Eastman Kodak reports lower sales but improved net income
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Eastman Kodak Co. reported second-quarter sales were down to $295 million, compared with $32 million for Q2 2022, a decrease of $26 million or 8 percent. Gross profit was $63 million, compared to $51 million for Q2 2022, an increase of $12 million or 24 percent. GAAP net income was $35 million, compared with $20 million for Q2 2022, an increase of $15 million.
“Kodak delivered strong results in the second quarter, once again increasing our gross profit and Operational EBITDA year over year despite challenging business conditions affecting the markets we serve,” said Jim Continenza, Kodak’s Executive Chairman and CEO. “A number of factors have contributed to our success: a strong leadership team, dedicated employees and a clearly defined long-term plan focused on driving innovation, productivity and smart revenue in our core businesses of print and advanced materials & chemicals. We are proud to be an industrial manufacturer and we are concentrating on what we do best. As part of the controlled introduction of our new inkjet presses, we placed our first two new machines during the quarter, one KODAK PROSPER ULTRA 520 Press and one PROSPER 7000 Turbo Press, and we expect them to be in production in the third quarter. We also continued to invest in our print business, acquiring Graphic Systems Services, Inc. (GSS), whose expertise and resources will help us provide our customers with more complete inkjet solutions. More recently, we proactively refinanced our term debt to strengthen our financial foundation and we announced a perpetual brand licensing agreement with EssilorLuxottica, a global vision care industry leader. Looking forward, we will continue to focus on executing our strategic plan and serving our customers, which is the key to building long-term value for our employees and shareholders.”
“Kodak improved its year-over-year cash performance for the first half of 2023,” said David Bullwinkle, Kodak’s CFO. “Our quarter-end balance of $223 million reflects a year-over-year improvement in cash flow from operations of $124 million for the first half of 2023. We also increased our year-over-year gross profit in Q2 for the third consecutive quarter while continuing to invest in print technology and the emerging businesses in our Advanced Materials & Chemicals group. For the second half of 2023 we’ll continue to execute our long-term strategic plan with an emphasis on driving innovation, productivity and smart revenue.”
Revenue and Operational EBITDA by Reportable Segment Q2 2023 vs. Q2 2022
| ($ millions) | |||||||||||||||
| Q2 2023 Actuals | Advanced Materials & Chemicals |
Brand | Total | ||||||||||||
| Revenue |
$ |
215 |
|
$ |
72 |
$ |
4 |
|
$ |
291 |
|
||||
| Operational EBITDA * |
$ |
8 |
|
$ |
11 |
$ |
3 |
|
$ |
22 |
|
||||
| Q2 2022 Actuals | Advanced Materials & Chemicals |
Brand | Total | ||||||||||||
| Revenue |
$ |
252 |
|
$ |
61 |
$ |
4 |
|
$ |
317 |
|
||||
| Operational EBITDA * |
$ |
6 |
|
$ |
1 |
$ |
4 |
|
$ |
11 |
|
||||
| Q2 2023 vs. Q2 2022 Actuals B/(W) |
Advanced Materials & Chemicals |
Brand | Total | ||||||||||||
| Revenue |
$ |
(37 |
) |
$ |
11 |
$ |
– |
|
$ |
(26 |
) |
||||
| Operational EBITDA |
$ |
2 |
|
$ |
10 |
$ |
(1 |
) |
$ |
11 |
|
||||
| Q2 2023 Actuals on constant currency vs. Q2 2022 Actuals B/(W) |
Advanced Materials & Chemicals |
Brand | Total | ||||||||||||
| Revenue |
$ |
(37 |
) |
$ |
11 |
$ |
– |
|
$ |
(26 |
) |
||||
| Operational EBITDA |
$ |
2 |
|
$ |
10 |
$ |
(1 |
) |
$ |
11 |
|
||||
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. Kodak also no longer breaks out its photographic products sales.