Kodak reports third-quarter loss of $5 million, but film sales are up

GaryPageau

Eastman Kodak Co. reported third-quarter financial results of a $5 million net loss on revenues of $315 million and growth in key print and film product areas. The quarter ended Sept. 30, 2019. In the prior year, the company had $19 million in next earnings on sales of $329 million.

The company said revenues from the film business grew 21 percent year-over-year for the year to date, but provided no specifics detail. Kodak ended the quarter with a cash balance of $225 million.

“The company will continue to concentrate on delivering industry-leading solutions to customers in our core print and film businesses,” said Jim Continenza, Kodak’s Executive Chairman. “Looking ahead to 2020, we will focus on generating cash by growing profitable revenue, making smart investments and eliminating unnecessary spending.”

For the quarter ended September 30, 2019, revenues decreased by approximately $14 million compared with the same period in 2018. Kodak ended the quarter with a cash balance of $225 million, an increase of $27 million from the June 30, 2019 cash balance of $198 million when adjusted for the assets associated with Kodak’s offset printing plates facility in Xiamen, China being reported as assets held for sale. The current quarter revenues and Operational EBITDA include $13 million of license revenue related to the HuaGuang Graphics Co. Ltd transaction, the company said.

“We have strengthened our financial position by eliminating significant interest costs with the transactions completed earlier in the year,” said David Bullwinkle, Kodak’s CFO. “For the year to date we have delivered growth in SONORA Process Free Plates, PROSPER Inkjet annuities, and our film business.”

See the full financial statement here.

Revenue and Operational EBITDA Q3 2019 vs. Q3 2018

($ millions)

Q3 2019 Actuals

 PSD EISD KSD BFID AM3D EBPD Total EK
Revenue

 $       213

 $         29

 $         14

 $         56

 $            1

 $            2

 $       315
Operational EBITDA *

 $         20

 $         (3)

 $            2

 $         (1)

 $         (4)

 $            –

 $         14
               

Q3 2018 Actuals

 PSD EISD KSD BFID AM3D EBPD Total EK
Revenue

 $       217

 $         39

 $         15

 $         54

 $            1

 $            3

 $       329
Operational EBITDA *

 $         11

 $            2

 $            1

 $         (3)

 $         (2)

 $            –

 $            9
               

Q3 2019 vs. Q3 2018 Actuals
B/(W)

 PSD EISD KSD BFID AM3D EBPD Total EK
Revenue

 $         (4)

 $       (10)

 $         (1)

 $            2

 $            –

 $         (1)

 $       (14)
Operational EBITDA *

 $            9

 $         (5)

 $            1

 $            2

 $         (2)

 $            –

 $            5
               

Q3 2019 Actuals on constant currency **  vs. Q3 2018 Actuals
B/(W)

 PSD EISD KSD BFID AM3D EBPD Total EK
Revenue

 $         (1)

 $       (10)

 $            –

 $            3

 $            –

 $         (1)

 $         (9)
Operational EBITDA *

 $            8

 $         (5)

 $            1

 $            2

 $         (2)

 $            –

 $            4
               

* 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 2019 foreign exchange impact using average foreign exchange rates for the three months ended September 30, 2018, rather than the actual exchange rates in effect for the three months ended September 30, 2019.