Eastman Kodak Company

the day and thank you for standing by. Welcome to the Eastman Kodak fourth quarter and full year 2024 earnings 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 speaker today, Anthony Redding. Please go ahead.

Thank you and good afternoon, everyone. I am Anthony Redding, Chief Compliance Officer at Eastman Kodak Company. Welcome to Kodak's fourth quarter and full year 2024 earnings call. At 4.15 p.m. this afternoon, Kodak filed its annual form 10-K and issued its release on financial results for the fourth quarter and full year 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. We intend for these forward-looking statements to be covered by the Safe Harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 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 the presentation. CODAC undertakes no obligation to update or revise forward-looking statements to reflect events or circumstances that may 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.codec.com. Speakers on today's call are Jim Continenza, Eastman 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 fourth quarter and full year 2024 investor call. I'm excited again to talk about our continued execution of our long-term plan in spite of all the obstacles that continue in the world between war, supply issues, inflation, shipping, logistics, and just the normal day-to-day turmoil. In 2024, we continued to invest in innovation. We also continued to increase our operational efficiencies. We were shedding on profitable businesses, and yet driving strong gross profit. Our core business continued to perform as expected. The highlights for the fourth quarter include $266 million in revenue compared with $275 million for quarter four 2023. The rate of decline is slowing. We will continue to focus on smart revenue and innovation. One of the highlights is our gross profit at 19%. for fourth quarter 2024 compared with 17% for fourth quarter 2023. This again is a reflection of smart revenue. Highlights for the full year. Consolidated revenues of $1.043 billion compared with $1.117 billion for the full year 2023. Part of the decline is Kodak's rationalization of its business. We continue to shed businesses that aren't core or part of our long-term strategy. Print has continued to decline, but it's being offset somewhat by the increase in the revenues of AMC. Gross profit remains the same as last year at 19%, in spite of, again, inflation, cost increase, transportation increase, uncertainty, and again, war around the world. We're able to maintain our gross profit consistent throughout the year by investing, again, in technologies and operational efficiencies. Some of the highlights for our AMC business include a couple key factors, but I want to be really clear. AMC is critical and one of the key investments for our future. We're seeing continuing profit and revenue growth inside of AMC, ongoing investment and growth initiatives, such as we turned off our film plant and pretty much rebuilt it. That's a big step for us. We haven't done it in over 30 years. We've increased additional capacity through the sensitizing line. So think of it this way. As the business went through, we were bottlenecked in the final stages, and now we're able to pick up some of that bottleneck by adding additional equipment and making the plant even more efficient and yet putting out higher production levels. We also keep investing in growth initiatives such as our CGMP pharma facility that will start production this year. Demand for various types of film continues. Still film, motion picture, NDT. Film's just not film. We do various types of film, continue to OEM film, and make our own products. We continue to see growth in demand in that area, and we're going to keep investing in that area. As I said earlier, we invested in expanding our capabilities and our capacity. And some really highlights, and we just have to bring this up. You know, go to our motion picture film. Movies that were shot on Kodak Film dominated the Oscars. A couple examples are The Brutalist and The Nora. We want to thank the directors and the studios and the fans for continuing supporting the use of film and understand the true benefits that it brings to such a great art. Moving on to highlight from our commercial print division, we concluded the tariff petition process with the U.S. International Trade Commission, ITC. Our outcome established a level playing field, and that's all we were asking for, in the plates business in the United States. This is a big win for U.S. manufacturing. And again, it's a level playing field when other governments are interfering in business and subsidizing other companies and giving them an advantage inside the U.S. that put U.S. manufacturers out of business. We're the last standing plate manufacturer in the U.S. The other three are gone. And this tariff helps a level playing field be set. This is good for the United States workers. This is good for our printers. And this is good for America in general. Our Prosper 7000 TurboPress had a strong showing at the Hunkler Innovation Days trade show. Our Prosper 7000 Turbo is the world's fastest inkjet press machine. 400 meters per minute equates to 1,000 345 pages per minute. No one can reach all speeds and the quality levels that we hit. Some of the improvements in that 7,000 is it's upgradable. You can buy a 6,000 and we can upgrade it to a 7,000. So for the first time for Kodak, you don't need to buy a brand new machine. You can upgrade this machine up to 35% more speed for a minimal cost of your investment. That makes your capital expenditure a much better long-term investment. You don't need to throw away 90% of the machine. You can simply make an upgrade to make it 35% faster. And lastly, but most important, we're now taking the 7000 Turbo and the Prosper 520 and taking it from controlled introduction to controlled production, and we'll be releasing it commercially to various printers. In conclusion, something that's on everyone's mind, an update on Kodak's U.S. pension plan. The Board has approved the termination of the Kodak Retirement Income Plan, known as CRIP, effective March 31, 2025. The process is underway to settle the pension obligations with participants and excess funds that will come back to the company. the company expects a significant portion of any reverted asset to be used to reduce long-term debt and therefore the annual cost of servicing that long-term debt. You can read additional information in our Form 10-K filing. I will now turn it over to Dave Bullwinkle to discuss the fourth quarter and full year 2024 financial results.