Eastman Kodak Company

Good afternoon, and thank you for standing by. Welcome to the Eastman Kodak first quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Anthony Redding. Please go ahead.

Thank you, and good afternoon, everyone. I am Anthony Redding. Eastman Kodak Company's Chief Compliance Officer. Welcome to Kodak's first quarter 2023 earnings call. At 4.15 p.m. this afternoon, Kodak filed its Form 10-Q and issued its release on financial results for the first quarter of 2023. 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 Kodak's 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 CODAX 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. 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 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 Chief Executive Officer, and Dave Bullwinkle, Chief Financial Officer of Eastman 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 Continenza. Thank you.

Welcome, everyone. Thank you for joining the first quarter 2023 investor call for Kodak. Turning to slide five. I am pleased with the improvement reported in the company's results for the first quarter 2023. We continued to build momentum, generating smart revenues and cash and improving our gross profit in an extremely challenging business environment. It is important to note that the progress we have made didn't happen overnight. It is the result of investing and executing on our long-term plan, staying focused, on our core competencies of advanced materials and print. Over the last four years, we've innovated and built a foundation for growth and profitability. We have strengthened our financial position and focused on driving smart revenue in our core businesses. By realizing the value of our offerings, the successful implementation of the strategy allows us to continue investing and monetizing our new growth initiatives. We continue to invest in previously announced long-term growth initiatives in our advanced materials and chemical group, including layering and coating substrates for EV batteries and energy storage, and the controlled introduction of our Codelux light-blocking fabric business. We are starting to see revenue for the businesses. In addition, we continue to see growing demand in our film business. We have invested in a significant infrastructure upgrade. including full implementation of Salesforce and our SAP ERP system that has made us materially better in terms of efficiency and reporting. We must be as efficient as possible, eliminate all waste, and increase our productivity to meet our customers' needs and stay profitable in challenging environments. We continue to invest in our core print business, especially digital print. We have launched to groundbreaking inkjet presses, the Prosper Ultra 520 press, which rivals Offset for quality and productivity, and the Prosper 7000 Turbo press, which is the world's fastest inkjet press. In addition, we have launched our Chrotochrome inkjet inks, which are the gold standard for color for many decades. You will hear more next quarter about the rollout strategy of these products, which is designed to maximize productivity, and value for our customers. Most importantly, we continue to execute on our go-to-market strategy, staying focused on our customers and developing solutions that address their challenges and create new opportunities. We put our customers first because we win only when they win. Turning to slide six, performance highlights for the first quarter include revenues were $278 million, a decline of 12 million or 4% compared to the prior year, adjusting for unfavorable impact of foreign exchange of 10 million, revenues decreased by 2 million or roughly flat. Revenue was slightly impacted also by our decision to suspend manufacturing and sales of our EPS line due to increased costs and supply chain issues. This decision does not in any way affect our ability or commitment to continue to service all existing EPS presses in the field. There was a trade-off here. We increased our gross profit by $17 million, or 52%, as we increased efficiency in our supply chain and our operations. We continue to focus on smart revenue over growth. What does that mean? We focus on things that fall within our core competencies and things that we can execute better than others. And we know that we can do a good job for our customers and help them achieve greater profitability. Our gross profit percentage was 18% in quarter one, 2023, compared to 11% in the prior year quarter, which is partially attributable to the investment we've made in infrastructure and streamlining our operations. I'm proud to say as a result of our execution and a lot of hard work by the team, Codex has generated 8 million of cash in the first quarter, 2023, compared to a decrease of 53 million in the first quarter of 2022. These improvements are encouraging, but we understand that we are not out of the woods. We have a lot of work still to do in these very difficult times. We intend to continue to execute our strategic plan with the goal of driving smart revenue in the near term and sustainable, profitable growth in the future. I will now turn over to Dave to discuss the first quarter 2023 financial results.