Eastman Kodak Company

Thank you for standing by and welcome to the Eastman Kodak Q2 2022 earnings conference call. At this time, all participants are on a listen-only mode. Please be advised that today's conference call is being recorded. I will now turn the conference over to your host, Mr. 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 2022 earnings call. At 4.15 p.m. this afternoon, Kodak filed its Form 10-Q and issued its release on financial results for the second quarter of 2022. 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 Codex 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 these forward-looking statements include, among others, the risk 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 contains certain measures that are deemed non-GAAP measures, reconciliations to the most Directly comparable gap measures have been provided with the release and within the presentation on our website, InterInvestorCenter at Investor.CODAC.com. Speakers on today's call are Jim Continenza, CODAC's Chief Executive Officer and Chairman, and David Bowenkel, Chief Financial Officer of CODAC. 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. Turning to slide five, revenue in the second quarter increased $30 million, or 10%, compared to the prior year quarter, which demonstrates our commitment to one Kodak, customer first, customer support and satisfaction, and our firm control of our products. Pricing and supply chain continued to be challenging in this economic environment. When excluding the impact of foreign exchange, revenue increased 49 million or 17 percent compared to the prior year quarter. Despite the current economic challenges, our gross profit percentage increased from 11 percent in the first quarter of this year to 16 percent in the second quarter. which reflects the execution of our strategy and the controls we initiated to mitigate the challenging economic environment. On June 15, we exercised our right to draw down an additional $50 million term loan pursuant to the term loan credit agreement established last year with Kennedy Lewis Investment Partners. They will provide more specific details shortly. However, the net proceeds received will be used to fund ongoing investments. We continue to navigate through the ongoing global impact associated with COVID-19 pandemic, the war in Ukraine, and other global events. Like many other companies, Kodak is experiencing supply chain disruptions, shortages of materials and labor, and increased cost of labor, materials, and distribution. We have implemented numerous measures to mitigate these challenges, including increasing safety stock and implementing pricing actions. Our long-term strategy continues to focus on our core competencies in print, advanced materials, and chemicals, provide environmentally sustainable solutions, turning the business to focus on innovation, growth, and profitability. Turning to slide six. We continue to invest in innovation and bring new products to market in the second quarter by leveraging our expertise in the print industry. Kodak took another step forward in our plan to establish Kodak as a digital powerhouse in the print industry with the introduction of the world's fastest inkjet press, the Kodak Prosper 7000 TurboPress, brought to market in less than 12 months from conception to commercialization. We launched the Kodak Ascend Digital Press, which is aimed at the growing retail point of purchase and small packaging market. The Kodak Ascend Digital Press is the first electrophotographic press offering greater production speed and sheet length and offers an environmentally friendly and cost-effective print solution. We're excited to announce that Kodak and Utec will jointly place the first Utecto Sapphire Evo Wide Press, powered by Kodak's UltraStream inkjet technology. This system is designed specifically to meet the customer's needs of the flexible packaging segment, allowing for faster turnaround and variable print capabilities. We have also officially launched the Kodak Prosper Ultra 520 Digital Press, which is powered by groundbreaking Kodak UltraStream ink technology. This digital web press provides image quality that rivals offset at speeds faster than competitive solutions using sustainable water-based Kodak inks. By utilizing UltraStream technology, the Prosper 520 Digital Press offers our customers the ability to mitigate supply chain risk of aluminum plates. As discussed in our prior calls, we are working on new initiatives within our AMC group to leverage our deep expertise in chemistry and strengths in layering and coating on multiple substrates that comes from over a century of expertise in film manufacturing. In July, Kodak announced that it has taken a minority stake in Wildcat Discovery Technologies Inc. Wildcat is a private technology company that uses proprietary methods to research and develop new battery materials and is developing a breakthrough EV supercell designed to provide a greater than 90% improvement in energy density over today's best batteries. Kodak will provide coding and engineering services in collaboration with Wildcat to develop and scale built coding technologies, which are critical for the safety and reliability of the next generation of EV and energy storage battery technology. The strategy we put in place three years ago continues to drive positive results and support of our plan to turn around one of the world's most iconic companies. I will now turn it over to Dave to discuss second quarter 2022 financial results.