Kodak Reports Q2, 2022 Financial Results

Second-quarter 2022 highlights include:

• Consolidated revenues of $321 million, compared with $291 million for Q2 2021
• GAAP net income of $20 million, compared with $16 million for Q2 2021
• Operational EBITDA of $11 million, compared with $10 million for Q2 2021
• A quarter-end cash balance of $289 million, compared with $362 million at the end of 2021

“Kodak delivered year-over-year growth in revenues and quarter-sequential growth in gross profit for the second quarter of 2022, despite ongoing inflationary and supply chain challenges,” said Jim Continenza, Kodak’s Executive Chairman and CEO.

“We continue to invest in digital print technologies designed to help our customers mitigate cost and supply risks associated with traditional prepress. We have launched the KODAK PROSPER 7000 Turbo Press, the world’s fastest inkjet press, and the KODAK ASCEND Digital Press, the perfect solution for the growing retail/point of purchase and high-end packaging markets. We have also officially launched two products powered by our ground-breaking ULTRASTREAM inkjet technology: the KODAK PROSPER ULTRA 520 Press, which offers offset print quality in a smaller footprint, and the first flexible package printing system, the UTECO Sapphire EVO W Press. In addition, we continue to make significant investments in recently announced growth initiatives in our Advanced Materials & Chemicals business, expanding our pilot coating facility and taking a minority stake in Wildcat Discovery Technologies, Inc., a private technology company that uses proprietary methods to research and develop new battery materials and is developing a breakthrough EV ‘super cell’ battery technology. Looking forward, we’ll continue to focus on driving profitable revenue by concentrating on our core businesses and helping our customers build theirs.”

For the quarter ended June 30, 2022, revenues were $321 million, an improvement of $30 million compared to the same period in 2021. The Company had GAAP net income of $20 million for the quarter, compared to $16 million in the prior-year quarter. Operational EBITDA for the second quarter was $11 million, compared to $10 million in Q2 2021. Operational EBITDA was favorably impacted by the growth in revenue due to improved pricing and volume, partially offset by higher continued ongoing global cost increases.

On June 15, 2022, Kodak exercised its right to draw down in full an additional $50 million in aggregate principal pursuant to the Term Loan Credit Agreement and received net proceeds of $49 million. Kodak ended the second quarter with a cash balance of $289 million, a net decrease of $73 million from December 31, 2021. The decrease is primarily attributable to increases in working capital, the impact of higher costs and increased capital investment. In July 2022, Kodak invested $25 million of the proceeds received from the delayed draw term loans to acquire the minority stake in Wildcat.

“The use of cash in the second quarter primarily reflects higher inventory levels which strengthen our ability to serve our customers and support increased revenues. As planned, the Company also continues to invest in new product innovations and growth areas,” said David Bullwinkle, Kodak’s CFO. “Key metrics from the second quarter, such as increasing revenues and gross profit on both a year-over-year and quarter-sequential basis, reflect the successful ongoing execution of our long-term strategy,” concluded Bullwinkle.