Kodak reports Q1 2024 financial results

Eastman Kodak Company (NYSE: KODK) today reported financial results for the first quarter 2024.

First-quarter 2024 highlights include:

• Consolidated revenues of $249 million, compared with $278 million for Q1 2023, a decrease of $29 million or 10 percent
• Gross profit of $49 million, compared with $50 million for Q1 2023, a decrease of $1 million or 2 percent
• Gross profit percentage of 20 percent, compared with 18 percent for Q1 2023, an increase of 2 percentage points
• GAAP net income of $32 million, compared with net income of $33 million for Q1 2023, a decrease of $1 million or 3 percent
• Operational EBITDA of $4 million, compared with $9 million for Q1 2023, a decrease of $5 million or 56 percent
• A quarter-end cash balance of $262 million, compared with $255 million on December 31, 2023, an increase of $7 million; cash flow from operations improved by $3 million from the prior period

"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 unique 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."

For the quarter ended March 31, 2024, revenues were $249 million, a decrease of $29 million or 10 percent compared to the same period in 2023. Foreign currency had no impact on revenues in the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

GAAP net income was $32 million for the quarter, compared to $33 million in 2023, a decrease of $1 million or 3 percent. Operational EBITDA for the quarter ended March 31, 2024 was $4 million, compared to $9 million in Q1 2023, a decrease of $5 million or 56 percent. The decrease was primarily driven by lower volumes and higher costs associated with investments in information technology systems and organizational structure to drive further operational efficiencies, partially offset by lower manufacturing costs due to customer focused initiatives, supply chain and workforce optimization, productivity improvements and other cost savings activities.

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."