Kodak Reports Full-Year 2021 Financial Results
Eastman Kodak Company (NYSE: KODK) reported its financial results for 2021, showing consolidated revenues of $1.150 billion, up from $1.029 billion in 2020. The company achieved a GAAP net income of $24 million, reversing a $541 million loss in the prior year. Operational EBITDA improved to $11 million from a negative $1 million in 2020. Kodak's cash balance stood at $362 million, reflecting a $166 million increase year-over-year attributed to financing transactions. The CEO highlighted significant revenue growth across all segments for the first time in years.
- Consolidated revenues increased by $121 million year-over-year.
- GAAP net income of $24 million contrasts sharply with a $541 million loss in 2020.
- Operational EBITDA improved to $11 million from negative $1 million the previous year.
- Cash balance increased to $362 million, showing strong financial positioning.
- None.
Full-year 2021 highlights include:
-
Consolidated revenues of
$1.15 0 billion$1.02 9 billion -
GAAP net income of
$24 million $541 million -
Operational EBITDA of
$11 million $1 million -
A year-end cash balance of
$362 million $196 million
“Kodak continued to navigate through an unusually challenging business environment in 2021 and delivered revenue growth in all our segments for the first time in years,” said
For the full year ended
“The Company ended 2021 with
Revenue and Operational EBITDA by Reportable Segment FY 2021 vs. FY 2020 |
|||||||||||||||||||
| ($ millions) | |||||||||||||||||||
| FY 2021 Actuals | Traditional Printing |
Digital Printing |
Advanced Materials & Chemicals |
Brand | Total | ||||||||||||||
| Revenue | $ |
659 |
|
$ |
249 |
|
$ |
212 |
|
$ |
15 |
$ |
1,135 |
|
|||||
| Operational EBITDA * | $ |
9 |
|
$ |
(5 |
) |
$ |
(6 |
) |
$ |
13 |
$ |
11 |
|
|||||
| FY 2020 Actuals | Traditional Printing |
Digital Printing |
Advanced Materials & Chemicals |
Brand | Total | ||||||||||||||
| Revenue | $ |
592 |
|
$ |
241 |
|
$ |
172 |
|
$ |
13 |
$ |
1,018 |
|
|||||
| Operational EBITDA * | $ |
21 |
|
$ |
(10 |
) |
$ |
(23 |
) |
$ |
11 |
$ |
(1 |
) |
|||||
| FY 2021 vs. FY 2020 Actuals B/(W) |
Traditional Printing |
Digital Printing |
Advanced Materials & Chemicals |
Brand | Total | ||||||||||||||
| Revenue | $ |
67 |
|
$ |
8 |
|
$ |
40 |
|
$ |
2 |
$ |
117 |
|
|||||
| Operational EBITDA * | $ |
(12 |
) |
$ |
5 |
|
$ |
17 |
|
$ |
2 |
$ |
12 |
|
|||||
| FY 2021 Actuals on constant currency ** vs. FY 2020 Actuals B/(W) |
Traditional Printing |
Digital Printing |
Advanced Materials & Chemicals |
Brand | Total | ||||||||||||||
| Revenue | $ |
56 |
|
$ |
4 |
|
$ |
39 |
|
$ |
2 |
$ |
101 |
|
|||||
| Operational EBITDA * | $ |
(8 |
) |
$ |
3 |
|
$ |
16 |
|
$ |
2 |
$ |
13 |
|
|||||
* Total Operational EBITDA is a non-GAAP financial measure. The reconciliation between GAAP and non-GAAP measures is provided in Appendix A of this press release.
** The impact of foreign exchange represents the 2021 foreign exchange impact using average foreign exchange rates for the twelve months ended
About
Cautionary Statement Regarding Forward-Looking Statements
This press release includes “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning Kodak’s plans, objectives, goals, strategies, future events, future revenue or performance, capital expenditures, liquidity, investments, financing needs and business trends and other information that is not historical information. When used in this press release, the words “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “predicts,” “forecasts,” “strategy,” “continues,” “goals,” “targets” or future or conditional verbs, such as “will,” “should,” “could,” or “may,” and similar words and expressions, as well as statements that do not relate strictly to historical or current facts, are intended to identify forward-looking statements. All forward-looking statements, including management’s examination of historical operating trends and data, are based upon Kodak’s current expectations and assumptions. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or those expressed in or implied by such forward-looking statements. Important factors that could cause actual events or results to differ materially from the forward-looking statements include, among others, the risks and uncertainties described in more detail in Kodak’s Annual Report on Form 10-K for the year ended
- Kodak’s ability to improve and sustain its operating structure, cash flow, profitability and other financial results;
- Kodak’s ability to achieve strategic objectives, cash forecasts, financial projections, and projected growth;
- Kodak’s ability to achieve the financial and operational results contained in its business plans;
- Kodak’s ability to comply with the covenants in its various credit facilities;
- Kodak’s ability to fund continued investments, capital needs and restructuring payments and service its debt and Series B Preferred Stock and Series C Preferred Stock;
-
The performance by third parties of their obligations to supply products, components or services to
Kodak and Kodak’s ability to address supply chain disruptions and continue to obtain raw materials and components available from single or limited sources of supply, which may be adversely affected by the COVID-19 pandemic; - The impact of the global economic environment or medical epidemics such as the COVID-19 pandemic; including the restrictions and other actions taken in response to the COVID-19 pandemic, and Kodak’s ability to effectively mitigate or recoup associated increased costs of materials, labor, shipping and operations;
-
The impact of the investigations, litigation and claims arising out of the circumstances surrounding the announcement on
July 28, 2020 , by theU.S. International Development Finance Corporation of the signing of a non-binding letter of interest to provide a subsidiary ofKodak with a potential loan to support the launch of an initiative for the manufacture of pharmaceutical ingredients for essential generic drugs; -
The impacts of the war in
Ukraine and the international response thereto on our business and operations, including the cost of and availability of aluminum and other raw materials and components, shipping costs, transit times and energy costs; - Changes in foreign currency exchange rates, commodity prices, interest rates and tariff rates;
- Kodak’s ability to effectively anticipate technology and industry trends and develop and market new products, solutions and technologies, including products based on its technology and expertise that relate to industries in which it does not currently conduct material business;
- Kodak’s ability to effectively compete with large, well-financed industry participants;
- Continued sufficient availability of borrowings and letters of credit under Kodak’s asset based credit facility and letter of credit facility, Kodak’s ability to obtain additional financing if and as needed and Kodak’s ability to provide or facilitate financing for its customers;
- Kodak’s ability to effect strategic transactions, such as acquisitions, strategic alliances, divestitures and similar transactions, or to achieve the benefits sought to be achieved from such strategic transactions; and
- The potential impact of force majeure events, cyber-attacks or other data security incidents that could disrupt or otherwise harm Kodak’s operations.
Future events and other factors may cause Kodak’s actual results to differ materially from the forward-looking statements. All forward-looking statements attributable to
APPENDICES
A. NON-GAAP MEASURES
In this full year 2021 financial results news release, reference is made to the following non-GAAP financial measures:
- Operational EBITDA; and
- Revenues and Operational EBITDA on a constant currency basis.
Kodak’s segment measure of profit and loss is an adjusted earnings before interest, taxes, depreciation and amortization (“Operational EBITDA”). Operational EBITDA represents the income from continuing operations before income taxes excluding earnings from discontinued operations, net of income taxes, loss on early extinguishment of debt, non-service cost components of pension and OPEB income; depreciation and amortization expense; restructuring costs and other; stock-based compensation expense; consulting and other costs; idle costs; other operating income, net; interest expense; and other (income) charges, net.
The change in revenues and Operational EBITDA on a constant currency basis, as presented in this financial results news release, is calculated by using average foreign exchange rates for the twelve months ended
The following table reconciles the most directly comparable GAAP measure of Net Income (Loss) to Operational EBITDA for the twelve months ended
| (in millions) | |||||||||||
| FY 2021 | FY 2020 | $ Change | |||||||||
| Net Income (Loss) | $ |
24 |
|
$ |
(541 |
) |
$ |
565 |
|
||
| Other |
|
(2 |
) |
|
(1 |
) |
|
(1 |
) |
||
| Depreciation and amortization |
|
31 |
|
|
37 |
|
|
(6 |
) |
||
| Restructuring costs and other (1) |
|
6 |
|
|
17 |
|
|
(11 |
) |
||
| Stock based compensation |
|
7 |
|
|
15 |
|
|
(8 |
) |
||
| Consulting and other costs (2) |
|
19 |
|
|
9 |
|
|
10 |
|
||
| Idle costs (3) |
|
2 |
|
|
3 |
|
|
(1 |
) |
||
| Other operating income, net, excluding income from transition services agreement (4) |
|
(6 |
) |
|
(7 |
) |
|
1 |
|
||
| Interest expense (1) |
|
33 |
|
|
12 |
|
|
21 |
|
||
| Pension income excluding service cost component (1) |
|
(102 |
) |
|
(98 |
) |
|
(4 |
) |
||
| Loss on early extinguishment of debt (1) |
|
- |
|
|
2 |
|
|
(2 |
) |
||
| Other (income) charges, net (1) |
|
(5 |
) |
|
386 |
|
|
(391 |
) |
||
| Earnings from discontinued operations, net of income taxes |
|
- |
|
|
(3 |
) |
|
3 |
|
||
| Provision for income taxes (1) |
|
4 |
|
|
168 |
|
|
(164 |
) |
||
| Operational EBITDA | $ |
11 |
|
$ |
(1 |
) |
$ |
12 |
|
||
| Impact of foreign exchange (5) |
|
1 |
|
|
1 |
|
|||||
| Operational EBITDA on a constant currency basis | $ |
12 |
|
$ |
(1 |
) |
$ |
13 |
|
||
Footnote Explanations:
| (1) | As reported in the Consolidated Statement of Operations. |
|
| (2) | Consulting and other costs are professional services and internal costs associated with certain corporate strategic initiatives, investigations and litigation. |
|
| (3) |
Consists of third party costs such as security, maintenance, and utilities required to maintain land and buildings in certain locations not used in any |
|
| (4) |
|
|
| (5) |
The impact of foreign exchange is calculated by using average foreign exchange rates for the twelve months ended |
B. FINANCIAL STATEMENTS
| CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||
| (in millions) | ||||||||
| Twelve Months Ended |
||||||||
2021 |
2020 |
|||||||
| Revenues | ||||||||
| Sales | $ |
925 |
|
$ |
806 |
|
||
| Services |
|
225 |
|
|
223 |
|
||
| Total revenues |
|
1,150 |
|
|
1,029 |
|
||
| Cost of revenues | ||||||||
| Sales |
|
830 |
|
|
743 |
|
||
| Services |
|
156 |
|
|
151 |
|
||
| Total cost of revenues |
|
986 |
|
|
894 |
|
||
| Gross profit |
|
164 |
|
|
135 |
|
||
| Selling, general and administrative expenses |
|
177 |
|
|
172 |
|
||
| Research and development costs |
|
33 |
|
|
34 |
|
||
| Restructuring costs and other |
|
6 |
|
|
17 |
|
||
| Other operating income, net |
|
(6 |
) |
|
(14 |
) |
||
| Loss from continuing operations before interest expense, pension income excluding service cost component, loss on early extinguishment of debt, other (income) charges, net and income taxes |
|
(46 |
) |
|
(74 |
) |
||
| Interest expense |
|
33 |
|
|
12 |
|
||
| Pension income excluding service cost component |
|
(102 |
) |
|
(98 |
) |
||
| Loss on early extinguishment of debt |
|
— |
|
|
2 |
|
||
| Other (income) charges, net |
|
(5 |
) |
|
386 |
|
||
| Earnings (loss) from continuing operations before income taxes |
|
28 |
|
|
(376 |
) |
||
| Provision for income taxes |
|
4 |
|
|
168 |
|
||
| Earnings (loss) from continuing operations |
|
24 |
|
|
(544 |
) |
||
| Earnings from discontinued operations, net of income taxes |
|
— |
|
|
3 |
|
||
| Net income (loss) | $ |
24 |
|
$ |
(541 |
) |
||
The notes accompanying the financial statements contained in the Company’s Annual Report on Form 10-K for the year ended |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||||||||
| (in millions) | ||||||||
2021 |
2020 |
|||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ |
362 |
|
$ |
196 |
|
||
| Trade receivables, net of allowances of |
|
175 |
|
|
177 |
|
||
| Inventories, net |
|
219 |
|
|
206 |
|
||
| Other current assets |
|
49 |
|
|
46 |
|
||
| Current assets held for sale |
|
2 |
|
|
2 |
|
||
| Total current assets |
|
807 |
|
|
627 |
|
||
| Property, plant and equipment, net of accumulated depreciation |
|
140 |
|
|
152 |
|
||
|
12 |
|
|
12 |
|
|||
| Intangible assets, net |
|
34 |
|
|
39 |
|
||
| Operating lease right-of-use assets |
|
47 |
|
|
48 |
|
||
| Restricted cash |
|
54 |
|
|
53 |
|
||
| Pension and other postretirement assets |
|
1,022 |
|
|
262 |
|
||
| Other long-term assets |
|
55 |
|
|
55 |
|
||
| TOTAL ASSETS | $ |
2,171 |
|
$ |
1,248 |
|
||
| LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY | ||||||||
| Accounts payable, trade | $ |
153 |
|
$ |
118 |
|
||
| Short-term borrowings and current portion of long-term debt |
|
1 |
|
|
2 |
|
||
| Current portion of operating leases |
|
13 |
|
|
12 |
|
||
| Other current liabilities |
|
142 |
|
|
164 |
|
||
| Total current liabilities |
|
309 |
|
|
296 |
|
||
| Long-term debt, net of current portion |
|
253 |
|
|
17 |
|
||
| Pension and other postretirement liabilities |
|
382 |
|
|
406 |
|
||
| Operating leases, net of current portion |
|
45 |
|
|
49 |
|
||
| Other long-term liabilities |
|
205 |
|
|
212 |
|
||
| Total liabilities |
|
1,194 |
|
|
980 |
|
||
| Commitments and Contingencies (note 11) | ||||||||
| Redeemable, convertible preferred stock, no par value, |
|
196 |
|
|
191 |
|
||
| Equity | ||||||||
| Common stock, |
|
— |
|
|
— |
|
||
| Additional paid in capital |
|
1,166 |
|
|
1,152 |
|
||
|
(10 |
) |
|
(9 |
) |
|||
| Accumulated deficit |
|
(596 |
) |
|
(620 |
) |
||
| Accumulated other comprehensive income (loss) |
|
221 |
|
|
(446 |
) |
||
| Total shareholders' equity |
|
781 |
|
|
77 |
|
||
| TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY | $ |
2,171 |
|
$ |
1,248 |
|
||
The notes accompanying the financial statements contained in the Company’s Annual Report on Form 10-K for the year ended |
| CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
| (in millions) | ||||||||
| Twelve Months Ended | ||||||||
2021 |
2020 |
|||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ |
24 |
|
$ |
(541 |
) |
||
| Adjustments to reconcile to net cash used in operating activities: | ||||||||
| Depreciation and amortization |
|
31 |
|
|
37 |
|
||
| Pension and other postretirement income |
|
(83 |
) |
|
(77 |
) |
||
| Change in fair value of the Preferred Stock and Convertible Notes embedded derivatives |
|
(7 |
) |
|
382 |
|
||
| Asset impairments |
|
— |
|
|
3 |
|
||
| Stock based compensation |
|
7 |
|
|
15 |
|
||
| Non-cash changes in workers' compensation and postemployment reserves |
|
(4 |
) |
|
4 |
|
||
| Net loss (gain) on sales of assets |
|
1 |
|
|
(10 |
) |
||
| Loss on early extinguishment of debt |
|
— |
|
|
2 |
|
||
| (Benefit) provision for deferred income taxes |
|
(1 |
) |
|
160 |
|
||
| (Increase) decrease in trade receivables |
|
(5 |
) |
|
33 |
|
||
| (Increase) decrease in inventories |
|
(19 |
) |
|
12 |
|
||
| Increase (decrease) in trade payables |
|
38 |
|
|
(36 |
) |
||
| Decrease in liabilities excluding borrowings and trade payables |
|
(29 |
) |
|
(26 |
) |
||
| Other items, net |
|
- |
|
|
7 |
|
||
| Total adjustments |
|
(71 |
) |
|
506 |
|
||
| Net cash used in operating activities |
|
(47 |
) |
|
(35 |
) |
||
| Cash flows from investing activities: | ||||||||
| Additions to properties |
|
(21 |
) |
|
(17 |
) |
||
| Net proceeds from sales of assets |
|
1 |
|
|
2 |
|
||
| Net proceeds from return on equity investment |
|
— |
|
|
2 |
|
||
| Net cash used in investing activities |
|
(20 |
) |
|
(13 |
) |
||
| Cash flows from financing activities: | ||||||||
| Net proceeds from Term Loan Credit Agreement |
|
215 |
|
|
— |
|
||
| Net proceeds from Convertible Notes |
|
25 |
|
|
— |
|
||
| Net proceeds from Series C Preferred Stock |
|
99 |
|
|
— |
|
||
| Proceeds from sale of common stock |
|
10 |
|
|
— |
|
||
| Repurchase of Series A Preferred Stock |
|
(100 |
) |
|
— |
|
||
| Debt issuance costs |
|
(2 |
) |
|
— |
|
||
| Proceeds from stock option exercises |
|
— |
|
|
33 |
|
||
| Preferred stock cash dividend payments |
|
(7 |
) |
|
(22 |
) |
||
|
(1 |
) |
|
— |
|
|||
| Repayment of other borrowings |
|
(1 |
) |
|||||
| Finance lease payments |
|
- |
|
|
(1 |
) |
||
| Net cash provided by financing activities |
|
238 |
|
|
10 |
|
||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(4 |
) |
|
4 |
|
||
| Net increase (decrease) in cash, cash equivalents and restricted cash |
|
167 |
|
|
(34 |
) |
||
| Cash, cash equivalents and restricted cash, beginning of period |
|
256 |
|
|
290 |
|
||
| Cash, cash equivalents and restricted cash, end of period | $ |
423 |
|
$ |
256 |
|
||
The notes accompanying the financial statements contained in the Company’s Annual Report on Form 10-K for the year ended |
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FAQ
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