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Kodak reports declines in Q4, posts profit for 2016

Eastman Kodak Co. on Tuesday reported its fourth-quarter profit declined 58 percent while its revenues fell 8 percent.  But the company reported its first annual profit since emerging from bankruptcy.

The company reported net earnings attributable to Kodak of $10 million for the quarter, down from $24 million a year ago.

The company logged revenues of $404 million for the quarter, down 8 percent. Revenues declined 7 percent on a constant currency basis. The decrease primarily was driven by the expected continued decline in legacy consumer inkjet printer cartridge sales and pricing reductions in digital plates within the Print Systems Division.

For the year, the company reported net income from continuing operations attributable to Kodak of $15 million, or 99 cents a share, compared with a net loss of $80 million, or 79 cents a share, in 2015 on the same basis. 

Kodak logged revenues in 2016 of $1.5 billion, compared with revenues of $1.7 billion for 2015, down 10 percent. 

"Kodak was profitable on a GAAP basis in 2016. That’s the first time since 2013, if you adjust for some of the technicalities around coming out of bankruptcy, including the sales of intellectual property. That’s the first GAAP profit the company has had in a decade," Kodak CEO Jeffrey Clarke said during a conference call.

The company’s cash balance was $433 million at the end of 2016, compared with $546 million at the end of 2015. The cash decline in 2016 was $53 million less than in 2015. Excluding net debt prepayments, cash usage decreased from $162 million in 2015 to $29 million in 2016.

“I’m encouraged by the significant year-over-year improvement in our use of cash,” said David Bullwinkle, chief financial officer. “The repayment in full of our second-lien debt will reduce the use of cash for interest payments going forward and we expect to generate cash in 2017.”

The company issued 2017 guidance for revenues of $1.4 billion to $1.5 billion on a continuing operations basis and excludes the Kodak Prosper business, which is reported within discontinued operations. 

(c) 2017 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail [email protected].

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