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Eastman Kodak (KODK)

Participants
Bill Love Treasurer and Director, IR
Jim Continenza Executive Chairman
David Bullwinkle CFO
Eamon Trebilcock Ellington Management
Call transcript
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Operator

Good day, ladies and gentlemen, and thank you for your patience.

You’ve joined the Eastman Kodak Q4 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 be given at that time. [Operator Instructions] As a reminder, this conference may be recorded. to call like host, to now Love. Bill would turn over the your I

Bill Love

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

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

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

provided measures directly are contain turn on with deemed Kodak’s In GAAP Officer measures to and the at Reconciliations Chairman; presentation in now David Center that and been most call Continenza, the Jim release our today’s Financial on have comparable our and presentation Executive website within certain Chief I addition, Investor call over just of the issued, to Kodak. Jim. provided will investor.kodak.com. the Speakers measures. Bullwinkle, the release are the non-GAAP

Jim Continenza

Welcome, joining everyone, and thank fourth you Kodak. XXXX call for the quarter for investor

long-term we begin, Before have to I from we help look of to working team part continue build appointed for become shareholders of on Chairman, I cash initiatives. moving I’d day-to-day and balance increase maximize positive, execute sheet, my an with integral to as like drivers. the key as to Chairman, to growth deleverage forward flow value efficiencies, our say, operations our continues Executive to potential Kodak critical Company newly become operational

$XXX early first the million XXXX term to results, want closing conditions, update agreement outstanding agreement. Before April sell XXXX to to use over proceeds on it to process. and expects Division discuss the Flexographic entered FPD the lien Dave turn financial XX, close I November the attempts satisfaction Packaging I you of Subject to to as sales to an as under of XXXX. the sale the on Company customary credit X, the The Company’s over repay to in Company the loans

Dave sale results other will now FPD As we updates. in financial it and XXXX discuss I previously improving turn step mentioned, an to our sheet. Dave? the important to balance will be the important over

David Bullwinkle

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

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

Executive enable which XX-K. Form engaged Jim a the for have the process extended Chief and the XX-K. the required review been First, to Officer Company’s to I in exhibit the would Form deadline like be Company’s the filed management its certifications as to of filing Company to XXb-XX, The discuss senior to filing execute Form

addition, evaluation working all of unable to in the loans remaining credit first in the refinance aspects prescribed file the to the within to under and agreements, Company’s context sale its Form lien obligations disclosure close of the term FPD, XX-K the the Company of time resulted period. In of being the preparing

will compared be first the Jim results, now As use in of I April that full note, loans in loans close term the been term mentioned, completed of soon. cash operations XXXX division, to further also sale share conditions, million PROSPER Series agreement. intends flow Company income of Company’s in results for to stock $XX tax preferred expected from first related and XXXX. of XXXX the Korean we been in withholding engaged the included include associated reported million the also net evaluation over proceeds the credit were four, include early to trade discontinued of remeasurement. The FPD lien with XXXX. for and associated of of refund the satisfaction million the a of due legal also assets $XXX related reserves. expects the as with FPD. outside closing the to on $XX $XX changes related in XXXX Company The paid million million million and in asset benefit by to derivative EBITDA to to under the will release release, to expense results the a outstanding million financial has $XXX for income to depreciation and Please which of the results will customary FPD. allowance operational related U.S. Company repay be net and our embedded The on expense million as a in changes of portion million lien results expense of X, the our million slide sale $XX amortization not $XX as results related trade On of value the and on term XXXX negotiations of have The expected the results $XX of loss include reported A tax sale and period of subject impairment, impairments, to XXXX to details the sale benefit of non-cash $XX earnings driven proceeds XXXX the of name compensation to $XX name comparable workers’ FPD as deferred XXXX the from XXXX results refinance The goodwill and

XXXX income Excluding was million the prior in million and compared to loss prior year. of these for current $XX $XX the items,

to Turning slide five.

basis, X%. XXXX Operational a billion compared million For XXXX. in million, was XXXX, compared revenues EBITDA declined $X.XXX to in to of constant a for revenue $X we by for currency of billion, decline $X.XXX XXXX X%. reported $XX On

of favorable in of by the performance Adjusted the operational XX% EBITDA Plates unfavorable Excluding XXXX, the for our impact Consumer delivered grew $XX PROSPER million million, engines. and in prior key foreign Inkjet for expected compensation reserves, operational the XXXX strong aluminum $X compared a Volumes compared costs SONORA growth were XXXX. for revenue to X%. declines by workers’ offset grew improved in reduction exchange In year. after EBITDA annuity $XX of to the in $XX Free loss and of we by million a impact Process to million,

of growth light in invest blocking printed to and materials ULTRASTREAM, electronics. areas future continued also We

expectations. million six. Company cash and on million December $XX $XXX The ended in equivalents, XXXX Moving cash decrease with the million our XX, to on $XX our to presented received balance of December within from of but XXXX. Company cash was a XXXX a of slide -- be non-recurring from XXXX, cash for received expected performance proceeds adjusted ending in transaction in When XXXX, January

XXXX in used used in million prior and decrease in period. million. the million compared primarily use of use excluding was investing of as operating cash activities change XXXX, in for for liabilities year payables of the trade million, driven a to working in activities a was Cash $XX by $XX a XXXX, of prior financing During $XX $XX million $XX compared in used capital $XX activities million $XX in to Cash million year period. the was

In disclosed the EBITDA our satisfy in the ratio covenant $XX credit the the agreements. credit million. I in turn agreement the back now under covenants Company’s will calculated to we loan Finally, as Form as under the our term discussion our leverage EBITDA to with in by ratio first compliance remain secured XX-K, necessary used particular, exceeded financial lien Jim.

Jim Continenza

customers, basis Kodak by Thank goal, return free you, In and to forward-looking achieve our to deleveraging we Dave. Company competencies a working efficiencies health, to cash with improving consistent the generating will on primary imaging, and flow printing, focusing statements, we on action not basis. make financial core take in work as summary, our we closely will sustainable operational our instead

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

Operator

you. Thank Instructions] sir. Absolutely, [Operator

of from comes Trebilcock question first Our Ellington the line of Eamon Management.

is open. line Your

Eamon Trebilcock

bit if refinancing possible? With bone that for guys. to of guys to meat cash loan, use you the not refinancing remaining that a do the refinance stub? Thanks time. term Hi, mean, the excess to can little on be there? if can more And expect you I you guys the not, able Thanks. the to regards put is repay stub,

David Bullwinkle

Sure.

So, this is Dave.

changed. advanced of the term from previously that of obviously large we sale debt receive expect disclosed from are and loan on paydown negotiations debt refinancing to So, we to proceeds. but with that debt the subsequent comment hasn’t really to specific existing in packaging terms lender can’t packaging provide the outstanding We’ve we

debt complete confidence in have million. packaging closing. of debt we the to the to remaining within of what debt we that expect call done. $XX after we And that would remaining that a expect get be -- the sale to neighborhood So, FPD reasonable stub as and timeline million $XX high we’ll have the we or sale And the somewhere

Operator

no As further any call turn Continenza to in there Thank Jim back I’d appears [Operator to closing over you. the to remarks. like Sir? be for queue, Instructions] questions

Jim Continenza

Thank you, everyone.

have in a could on going lot business. we you As tell, the

We are to sell it on. and incubate able we’re and it move again the business that proud

our the my Now, core Company around. look we’re to forward back And team and turning Thank competencies, everyone in with going I’ll working you. to as we to get said.

Operator

participation. Ladies a and wonderful you gentlemen, for this day. Thank concludes today’s your have conference. And

may at this time. your You disconnect lines