Kodak Q3 financial results
Kodak released their third quarter financial results:
- GAAP net earnings of $19 million for the quarter ended September 30, 2018.
- Operational EBITDA for the quarter of $20 million, an increase of $7 million compared with the third quarter of 2017.
- Revenues for the quarter of $366 million, compared with $379 million in the prior-year quarter.
- Key product lines achieved strong year-over-year growth for the quarter:
- Volume for KODAK SONORA Process-Free Plates grew by 17 percent.
- Volume for KODAK FLEXCEL NX Plates grew by 17 percent.
- Annuity revenues for the KODAK PROSPER inkjet platform grew by 8 percent.
- The company ended the quarter with a cash balance of $238 million and expects to generate cash in the fourth quarter 2018.
- 2018 revenue guidance revised to $1.475 billion to $1.525 billion; Operational EBITDA guidance remains at $55 million to $60 million.
- Additional development: Kodak is in advanced negotiations on an exclusive basis to sell its Flexographic Packaging Division. The net proceeds from the transaction will be used to reduce the Company’s outstanding term debt.
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Full press release:
Kodak Reports Q3 Net Earnings of $19 Million and Continued Strong Performance of SONORA Plates, FLEXCEL NX Plates and PROSPER Inkjet
Eastman Kodak Company (NYSE: KODK) today reported financial results for the third quarter 2018, delivering net earnings of $19 million on revenues of $366 million and continued growth in its KODAK SONORA Process-Free Plates, KODAK FLEXCEL NX Packaging and KODAK PROSPER Inkjet businesses.
Revenues for the quarter ending September 2018 were $366 million, a decline of $13 million compared with the third quarter of 2017. The company reported third-quarter GAAP net earnings of $19 million and Operational EBITDA of $20 million, an increase of $7 million compared with the third quarter of 2017. The increase was driven by continued strong performance in key product lines, cost reductions in Kodak’s Advanced Materials and 3D Printing Technology Division and changes in employee-related reserves, offset by the $6 million year-over-year adverse impact of the cost of aluminum.
“I’m pleased with the continued strong performance of our growth engines, including SONORA Plates, FLEXCEL NX Plates and PROSPER annuities, which contribute an increasing share of our revenues,” said Jeff Clarke, Kodak Chief Executive Officer. “For the fourth quarter of 2018, the Company will focus on the expected sale of our Flexographic Packaging Division and improving productivity by completing cost actions announced earlier this year.”
The company revised 2018 guidance for revenues to $1.475 billion to $1.525 billion and reiterated Operational EBITDA guidance of $55 million to $60 million.
Kodak ended the quarter with a cash balance of $238 million, down $37 million from the June 30, 2018 cash balance of $275 million. The decrease reflects investments in new technologies, working capital, capital expenditures including the construction of a new FLEXCEL NX manufacturing line in Weatherford, OK, interest payments and costs of strategic transactions. The company expects to generate cash in the fourth quarter of 2018 and to end the year with a cash balance of $260 million to $265 million.
“The Company’s use of cash in Q3 primarily reflects our investment in working capital to support sequential growth in Q4,” said David Bullwinkle, Kodak Chief Financial Officer. “We have made significant progress reducing our cost structure and we will continue to strengthen our liquidity by completing actions to reduce operating costs and monetization activities. We expect to generate cash in Q4 through increased EBITDA, working capital and non-recurring transactions.”