Kodak reports second-quarter revenue decline
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Eastman Kodak Co. reported second-quarter 2024 consolidated revenues of $267 million, compared with $295 million for Q2 2023, a decrease of $28 million or 9 percent. The company also reported gross profit of $58 million, compared with $63 million for Q2 2023, a decrease of $5 million or 8 percent and GAAP net income of $26 million, compared with net income of $35 million for Q2 2023, a decrease of $9 million or 26 percent.
“Our results for the second quarter were in line with our long-term strategic plan: we delivered a year-over-year increase in gross profit percentage for the seventh consecutive quarter despite an anticipated decline in revenue. We are getting leaner, introducing new products and partnering with the right customers,” said Jim Continenza, Kodak’s Executive Chairman and CEO. “Building for the future, we continue to invest in our Advanced Materials & Chemicals group and are seeing results in terms of growing revenue in key product areas. The cGMP facility for manufacturing diagnostic test reagents under construction at Eastman Business Park is scheduled to begin production in 2025. In our commercial print business, our participation in the drupa tradeshow earlier this year demonstrated our ability to provide leading-edge solutions for both offset and digital print. We are starting to gain momentum with our groundbreaking continuous inkjet press portfolio, announcing commitments for several KODAK PROSPER ULTRA 520 Presses from the show. Looking forward, we will continue to execute the long-term plan which has created a foundation for growth: increasing efficiency, investing in innovation and infrastructure and focusing on generating smart revenue.”
“Kodak continued to see an improvement in gross profit margins year-over-year for the quarter, reaching 22 percent in Q2,” said David Bullwinkle, Kodak’s CFO. “The decline in revenue was driven by our focus on generating smart revenue to strengthen the profitability of our businesses. Our quarter-end cash balance of $251 million represented a decrease of $4 million from December 31, 2023, reflecting continued investment in capital additions as well as the drupa tradeshow and back-office optimization, which we expect to pay off as we continue to execute on our long-term strategy. For the second half of the year, we plan to continue to focus on the fundamentals which have contributed to our turnaround: streamlining operations, investing in new products and businesses and helping our customers stay productive and profitable.”
Revenue and Operational EBITDA by Reportable Segment Q2 2024 vs. Q2 2023
| ($ millions) | ||||||||||||||||
| Q2 2024 Actuals | Advanced Materials & Chemicals | Brand | Total | |||||||||||||
| Revenue | $ | 186 | $ | 73 | $ | 4 | $ | 263 | ||||||||
| Operational EBITDA * | $ | – | $ | 8 | $ | 4 | $ | 12 | ||||||||
| Q2 2023 Actuals | Advanced Materials & Chemicals | Brand | Total | |||||||||||||
| Revenue | $ | 215 | $ | 72 | $ | 4 | $ | 291 | ||||||||
| Operational EBITDA * | $ | 8 | $ | 11 | $ | 3 | $ | 22 | ||||||||
| Q2 2024 vs. Q2 2023 Actuals B/(W) | Advanced Materials & Chemicals | Brand | Total | |||||||||||||
| Revenue | $ | (29 | ) | $ | 1 | $ | – | $ | (28 | ) | ||||||
| Operational EBITDA * | $ | (8 | ) | $ | (3 | ) | $ | 1 | $ | (10 | ) | |||||
| Q2 2024 Actuals on constant currency ** vs. Q2 2023 Actuals B/(W) | Advanced Materials & Chemicals | Brand | Total | |||||||||||||
| Revenue | $ | (25 | ) | $ | 1 | $ | – | $ | (24 | ) | ||||||
| Operational EBITDA * | $ | (8 | ) | $ | (3 | ) | $ | 1 | $ | (10 | ) | |||||
* 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 June 30, 2023, rather than the actual average exchange rates in effect for the three months ended June 30, 2024.
Eastman Business Park segment is not a reportable segment and is excluded from the table above.