Eastman Kodak Company

Good day and thank you for standing by. Welcome to the Eastman Kodak Third Quarter 2024 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 your first 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 third quarter 2024 earnings call. At 4.15 p.m. this afternoon, Kodak filed this Form 10-Q and issued its release on financial results for the third quarter of 2024. You can access the presentation and webcast for today's call on our website and 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 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 CODAC's filings with the US 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 the presentation and are expressly qualified in their entirety by the cautionary statements included or referenced in the 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 and our investor center at investor.codec.com. Reconciliations to the most directly comparable gap measures have been provided with the release and within the presentation on our website and our investor center at investor.codec.com. Speakers on today's call are Jim Continenza, Executive Chairman and Chief Executive Officer of Eastman Kodak, 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.

Welcome, everyone, and thank you for joining the third quarter 2024 investor call. We continue to be committed to executing our long-term plans. We continue to invest in innovation, increase operational efficiency, focus on smart revenue. When we say focus and invest in innovation, let's be clear, advanced material and print is what we do today. But inside of that is digital print, traditional print, advanced materials and chemicals, and film, motion picture film, Eastman Business Park, brand licensing, and other large investments have been building out of our CGMP clean lab, including the reagent facility. We're going to keep investing in battery technology. It's one of our core skill sets is substrate coating. So as I walk you through who we are, what we are, let's get into the numbers. Revenues of $261 million for the third quarter of 2024. versus $269 million for the third quarter of 2023. The decline has slowed and right where we expected it to be. So it's right within expectations. When we look at the gross profit, we're coming in the quarter at 17% in 2024 versus 19% for the third quarter of 2023. The numbers are strong. And let me tell you where we're at on this. When I look at the impact that we had on our plates business, from dumping from China and Japan over the last several years, it has drove the other U.S. manufacturers out of America. When we looked at what happened with those tariffs and the pressure put on, we fought hard and automated and invested to keep these jobs in America and fight for the U.S. printers. And we're going to cover that tariff later on in this discussion. So when I look at gross profit at 17, it's been a hard battle considering they were getting subsidies on multiple things, and the tariff numbers will reflect that. So let's talk about a big part of our future investments in the last five years, advanced materials and chemicals, as we refer to as AMC. As we continue to grow the different initiatives, and I touched on some of them earlier, which really comprises of film, chemicals, substrate coating for EVs, and again, the build-out of the reagent facility and the CGMP Clean Lab. It's exciting to see these dollars come to work and see the productivity increase Our film sales have increased on motion picture and in still film and other films. So on film, right, we're doing a shutdown in November, total shutdown. We've continued to invest in our manufacturing process. Well, we need to shut down completely to bring light into the dark, right? Film is made in the dark. So in November, we will be modernizing the plant, putting more investment within that, which has also caused us to use more cash in the quarter to build up inventories while we do this. But as we continue to see our commitment and our customer's commitment to film still in motion picture, we are going to continue to invest in that space and continue with that growth. We're also looking at, as we look at the park, the buildings and the infrastructure. We've invested heavily in the infrastructure. And I'm proud to say we just reopened another one of our buildings and we have now moved into that building. So the park's really coming to life. It's one of our key assets and something we can't forget. Every time I walk through that park, I see power, I see chemical recovery, I see waste management, I see a fire department, I see electricity, and I can go on and on of the power of that park. And we continue to put that to work and bring U.S. jobs back to the park. So I'm going to move on to commercial print. Let me bring you some highlights, and this is really important to get through. So as I mentioned earlier on the ITC, we were granted an affirmative decision, 3-1 from the ITC, on the plates tariff. What does that really mean? Being the last U.S. manufacturer, the others have all left, we reinvested in our plants, we bet on our American workers, and we were able to get a favorable ruling. What does that mean? It ranges anywhere from a 91.83% advance to a 353.09%. What does that mean? That means Kodak now has a level playing field that we could go out, compete, and sell plates and not have a disadvantage by government interference in the pricing of a commodity and a material. It's a big move for the U.S. and a great move, obviously, for Kodak and our customers. Now I'll turn over to Dave to discuss the financial results.