| --- | --- | --- | --- | |-----------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | Third Quarter 2023 Earnings Call | | | | | November 8, 2023 | | | | Important factors that could cause actual events or results to differ materially from the forward-looking statements include, among others, the risks and uncertainties described in more detail in Kodak's Annual Report on Form 10-K for the year ended December 31, 2022 under the headings "Business," "Risk ...

Revenue Performance - Consolidated revenues for the three and nine months ended September 30, 2023 were $269 million and $842 million, respectively, representing a decrease of $20 million (7%) and $58 million (6%) compared to the same periods in 2022[185] - Print revenues declined by $28 million (13%) and $84 million (12%) for the three and nine months ended September 30, 2023, accounting for 73% and 74% of total revenues, respectively[186] - Advanced Materials and Chemicals revenue increased by $6 million (10%) and $24 million (14%) for the three and nine months ended September 30, 2023 compared to the prior year periods[186] - Advanced Materials and Chemicals segment revenues increased by $6 million to $64 million in Q3 2023, with Operational EBITDA improving by $1 million to $4 million[228] - Year-to-date Operational EBITDA for Advanced Materials and Chemicals improved by $14 million, driven by price and product mix improvements and higher margins in Industrial Film and Chemicals[232] Acquisitions and Investments - Kodak acquired 100% of Graphic Systems Services, Inc. on May 26, 2023, a provider of web inkjet press transport systems and print-related components, though the acquisition was immaterial to financial results[162] - Kodak acquired 100% of Graphic Systems Services, Inc. (GSS) on May 16, 2023, which represented less than 1% of consolidated revenues and total assets as of September 30, 2023[275] Financial Instruments and Risk Management - The notional amount of Kodak's foreign currency forward contracts open at September 30, 2023 was approximately $270 million, primarily denominated in euros, Chinese renminbi, and Japanese yen[164] - Kodak's exposure to foreign currency exchange rates and interest rates is managed through derivative financial instruments, with no derivatives designated as hedging instruments in 2023[163][165] - The fair value of embedded conversion features derivatives for Convertible Notes was $5 million as of July 21, 2023, calculated using a binomial lattice model[173] Cost Management and Restructuring - Kodak decreased workers' compensation reserves by approximately $5 million and $13 million in the three and nine months ended September 30, 2022, respectively, impacting gross profit and expenses[158] - Kodak implemented pricing actions to mitigate increased labor, material, and distribution costs, including surcharges on plate purchases starting in Q2 2021[190] - Restructuring actions in the first nine months of 2023 are expected to generate $7 million in annual cash savings, with $3 million in SG&A and $4 million in cost of revenues reductions[236] - Kodak recorded $9 million in restructuring charges for the nine months ended September 30, 2023, including $8 million in severance charges and $2 million in inventory write-downs[234] Supply Chain and Operational Challenges - Supply chain disruptions and material shortages led Kodak to increase safety stock, extend lead times, and certify additional sources, enabling the company to largely meet demand[189] - Kodak's cash flows were negatively impacted by supply chain disruptions, labor shortages, and increased costs, but price increases and cost reduction actions positively impacted operations in the first nine months of 2023[243] Insurance and Reimbursements - Kodak received $17 million in insurance reimbursement proceeds in the first nine months of 2023, with $5 million recorded in Other current assets as of December 31, 2022[158] Financing Activities - Net cash from financing activities increased by $42 million for the nine months ended September 30, 2023, driven by $90 million in net proceeds from financing transactions in Q3 2023[263] Inter-company Loans - Outstanding inter-company loans to the U.S. increased to $426 million as of September 30, 2023, with $139 million from Kodak's international finance center[241] Strategic Objectives and Risks - The company's ability to achieve strategic objectives, cash forecasts, and projected growth is contingent on factors such as global economic conditions, supply chain disruptions, and compliance with credit facility covenants[180]

Cautionary Statement Regarding Forward-looking Statements Pursuant to Safe Harbor Provisions of The Private Securities Litigation Reform Act of 1995 Forward-looking statements include statements concerning Kodak's plans, objectives, goals, strategies, future events, future revenue or performance, capital expenditures, liquidity, investments, financing needs and business trends and other information that is not historical information. When used in this presentation, the words "estimates," "expects," "anticip ...

Eastman Kodak Company (NYSE:KODK) Q2 2023 Earnings Conference Call August 8, 2023 5:00 PM ET Company Participants Anthony Redding - Chief Compliance Officer James Continenza - Executive Chairman and Chief Executive Officer David Bullwinkle - Chief Financial Officer, President, Eastman Business Park and Senior Vice President, Eastman Kodak Company Operator Good day and thank you for standing by. Welcome to the Eastman Kodak Second Quarter 2023 Earnings Conference Call. All participants are in a listen-only m ...

Part I. [Financial Information](index=3&type=section&id=Part%20I.%E2%80%94Financial%20Information) Presents the company's consolidated financial statements and management's discussion and analysis of financial condition [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited consolidated financial statements for Eastman Kodak Company, including operations, comprehensive income, financial position, cash flows, and equity [Consolidated Statement of Operations (Unaudited)](index=3&type=section&id=Consolidated%20Statement%20of%20Operations%20(Unaudited)) Net earnings increased to $35 million in Q2 2023 and $68 million year-to-date, driven by higher gross profit and pension income despite revenue decline Consolidated Statement of Operations Highlights (in millions, except per share data) | Metric | Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $295 | $321 | $573 | $611 | | **Gross Profit** | $63 | $51 | $113 | $84 | | **Earnings from Operations before Income Taxes** | $37 | $19 | $78 | $18 | | **Net Earnings** | $35 | $20 | $68 | $17 | | **Diluted EPS** | $0.32 | $0.19 | $0.63 | $0.12 | [Consolidated Statement of Comprehensive (Loss) Income (Unaudited)](index=4&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20(Loss)%20Income%20(Unaudited)) The company recorded a comprehensive loss of $99 million in Q2 2023, primarily due to a significant negative adjustment for pension and other postretirement benefit plan obligations Comprehensive (Loss) Income (in millions) | Metric | Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net Earnings** | $35 | $20 | $68 | $17 | | **Other Comprehensive (Loss) Income** | $(134) | $100 | $(141) | $105 | | **Comprehensive (Loss) Income** | $(99) | $120 | $(73) | $122 | [Consolidated Statement of Financial Position (Unaudited)](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position%20(Unaudited)) Total assets slightly decreased to $2.221 billion as of June 30, 2023, while total shareholders' equity declined due to changes in accumulated other comprehensive income Key Balance Sheet Items (in millions) | Metric | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $223 | $217 | | **Total current assets** | $672 | $681 | | **Total Assets** | $2,221 | $2,285 | | **Total current liabilities** | $292 | $293 | | **Total Liabilities** | $1,047 | $1,041 | | **Total shareholders' equity** | $967 | $1,041 | [Consolidated Statement of Cash Flows (Unaudited)](index=6&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows%20(Unaudited)) Net cash provided by operating activities significantly improved to $21 million for the first six months of 2023, leading to a $6 million net increase in cash Six Months Ended June 30 Cash Flow Summary (in millions) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $21 | $(103) | | **Net cash used in investing activities** | $(11) | $(9) | | **Net cash (used in) provided by financing activities** | $(2) | $47 | | **Net increase (decrease) in cash** | $6 | $(70) | [Notes to Financial Statements (Unaudited)](index=9&type=section&id=Notes%20to%20Financial%20Statements%20(Unaudited)) Provides detailed explanations of accounting policies and financial data, covering debt, preferred stock, revenue disaggregation, segment information, and financial instruments - In February 2023, Kodak combined its Traditional Printing and Digital Printing segments into a single 'Print' segment. Other segments (Advanced Materials and Chemicals, Brand) were unchanged[20](index=20&type=chunk)[144](index=144&type=chunk) - On July 21, 2023 (subsequent to the reporting period), the company completed a major refinancing, borrowing **$450 million** in new Refinancing Term Loans to repay existing debt, terminate its ABL facility, and provide additional working capital[31](index=31&type=chunk)[237](index=237&type=chunk) - The company is involved in various legal proceedings, including derivative lawsuits related to the 2020 DFC loan announcement and tax litigation in Brazil[86](index=86&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, highlighting a 6% year-to-date revenue decline, improved gross profit, and ongoing navigation of a volatile global economic environment Financial Performance Summary (Six Months Ended June 30) | Metric (in millions) | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | **Revenues** | $573 | $611 | $(38) | | **Gross Profit** | $113 | $84 | $29 | | **Gross Profit %** | 20% | 14% | +6 p.p. | | **Net Earnings** | $68 | $17 | $51 | - The company's strategy focuses on core areas of print and advanced materials, growing revenue in the print division, promoting film use, and driving cost reductions[190](index=190&type=chunk) - Kodak is experiencing supply chain disruptions, material and labor shortages, and increased costs. It has implemented pricing actions and surcharges to mitigate these impacts, but notes a resulting slowdown in customer demand for plates[180](index=180&type=chunk)[182](index=182&type=chunk)[184](index=184&type=chunk) - New growth initiatives include investments in EV battery material manufacturing, light-blocking fabric technology, transparent antennas, and reagent manufacturing[192](index=192&type=chunk) [Results of Operations by Segment](index=42&type=section&id=Results%20of%20Operations%20by%20Segment) The Print segment's revenue declined due to lower volumes, while Advanced Materials and Chemicals saw revenue growth, both segments showing improved Operational EBITDA Segment Performance - Six Months Ended June 30, 2023 vs 2022 (in millions) | Segment | Revenue 2023 | Revenue 2022 | Operational EBITDA 2023 | Operational EBITDA 2022 | | :--- | :--- | :--- | :--- | :--- | | **Print** | $424 | $480 | $14 | $(1) | | **Advanced Materials and Chemicals** | $133 | $115 | $11 | $(2) | | **Brand** | $8 | $8 | $6 | $7 | - Print segment revenue decline was driven by lower volumes in Prepress consumables (**$70 million**), partially offset by improved pricing (**$29 million**)[216](index=216&type=chunk) - Advanced Materials and Chemicals revenue growth was primarily from pricing improvements in Industrial Film and Chemicals (**$19 million**) and Motion Picture (**$2 million**)[221](index=221&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) Kodak ended Q2 2023 with $223 million in cash and completed a major post-quarter refinancing, securing a new $450 million term loan to repay existing debt and provide working capital - On July 21, 2023, the company completed a major refinancing, securing a new **$450 million** term loan. The new loan bears interest at **7.5%** cash and **5.0%** PIK/cash option, maturing in August 2028[236](index=236&type=chunk)[237](index=237&type=chunk)[241](index=241&type=chunk) - The refinancing proceeds were used to repay the existing term loan (**$318M**), the Convertible Notes (**$28M**), terminate the ABL facility, and add approximately **$29M** to cash for general corporate purposes[237](index=237&type=chunk)[238](index=238&type=chunk)[239](index=239&type=chunk) Cash and Liquidity (in millions) | Metric | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $223 | $217 | | **Restricted cash** | $69 | $69 | | **Total Cash, cash equivalents and restricted cash** | $292 | $286 | [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states its exposure to market risks, primarily from fluctuations in foreign currency exchange rates and interest rates, due to its global operations - Kodak is exposed to market risks from foreign currency exchange rates and interest rates due to its global business activities[260](index=260&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of the end of the reporting period[261](index=261&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[264](index=264&type=chunk) Part II. [Other Information](index=52&type=section&id=Part%20II.%20%E2%80%94Other%20Information) Provides additional disclosures on legal proceedings, risk factors, equity sales, and filed exhibits [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 7 of the financial statements for information regarding the company's ongoing legal proceedings - For information on legal proceedings, the report directs readers to Note 7, "Commitments and Contingencies" in the financial statements[265](index=265&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the detailed discussion of risk factors in the company's Annual Report on Form 10-K for the year ended December 31, 2022 - For a detailed discussion of risk factors, the report directs readers to Item 1A of the 2022 Form 10-K[266](index=266&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the quarter, only purchasing shares to satisfy tax withholding obligations for employee restricted stock units - There were no sales of unregistered securities during the quarter ended June 30, 2023[267](index=267&type=chunk) - The company purchased **2,068 shares** at an average price of **$3.30 per share** to satisfy tax withholding obligations for employees. Kodak does not have a publicly announced repurchase plan[268](index=268&type=chunk)[269](index=269&type=chunk) [Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with the Form 10-Q, including amendments to credit agreements, CEO/CFO certifications, and XBRL data files - Key exhibits filed include the First Amendment to the Credit Agreement and Amendment No. 2 to the Letter of Credit Facility Agreement, both dated June 30, 2023[272](index=272&type=chunk) - Certifications by CEO James V. Continenza and CFO David E. Bullwinkle pursuant to Sarbanes-Oxley Sections 302 and 906 are included as exhibits[274](index=274&type=chunk)

Eastman Kodak Company (NYSE:KODK) Q4 2022 Earnings Conference Call March 16, 2023 5:00 PM ET Company Participants Paul Dils - Chief Tax Officer and Director, IR Jim Continenza - Chairman and CEO David Bullwinkle - CFO Conference Call Participants Operator Thank you for standing by and welcome to the Eastman Kodak's Q4 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. As a reminder, today's call is being recorded. I would now like to turn the call over to your host Mr. ...

☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: March 31, 2023 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q 1-00087 EASTMAN KODAK COMPANY (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpo ...

Part I [Business](index=4&type=section&id=Item%201.%20Business) Eastman Kodak Company is a global manufacturer specializing in commercial print, advanced materials, and chemicals, structured into four key segments - Kodak is a global manufacturer focused on commercial print and advanced materials and chemicals, operating through four reportable segments[18](index=18&type=chunk)[20](index=20&type=chunk) Revenue Contribution by Segment (2020-2022) | Segment | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Traditional Printing | 59% | 57% | 58% | | Digital Printing | 19% | 22% | 23% | | Industrial Film and Chemicals | 15% | 14% | 13% | - As of January 1, 2023, Kodak employed approximately **4,200** employees across **35** countries[49](index=49&type=chunk) - The company's business experiences seasonality, with printing equipment and plate unit sales typically higher in the fourth quarter[41](index=41&type=chunk) [Traditional Printing](index=4&type=section&id=Traditional%20Printing) The largest segment, Traditional Printing, focuses on Prepress Solutions, including digital offset plates and CTP imaging, generating recurring revenue - The Traditional Printing segment's core business is Prepress Solutions, including digital offset plates and CTP imaging solutions, generating recurring revenue from plate sales[21](index=21&type=chunk)[23](index=23&type=chunk) - A key product, KODAK SONORA Process Free Plates, offers environmental and efficiency benefits by eliminating chemical processing steps[25](index=25&type=chunk) - This segment faces challenges from higher raw material costs, digital substitution, and competitive pricing pressures[22](index=22&type=chunk) [Digital Printing](index=5&type=section&id=Digital%20Printing) The Digital Printing segment offers inkjet systems and workflow software, with a focus on recurring revenue from consumables, despite ceasing some printer manufacturing - The segment offers PROSPER inkjet presses, PRINERGY workflow software, and Electrophotographic Printing Solutions (NEXFINITY, ASCEND)[28](index=28&type=chunk)[29](index=29&type=chunk)[35](index=35&type=chunk) - Kodak ceased manufacturing NEXFINITY and ASCEND electrophotographic printers in December 2022 but continues to provide consumables and service for the installed base[35](index=35&type=chunk) - The business focuses on developing its next-generation inkjet platform, Ultrastream, for packaging and décor applications[29](index=29&type=chunk) [Advanced Materials and Chemicals](index=6&type=section&id=Advanced%20Materials%20and%20Chemicals) This segment encompasses Industrial Film and Chemicals, Motion Picture, and Advanced Materials, focusing on specialty chemicals and growth initiatives like EV battery materials - The segment's lines of business include Industrial Film and Chemicals, Motion Picture, and Advanced Materials and Functional Printing[32](index=32&type=chunk) - Kodak Alaris is a major customer, representing about **32%** of the segment's revenues in 2022[32](index=32&type=chunk) - Growth initiatives include producing KSMs for pharmaceuticals, specialty materials for EV batteries, light-blocking particles for textiles, and printed transparent antennas[39](index=39&type=chunk) [Brand](index=7&type=section&id=Brand) The Brand segment generates revenue by licensing the Kodak brand to third parties for various consumer products, aiming for ongoing royalty streams - This segment's revenue is derived from licensing the Kodak brand to third parties for use on a range of consumer products[39](index=39&type=chunk) [Risk Factors](index=9&type=section&id=Item%201A.%20Risk%20Factors) The company identifies numerous risks across business operations, indebtedness, legal compliance, and common stock, which could materially affect its financial condition [Risks Related to Business and Operations](index=12&type=section&id=Risks%20Related%20to%20Kodak's%20Business%20and%20Operations) Kodak faces significant operational risks from global economic conditions, supply chain disruptions, cyber-attacks, and reliance on third-party suppliers, impacting cash flow and new product commercialization - Global economic conditions, including the COVID-19 pandemic, the war in Ukraine, inflation, and rising interest rates, adversely affect Kodak's business through increased costs and supply chain disruptions[59](index=59&type=chunk)[67](index=67&type=chunk)[70](index=70&type=chunk) - Generating positive operating cash flow is critical for business continuity, as recent operations have relied on financing and monetization transactions[59](index=59&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) - Cyber-attacks and data security incidents pose significant risks, potentially disrupting operations, compromising confidential information, and leading to costly litigation[59](index=59&type=chunk)[89](index=89&type=chunk) - Kodak relies on third-party suppliers, facing risks of supply shortages, price increases, and logistical disruptions, especially for single-source components[64](index=64&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) [Risks Related to Indebtedness and Access to Capital Markets](index=22&type=section&id=Risks%20Related%20to%20Kodak's%20Indebtedness%20and%20Access%20to%20Capital%20Markets) Substantial debt obligations and a non-investment grade credit rating limit Kodak's capital access and investment capacity, with ABL availability tied to declining asset levels - The company has substantial obligations under its Term Loan, ABL Credit Agreement, and other facilities, requiring significant cash flow for servicing and potentially hindering operations funding[61](index=61&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) - Borrowing availability under the ABL Credit Agreement is limited by eligible asset values, and declining asset levels could restrict access[61](index=61&type=chunk)[123](index=123&type=chunk)[125](index=125&type=chunk) - Kodak's non-investment grade credit rating may adversely impact commercial operations, increase liquidity requirements, and raise refinancing costs[61](index=61&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) [Legal, Regulatory and Compliance Risks](index=24&type=section&id=Legal%20Regulatory%20and%20Compliance%20Risks) Kodak faces significant legal and regulatory risks from DFC-related investigations, non-compliance with global laws, and potential future pension obligations - Legal proceedings and investigations related to the July 2020 DFC loan announcement could materially affect the company's reputation, financial condition, and stock price[62](index=62&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) - Failure to comply with complex global laws, including anti-corruption, economic sanctions, and data privacy regulations, could result in significant penalties and reputational harm[62](index=62&type=chunk)[139](index=139&type=chunk)[142](index=142&type=chunk) - Future pension and postretirement benefit costs could be unfavorably impacted by changes in actuarial assumptions or market performance, potentially requiring significant cash contributions[68](index=68&type=chunk)[151](index=151&type=chunk) [Risks Related to the Company's Common Stock](index=27&type=section&id=Risks%20Related%20to%20the%20Company's%20Common%20Stock) Common stockholders face risks from potential dilution by convertible securities, significant voting power of preferred holders, and stock price volatility due to registered share resales - The conversion of outstanding Series B Preferred Stock, Series C Preferred Stock, and 2021 Convertible Notes may dilute the value and ownership percentage of current common stockholders[66](index=66&type=chunk)[155](index=155&type=chunk) - Holders of Series C Preferred Stock and 2021 Convertible Notes have significant voting power and board nomination rights, potentially influencing corporate actions[66](index=66&type=chunk)[158](index=158&type=chunk)[161](index=161&type=chunk) - The company has registered a large number of shares for resale, and their sale or perceived sale could cause the common stock price to decline[66](index=66&type=chunk)[163](index=163&type=chunk) - The company's stock price has been and may continue to be volatile, influenced by company announcements, operating results, and DFC-related investigations[66](index=66&type=chunk)[165](index=165&type=chunk) [Properties](index=29&type=section&id=Item%202.%20Properties) Kodak's global operations include 11 million square feet owned and 4 million square feet leased space, with headquarters in Rochester, New York, and key manufacturing sites worldwide - Kodak owns **11 million** square feet and leases **4 million** square feet of space worldwide, with headquarters at Eastman Business Park in Rochester, New York[167](index=167&type=chunk)[170](index=170&type=chunk) Principal Manufacturing Facilities by Segment | Digital Printing | Traditional Printing | Advanced Materials and Chemicals | | :--- | :--- | :--- | | Rochester, New York, USA | Rochester, New York, USA | Rochester, New York, USA | | Dayton, Ohio, USA | Columbus, Georgia, USA | Xiamen, China | | Vancouver, Canada | Osterode, Germany | Vancouver, Canada | | Shanghai, China | Gunma, Japan | | [Information About Our Executive Officers](index=30&type=section&id=Information%20About%20Our%20Executive%20Officers) This section provides biographical information for Kodak's executive officers, including the Executive Chairman and CEO, CFO, General Counsel, Chief Accounting Officer, and Chief Technical Officer Executive Officers | Name | Age | Positions Held | | :--- | :--- | :--- | | James V. Continenza | 60 | Executive Chairman and Chief Executive Officer | | David E. Bullwinkle | 48 | Chief Financial Officer, Senior Vice President and President of Eastman Business Park | | Roger W. Byrd | 57 | General Counsel, Secretary and Senior Vice President | | Richard T. Michaels | 49 | Chief Accounting Officer and Corporate Controller | | Terry R. Taber | 68 | Chief Technical Officer, Vice President, Senior Vice President Advanced Materials and Chemicals | Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=32&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Kodak's common stock trades on the NYSE under "KODK"; no dividends were paid in 2021-2022, with payments potentially restricted by credit agreements - Kodak's common stock is listed on the NYSE under the symbol **"KODK"**[192](index=192&type=chunk) - No dividends on common stock were declared or paid during 2022 or 2021, with payments potentially restricted by credit and preferred stock agreements[193](index=193&type=chunk)[194](index=194&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=33&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2022, consolidated revenues increased by **5%** to **$1.205 billion**, driven by pricing improvements despite currency impacts, as Kodak navigates economic volatility and focuses on strategic growth and liquidity management - Consolidated revenues for the year ended December 31, 2022, were **$1.205 billion**, a **5%** increase from 2021, despite a **$70 million** unfavorable currency impact[206](index=206&type=chunk) - The company's operations are impacted by global economic volatility, including supply chain disruptions, inflation, and the war in Ukraine, leading to increased costs and volume declines[208](index=208&type=chunk) - Kodak's strategy focuses on investing in print, advanced materials, and chemicals, growing revenues, promoting film use, and continuing cost reductions[218](index=218&type=chunk) - The company ended 2022 with a cash balance of **$217 million**, a decrease of **$145 million** from December 31, 2021[250](index=250&type=chunk) [Results of Operations](index=38&type=section&id=Results%20of%20Operations) In 2022, Kodak's revenues increased by **$55 million** to **$1.205 billion**, with net earnings rising to **$26 million**, driven by pricing improvements and reduced SG&A expenses Consolidated Results of Operations (2021 vs. 2022) | (in millions) | 2022 | 2021 | $ Change | | :--- | :--- | :--- | :--- | | Revenues | $1,205 | $1,150 | $55 | | Gross profit | $170 | $164 | $6 | | Selling, general and administrative expenses | $153 | $177 | ($24) | | Earnings from continuing operations before income taxes | $31 | $28 | $3 | | NET EARNINGS | $26 | $24 | $2 | - SG&A expenses decreased by **$24 million** in 2022, primarily due to lower consulting and litigation costs, including a **$10 million** insurance reimbursement[226](index=226&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) Kodak's liquidity, at **$217 million** cash in 2022, is managed through credit facilities, despite increased cash used in operations, with long-term funding dependent on refinancing and positive cash flow generation Cash Flow Summary (2021 vs. 2022) | (in millions) | 2022 | 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | ($116) | ($47) | | Net cash used in investing activities | ($56) | ($20) | | Net cash provided by financing activities | $43 | $238 | | Net decrease in cash, cash equivalents and restricted cash | ($137) | $167 | - The company's cash balance decreased by **$145 million** to **$217 million** at year-end 2022, including proceeds from a **$50 million** term loan offset by a **$25 million** investment in Wildcat[250](index=250&type=chunk) - Kodak is required to maintain Minimum Liquidity of at least **$80 million** quarterly, with **$150 million** reported as of December 31, 2022[258](index=258&type=chunk) Contractual Obligations as of December 31, 2022 | (in millions) | Total | 2023 | 2024 | 2025 | 2026 | 2027 | 2028+ | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Long-term debt | $379 | $1 | $2 | $1 | $366 | $1 | $8 | | Interest payments on debt | $99 | $31 | $29 | $29 | $6 | $1 | $3 | | Operating lease obligations | $68 | $20 | $12 | $7 | $6 | $5 | $18 | | Purchase obligations | $50 | $25 | $19 | $4 | $1 | $1 | — | | Convertible preferred stock cash dividends | $13 | $4 | $4 | $4 | $1 | — | — | | **Total** | **$609** | **$81** | **$66** | **$45** | **$380** | **$8** | **$29** | [Critical Accounting Policies and Estimates](index=49&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's financial statements rely on critical accounting policies and estimates for revenue recognition, long-lived asset valuation, embedded derivatives, income taxes, and pension benefits - Goodwill impairment testing as of December 31, 2022, indicated fair value of reporting units substantially exceeded carrying values, resulting in no impairment[296](index=296&type=chunk) - The annual impairment test for the Kodak trade name resulted in a **$1 million** pre-tax impairment charge in 2022, driven by lower forecasted revenues[299](index=299&type=chunk) - As of December 31, 2022, Kodak maintained a valuation allowance of **$826 million** against net deferred tax assets of **$799 million**, primarily due to uncertainty about asset realization[306](index=306&type=chunk)[597](index=597&type=chunk) - Pension plan assumptions are critical, with a **25 basis point** decrease in discount rate estimated to increase 2023 U.S. plan pre-tax pension expense by **$6 million** and PBO by **$46 million**[325](index=325&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Kodak is exposed to market risks from foreign currency, commodity prices, and interest rates, with hedging strategies in place and limited interest rate risk due to fixed-rate debt - The company is exposed to market risk from foreign currency exchange rates, commodity prices, and interest rates[337](index=337&type=chunk) - A sensitivity analysis showed a **10%** strengthening of the U.S. dollar at December 31, 2022, would decrease the fair value of open foreign currency forward contracts by **$11 million**[339](index=339&type=chunk) [Financial Statements and Supplementary Data](index=56&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Kodak's audited consolidated financial statements for the three years ended December 31, 2022, including statements of operations, financial position, and cash flow, along with detailed notes Consolidated Statement of Operations Highlights (in millions) | | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Total net revenues | $1,205 | $1,150 | $1,029 | | Gross profit | $170 | $164 | $135 | | Earnings (loss) from continuing operations | $26 | $24 | ($544) | | NET EARNINGS (LOSS) | $26 | $24 | ($541) | | Diluted earnings (loss) per share | $0.16 | $0.27 | ($9.77) | Consolidated Statement of Financial Position Highlights (in millions) | | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total current assets | $681 | $807 | | TOTAL ASSETS | $2,285 | $2,171 | | Total current liabilities | $293 | $309 | | Total liabilities | $1,041 | $1,194 | | Total equity | $1,041 | $781 | | TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY | $2,285 | $2,171 | Consolidated Statement of Cash Flow Highlights (in millions) | | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | ($116) | ($47) | ($35) | | Net cash used in investing activities | ($56) | ($20) | ($13) | | Net cash provided by financing activities | $43 | $238 | $10 | | Net (decrease) increase in cash, cash equivalents and restricted cash | ($137) | $167 | ($34) | [Controls and Procedures](index=134&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2022, confirmed by independent auditors - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2022[720](index=720&type=chunk) - Based on the COSO framework, management concluded that Kodak's internal control over financial reporting was effective as of December 31, 2022[724](index=724&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=135&type=section&id=Item%2010.%20Directors%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the company's definitive Proxy Statement - Required information regarding directors and corporate governance is incorporated by reference from the company's definitive Proxy Statement[729](index=729&type=chunk) [Executive Compensation](index=135&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive and director compensation, including CEO pay ratio and pay versus performance, is incorporated by reference from the company's definitive Proxy Statement - Required information regarding executive compensation is incorporated by reference from the company's definitive Proxy Statement[731](index=731&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=136&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference from the Proxy Statement, detailing outstanding options and available securities under equity compensation plans Equity Compensation Plan Information as of December 31, 2022 | Plan Category | Number of Securities to be Issued Upon Exercise (a) | Weighted-Average Exercise Price of Outstanding Options (b) | Number of Securities Remaining Available for Future Issuance (c) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 8,327,287 | $6.97 | 4,579,397 | [Certain Relationships and Related Transactions, and Director Independence](index=136&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related party transactions and director independence is incorporated by reference from the company's definitive Proxy Statement - Required information regarding certain relationships, related transactions, and director independence is incorporated by reference from the company's definitive Proxy Statement[734](index=734&type=chunk) [Principal Accounting Fees and Services](index=136&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information detailing fees paid to the principal accountant for audit and other services is incorporated by reference from the company's definitive Proxy Statement - Required information regarding principal accounting fees and services is incorporated by reference from the company's definitive Proxy Statement[735](index=735&type=chunk) Part IV [Financial Statement Schedules, Exhibits](index=137&type=section&id=Item%2015.%20Financial%20Statement%20Schedules%2C%20Exhibits) This section includes the financial statement schedule for Valuation and Qualifying Accounts (Schedule II) and a comprehensive index of all exhibits filed with the Form 10-K Valuation and Qualifying Accounts (in millions) | | Beginning Balance | Additions and Other | Deductions | Ending Balance | | :--- | :--- | :--- | :--- | :--- | | **Year ended Dec 31, 2022** | | | | | | Reserve for doubtful accounts | $7 | $2 | $2 | $7 | | Deferred tax valuation allowance | $934 | $18 | $126 | $826 | | **Year ended Dec 31, 2021** | | | | | | Reserve for doubtful accounts | $10 | $0 | $3 | $7 | | Deferred tax valuation allowance | $1,112 | $33 | $211 | $934 | | **Year ended Dec 31, 2020** | | | | | | Reserve for doubtful accounts | $8 | $7 | $5 | $10 | | Deferred tax valuation allowance | $821 | $344 | $53 | $1,112 |

Eastman Kodak Company (NYSE:KODK) Q3 2022 Earnings Conference Call November 7, 2022 5:00 PM ET Company Participants Paul Dils - Chief Tax Officer and Director of Investor Relations Jim Continenza - Chairman and CEO David Bullwinkle - CFO Conference Call Participants Operator Thank you for standing by and welcome to the Eastman Kodak Q3 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. As a reminder, today's call is being recorded. I would now like to turn the conferenc ...

Financial Performance - Q3 2022 - Consolidated revenue increased by $2 million, a 1% increase, reaching $289 million compared to Q3 2021[13] - Adjusted consolidated revenue, accounting for unfavorable foreign exchange impacts, increased by $24 million, an 8% increase, reaching $311 million[13] - Net income decreased by $6 million, resulting in $2 million[13] - Adjusted net loss was $3 million, a decrease of $8 million[13] - Operational EBITDA increased by $1 million, resulting in $7 million[13] - Adjusted Operational EBITDA, accounting for unfavorable foreign exchange impacts, increased by $3 million, resulting in $8 million[13] Financial Performance - Year-To-Date 2022 - Consolidated revenue increased by $57 million, reaching $900 million compared to YTD 2021[15] - Adjusted consolidated revenue, accounting for unfavorable foreign exchange impacts, increased by $108 million, reaching $951 million[15] - Net income decreased by $11 million, resulting in $19 million[15] - Adjusted net income decreased by $12 million, resulting in $5 million[15] - Operational EBITDA decreased by $8 million, resulting in $11 million[15] - Adjusted Operational EBITDA, accounting for unfavorable foreign exchange impacts, decreased by $7 million, resulting in $8 million[15] Business Strategy and Investments - The company exercised its right to draw an additional $50 million from the Term Loan Credit Agreement, partially used to fund an investment in Wildcat Discovery Technologies, Inc[9] - The company's long-term strategy continues to focus on core competencies in print and advanced materials and chemicals[11]