Eastman Kodak Co. this week reported a first-quarter drop in sales but a hefty improvement in its bottom line.
For the quarter ended March 31, revenues declined by $2 million to $265 million, compared with the same period in 2020. Net income for the quarter was $6 million, up from a loss of $111 million in the year-ago quarter.
The prior-year quarter net loss includes an expense of $167 million related to the increase in deferred tax valuation allowances for locations outside the U.S. and income of $53 million related to the change in fair value of embedded derivatives in the Series A Preferred Stock and Convertible Notes.
“The steps we have taken in the last two years — strengthening our balance sheet, establishing a customer-first approach and continuing to invest in innovation — have created the foundation for growth,” said Kodak’s Executive Chairman and CEO Jim Continenza. “We will continue to execute on those strategies to create long-term value for our shareholders and our employees.”
Kodak ended the first quarter with a cash balance of $401 million, up from the Dec. 31 cash balance of $196 million.
“We continued to see improved cash performance during the first quarter, including an improvement in working capital and an increase in our cash balance through several financing transactions that closed during the quarter,” said David Bullwinkle, Kodak’s CFO. “During the first quarter, we returned to growth in our key product areas, including SONORA Process Free Plates volume and PROSPER annuities which were up 8 and 12 percent respectively compared with the first quarter of 2020. We will continue to evaluate strategies for investing the capital raised through financing activities to generate additional growth.”
Shares of company stock (NYSE: KODK) Thursday morning were trading up slightly at $6.83.