Eastman Kodak Company

Ladies and gentlemen, thank you for standing by and welcome to the Eastman Kodak second quarter 2020 conference call. At this time, all participants are in a listen-only mode. If you require any operator assistance, please press star zero. It is now my pleasure to introduce Paul Dills.

Thank you and good afternoon, everyone. I am Paul Dills, Eastman Kodak Company's Chief Tax Officer and Director of Investor Relations. Welcome to Kodak's second quarter 2020 earnings call. At 4.15 p.m. this afternoon, Kodak filed its second quarter 2020 Form 10-Q and issued its release on financial results for the second quarter. You may access the presentation and webcast for today's call on our Investor Center at investor.kodak.com. During today's call, we will be making certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. All forward-looking statements are based upon CODAX expectations and various assumptions. Future events or results may differ from those anticipated or expressed in the 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, uncertainties, and other factors described in more detail in CODAC's filings with the U.S. Securities and Exchange Commission from time to time. There may be other factors that may cause CODAC's actual results to differ materially from the forward-looking statements. All forward-looking statements attributable to CODAC or persons acting on its behalf apply only as of the date of this presentation and are expressly qualified in their entirety by the cautionary statements included or referenced in this presentation. CODAC undertakes no obligation to update or revise forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. In addition, the release just issued and the presentation provided contain certain measures that are deemed non-GAAP measures. Reconciliation is most directly comparable GAAP measures have been provided with the release and within the presentation on our website in our investor center at investor.kodak.com. Speakers on today's call are Jim Continenza, Kodak's Executive Chairman, and David Bowenkel, Chief Financial Officer of Kodak. Before handing the call over to Jim, I would like to acknowledge our announcement last week regarding the appointment of a special committee of independent directors to conduct an internal review of Kodak's activity in connection with the letter of interest from the U.S. International Development Finance Corporation. In light of this internal review, we cannot discuss the potential loan or the related matters beyond the details provided on this call. We will not be holding a formal Q&A during today's call. As always, the investor relations team is available for follow-up. I will now turn the call over to Jim.

Welcome, everyone, and thank you for joining the second quarter investor call for Kodak. Beginning on slide four, second quarter results were impacted by COVID-19 as the pandemic continued to present challenges for the company around the world. Dave will provide more details on the second quarter results and year-to-date shortly. As an essential business, we have remained operational. We put health and safety of our employees first. by enforcing social distancing measures requiring masks and providing hand sanitizers to all essential workers. I am grateful for the dedication and flexibility of the whole organization has shown at these unprecedented conditions. In addition, as a company with experience in applied materials and chemicals, we have challenged ourselves to flex our manufacturing capabilities in order to serve our country and all of the essential workers on the front line of the pandemic. We will continue to produce our traditional Kodak products. We have also leveraged our facilities to manufacture face shields, IPA, and film for printed circuit board that are used in ventilators. We have continued to see the benefit of the new organizational structure that we implemented in 2019, the Web Kodak Customer First Model. In the way we go to market, The way our customers have reacted with us, we are more nimble, we are functional, accountable, and measurable, which ultimately results in being a more reliable partner for our customers. In addition, the steps we took in 2019 to strengthen our balance sheet have provided us with financial flexibility to navigate throughout the pandemic. Recent conversion of the $95 million in convertible notes further strengthens the balance sheet. Next, I want to take a moment to discuss the potential loan from the U.S. government. Please keep in mind that the announcement two weeks ago was only a letter of interest, which was signed for a potential loan. More work is necessary to move this forward. The potential loan announced is about the ability to produce heat starting materials and active pharmaceutical ingredients. Again, we call them KSM and APIs for essential generic drugs in this country and on a much larger scale. Kodak is an iconic American brand with a heritage and innovation including over 20,000 patents throughout its history. We have the potential to expand our production capabilities and capacity. Our existing chemical manufacturing operations is located in Eastman Business Park. a 1200-acre city within a city in Rochester, New York, which is uniquely suited for chemical development and production. Our vast infrastructure of Eastman Business Park includes a wide variety of industrial utilities, including steam, gas, electric, wastewater treatment, access to 13 miles of rail in the park, as well as fire safety and security services. It's an incredible facility. Kodak also possesses deep expertise with over 100 years of chemical manufacturing and experience manufacturing unregulated KSMs, critical components in pharmaceutical production, for the past few years. Importantly, we appreciate and support the DFC's decision to wait clarification before moving forward with the loan process. The proposed expansion of our chemical manufacturing operations to supply pharmaceutical needs does not affect our existing business. We remain 100% committed to our core business of print advanced materials and chemicals, including the continuing manufacturing of unregulated KSMs and investing in groundbreaking innovations to meet our customer needs. Turning to slide five, reinforcing this commitment during the quarter, the company announced several new products and enhancements to existing products, which support our vision for the print and digital packaging business. The product announcements include enhancements to our industry-leading Kodak Sonora plates, two new Kodak Magnus plate setters, which will be the world's fastest CTP devices, Kodak Prinergy on-demand workflow software, our first cloud-based platform. A joint development machine with Uteco called the Uteco Sapphire Digital Packaging Press, known as the Evo Wide Press, powered by Kodak UltraStream continuous inkjet technology. A revolutionary new Prosper Ultra 520 inkjet press that will redefine what's possible in terms of quality, productivity, and cost for digital printing. I will now turn it over to Dave to discuss the 2020 second quarter and first half financial results.