The FINANCIAL -- Eastman Kodak Company on May 9 reported financial results for the first quarter 2018, reporting a net loss of $25 million on revenues of $357 million and continued growth in its KODAK SONORA Process-Free Plates, KODAK FLEXCEL NX Packaging and KODAK PROSPER Inkjet businesses.
GAAP net loss of $25 million for the quarter ended March 31, 2018.
Operational EBITDA for the quarter of $1 million.
Revenues for the quarter of $357 million, flat compared with the same period in 2017.
Key product lines achieved strong year-over-year growth for the quarter:
Volume for KODAK SONORA Process Free Plates grew by 21 percent.
Volume for KODAK FLEXCEL NX Plates grew by 15 percent.
Annuity revenues for the KODAK PROSPER inkjet platform grew by 14 percent.
The company ended the quarter with a cash balance of $313 million.
“Kodak had continued strong performance in SONORA Process-Free Plates, FLEXCEL NX Packaging and PROSPER Inkjet annuities,” said Jeff Clarke, Kodak Chief Executive Officer. “We are on plan to deliver full-year revenue and Operational EBITDA performance within the expected guidance range.”
Revenues for the quarter ending March 31, 2018 were $357 million, flat compared with the first quarter of 2017. The company reported a first-quarter net loss of $25 million and Operational EBITDA of $1 million, down $5 million compared with the first quarter of 2017, according to Kodak.
The company ended the quarter with a cash balance of $313 million, down $31 million from the December 31, 2017 cash balance of $344 million.
“Our use of cash for the first quarter was in line with our expectations and significantly improved from the same period a year ago,” said David Bullwinkle, Kodak Chief Financial Officer. “We have meaningfully improved productivity and are on track to deliver over $50 million year on year cost savings in 2018.”
Print Systems Division (PSD), Kodak’s largest division, had Q1 revenues of $216 million, an increase of $3 million compared with Q1 2017. Operational EBITDA for the quarter was $4 million, compared with $12 million for the same period a year ago. The decline was due mainly to higher costs for aluminum, the primary material used to manufacture the division’s offset printing plate products.
PSD’s environmentally-advantaged KODAK SONORA Process Free Plates had continued strong performance for the quarter, delivering 21 percent year-over-year growth in unit sales. SONORA Plates now account for 21 percent of the division’s total plate unit sales.
During the quarter PSD launched SONORA X Process-Free plates, which expand the reach of Kodak’s process-free plates from 30% to 80% of market applications. PSD also launched the KODAK NEXFINITY Digital Press, which is positioned to become the most versatile sheetfed digital press on the market.
Enterprise Inkjet Systems Division (EISD), including the KODAK PROSPER and KODAK VERSAMARK businesses and the investment in ULTRASTREAM inkjet technology, had first-quarter revenues of $31 million, down from $37 million in the same period in 2017. Operational EBITDA was $0, flat with the same period the prior year.
For the first quarter of 2018 the PROSPER business continued to deliver strong performance with year-over-year annuity growth of 14 percent. The company continues to invest in the development of KODAK ULTRASTREAM, the next-generation inkjet writing system, which is scheduled for launch in 2019.
Flexographic Packaging Division (FPD) includes KODAK FLEXCEL NX Systems and Plates as well as other packaging products, such as analog flexographic plates and letterpress plates, proofing products and services. FPD had strong performance for the quarter, driven by consistent growth in KODAK FLEXCEL NX Plates. Revenues for Q1 were $37 million, up $4 million compared with the same period a year ago. Operational EBITDA for Q1 was $7 million, an improvement of $1 million compared with the first quarter of 2017.
For the quarter, FLEXCEL NX plate volume continued to grow, increasing 15 percent year over year. The division continues to invest in new product development and infrastructure, including a plate manufacturing line in Weatherford, Oklahoma scheduled to be on line in early 2019.
Software and Solutions Division (SSD) revenues for Q1 were $20 million, a $1 million decline compared with the same period last year. Operational EBITDA was $0, flat with the same period in 2017.
Consumer and Film Division (CFD) revenues for the first quarter were $48 million, compared with $49 million for Q1 2017. Operational EBITDA declined from negative $4 million in Q1 2017 to negative $6 million in Q1 2018. CFD’s motion picture film business had strong performance for the quarter, with a revenue increase of 20 percent compared with the same quarter in the prior year.
Advanced Materials and 3D (AM3D) had Operational EBITDA for the quarter of negative $4 million, an improvement of $4 million compared with the same period the prior year. The division continues to focus on investments in light-blocking particles, printed electronics and advanced materials.
Eastman Business Park Division (EBPD) had Q1 2018 revenues of $4 million, flat with the same period the prior year. Operational EBITDA was flat compared with the first quarter of 2017.