Eastman Kodak (KODK)

Paul Dils Chief Tax Officer and Director, Investor Relations
Jim Continenza Executive Chairman
David Bullwinkle Chief Financial Officer
Call transcript
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Ladies and gentlemen, thank you for standing by, and welcome to the Eastman Kodak Q1 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference may be recorded. [Operator Instructions] And apologies, there will be no question-and-answer session for this call. to Dils. conference like speaker to now Paul today, would hand over the your I ahead. go Please

Paul Dils

Thank you, Director first for afternoon earnings issued Company's Welcome and its good Kodak's quarter call. Chief Eastman Paul to and this Tax XXXX. Kodak At Dils, press X:XX Officer afternoon, quarter release the and first of p.m. Relations. everyone. Investor XXXX I Kodak am results financial

Today's investor call and the focused webcast today's center You at financial access our investor.kodak.com. Kodak's and the presentation on may results business is call solely for and on condition operations.

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

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

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

follow-up. As always, now turn for the Jim. call available Relations over the I Investor is team to will

Jim Continenza

X. exceeded earnings achievements two strategy, made we March by to in pleased our cash a value resulting Welcome to everyone, thank sustainable our announced on continue part years. of call forecast joining creation. XXXX financing first customers, past foundation some balance ended million two from of develop example like and have innovations I'm the long-term recent quarter initiatives, of sheet, solutions, during on and we are Kodak. saying the including Actions strategic the have you core and revenue we've for as ago growth investing focus than we years progress began cash quarter the equivalents, and which start for I'd the more our our $XXX our and taken long-term transactions with An first of for created with strengthen

capital in invest in and have our to growth to company our will by strengthened access obligations, and competencies. We sheet and significantly core providing which the businesses balance new maturing allow strategic addressing opportunities

than and to increased customers' revenues. us generating making Kodak focus being growth to our organization realignment annuities our simplified core structure applications, and Plates, structure; automation in customer and include volumes facing this growth, continue profitable cost One experience with Recognizing providing Our needs as include better growing competencies. of aligned to improved our on organization, packaging strategy a competencies, ULTRA experience businesses product Press, M leveraging Digital discuss different customer focusing PROSPER products demands continued ink which quality sustainability acquisitions first largest Technology. Inkjet ULTRASTREAM to service the Sapphire market. productivity match savings is businesses. deep CTP needs, productivity. by our our XXXX fastest quarter flexo. substrates. strategically for Platesetter, process-free This Dave environmental PRINERGY innovations, a Improvements financial part KODAK of SONORA customer broad and overall range our our solutions. Press our knowledge of T-speed Platesetter The of MAGNUS our by successfully eight-page is utilizes integrated has allows KODAK front-end our print on to featured powered of core printing the versatility range is Hiring strong in KODAK consolidation The our and Kodak imaging, W handling Stream been focus delivers Process-Free competitors Press and of with powered growth, in prints plate base, key sustainability strengthening and quarter first EVO will year, areas QXXX the faster images MAGNUS our contrast, enhancing CTP KODAK results. Drupa jobs over UTECO ability QXXXX world's and the imaging our Sapphire to first wide market. which device. in XXXX is PROSPER serve technologies established meet on faster this customers' the to the software. to of in the I KODAK has at managed commercial it in includes format customers, next-generation a On EVO web waste technology. plus Press business prepress turn printers and Inkjet KODAK Technology successfully and broad NEXFINITY a Solutions the KODAK now that on-press. flexible Business of industry's the range Kodak's fully SONORA across of for KODAK already plates Demand XTRA, and near-offset industry's stronger only packaging Technology improved Kodak's first Digital utilizes XXX digital It the by need press water-based maximum handle with ULTRASTREAM today press

David Bullwinkle

Jim good afternoon. Thanks and

a to details many into get the turn strategy we our I comments. a strategic of would Before long-term years is two taken efforts more than company's like the corner make implementation quarter, to have based we of the the result beginning ago. the performance on few as general The for

our recognize continue cost and profit gross in improvements to We volumes, structure margins.

We expect to see continue this going forward.

the are the pleased business strength We performance the very sheet. and with improved balance of

a slide X address the in new transactions Turning access announced company's on maturing of on our invest call, ability capital, strategic financial opportunities businesses. core obligations provide March and we to in to to as our last growth discussed Xst, that series strengthen

million XX option or and due unsecured notes XX price if quarterly X% million, Lewis five has loan mandatory with promissory Lewis of of and share initial of price X% to the cash an May First, $XXX Kodak days. draw may before drawn interest provided comprised trading The their a an X.X% the Kodak loans additional conversion and Kennedy XXXX. by have in company loans a XX or term notes entered Lewis term Investment into per million financing years agreements with to The on company February in a be interest interest. of PIK for of Kennedy Kennedy equals convertible X% commitment payable XX and has Management. issued convertible XXXX. exceeds $XX.XX conversion mature delayed which $XX $XX $XX The also up bear with provide share PIK term

million has purchased $XX shares Additionally, at per Kennedy the company's purchase Lewis share. a of price stock one common of

person the XX% As Lewis they of be of or to years part hold of Kennedy loans conditions than the one until Directors. to agreement, the certain to less of right term amount company's subject initial the holds the for nominate elected three to Board principal

proceeds mature from on funds preferred A of shares managed November million due Southeastern Management accrued unpaid to and $XXX the company's these X X.X% million XX repurchased XXXX With Series stock by Asset transactions, Kodak plus for convertible the from dividends.

Series Managed Southeastern is stock the price for days. convertible of Series The trading per mandatory stock with conversion million. or preferred mandatory by A price if X preferred $XX.XX issued the Funds years in total for days. payable equals has redemption five B in XX quarterly cash, conversion a with share, of a XX has and The company, for Kodak dividend B a $XXX $XX.X the the exceeds addition, preferred XX option Series a million exchange remaining stock X% in of shares In

of under the has XX, Capital, series Additionally, on million Hart-Scott-Rodino Grand an waiting founded a a the company years The company. stock, an total Golisano, option preferred Oaks the has share after this stock and the on the by share, is in two-year share if March per Series $XXX or year C The dividend The or XX in $XX exceeds expiration investment redemption X% with $XX in five X% mandatory of price invested period of Antitrust quarterly XXXX, C XXXX, for firm additional preferred of million five. of Improvements of four February $XX three preferred a years in in Tom trading days. XX Act. the Kodak's or convertible days XX stock Paychex million and by a Series with preferred stock $XX purchased XX, and $XX Founder, businessman firm after a Series price mandatory period, per conversion conversion equals payable per C

Kodak's of prorated or XX% initial of from subject years hold lending the million. extended the to conditions, of the amount and certain person commitments. elected was the converted, company's stock Board into common extends to part they be $XX facility shares Directors. of one for the terms ABL same three reduction until using Grand right, the to three the obtained group amendment existing to $XXX the million Capital to which to As or Oaks is than it preferred agreement The years less with and amended of reduces commitments nominate

Additionally, of and limit A of maturity to company needed company's ABL of results to materials terms. This now transactions capital. will ABL three-year and invest months. together the after print with redemption for the that Furthermore, contains credit of the quarter. $XXX required was cash million on financial November businesses of for core further company full advanced quarter into the was funding the a transactions entered $XX subset letter available Kodak's the in the and in expenses mandatory company XX transactions preferred cash with agreement cash and the remain will cash opportunities facility incremental to the operational new fees stock million share EBITDA facility I Series provide draw the loan the a with XXXX, of chemicals. These date and details amount million results, incremental growth the also on address delayed extend $XX These of first ABL up term in and in provide of group. service the flow the

seven. slide to Turning

for compared million million to prior the As we $X million related expense include of reported XXXX of On revenue the a of US quarter of of first the to of first in income million. prior decline in fair declined the our XXXX by respectively million income earnings we to quarter in the results $XXX net a for value The year basis, $XXX $XX quarter. for $X in million $XX and of $X million we first basis, embedded revenues net reported compared liabilities. quarter release, quarter and $XXX changes GAAP million. reported currency loss XXXX, year On derivative a constant of

in result the The $X a for US. impairment in reserves million million, XXXX receivable tax of accounts million the of of impact name and outside $X includes first trade $XXX increase quarter expense increase valuation also allowances an the of as deferred non-cash a

income Excluding EBITDA a negative year million these for the $X $X prior XXXX $X million was for year the positive prior items, prior quarter compared million the quarter. of year in to was $X in income to and Operational compared current million quarter. a

XXXX an the Operational reserves, impacted reduction increased from in increase quarter. by year favorably the million and prior efforts accounts operational savings sales for prior impact Excluding year-over-year was key of $X improved in year from volumes EBITDA cost receivable areas. EBITDA product

did operational not EBITDA. have exchange on an impact Foreign

grew quarter and PROSPER by first by the XX%. annuity Process-Free revenue Plates volumes for improved the During SONORA X% for

to competencies core at products XXXX of like ULTRASTREAM future existing materials showcase The our SONORA most products growth display and areas that innovations continue of and Kodak's recent Digital chemicals. and ULTRASTREAM, Print. earlier by We Plates in to enhancements invest advanced utilize and Jim mentioned Drupa

and $XX primarily by to million, Accounts of inventory by million XX, in a $X accounts by in X. ended million million capital in company decreased equivalents, an $XX The million on used first change Moving compared December in with increase XX, decrease and $XX $XX increased XXXX. working driven receivable other presented of $XX the was slide activities cash cash increased a of $XXX the million million payable on million. to quarter December company cash Cash XXXX. by and $XXX from performance liabilities operating

in letter a $XXX the quarter facility. incremental financing credit expenses $XX the million increase tightly the our compared primarily by XX, prior from Restricted million result was $X of $X to Cash activities provided the an was provided the compared of activities new cash our when quarter fees in of required included was Cash to XXXX. million activities million, of the continue This financial We performance. end in under period. capital $XX year. December March $XXX to improve to used collateral cash in used manage transactions by cash quarter cash financing and on driven in investing Cash at million cash the announced flat was by activities in working first million the after of quarter financing prior the year X. increase of

to as cash of will view March for the liquidity upside to almost restrictions opportunity the $XXX continue company. totaled at together alternatives and reduce for million XXXX. equivalents incremental We on cash focus on with Cash restricted end an and this

chemicals. will build in businesses continue and to growing be the with We the print, advanced areas company these assets of to utilizing materials

our to As commercialization details on further calls. producing are we revenues, provide processes much future closer will

value are to generation. create and shareholder at the objectives Kodak for Our employment next

our We the and to to in are continue with progress excited you our share future. successes

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

Jim Continenza

to taken few strengthening last years In in the steps created continuing in customer-first establishing sheet, foundation we the Dave. Thank a our and balance have innovation summary, growth. invest you, for have approach the

shareholders in Thank you our attending continue those our We to and to strategies interest on Kodak. long-term continued for execute for employees. call and create the value your

End of Q&A

Thank you. you gentlemen, this participating. conference Ladies today's call. and Thank concludes for

disconnect. may You now