Kodak reports $1.2 billion revenues and $116 million earnings for 2019
Eastman Kodak Co. reported full-year 2019 financial results. including revenues of $1.2 billion (about $100 million less than the prior year), continued growth in key product areas and net earnings of $116 million (compared to a $16 million loss in 2018). The company’s revenues were boosted by the sales of its Flexographic Packaging Division.
Other highlights:
- Key product lines achieved strong year-over-year growth for the full year 2019:
- Volume for KODAK SONORA Process Free Plates grew by 22 percent.
- Annuity revenues for the KODAK PROSPER inkjet platform grew by 5 percent.
- The company ended the year with a cash balance of $233 million, flat compared with year-end 2018.
- The company completed the sale of its Flexographic Packaging Division and repaid in full $395 million of its First Lien Term Loans.
“In many ways, 2019 was a transformative year for the creation of One Kodak,” said Jim Continenza, Kodak’s Executive Chairman. “We consolidated our divisional structure, strengthened our financial position and returned our focus to our core print and advanced materials and chemicals businesses. For 2020, we’ll continue to become more customer-centric, launch groundbreaking print products and, most important, focus on generating cash.”
For the year ended December 31, 2019, revenues decreased by approximately $78 million compared with the same period in 2018. Kodak ended the year with a cash balance of $233 million, flat when compared to the December 31, 2018 cash balance.
“We generated positive cash flow in the fourth quarter of 2019 and had breakeven cash flow for the full year 2019,” said David Bullwinkle, Kodak’s CFO. “We also delivered strong performance in our key growth areas of SONORA Process Free Plates and PROSPER inkjet annuities in 2019. Looking forward, we will continue to execute on opportunities to operate more efficiently and grow profitable revenue to achieve our goal of generating cash on a consistent basis.”
Effective January 2020, Kodak changed its organizational structure. Prepress Solutions, formerly part of the Print Systems segment, will operate as a separate segment named the Traditional Printing segment. Electrophotographic Printing Solutions, formerly part of the Print Systems segment, will be combined with the Enterprise Inkjet Systems segment and Kodak Software segment to form the Digital Print segment. The Brand, Imaging and Film segment, except for the licensing of the Kodak brand to third parties, will be combined with the Advanced Materials and 3D Printing segment to form the Advanced Materials and Chemicals segment. The licensing of the Kodak brand to third parties will operate as a separate segment named the Brand segment. The Eastman Business Park segment will no longer be a reportable segment.
|
Revenue and Operational EBITDA FY 2019 vs. FY 2018 |
|||||||||||||||||||||
| ($ millions) | |||||||||||||||||||||
| FY 2019 Actuals |
PSD |
EISD | KSD | BFID | AM3D | EBPD |
Total EK |
||||||||||||||
| Revenue |
$ |
836 |
$ |
128 |
$ |
56 |
$ |
209 |
$ |
3 |
$ |
10 |
$ |
1,242 |
|||||||
| Operational EBITDA * |
$ |
41 |
$ |
(5) |
$ |
2 |
$ |
(13) |
$ |
(12) |
$ |
(1) |
$ |
12 |
|||||||
| FY 2018 Actuals |
PSD |
EISD |
KSD |
BFID |
AM3D |
EBPD |
Total EK |
||||||||||||||
| Revenue |
$ |
896 |
$ |
136 |
$ |
65 |
$ |
210 |
$ |
4 |
$ |
9 |
$ |
1,320 |
|||||||
| Operational EBITDA * |
$ |
28 |
$ |
4 |
$ |
7 |
$ |
(22) |
$ |
(12) |
$ |
(4) |
$ |
1 |
|||||||
| FY 2019 vs. FY 2018 Actuals B/(W) |
PSD |
EISD |
KSD |
BFID |
AM3D |
EBPD |
Total EK |
||||||||||||||
| Revenue |
$ |
(60) |
$ |
(8) |
$ |
(9) |
$ |
(1) |
$ |
(1) |
$ |
1 |
$ |
(78) |
|||||||
| Operational EBITDA * |
$ |
13 |
$ |
(9) |
$ |
(5) |
$ |
9 |
$ |
– |
$ |
3 |
$ |
11 |
|||||||
| FY 2019 Actuals on constant currency ** vs. FY 2018 Actuals B/(W) |
PSD |
EISD |
KSD |
BFID |
AM3D |
EBPD |
Total EK |
||||||||||||||
| Revenue |
$ |
(39) |
$ |
(6) |
$ |
(8) |
$ |
2 |
$ |
(1) |
$ |
1 |
$ |
(51) |
|||||||
| Operational EBITDA * |
$ |
10 |
$ |
(9) |
$ |
(5) |
$ |
10 |
$ |
– |
$ |
3 |
$ |
9 |
|||||||
* 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 2019 foreign exchange impact using average foreign exchange rates for the twelve months ended December 31, 2018, rather than the actual exchange rates in effect for the twelve months ended December 31, 2019.
FINANCIAL STATEMENTS
| EASTMAN KODAK COMPANY | ||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||
| (in millions) | ||||||||
|
Twelve Months Ended December 31, |
||||||||
|
2019 |
2018 |
|||||||
| Revenues | ||||||||
| Sales |
$ |
979 |
|
$ |
1,039 |
|
||
| Services |
|
263 |
|
|
281 |
|
||
| Total revenues |
|
1,242 |
|
|
1,320 |
|
||
| Cost of revenues | ||||||||
| Sales |
|
877 |
|
|
946 |
|
||
| Services |
|
183 |
|
|
194 |
|
||
| Total cost of revenues |
|
1,060 |
|
|
1,140 |
|
||
| Gross profit |
|
182 |
|
|
180 |
|
||
| Selling, general and administrative expenses |
|
211 |
|
|
224 |
|
||
| Research and development costs |
|
42 |
|
|
48 |
|
||
| Restructuring costs and other |
|
16 |
|
|
17 |
|
||
| Other operating expense, net |
|
15 |
|
|
9 |
|
||
| Loss from continuing operations before interest expense, pension income excluding service cost component, other charges, net and income taxes |
|
(102 |
) |
|
(118 |
) |
||
| Interest expense |
|
16 |
|
|
9 |
|
||
| Pension income excluding service cost component |
|
(104 |
) |
|
(131 |
) |
||
| Other charges, net |
|
46 |
|
|
17 |
|
||
| Loss from continuing operations before income taxes |
|
(60 |
) |
|
(13 |
) |
||
| Provision (benefit) for income taxes |
|
31 |
|
|
(4 |
) |
||
| Loss from continuing operations |
|
(91 |
) |
|
(9 |
) |
||
| Earnings (loss) from discontinued operations, net of income taxes |
|
207 |
|
|
(7 |
) |
||
| Net Earnings (Loss) |
$ |
116 |
|
$ |
(16 |
) |
||
The notes accompanying the financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 are an integral part of these consolidated financial statements.