Eastman Kodak Co (KODK) 2023 Q1 法說會逐字稿

Good afternoon, and thank you for standing by. Welcome to the Eastman Kodak First Quarter 2023 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to Anthony Redding. Please go ahead.

下午好，感謝您的支持。歡迎參加伊士曼柯達 2023 年第一季財報電話會議。 （操作員指示）請注意，今天的會議正在錄音。現在我想將會議交給安東尼·雷丁。請繼續。

Thank you, and good afternoon, everyone. I am Anthony Redding, Eastman Kodak Company's Chief Compliance Officer. Welcome to Kodak's First Quarter 2023 Earnings Call. At 04:15 p.m. this afternoon, Kodak filed its Form 10-Q and issued its release on financial results for the first quarter of 2023.

謝謝大家，下午好。我是伊士曼柯達公司的首席合規官安東尼雷丁 (Anthony Redding)。歡迎參加柯達 2023 年第一季財報電話會議。下午 4:15今天下午，柯達提交了10-Q表格，並發布了2023年第一季的財務表現。

You may access the presentation and webcast for today's call on our Investor Center at investor.kodak.com. During today's call, we will be making certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. All forward-looking statements are based upon Kodak's expectations and various assumptions.

您可以透過我們的投資者中心 investor.kodak.com 觀看今天電話會議的簡報和網路直播。在今天的電話會議中，我們將根據 1995 年私人證券訴訟改革法案的定義做出某些前瞻性陳述。所有前瞻性陳述均基於柯達的預期和各種假設。

Future events or results may differ from those anticipated or expressed in the forward-looking statements. Important factors that could cause actual events or results to differ materially from these forward-looking statements include, among others, the risks, uncertainties and other factors described in more detail in Kodak's filings with the U.S. Securities and Exchange Commission from time to time. There may be other factors that may cause Kodak's actual results to differ materially from the forward-looking statements.

未來事件或結果可能與前瞻性陳述中預期或表達的不同。可能導致實際事件或結果與這些前瞻性陳述有重大差異的重要因素包括但不限於柯達不時向美國證券交易委員會提交的文件中更詳細描述的風險、不確定性和其他因素。可能還有其他因素導致柯達的實際結果與前瞻性陳述有重大差異。

All forward-looking statements attributable to Kodak or persons acting on its behalf apply only as of the date of this presentation and are expressly qualified in their entirety by the cautionary statements included or referenced in this presentation.

所有歸因於柯達或代表其行事的人員的前瞻性陳述僅適用於本簡報之日，並且完全受本簡報中包含或引用的警示性聲明的明確限制。

Kodak undertakes no obligation to update or revise forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. In addition, the release just issued and the presentation provided contains certain measures that are deemed non-GAAP measures.

柯達不承擔更新或修改前瞻性陳述以反映聲明日期之後發生的事件或情況或反映意外事件的發生的義務。此外，剛發布的新聞稿和提供的簡報包含某些被視為非 GAAP 指標的指標。

Reconciliations to the most directly comparable GAAP measures have been provided with the release and within the presentation on our website in our Investor Center at investor.kodak.com. Speakers on today's call are Jim Continenza, Kodak's Executive Chairman and Chief Executive Officer; and Dave Bullwinkle, Chief Financial Officer of Eastman Kodak. We will not be holding a formal Q&A during today's call. As always, the Investor Relations team is available for follow-up.

在本新聞稿中以及在我們網站投資者中心 (investor.kodak.com) 的簡報中，已提供了與最直接可比較的 GAAP 指標的對帳。今天電話會議的發言人是柯達執行董事長兼執行長 Jim Continenza；以及伊士曼柯達公司財務長 Dave Bullwinkle。今天的電話會議中我們不會舉行正式的問答環節。與往常一樣，投資者關係團隊隨時準備跟進。

I will now turn the call over to Jim Continenza. Thank you.

現在我將電話轉給 Jim Continenza。謝謝。

Welcome, everyone. Thank you for joining the first quarter 2023 investor call for Kodak. Turning to Slide 5. I am pleased with the improvement reported in the company's results for the first quarter 2023. We continued to build momentum, generating smart revenues and cash and improving our gross profit in an extremely challenging business environment.

歡迎大家。感謝您參加柯達 2023 年第一季投資者電話會議。翻到幻燈片 5。我對公司 2023 年第一季業績的改善感到滿意。在極具挑戰性的商業環境中，我們繼續保持成長勢頭，創造了可觀的收入和現金，並提高了毛利。

It is important to note that the progress we have made didn't happen overnight. It is the result of investing and executing on our long-term plan, staying focused on our core competencies of advanced materials and print.

值得注意的是，我們所取得的進步並非一朝一夕就能實現的。這是我們投資和執行長期計劃的結果，我們始終專注於先進材料和印刷的核心競爭力。

Over the last 4 years, we've innovated and built a foundation for growth and profitability. We have strengthened our financial position and focused on driving smart revenue in our core businesses by realizing the value of our offerings. The successful implementation of this strategy allows us to continue investing and monetizing our new growth initiatives. We continue to invest in previously announced long-term growth initiatives, in our Advanced Materials and Chemical Group, including layering and coating substrates for EV batteries and energy storage and the controlled introduction of our KODALUX light-blocking fabric business. We are starting to see revenue for the businesses. In addition, we continue to see growing demand in our film business.

在過去的四年裡，我們不斷創新，為成長和獲利奠定了基礎。我們加強了財務狀況，並致力於透過實現產品價值來推動核心業務的智慧收入。這項策略的成功實施使我們能夠繼續投資並將新的成長計畫貨幣化。我們繼續投資於先進材料和化學集團先前宣布的長期成長計劃，包括電動車電池和儲能的分層和塗層基板，以及有控制地引入我們的 KODALUX 遮光織物業務。我們開始看到企業的收入。此外，我們看到電影業務的需求不斷增長。

We have invested in a significant infrastructure upgrade including full implementation of Salesforce and our SAP ERP system that has made us materially better in terms of efficiency and reporting. We must be as efficient as possible to eliminate always and increase our productivity to meet our customers' needs and stay profitable in challenging environments.

我們投資了重大的基礎設施升級，包括全面實施 Salesforce 和我們的 SAP ERP 系統，這使我們的效率和報告方面得到了顯著改善。我們必須盡可能有效率地消除並提高生產力，以滿足客戶的需求並在充滿挑戰的環境中保持獲利。

We continue to invest in our core print business, especially digital print. We have launched 2 groundbreaking inkjet presses, the PROSPER ULTRA 520 Press, which rivals offset for quality and productivity, and the PROSPER

我們繼續投資我們的核心印刷業務，尤其是數位印刷。我們推出了兩款突破性的噴墨印刷機，PROSPER ULTRA 520 印刷機，其品質和生產率可與膠印相媲美，PROSPER

7000 Turbo Press, which is the world's fastest inkjet press. In addition, we have launched our KODACHROME Inkjet -- inks, which are the gold standard for color for many decades. You will hear more next quarter about the rollout strategy of these products, which is designed to maximize productivity and value for our customer.

7000 Turbo Press，這是世界上速度最快的噴墨印刷機。此外，我們還推出了 KODACHROME 噴墨墨水，幾十年來它一直是色彩的黃金標準。下個季度您將聽到更多有關這些產品的推出策略的信息，該策略旨在最大限度地提高客戶的生產力和價值。

Most importantly, we continue to execute on our go-to-market strategy, staying focused on our customers and developing solutions that address their challenges and create new opportunities. We put our customers first because we win only when they win.

最重要的是，我們繼續執行我們的市場進入策略，專注於我們的客戶並開發解決他們的挑戰和創造新機會的解決方案。我們把客戶放在第一位，因為只有客戶贏了，我們才能贏。

Turning to Slide 6. Performance highlights for the first quarter include: Revenues were $278 million, a decline of $12 million or 4% compared to the prior year. Adjusting for unfavorable impact of foreign exchange of $10 million, revenues decreased by $2 million or roughly flat.

翻到幻燈片 6。第一季的業績亮點包括：營收為 2.78 億美元，與上年相比下降 1,200 萬美元，降幅為 4%。扣除 1000 萬美元的外匯不利影響後，收入減少了 200 萬美元，基本上持平。

Revenue was slightly impacted also by our decision to suspend manufacturing and sales of our EPS line due to increased cost and supply chain issues. This decision does not in any way affect our ability or commitment to continue to service all existing EPS presses in the field.

由於成本增加和供應鏈問題，我們決定暫停 EPS 系列的生產和銷售，這也對收入產生了輕微影響。這項決定不會以任何方式影響我們繼續為該領域所有現有 EPS 印刷機提供服務的能力或承諾。

There was a trade-off here. We increased our gross profit by $17 million or 52% as we increase the efficiency in our supply chain and our operations. We continue to focus on smart revenue over growth goal.

這裡有一個權衡。隨著我們提高供應鏈和營運效率，我們的毛利增加了 1,700 萬美元，即 52%。我們持續專注於智能收入而非成長目標。

What does that mean? We focus on things that fall within our core competencies and things that we can execute better than others. And we know that we could do a good job for our customers and help them achieve greater profitability.

這意味著什麼？我們專注於屬於我們核心競爭力的事情以及我們能夠比其他人做得更好的事情。我們知道我們可以為客戶提供優質服務並幫助他們實現更高的利潤。

Our gross profit percentage was 18% in quarter 1, 2023, compared to 11% in the prior year quarter, which is partially attributable to the investment we've made in infrastructure and streamlining our operations. I'm proud to say, as a result of our execution and a lot of hard work by the team, Kodak has generated $8 million of cash in the first quarter 2023 compared to a decrease of $53 million in the first quarter of 2022.

2023 年第一季我們的毛利率為 18%，而去年同期為 11%，這部分歸因於我們在基礎設施和精簡營運方面的投資。我很自豪地說，由於我們的執行力和團隊的辛勤工作，柯達在 2023 年第一季產生了 800 萬美元的現金，而 2022 年第一季則減少了 5,300 萬美元。

These improvements are encouraging, but we understand that we are not out of the woods, we have a lot of work still to do in these very difficult times.

這些改善令人鼓舞，但我們明白，我們還沒有脫離險境，在這個非常困難的時期，我們還有很多工作要做。

We intend to continue to execute our strategic plan with the goal of driving smart revenue in the near term and sustainable profitable growth in the future.

我們打算繼續執行我們的策略計劃，目標是在短期內推動智慧收入並在未來實現可持續的獲利成長。

I will now turn it over to Dave to discuss the first quarter 2023 financial results.

現在我將把時間交給戴夫來討論 2023 年第一季的財務表現。

Thanks, Jim, and good afternoon. This afternoon, the company filed its Form 10-Q for the quarter ending March 31, 2023, with the SEC. As always, I recommend you read this filing in its entirety. Before I get into the details for the quarter, I would like to comment on a financing transaction that occurred in the first quarter of 2023. As previously discussed in our last call, on March 14, 2023, the company entered into an amendment to its amended ABL credit agreement in its letter of credit facility agreement to among other things extended maturity from February 26, 2024 to June 12, 2024 at a requirement to maintain daily minimum liquidity of $50 million in addition to maintain the existing quarterly minimum liquidity of $80 million and provide that upon the original maturity date of the amended ABL credit agreement on February 26, 2024, decreased the aggregate amount of commitments from $90 million to $81 million.

謝謝，吉姆，下午好。今天下午，該公司向美國證券交易委員會提交了截至 2023 年 3 月 31 日的季度 10-Q 表。像往常一樣，我建議您完整閱讀此文件。在介紹本季的細節之前，我想先對 2023 年第一季發生的一筆融資交易發表評論。正如我們上次電話會議中所討論的那樣，2023 年 3 月 14 日，公司在其信用證融資協議中對修訂後的 ABL 信貸協議進行了修訂，其中包括將到期日從 2024 年 2 月 26 日延長至 2024 年 6 月 12 日，要求除了將每日的 800 萬美元2024 年 2 月 26 日修訂後的 ABL 信貸協議的原到期日，承諾總額從 9,000 萬美元減少到 8,100 萬美元。

This extension provides us with more flexibility and additional time to implement a longer-term solution to our capital structure, given the macroeconomic conditions. Additionally, as disclosed in our Form 10-Q, Kodak changed its organizational structure during the first quarter of 2023 to combine the Traditional Printing segment and the Digital Printing segment into one segment named the Print segment.

考慮到宏觀經濟條件，此次延期為我們提供了更大的靈活性和更多時間來實施資本結構的長期解決方案。此外，正如我們的 10-Q 表所揭露的那樣，柯達在 2023 年第一季度改變了其組織結構，將傳統印刷部門和數位印刷部門合併為一個名為印刷部門的部門。

No changes were made to Kodak's other segments. As a result of this change, Kodak now has 3 reportable segments: Print, Advanced Materials & Chemicals and Brand. The Print segment is comprised of 5 lines of business: Prepress Solutions business, the Prosper business, the Software business, the Electrophotographic Printing Solutions business and the VERSAMARK business.

柯達的其他部門沒有做出任何改變。由於這項變化，柯達現在有 3 個可報告部門：印刷、先進材料與化學品和品牌。印刷部門由 5 條業務線組成：印前解決方案業務、Prosper 業務、軟體業務、電子照相印刷解決方案業務和 VERSAMARK 業務。

The Advanced Materials & Chemicals segment is comprised of 3 lines of business: industrial film and chemicals, motion picture and advanced materials and functional printing. The Brand segment contains the brand licensing business. All other is comprised of the operations of Eastman Business Park. I will now share details on the full company results, operational EBITDA and cash flow results for the first quarter.

先進材料與化學品部門由三條業務線組成：工業薄膜與化學品、電影與先進材料、功能印刷。品牌部門包含品牌授權業務。其餘均由伊士曼商業園區的營運組成。我現在將分享第一季公司整體業績、營運 EBITDA 和現金流結果的詳細資訊。

Turning to Slide 7. As we reported in our earnings release for the first quarter of 2023, we reported revenues of $278 million compared to $290 million in the prior year quarter, a decline of $12 million or 4%. On a constant currency basis, revenue declined by $2 million or 1% compared to the prior year quarter, basically flat in revenue year-over-year.

翻到幻燈片 7。正如我們在 2023 年第一季財報中所報告的那樣，我們的營收為 2.78 億美元，而去年同期為 2.9 億美元，下降了 1,200 萬美元，降幅為 4%。以固定匯率計算，營收與去年同期相比下降了 200 萬美元，即 1%，與去年同期相比營收基本持平。

As Jim mentioned, pricing, cost reductions and customer-focused initiatives continue to be a priority for the company, and we continue to recognize the significant improvements in profitability as a result of the culmination of these initiatives. We continue to recognize improvements in gross profit with an increase of $17 million or 52% when compared to the prior year quarter. Excluding the unfavorable impact of foreign exchange, gross profit improved $19 million or 58% when compared to the prior year quarter.

正如吉姆所提到的，定價、降低成本和以客戶為中心的措施仍然是公司的首要任務，我們繼續認識到這些措施的實施帶來的獲利能力的顯著提高。我們繼續確認毛利有所改善，與去年同期相比增加了 1,700 萬美元，增幅為 52%。排除外匯的不利影響，毛利與去年同期相比增加了 1,900 萬美元，增幅為 58%。

Our gross profit percentage was 18% in Q1 2023, compared to 11% in the prior year quarter. This improvement is a result of the many actions our team has taken to mitigate the effects of the global economy to make our operations more efficient as well as implementing pricing actions.

2023 年第一季我們的毛利率為 18%，而去年同期為 11%。這項改善是我們的團隊採取多項措施減輕全球經濟影響、提高營運效率以及實施定價措施的結果。

On a U.S. GAAP basis, we reported net income of $33 million for the first quarter compared to a net loss of $3 million in the prior year quarter, an increase of $36 million. Contributing to this increase is $10 million of income from insurance reimbursement of legal expenses incurred in prior periods.

根據美國公認會計準則，我們報告第一季淨收入為 3,300 萬美元，而去年同期淨虧損為 300 萬美元，增加了 3,600 萬美元。促成這一增長的是來自前期發生的法律費用保險報銷收入 1000 萬美元。

The 2023 and 2022 first quarter results include expense of $1 million and $3 million, respectively, related to changes in the fair value of embedded derivative liabilities and expense of $1 million and income of $4 million, respectively, related to noncash changes in workers' compensation and employee benefit reserves. The first quarter of 2023, also includes income of $9 million related to a refund from a non-U.S. governmental authority.

2023 年和 2022 年第一季的業績分別包括與嵌入式衍生負債公允價值變動相關的 100 萬美元和 300 萬美元的費用，以及與工人賠償和員工福利儲備的非現金變動相關的 100 萬美元的費用和 400 萬美元的收入。 2023 年第一季還包括與非美國政府機構退款相關的 900 萬美元收入。

Excluding these current and prior year items, income for 2023 was $26 million compared to a loss of $4 million in the prior year quarter, reflecting an increase of $30 million. Operational EBITDA for the quarter was a positive $9 million compared to a negative $7 million in the prior year quarter, an increase of $16 million or 229%. Excluding the impact of noncash changes in workers' compensation and employee benefit reserves in both the current and prior year and the unfavorable impact of foreign exchange in the current year, operational EBITDA increased $22 million or 200% from the prior year quarter.

不包括這些目前和去年的項目，2023 年的收入為 2,600 萬美元，而去年同期的虧損為 400 萬美元，增加了 3,000 萬美元。本季的營業 EBITDA 為正 900 萬美元，而去年同期為負 700 萬美元，增加了 1,600 萬美元，增幅為 229%。排除本年度和上年度工人賠償和員工福利儲備的非現金變化的影響以及本年度外匯的不利影響，營業 EBITDA 較上年同期增加了 2200 萬美元，增幅為 200%。

Operational EBITDA for the first quarter of 2023 was favorably impacted by improved profitability related to pricing actions and improved operational efficiency, partially offset by higher continued ongoing global cost increases.

2023 年第一季的營運 EBITDA 受到定價行動相關的獲利能力提高和營運效率提高的正面影響，但全球成本持續上漲部分抵銷了這一影響。

During the first quarter, volumes for SONORA Process-Free Plates declined by 14% or 12% when including volume pursuant to a licensing agreement under which Kodak receives royalties and the annuity revenue for PROSPER declined by 6%. On a constant currency basis, PROSPER annuity revenue declined by 1%.

第一季度，SONORA 免沖洗印版的銷量下降了 14%，如果計入根據授權協議（柯達收取專利費）所銷售的銷量，則下降了 12%，而 PROSPER 的年金收入則下降了 6%。以固定匯率計算，PROSPER 年金收入下降了 1%。

As Jim mentioned, we have focused on key innovations in our Print business to deliver new products that our customers need to drive their businesses forward.

正如吉姆所提到的，我們專注於印刷業務的關鍵創新，以提供客戶推動業務發展所需的新產品。

Moving on to the company cash performance presented on Slide 8. The company ended the first quarter with $225 million in cash and cash equivalents, an increase of $8 million in the first quarter of 2023, compared to the decrease of $53 million in the first quarter of 2022. This is the second consecutive quarter that the company has increased its cash balance.

接下來介紹投影片 8 展示的公司現金表現。該公司第一季末的現金和現金等價物為 2.25 億美元，與 2022 年第一季減少 5,300 萬美元相比，2023 年第一季增加了 800 萬美元。這是該公司連續第二季增加現金餘額。

Cash provided by operating activities was $14 million, driven primarily by cash flow from net earnings of $11 million and cash flow from balance sheet changes of $3 million, including a change in working capital of $2 million, a decrease in miscellaneous receivables of $7 million and a decrease in other liabilities of $13 million.

經營活動提供的現金為 1,400 萬美元，主要由 1,100 萬美元的淨收益現金流和 300 萬美元的資產負債表變動現金流推動，其中包括 200 萬美元的營運資本變動、700 萬美元的雜項應收款減少和其他負債減少 1,300 萬美元。

Within working capital, accounts payable increased by $3 million, inventory increased by $13 million, and accounts receivable decreased by $12 million as compared to December 31, 2022. Cash used in investing activities was $5 million in the first quarter, flat when compared to the prior year period. Cash used in financing activities was $1 million for the quarter, also flat when compared to the prior year period.

在營運資金方面，與 2022 年 12 月 31 日相比，應付帳款增加了 300 萬美元，庫存增加了 1,300 萬美元，應收帳款減少了 1,200 萬美元。第一季投資活動所用現金為 500 萬美元，與去年同期持平。本季融資活動所用現金為 100 萬美元，與去年同期持平。

Restricted cash at the end of the quarter was $69 million, flat when compared to December 31, 2022. Restricted cash primarily represents cash collateral required under the new letter of credit facility and certain aluminum supply contracts in addition to escrows to secure various ongoing obligations.

本季末的受限現金為 6,900 萬美元，與 2022 年 12 月 31 日持平。受限現金主要代表新信用證安排和某些鋁供應合約所要求的現金抵押品，以及用於擔保各種持續義務的託管款項。

As presented on the bottom portion of the slide, excluding the current year impact of a refund from a non-U.S. governmental authority, the company delivered a $52 million improvement in cash flow in the first quarter of 2023, compared to the prior year.

如幻燈片底部所示，不包括非美國政府機構退款對本年度的影響，該公司 2023 年第一季的現金流與前一年相比增加了 5,200 萬美元。

Finally, we remain compliance with all applicable financial covenants. I will now turn the discussion back to Jim.

最後，我們仍然遵守所有適用的財務契約。現在我將把討論轉回給吉姆。

In summary, delivering strong performance in the first quarter, generating cash, increasing profitability while continuing to invest in our future despite the challenges of an extremely difficult business environment with a lot of uncertainty, our performance reflected the success of actions we have taken over the last 4 years, which are creating a strong foundation that allow us to continue to innovate, invest and grow.

總而言之，儘管面臨極其困難和不確定的商業環境的挑戰，我們在第一季度仍然表現強勁，產生了現金，提高了盈利能力，同時繼續對未來進行投資，我們的業績反映了我們過去四年所採取行動的成功，這些行動為我們繼續創新、投資和發展奠定了堅實的基礎。

We will continue to invest in our Print businesses and our AMC growth initiatives. We will continue to put our customers first delivering the solutions they need to thrive in this evolving print market, driving the efficiency improvements they expect.

我們將繼續投資於我們的印刷業務和 AMC 成長計劃。我們將繼續把客戶放在第一位，為他們提供在這個不斷發展的印刷市場中蓬勃發展所需的解決方案，推動他們期望的效率提升。

Our goal is to build on our positive momentum we have created, partner with our customers, deliver innovation and execute on our plan. Thank you for attending the call and your continued interest in Eastman Kodak. Have a great day.

我們的目標是利用我們已經創造的積極勢頭，與我們的客戶合作，實現創新並執行我們的計劃。感謝您參加電話會議並繼續關注伊士曼柯達。祝你有美好的一天。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。