On August 8, 2024, Eastman Kodak Co (KODK, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Eastman Kodak Co, a United States-based company, operates through several business segments including Print, Brand, and Advanced Materials and Chemicals. The Print segment, which generates the majority of the company's revenue, includes products such as digital offset plate offerings, computer-to-plate imaging solutions, and high-quality digital printing solutions.
Performance Overview
For the quarter ended June 30, 2024, Eastman Kodak Co reported revenues of $267 million, a decrease of $28 million or 9% compared to the same period in 2023. Excluding the impact of foreign exchange, revenue declined by $24 million or 8%. The company’s GAAP net income was $26 million, down from $35 million in Q2 2023, marking a decrease of $9 million or 26%. Operational EBITDA for the quarter was $12 million, compared to $22 million in Q2 2023, a decrease of $10 million or 45%.
Segment Performance
| Q2 2024 Actuals | Q2 2023 Actuals | Q2 2024 vs. Q2 2023 | |
|---|---|---|---|
| Print Revenue | $186 million | $215 million | $(29 million) |
| Advanced Materials & Chemicals Revenue | $73 million | $72 million | $1 million |
| Brand Revenue | $4 million | $4 million | $0 million |
| Total Revenue | $267 million | $295 million | $(28 million) |
| Operational EBITDA | $12 million | $22 million | $(10 million) |
Financial Achievements and Challenges
Despite the revenue decline, Eastman Kodak Co achieved a year-over-year increase in gross profit percentage for the seventh consecutive quarter. The gross profit margin reached 22% in Q2 2024. The company ended the quarter with a cash balance of $251 million, a decrease of $4 million from December 31, 2023. This decrease was driven by capital expenditures to fund growth initiatives, investments in technology systems, and lower profitability from operations.
“Our results for the second quarter were in line with our long-term strategic plan: we delivered a year-over-year increase in gross profit percentage for the seventh consecutive quarter despite an anticipated decline in revenue. We are getting leaner, introducing new products and partnering with the right customers,” said Jim Continenza, Kodak’s Executive Chairman and CEO.
Income Statement Highlights
| Q2 2024 | Q2 2023 | |
|---|---|---|
| Total Revenues | $267 million | $295 million |
| Gross Profit | $58 million | $63 million |
| Net Earnings | $26 million | $35 million |
| Basic Earnings Per Share | $0.25 | $0.35 |
Analysis
The decline in revenue and net income highlights the challenges Eastman Kodak Co faces in maintaining profitability amid strategic investments and operational adjustments. The company's focus on increasing efficiency, investing in innovation, and generating smart revenue is crucial for its long-term growth. The improvement in gross profit margins and the continued investment in new products and infrastructure are positive indicators of the company's commitment to its strategic goals.
For more detailed insights and analysis, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Eastman Kodak Co for further details.
