Kodak reports level third-quarter results, but will be investing more in film production
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Eastman Kodak Co. reported third-quarter financial results, including consolidated revenues of $261 million, compared with $269 million for Q3 2023, a decrease of $8 million or 3 percent. Kodak reported gross profit of $45 million, compared with $50 million for Q3 2023, a decrease of $5 million or 10 percent. GAAP net income of $18 million, compared with net income of $2 million for Q3 2023, an increase of $16 million or 800 percent. Operational EBITDA for the quarter ended September 30, 2024, was $1 million, compared to $12 million in Q3 2023, a decrease of $11 million. The decrease was primarily driven by higher manufacturing costs driven by an increase in aluminum costs, changes in employee benefit reserves, inventory reserve adjustment, as well as an increase in costs associated with certain litigation matters, the company said.
“In the third quarter, Kodak continued to focus on the fundamentals of our long-term strategic plan: increasing operating efficiency, investing in innovation and driving smart revenue,” said Jim Continenza, Kodak’s Executive Chairman and CEO. “Our Advanced Materials & Chemicals group continues to emerge as a key part of our future and we continue to invest in AM&C growth initiatives, including the cGMP facility for manufacturing pharmaceutical ingredients currently nearing completion at Eastman Business Park. Our legacy AM&C film business is growing rapidly, and we are investing CAPEX to increase capacity to meet demand. In our commercial print business, we recently received an affirmative determination from the U.S. International Trade Commission in our tariff cases concerning imports of aluminum printing plates from Japan and China. This is an important win for the U.S. printing industry and Kodak because it establishes a level playing field in the U.S. plates business which will allow us to continue providing our customers with reliable supplies of high-quality plates. We continue to gain momentum with our groundbreaking continuous inkjet press portfolio. Looking forward, we will continue to invest in streamlining our operations and developing the leading-edge products our customers expect from Kodak.”
Kodak ended the third quarter with a cash balance of $214 million, a decrease of $41 million from Dec. 31, 2023. The decrease was driven by capital expenditures primarily to fund growth initiatives, investments in technology systems and organizational structure and lower profitability from operations, partially offset by improvements in working capital primarily due to cash proceeds of $40 million from brand licensing in the first quarter of 2024.
“Kodak continued to execute on its long-term strategy in the third quarter,” said David Bullwinkle, Kodak’s CFO. “The decline in revenue, which slowed compared to recent quarters, reflects our ongoing focus on generating smart revenue to drive stronger profitability. Kodak ended the quarter with a cash balance of $214 million, compared with $255 million on December 31, 2023, which is in line with our expectations. The decline reflects our continued capex investments in supporting AM&C growth initiatives, along with building working capital in AM&C to allow us to keep customers supplied as we make improvements in our manufacturing facilities. Looking ahead, we plan to invest in increasing operational efficiency and expanding manufacturing capacity to continue delivering reliable value to our customers.”
Revenue and Operational EBITDA by Reportable Segment Q3 2024 vs. Q3 2023
| ($ millions) | |||||||||||||
| Q3 2024 Actuals | Advanced Materials & Chemicals | Brand | Total | ||||||||||
| Revenue | $ | 182 | $ | 71 | $ | 5 | $ | 258 | |||||
| Operational EBITDA * | $ | (9 | ) | $ | 6 | $ | 4 | $ | 1 | ||||
| Q3 2023 Actuals | Advanced Materials & Chemicals | Brand | Total | ||||||||||
| Revenue | $ | 196 | $ | 64 | $ | 4 | $ | 264 | |||||
| Operational EBITDA * | $ | 4 | $ | 4 | $ | 4 | $ | 12 | |||||
| Q3 2024 vs. Q3 2023 Actuals B/(W) |
Advanced Materials & Chemicals | Brand | Total | ||||||||||
| Revenue | $ | (14 | ) | $ | 7 | $ | 1 | $ | (6 | ) | |||
| Operational EBITDA * | $ | (13 | ) | $ | 2 | $ | – | $ | (11 | ) | |||
| Q3 2024 Actuals on constant currency ** vs. Q3 2023 Actuals B/(W) |
Advanced Materials & Chemicals | Brand | Total | ||||||||||
| Revenue | $ | (15 | ) | $ | 7 | $ | 1 | $ | (7 | ) | |||
| Operational EBITDA * | $ | (13 | ) | $ | 2 | $ | – | $ | (11 | ) | |||
* 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 foreign exchange impact using average foreign exchange rates for the three months ended September 30, 2023, rather than the actual average exchange rates in effect for the three months ended September 30, 2024.
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 X @Kodak and LinkedIn.