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Kodak Narrows Loss in First Earnings Report Since Bankruptcy

Friday, March 21, 2014

Press release from the issuing company

Adjusted Operational EBITDA in fourth quarter improves by $96 million; fourth quarter net loss improves by $339 million vs. 2012;Sales of $2.35 billion in 2013, a decline of 14% vs. 2012;2014 projections: Sales from $2.1-2.3 billion, Operational EBITDA from $145-165 million, Earnings from Continuing Operations between a loss of $40 million and break-even

ROCHESTER, N.Y.- Eastman Kodak Company (NYSE: KODK) today reported financial results for the fourth quarter and full year 2013. Performance highlights include:  

  • Full-year operational EBITDA of $160 million in 2013 was an improvement by $375 million, excluding fresh start and other accounting adjustments.
  • Total net earnings for the year were $1.99 billion, including a reorganization items net gain of $2.01 billion, as well as a gain of $535 million related to the sale of the digital imaging patent portfolio, partially offset by a $77 million non-cash goodwill impairment charge. For 2012, there was a net loss of $1.38 billion.
  • Sales for 2013 declined from the prior year by 14% to $2.35 billion, as the company prioritized profitable opportunities over sales volume, and sales of motion picture film and consumer inkjet printer ink continued to decline. The business emergence plan revenue projection for 2013 was approximately $2.5 billion.
  • Full year 2013 gross profit margin improved year-over-year by ten percentage points, reflecting primarily increased contribution from non-recurring intellectual property arrangements, product mix improvements, and cost reductions.
  • Liquidity remains strong; the year ended with $844 million cash and debt of $678 million.
  • Fourth quarter net loss was reduced from $402 million in 2012 to $63 million in 2013.

Kodak is releasing these financial results in tandem with the filing of its Form 10-K annual report.  

"We had significant year-over-year improvement in our operating performance, but our sales fell short of our plan. The decline was primarily due to the accelerated decline in our motion picture film business, the decline in revenues in our consumer inkjet business with the end of printer sales, and the loss of revenue while we were in reorganization," said Becky Roof, Chief Financial Officer.  

Looking at 2014, Jeff Clarke, Chief Executive Officer, added, "I am excited about the strong increases we are seeing in revenues from our emerging technology businesses that will create the foundation for Kodak's future growth. We expect to mitigate the earnings declines in some of our mature businesses with improved performance from our strategic technology businesses. I also believe there are significant opportunities to improve the productivity and effectiveness of our sales, manufacturing and administrative functions."  

2014 Outlook – Kodak currently estimates revenue in 2014 will total approximately $2.1-2.3 billion. The company anticipates substantial year-over-year sales growth in its emerging technology businesses, led by digital printing, packaging and functional printing; stability in its enterprise services and graphics communications businesses, and revenue declines for motion picture film and consumer inkjet printer ink sales. The company expects to achieve earnings from continuing operations between a $40 million loss and break-even and Operational EBITDA of approximately $145-$165 million in 2014. Capital expenditures of approximately $50 million are projected. Kodak does not intend to release projections beyond 2014 at this time.  

Full Release


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