Financial Data and Key Metrics - Revenue for Q3 2024 was $261 million, down $8 million (3%) compared to $269 million in Q3 2023 [9][18] - Gross profit for Q3 2024 was 17%, down from 19% in Q3 2023, impacted by higher aluminum costs, inventory reserve adjustments, and changes in employee benefit reserves [9][19][20] - Net income for Q3 2024 was $18 million, up $16 million from $2 million in Q3 2023, excluding non-cash changes in workers' compensation and employee benefit reserves [20][21] - Operational EBITDA for Q3 2024 was $1 million, down from $12 million in Q3 2023, impacted by higher manufacturing costs and litigation expenses [22][23] - Cash and cash equivalents at the end of Q3 2024 were $214 million, a decrease of $41 million from December 31, 2023, due to CapEx investments and working capital build-up [32][39] Business Line Performance - Film sales increased in motion picture and still film, with a planned shutdown in November to modernize the manufacturing plant [11][12] - Advanced Materials and Chemicals (AMC) initiatives, including film, chemicals, and substrate coating for EVs, continue to grow, with investments in the reagent facility and cGMP clean lab [11] - Commercial print benefited from a favorable ITC ruling on plates tariffs, providing a competitive advantage ranging from 91.83% to 353.09% [14] Market Performance - Revenue decline slowed in Q3 2024 compared to recent quarters, reflecting the company's focus on driving smart revenue and profitability [18] - The Eastman Business Park saw significant infrastructure investments, with the reopening of a building and the return of U.S. jobs [13] Strategic Direction and Industry Competition - The company remains committed to innovation, operational efficiency, and smart revenue growth, with ongoing investments in AMC, battery technology, and substrate coating [8][41] - Kodak continues to focus on maintaining a competitive edge in the U.S. market, particularly in commercial print, following the ITC ruling on plates tariffs [14] Management Commentary on Operating Environment and Future Outlook - Management highlighted the challenges of tariffs and subsidies faced by the U.S. printing industry, but emphasized the company's resilience and commitment to U.S. jobs [10][14] - The company expects to continue investing in growth initiatives, including battery technology and clean lab facilities, while maintaining compliance with financial covenants [40][41] Other Important Information - The company's cash flow from operating activities for the nine months ending September 30, 2024, was a use of $11 million, driven by net earnings and changes in working capital [33] - Cash used in investing activities increased by $7 million, primarily due to higher capital additions, partially offset by proceeds from asset sales [35] - Restricted cash decreased by $14 million, reflecting efforts to reduce cash collateral and escrow requirements [37] Summary of Q&A Session - No formal Q&A session was held during the call, but the Investor Relations team is available for follow-up [6]

| --- | --- | --- | --- | |--------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | Third Quarter 2024 | | | | | Earnings Call | | | | | November 12, 2024 | | | | Cautionary Statement Regarding Forward-looking Statements Pursuant to Safe Harbor Provisions of The Private Securities Litigation Reform Act of 1995 Cautionary Statement Regarding Forward-Looking Statements This presentation includes "forward-looking statements" as that term is defined under the Private Sec ...

Revenue Performance - Consolidated revenues of $261 million, a decrease of $8 million or 3% compared to Q3 2023[1] - Print segment revenue of $182 million, a decrease of $14 million compared to Q3 2023[6] - Advanced Materials & Chemicals segment revenue of $71 million, an increase of $7 million compared to Q3 2023[6] - Revenue decline of $9 million or 3% excluding the impact of foreign exchange[2] - Total revenues for Q3 2024 were $261 million, a slight decrease from $269 million in Q3 2023[21] Profitability Metrics - Gross profit of $45 million, a decrease of $5 million or 10% compared to Q3 2023[1] - GAAP net income of $18 million, an increase of $16 million or 800% compared to Q3 2023[1] - Operational EBITDA of $1 million, a decrease of $11 million or 92% compared to Q3 2023[1] - Operational EBITDA for the Print segment was $(9) million, a decrease of $13 million compared to Q3 2023[6] - Operational EBITDA for the Advanced Materials & Chemicals segment was $6 million, an increase of $2 million compared to Q3 2023[6] - Net Income for Q3 2024 was $18 million, an increase of 800% compared to $2 million in Q3 2023[19] - Operational EBITDA for Q3 2024 was $1 million, a decrease of 92% compared to $12 million in Q3 2023[19] - Gross profit for Q3 2024 was $45 million, down from $50 million in Q3 2023[21] Cash and Liquidity - Cash balance of $214 million, a decrease of $41 million from December 31, 2023[1] - Cash and cash equivalents decreased to $214 million in September 2024 from $255 million in December 2023[24] - Net cash used in operating activities was $11 million for the nine months ended September 30, 2024, compared to $21 million provided by operating activities in the same period in 2023[28] - Additions to properties in the nine months ended September 30, 2024 were $39 million, up from $15 million in the same period in 2023[28] - Net cash used in financing activities was $21 million for the nine months ended September 30, 2024, compared to $87 million provided by financing activities in the same period in 2023[28] - Cash, cash equivalents, and restricted cash decreased to $322 million at the end of September 2024 from $374 million at the end of September 2023[28] Asset and Investment Changes - Total assets increased to $2,388 million in September 2024 from $2,355 million in December 2023[24]

Core Insights - Eastman Kodak Company reported third-quarter 2024 financial results, showing a decrease in consolidated revenues and gross profit compared to the same period in 2023, but a significant increase in GAAP net income [1][2][4]. Financial Performance - Consolidated revenues for Q3 2024 were $261 million, down from $269 million in Q3 2023, representing a decrease of $8 million or 3% [1][4]. - Gross profit decreased to $45 million from $50 million in Q3 2023, a decline of $5 million or 10% [1][4]. - The gross profit percentage fell to 17% from 19% year-over-year, a decrease of 2 percentage points [1]. - GAAP net income increased to $18 million from $2 million in Q3 2023, an increase of $16 million or 800% [1][2]. - Operational EBITDA for Q3 2024 was $1 million, down from $12 million in Q3 2023, a decrease of $11 million or 92% [1][2]. Cash Position - The cash balance at the end of Q3 2024 was $214 million, a decrease of $41 million from $255 million on December 31, 2023 [1][3][4]. - The decrease in cash was attributed to capital expenditures for growth initiatives and lower profitability from operations, partially offset by improvements in working capital [3][4]. Strategic Focus - Kodak's management emphasized a focus on long-term strategic plans, including increasing operational efficiency and investing in innovation [1][4]. - The Advanced Materials & Chemicals (AM&C) group is highlighted as a key growth area, with ongoing investments in manufacturing capabilities [1][4]. - Kodak received a favorable determination from the U.S. International Trade Commission regarding tariffs on aluminum printing plates, which is expected to benefit the U.S. printing industry [1][4]. Segment Performance - Revenue from the Print segment was $182 million in Q3 2024, down from $196 million in Q3 2023, a decrease of $14 million [5]. - The Chemicals segment revenue increased to $71 million from $64 million, an increase of $7 million [5]. - Advanced Materials & Chemicals reported revenue of $5 million, up from $4 million, an increase of $1 million [5]. Operational Challenges - The decline in operational EBITDA was primarily driven by higher manufacturing costs, particularly due to increased aluminum costs and changes in employee benefit reserves [2][4]. - Kodak's management acknowledged the impact of litigation costs and inventory reserve adjustments on financial performance [2]. Future Outlook - Kodak plans to continue investing in operational efficiency and expanding manufacturing capacity to meet customer demand [1][4]. - The company aims to streamline operations and develop leading-edge products to enhance customer value [1][4].

Financial Performance - Consolidated revenues for Q3 2024 were $261 million, a decrease of $8 million (3%) compared to Q3 2023, while revenues for the nine months ended September 30, 2024 were $777 million, down $65 million (8%) year-over-year [122]. - Print revenues in Q3 2024 were $182 million, a decrease of $14 million (7%), and $550 million for the nine months, down $70 million (11%) compared to the prior year [123]. - In the third quarter of 2024, Kodak's revenues declined by $8 million to $261 million compared to $269 million in the same period of 2023, primarily due to a $15 million decrease in Print volume [146]. - For the nine months ended September 30, 2024, revenues decreased by $65 million to $777 million from $842 million in the same period of 2023, driven by lower volume in Print and unfavorable foreign currency fluctuations [147]. - Kodak's gross profit for the third quarter of 2024 was $45 million, representing a gross margin of 17%, down from $50 million and 19% in the same period of 2023 [144]. - Year-to-date gross profit for the nine months ended September 30, 2024, was $152 million, a decrease of $11 million compared to $163 million in the same period of 2023 [149]. Cost and Expenses - Kodak is facing increased manufacturing costs due to lower volumes and rising labor, material, and distribution costs, alongside supply chain disruptions [124]. - Selling, general and administrative expenses increased by $4 million in the third quarter of 2024, totaling $44 million, primarily due to litigation-related costs [150]. - Year-to-date SG&A expenses rose by $22 million to $136 million, influenced by investments in IT systems and costs associated with the drupa trade show [151]. - The company recorded restructuring costs of $1 million and $6 million for the three and nine months ended September 30, 2024, respectively [179]. - Future annual cash savings from restructuring actions are expected to be approximately $10 million, impacting SG&A and Cost of revenues [180]. Revenue Streams - Advanced Materials and Chemicals revenues increased by $7 million (11%) in Q3 2024 and $6 million (3%) year-to-date, totaling $71 million and $203 million respectively [123]. - Kodak's Print segment revenues for the third quarter of 2024 were $182 million, down from $196 million in the same period of 2023 [155]. - Kodak reported a decrease in Print revenues of approximately $14 million for the three months ended September 30, 2024, primarily due to lower volumes and less favorable pricing in Prepress consumables and Electrophotographic Printing Solutions [164]. - For the nine months ended September 30, 2024, Print revenues decreased by approximately $70 million, attributed to lower volumes in various segments and unfavorable foreign currency impacts [165]. - Advanced Materials and Chemicals revenues improved by $7 million for the three months ended September 30, 2024, driven by volume increases and pricing improvements [171]. Strategic Initiatives - Kodak has implemented pricing actions and customer-focused initiatives to mitigate increased manufacturing costs, positively impacting profitability in certain segments [125]. - Kodak's strategy includes focusing on core competencies in print and advanced materials, promoting film usage, and streamlining processes for cost reductions [134]. - Kodak launched the KODAK PROSPER ULTRA 520 Digital Press, utilizing ULTRASTREAM inkjet technology, aimed at enhancing print quality [136]. - The company plans to begin production of Diagnostic Test Reagent solutions in a new cGMP lab by 2025 [141]. Cash Flow and Liquidity - Kodak's cash balance at the end of the quarter was $214 million, reflecting a decrease of $41 million from December 31, 2023 [181]. - As of September 30, 2024, Kodak held approximately $116 million in cash and cash equivalents in the U.S. and $98 million outside the U.S., with total cash, cash equivalents, and restricted cash at $322 million [198]. - Net cash from operating activities declined by $32 million for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to a decrease in insurance reimbursements and increased investment in inventory [194]. - Kodak's net cash used in investing activities increased by $7 million for the nine months ended September 30, 2024, due to a $24 million increase in additions to properties [195]. - Net cash used in financing activities increased by $108 million for the nine months ended September 30, 2024, driven by $90 million in net proceeds from financing transactions in Q3 2023 [196]. - Kodak's liquidity position is deemed adequate to fund operating and investing needs, dependent on generating positive cash flows from operations and managing worldwide cash through intercompany loans [190]. Investments and Future Outlook - Kodak's investment in Wildcat Discovery Technologies, Inc. amounted to $25 million to develop new battery materials, including EV batteries [138]. - The outstanding amount of inter-company loans to the U.S. was $463 million as of September 30, 2024, including $188 million from Kodak's international finance center [185]. - Kodak expects total capital expenditures for 2024 to be between $50 million and $60 million, with $39 million spent in the first nine months of 2024 [207]. - Kodak's plans to return to sustainable positive cash flow include generating profitable revenues through pricing actions and customer-focused initiatives, and reducing operating expenses [189]. - The company expects improvements in cash flow from financing transactions and operational efficiencies to support ongoing operations and growth investments [182].

Core Viewpoint - Kodak will host its Third-Quarter 2024 Earnings call on November 12, 2024, at 5:00 pm ET, led by Executive Chairman and CEO James Continenza and CFO David Bullwinkle [1] Group 1 - The earnings call will involve discussions with financial analysts and investors regarding Kodak's financial results [1] - The audio conference details are available through a registration link [1]

Financial Data and Key Metrics Changes - Revenues decreased by $28 million or 9% compared to the prior year quarter, with a decrease of $24 million or 8% when excluding foreign exchange impact [6][13] - Gross profit decreased by $5 million or 8% compared to the prior year quarter, but gross profit percentage increased to 22% from 21% in the prior year quarter [5][13] - Net income for the second quarter was $26 million, down from $35 million in the prior year quarter, a decrease of $9 million [14] - Operational EBITDA for the quarter was $12 million, down from $22 million in the prior year quarter, a decline of $10 million [14][17] Business Line Data and Key Metrics Changes - The Advanced Materials & Chemicals (AMC) segment is highlighted as a key growth area, with investments aimed at long-term opportunities [7][23] - The company continues to invest in manufacturing capacity for film to meet growing demand, indicating a focus on traditional business lines [7][23] Market Data and Key Metrics Changes - The company reported a decrease in cash provided by operating activities to $10 million from $21 million in the prior year period [18] - Cash and cash equivalents at the end of the second quarter were $251 million, a decrease of $4 million from December 31, 2023 [18] Company Strategy and Development Direction - The company is committed to executing its long-term plan, focusing on operational efficiencies, innovation, and aligning with the right customers [5][12] - Kodak is investing in its core competencies in Advanced Materials & Chemicals, which is seen as essential for future growth and profitability [7][23] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the company's progress despite a challenging global environment, emphasizing a focus on smart revenue and cost reductions [12][22] - The company remains in compliance with all applicable financial covenants, indicating a stable financial position [22] Other Important Information - The company is filing a shelf registration statement to renew its expiring primary shelf registration, maintaining flexibility to access public markets [11] - Actions have been implemented to reduce investment risk in the U.S. pension plan, including outsourcing investment management [10] Summary of Q&A Session - No formal Q&A session was held during the call, but the management team expressed gratitude for the interest in Kodak and reiterated their commitment to customer focus and operational excellence [4][24]

Financial Performance - Consolidated revenues for Q2 2024 were $267 million, a decrease of $28 million or 9% compared to Q2 2023[1] - GAAP net income for the quarter was $26 million, down $9 million or 26% from $35 million in Q2 2023[2] - Operational EBITDA decreased to $12 million, a decline of $10 million or 45% compared to $22 million in Q2 2023[2] - Total revenues for Q2 2024 were $267 million, down 9.5% from $295 million in Q2 2023[16] - Operational EBITDA for Q2 2024 was $12 million, a decline of 45% compared to $22 million in Q2 2023[14] - Gross profit decreased to $58 million in Q2 2024 from $63 million in Q2 2023, reflecting a gross margin of 21.7%[16] - Selling, general and administrative expenses rose to $47 million in Q2 2024, up from $40 million in Q2 2023[16] - Research and development costs were $8 million in Q2 2024, slightly down from $9 million in Q2 2023[16] - Net cash provided by operating activities was $10 million in Q2 2024, down from $21 million in Q2 2023[22] Cash and Assets - The cash balance at the end of the quarter was $251 million, a decrease of $4 million from December 31, 2023[3] - Cash and cash equivalents at the end of Q2 2024 were $251 million, a decrease from $255 million at the end of 2023[19] - Total assets increased to $2,359 million as of June 30, 2024, compared to $2,355 million at the end of 2023[19] - Total liabilities decreased to $1,184 million in Q2 2024 from $1,214 million in Q4 2023[20] Revenue Segments - Revenue from the Print segment was $186 million, down from $215 million in Q2 2023, while Advanced Materials & Chemicals revenue was $73 million, slightly up from $72 million[5] Strategic Initiatives - Kodak is investing in its Advanced Materials & Chemicals group, with a cGMP facility for diagnostic test reagents set to begin production in 2025[1] - The company is focusing on generating smart revenue to enhance profitability, despite the decline in overall revenue[4] - Kodak plans to continue streamlining operations and investing in new products and businesses in the second half of the year[4] - The company announced commitments for several KODAK PROSPER ULTRA 520 Presses following its participation in the drupa tradeshow[1]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: June 30, 2024 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | --- | --- | |---------------------------------------------------------------------------------------------|------------------------------------------------------------| | | | | For ...

ROCHESTER, N.Y., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Eastman Kodak Company (NYSE: KODK) today reported financial results for the second quarter 2024. Second-quarter 2024 highlights include: Consolidated revenues of $267 million, compared with $295 million for Q2 2023, a decrease of $28 million or 9 percent Gross profit of $58 million, compared with $63 million for Q2 2023, a decrease of $5 million or 8 percent Gross profit percentage of 22 percent, compared with 21 percent for Q2 2023, an increase of 1 percen ...