Eastman Kodak Company

Good day and thank you for standing by. Welcome to the Eastman Kodak Q1 2024 earnings conference call. At this time, all participants are in the listen only mode. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, 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 2024 earnings call. At 415 p.m. this afternoon, Kodak filed its form 10Q and issued its release on financial results for the first quarter of 2024. 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 those 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 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 only apply 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 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 David Bullwinkle, Kodak's Chief Financial Officer. 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. Thank you.

Welcome, everyone, and thank you for joining the first quarter 2024 investor call for Eastman Kodak. I am very pleased with the company's performance for the first quarter of 2024. following our strong performance in 2023. We have been committed to executing our long-term plan for five years now. We have strengthened our balance sheet, refinanced our long-term debt. We're now generating cash, which will allow us to keep investing in our businesses, investing in innovation in print, advanced materials, and chemicals. I am pleased to announce that we have won our fourth Stevie Award, our third gold, for our strategy in digital print technology, improving operational efficiency and reducing cost of sale. We promised our customers we would become more efficient, and we have. We've delivered on the expectation that we set. We have achieved this by investing in new technologies such as IT systems, manufacturing equipment, and business controls, helping our print customers with the right solution from our unmatched portfolio. We continue to invest in a broad spectrum of solutions for print. Our focus is in meeting our customers' needs. We win only when our customers win. Now we are preparing for the next stage. Investing in long-term opportunities that leverage our unique strengths in chemicals, layering, and coating developed over 130 years of history that has set a foundation for our future as a growth company. Everyone, and I mean everyone at Kodak, is contributing to our success and excited about our future. I'd like to thank our employees for their competitive spirit and their winning attitude. Turning to slide five, I am pleased with our continued progress in the company's results for the first quarter of 2024. Here are some highlights for the quarter. In our print business, We continue to invest in innovation across our complete portfolio of offset and digital solutions. We are uniquely qualified to help customers navigate and deliver the right solutions based on their needs. We are showcasing a range of new products at Drupa, also running live demonstration of our Prosper Ultra 520 Press to demonstrate its unmatched combination of speed and quality. Last year, Kodak filed a petition with the U.S. Department of Commerce and the U.S. International Trade Commission requesting relief from unfair trade imports of plates from China and Japan. The Commerce Department has recently announced a preliminary finding in its countervailing duty and anti dumping investigations and the provisional duty on imports of plates manufactured in China and Japan are now being imposed. You can find more details in our recent 10Q filing. In our AMC business, we are committed to film and continue to invest in manufacturing capacity to meet growing demand in both still and motion picture film. We continue to expand OEM manufacturing for other types of film to help absorb fixed manufacturing costs in our factories. We will continue to invest in long-term growth initiatives that leverage our unique strength in chemicals, layering and coating, and vast manufacturing infrastructure. We are currently building out a CGMP clean lab along with our reagent facility currently under construction in Eastman Business Park in Rochester. Turning to slide six, performance highlights for the first quarter. Revenues decreased 29 million, approximately 10%, compared to the prior year quarter. The revenue decline is in line with Codex estimate of the decline of the overall market. Despite the revenue decline, gross profit decreased only $1 million, a negative 2% compared to the prior year quarter. Gross profit percentage increased quarter over quarter by approximately 10 percent, from 18 percent to 20 percent. This performance reflects growth in advanced materials and chemicals and our commitment to improving our operational efficiency and investing in automation in this difficult economic environment. Now I'll turn over to Dave to discuss the first quarter 2024 financial results.