Eastman Kodak Co. Reports Q1 2024 Results, Including Asset Sale Gain

TL;DR

<b>Eastman Kodak Co. recognized a $17 million gain from asset sales and $9 million in interest income in Q1 2024.</b>

AI Summary

EASTMAN KODAK CO (KODK) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Recognized a $17 million gain from the sale of certain U.S. assets in Q1 2024. Included $9 million in interest income related to a 2023 refund from a foreign governmental authority. Preferred stock issued and outstanding: 2.1 million shares at March 31, 2024, and December 31, 2023. Core segment includes Print, Motion Picture, and Industrial Film and Chemicals (excluding Coating Services). Growth segment comprises Coating Services and Advanced Materials and Functional Printing.

Why It Matters

For investors and stakeholders tracking EASTMAN KODAK CO, this filing contains several important signals. The gain from asset sales provides a one-time boost to earnings, impacting short-term financial performance. The interest income from a prior year refund highlights the resolution of tax disputes and improves current period results.

Risk Assessment

Risk Level: medium — EASTMAN KODAK CO shows moderate risk based on this filing. The company's financial performance is subject to risks associated with asset sales, potential tax disputes, and the complexities of its diverse business segments, as indicated by the gain recognition and interest income details.

Analyst Insight

Monitor the impact of the asset sale gain on future operational performance and assess the ongoing resolution of tax-related matters.

Revenue Breakdown

Key Numbers

• 17,000,000 — Gain on Asset Sale (Q1 2024)
• 9,000,000 — Interest Income (Q1 2024)
• 2,100,000 — Preferred Stock Outstanding (March 31, 2024)
• 2,100,000 — Preferred Stock Outstanding (December 31, 2023)

Key Players & Entities

• EASTMAN KODAK CO (company) — FILER
• KODK (company) — tk
• 2024-05-09 (date) — FILED AS OF DATE
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• $17 million (dollar_amount) — gain from asset sale
• $9 million (dollar_amount) — interest income
• 2.1 million (dollar_amount) — preferred stock issued and outstanding
• 343 STATE ST (address) — BUSINESS ADDRESS

FAQ

Risk Factors

• Gain on Sale of Assets [low — financial]: The company recognized a $17 million gain from the sale of certain U.S. assets in Q1 2024.
• Interest Income from Refund [low — financial]: Included $9 million of interest income associated with a refund received in Q1 2023 from a foreign governmental authority.
• Preferred Stock [low — financial]: There are 60 million shares of no-par value preferred stock authorized, with 2.1 million issued and outstanding as of March 31, 2024.
• Consulting and Other Costs [medium — operational]: These costs include professional services and internal costs for strategic initiatives, investigations, and litigation.

Key Financial Figures

• $0.01 — ch registered Common stock, par value $0.01 per share KODK New York Stock Excha
• $1 million — ersion Features The Company allocated $1 million to a derivative liability based on the

Filing Documents

• ekc20240331_10q.htm (10-Q) — 1378KB
• ex_668583.htm (EX-10.1) — 24KB
• ex_641720.htm (EX-31.1) — 13KB
• ex_641721.htm (EX-31.2) — 13KB
• ex_641722.htm (EX-32.1) — 6KB
• ex_641723.htm (EX-32.2) — 6KB
• 0001437749-24-015681.txt (&nbsp;) — 7130KB
• kodk-20240331.xsd (EX-101.SCH) — 63KB
• kodk-20240331_cal.xml (EX-101.CAL) — 56KB
• kodk-20240331_def.xml (EX-101.DEF) — 424KB
• kodk-20240331_lab.xml (EX-101.LAB) — 326KB
• kodk-20240331_pre.xml (EX-101.PRE) — 453KB
• ekc20240331_10q_htm.xml (XML) — 1256KB

— Financial Information

Part I. — Financial Information Item 1.

Financial Statements

Financial Statements 3 Consolidated Statement of Operations (Unaudited) 3 Consolidated Statement of Comprehensive Income (Unaudited) 4 Consolidated Statement of Financial Position (Unaudited) 5 Consolidated Statement of Cash Flows (Unaudited) 6 Consolidated Statement of Equity (Deficit) (Unaudited) 7

Notes to Financial Statements (Unaudited)

Notes to Financial Statements (Unaudited) 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Liquidity and Capital Resources 37 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 41 Item 4.

Controls and Procedures

Controls and Procedures 41

— Other Information

Part II. — Other Information Item 1.

Legal Proceedings

Legal Proceedings 42 Item 1A.

Risk Factors

Risk Factors 42 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42 Item 5. Other Information 42 Item 6. Exhibits 43 Index to Exhibits 43

Signatures

Signatures 45 [2] Table of Contents

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements EASTMAN KODAK COMPANY CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (in millions, except per share data) Three Months Ended March 31, 2024 2023 Revenues Sales $ 206 $ 224 Services 43 54 Total revenues 249 278 Cost of revenues Sales 168 192 Services 32 36 Total cost of revenues 200 228 Gross profit 49 50 Selling, general and administrative expenses 45 34 Research and development costs 9 9 Restructuring costs and other 5 1 Other operating (income) expense, net ( 17 ) 1 Earnings from operations before interest expense, pension income excluding service cost component, other income, net and income taxes 7 5 Interest expense 15 11 Pension income excluding service cost component ( 41 ) ( 40 ) Other income, net ( 2 ) ( 7 ) Earnings from operations before income taxes 35 41 Provision for income taxes 3 8 NET EARNINGS $ 32 $ 33 Basic net earnings per share attributable to Eastman Kodak Company common shareholders $ 0.31 $ 0.33 Diluted net earnings per share attributable to Eastman Kodak Company common shareholders $ 0.30 $ 0.30 Number of common shares used in basic and diluted net earnings per share Basic 79.7 79.1 Diluted 91.3 92.2 The accompanying notes are an integral part of these consolidated financial statements. [3] Table of Contents EASTMAN KODAK COMPANY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) (in millions) Three Months Ended March 31, 2024 2023 NET EARNINGS $ 32 $ 33 Other comprehensive loss, net of tax: Currency translation adjustments ( 6 ) ( 1 ) Pension and other postretirement benefit plan obligation activity, net of tax ( 6 ) ( 6 ) Other comprehensive loss, net of tax ( 12 ) ( 7 ) COMPREHENSIVE INCOME, NET OF TAX $ 20 $ 26 The accompanying notes are an integral part of these consolidated financial statements. [4] Table

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1: BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS BASIS OF PRESENTATION The consolidated interim financial statements are unaudited, and certain information and footnote disclosures related thereto normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been omitted in accordance with the instructions to Form 10 -Q and Rule 10 - 01 of Regulation S- X. In the opinion of management, the accompanying unaudited consolidated interim financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the results of operations, financial position and cash flows of Eastman Kodak Company and all companies directly or indirectly controlled, either through majority ownership or otherwise ("Kodak" or the "Company"). The results of operations for the interim periods are not necessarily indicative of the results for the entire fiscal year. These consolidated interim statements should be read in conjunction with the Company's Annual Report on Form 10 -K for the year ended December 31, 2023 (the " 2023 Form 10 -K"). RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS There are no accounting pronouncements recently adopted by Kodak. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In December 2023, the FASB issued ASU 2023 - 09, Income Taxes (Topic 740 ): Improvements to Income Tax Disclosures. ASU 2023 - 09 requires disclosure of additional categories of information about federal, state and foreign income taxes in the rate reconciliation table and more details about the reconciling items in some categories if items meet a quantitative threshold. The ASU requires entities to disclose income taxes paid, net of refunds, disaggregated by federal (national), state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitativ

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