Eastman Kodak Company · NYSE:KODK
Eastman Kodak — Q1 2016 Earnings Presentation
29 slides from Eastman Kodak's earnings presentation, May 5, 2016
Slide 1: Q1 2016 Earnings Call
Q1 2016 Earnings Call May 5, 2016
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This presentation includes “forward–looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995. Forward–looking statements include statements concerning Kodak’s plans, objectives, goals, strategies,
Slide 3: Agenda
AGENDA Introduction David Bullwinkle, Director, Global Financial Planning & Analysis and Investor Relations CEO Perspective on Q1 2016 Jeff Clarke, Chief Executive Officer and FY 2016 Guidance 2016 First Quarter Results and John McMullen, Chief Financial Financial Review Officer Concluding R
Slide 4: CEO Perspective
Welcome Quarter Performance Division Overview 2016 Guidance CEO PERSPECTIVE 4
Slide 5: 2016 First Quarter Results
2016 First Quarter Results Total Company Q1 2016 Q1 2015 Q1 2016 Revenue $411 $362 Operational EBITDA 1 = $31 $29 Year over Year Change - B/(W) Revenue ($) ($49) Operational EBITDA ($) ($2) Revenue (%) -12% Operational EBITDA (%) -6% Comparable Basis (excluding FX impact) 2 Q1 2015 Q1 2016 Revenue $
Slide 6: Q1 2016 Improved Quality of Earnings
Q1 2016 Improved Quality of Earnings ($ millions) Q1 2015 Q1 2016 $ Change % Change Operational EBITDA $ 31 $ 29 $ (2) (1) Year over year impact of foreign exchange 3 3 Operational EBITDA on a constant currency basis 31 32 1 3% Consumer Inkjet Operational EBITDA before Corporate Costs 15 8 (7) Adjus
Slide 7: First Quarter 2016 Financial Summary by Division
First Quarter 2016 Financial Summary by Division ($ millions) Q1 2016 Actuals PSD EISD MPPD SSD CFD IPSD EBPD Total EK Revenue $ 231 $ 20 $ 29 $ 22 $ 56 $ - $ 4 $ 362 Operational EBITDA b/f corp costs 30 6 3 3 10 (4) - 48 Corporate SGA 12 1 2 1 3 - - 19 Operational EBITDA 18 5 1 2 7 (4) - 29 Q1 2015
Slide 8: Kodak PROSPER Momentum
Kodak PROSPER Momentum First quarter performance Annuity revenue improved year over year by 36% to $10 million for the first quarter. Installed base (1) grows by 3 units to 58 units. An additional 6 units under contract or in process of installation. Year over year component unit volume growth
Slide 9: 2016 Guidance
2016 Guidance 2016 Full Year ($ millions) Guidance Revenue $1,500 - $1,700 Operational EBITDA $135 - $150 Prior Operational EBITDA guidance was $130 to $150 million 9
Slide 10: Financial Overview
FINANCIAL OVERVIEW First Quarter Financial Results Cost Reduction Update 2016 First Quarter Cash Flow 10
Slide 11: Cost Reduction Update
Cost Reduction Update Year over Year Operating Expense Reductions Quarter Quarter First Quarter Ended Ended Year over 2016 Run Rate March 31, March 31, Year Annual (dollars in millions) 2015 2016 Change (%) Reduction Headcount 6,897 6,232 -10% Operating Expense: Total 70 63 -10% (25) Drivers of Chan
Slide 12: 2016 Q1 Cash Flow
2016 Q1 Cash Flow 2016 Q1 Cash Flow ($ millions) Quarter Ended December 31, 2015 $ 547 Primary drivers of cash: -Operational EBITDA 29 -Cash provided by Working Capital 6 -Non-Recurring Litigation Proceeds, net 7 - Interest and Debt Payments (16) - Cash Income Taxes (11) -Discontinued Operations (Pr
Slide 13: Q1 Year over Year Cash Improvement
Q1 Year over Year Cash Improvement Q1 2015 vs. Q1 2016 Cash Improvement ($ millions) Cash Used in Q1 2015 $ (103) Primary drivers of cash improvement - B/(W): -Cash generated from continuing and discontinued operations (1)(2) 26 -Reorganization and Legacy Related Payments 23 -Restructuring Related P
Slide 14: Recast of 2015 Operational EBITDA
Recast of 2015 Operational EBITDA Full Year 2015 Operational EBITDA, as reported in the 2015 10K filed March 15, 2016 $122 Prosper business results 26 Overhead previously allocated to Prosper and Silver M3D Printing program 22 Full Year 2015 Operational EBITDA, restated (1) $170 (1) – Full Year 2015
Slide 15: Restated 2015 vs. 2016 Guidance
Restated 2015 vs. 2016 Guidance ($ millions) Full Year 2015 Operational EBITDA $170 Consumer Inkjet Reduction (30) Impact of Foreign Exchange 2016 vs. 2015 (6) Baseline 2015 Operational EBITDA $134 2016 Projected Operational EBITDA $135 - $150 Year over Year Growth 1% to 12% NOTE – 2015 Full Year ha
Slide 16: Concluding Remarks
CONCLUDING REMARKS 16
Slide 17: Q&A
Q&A 17
Slide 18: Appendix
APPENDIX 18
Slide 19: Non-GAAP Measures
Non-GAAP Measures In this first quarter 2016 earnings presentation, reference is made to the following non-GAAP financial measures: • Operational EBITDA; • Operational EBITDA and Revenues on a constant currency basis; • Operational EBITDA on a constant currency basis excluding Consumer Inkjet Operat
Slide 20: Non-GAAP Measures
Non-GAAP Measures The following table reconciles Operational EBITDA on a constant currency basis including Prosper EBITDA and overhead costs previously allocated to Prosper but excluding Consumer Inkjet Operational EBITDA before Corporate Costs, Operational EBITDA on a constant currency basis exclud
Slide 21: Non-GAAP Measures
Non-GAAP Measures The following table reconciles Operational EBITDA to the most directly comparable GAAP measure of Net Loss Attributable to Eastman Kodak Company for the twelve months ended December 31, 2015: (in millions ) FY 2015 Operational EBITDA $ 170 All other (3) 5 Corporate components of pe
Slide 22: Non-GAAP Measures
Non-GAAP Measures The following table reconciles Consumer Inkjet Operational EBITDA before Corporate Costs to the most directly comparable GAAP measure of Consumer and Film Division Operational EBITDA (Segment Measure) for the three months ended March 31, 2016 and 2015, respectively: (in millions) Q
Slide 23: Non-GAAP Measures
Non-GAAP Measures The following table reconciles Prosper EBITDA to the most directly comparable GAAP measure of Loss from discontinued operations, net of income taxes for the three months ended March 31, 2016 and 2015, respectively: (in millions) Q1 2016 Q1 2015 $ Change % Change Prosper EBITDA $ (6
Slide 24: Non-GAAP Measures
Non-GAAP Measures The following table reconciles the change in FLEXCEL NX revenues on a constant currency basis excluding Latin America and the change in FLEXCEL NX revenues on a constant currency basis to the most directly comparable GAAP measure of Total Revenues for the three months ended March 3
Slide 25: Non-GAAP Measures
Non-GAAP Measures The following table reconciles the change in Unified Workflow Solutions revenues on a constant currency basis to the most directly comparable GAAP measure of Total Revenues for the three months ended March 31, 2016 and 2015, respectively: (in millions) Q1 2016 Q1 2015 % Change Unif
Slide 26: Non-GAAP Measures
Non-GAAP Measures The following table reconciles the reduction in Operational SG&A and Operational R&D expenses to the most directly comparable GAAP measure of SG&A and R&D, respectively, for the three months ended March 31, 2016 and 2015, respectively: (in millions) Q1 2016 Q1 2015 $ Change % Chang
Slide 27: Non-GAAP Measures
Non-GAAP Measures The following table reconciles the first quarter 2016 annual run rate reduction in Operational SG&A and Operational R&D expenses to the most directly comparable GAAP measure of SG&A and R&D, respectively, for the three months ended March 31, 2016 and 2015, respectively: Q1 2016 (in
Slide 28: Non-GAAP Measures
Non-GAAP Measures Footnote Explanations: (1) Primarily consists of costs for shared resources allocated to the Prosper Enterprise Inkjet business discontinued operation in the prior year period which are now included in the results of continuing operations and an estimate of costs for shared resourc
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