Kodak reports first-quarter 2018 financial results
ROCHESTER, N.Y.–(BUSINESS WIRE)–Eastman Kodak Company (NYSE:KODK) today reported financial results for the first quarter 2018, reporting a net loss of $25 million on revenues of $357 million and continued growth in its KODAK SONORA Process-Free Plates, KODAK FLEXCEL NX Packaging and KODAK PROSPER Inkjet businesses.
Highlights include:
- Revenues for the quarter ending March 31, 2018 were $357 million, flat compared with the first quarter of 2017.
- The company reported a first-quarter net loss of $25 million and Operational EBITDA of $1 million, down $5 million compared with the first quarter of 2017.
- The company ended the quarter with a cash balance of $313 million, down $31 million from the December 31, 2017 cash balance of $344 million.
“Our use of cash for the first quarter was in line with our expectations and significantly improved from the same period a year ago,” said David Bullwinkle, Kodak Chief Financial Officer. “We have meaningfully improved productivity and are on track to deliver over $50 million year on year cost savings in 2018.”
Print Systems Division (PSD), Kodak’s largest division, had Q1 revenues of $216 million, an increase of $3 million compared with Q1 2017. Operational EBITDA for the quarter was $4 million, compared with $12 million for the same period a year ago. The decline was due mainly to higher costs for aluminum, the primary material used to manufacture the division’s offset printing plate products.
PSD’s environmentally-advantaged KODAK SONORA Process Free Plates had continued strong performance for the quarter, delivering 21 percent year-over-year growth in unit sales. SONORA Plates now account for 21 percent of the division’s total plate unit sales.
During the quarter PSD launched SONORA X Process-Free plates, which expand the reach of Kodak’s process-free plates from 30% to 80% of market applications. PSD also launched the KODAK NEXFINITY Digital Press, which is positioned to become the most versatile sheetfed digital press on the market.
Enterprise Inkjet Systems Division (EISD), including the KODAK PROSPER and KODAK VERSAMARK businesses and the investment in ULTRASTREAM inkjet technology, had first-quarter revenues of $31 million, down from $37 million in the same period in 2017. Operational EBITDA was $0, flat with the same period the prior year.
For the first quarter of 2018 the PROSPER business continued to deliver strong performance with year-over-year annuity growth of 14 percent. The company continues to invest in the development of KODAK ULTRASTREAM, the next-generation inkjet writing system, which is scheduled for launch in 2019.
Flexographic Packaging Division (FPD) includes KODAK FLEXCEL NX Systems and Plates as well as other packaging products, such as analog flexographic plates and letterpress plates, proofing products and services. FPD had strong performance for the quarter, driven by consistent growth in KODAK FLEXCEL NX Plates. Revenues for Q1 were $37 million, up $4 million compared with the same period a year ago. Operational EBITDA for Q1 was $7 million, an improvement of $1 million compared with the first quarter of 2017.
For the quarter, FLEXCEL NX plate volume continued to grow, increasing 15 percent year over year. The division continues to invest in new product development and infrastructure, including a plate manufacturing line in Weatherford, Oklahoma scheduled to be on line in early 2019.
Software and Solutions Division (SSD) revenues for Q1 were $20 million, a $1 million decline compared with the same period last year. Operational EBITDA was $0, flat with the same period in 2017.
Consumer and Film Division (CFD) revenues for the first quarter were $48 million, compared with $49 million for Q1 2017. Operational EBITDA declined from negative $4 million in Q1 2017 to negative $6 million in Q1 2018. CFD’s motion picture film business had strong performance for the quarter, with a revenue increase of 20 percent compared with the same quarter in the prior year.
Advanced Materials and 3D (AM3D) had Operational EBITDA for the quarter of negative $4 million, an improvement of $4 million compared with the same period the prior year. The division continues to focus on investments in light-blocking particles, printed electronics and advanced materials.
Eastman Business Park Division (EBPD) had Q1 2018 revenues of $4 million, flat with the same period the prior year. Operational EBITDA was flat compared with the first quarter of 2017.
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Revenue and Operational EBITDA Q1 2018 vs. Q1 2017 |
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| ($ millions) | ||||||||||||||||||||||||||||||||||||||||||||||
| Q1 2018 Actuals | PSD | EISD | FPD | SSD | CFD | AM3D | EBPD | Total EK | ||||||||||||||||||||||||||||||||||||||
| Revenue | $ | 216 | $ | 31 | $ | 37 | $ | 20 | $ | 48 | $ | 1 | $ | 4 | $ | 357 | ||||||||||||||||||||||||||||||
| Operational EBITDA * | $ | 4 | $ | – | $ | 7 | $ | – | $ | (6 | ) | $ | (4 | ) | $ | – | $ | 1 | ||||||||||||||||||||||||||||
| Q1 2017 Actuals | PSD | EISD | FPD | SSD | CFD | AM3D | EBPD | Total EK | ||||||||||||||||||||||||||||||||||||||
| Revenue | $ | 213 | $ | 37 | $ | 33 | $ | 21 | $ | 49 | $ | – | $ | 4 | $ | 357 | ||||||||||||||||||||||||||||||
| Operational EBITDA * | $ | 12 | $ | – | $ | 6 | $ | – | $ | (4 | ) | $ | (8 | ) | $ | – | $ | 6 | ||||||||||||||||||||||||||||
| Q1 2018 Actuals vs. Q1 2017 Actuals
B/(W) |
PSD | EISD | FPD | SSD | CFD | AM3D | EBPD | Total EK | ||||||||||||||||||||||||||||||||||||||
| Revenue | $ | 3 | $ | (6 | ) | $ | 4 | $ | (1 | ) | $ | (1 | ) | $ | 1 | $ | – | $ | – | |||||||||||||||||||||||||||
| Operational EBITDA * | $ | (8 | ) | $ | – | $ | 1 | $ | – | $ | (2 | ) | $ | 4 | $ | – | $ | (5 | ) | |||||||||||||||||||||||||||
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Q1 2018 Actuals on constant currency ** vs. Q1 2017 Actuals B/(W) |
PSD | EISD | FPD | SSD | CFD | AM3D | EBPD | Total EK | ||||||||||||||||||||||||||||||||||||||
| Revenue | $ | (11 | ) | $ | (8 | ) | $ | 2 | $ | (2 | ) | $ | (2 | ) | $ | 1 | $ | – | $ | (20 | ) | |||||||||||||||||||||||||
| Operational EBITDA * | $ | (6 | ) | $ | (1 | ) | $ | – | $ | – | $ | (3 | ) | $ | 4 | $ | – | $ | (6 | ) | ||||||||||||||||||||||||||
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* 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. |
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** The impact of foreign exchange represents the 2017 foreign exchange impact using average foreign exchange rates for the three months ended March 31, 2017, rather than the actual exchange rates in effect for the three months ended March 31, 2018. |
About Kodak
Kodak is a technology company focused on imaging. We provide – directly and through partnerships with other innovative companies – hardware, software, consumables and services to customers in graphic arts, commercial print, publishing, packaging, entertainment and commercial films, and consumer products markets. With our world-class R&D capabilities, innovative solutions portfolio and highly trusted brand, Kodak is helping customers around the globe to sustainably grow their own businesses and enjoy their lives. For additional information on Kodak, visit us at kodak.com, follow us on Twitter @Kodak, or like us on Facebook at Kodak.