Kodak reports increase in second-quarter sales

Andrea Deckert//August 10, 2022//

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Eastman Kodak Co. reported an increase in year-over-year second-quarter sales, as the company deals with inflationary and supply chain challenges and continues to add to its product line.

The company reported after markets closed Tuesday revenue of $321 million, an improvement of $30 million compared to the same period in 2021.

Kodak had GAAP net income of $20 million for the quarter, compared to $16 million in the prior year’s quarter.

Operational EBITDA for the second quarter was $11 million, compared to $10 million a year ago. Operational EBITDA was favorably impacted by the growth in revenue due to improved pricing and volume, partially offset by higher continued ongoing global cost increases, the company reported.

On June 15, Kodak exercised its right to draw down in full an additional $50 million in aggregate principal pursuant to the Term Loan Credit Agreement and received net proceeds of $49 million.

Kodak ended the second quarter with a cash balance of $289 million, a net decrease of $73 million from Dec. 31.

Company leaders said the decrease is primarily attributable to increases in working capital, the impact of higher costs and increased capital investment.

In July, Kodak invested $25 million of the proceeds received from the delayed draw term loans to acquire the minority stake in San Diego-based Wildcat Discovery Technologies Inc.

Jim Continenza, Kodak’s executive chairman and CEO, said the company continues to invest in digital print technologies, recently rolling out several new offerings.

In addition, the company continues to make investments in recently announced growth initiatives in its Advanced Materials & Chemicals business, expanding its pilot coating facility at Eastman Business Park and taking a minority stake in Wildcat.

“Looking forward, we’ll continue to focus on driving profitable revenue by concentrating on our core businesses and helping our customers build theirs,” he said in a statement.

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