Eastman Kodak Co (KODK) 2022 Q1 法說會逐字稿

Good afternoon. Thank you for attending today's Eastman Kodak First Quarter 2022 Earnings Call. My name is Bethany, and I will be your moderator for today's call. (Operator Instructions)

下午好。感謝您參加今天的伊士曼柯達 2022 年第一季度收益電話會議。我叫 Bethany，我將擔任今天電話會議的主持人。 （操作員說明）

I would now like to pass the conference over to our host, Paul Dils. Please go ahead.

我現在想將會議轉交給我們的主持人 Paul Dils。請繼續。

Thank you, and good afternoon, everyone. I am Paul Dils, Eastman Kodak Company's Chief Tax Officer and Director of Investor Relations. Welcome to Kodak's First Quarter 2022 Earnings Call. At 4:15 p.m. this afternoon, Kodak filed its Form 10-Q and issued its release on financial results for the first quarter 2022. You may access the presentation and the webcast for today's call on our investor center at investor.kodak.com.

謝謝，大家下午好。我是伊士曼柯達公司的首席稅務官兼投資者關係總監 Paul Dils。歡迎來到柯達 2022 年第一季度財報電話會議。下午 4:15今天下午，柯達提交了 10-Q 表格並發布了 2022 年第一季度財務業績。您可以在我們的投資者中心 investor.kodak.com 上訪問今天電話會議的演示文稿和網絡廣播。

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. 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.

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。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存在重大差異的重要因素包括風險、不確定性和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其他因素。可能還有其他因素可能導致柯達的實際結果與前瞻性陳述存在重大差異。

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. 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. 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.

所有可歸因於柯達或代表其行事的人的前瞻性陳述僅在本演示文稿發布之日適用，並且完全由本演示文稿中包含或引用的警告聲明明確限定。柯達沒有義務更新或修改前瞻性陳述以反映作出日期之後發生的事件或情況，或反映意外事件的發生。此外，剛剛發布的新聞稿和提供的演示文稿包含某些被視為非 GAAP 措施的措施。與最直接可比的 GAAP 措施的對賬已在我們的網站 investor.kodak.com 的投資者中心發布和介紹中提供。

Speakers on today's call are Jim Continenza, Kodak's Chief Executive Officer and Executive Chairman; and David Bullwinkle, Chief Financial Officer of 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.

今天電話會議的發言人是柯達首席執行官兼執行主席 Jim Continenza；柯達首席財務官 David Bullwinkle。在今天的電話會議中，我們不會舉行正式的問答。與往常一樣，投資者關係團隊隨時可以跟進。

I will now turn the call over to Jim.

我現在將電話轉給吉姆。

Welcome, everyone, and thank you for joining the first quarter investor call for Kodak. We started 2022 with a strong balance sheet, including $309 million of cash and cash equivalents as of March 31, 2022. We are building off the success of 2021. Our revenues increased by $25 million or 9% compared to the prior year quarter, which demonstrates our commitment to our customers in the midst of a challenging economic environment. When excluding the impact of foreign exchange, revenue increased $35 million or 13% compared to the prior year quarter. This is following a growth year in 2021.

歡迎大家，並感謝您參加柯達第一季度的投資者電話會議。 2022 年伊始，我們擁有強勁的資產負債表，包括截至 2022 年 3 月 31 日的 3.09 億美元現金和現金等價物。我們正在以 2021 年的成功為基礎。與去年同期相比，我們的收入增加了 2500 萬美元或 9%，這表明我們在充滿挑戰的經濟環境中對客戶的承諾。排除外匯影響後，收入比去年同期增加 3500 萬美元或 13%。這是繼 2021 年增長之後的一年。

We are recognizing a strong growth in our Print businesses, including KODAK SONORA Process Free Plates and KODAK PROSPER annuities and overall volume increase in our businesses. During the first quarter, volume of SONORA Process Free Plates grew by 24% and the annuity revenue for PROSPER improved by 2%.

我們認識到我們印刷業務的強勁增長，包括 KODAK SONORA Process Free Plates 和 KODAK PROSPER annuities，以及我們業務的整體銷量增長。第一季度，SONORA Process Free Plates 的銷量增長了 24%，PROSPER 的年金收入增長了 2%。

We continue to navigate through the ongoing global impact associated with COVID-19 pandemic, the war in Ukraine and other global events. The company is experiencing: supply chain disruptions, shortages in distribution, material and labor; and increased cost of distribution, materials and labor. We have implemented numerous measures to mitigate these challenges, including increasing safety stock materials, increasing lead times and implementing pricing actions. Despite the above shortages and cost increases, we have taken unprecedented steps to ensure supply for our customers.

我們繼續應對與 COVID-19 大流行、烏克蘭戰爭和其他全球事件相關的持續全球影響。公司正在經歷：供應鏈中斷，分銷、材料和勞動力短缺；以及分銷、材料和勞動力成本的增加。我們已經實施了許多措施來緩解這些挑戰，包括增加安全庫存材料、延長交貨時間和實施定價措施。儘管存在上述短缺和成本增加的情況，我們還是採取了前所未有的措施來確保對客戶的供應。

Our long-term strategy continues to focus on our core competencies in print, advanced materials and chemicals, turning the business to focus on innovation, growth and profitability. We remain committed to continued innovation in digital print, including the revolutionary new KODAK ASCEND Digital Press, which is aimed at the retail, point of purchase and packaging markets.

我們的長期戰略繼續關注我們在印刷、先進材料和化學品方面的核心競爭力，將業務重點轉向創新、增長和盈利能力。我們仍然致力於數字印刷的持續創新，包括革命性的新型 KODAK ASCEND 數字印刷機，該印刷機面向零售、採購點和包裝市場。

As discussed on our last call, we are working on new initiatives within our AMC group to leverage our deep expertise in chemistry and strength in layering and coating on multiple substrates that comes from over a century of experience in film manufacturing. These new initiatives are in various stages of commercialization and include: EV/energy storage battery material manufacturing. We have started coating substrates for EV and energy storage materials. We will continue to apply our extensive expertise to produce coated substrates in the U.S.

正如我們在上次電話會議上所討論的那樣，我們正在 AMC 集團內開展新舉措，以利用我們在化學方面的深厚專業知識以及在多個基材上分層和塗層的實力，這些優勢來自一個多世紀的薄膜製造經驗。這些新舉措正處於商業化的不同階段，包括： 電動汽車/儲能電池材料製造。我們已經開始為 EV 和儲能材料塗裝基材。我們將繼續運用我們廣泛的專業知識在美國生產塗層基材。

Light-blocking technology. We plan to commercialize a carbonless fabric coating branded KODALUX. The product is designed to offer superior light management properties and coating capabilities with an unmatched range of fabrics.

擋光技術。我們計劃將品牌為 KODALUX 的無碳織物塗層商業化。該產品旨在通過無與倫比的織物範圍提供卓越的光管理特性和塗層能力。

Transparent antennas. We are leveraging our proprietary technologies and high-resolution printing to manufacture custom transparent antennas for the automotive and other applications.

透明天線。我們正在利用我們的專有技術和高分辨率打印來製造用於汽車和其他應用的定制透明天線。

Reagent manufacturing. As we continue to leverage our trusted brand and expertise in chemicals, we have started the construction of an approximately $20 million lab and manufacturing facility to produce reagents for health care applications.

試劑製造。隨著我們繼續利用我們在化學品方面值得信賴的品牌和專業知識，我們已經開始建設一個價值約 2000 萬美元的實驗室和製造設施，以生產用於醫療保健應用的試劑。

We will now turn it over to Dave to discuss the first quarter 2022 financial results.

我們現在將把它交給戴夫來討論 2022 年第一季度的財務業績。

Thanks, Jim, and good afternoon. Before we get into the details for the quarter, I would like to make a few general comments. The company's performance for the first quarter reflects the results of strategic efforts we have taken based on our long-term strategy. This is evidenced by revenue growth that we have reported. However, the ongoing global impacts associated with the COVID-19 pandemic, the war in Ukraine and other global events continue to impact the company's operations. The company is experiencing supply chain disruptions, shortages in materials and shortages of labor. Costs for labor, material and distribution are rising rapidly as well. We have implemented numerous measures to mitigate these challenges, including increasing safety stock on certain materials, increasing lead times, providing suppliers with longer forecasts of future demand, certifying additional sources of substitute materials where possible and implementing pricing actions. These countermeasures are providing us the opportunity to continue levels of supply to our customers.

謝謝，吉姆，下午好。在我們討論本季度的細節之前，我想發表一些一般性的評論。公司第一季度的業績反映了我們基於長期戰略所做的戰略努力的結果。我們報告的收入增長證明了這一點。然而，與 COVID-19 大流行、烏克蘭戰爭和其他全球事件相關的持續全球影響繼續影響公司的運營。該公司正在經歷供應鏈中斷、材料短缺和勞動力短缺。勞動力、材料和分銷成本也在迅速上升。我們已經實施了許多措施來緩解這些挑戰，包括增加某些材料的安全庫存、延長交貨時間、為供應商提供更長的未來需求預測、在可能的情況下證明替代材料的其他來源以及實施定價行動。這些對策使我們有機會繼續為客戶提供高水平的供應。

I will now share details on the full company results, operational EBITDA and cash flow results for the first quarter. Turning to Slide 7. As we reported in our earnings release, for the first quarter of 2022, we reported revenues of $290 million compared to $265 million in the prior year quarter or an improvement of $25 million. On a constant currency basis, revenue improved by $35 million. On a U.S. GAAP basis, we reported net loss of $3 million for the first quarter, compared to net income of $6 million in the prior year quarter. The 2022 and 2021 first quarter results include expense of $3 million and $1 million, respectively, related to changes in the fair value of embedded derivative liabilities. The first quarter of 2022 also includes income of $4 million related to noncash changes in workers' compensation reserves. Excluding these current and prior year items, loss for 2022 was $4 million, compared to income of $7 million in the prior year quarter.

我現在將分享有關第一季度公司全部業績、運營 EBITDA 和現金流量結果的詳細信息。轉到幻燈片 7。正如我們在收益發布中報告的那樣，2022 年第一季度，我們報告的收入為 2.9 億美元，而去年同期為 2.65 億美元，增加了 2500 萬美元。按固定匯率計算，收入增加了 3500 萬美元。根據美國公認會計原則，我們報告第一季度淨虧損 300 萬美元，而去年同期的淨收入為 600 萬美元。 2022 年和 2021 年第一季度業績分別包括與嵌入衍生負債公允價值變動相關的 300 萬美元和 100 萬美元費用。 2022 年第一季度還包括 400 萬美元與工人賠償儲備的非現金變化相關的收入。不包括這些當年和上一年的項目，2022 年的虧損為 400 萬美元，而去年同期的收入為 700 萬美元。

Operational EBITDA for the quarter was a negative $7 million, compared to a positive $3 million in the prior year quarter. Excluding the unfavorable impact of foreign exchange and adjusting for noncash changes in workers' compensation reserves in the current year, operational EBITDA decreased $13 million from the prior year quarter. Operational EBITDA for the first quarter of 2022 was favorably impacted by growth in revenue due to improved pricing and volume, offset by higher ongoing global cost increases. During the first quarter, volumes for SONORA Process Free Plates grew by 24%, and the annuity revenue for PROSPER improved by 2%. We continued to invest in our core competencies and future growth areas of ULTRASTREAM and advanced materials and chemicals.

本季度的運營 EBITDA 為負 700 萬美元，而去年同期為正 300 萬美元。排除外彙的不利影響和調整本年度工人賠償儲備的非現金變化，運營 EBITDA 比去年同期減少 1300 萬美元。由於定價和銷量的改善，2022 年第一季度的運營 EBITDA 受到收入增長的有利影響，但被全球成本持續增加所抵消。第一季度，SONORA Process Free Plates 的銷量增長了 24%，而 PROSPER 的年金收入增長了 2%。我們繼續投資於 ULTRASTREAM 以及先進材料和化學品的核心競爭力和未來增長領域。

Moving on to the company cash performance presented on Slide 8. The company ended the first quarter with $309 million in cash and cash equivalents, a decrease of $53 million from December 31, 2021. As presented on the bottom portion of the slide, excluding the prior year impact of net proceeds from refinancing transactions, funding of the letter of credit facility and the effect of exchange rates on cash, the quarter-to-date decrease in cash and cash equivalents was $29 million, primarily driven by a use of cash from working capital. Cash used in operating activities was $43 million, driven primarily by cash use from net earnings

轉到幻燈片 8 中顯示的公司現金業績。第一季度結束時，公司現金和現金等價物為 3.09 億美元，比 2021 年 12 月 31 日減少了 5300 萬美元。如幻燈片底部所示，不包括上一年再融資交易淨收益的影響、信用證融資以及匯率對現金的影響，本季度至今現金和現金等價物減少 2900 萬美元，主要是由於使用現金營運資金。經營活動中使用的現金為 4300 萬美元，主要受淨收益現金使用的推動

(technical difficulty)

（技術難度）

Cash used by financing activities was $1 million in the quarter compared to cash provided by financing activities of $242 million in the prior year period. Cash provided by financing activities in the prior year period included $247 million of incremental cash after fees and expenses, driven by the financial transactions announced on March 1, 2021. Restricted cash at the end of the quarter was $65 million, an increase of $4 million from December 31, 2021, mainly related to legal contingency collateral required outside the U.S. Restricted cash primarily represents cash collateral required under the new letter of credit facility in addition to escrows to secure various ongoing obligations. We will continue to focus on alternatives to reduce restrictions on cash, and we view this as an upside opportunity for incremental liquidity for the company. Finally, we remain in compliance with applicable financial covenants.

本季度融資活動使用的現金為 100 萬美元，而去年同期融資活動提供的現金為 2.42 億美元。去年同期融資活動提供的現金包括扣除費用和支出後的 2.47 億美元增量現金，這是由 2021 年 3 月 1 日公佈的金融交易推動的。本季度末受限制的現金為 6500 萬美元，增加了 400 萬美元自 2021 年 12 月 31 日起，主要與美國境外所需的法定或有抵押品有關。受限現金主要指新信用證安排下所需的現金抵押品以及為確保各種持續義務而進行的託管。我們將繼續關注減少現金限制的替代方案，我們認為這是增加公司流動性的上行機會。最後，我們仍然遵守適用的財務契約。

I will now turn the discussion back to Jim.

我現在將討論轉回吉姆。

Thank you, Dave. In summary, we continue to navigate through an unusual challenging business environment and deliver overall growth. We also continue to see increase in customer satisfaction and market share in key print businesses, achievements which reflect the success of our ongoing strategy. As we stated, we plan to continue to focus on commercial print as well as a number of long-term growth initiatives in advanced materials and chemicals. We also continue to invest in product innovations. We at Kodak will continue to execute on our customer-first and One Kodak model. Thank you all for attending the call and your continued interest in Eastman Kodak. Have a good evening.

謝謝你，戴夫。總而言之，我們將繼續在充滿挑戰的異常商業環境中前行，並實現整體增長。我們還繼續看到主要印刷業務的客戶滿意度和市場份額有所提高，這些成就反映了我們持續戰略的成功。正如我們所說，我們計劃繼續專注於商業印刷以及先進材料和化學品的一些長期增長計劃。我們還繼續投資於產品創新。我們在柯達將繼續執行我們的客戶至上和 One Kodak 模型。感謝大家參加電話會議以及您對伊士曼柯達的持續關注。晚上好。

That concludes the Eastman Kodak First Quarter 2022 Earnings Call. I hope you all enjoy the rest of your day. You may now disconnect your lines.

伊士曼柯達 2022 年第一季度財報電話會議到此結束。我希望你們都過得愉快。您現在可以斷開線路。