Kodak Reports Q2 2024 Results, Asset Sale Gains

TL;DR

Kodak Q2 2024: $17M asset gain Q1'24, $9M interest income Q1'23. Preferred stock outstanding at 2.1M.

AI Summary

Eastman Kodak Co. reported its Q2 2024 results, noting a $17 million gain from asset sales in the U.S. during the first quarter of 2024. The company also had $9 million in interest income in Q1 2023 related to a tax dispute refund from a foreign governmental authority. Kodak has 60 million preferred shares authorized, with 2.1 million issued and outstanding as of December 31, 2022.

Why It Matters

This filing provides insight into Eastman Kodak's financial performance and strategic asset management, impacting investor understanding of the company's current financial health.

Risk Assessment

Risk Level: low — The filing is a routine quarterly report with no immediate red flags indicating significant new risks.

Key Numbers

• $17 million — Gain from asset sales (Recognized in Q1 2024)
• $9 million — Interest income (Associated with a foreign governmental refund in Q1 2023)
• 2.1 million — Preferred stock outstanding (As of December 31, 2022)

Key Players & Entities

• EASTMAN KODAK CO (company) — Filer
• 20240630 (date) — Reporting Period End Date
• 20240808 (date) — Filing Date
• $17 million (dollar_amount) — Gain from asset sales in Q1 2024
• $9 million (dollar_amount) — Interest income in Q1 2023
• 2.1 million (dollar_amount) — Preferred stock issued and outstanding as of Dec 31, 2022

FAQ

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

• ekc20240523_10q.htm (10-Q) — 2090KB
• ex_702627.htm (EX-10.1) — 8KB
• ex_678838.htm (EX-31.1) — 13KB
• ex_678839.htm (EX-31.2) — 13KB
• ex_678840.htm (EX-32.1) — 6KB
• ex_678841.htm (EX-32.2) — 6KB
• 0001437749-24-025552.txt ( ) — 9345KB
• kodk-20240630.xsd (EX-101.SCH) — 63KB
• kodk-20240630_cal.xml (EX-101.CAL) — 59KB
• kodk-20240630_def.xml (EX-101.DEF) — 427KB
• kodk-20240630_lab.xml (EX-101.LAB) — 333KB
• kodk-20240630_pre.xml (EX-101.PRE) — 456KB
• ekc20240523_10q_htm.xml (XML) — 2124KB

— Financial Information

Part I. — Financial Information Item 1.

Financial Statements

Financial Statements 3 Consolidated Statement of Operations (Unaudited) 3 Consolidated Statement of Comprehensive Income (Loss) (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 29 Liquidity and Capital Resources 39 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 43 Item 4.

Controls and Procedures

Controls and Procedures 43

— Other Information

Part II. — Other Information Item 1.

Legal Proceedings

Legal Proceedings 44 Item 1A.

Risk Factors

Risk Factors 44 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 44 Item 5. Other Information 44 Item 6. Exhibits 45 Index to Exhibits 45

Signatures

Signatures 47 [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 Six Months Ended June 30, June 30, 2024 2023 2024 2023 Revenues Sales $ 227 $ 242 $ 433 $ 468 Services 40 53 83 105 Total revenues 267 295 516 573 Cost of revenues Sales 181 195 349 388 Services 28 37 60 72 Total cost of revenues 209 232 409 460 Gross profit 58 63 107 113 Selling, general and administrative expenses 47 40 92 74 Research and development costs 8 9 17 18 Restructuring costs and other — 5 5 6 Other operating expense (income), net 1 ( 1 ) ( 16 ) — Earnings from operations before interest expense, pension income excluding service cost component, other expense (income), net and income taxes 2 10 9 15 Interest expense 15 11 30 22 Pension income excluding service cost component ( 41 ) ( 41 ) ( 82 ) ( 81 ) Other expense (income), net 1 3 ( 1 ) ( 4 ) Earnings from operations before income taxes 27 37 62 78 Provision for income taxes 1 2 4 10 NET EARNINGS $ 26 $ 35 $ 58 $ 68 Basic net earnings per share attributable to Eastman Kodak Company common shareholders $ 0.25 $ 0.35 $ 0.56 $ 0.68 Diluted net earnings per share attributable to Eastman Kodak Company common shareholders $ 0.23 $ 0.32 $ 0.52 $ 0.63 Number of common shares used in basic and diluted net earnings per share Basic 80.1 79.4 79.9 79.3 Diluted 92.4 93.0 91.9 92.7 The accompanying notes are an integral part of these consolidated financial statements. [3] Table of Contents EASTMAN KODAK COMPANY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (in millions) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 NET EARNINGS $ 26 $ 35 $ 58 $ 68 Other comprehensive loss, net of tax: Currency translation adjustments ( 6 ) ( 11 ) ( 12 ) ( 12 ) Pension and other postretiremen

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 Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 a

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