Eastman Kodak reports flat income on lower sales

Eastman Kodak Co. reported third-quarter revenues of $269 million, compared with $289 million for Q3 2022, a decrease of $20 million or 7 percent. Net income was $2 million, flat compared with Q3 2022. A quarter-end cash balance of $246 million, compared with $217 million on December 31, 2022, an increase of $29 million. Cash flow from operations improved $151 million in the nine months ended September 30, 2023, compared with the prior-year period.

“Kodak continued to execute its long-term plan and deliver strong results in the third quarter despite ongoing, extraordinary challenges including inflation, high-interest rates, bank failures, labor shortages and now a new war,” said Jim Continenza, Kodak’s Executive Chairman and CEO. “As business conditions continued to worsen, we continued to improve our performance, adapting to circumstances never encountered before and making the changes necessary to deliver increases in gross profit and Operational EBITDA year over year for the fourth consecutive quarter. Through it all, we have continued to focus on driving operational efficiency and smart revenue and investing in initiatives that leverage our strengths as an industrial manufacturer. Our investments in growth initiatives in our Advanced Materials & Chemicals group have resulted in increasing contributions from those businesses, and our investments in print have resulted in the introduction of groundbreaking inkjet presses capable of replacing offset technology. I’m extremely proud of our remarkable ability to build a strong foundation and continue our momentum in the face of unprecedented headwinds, and I’d like to thank our employees for their hard work and resilience and our customers for their loyalty and support during this period.”

For the quarter ended September 30, 2023, revenues were $269 million, a decline of $20 million or 7 percent compared to the same period in 2022. GAAP net income was $2 million for the quarter, flat compared with Q3 2022. Operational EBITDA for the third quarter of 2023 was $12 million, compared with $7 million in the prior-year period. The increase was primarily driven by improved profitability related to pricing rationalization and improved operational efficiency executing on cost controls partially offset by higher continued ongoing global cost increases and lower volumes.

Kodak no longer breaks out photographic materials sales but, in the earnings call with analysts, Continenza spoke of the company’s continued commitment to film manufacturing: “We also continue to see growing demand in our still and motion picture film business. We are committed to manufacturing film as long as we have demand from our customers. I’m proud of our role in continuing to make this artistic medium available to photographers, directors, filmmakers, who love the unique look and quality of film.”

Revenue and Operational EBITDA by Reportable Segment Q3 2023 vs. Q3 2022

* Total Operational EBITDA is a non-GAAP financial measure. The reconciliation between GAAP and non-GAAP measures is provided in Appendix A of this press release.

** The impact of foreign exchange represents the foreign exchange impact using average foreign exchange rates for the three months ended September 30, 2022, rather than the actual average exchange rates in effect for the three months ended September 30, 2023.

Effective February 2023 Kodak changed its organizational structure. The Traditional Printing segment and the Digital Printing segment were combined into one segment, named the Print segment. No changes were made to Kodak’s other segments. Eastman Business Park segment is not a reportable segment and is excluded from the table above.