Eastman Kodak (KODK)

Bill Love Treasurer and Director-Investor Relations
Jeff Clarke Chief Executive Officer
David Bullwinkle Chief Financial Officer
Craig Carlozzi Bulwark
Gary Ribe MACRO Consulting
Amer Tiwan Cowen
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Good day, ladies and gentlemen, and welcome to the Eastman Kodak Q4 2017 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] As a reminder, this conference is being recorded. I would now like to introduce your host for today's conference, Bill Love.

begin. may You

Bill Love

XXXX and on Love, Gigi, and everyone. name release filed results fourth My of p.m. financial At Thank afternoon, on XX-K this I good and am Bill Kodak quarter the to and Relations. annual Treasurer XXXX. earnings Eastman is call. Investor X:XX report you, its Welcome afternoon, Kodak Form Kodak for Director its Company's issued

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

date its are by attributable acting Kodak persons this of presentation in events be certain forward-looking in statements events Act statements expectations Kodak's forward-looking There may more forward-looking time. Securities presentation. in factors will based defined we the from or Kodak's may those Private differ included or apply statements. cautionary factors forward-looking include, from expressly to the Reform this assumptions. as actual or Kodak's on expressed the that the or materially call, these the as in only Litigation differ by the of today's qualified During other Future among materially to making in may Commission and entirety other actual various of forward-looking and to Important upon risks, and statements filings statements uncertainties results Securities cause Exchange behalf from U.S. factors detail others, their All to time All forward-looking be differ from with XXXX. or are statements the results and statements. anticipated results described that referenced cause could

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

Jeff Clarke

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

the call XXXX. today, taking. year, challenges will full results On year the we the strategies I about I we talk some highlights for for discuss individual and also are the company, faced will

quarter of $XXX $XX the net income delivered million Kodak XXXX, in the For year. for GAAP and fourth million

competitive and For we the with conditions the our ended industrial million, We operational XXXX. industry $XXX In year-end we by in the decline our business, year, delivered down also XXXX EBITDA. PSD a $XXX cash $XX price associated in at from slowdowns of of headwinds business. overall commercial XXXX, million pressures. experienced pricing macroeconomic in million of with aluminum, print We're with impacted film

these On decisive business we the to outlined actions QX investor address call, factors.

have supplier or price to where a Our plate focus existing investments increase. commercialization we proven agreements on We in place. Division areas to worldwide AMXD Print Systems in September announced reduced X% X% in

accelerating cost We company. continued the across actions

I'd benefits executed summarized highlight in achievements on to and on begin in like XXXX. see Slide have the these we'll actions actions, are We XXXX, to our and which X.

revenues revenue a in as in double-digit of EBITDA demonstrated On prior positioned and is FLEXCEL both XX% constant volume market perform operational the business continued compared by strong The grew FLEXCEL packaging continues well NX business growth XXXX. with to growth XX%. for NX to and packaging XX% EBITDA First, share well growth for grew currency year. our basis, exceptionally Plate

Second, we annuity achieved profitability in growth. delivered XX% EISD and PROSPER

Third, SONORA brand ULTRASTREAM licensing platform, our we and improve X in investments FLEXCEL company. Inkjet shorter materials across in structure, growth periods in NX cost and beyond. to focus packaging, improvements productivity advanced XXXX, have in Plates, to profitability and investments overall with meaningful and those Fourth, our reprioritized been we payback made made XXXX improve and the on

financial we we which a and are related focus January X, on announced monetizations, will are our or CES, licensing strategic negotiations on these multiple buyers comment partnership at a and nature able to specific to sharpen confidentiality, partners not Kodak. brand Based with activities. businesses, further processes in We with lines and to WENN strategic our deleverage Kodak sensitive a achieve Digital the of time image take of to license their rights control rights new launch have ways innovative for and currency photographers impact KODAKOne management. agencies our will to greater at and a image strategy their and on monetize image and to brand demonstrates crypto technology KODAKCoin, significant platform grow belief empower rights management. brand photo-centric partnership in This blockchain in On

X% from WENN the and we we'll across of XXX royalties issued not KODAKCoin of coins KODAKCoins by offering. is and a received Kodak As on the license, in Digital. an of Digital the the cryptocurrency with proceeds in right transactions stake million the the three to million issuer in minority not receive for KODAKOne consideration blockchain, WENN receive excess ICO,

details follow cost company the I'll as call fourth today, with performance, after the questions. and cash XXXX. reductions During we'll and for as remainder well results the full talk flow divisional more updates which, will our guidance your XXXX welcome for and Kodak on about of quarter, Dave then

comparisons Slide will be as bottom year-over-year basis slide. to discussed note results on this that X. a currency of section Please constant on Moving the shown

revenues of prior Operational year. or EBITDA Division. full compared the $XXX $XX Kodak billion, to Operational million, million Print the year were XXXX. to from the Division year a the was $X.XXX was Print XXXX. Full or by For from decrease for $XX down Systems X% XXXX, with X% decreased EBITDA XXXX. million down revenue XX% million, XX% Starting compared Systems $XX

decrease other. in As $X Slide to driven operational process million pricing overall volumes, foreign Partially related due prices, to million year-over-year, on was offsetting and with and $XX X% these X, plate of of to volumes volume SONORA declines increase illustrated impacts. plate PSD million plate $X for related traditional by decline. is to favorable was aluminum an million Overall, line pressure, EBITDA $XX down million in million the the market Plate related of $X $X exchange

grew for the see for year volume XX% of year. X%. environmentally to expect sales, our continue Plates, now our erosion in accounts advantaged the was we SONORA in solid growth growth We XXXX. which for plate XX% Price continued unit process-free total SONORA by and

As negative year-over-year expected, on had dragging results, XXXX $XX a aluminum prices basis. impact a decline increased on a million of

$XX implemented pricing aluminum impact the mitigate of of million we've new in earlier, to cost XXXX. expected strategies stated As higher

Moving EBITDA $XX to was an million, Enterprise had level is increase represents that over million $XXX a result during XXXX. primarily increased a offset of the decline primarily The $X X, Slide of investing by achieved improvement benefit ULTRASTREAM $XX operating to EBITDA this platform investment. we'll PROSPER the Inkjet EBITDA $XX cost due ULTRASTREAM reduced was revenues and million, Press $X XX% million remains We're The while ULTRASTREAM was operational EBITDA beginning partially increased strong of reductions. Systems of and the XXXX for XXXX Division in million. on-track million which of see the in Operational of with EISD in pleased operational the improvement XXXX. note placements. performance,

XXXX of improvement by an Turning Slide with packaging XXXX the our million, to grow which million industry to FLEXCEL of from continue in growth, from is incremental EBITDA improvement partially XXXX. Flexographic Based and this Operational $XX product to I FLEXCEL data XX% Packaging Back times year, in NX, a flexible Kodak's Kodak's continued packaging NX drive X. research four expected driven consumable am million growth Slide on offset Pira, this particularly the X% of high-performing Division X. performing an paper million from is was markets $X our to and market made were market OpEx $X projection. $X CTP Smithers compared by growth X% to pleased set. print revenues XXXX. is volume to of to at division. growth of $XXX plates annually million, strongest NX, investment FLEXCEL prior

picture year, the the $X operational brand products. in in These On by million. in Kodak of with of the $XXX EBITDA partially year. Consumer Slide million design we from had to the to film the consumer vendor million transition. division solutions and out $XX by Film were was of $XX prior Operational for compared Division revenues prior Solutions down XX% $XX million, $XX during higher million EBITDA security film versus changes growth EBITDA and last our break Motion million the of impacted launch of year. revenues of a Division year. $X Software $X The divestiture in related down for associated $X and consumer also driven industrial $X Operational year. inkjet million by and were Revenues million manufacturing cost revenue of had down at chemicals million remain decline the decline CFD for licensing million to prior offset versus and $X impacts million when and of constant XX, XXXX. businesses and

licensees. CFD in We due business, growth resources film business the the our orders, to will releases productions, licensing due varies brand see results to of in and to new of picture variability film we motion also brand support CFD product continue future consumer invested to timing in industrial scalability licensing. XXXX, In which

including XXXX education successfully to areas a licensing film and Returning XD partners, operational Advanced photography solution key instant we to at printing negative XX Materials for $XX X. a XD added Printing and XXXX, Division Technology million. the EBITDA the unchanged brand compared During was Slide of market. in

advanced investments electronics fourth payback sharpened our to printed on shorter we quarter, light-blocking technologies, the focus closer periods. are which on will materials. particles, in with focus now and AMXD commercialization During

at made profile total tenants Business operate XXXX, year. XX% increased EBITDA in division. lower million, the Business and our division, to XX end the by of we in from XXX employee of in We progress financial operational XXXX. Continuing $X XXXX. cost XXXX We've prior will increased AMXD compared improving end of by By the revenues approximately with Park the now the final $X increased our with to million Eastman Park. this

photonics, and biopharma We high-tech companies are agriculture with and in experiencing growth the space. food

will and to Slide a Now XX% guidance million, operational our with represents which On PSD billion million targets. we're which update the additional from XXXX XXXX changes, our outlook. adjusting details Slide will you after of SONORA continue $X.X $X.X describe provide providing $XX EBITDA SONORA our our growth to benefit XX% I'll pension to X. increase later. to some Dave for revenues financial to and in impacts On billion XX, accounting XXXX $XX on the of of XX, of divisional

we impact also in aluminum We partially announced to cost. aluminum higher increases higher of prices excuse XXXX mitigate price me, the – expect or, plate

offset product line. For VERSAMARK EISD, annuities PROSPER decline we expect growth the to the continued in in partially

invest will volume to growth the this in FLEXCEL in year be NX. We continue expect will in business FPD to continue to ULTRASTREAM market bring significant and a product high-growth XXXX. to technology with

invest in continue will division. the the SG&A products We new growth and and in

materials, materials, in printed In the light-blocking our licensing we'll For will growth improvements growth we which electronics inkjet our motion will and Kodak benefit expect and brand growth in AMXD, business, have our see will products. In consumer the Technology both SSD, we profitability. film CFD, declines and Workflow see expected advanced Solutions. cost picture offset in and to Software that market in

occupancy attracting it usage continue over Dave will utility by updates improve to and reductions turn new tenants. EBP now on cash flow. Finally, cost discuss I'll QX to and performance, to

David Bullwinkle

Exchange good and the Form ended for with afternoon. December year company Jeff, filed and XX, the Commission. XX-K Thanks, the XXXX its Today, Securities

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

and First, on filing some notable items forward. XX-K impacts and updates and in important the XXXX

tax. corporate from significant United in Upon law, As previous XX% income there reduction January I'm fully federal onetime undistributed related tax resulting on credits, you tax by effective We or is impacts. in the XX%, changes expense in in tax XXXX. transition the $XX of deemed XXXX, sure the tax foreign are million X, was resulting enacted which is which repatriation the cash and recognized was earnings transition P&L profits, referred offset legislation tax rate States, aware, including from a reform our no federal to enactment, tax tax foreign in to new to the as

of going pensions As approximately forward. This measure in provided, of prior in Jeff XXXX and the service noted EBITDA higher operating EBITDA has the which operational change amount an in will The the expense he been related reclassifies guidance credits to accounting amortization results. operational change impacts $X million. of made, change result Kodak's out of

impacted benefit million. these release U.S. million tax of a with I results earnings GAAP cash update profits Included and with recast details basis progress this our and cash non-cash structure to for previous periods expense a impairments will fair would XXXX on in have the impact of We prior amortization location through net on cost of and allowance is year have change. the the EBITDA. of flow associated a A as the additional now performance earnings to and value quarters, further derivative $XX compared this non-cash increased comparability stock. Series the in flow initiatives XXXX, full $XX our million depreciation net valuation XXXX and reflected operational result no in $X the or outlook. expense year. XX. Net preferred earnings are such and approximately Slide the pension other income, $XXX we'll been $XX for were guidance XXXX, in increase due for outside items, a from of the of in The million and asset the on accounting impact reduction XXXX on a results as cash by in share Starting million also changes Consistent company as embedded on and we There our remeasurements, an was goodwill of full

Slide to Turning XX.

presenting our on slide. the as fourth section at ending XXXX divisional XXXX, the for are December a and bottom reflected constant quarter currency We results basis XX, the of

operational the Packaging million constant year declined reduction Systems and growth in price compared to Operational Print in On basis, by $XX EBITDA EBITDA the On due CFD, in in Film in decline revenue the million $XX The expected of The as decline fourth a transition by chemicals, by million reduction EBITDA XX% X%. was of or business Consumer and EBITDA As PSD improved fourth revenues. Division is detail million the a accruals EBITDA the decline in partially operational in motion the XX%, compensation million XXXX Flexographic the $X by constant in $XX compared we brand film picture and in NX. operational offset basis, operational primarily Plates. for inkjet EBITDA more quarter impacts driven in well PSD $XX report was by in higher grew Division by declines, million impacts, quarter the as the which prior year-over-year declined in non-cash decline the in a and driven $XXX $XXX of in licensing prior industrial CFD, fourth of consumer was $XX for reductions incentive reductions by volume related $XX plate our erosion, and which to growth and revenue continued the currency workers' describe The earnings good XXXX, higher compensation release, the Division by million. FLEXCEL was currency quarter cost of and driven volume operational division cost is of higher I million cost million. to period. in driven will SONORA reserves later, the Partially offset lower and vendor in and declines year. in activities to year-over-year aluminum film, offsetting revenues partially by

the have taken earnings QX on indicated to the our improve profitability of call, steps company. we As we

positions in an been have with $XX will to across annual we a of have for cost a which, eliminated been million. approximately actions on Slide actions to with $XX reduction million in on eliminate cost-savings taken positions result an of million. company savings approximately the a Currently, $XX fourth Actions combined other in positions of XXX eliminate our run-rate As the XXX quarter, additional accelerated employee-related presented basis. XXX savings XX, XXXX,

continue eliminations targeted execute position XXXX of on in savings. first We to to deliver the will the half

Our reductions. be X,XXX will approximately total these after headcount

of in investments. through opportunities the higher achieve We will efficiency shortening XXXX to process periods focus payback cost and and business continue on on relentless simplification levels

and Moving million December on sheet reported of Cash down an as Slide on to XX. XXXX, million, the million on year. the from company XX, September cash $X cash from balance were $XXX presented of performance increase the XX, and XXXX, equivalents $XX

was million, $XX includes cash volume the and to payable accounts negative product year cash earnings capital The PSD was driven activities XXXX, reductions CFD. related primarily $XX of and in reduction full to operating use the working $XX in million, For ending which of of change capital December balance million other sheet working primarily $X changes by million. XX, in due used

and between securities. $X the was in million For stock XXXX investment $XX payments. use sales debt balance earnings changes spoke I cash Weatherford, from cash by million $XX the On for which cash more consideration cash, December the investing debt for flexographic million full full primarily $XX ending asset in financing was a million, preferred of indicated of year than XXXX, December in partially $XX $X full from December the continued November, in favorably for repayments which prior for of were an When used in used in last $XX of dividends, plate cash business This payment from the the repayment Currency of before new $XX usage basis, activities. sheet million. debt XXXX, used we ending $XX and a Oklahoma, million higher ending $XX year driven impacted lower XX, of the company XXXX, offset Cash activities excluding million. expected year. Capital for $XX expenditures million by company and million our by XXXX, marketable million. included line Kodak manufacturing cash to year sale a XX, and million, proceeds XX, includes year-over-year $XX the million Alaris

ended excluding working accelerated manufacturing For usage continued to areas. XX, repayments. XXXX, December In invested cash increased higher of the packaging growth cash, more due used due and company technologies. of Throughout we million XXXX, invest line. flexographic was was the in capital used debt The year build the CapEx new to $XX million $XX AMXD, to and in has

million. invest for continue ULTRASTREAM at to We $XX EISD within

for million expansion $X invested packaging. capacity our also We in

In in addition, were slowdown The the will X on new this printing at launched as and industry second to which half our which Super million approximately spending NEXFINITY, we later X saw we commercial as continue our camera, the earlier these year to month of develop $XXX XXXX. flow and SONORA on cash continue products, well the ability to be the impacted in levels. invest introduced

Plates good the to our $XX the impacts commercial profitability, the of necessary inkjet growth compliance discussed, in in in areas technology. million. actions have industry will As investments the we These the I NX and improving also in printing continued to along improve flow and previously our efficiency XXXX and performance our secured reflects next-generation To ULTRASTREAM simplification company's lien satisfy XXXX, summarize, by made with our agreement exceeded to CFD, longer-term improve used under into execution processes. cost term EBITDA our EBITDA heading the dynamics taken company's actions first headwinds volume in agreements. improve growth cash businesses of business, FLEXCEL with credit focus and on the as particularly packaging We in strategic in our leverage loan of The PSD, ratio our the supplier and SONORA under calculated remain in ratio covenant reductions profitability covenants packaging, XXXX. credit

XXXX. to Turning

one-third the second XXXX, growth as Like expect cost and and year had our the year. first a generated continued half growth expect than areas operational and to operational and cash. full of EBITDA productivity business. second XXXX the seasonality revenues to our performance Kodak's year well EBITDA the improvements use half of we the in XXXX, stronger approximately earnings as in revenue, In across for and half we higher rate cash We drive of of and

we be the generated XXXX, to XX% approximately in For operational of of EBITDA first half expect year. the

in used the result, a XXXX offset second As expect half in year. we by cash cash the first the half of the generated of

basis buildings million, sources outlook a of $XX sales approximately As and capital Slide $XX on EBITDA our from an a year generation The and use the $X asset of full of million. working million is cash to range cash $XX for breakeven $XX shown million on of levered to $XX million, of to proceeds XX, a million XXXX cash and $XX on a operational idle basis. of source small and million couple from a totaling unlevered

foreign restructuring of for million expense. workers’ operational included cash operational has legacy Interest been these to $XX $XX cash the expect EBITDA. net $XX of as incremental to U.S. and and million, dividend which million. the pension payments presented of expenditures are includes as of of $XX items $XX million, an used $XX million, compensation Therefore, adjustment We cash of million of $XX EBITDA capital cash income be million, taxes or and amounts in used uses our payments payments. of of outside

opportunities our to to I would Turning XX. with the and XXXX plan. risks associated highlight Slide like

change to our result hedge in of Based process-free higher two-thirds the brand price. $X of for a X% the adoption also see conversion Plate our SONORA pipeline. more by annual for we in volumes, our of accelerated which opportunities would aluminum XXXX: approximately rapid on usage, of our First, in we may the technologies, our million reduction see position every Plate licensing volumes. continue NX Higher benefit a customer following price current approximately PSD X FLEXCEL results of

capital improvements, monetization strategic certain working and upside plans we In addition, explore we transactions. see assets as our pursue to of make

costs result industry balanced results. – impact also related XXXX following a plan is new commercial for aluminum Overall, and Conversely, in negative XXXX business impact would plan our results these plan. we of our product have aforementioned further versus print has impacts conversion launches the the a could in pipeline could plan, our to to negative risks: the to our a XXXX. Second, deliver slowdown tax this planned brand and opportunities Timing settlements expect licensing the and plan.

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


Instructions] our Craig from [Operator Carlozzi question Bulwark. is And from first

is line Your now open.

Craig Carlozzi

the opportunity for Thanks a guys. to question. ask Hey,

I loan your So much it like is due term looks structure, capital pertaining pretty in was months your to just from XX now. –

I you’re So that me can the and through are was addressing wondering to if the you assets guys with how maturity has if thinking either do you. monetization about of walk the anything maturity, solution Thank transactions on? you or working strategic

Jeff Clarke


said the XXXX refinance of in intend first – maturity lien the we debt. in we As before past, September to the

timing. We and the regardless are do those we looking structure for the several of would and debt monetizations,

So strategic is timing we're are do the that actions deleverage We pursuing – those the of irrespective those company we should believe timing. for the reasons. and

Craig Carlozzi

and as those due the actions, – relative regarding they been reasons in three statements but number expected? generated? them more about realized moving detail would Or of otherwise, you certainly excited you there's then they going underwhelming? are Have competitive I say, And pushed are to been are to we a talk increasingly aggregate proceeds ago, on, months they they Have about great and can't out?

Jeff Clarke

expected. are They proceeding as

Craig Carlozzi

you. Thank Okay.


MACRO [Operator Thank question our And Gary from is Consulting. Instructions] you. Ribe from next

line Your is open. now

Gary Ribe

from on the front the you an so have how How are that end guys. much used the you year, you much Hi, end? guys do cash front expect estimate cash of Given you? of

Jeff Clarke

cash any and to used the first going in the year, what are similar the cash back in in provide We half do of expect, quarterly of XXXX We to we generate guidance. to XXXX. half not saw

Gary Ribe

expect then And as it. a covenant, I get would waiver? relates it the Got to to you guess,

Jeff Clarke

with Dave No. in headroom, of Well, covenant stated, million million we've We're sitting of $XX cash. as got QX. $XXX

the that cash going year. of from are the perspective performance over stay as within And we expect company and to a covenants. we're an EBITDA such, operational to projecting We improve both perspective prior

Gary Ribe

me. That’s Great. Okay. all for


Thank you.

is from question Our Amer from Cowen. Tiwana next

Your line is open. now

Amer Tiwana

if a price, meaningful mentioned How guys. the of sort terms business. have you? question in like is guidance? sort seems think, assumption embedded mitigate the is or This in taken you move. X% of pretty terms that. I My Hi, you In what to the said plates increase? And, I'm X% on of you're first the increase that And X% to action year, regarding providing, you of are to using correct, X% the you're price that guidance

Jeff Clarke

going X% X%, are with the So the increase to back first not to of said, we've pleased all, that's give date not results X%, to of announced November. to X%, and that to guidance. That X% X% divisional to X% we're price in we X%

we you of erosion As to as XXXX, – in X%. remarks, Slide X we that price our saw on and noted

see to most So than us give it expect we better you general, expect not to on based meaningfully erosion We're in price that. of to should, our able guidance, price going but to specific the be mitigate strategy. increase

Amer Tiwana

many are you give installed base how The now? out number it. Got around there us Can next question I for PROSPER. the have is

Jeff Clarke

systems around we're XX there. out Yes,

it an while a relative of to year, broader We quality, on in ULTRASTREAM will, because And more into and available. grow expect will this of But bit that may it the a a alternative that XXXX, will technology it grow we little and have provide will even speed addresses the market, basis, it PROSPER. XXXX.

grow another XX technologies. for as talked in ULTRASTREAM out base probably focusing, November Very that going systems two applications call, we're are high-performance as years, I XX applications. broad-based presses next of new to coming So and performance XX for the specific over into very about of will looking more the the we and those

Amer Tiwana


some that on how front? headwind. you aluminum for XXXX? you more that be price, a Are seems that? on to relief Just One, Or are hedged guys Have ones. quick about two expecting you thinking

David Bullwinkle


hedged time, at where And primarily volume. specific we're on on are suppliers. contracts history. X/X purchase volume hedge million time X/X we're in hedged We relatively forward-purchase see locked headwind, So any It's which cost point about we point versus of $XX at with is increase. through we XXXX of – the XXXX annual in aluminum typical in therefore, this in which

Amer Tiwana

guys shook a And where you this CFD around the you plans my seems this this for it’s situations, was but XXXX, understanding business? like eventually or. business. was do that a contribution. – this is be And last out seeing numbers negative at expect around have around of What question type it to are to business this agreed turn XXXX Understood. was point, the starting certain cost-plus contract in the My sort

Jeff Clarke

the had million. Slide components. revenue just up. – It’s has you business those can not So see, we’ll an for back business, million about – it items many CFD EBITDA $XXX as CFD put in $XX The of and, we’re loss XX

a will this meaningful inkjet and business, we we’ve been annuity expect business, the of the have coming for been of on of stopped about division investors in consumer improvement part years so the our having five ago, I’ll remind the in years We because that benefit that that’s selling out the going cartridges. that, in decline XXXX, printers

by each down goes that However, year XX%. about

So a it on won’t as it’s past. compare difficult year-over-year have as much had of basis in a the

and We behind vendor XXXX. issues also compare us issues had that several several are now in

continue business, around of next better So we’ll we’re that, legacy optimistic some of do have terms Business Eastman will performance, fixed what it Park. going and does covering into to year, a cost meaningful quite that in our

be see in behind picture, I’m we’ll – chemicals, we’ll for but to be brand industrial continue XXXX decline loss motion low operating films a working issues in our at consumer an provide look our see and to that we’ll a can licensing, in inkjet relative you sorry, us. one, will growth and and XXXX hard one see point in think I really improvements continue to that as lower that see will we’ll to So the vendor turnaround, we’ll us, business,

a a be mark to improvement XXXX. pretty going over it’s low-water in overall, So significant

Amer Tiwana

I all very you That’s much answers. your Thank for Understood. have.


questions are at this There you. further no Thank time.

Jeff Clarke

to GAAP basis was summarize, us. to want a company want the XXXX. for joining everyone profitable Just I I thank on to in

We’re executing NX well FLEXCEL PROSPER Plates, in the business. and SONORA

invest for a their years. We continue to to our growth we time. a I on EBITDA where revenue areas as have in but cash in year-on-year in noted, thank year to basis the we have as focused in on basis a than SONORA much prioritization are and operational PRINERGY. comparable And FLEXCEL share strong continuing is more everyone well growth market want XXXX we expect the and NX, that prior and improvements flow growth


Ladies in program. and for Thank the participation you gentlemen. today’s This conference. concludes your

now may You disconnect.