Kodak reports full-year 2018 financial results
ROCHESTER, N.Y., Monday, April 01, 2019 — Eastman Kodak Company (NYSE: KODK) today reported financial results for the full year 2018, including a net loss of $16 million on revenues of $1.3 billion and continued growth in key product areas.
Highlights include:
- GAAP net loss of $16 million for the year ended December 31, 2018, compared to GAAP net earnings of $94 million for the year ended December 31, 2017.
- Revenues for 2018 of $1.3 billion compared to revenues for 2017 of $1.4 billion.
- Operational EBITDA for the year of $1 million compared to Operational EBITDA in 2017 of $10 million.
- Key product lines achieved strong year-over-year growth for the full year 2018:
- Volume for KODAK SONORA Process Free Plates grew by 19 percent.
- Annuity revenues for the KODAK PROSPER Press platform grew by 8 percent.
- The company ended the year with a cash balance of $246 million.
- The company entered into a definitive agreement to sell its Flexographic Packaging Division to Montagu Private Equity LLP, a leading private equity firm. FPD is presented within discontinued operations.
“I look forward to working with my team to help Kodak become cash-flow positive and build long-term value for shareholders,” said Jim Continenza, Kodak’s newly appointed Executive Chairman. “Our priorities will be to increase operational efficiency and focus on core competencies to achieve our growth objectives.”
For the year ended December 31, 2018, revenues decreased by approximately $61 million compared with the same period in 2017. Kodak ended the year with a cash balance of $246 million, down from the December 31, 2017 cash balance of $343 million.
“We generated cash in the fourth quarter of 2018 and delivered strong performance in our key growth areas of SONORA Process Free Plates and in PROSPER inkjet annuities,” said David Bullwinkle, Kodak’s CFO. “We expect to close soon on the sale of our Flexographic Packaging Division and will use the proceeds to significantly reduce our term debt and strengthen our balance sheet. In addition, we plan to secure new financing for our remaining term debt, which will allow us to focus on our operations and return to consistent cash generation.”
Revenue and Operational EBITDA FY 2018 vs. FY 2017
| FY 2018 Actuals | PSD | EISD | SSD | CFD | AM3D | EBPD | Total EK |
| Revenue | $ 895 | $ 136 | $ 84 | $ 189 | $ 4 | $ 17 | $ 1,325 |
| Operational EBITDA * | $ 27 | $ 4 | $ – | $ (19) | $ (14) | $ 3 | $ 1 |
| FY 2017 Actuals | PSD | EISD | SSD | CFD | AM3D | EBPD | Total EK |
| Revenue | $ 942 | $ 144 | $ 85 | $ 198 | $ 1 | $ 16 | $ 1,386 |
| Operational EBITDA * | $ 49 | $ 3 | $ (1) | $ (18) | $ (27) | $ 4 | $ 10 |
| FY 2018 vs. FY 2017 Actuals B/(W) |
PSD | EISD | SSD | CFD | AM3D | EBPD | Total EK |
| Revenue | $ (47) | $ (8) | $ (1) | $ (9) | $ 3 | $ 1 | $ (61) |
| Operational EBITDA * | $ (22) | $ 1 | $ 1 | $ (1) | $ 13 | $ (1) | $ (9) |
| FY 2018 Actuals on constant currency ** vs. FY 2017 Actuals B/(W) |
PSD | EISD | SSD | CFD | AM3D | EBPD | Total EK |
| Revenue | $ (61) | $ (10) | $ (2) | $ (11) | $ 3 | $ 1 | $ (80) |
| Operational EBITDA * | $ (17) | $ – | $ 1 | $ (3) | $ 13 | $ (1) | $ (7) |
* 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 2018 foreign exchange impact using average foreign exchange rates for the twelve months ended December 31, 2017, rather than the actual exchange rates in effect for the twelve months ended December 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.