Eastman Kodak Company · NYSE:KODK
Eastman Kodak — Q2 2023 Earnings Presentation
19 slides from Eastman Kodak's earnings presentation, Aug 8, 2023
Slide 1: Second Quarter 2023 Earnings Call
Second Quarter 2023 Earnings Call August 8, 2023
Slide 2: Cautionary Statement Regarding Forward-looking Statements
Cautionary Statement Regarding Forward-looking Statements Pursuant to Safe Harbor Provisions of The Private Securities Litigation Reform Act of 1995 Cautionary Statement Regarding Forward-Looking Statements This presentation includes “forward-looking statements” as that term is defined under the Pri
Slide 3: Cautionary Statement Regarding Forward-looking Statements (continued)
Cautionary Statement Regarding Forward-looking Statements Pursuant to Safe Harbor Provisions of The Private Securities Litigation Reform Act of 1995 Cautionary Statement Regarding Forward-Looking Statements (continued) geopolitical issues such as the war in Ukraine, and Kodak’s ability to effectivel
Slide 4: Agenda
Agenda Introduction Anthony Redding, Chief Compliance - Officer First line bullet point First line bullet point - Second line bullet point First line bullet point - CEO Third Perspective line Jim Continenza, Executive Chairman bullet point First line bullet point - Fourth line bullet point First
Slide 5: CEO Perspective
CEO Perspective • Prioritized investing in innovation, efficiency and driving smart revenue and are seeing the benefits in terms of increases in gross profit and cash generation despite ongoing external challenges which affect our operations and the markets we serve. • Progress made reflects our com
Slide 6: CEO Perspective
CEO Perspective • Second Quarter 2023 Results: • Revenues were $295 million, a decline of $26 million or 8 percent compared to the prior year. • Gross profit increased $12 million, or 24 percent compared to the prior year quarter. • Gross profit percentage of 21 percent compared to 16 percent in the
Slide 7: Second Quarter 2023 Results
Second Quarter 2023 Results (Decline) (Decline) Improvement Improvement ($ millions) Q2 2023 Q2 2022 $ % Consolidated Revenue $295 $321 ($26) -8% Add: Impact of Foreign Exchange 2 $0 Adjusted Consolidated Revenue $295 $321 ($26) -8% Gross Profit $63 $51 $12 24% 2 Add: Impact of Foreign Exchange $0 A
Slide 8: First Half 2023 Results
First Half 2023 Results (Decline) (Decline) Improvement Improvement ($ millions) YTD 2023 YTD 2022 $ % Consolidated Revenue $573 $611 ($38) -6% Add: Unfavorable Impact of Foreign Exchange 2 $10 Adjusted Consolidated Revenue $583 $611 ($28) -5% Gross Profit $113 $84 $29 35% 2 Add: Unfavorable Impact
Slide 9: First Half 2023 Cash Flow
First Half 2023 Cash Flow Six Months Ended June 30, ($ Millions) 2023 2022 $ Change Primary Drivers of Cash: Cash Flow from Operations: Net income $ 68 $ 17 $ 51 Depreciation and amortization 16 14 2 Pension income $18M Cash (72) (49) (23) $42M Year-Over- Change in fair value of embedded conversion
Slide 10: Non-GAAP Measures
Non-GAAP Measures In this earnings presentation, reference is made to the following non-GAAP financial measures: • Revenues and Operational EBITDA on a constant currency basis; • Gross profit excluding foreign exchange; • Net Income excluding changes in fair value of embedded derivative liability fe
Slide 11: Non-GAAP Measures
Non-GAAP Measures The following tables reconcile the most directly comparable GAAP measure of Net Income to Adjusted Net Income for the three and six months ended June 30, 2023 and 2022, respectively: (in millions) Q2 2023 Q2 2022 $ Change % Improvement Net Income $ 35 $ 20 $ 15 75% Changes in Fair
Slide 12: Non-GAAP Measures
Non-GAAP Measures The following table reconciles the most directly comparable GAAP measure of Net Income to Operational EBITDA and Adjusted Operational EBITDA for the three months ended June 30, 2023 and 2022, respectively: (in millions) Q2 2023 Q2 2022 $ Change % Improvement Net Income $ 35 $ 20 $
Slide 13: Non-GAAP Measures
Non-GAAP Measures The following table reconciles the most directly comparable GAAP measure of Net Income to Operational EBITDA, Operational EBITDA on a constant currency basis and Adjusted Operational EBITDA for the six months ended June 30, 2023 and 2022, respectively: (in millions) YTD 2023 YTD 20
Slide 14: Non-GAAP Measures
Non-GAAP Measures The following table reconciles the most directly comparable GAAP measure of Net increase (decrease) in cash, cash equivalents and restricted cash to Adjusted net increase (decrease) in cash and cash equivalents for the six months ended June 30, 2023 and 2022, respectively Six Month
Slide 15: Non-GAAP Measures: Footnote Explanations
Non-GAAP Measures Footnote Explanations: (1) Consulting and other costs are primarily professional services and internal costs associated with certain corporate strategic initiatives, investigations and litigation. Consulting and other costs includes $1 million and $11 million of income in the three
Slide 16: Appendix
APPENDIX 16
Slide 17: Second Quarter 2023 Financial Summary by Reportable Segment
Second Quarter 2023 Financial Summary by Reportable Segment ($ millions) Advanced Q2 2023 Actuals Print Materials & Brand Total Chemicals Revenue $ 215 $ 72 $ 4 $ 291 Operational EBITDA (1) $ 8 $ 11 $ 3 $ 22 Advanced Q2 2022 Actuals Print Materials & Brand Total Chemicals Revenue $ 252 $ 61 $ 4 $ 31
Slide 18: First Half 2023 Financial Summary by Reportable Segment
First Half 2023 Financial Summary by Reportable Segment ($ millions) Advanced YTD 2023 Actuals Print Materials & Brand Total Chemicals Revenue $ 424 $ 133 $ 8 $ 565 Operational EBITDA (1) $ 14 $ 11 $ 6 $ 31 Advanced YTD 2022 Actuals Print Materials & Brand Total Chemicals Revenue $ 480 $ 115 $ 8 $ 6
Slide 19: Thank You
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Eastman Kodak Company — Q2 2023 Earnings Presentation on 6ix