Eastman Kodak (KODK)

Jim Continenza Executive Chairman and Chief Executive Officer
David Bullwinkle Chief Financial Officer
Paul Dils Chief Tax Officer and Director, Investor Relations
Call transcript
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Thank you for standing by and welcome to the Eastman Kodak Q2 2021 earnings conference call. At this time, all participants are on a listen-on mode.

We will not be having [Indiscernible] Q&A on today's conference call. I will now return the conference over to your host, Mr. Paul Dils. ahead. go Please

Paul Dils

At good on Kodak And Investor I Paul Quarter, and earnings am Welcome filed afternoon, Thank Form XXXX. results its Chief afternoon, for Tax Eastman XX-Q call. XXXX Quarter Company's Kodak's its of PM Officer Dils this to Kodak release you. issued Second everyone. X:XX financial and Relations. Second Director the

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

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

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

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

Jim Continenza

the Welcome, everyone. Second joining And thank for you call for Kodak. Investor Quarter

execution am our ago. Slide with put of to in our we strong performance, pleased place that X. long-term X.X plan reflecting Turning I Second years the Quarter

We are focused raise on our competencies de-levered strengths balance and our capital. established as an customer-first model, manufacturer sheet, and core industrial a additional

products, in in and winning key with and businesses result sales is and The our our solutions, execution. the foundation. service improved are marketplaces performance solid a We innovative

our to despite costs continue labor industrial to challenges on plan, value created our continue related by to execute plan manufacturer chain, long-term We and as an pandemic. sustainability. strengths focus and the uncertainties commodity, long-term to to We and the drive supply

structure provide balance our investing capital organizational "One made additional alignment, customer-first service customer-facing changing and core future and have Improvements Our experience. to a cost our applications, we the CRM of innovation for structure, of simplified organization, focus raised model be automation and Kodak customer-first to improved - growth. a front-end our competencies, in and on consolidation culture " include sheet, used

our in other strong volume SONORA businesses. increase and our growth and in are Process-Free annuities We recognizing Plates, quarter, this including PROSPER overall businesses,

solutions. and turn the our on to financial provide and results. Quarter focus to will Second discuss leveraging base knowledge our continues environmentally now Dave over XXXX customers' core to strategy competencies I sustainable to our meet to innovation continue it deep needs Our product

David Bullwinkle

the quarter June for Today, afternoon. good and XXXX, Commission. Form the Securities with the filed ended Thanks, Exchange And XX Jim. Company XX-Q its

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

Before into improvements to the Company create is future provides areas Advanced on sustainable that I Company that a quarter, balance our core created We've for and we growing, the generations. in details in employment We've executing the ago businesses to on focusing place growth. reiterate investment like would a put capacity made the the Materials, for Print, years by in strong with sheet Chemicals. I of X.X for get the plan

expertise continue to Chemicals. We we for and in Print, areas Materials, our where can Advanced explore growth leverage

million. million income include $XX year million improvement quarter, increased by liabilities. $XXX revenue prepared, to expense we are net The Adjusting the to slides of the favorable noting Slide Company each foreign $XX million loss in second-quarter related million shown first for and Company second a XXXX, U.S. GAAP Second of for basis, impact compared of in significant prior-year the reported prior-year Quarter share metric value I for half and and and details continue of respectively, the $X the in derivative embedded On XXXX progress half $X to a million now exchange to of the Quarter plan. to worth progress results, flow for $X On changes of year-over-year of current quarter. to XXXX. quarter in improvement the will of the our compared the revenues on of $XX operational made EBITDA, has Second a XXXX. the with the we've X million fair XXX pleased quarter first quarter. plan we further million reported cash compared And prior-year the for I and of We income in execute have an results is quarter net long-term the XXXX the to of $XX that million and for we of the

million of non-cash also $X results and changes legal compensation XXXX reserves. related to The million income include of $X second settlements workers' income quarter of related to in

in reflecting XXXX decrease for $XX Operational Compensation excluding Second offset pay furloughs and $X,XXX,XXX that items, $X costs manufacturing items a favorable partially absorption an for When Workers by the was of impacted the income by EBITDA to $XX prior EBITDA from XXXX increases cost prior-year million a was quarter in the favorably cuts period key savings XXXX. improvement to reserves. improved compared largely million million. sales and Operational favorably temporary $X,XXX,XXX Operational was impacted and in prior-year for areas improved Excluding in EBITDA $X these operational million. quarter, in quarter January compared by in volume, by product growth from for quarter. the Quarter ended due the EBITDA these loss a exchange a positive was foreign of prior-year to current and negative in

was During by SONORA to improved the annuity turnaround XX%, quarter, revenue as pandemic Process-Free impacts for the second volumes PROSPER COVID XX%, Plates which for by the market attributable the lessen. improved and

We continued Materials. to and invest Advanced in future areas of growth ULTRASTREAM

and prior first-half first-half compared half charges X We fair the the $XX to include first -year. revenues XXXX $XXX reported prior in income XXXX, exchange of $XX $XXX the Slide net for to million million income of improvement $X include XXXX of changes loss The $XX income in impact The for of non-cash results million. $XXX of Compensation the related related to current of a the a of -year. in million legal reserves. derivative $X period reported to embedded million to favorable Adjusting the million million related half prior-year to of million million compared the we of of first million by net increased Workers in $XX Revenue value the results for of foreign an settlements to Turning income $XX compared for liabilities. year. in

The million; $X non-cash $X impact income U.S.; of as an deferred a the valuation net gain half $XXX allowances reserves million and to of of also expense outside of a impairment increase name result the $X first million; accounts increase the assets. trade related in includes of receivable XXXX million on sale the of the in a tax for

Operational million Excluding the a reflecting in these a of for improvement to million current million $X prior-year $XX was prior-year period. $XX in the a the loss prior-year period. for $XX million the EBITDA XXXX and million $XX to income prior-year period compared of compared - period, from an items, + was

market foreign in in was -year, manufacturing the accounts in from Operational annuity furloughs reserves EBITDA related a and current improved temporary in partially for cuts ended pay EBITDA impact in largely the revenue the prior-year volumes by pandemic. prior and year, which the million. improved impacted and attributed by an XXXX improved absorption XXXX. Plates in was offset by and the improved PROSPER On in increases key by decrease to Excluding period XX% Process-Free receivable to reserves of the a for XX%, SONORA favorable January areas year-to-date and that cost COVID-XX compensation favorably favorable due in growth by costs Operational to basis, volume the for workers increase exchange $XX from savings sales turnaround product

We invest of and growth future continued to ULTRASTREAM in materials. advanced areas

prior-year cash $XX on $XXX during of compared and XXXX the of million in Second I December and just profit. more $XXX quarter, An to million million in driven described. to increases the cash equivalents. Second presented improvement than by with slide XX Quarter on Company as Quarter, we the revenue The million the have in cash $X and used Moving X. ended Company increase performance cash from

$X,XXX,XXX. in and are liabilities by outside in volumes cash in for June the by million. changes $XX XXXX $XX operating capital change Included Restricted fees activities $XX of half under of half, activities first by in of December million liabilities. of million, the after compared $X end of in XX/XX. a required the announced the used sheet in activities the XXXX, million increased from accruals are XX, result liabilities the period. activities and increase increased of net quarter decreased in $X financing use was $X in in to the in first was XXXX. in an and earnings of was financing working the various cash of Cash used primarily changes the Company Accounts of million sales working of was cash flat the experienced $XX by For payable $XX has Cash changes million, facility. restructuring in receivable increase million use and by $XXX contributions manufacturing $XXX half payments, and cash in at including other X and a and months credit in plans pension the driven in the transactions expenses, million decrease collateral driven by XX million, prior-year with financing of financial letter activities Cash million $XX by This expected capital when provided $XX compared other from investing decrease used balance inventory of U.S., the the from cash year. new incremental ending accounts included provided million, million cash million, a to These a prior increase primarily $X XXXX XXXX. on was cash first

We to Company. the an reduce on will continue to incremental for And restrictions on we for cash. focus upside opportunity this as liquidity view alternatives

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

Jim Continenza

you, Dave. continued summary, our and our Quarter our the as of performance competencies Second Thank impact strong reflects of plan. core made focus our In long-term on part we've improvements

future. solid interest concentrated a de-levered Over the capital. is customer-first foundation in additional One balance in improved our an you X.X continued performance the your Kodak, our have raise we to a result great industrial evening. Have on and the last is establish call for as our for manufacturer sheet attending a The Kodak. businesses years, strengths Thank and model,


conclude Thank Have you. Ladies participating. for great all does and Thank conference. today's a gentlemen, day. this you

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