Kodak reports level earnings on 10 percent sales decline in first quarter

Eastman Kodak Co., reported first-quarter consolidated revenues of $249 million, compared with $278 million for Q1 2023, a decrease of $29 million or 10 percent. The company reported gross profit of $49 million, compared with $50 million for Q1 2023, a decrease of $1 million or 2 percent, and  GAAP net income of $32 million, compared with net income of $33 million for Q1 2023, a decrease of $1 million or 3 percent.

“For the first quarter, Kodak continued to build on its strong foundation, generating cash and delivering a gross profit percentage of 20 percent, which reflects our ongoing commitment to improving operational efficiency,” said Jim Continenza, Kodak’s Executive Chairman and CEO. “Sticking to our long-term strategic plan, we continue to invest in innovation in our core businesses of print and advanced materials and chemicals. In print, we will showcase exciting new products for both offset and digital print this month at the drupa tradeshow in Germany. No one can match our ability to help customers successfully integrate offset and digital capabilities as the print industry evolves. In AM&C, we are committed to our film business and are expanding our manufacturing capacity to meet growing demand for both still and motion picture film. At the same time, we are setting the stage for Kodak as a growth company by investing in a number of AM&C initiatives that leverage our unmatched knowledge of chemicals, layering and coating and vast manufacturing infrastructure. Looking ahead, we plan to continue our momentum by meeting the needs of our customers today and investing in growth for the next generation.”

Kodak ended the quarter with a cash balance of $262 million, an increase of $7 million from December 31, 2023. The increase was driven by improvements in working capital primarily due to cash proceeds of $40 million from brand licensing.

“Kodak continued to deliver strong cash performance in the first quarter, increasing our cash balance from $255 million to $262 million,” said David Bullwinkle, Kodak’s CFO. “We also improved our gross profit percentage year over year for the quarter, which reflects our ongoing focus on streamlining our operations and generating smart revenue. Operational EBITDA for the quarter was impacted by significant investments in automation and simplification of back-office functions. For the balance of the year, we plan to concentrate on the fundamentals from our strategic plan: investing for growth, increasing operational efficiency and helping our customers succeed.”

Revenue and Operational EBITDA by Reportable Segment Q1 2024 vs. Q1 2023

Foreign currency had no impact on revenues or Operational EBITDA for the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

Eastman Business Park segment is not a reportable segment and is excluded from the table above.

About Kodak
Kodak (NYSE: KODK) is a leading global manufacturer focused on commercial print and advanced materials & chemicals. With 79,000 worldwide patents earned over 130 years of R&D, we believe in the power of technology and science to enhance what the world sees and creates. Our innovative, award-winning products, combined with our customer-first approach, make us the partner of choice for commercial printers worldwide. Kodak is committed to environmental stewardship, including industry leadership in developing sustainable solutions for print. For additional information on Kodak, visit us at kodak.com, or follow us on Twitter @Kodak and LinkedIn.