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Eastman Kodak (KODK)

Participants
Paul Dils Chief Tax Officer and Director, IR
Jim Continenza Executive Chairman and CEO
David Bullwinkle CFO
Call transcript
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Operator

Good afternoon. Thank you for attending today's Eastman Kodak First Quarter 2022 Earnings Call. My name is Bethany, and I will be your moderator for today's call. [Operator Instructions] I would now like to pass the conference over to our host, Paul Dils. Please go ahead.

Paul Dils

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

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

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

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

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

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

Jim Continenza

Welcome, everyone, investor quarter of XXXX. as with started call the strong you Kodak. equivalents XX, including of for cash joining balance thank and first cash XXXX for sheet, $XXX million a and March We

We are success building XXXX. the off of

Our year customers impact exchange, When environment. revenues excluding million midst to economic or prior prior revenue foreign demonstrates is This XX% $XX challenging in $XX our quarter, a increased growth our of quarter. following the X% in year by year increased compared to or commitment the to a XXXX. the which of the compared million

a and annuities recognizing SONORA overall our increase are PROSPER strong in businesses. Print including volume growth KODAK Free businesses, KODAK in We Plates Process our and

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

material distribution, and continue company in and navigate through labor; the supply impact events. of with The We Ukraine increased labor. pandemic, associated distribution, in war and cost experiencing disruptions, and chain the global other materials is ongoing COVID-XX to global shortages

increases, for We our measures pricing steps including above implementing actions. stock Despite numerous and these unprecedented safety materials, and lead shortages increasing supply ensure mitigate have to challenges, implemented increasing times cost the have to customers. we taken

of chemicals, revolutionary on purchase markets. KODAK including our committed focus in to the business packaging on competencies retail, core turning materials to innovation, which print, We strategy and print, long-term Our continues and continued digital growth new the remain and profitability. the Digital at in Press, is ASCEND innovation advanced to aimed focus point

that and layering are initiatives of various EV/energy we comes and deep from and commercialization group initiatives expertise multiple a in our in leverage our to our last on in chemistry of new substrates stages These experience within on in manufacturing. include: new film call, over battery discussed strength storage manufacturing. are As working coating century AMC on material

We materials. have for and started EV energy substrates storage coating

to in fabrics. plan to light our coated The the extensive continue to produce fabric technology. offer is branded expertise an We Light-blocking substrates We antennas. range to with unmatched U.S. carbonless coating coating and product designed apply commercialize will properties management KODALUX. superior a of capabilities Transparent

technologies for our transparent other the are to proprietary We high-resolution custom antennas applications. Reagent automotive printing leveraging and manufacture and manufacturing.

expertise applications. leverage care of approximately we chemicals, to started and reagents continue trusted for to As $XX produce have an the we manufacturing lab facility in construction our million health brand and

We XXXX over first to to will Dave turn discuss quarter the now it financial results.

David Bullwinkle

good and Jim, afternoon. Thanks,

get we revenue company's The strategy. make efforts have quarter, results for quarter first comments. a few based into of would the the performance on by growth general strategic to we I long-term the details evidenced This Before the reported. taken we reflects our have is for like that

impact war to labor. However, continue company's The the shortages with and well. is and global for in materials the events of Ukraine ongoing chain material other labor, shortages are company experiencing distribution as impacts and supply the rapidly Costs global COVID-XX operations. the pandemic, disruptions, associated in rising

supply results, share countermeasures future us numerous now first These to increasing of will substitute these quarter. possible levels times, demand, continue the where and the for customers. the certifying and mitigate on implemented challenges, lead EBITDA to results measures increasing operational flow safety of providing suppliers details our longer cash I including materials, with full certain providing forecasts materials are additional have stock to We on pricing implementing opportunity of actions. company sources

Slide to Turning X.

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

XXXX also to related compensation The in includes reserves. first quarter of $X workers' income million noncash changes of

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

and revenue growth to offset in due $XX for and global favorably higher was the quarter impact the the current prior for reserves changes of in of compensation by year decreased increases. Excluding pricing XXXX workers' exchange million unfavorable first volume, adjusting Operational operational improved the year, EBITDA EBITDA quarter. foreign noncash in ongoing impacted by from cost

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

invest continued chemicals. We our core to of and competencies future and growth in areas materials and advanced ULTRASTREAM

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

earnings the collateral of letter period. the was incremental increase the decrease cash Cash $XX used required and in on facility operating financing addition of prior from year year from working activities in the refinancing year the on by credit required the $XXX used obligations. the cash the XXXX, the capital. activities driven of in cash impact and XX, million, prior December contingency was equivalents letter was $XX X, to exchange transactions provided portion million cash, from escrows of of ongoing credit of $X $X in driven announced secure after driven bottom Cash an related represents presented of million slide, transactions, facility the legal rates at to of cash of on the March primarily by under quarter million compared of fees the the cash prior effect new by to the in million, quarter-to-date financing cash $XXX various excluding activities primarily cash cash end mainly Restricted included $XX from of financing expenses, Restricted As million activities by funding $XX primarily of by outside was and cash million, by XXXX. financial net in net to quarter a U.S. and use provided use proceeds million period collateral cash

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

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

Jim Continenza

summary, Dave. Thank environment to In we challenging you, and unusual through overall an deliver business continue growth. navigate

key customer and strategy. satisfaction continue share the in businesses, reflect to market our ongoing increase success achievements also of which print in see We

and as we as As a to we print to materials chemicals. commercial stated, initiatives number focus in on continue well of long-term growth plan advanced

execute Have to good in We innovations. continued call also for to you and and Thank on customer-first Kodak the invest a Kodak continue model. One product all in interest at our We Eastman Kodak. attending will your evening. continue

Operator

the XXXX That you concludes Kodak earnings Eastman first the all day. of rest call. your enjoy I quarter hope

disconnect lines may You your now