Eastman Kodak Company

Good day and thank you for standing by. Welcome to the Eastman-Kodak Quarter 3 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 the first speaker today, Anthony Redding. Please go ahead.

Thank you and good afternoon, everyone. Welcome to Kodak's third quarter 2025 earnings call. At 4.15 p.m. this afternoon, Kodak filed its form 10Q and issued its release on financial results for the third quarter and the nine months ending September 30th, 2025. You may access the presentation and webcast for today's call on our Investor Center at investor.kodak.com. During today's conference 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. Investors are cautioned not to unduly rely on forward-looking statements. and such statements should not be read or understood as a guarantee of future performance or results. 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 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. All forward-looking statements attributable to Kodak or persons acting on his behalf only apply as of the date of this presentation and are expressly qualified in their entirety that the cautionary statements included are referenced in the presentation. CODEC 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 contain 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.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 Continenza. Thank you and have a great day.

Welcome, everybody, and thank you for joining the Eastman Kodak third quarter 2025 investor call. Let me start off with saying this quarter has been our best performance in years. I can't wait to share the information with you. We are starting to see a return from our long-term investments and growth initiatives. We also continue to increase our operational efficiencies. It's just part of our culture to get better every day. As you'll see, as we go through this presentation, we continue to deliver the balance sheet. I will talk more about this later in the presentation. The third quarter was our best quarter in many years. The highlights include Revenue, $269 million versus $261 million last year. That's an $8 million improvement for approximately 3%. This doesn't happen accidentally. We have continued to execute on our long-term plan and our investments, and we're seeing the results of those investments. I am not concerned about the revenues staying pretty much flat, considering all the upheaval in the markets today. We continue to focus on smart revenue and growth initiatives and investing in the company. We are a proud U.S. American manufacturer. The company is proud to see the hard work of our senior team and all of our employees in executing our long-term plan is resulting in gross profit of 25% versus 17% the third quarter last year, equal to an increase of 8% which translates into $23 million in gross profit. Let me give you an update on the U.S. pension reversion process. We're approaching the culmination of a multi-year process of accessing the overfunding of our U.S. pension plan. It has always been our intention to access the excess funds to de-lever and strengthen our balance sheet. Based on our strong execution of managing the pension plan reversion process, We now expect to get approximately $600 million, which is a hundred million more than we originally estimated. About 450 million will be in cash and 150 million will be in hedge funds that will convert to cash over time. The company will have the opportunity to not only pay down term debt, but also repay other obligations. Once everything is settled, We expect to be net cash positive. Over the last several years in this role, we've done three financings to continue to keep our balance sheet ahead of the company's needs. This is the next step. The appropriate amount of debt and minimal covenants and the freedom to accelerate growth is what we're trying to achieve. All the plan participants are getting everything they're entitled to under the pension plan. Our new benefit plan, offered to U.S.-based employees, is identical to the prior plan. It's part of our culture to always take care of our people. Moving on, back to the company and business results. Advanced Materials and Chemicals. We continue to invest in our core business of Advanced Materials and Chemicals. The business today is seeing the growth of those investments as expected. Revenue is up 15% year over year. Our growth initiatives, we went back to our core competency of layering and coding. We pretty much over the years have abandoned the park and our core competencies. We reinvested in those and brought those back. It is fundamentally who Kodak is. We are the world's best at layering and coding. And we brought back those competencies to Rochester, New York. In doing so, we expect to continue to see growth in these initiatives. Some are in their infancy and some have matured, but we are going to continue to invest in our advanced materials and chemicals. It's what we do best. Our advanced materials and chemicals pharmaceutical initiative is in progress as expected. Our new CGMP pharmaceutical manufacturing facility is now certified to manufacture and sell regulated products and is up and running, starting with diagnostic reagents. Our goal is to continue to expand our product line over time. Let me give you some additional news in the natural materials and chemical groups. By film in particular, again, one of our greatest core competencies over a century of making film. We've added millions of dollars into that factory, into finishing our lines, into increased capacity, into OEMing other products. We shut the plant down last year to rebuild it, and we pretty much almost doubled our capacity in the finishing side of our business. And there are different types of film. In doing so, we also recently launched our own direct distribution brand of film. The purpose in doing so is to stabilize the market and make sure that supply is available everywhere as demand has increased. We're excited about the motion picture business, the increase we've seen there, the commitment that more and more directors are using motion picture film, and also the increase in demand in still film. This is part of our ongoing commitment to the industry. I'm going to move on to some of our highlights of our core business, our commercial print business. As we did over the years, we continue to invest in new products, and you're seeing that today. We'll continue to deliver and provide a full range of product solutions to both offset and digital print. As an example, we provide pre-pressed, workflow software called Prinergy. From their world-class CTP, computer plate machines, that etches the plates, we then provide lithographic printing plates that are made right here in Columbus, Georgia, in the United States. We also manufacture them in Germany and in Japan. This allows us to supply each region and make sure we're meeting customers' demand. We also offer some of the best digital presses in the market. On top of that, Right? World-class service. What that tells you is we're a full-service provider for our printing industry customers. We also don't have print if it's litho or digital. It's both. It's and. Customers need both. That's why we supply both. But we will continue, to be very clear, to grow, innovate, and invest in our printing business. I want to touch on a topic from last quarter that generated a lot of misleading reporting and demonstrated a fundamental misunderstanding of the circumstances leading to the going concern disclosure. The media coverage caused a diversion of resources to answer unfounded questions from a variety of sources. Management spent countless hours with customers, suppliers, and investors around the globe counteracting the false narrative that was created. This is a complicated topic, closely related to the reversion process. Please read the 10Q disclosure carefully and feel free to reach out to our investor relations team if you have any questions at all. The prior conditions about Kodak's ability to continue as an ongoing concern has been resolved, eliminating the need for the ongoing concern disclosure in this quarter. Again, please read the 10-Q carefully or call our investor relations if you have any questions. I will now turn it over to Dave to discuss our third quarter financial results.