline strategy the plate was volume quarter, is increased year-over-year. This dealers.

year-over-year growth. continue We see advantaged solid to with a in our environmentally growth SONORA XX% plate

second the for in pre NX testing continuous when unit our the over During second quarter, which quarter, plates quarter equipment to prior XXX approximately XX% sales of its the color Also press doubled PSD XXX new SONORA electrophotographic of accounts ex- sales. new expanded to compared the second supply. of quarter. now in NEXFINITY, accounted are process

Moving the Enterprise Division. Systems on to Inkjet

second offset was EBITDA XXXX, due $X in compared compared the a reflecting million, revenues expected prior Operational the to to legacy partially by the legacy cost flat $XX quarter the of prior consumables. For year improvements for quarter million the consumables. of million, our EISD quarter, decline second quarter $X decline were

by PROSPER with our and declined annuities which the million is are expectation. flat consistent For VERSAMARK revenues quarter, $X

the continue in now meaningful and technology original manufacturers still in we of second the focused is to hybrid equipment to commercialization impacts on investment are track in This next and generation in writing XXXX. the evaluation quarter. systems applications, the available business Additionally, in invest place ULTRASTREAM with XXXX, ULTRASTREAM, availability and on for starting to ability product kits

offset the by For from of larger CTP million to of expected volume were other in of million, primarily an mix NX NX FLEXCEL quarter decline consumables NX systems FLEXCEL and primarily $X products in and the Packaging marketing to product the install prior and due increase in FLEXCEL improvements the base Divisions, in activities. packaging million to flat in $X equipment to result compared quarter compared Flexographic by when the revenues compared FLEXCEL development, revenues improvements was the reflecting of prior NX timing quarter, the Operational prior volume offset consumables the placements investment EBITDA the $XX quarter. sales

NX volume X% NX FLEXCEL compared grew and to FLEXCEL plate revenues increased quarter. For the the prior quarter, X%

in plant in invest begin Westford the of is for FLEXCEL product fulfill expansion Factory and development, to increased demand XXXX. continue early to new The We plates. Oklahoma production to infrastructure our NX expected

the was digital in prior Workflow focused and continuing quarter compared manufacturing million, as analytic $X flat by primarily cloud workflow volume Solutions Software licenses for volume costs was were Unified result the million Solutions. which Solutions million, Operational important and $X workflow investments lower are quarter enhancements a primarily the of For software, declines driven one services, negative the make in offsetting packaging to a to a $XX to XXXX. portfolio to We're offerings. EBITDA well division, compared quarter, revenues of two our Unified The lower Workflow as decline year services. and in professional decrease in in

will Eric will focus taken $X to the Mahe to his to due flat SSD. our in to business and driven expected offset print and new chemicals. brand in of in and entrepreneurial ink unfavorable a million and million, President materials not result revenues year prior expected the revenue licensing lower inkjet actions role of quarter. decline due industrial picture his compared quarter, the bring the consumer compared Eric also current significantly our industrial Division offset XD costs flat was improved EBP revenue leading inkjet of $X of Park SG&A, innovative electronics. to Continue rental prior absorb addition primarily Eastman quarter CFD operational film a final Film year investments. to negative to licensing advanced year and of change volume prior and a quarter. for the focus an consumer helps and revenues for million prior income in sales in partially role to we on when of higher Consumer division other second operational of year Operational in the consumer cost EBP decline EBITDA EBITDA Business lower the printers, in the Technology lower light announced compared higher to role blocking on and and take higher our consumables did the units. by Due the and inkjet in compared timing base AMXD CFD. brand sharpen fixed President For will Printing quarter, as EBITDA motion by cost volume by productions. installed to In were to when chemicals by improvement approach was films and This The quarter. smaller CFD materials of $XX in Division, of into

account the of slide to Licensing quarter. prior FLEXCEL, I a SONORA, update technologies our prior turning total which increase year now engines businesses grow which to advanced overall The portfolio. and XX% provide X. and Solutions, is revenues, Now compared year will includes These two on point Software quarter. when growth the an PROSPER, in Brand for X%

licensing our Business Eastern businesses other of and total Service and plates, and businesses, strategic IP to and revenues. include Toner represent XX% continue packaging Our products other NEXPRESS Park film, CTP related

in consumer cash businesses for flow these the stated we Digimaster which Versamark, of and As include the provide and consistent total account revenues. company. past, The for revenues planned inkjet, strong businesses our X% declining

annuity product the past, stated development these in product orderly new to lines decline decision installed base. we the was an the manage stop expected and and As product where are in made

Moving guidance provide $X.X to want remains to guidance. $X.X full year revenue to XXXX We slide XXXX range within billion. X. update an billion of expected to

new due to reductions. $XX agreements, licensing $X of offset to of the EBITDA timing change reflects $X and Our supplier million impact brand by of $XX guidance and related revised aluminum the commercialization to XXXX costs million. operational is million products This to million increased cost

year-end We expect of between in balance to and of with second half generate projected million. XXXX the million cash a cash $XXX $XXX

Our costs result of revised in to the overall of full the impacts use is of between changes and of a $XX working related to This cash timing $XX use million asset is capital, and timing to and other products reductions. million, aluminum of related million the by $XX sales cost year and million offset now foreign agreements, $XX new license of million. brand exchange in $X commercialization

now deliver For our flow I'll sale net in Packaging discuss the details our process operations it for the the improving actions to cash continuing to strategic the focused restructuring to XXXX, our on second priorities to announced turn areas. performance. of Dave half be of efficiency and and over earnings will growth Flexographic Division, and

Dave Bullwinkle

and the XXth, Jeff Form Securities Exchange XX Today, afternoon. for good Commission. ended filed its and with XXXX quarter company the the Thanks -Q June

As filing always, you this I in its recommend entirety. read

release actions. read in note disclosure its see concern growing As assessment Jeff, mentioned precise in to XX-Q mitigating XX-Q the contained Kodak our Please and in by quarter plan has to second X disclosure explained Form financial a filing. the included and regarding its statements the company's press

summary, a sell existing significantly to costs improve As the term loan plan uncertainty. reduce to Flexographic Division this operating liquidity, Packaging to the mitigate refinance we and

of of about company's as as Packaging term our optimistic the Division, well refinancing debt. sale We anticipated are the the potential Flexographic

on these discuss plans share Starting overview results with Kodak's $XX and our we our for XXXX. now US provided of XX, as quarter the not probable action on on a GAAP decrease will However, the is company of results cost accounting million, position, the balance cash are deemed liquidity XXXX for cost under of flow EBITDA liquidity I rules. overview and quarterly Form in disclosure cash have plans within solely update control filing. Kodak's the also not XXXX. operational structure will full-year and full I an cash further Therefore, second and outlook. are and XXth, the our details our June of slide $XXX million XX-Q

capital repay the into announced of thoughtful to will a the XX to million shareholders. be it entered to loan significantly used -month pursue achieve $XXX range Under value to credit this of The projected adviser a the $XXX maximum expect of for agreement, the on is September second structure. half would million for million $XXX proceeds dollar Xrd, we We XXXX a which UBS our of enable in as Packaging $XXX intent of the improve debt non-binding first would outstanding sale Kodak Division. in cash manner company sale our the balance of generate retained XXXX, a also term the have year-end to matures company's which the for order FPD from Investment letter in cash million. loan, first Bank sale lien Flexographic financial our our

addition, we later in which my savings. result $XX initiated of incremental cost additional I have will will annualized regarding remarks In million details in actions. these provide actions

flat GAAP GAAP the for $X compared million, net for financial our the XX, a as second On basis the second XXXX. XXXX results the of slide quarter. quarter we earnings of the on second release, was reported quarter income Now for in with

the depreciation XX, the of XXXX June changes in the with impacts year, million earnings XXXX, Preferred net million the and XX, million quarter six asset the a $X re-measurement the is expense the value ending in compared ended basis. months and to million for Stock June for period prior amortization six for derivative the For months related of in loss improved declined year-to-date A the the PROSPER net net embedded for $XX $X reported and $XX income Excluding Series year-over-year on

in operational XXXX. XX, declined Through the XX, operational million, presenting operational currency slide constant to million XXXX compared chemicals and prior $XX result and EBITDA unfavorable Turning earnings were $X pricing XXXX, and and growth volumes in impacts for $X by driven million aluminum by in operational divisional to mainly revenue full industrial decline November the investments was million pressures declines result in expected in and XX, to FPD million by systems and $X as $XX costs; offset results focus as partially operational announced excluding a expected Further ending FLEXCEL or aluminum million $XX EBITDA we $XX XX% due $X of million updated slide films and The increased in XXXX. are consumer June of period declines of of million. a quarter AMXD NX to on in basis, improvement ESID inkjet from and plate CFD million our in bridge six-month $X by $X of guidance PSD results EBITDA year-over-year. On the in our period. costs, by an we $XX On a actions million. year XXXX EBITDA million the of June presenting EBITDA in year taken the to XXth, Versamark second cost sharpen our driven are costs to

and $XX to impacts As tariff expect unfavorable costs. we related presented, increased of aluminum million associated

in and inkjet year full consumer our product million in XXXX. impact Changes unfavorable year. Versamark pricing impact declines to $XX unfavorable expected full in have an projected and mix on the $X a will are result million to Our

year. manufacturing implemented a Finally, impact improvements will full $XX reductions million favorable and provide cost the to

last of we $XX total XX. position XXXX, improvements. $XX represents $XX earnings Now of expected call, are productivity and million update cost QX In This manufacturing on related year-over-year cost we improvements our is $XX an savings to to million year-over-year. spoke savings on When eliminations be on shown million. slide related for million to expected

incremental The These operating provide year. this capture efforts savings and pre opportunities We and $XX million areas related approximately impacts efficiency approximately $XX Non mature productivity areas. savings of positions additional from in year-over-year. have in these The be of revenue accelerated be $X annualized an company on our expects to costs reductions in eliminate will to million headcount approximately will XXXX million $XX XXX for will businesses. reductions approximately savings cost cost million. incremental

XX. the presented $XXX ended restricted on down company quarter cash decrease down balance cash, and from XXst, the $XX performance December in million December equivalents and cash to The equivalents slide a as from million at cash, the million, XXXX, of million on $XXX second with on Moving million XXst,XXXX. $XXX cash of million $XX from million sheet XXst, and were XXXX. reported Cash $XXX March $XX company

to increase million the in Stock. compared first in period. bills to $X million million prior prior by dividend of million, During million of Cash liabilities use $XX first changes payment in payments in decrease excluding activities trade balance half, AP Cash to and Series by year the half half The payables in cash primarily period, trade flow financing the the compared the presented. of was sheet used $X was in pension million $XX flow cash of from activities lower used used reflecting XXXX quarter primarily operating operating and the primarily in decreased $XX of in liabilities cash inventory Preferred a in company's an A first million year to activities trade the in in due million taxes, $XX payables million compared $X XX $XX $ earnings, the net by in of million rebates offset as partially driven $XX decline in cash $XX of of million, $XX excluding seasonal our restructuring $XX related XXXX a primarily investing used with was million lower and receivables. Cash was a of from cash from related to on foreign activities the decrease million plans. of

Moving on to slide XX.

any Our basis, million on breakeven a of a prior on $XX to basis. range unlevered cash use of of refinancing to million and cash a outlook $XX to million an is for $X XXXX, levered use actions

and range capital of EBITDA balance million. million. of small to projected million; an million, to $XXX cash repayments $XX million generation is to requirement of operational and cash million. in collateral Our $XXX approximately the year-end The of or $XX at of Proceeds ABL cash $XX sources $X cash reduction several XXXX of working debt from prior asset million sales $X

operational $XX a cash contingent related which payments, million legacy workers disability expect business $XX compensation $XX flow. sale in cash expense related adjustment includes contributions, incremental We used the to to been pension an to to has in of these million foreign amount as to for of EBITDA million items the reconcile items presented EBITDA, consideration order projected is payments. included and therefore of of long-term

outside to of million; US and in cash XXXX interests net of the restructuring $XX of payments be will of of and income related $XX payments usage million. expenditures dividend Additional million; $XX capital cash $XX million, taxes

productivity We cash cash operations strategic opportunities to order non to and our working in will generate the performance sales, and greater asset prosecute improve liquidity. from in and opportunities efficiency company's capital

as EBITDA agreements. Finally, the our and build leverage company's in of earnings. disclosed compliance covenants the in with first primarily seasonal the XX-Q, credit by term satisfy reflects remain seasonal cash loan the under $XX working the company's XXXX quarter EBITDA To company's under lien performance, summarize as the the ratio calculated agreement used million. capital use nature secured our exceeded the particular, the to credit ratio Form our In in of covenant the second we of necessary

September operations investment reduce to term year XXXX costs, including the greater of strengthen initiated spending maturity generate operating we remainder the our to have efficiencies expect and and We of mature and cash address To over liquidity, businesses. to the our loan. of driving the actions

instructions ask the the We please participants will to questions. now questions. your open remind Operator, of to call

Operator

from August our comes of line And from question Partners. Nathaniel Mangrove first Instructions] the [Operator

is open. line Your now

Nathaniel August

several questions. have I

shows access? on million repatriate you me difficult is difficult So access you or I help could other how balance way it. maybe and cash it have was difficult much $XXX for company and the you in in that hoping to to to your is that for should And available the first overseas understand how question to sheet I of readily some is much

Jeff Clarke

other over we didn't Right, Dave, more in go through million that difficult is obviously the items. China $XX have but they

Dave Bullwinkle

China; as Jeff the yes, end US we remainder to the we between $XX $XXX million of through the Sure, world more the in America. dividends I is .At in Japan successful to which in $XXX roughly in have have access and US is in company a the cash and Latin primarily of $XX million Each China areas in about in the the million and in in quarter, Europe US. mentioned, difficult those of inter the accessing we and been loans through repatriation believe had

believe So that ability we $XX we China to have the than other adequate with access million. cash

Nathaniel August

when second My only subsidiaries? me question in on compliance you or EBITDA the on EBITDA with operational measure of measure restricted your based regards you you your you. tell term give adjusted it presented could you loan. is covenant as it the measure to presentation and Thank based that Do you us to do

Dave Bullwinkle

is the calculation on credit covenant The based definitions. agreement

covenant on as based So required under we compliance measure covenant the agreements. the credit EBITDA the

covenant the not EBITDA. at measures it's So EBITDA. arrive It operational adjustments to several has same

Nathaniel August

clear restricted only be in measured that to is And subsidiaries?

Dave Bullwinkle

do would in yes. exclude We unrestricted exclude-- we operations subsidiaries,

Nathaniel August

or covenant Could if changes any over XX changed? last the been you between months, subsidiaries? not and restricted changes unrestricted detail how me have how absent have EBITDA would And please those what for would there then

Dave Bullwinkle

resources capital that do XX-Q Form we I in and our section. sufficient and liquidity the believe detail disclose the in

there. unrestricted disclosed of exclusion subsidiaries there. So you I is direct The

Nathaniel August

if to to that had constant subsidiaries, as you on that a with be your unrestricted me scope fact compliance you think not it change be in compared would So in not would corrected covenants? restricted

Dave Bullwinkle

agreement. and We by are in afforded us adjustments are compliance credit permitted in to the with agreements, covenants credit that our as that the

Nathaniel August

question. I the Okay. tell seem when my is for began? please me process if question My to last could answer --that FPD division you doesn't strategic the selling

Jeff Clarke

But to the competitive disclose you into this is remind Yes. sure that interest very multiple go robust compelling strategic to This and not of a financial. for a we're there of that going of I process. the We're Bank running indication and of not UBS, you our parties you timing from Jeff. is understand can-- inbound reasons. process Union Switzerland, details was going I'm banker

Operator

from Tiwana Thank our the of you. line question Amer next Cowen & Company. And comes with

Your now line is open.

Amer Tiwana

How this-- effective I'm mentioned just and I going to-- XX-month can mean you do soon when till going loan. this dig guys. for Hi, you or me this some understand later-- bit is of be will you give trying in a that intent to little deal wanted it is a you this Is letter that a here? exercise you? non-binding are I to about have to color to point just going can wait you you just or --are now some $XXXmillion

Jeff Clarke

the Yes. has sheet. the disclosed. we because provisions this that color were And provide confidentially actually not on going any associated what is to Amer, other than been with non-binding term

would our there's So during this reasons on this in limited one, disclosure. process several expect we're we very would why restricted be by that you and again competitive as

Amer Tiwana

whether comment Okay. perspective to understand I May just the trying -- am be timeline. you can just on again from

about date should or closer an let's to timeline? would months If next additional due say your loan you were the think is XX I to year, maturity refi which term how that the give

Jeff Clarke

I us just would look start term XXXX that Obviously to that. that you December X, versus today again XX into loan XX within LOI. at months under the if additional not go it duration, we are we going would mean, when from are Yes, time would months give and

going at detail We into are to not point. this that go

Amer Tiwana

Okay.

Moving meaningful. issue to on starting to be aluminum is this

just me what basis? think how you to should color done some Can a comments remarks. about You mitigate made on more you we prepared go-forward in have some and your that give it on

Jeff Clarke

Okay.

the impact at impact, reminder, million million to $XX a you so of page XX, are $XX go And if half. we as first just aluminum back in

million $X tariff. We of tariff million of are and impact and are is $XX aluminium aluminum $X expecting about million which

material a the of company And million expecting quite impact the years that's talking headwind million. was million about a it in last over obviously. to couple so $XX closer year Last for we of think are I are the year to total And we $XX $XX so and here.

is aluminum themselves. aluminum where do so buy the going contract we -- go can't to year, contracts forth four four with with predict suppliers and but we Next

So are And of only good at year, next is not is believe of million about I we year. about somewhere what what headwind hedged. have about a we -- of today's going sense into got hedged exposure -- $X we an next and prices,

it's a it's very and so as hedge it of to whether headwind next years, can't particularly prices, of a of couple with months assuming contracts while but quite last this to stays at it's outside expensive to not or year, million And going over And been up buy going these material really of the gets predict be current I much nine it window. to year above four six or down. $XX

of pass pricing this of deterioration on mentioned in cost do year will had. X% the And the -- year's had into and pressure on lowest price we to of we've impact are price decreases in with aluminum down cost that So as versus my as price basis, also remarks, The expect we've pricing we've view remarks, quarter that in had are year, time And thing of the on some biggest in plate the and trying our it. we to next business. on of is half first this And announced that the the the I the raising in stability we price balancing this doing have -- I rather one many years just year-over-year marketplace. for we are price are we've second insurance than increases have many, flat we the said operational two we'd prices to some like our locking prices.

this So we some customers. pass to to our finding are ability on

Amer Tiwana

Got it.

Jeff Clarke

ahead. sure, Yes, go

Amer Tiwana

process. sales going into Without question. the Last

You Division revenue about comps the and look valuation to try are about What sort of we the $XX that mentioned think EBITDA. million here? $XXX of of million can to at Flexographic is the

Jeff Clarke

Well, all, Flexo first of performing is exceptionally Packaging well.

the driven let's three the in in the the $XXX business. this If the is of allowing a you driven of the to this years actually -- layer NX, million, is our innovative that market go that's sense category is business. strength that that grow. remind $XX packaging industry back and about called and of And thermal true I imagine you being Flex million you legacy business to the Also mask gain product share of performance by us half is give is

gave revenue growth flexible growth when X% the an basis EBITDA. packaging a and XX-month of a trailing on XX% numbers So I in in you on

which at XX% look of at just growing buyer NX Flex the you That's now growing the business, it's If X%. the XX% the rapidly. versus over what is and be buying frankly because this will

which that equals X%. the at packaging To Flex put even XX%, half a million trailing over million you years. up if grown years, and perspective, $XXX Flex down portion half grew of $XX three the XX% last up of at that So months, XX more revenue NX is $XXX the to three has to X% a from NX looked the in that legacy portion million is the and in

While EBITDA the legacy of million $XX declining overall profit piece from $XX gone has including the to million.

that very of has XX% business amount has CTP great a it's that this the se. much a and scaling has moat per lot around a spares. system of so a and is consumable, it is comes closed dynamics rapidly. the -- So from over plate significant a contracts It's It are and revenues of recurring business --

flexible a-- business it's we've this highly is expanding with branding margins a business invested the fundamentals, business in markets So great packaging factory for. attractive is that a and just

the capacity So out at the for next for buyer half decade. it's least got

that we and gone the high EBITDA. become has XX% strong underlying in level. this multiple So to that from going $XX going will command attractive This is X.X at business and . engines million forward projections million multiples very see to a of years to continued a And that of think I $XX growing

Amer Tiwana

bit talk little can for here Understood you share about market this business? a and

Jeff Clarke

Yes.

our packaging So most the because business, to overall business around growing is but to business, people get printing packaging think it's fragmented X%. a about X% industry it's hard I in arms your

three this in what business it is shifting but So of traditional growing the in shifts. it years, we're seven win around gain. we're every We've doing winning XX% market, and We're doing to by a CTP, resolution the printer. reducing only of market we in NX, flexo by the are about share to one that now see up you with we only today been as quite offset somewhere in We're us also of but market by XX% cost think Flex really about we and bit share. the from ways. the we're winning packaging, well. We're not two We're improving revere on winning XX% think

So why we an win in got attractive this business. business, it's multiple such ways that's that we and

Amer Tiwana

have. I Thank much. all you very That's

Jeff Clarke

don't have it more And for appears questions. any have I we question. time one think we

you appreciate everyone. thank I So it.

priority participating annualized areas. to the to to of million going It's with to second cost on our thank restructuring of that want everyone sale I focused process Packaging. for expect going the $XX growth continue for also we with additional $XX good day. on operations want improving we of the of up on a end the course achieve to call. top deliver strategic Flexographic of year. the Have actions For be is our this to our And on half million XXXX, efficiencies announced where be in

Operator

Ladies for conclude and gentlemen, does And have the in thank a may program. you great disconnect. Everyone you conference. This day. all participating today's

Eastman Kodak (KODK) 9 Aug 182018 Q2 Earnings call transcript