Eastman Kodak Company

Good day and thank you for standing by and welcome to Eastman Kodak Q2 2024 earnings conference call. At this time, our 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 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 second quarter 2024 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 2024. You may access the presentation and webcast for today's call at 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 Kodak's 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 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, Chief Financial Officer and Senior Vice President 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. Thank you.

Welcome, everyone, and thank you for joining the second quarter 2024 investor call for Eastman Kodak. We continue to be committed to executing our long-term plan. As a result, growth profit percentage continues to increase. We're getting leaner, investing in innovation, launching new products, focusing on smart revenue, and aligning with the right customers. I am pleased with Kodak's continuing progress in the second quarter of 2024. Gross profit percentage was 22% compared to 21% in the prior year quarter, the seventh consecutive year-over-year increase. This performance reflects growth in AMC and our commitment to improving our operational efficiencies, realizing the value of our offerings. Revenues decreased 28 million, or 9%, compared to the prior year quarter, but decreased only 24 million, or 8%, excluding foreign exchange. The decrease in revenue is intentional as we continue to invest in our long-term strategy. We are focused on aligning with the right customers with the right products and driving smart revenue at the most efficient way possible. Growth profit decreased 5 million, or 8%, compared to the prior year quarter, driven by higher cost of materials and other operating expenses. AMC is a very important part of our future. It leverages our unique strength in chemicals, layering, and coating. Kodak is currently seeing growth in revenues and key products in this area. We are investing in long-term advanced materials and chemicals opportunities that will set the foundation for our company for growth and profitability in the future. For example, our CGMP facility for manufacturing diagnostic test reagents is expected to begin production in 2025. We're excited about this opportunity. It's been a long time coming, and it's nice to see it coming to fruition. We are committed to film and continue to invest in manufacturing capacity to meet growing demand. I was pleased and thrilled to see the movie Twisters, which was shot on Kodak Film, and The Bike Riders, two phenomenal films that are extremely entertaining, and I want to thank them for choosing Kodak. We also continue to invest across our complete print portfolio. This year, I was pleased to be at Drupal 2024, many years since the last one. We were able to showcase the Prosper Ultra 520. We did live demos, and we were packed. It was standing room only. I couldn't have been more pleased with how the product performed and the crowds that we had. We were able to leave Drupal with commitments for several 520s. We're in the progress of installing one today to one of our European customers. Kodak continues to innovate in traditional print. Some examples I'd like to give you is the enhanced release of our new Prinergy software, also the Sonora Extra Next Generation plays, and several new CTPs. All of them were showcased at Drupal. Now I'll turn over to Dave to discuss the financial results.