Kodak Reports Q3 2024 Results, Asset Sale Gain
Ticker: KODK · Form: 10-Q · Filed: Nov 12, 2024 · CIK: 31235
Sentiment: neutral
Topics: asset-sale, financial-results, property-costs
Related Tickers: EKC
TL;DR
Kodak Q3 2024: $17M asset sale gain, costs for unused property, foreign tax refund interest. EKC.
AI Summary
Eastman Kodak Co. (EKC) reported its Q3 2024 results, noting a $17 million gain from the sale of certain U.S. assets in the first quarter of 2024. The company's filing details costs associated with maintaining unused properties and includes a prior year adjustment of $9 million in interest income from a foreign governmental refund. The report covers the period ending September 30, 2024.
Why It Matters
This filing provides insight into Kodak's financial performance and strategic asset management, impacting investor understanding of the company's current operational and financial health.
Risk Assessment
Risk Level: medium — The filing details asset sales and costs related to underutilized properties, which can indicate potential financial strain or strategic shifts.
Key Numbers
- $17 million — Asset Sale Gain (Recognized in Q1 2024 from sale of U.S. assets.)
- $9 million — Interest Income (Included in Q1 2023 from a foreign governmental refund.)
Key Players & Entities
- EASTMAN KODAK CO (company) — Filer
- 20240930 (date) — Reporting Period End Date
- 20241112 (date) — Filing Date
- $17 million (dollar_amount) — Gain from asset sale in Q1 2024
- $9 million (dollar_amount) — Interest income in Q1 2023
FAQ
What was the nature of the assets sold by Eastman Kodak in the U.S. in Q1 2024?
The filing states that Kodak sold 'certain assets in the U.S.' and recognized a gain of $17 million, but does not specify the nature of these assets.
What are the costs associated with maintaining unused properties for Kodak?
These costs consist of third-party expenses like security, maintenance, and utilities for land and buildings not currently used in Kodak operations, net of any rental income.
What was the reason for the $9 million interest income in the first quarter of 2023?
The interest income was associated with a refund received from a governmental authority outside the U.S. related to previously held guarantees for tax disputes.
What is the fiscal year end for Eastman Kodak Co.?
Eastman Kodak Co.'s fiscal year ends on December 31.
What is the filing date for this 10-Q report?
This 10-Q report was filed on November 12, 2024.
Filing Stats: 4,842 words · 19 min read · ~16 pages · Grade level 19.7 · Accepted 2024-11-12 16:13:22
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
- ekc20240930_10q.htm (10-Q) — 2247KB
- ex_715766.htm (EX-31.1) — 13KB
- ex_715767.htm (EX-31.2) — 13KB
- ex_715768.htm (EX-32.1) — 6KB
- ex_715769.htm (EX-32.2) — 6KB
- 0001437749-24-034553.txt ( ) — 9741KB
- kodk-20240930.xsd (EX-101.SCH) — 65KB
- kodk-20240930_cal.xml (EX-101.CAL) — 60KB
- kodk-20240930_def.xml (EX-101.DEF) — 447KB
- kodk-20240930_lab.xml (EX-101.LAB) — 342KB
- kodk-20240930_pre.xml (EX-101.PRE) — 476KB
- ekc20240930_10q_htm.xml (XML) — 2210KB
— 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 Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Revenues Sales $ 221 $ 220 $ 654 $ 688 Services 40 49 123 154 Total revenues 261 269 777 842 Cost of revenues Sales 185 183 534 571 Services 31 36 91 108 Total cost of revenues 216 219 625 679 Gross profit 45 50 152 163 Selling, general and administrative expenses 44 40 136 114 Research and development costs 8 7 25 25 Restructuring costs and other 1 1 6 7 Other operating income, net — — ( 16 ) — (Loss) earnings from operations before interest expense, pension income excluding service cost component, loss on extinguishment of debt, other (income) charges, net and income taxes ( 8 ) 2 1 17 Interest expense 14 14 44 36 Pension income excluding service cost component ( 42 ) ( 41 ) ( 124 ) ( 122 ) Loss on extinguishment of debt — 27 — 27 Other (income) charges, net ( 1 ) 2 ( 2 ) ( 2 ) Earnings from operations before income taxes 21 — 83 78 Provision (benefit) for income taxes 3 ( 2 ) 7 8 NET EARNINGS $ 18 $ 2 $ 76 $ 70 Basic net earnings per share attributable to Eastman Kodak Company common shareholders $ 0.16 $ — $ 0.73 $ 0.68 Diluted net earnings per share attributable to Eastman Kodak Company common shareholders $ 0.15 $ — $ 0.67 $ 0.64 Number of common shares used in basic and diluted net earnings per share Basic 80.3 79.5 80.0 79.3 Diluted 92.7 79.5 92.1 90.5 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 Ende
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 No accounting pronouncements were 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 and to