Eastman Kodak Company

Good day, and thank you for standing by. Welcome to the Eastman Kodak Q2 2025 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 speaker today, Anthony Redding, Chief Compliance Officer. 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 2025 earnings call. At 4.15 p.m. this afternoon, Kodak filed this form 10Q and issued its release on financial results for the second quarter and first half of 2025. 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 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 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 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. Kodak 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 David Bullwinkle, Kodak's Chief Financial Officer and Senior Vice President. 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, and good afternoon.

Welcome, everyone, and thank you for joining the second quarter 2025 investor call. As we remind everyone, we continue to execute on our long-term plan, despite all the uncertainty happening in the business environment around the world, from tariffs to logistics to wars. Delivering the business and strengthening our balance sheet has been a key initiative from day one. We continue to do that and see improvements. investing in growth businesses. And you'll see many of them come to fruition. We invested heavy back in film, paying off EV batteries or battery substrate coating, and then our medical group that we just recently launched and more to come as we go through the presentation. One of the key items in delivering and investing in business growth is by increasing your operational efficiency. We continue to do that through technology and automation and standardized practices throughout the business. Our core business continued to perform as expected. Highlights from the second quarter include revenue of $263 million, compared with $267 million for second quarter 2024, roughly flat year over year. I'm proud to say we continue to see revenue grow in our advanced materials and chemical business, known as AMC. Those investments are paying off, and we're excited with the progress we've made. Gross profit percentage of 19% compared with 22% for the second quarter 2024 is in line with our expectations with all the changes happening quickly in the business environments. I think it's important for me to remind our investors and our customers our commitment to U.S. manufacturing. And I'll discuss the impact of the tariffs. But to be clear, several years ago, we brought back our heritage as a U.S. manufacturer. from our manufacturing facilities up in Rochester. All motion picture film made in the US. Most film made in the US. A lot of other types of films made in the US. All of the Rochester plants. Our digital printers made in the US. Our ink made in the US. Our chemicals made in the US. We continue to be a US manufacturer and we're the only manufacturer of lithographic plates in the United States. Kodak is proud to be a global company and our key manufacturing taking place right here at home. These advantages help us greatly with logistics and servicing and supplying our customers. In addition, our AMC growth initiatives include a new CGMP pharmaceutical manufacturing facility located in the United States, in Rochester, New York. Our plan to continue to deliver allows us to execute our long-term growth initiatives Let's talk about tariffs. Year-to-date tariffs did not have a material impact in our business. We're supportive of tariffs as long as they benefit the U.S. manufacturers. We would hope the impact of the tariffs would not negatively impact the last U.S. manufacturer of lithographic plates. Moving on to highlights of our commercial print business, which is still our largest business. We continue to see improvements in efficiency and products and acceptance of our products. Again, There's a lot going on in the world that impacts print. We continue to provide our customers with reliable supply and a full range of solutions, from offset to digital print. We've completed initial sale of several Prosper 520s, which are currently being installed at customer sites as we speak. An update on our U.S.-based Advanced Materials and Chemicals Pharmaceutical Initiative. As we continue to invest in our U.S. print business, we continue to also see acceleration of growth in our AM&C business. Our CGMP pharmaceutical manufacturing facility is now registered with the FDA and certified to manufacture and sell certain regulated pharmaceutical products. This initiative is an extension of our current business in unregulated pharmaceutical key starting material known as KSM. The facility will begin operation manufacturing phosphate buffered saline, known as PBS, for laboratory use and create a bridge to manufacturing more sophisticated products and ultimately injectables such as IV saline. Let me give you an update on Kodak's U.S. pension plan. A lot's been written about it. The CRIP termination and reversion process is proceeding as planned. We expect a significant portion of any reverted asset to be used to reduce our long-term debt, and therefore the annual cost of servicing that debt. Dave Volwinkel will be providing much more detail, and you can find additional information in our Form 10Q filings. Now I will turn it over to Dave to discuss the second quarter financial results.