Eastman Kodak Company

Thank you for standing by and welcome to the Eastman Kodak Q3 2022 earnings conference call. At this time, all participants are on a listen-only mode. As a reminder, today's call is being recorded. I will now turn the conference over to your host, Mr. Paul Dills. Sir, you may begin.

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 third 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 third quarter of 2022. You may access the presentation and the 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 Codex filings with the U.S. Securities and Exchange Commission from time to time. There may be other factors that may cause Kodak's actual results to differ materially from the forward looking statements. All forward looking statements attributable to Kodak 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. Kodak 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 an unanticipated event. 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 GAAP measures have been provided with the release and within the presentation on our website in our Investor Center at investor.codec.com. Speakers on today's call, are Jim Continenza, Kodak's chief executive officer and chairman, and David Bowen-Winkle, chief financial officer of Kodak. 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. Thank you for joining the third quarter investor call for Kodak. Please turn to slide five. Starting with the company's financial performance, revenues in the second quarter increased $2 million or 1% compared to prior year quarter. When excluding the impact of foreign exchange, revenue increased 24 million or 8% compared to the prior year quarter. We have recognized six straight quarters of year-over-year revenue growth, which demonstrates our commitment to a customer-first model and our leadership team's experience in managing through challenging business environments. Despite the current economic challenges, our gross profit percentages remained relatively flat compared to the second quarter and has increased from the first quarter. As previously discussed in the second quarter, we exercised our right to draw an additional $50 million term loan pursuant to the term loan agreement established last year with Kennedy Lewis Investment Management. The proceeds were partially used to fund an investment in Wildcat Discovery Technologies, a private technology company that is developing a breakthrough EV and energy storage supercell. We continue to navigate through the ongoing global impact associated with COVID-19 pandemic. the war in Ukraine, inflation, unfavorable exchange rates, and other global events. Like many other companies, Kodak is experiencing supply chain disruption, shortages in materials and labor, and increased costs of labor, materials, and distribution. We have implemented numerous measures to mitigate these challenges, including increasing safety stock and implementing pricing action. Turning to slide six, our long-term strategy continues to focus on our core competencies in print, advanced materials, and chemicals, and driving smart revenue in areas with best potential for growth. We continue to invest in innovation and have launched two key print products, which are industry-leading digital technologies. First is the Prosper Ultra 520 Digital Press. which delivers offset like print quality at a production speed. And we took the original Prosper and made it into a turbo. So we call it the Prosper Turbo 7000 digital press. It is the world's fastest inkjet press. Groundbreaking products like these have helped us bring digital print to the tipping point where it should be considered as a compliment to traditional print. Said differently, it's not digital or traditional. It's digital and traditional. They need to work together and they should mitigate each other's risk and bring additional flexibility and profitability to your business. Another key factor to digital print is the carbon footprint associated with it. If you look at traditional print, the amount of chemicals, aluminum, transportation, harvesting, yielding, the carbon footprint is quite large. With digital print, it's much smaller and we will continue to support a much smaller carbon footprint. As discussed on prior calls, we are also working on new growth initiatives within our advanced materials and chemicals group to leverage our deep experience in chemistry and strength in coating, layering, roll-to-roll manufacturing that comes from over a century of experience in film manufacturing. I would now like to turn this over to Dave to discuss the third quarter 2022 financial results.