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Eastman Kodak (KODK)

Participants
Paul Dils Chief Tax Officer and Director, Investor Relations
Jim Continenza Executive Chairman and Chief Executive Officer
David Bullwinkle Chief Financial Officer
Call transcript
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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Eastman Kodak Q3 2021 Earnings Call. [Operator Instructions] I would now like to turn the call over to your host, Paul Dils.

You may begin.

Paul Dils

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

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

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

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

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

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

Jim Continenza

Thank it. The we'll X.X XXXX investor additional you, had results. put am third continue Paul, call in inflationary plan quarter happy the for to Right. ago, execute raw rapid shipping, rising I we've the we to with third supply place despite everyone, and including the in Kodak. years chain, cost challenges some quarter on the additional And materials, challenges pressures, of labor. welcome,

same all focus and We to One Kodak are have on everyone. And will conditions work and to we through to customer. continue execute. for as those, The our have we

to manufacturing our We buy proud looking say impacts. to are process. we we core taking that that million up FX were year-to-date, $XX revenues our make $XXX that, need action million after products to And sure We're to with mitigate these year-over-year. I'm continue

are We We're hasn't going That print. committed to digital changed. We're to customer meet going innovate. in needs. continue innovation to

with examples, the platform, continue and innovate to ULTRASTREAM. Some we Stream PROSPER

SONORA U.S., new I positioned. announcement We with and for pleased Demand, in clear, more well secure in plates. is has to also large new standing also say are to discuss profitable Plates, Asia printers. the I'm printing for invest U.S. XTRA the saw packaging eco-friendly most It now and we in I Europe. the SONORA want growth small software right, want platform PRINERGY And been ASCEND highest printing in continuing our applications SONORA KODAK We new Press. sustainability performing from and Strategically, opening manufacturer opportunities affordable making in up growth. using for industry's plates. printers. the we by manufacture last printers be also opportunities up thank Process-Free point-of-sale On in strong that the Digital Process-Free coming the XX% the I growth also accepted customer to supporting we Plates. to opens well marketplace. are the also want to printers are retail, for to and our quarter. the in note up our We're of for

film. As a announce model, motion talk for Award the choosing pleased I'm seeing resurgence saw, to for in as pleased to SONORA into grow that we about moved Pinnacle still XTRA is InterTech productions. want you little film their the film, our are Plates. that Process-Free We're in the seeing, we're we as the One growth shooting in report and a we plates. I Kodak More revenues. base picture seeing also film XXXX received people I'm industry are medium a also our customer-first and bit KODAK customer business. to ideal

As are increasing of we a film the capacity result, factory. our

solutions, As continue are our provide strategy, materials growth both the internally, on on and focus to in on core advanced focus business we to continue to our sustainable and chemicals, long-term execute products we innovation, and to profitability. going turning print, environmentally competencies

Now David to to over like I'd our CFO. turn Bullwinkle,

David Bullwinkle

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

prior $XXX $XXX million operational quarter related liabilities. recommend million million further results filing $X The year quarter, for GAAP the and third prior always, in compared EBITDA in of quarter quarter. now X-month of September and the million. XX, impact $XX quarter quarter favorable I read will you in U.S. changes ending third this fair reported of revenues exchange to we income respectively, XXXX and its share the of current for details $X Adjusting the million for the or expense value net a compared the of increase embedded of a On on XXXX derivative of in As million third in quarter and include full basis, XXXX, million, On year to loss of company Slide $XXX quarter. net of third to foreign of revenue cash prior we compared year XXXX. income the million reported million the I $XXX entirety. to period an $X $XX results, for flow increased year the by the X,

quarter $X third compensation to sale net include results workers million the assets. and reserves of to The loss income $X million on related noncash of a changes in related of XXXX also

The decrease the of and reserves. $X XXXX to $X of include of third noncash reserves, to debt changes results on quarter expense accounts million compensation of to workers extinguishment related receivable income in million a in million related related $X loss

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

and reserves. in increases cuts in period and cost in January operational volume, $X exchange improved compensation year and key XXXX compared from XXXX, global workers' absorption the pay impacted EBITDA the favorable Excluding cost changes changes by from the EBITDA the in to quarter and favorably prior reserves prior in accounts areas that by furloughs the product by decreased manufacturing partially and year receivable compensation year largely impact year resulting in temporary savings in current was reserves foreign ended costs in in million growth compensation quarter, workers offset for and of prior workers ongoing changes Operational when quarter. from increases

the to actions address We current inflationary are pressures. taking

by Plates for SONORA volume our annuity XX%, our the quarter, PROSPER During by growth customer in customers, the for growth third Process-Free improved and volumes reflecting improved XX% with including base. revenue

breakthrough Jim Also, invest areas Kodak's ULTRASTREAM as to discussed, the that materials. solutions customer-first and advanced of future to Kodak's in product developing innovations model. reflecting commitment support growth continue newly announced We continued

We our promise offer continue to provide deliver of a that complete on solutions that print to pays. range

X. Slide to Turning

of reserves a of million $X sale debt, million, sale income assets value reserves, the results in compensation million in workers the the expense The million compensation respectively, XXXX, to million also loss outside impairment XXXX of year. a XXXX compared of include include prior the income changes an compared prior to embedded loss $X million increased of ending net in the of a of $X the gain impact related in expense the $X reported million million million. million reported year foreign for exchange of tax $XX of the U.S. in and current period year-to-date million, on compared result period, period of net a of results the Adjusting income related and assets liabilities. of deferred to $X in increase increase results net divertive of of a fair noncash related in We of for extinguishment the related to year-to-date we prior for September legal on valuation period on also increase by XXXX accounts related for noncash year-to-date trade period. of For year $XX $X $XXX name include million. an period changes to in XXXX $XXX X settlements, favorable as million the to a $XXX reserves the $X million year revenues The noncash receivable of the $X allowances loss million, $XXX to million $XXX and of to $X revenue or and income The the workers months XX, million of $XX year-to-date changes the $XXX expense of for to related million net impact income

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

periods the $XX the growth operational year-over-year. in was the XXXX by increase reserves cost EBITDA in XXXX cost increased period January ongoing areas favorably ended in furloughs impacted and impact changes compensation improved workers the million compensation Operational and year-to-date EBITDA prior of both from and global changes in by due accounts XXXX receivable costs favorable for reserves in in product reserves. temporary year-to-date and largely the to and of cuts of year from pay workers volume Excluding savings increases partially period increases in key sales absorption by in offset manufacturing in XXXX, that XXXX,

and are addition improved annuity improved and for growth address customer pressures chain current XX% to inflationary the by return to volumes Process-Free revenue taking in basis, PROSPER SONORA sales for year-to-date the Plates volume pre-COVID XX%, by On our actions in the a to levels supply base. We reflecting challenges.

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

of ended Moving in equivalents, on The an from cash cash third company with the XXXX. and million performance cash company increase quarter X. presented on December to Slide $XXX $XXX the million XX,

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

continue reduce to on opportunity an on will restrictions focus for liquidity company to invest we cash, for and We this alternatives upside growth. incremental view the to in as

I covenants. that now back will remain discloses applicable to with Form compliance we our XX-Q in Finally, turn financial the Jim. discussion

Jim Continenza

core mitigate strong continued we’ve made part the plan. focus we our of inflationary our and third reflects business as long-term our on as summary, our In quarter pressures performance our impact competencies of

concentrated an additional foundation. the sheet The performance our as in our past our customer-first have business delivered improved strengths Kodak, established on solid Over years, One X capital. we industrial and model, result balance manufacturer, raised and a is

We’re times Kodak. call them. of to Thank well attending we ahead and aware of your work the committed interest for continue through to the but us, challenging in you all are

End of Q&A

and Ladies presentation. does gentlemen, this today's conclude

You may now day. wonderful disconnect, have a and