Eastman Kodak reported second quarter 2023 revenue of $US295 million, down 8% on Q2 2022, as gross profit jumped by 24% to $US63 million ($A97m).
Kodak's Prosper 7000 Turbo is a CMYK inkjet press capable of up to 410 mpm
"We are concentrating on what we do best": Jim Continenza, CEO Kodak“Kodak delivered strong results in the second quarter, once again increasing our gross profit and Operational EBITDA year over year despite challenging business conditions affecting the markets we serve,” said Jim Continenza, Kodak’s executive chairman and CEO.
“A number of factors have contributed to our success: a strong leadership team, dedicated employees and a clearly defined long-term plan focused on driving innovation, productivity and smart revenue in our core businesses of print and advanced materials & chemicals.
“We are proud to be an industrial manufacturer and we are concentrating on what we do best. As part of the controlled introduction of our new inkjet presses, we placed our first two new machines during the quarter, one KODAK PROSPER ULTRA 520 Press and one PROSPER 7000 Turbo Press, and we expect them to be in production in the third quarter.
“We also continued to invest in our print business, acquiring Graphic Systems Services, Inc. (GSS), whose expertise and resources will help us provide our customers with more complete inkjet solutions. More recently, we proactively refinanced our term debt to strengthen our financial foundation and we announced a perpetual brand licensing agreement with EssilorLuxottica, a global vision care industry leader. Looking forward, we will continue to focus on executing our strategic plan and serving our customers, which is the key to building long-term value for our employees and shareholders.”
Second quarter 2023 highlights include:
Revenues were $295 million, a decline of $26 million or 8 percent compared to the same period in 2022. GAAP net income was $35 million for the quarter, compared with $20 million in Q2 2022, an increase of $15 million. Operational EBITDA for the second quarter 2023 was $22 million, compared with $11 million in the prior-year period. The increase was primarily driven by improved profitability related to pricing passthrough and improved operational efficiency, partially offset by continued global cost increases. The company ended the second quarter with a cash balance of $223 million, compared with $217 million on December 31, 2022, an increase of $6 million compared with a decrease of $73 million in the prior-year period. The improvement in cash of $79 million was primarily driven by changes in working capital strategies.
“Kodak improved its year-over-year cash performance for the first half of 2023,” said David Bullwinkle, Kodak’s CFO. “Our quarter-end balance of $223 million reflects a year-over-year improvement in cash flow from operations of $124 million for the first half of 2023. We also increased our year-over-year gross profit in Q2 for the third consecutive quarter while continuing to invest in print technology and the emerging businesses in our Advanced Materials & Chemicals group. For the second half of 2023 we’ll continue to execute our long-term strategic plan with an emphasis on driving innovation, productivity and smart revenue.”
