Earnings call transcript Q1 2023

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Operator

Good afternoon, and thank you for standing by. Welcome to the Eastman Kodak First Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded.

I would now like to hand the conference over to Anthony Redding. Please go ahead.

Anthony Redding

afternoon, good and you, everyone. Thank Redding, I Officer. Company's Compliance Kodak am Anthony Chief Eastman Welcome Call. XXXX Quarter to First Kodak's Earnings At XX:XX p.m. first this afternoon, on the release and issued of Kodak filed its financial Form results XX-Q its quarter XXXX. for

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

by XXXX. expectations call, be All are upon Kodak's defined forward-looking various today's Securities assumptions. Litigation forward-looking statements making statements During Private certain Reform and we as will the Act of based

to or differ expressed results factors include, may from may differ the Kodak's these uncertainties anticipated risks, statements. results with detail actual other factors materially Securities more cause from Future and to forward-looking the described be the differ statements. the events filings Important in those that in events other factors or forward-looking or materially There Kodak's statements time. cause could may others, results from actual among that to from and in time forward-looking U.S. Exchange Commission

to attributable in their acting date statements and qualified expressly statements as this on are in of by this forward-looking the the referenced only apply Kodak included entirety cautionary of All presentation. behalf presentation its persons or or

circumstances revise date occurrence no update undertakes to events after events. statements unanticipated made of arise or obligation reflect to or or Kodak to the that the forward-looking reflect

deemed that addition, the In release just presentation provided non-GAAP measures. are issued certain measures the contains and

Kodak. within release Executive today's Bullwinkle, Kodak's at most Continenza, the presentation Center and call and and the to directly our of Reconciliations Financial the Chairman Officer Chief Jim with website have comparable Executive are measures on Eastman Chief our Dave provided on GAAP Speakers investor.kodak.com. Investor Officer; in been

formal today's call. holding Q&A We will be a not during

Relations for team Investor follow-up. the available always, As is

Jim turn now over I will call Continenza. Thank to you. the

Jim Continenza

investor Kodak. call everyone. you XXXX first for joining for Thank quarter Welcome, the

Turning results pleased the reported X. company's I with XXXX. for the Slide quarter am improvement in the first to

extremely in challenging our business and generating revenues We and environment. an momentum, profit continued to gross cash improving smart build

It the investing didn't It progress note of our plan, that and result happen have executing competencies print. of to our and on overnight. long-term we the core focused materials advanced is important on made is staying

the innovated we've a and Over years, and foundation for profitability. growth X last built

focused in businesses our the the smart growth strengthened successful and financial our of driving of allows continue on core our revenue value monetizing by us new position investing have and implementation our realizing this strategy initiatives. to We offerings,

and We substrates continue and and long-term previously in to invest our layering controlled light-blocking the fabric KODALUX business. Materials storage batteries of initiatives, announced Group, for in coding Advanced including growth introduction EV energy our and Chemical

revenue see to starting are We for the businesses.

we addition, our see business. continue In to demand in growing film

be invested possible must infrastructure to profitable full meet have our in efficient stay a We and system of implementation challenging our has efficiency environments. made and terms needs our to of and customers' SAP in including reporting. us upgrade always eliminate materially We ERP in better and significant Salesforce as increase that as productivity

in continue especially our core print. business, invest print to digital We

XXXX which XXX inkjet Turbo offset and inset press. quality Press, our launched productivity X presses, PROSPER the have is groundbreaking fastest and Press, the Ultra We world's which the PROSPER rivals

we have addition, gold In many for which are decades. Inkjet standard for PhotoChrome the color launched our Inks,

to quarter is more and these which about customers. rollout maximize strategy our products, the next for hear will of designed value You productivity

customers first on they challenges customers our execute opportunities. We and Most and win. staying their address new solutions go-to-market we to win create our our continue we importantly, strategy that only developing focused because on when put

exchange year million, or $X impact first highlights by X% performance X. of quarter flat. million of adjusting unfavorable to revenues include: million, $XX decline revenues Turning for were a foreign to $XXX compared or of prior roughly $XX the Slide million the for decreased

line to cost to continue due suspend impacted This commitment affect slightly by and or chain was decision ability existing the does to our supply decision all way in EPS our to our not and increased any of service Revenue also EPS manufacturing field. issues. in sales presses

a by supply our chain as efficiency we million XX% profit our $XX There operations. was increase the here. gross or increased and trade-off We in our

We continue goal. smart revenue to on growth focus over

What does within we good know focus that others. We that and them greater competencies and on our job fall achieve do things help than And customers can execute we a our things that we profitability. for mean? that core better could

XX% and lot quarter to execution proud in XXXX, result streamlining X, attributable the I'm quarter is Our million percentage made to in compared $XX quarter, a in gross the $X investment operations. profit say, a to as our first quarter XXXX. of infrastructure decrease to of year million the generated has prior in Kodak of XXXX, in team, was partially XX% compared the which cash our the a first by and of work hard of we've

we These encouraging, of have a difficult these improvements lot of woods, we in are do to work that times. are out but still the very not understand we

intend and growth near goal profitable to in in execute plan the term sustainable smart the to future. We the our strategic revenue driving continue with of

I to will discuss financial now turn it quarter XXXX results. the over first to Dave

Dave Bullwinkle

the good Jim, Form quarter SEC. XX, ending This filed the March and for XXXX, Thanks, afternoon. its afternoon, XX-Q company the with

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

that the like XXXX. financing of transaction quarter details get occurred to the into quarter, for would first the comment I on in a Before I

and the to million the XX, provide upon $XX of amount amended discussed, million XXXX. liquidity of that minimum maintain quarterly from XX, maturity from commitments in previously million. on February minimum maintain decreased $XX existing to million date original As agreement At addition to of of to daily $XX liquidity the aggregate XXXX the a $XX February XX, ABL XXXX, requirement June credit

time implement the This with more us longer-term our solution capital flexibility additional and to to provides macroeconomic extension a given conditions. structure,

Print XX-Q, to the first Kodak the the Printing XXXX the segment. named into its changed of Additionally, segment one segment as disclosed Digital Traditional structure segment our organizational in quarter Form combine during and Printing

other made were to changes No segments. Kodak's

software Print, and Brand. and business, Chemicals Advanced VERSAMARK Solutions reportable segment business, change, business, The Electrophotographic As Printing the and of Kodak is Solutions a has of the business: Print lines of this X business. result the the Materials comprised now X segments: business Prosper Prepress

Advanced contains industrial business. The operational & Materials film All quarter. business: for of picture brand other Advanced on first is flow comprised of Functional motion printing. details the results segment now the Eastman and X and brand comprised and operations I of chemicals, is will segment results, lines licensing Chemicals Park. cash the & The full Materials share company Business the EBITDA of

Slide to Turning X.

quarter of we X%. $XX million prior in to revenue prior flat declined compared quarter, in $X by constant On $XXX currency of million a earnings As release the basis, reported the year our $XXX reported for a first decline X% revenues compared year-over-year. or to of in million the XXXX, basically year quarter we for or revenue million

significant the Jim priority continue the As pricing, mentioned, initiatives. reductions as and of to in be to these a cost recognize for company, customer-focused of the result a we profitability and initiatives improvements continue culmination

in We with to to $XX quarter. of when recognize continue increase XX% compared million profit an the improvements or gross year prior

gross to year Excluding XX% the profit unfavorable exchange, impact when of compared improved $XX quarter. the prior or million foreign

improvement as was percentage implementing as is in team our to XX% QX to make gross mitigate Our This actions. prior XX% effects to quarter. has our year the the profit operations actions the more well XXXX, pricing global the taken efficient many of a compared result of economy in

million of the prior net periods. $XX million. basis, the a this for On is in of to in to increase increase $X from reimbursement we legal a quarter reported net incurred $XX U.S. million year quarter, compared GAAP insurance income Contributing of of an $XX expenses loss first million prior of income

The and million XXXX first quarter million, income workers' expense results the of $X embedded and in and related noncash $X of million changes related $X benefit liabilities include expense and respectively, of compensation to of and respectively, to derivative million, employee changes value fair in reserves. XXXX $X

also XXXX, refund income to of includes governmental a quarter related from first a of million $X authority. non-U.S. The

Excluding prior quarter $XX million. these $XX was reflecting $X of to million $X million or loss prior in $XX for million the increase of increase the year compared quarter, million positive and was a items, to of year a in million Operational year compared EBITDA an prior a an $X negative quarter, for the XXX%. current income XXXX

in the employee current workers' both and impact compensation unfavorable year, and the of $XX noncash the changes XXX% operational EBITDA and increased the benefit prior foreign or impact million quarter. current the reserves in from year year of Excluding in exchange prior

partially quarter by offset the improved Operational pricing efficiency, continued EBITDA first and by cost ongoing to impacted related actions of increases. XXXX global operational improved for higher was favorably profitability

currency basis, for declined X%. by the under SONORA volume which annuity quarter, licensing and declined for the X%. revenue Process revenue by to Kodak annuity royalties receives XX% XX% During volumes declined Free constant agreement a including a first On PROSPER when pursuant Plates by Prosper or

in focused their drive deliver products our mentioned, Print business innovations to businesses Jim on need As forward. have we our to new customers key that

on the performance million changes cash The operating Moving in million quarter million, consecutive of $XX change the increased net working second This million, an the in first cash quarter of cash a is the million. liabilities ended million decrease a decrease a flow in presented cash to company balance. on of that million of the by decrease was Slide of in of quarter of in compared million by $XX $X including cash its the and increase million, activities in of and Cash primarily first receivables $XX and has XXXX. sheet $X $XXX with company quarter earnings other equivalents, balance from flow XXXX, X. company to the of cash $X $XX capital provided driven $X miscellaneous from first

first by accounts accounts Cash working Cash by for quarter, compared increased financing and $XX the million also was prior $X to the $X compared prior December period. when when inventory in year the decreased activities Within investing to XXXX. year $XX flat as in million XX, activities period. to by million used million, compared capital, $X the used was increased flat quarter, receivable in million, payable

million, quarter cash credit to of letter flat supply XX, the Restricted $XX and secure Restricted various compared escrows certain to contracts in December addition facility cash collateral aluminum the the of XXXX. when primarily required obligations. cash under to at end new was ongoing represents

As the presented year cash million refund portion a flow from of excluding a year. first XXXX, quarter company $XX authority, prior slide, compared in on the in current the to governmental print bottom impact of the the delivered a the non-U.S. of

compliance we back with the I covenants. now financial to all Jim. Finally, will turn discussion remain applicable

Jim Continenza

profitability summary, years, to us business continue the our In generating first allow in foundation while challenges performance the quarter, difficult to of strong increasing invest in with have which of our that invest are success creating grow. last X over we actions innovate, reflected uncertainty, taken a strong extremely an and environment the to lot a of continuing performance despite cash, delivering future the

continue will invest We businesses growth initiatives. our Print our AMC to in and

our they need continue solutions first will in the market, print to expect. We customers this efficiency put driving delivering evolving they improvements to the thrive

build your with Our Thank Kodak. Eastman on momentum call to our continued customers, Have you deliver goal positive plan. innovation our on day. in created, have our partner and a we the attending execute for interest is and great

Operator

This concludes today's for participating. you Thank conference call.

now disconnect. may You

Eastman Kodak (KODK) 9 May 232023 Q1 Earnings call transcript