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 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the year ended December 31, 2022 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 1-00087 EASTMAN KODAK COMPANY (Exact name of Registrant as specified in its Charter) New Jersey 16-0417150 (State or other jurisdiction o ...

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]

[Part I. Financial Information](index=3&type=section&id=Part%20I.%E2%80%94Financial%20Information) This section presents the company's unaudited interim financial statements and management's analysis [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Eastman Kodak Company's unaudited consolidated interim financial statements, including key operational and financial position data [Consolidated Statement of Operations](index=3&type=section&id=Consolidated%20Statement%20of%20Operations%20%28Unaudited%29) Total revenues increased to **$900 million** for the nine months ended September 30, 2022, while net income decreased to **$19 million** Consolidated Statement of Operations Highlights (in millions) | Metric | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $900 | $843 | $289 | $287 | | **Gross Profit** | $127 | $131 | $43 | $43 | | **Loss from Operations** | $(25) | $(19) | $(7) | $(9) | | **Net Income** | $19 | $30 | $2 | $8 | | **Diluted EPS** | $0.11 | $0.39 | $(0.01) | $0.06 | [Consolidated Statement of Financial Position](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position%20%28Unaudited%29) Total assets increased to **$2.26 billion** as of September 30, 2022, while cash and cash equivalents decreased to **$216 million** Key Balance Sheet Items (in millions) | Account | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $216 | $362 | | **Inventories, net** | $273 | $219 | | **Total current assets** | $699 | $807 | | **Total Assets** | $2,259 | $2,171 | | **Total current liabilities** | $297 | $309 | | **Long-term debt, net** | $312 | $253 | | **Total Liabilities** | $1,157 | $1,194 | | **Total shareholders' equity** | $901 | $781 | [Consolidated Statement of Cash Flows](index=6&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows%20%28Unaudited%29) Net cash used in operating activities significantly increased to **$130 million** for the nine months ended September 30, 2022 Cash Flow Summary (in millions) | Activity | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(130) | $(33) | | **Net cash used in investing activities** | $(44) | $(9) | | **Net cash provided by financing activities** | $45 | $240 | | **Net (decrease) increase in cash** | $(143) | $195 | | **Cash, cash equivalents and restricted cash, end of period** | $280 | $451 | [Notes to Financial Statements](index=9&type=section&id=Notes%20to%20Financial%20Statements%20%28Unaudited%29) The notes provide detailed explanations of financial statements, covering investments, debt, segment revenue, and legal contingencies - On July 13, 2022, Kodak invested **$25 million** to acquire a minority preferred equity interest in Wildcat Discovery Technologies, Inc., a private company developing new battery materials. Kodak will also provide coating and engineering services to Wildcat[26](index=26&type=chunk) - The company is involved in a consolidated securities class action lawsuit related to the 2020 DFC loan announcement. The lawsuit was dismissed with prejudice on September 28, 2022, but the plaintiffs filed a notice of appeal on October 27, 2022[59](index=59&type=chunk) - As of September 30, 2022, the company had approximately **$60 million** of unrecognized revenue from unsatisfied performance obligations, with about **30%** expected to be recognized in 2023[98](index=98&type=chunk) Revenue by Segment - Nine Months Ended Sep 30 (in millions) | Segment | 2022 Revenue | 2021 Revenue | | :--- | :--- | :--- | | Traditional Printing | $535 | $483 | | Digital Printing | $169 | $184 | | Advanced Materials and Chemicals | $173 | $155 | | Brand | $11 | $10 | | All Other | $12 | $11 | | **Consolidated Total** | **$900** | **$843** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting revenue growth, global economic challenges, strategic focus areas, and liquidity position [Executive Overview and Global Impacts](index=35&type=section&id=Executive%20Overview%20and%20Global%20Impacts) Consolidated revenues increased by **7%** to **$900 million** despite unfavorable currency impacts and global economic challenges - For the nine months ended Sep 30, 2022, revenues improved by **$57 million (7%)** year-over-year, but were unfavorably impacted by currency fluctuations of **$51 million**[150](index=150&type=chunk) - Kodak is experiencing supply chain disruptions, shortages in materials and labor, and increased costs. It has implemented mitigation measures like increasing safety stock and pricing actions[152](index=152&type=chunk)[153](index=153&type=chunk) - The war in Ukraine has disrupted the company's Russian subsidiary, which is being wound down. It has also caused worldwide supply constraints for aluminum and electronic components and increased energy and transportation costs[156](index=156&type=chunk)[157](index=157&type=chunk) [Company Strategy](index=36&type=section&id=Company%20Strategy) Kodak's strategy focuses on core print and advanced materials, aiming for revenue growth and expansion into new markets like EV battery materials - Strategic focus areas include: investing in print and advanced materials; growing revenue through customer focus and market share gains; promoting film use and expanding applications for film and chemicals; driving cost reductions through process streamlining[161](index=161&type=chunk) - New initiatives in Advanced Materials and Chemicals leverage expertise in coating and chemistry for applications in: EV/Energy Storage Battery Materials (in collaboration with Wildcat); Light-Blocking Technology for fabrics; Transparent Antennas using copper micro-wire technologies; Reagent Manufacturing for healthcare applications[163](index=163&type=chunk) [Reportable Segments Analysis](index=40&type=section&id=Reportable%20Segments%20Analysis) Traditional Printing revenue grew **11%** to **$535 million**, while Digital Printing revenue declined **8%** to **$169 million** for the nine months ended September 30, 2022 Segment Performance - Nine Months Ended Sep 30, 2022 vs 2021 (in millions) | Segment | Revenue 2022 | Revenue 2021 | Operational EBITDA 2022 | Operational EBITDA 2021 | | :--- | :--- | :--- | :--- | :--- | | **Traditional Printing** | $535 | $483 | $15 | $16 | | **Digital Printing** | $169 | $184 | $(15) | $(2) | | **Advanced Materials & Chemicals** | $173 | $155 | $1 | $(3) | | **Brand** | $11 | $10 | $10 | $8 | - Traditional Printing's performance was characterized by significant pricing improvements (**$113 million** YTD) being largely offset by higher aluminum costs (**$64 million** YTD) and other manufacturing cost increases (**$47 million** YTD)[185](index=185&type=chunk) - Digital Printing's Operational EBITDA declined by **$13 million** YTD, primarily due to increased manufacturing costs (**$9 million**), higher R&D spending (**$2 million**), and unfavorable foreign currency (**$4 million**)[190](index=190&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) Cash balance decreased to **$216 million** at Q3 2022, with **$130 million** net cash used in operations, while liquidity is deemed adequate for the next 12 months Cash Position (in millions) | Date | Cash and Cash Equivalents | Restricted Cash | Total | | :--- | :--- | :--- | :--- | | **Sep 30, 2022** | $216 | $64 | $280 | | **Dec 31, 2021** | $362 | $61 | $423 | - Net cash used in operating activities increased by **$97 million** year-over-year, primarily due to increased investment in inventory to ensure customer supply[218](index=218&type=chunk) - The company must maintain Minimum Liquidity of at least **$80 million** (was **$143 million** at Sep 30, 2022) and Excess Availability above **12.5%** of lender commitments under its ABL Credit Agreement (was **$30 million** at Sep 30, 2022)[207](index=207&type=chunk)[211](index=211&type=chunk) - The Amended ABL Credit Agreement matures on February 26, 2024. The company's ability to fund long-term requirements depends on amending, refinancing, or extending this agreement[212](index=212&type=chunk)[215](index=215&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks, primarily from foreign currency exchange rate fluctuations due to its global operations - The company is exposed to market risk from fluctuations in foreign currency exchange rates due to its extensive international business operations[229](index=229&type=chunk) [Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2022, with no material changes to internal controls - Management concluded that as of September 30, 2022, the company's disclosure controls and procedures were effective[230](index=230&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[231](index=231&type=chunk) [Part II. Other Information](index=48&type=section&id=Part%20II.%20%E2%80%94Other%20Information) This section provides additional information, including legal proceedings, risk factors, equity sales, and exhibits [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 8 of the financial statements for details on the company's legal proceedings - For information on legal proceedings, the report refers to Note 8, "Commitments and Contingencies" in the financial statements[233](index=233&type=chunk) [Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the 2021 Form 10-K for a detailed discussion of the company's risk factors - The report refers to the Risk Factors section of the 2021 Form 10-K for a detailed discussion of risks affecting the company[234](index=234&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred in Q3 2022, though the company purchased **52,552** shares for tax withholding obligations - There were no sales of unregistered securities in Q3 2022[235](index=235&type=chunk) Issuer Purchases of Equity Securities (Q3 2022) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | **July 2022** | 33,065 | $4.96 | | **August 2022** | 9,552 | $6.37 | | **September 2022** | 9,935 | $5.48 | | **Total** | **52,552** | **$5.31** | - Share purchases were made to satisfy tax withholding obligations for employee restricted stock units and not as part of a formal repurchase program[236](index=236&type=chunk)[237](index=237&type=chunk) [Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with the Form 10-Q, including certifications and XBRL data files - This section lists exhibits filed with the report, including certifications from the CEO and CFO (Exhibits 31.1, 31.2, 32.1, 32.2) and XBRL data files[238](index=238&type=chunk)[240](index=240&type=chunk)