Eastman Kodak Co. after the bell on Tuesday reported full-year financial results that include a steep decline in revenues and a net loss of $196 million for the year.
For the full year ended Dec. 31, the Rochester company reported consolidated revenues of $1 billion, compared with $1.2 billion in 2019. Kodak reported a net loss of $541 million, compared with earnings of $116 million in the prior year.
Kodak reported a cash balance of $196 million at year-end.
On March 1, 2021, the company announced a series of financial transactions that provide access to new capital, address maturing obligations and strengthen the company’s ability to invest in strategic growth opportunities in its core businesses. Included in those transactions is a $100 million investment by Grand Oaks Capital, an investment firm started by Paychex founder Tom Golisano. Kodak officials said the additional liquidity provided by the financial transactions “eliminates the substantial doubt about Kodak’s ability to continue as a going concern.”
“Kodak successfully managed through 2020 despite the challenges of the pandemic,” said Kodak CEO and Executive Chairman Jim Continenza. “We mitigated the impact of COVID with cost-saving initiatives, launched several innovative print-business products and generated cash in the third and fourth quarters. More recently, we announced a series of financial transactions which significantly strengthened our balance sheet and set the stage for growth through investments in our core businesses in print and advanced materials and chemicals, and new initiatives.”
The company’s loss for the year included a charge of $416 million to reflect the increased value of the derivative liability embedded in the convertible notes immediately prior to conversion during the third quarter 2020, as well as expenses of $167 million related to the increase in deferred tax valuation allowances for locations outside the U.S. during the first quarter of 2020. Operational EBITDA was negative $1 million for the year, compared with $13 million in 2019.
“Kodak increased its cash balance in the third and fourth quarters by $16 million and ended the year at $196 million in cash,” said CFO David Bullwinkle. “During 2020 the company improved its financial health by removing legacy liabilities and reducing costs, and the recently announced transactions put Kodak in a strong financial position and provide incremental liquidity to drive growth.”
Shares of company stock (NYSE: KODK) closed Tuesday at $8.75 and were down more than 5 percent midday Wednesday to $8.24.
[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer