Kodak Reports First-Quarter 2018 Results

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On May 9th, Eastman Kodak reported financial results for its first quarter that ended on March 31, 2018, reporting a net loss of $25 million on revenues of $357 million, but continued growth for its KODAK SONORA Process-Free Plates, KODAK FLEXCEL NX Packaging and KODAK PROSPER Inkjet businesses.

Highlights for first-quarter 2018 include:

  • Operational EBITDA (earnings before interest, taxes, depreciation, and amortization) of $1 million.
  • Revenues for the quarter of $357 million, which was flat compared first-quarter 2017.

Kodak also stated that key product lines achieved strong year-over-year growth for the quarter:

  • Volume for KODAK SONORA Process Free Plates grew by 21 percent.
  • Volume for KODAK FLEXCEL NX Plates grew by 15 percent.
  • Annuity revenues for the KODAK PROSPER inkjet platform grew by 14 percent.

Kodak ended its first quarter with a cash balance of $313 million, down $31 million from the December 31, 2017 cash balance of $344 million.

Kodak CEO Jeff Clarke commented: “Kodak had continued strong performance in SONORA Process-Free Plates, FLEXCEL NX Packaging and PROSPER Inkjet annuities. We are on plan to deliver full-year revenue and Operational EBITDA performance within the expected guidance range.”

Revenues for the quarter ending March 31, 2018 were $357 million, which was flat compared with first-quarter 2017. The company reported a first-quarter net loss of $25 million and Operational EBITDA of $1 million, down $5 million compared with first quarter of 2017.

“Our use of cash for the first quarter was in line with our expectations and significantly improved from the same period a year ago,” said David Bullwinkle, Kodak Chief Financial Officer. “We have meaningfully improved productivity and are on track to deliver over $50 million year on year cost savings in 2018.”

Kodak’s largest division, its Print Systems Division (PSD), had first-quarter  revenues of $216 million, an increase of $3 million compared with first-quarter 2017. Operational EBITDA for the quarter was $4 million, compared with $12 million for the same period a year ago. Kodak says that the decline was due mainly to higher costs for aluminum, which is the primary material used to manufacture the division’s offset printing plate products.

PSD’s KODAK SONORA Process Free Plates had continued strong performance for the quarter, delivering 21 percent year-over-year growth in unit sales. SONORA Plates now account for 21 percent of the division’s total plate-unit sales.

During the quarter, PSD launched SONORA X Process-Free plates, which expand the reach of Kodak’s process-free plates from 30 to 80 percent of market applications. PSD also launched the KODAK NEXFINITY Digital Press, which it says is positioned to become the most versatile sheet-fed digital press on the market.

Kodak’s Enterprise Inkjet Systems Division (EISD), including the KODAK PROSPER and KODAK VERSAMARK businesses and the investment in ULTRASTREAM inkjet technology, had first-quarter revenues of $31 million, down from $37 million versus first-quarter 2017. Operational EBITDA was $0, which was flat compared with the same period in the prior year.

For the first quarter of 2018, Kodak says its PROSPER business “continued to deliver strong performance with year-over-year annuity growth of 14 percent.” The company continues to invest in the development of KODAK ULTRASTREAM, the next-generation inkjet writing system, which is scheduled for launch in 2019.

Kodak’s Flexographic Packaging Division (FPD) includes KODAK FLEXCEL NX Systems and Plates, as well as other packaging products, such as analog flexographic plates and letterpress plates, proofing products, and services. FPD had a “strong performance for the quarter, driven by consistent growth in KODAK FLEXCEL NX Plates.” Revenues for the first quarter were $37 million, up $4 million compared with the same period a year ago. Operational EBITDA for the first quarter was $7 million, an improvement of $1 million compared with first-quarter 2017.

For the quarter, FLEXCEL NX plate volume continued to grow, increasing 15 percent year-over-year. The division continues to invest in new product development and infrastructure, including a plate-manufacturing line in Weatherford, Oklahoma, that’s scheduled to be on-line in early 2019.

Kodak’s Software and Solutions Division (SSD) revenues for the first quarter were $20 million, a $1 million decline compared with the same period last year. Operational EBITDA was $0, which was flat compared with first-quarter 2017.

Kodaks’s Consumer and Film Division (CFD) revenues for the first quarter were $48 million, compared with $49 million for first-quarter 2017. Operational EBITDA declined to negative $4 million in first-quarter 2017 to negative $6 million in first-quarter 2018. CFD’s motion-picture film business had a “strong performance for the quarter, with a revenue increase of 20 percent compared with the same quarter in the prior year.”

Kodak’s Advanced Materials and 3D (AM3D) division had Operational EBITDA for the quarter of negative $4 million, an improvement of $4 million compared with the same period in the prior year. The division continues to focus on investments in light-blocking particles, printed electronics, and advanced materials.

Kodak’s Eastman Business Park Division (EBPD) had first-quarter revenues of $4 million, which was flat compared with first-quarter 2017. Operational EBITDA was flat compared with first-quarter 2017.

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