CAUTIONARY STATEMENT PURSUANT TO SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This report on Form 10-Q includes "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995.
• Kodak's ability to improve and sustain its operating structure, cash flow,
profitability and other financial results;
• Kodak's ability to achieve strategic objectives, cash forecasts, financial
• Kodak's ability to achieve the financial and operational results contained
• Kodak's ability to comply with the covenants in its various credit
• The performance by third parties of their obligations to supply products,
components or services to Kodak and Kodak's ability to address supply
chain disruptions and continue to obtain raw materials and components
available from single or limited sources of supply, which may be adversely
affected by the COVID-19 pandemic;
• The impact of the global economic environment or medical epidemics such as
the COVID-19 pandemic, including the restrictions and other actions taken
in response to the COVID-19 pandemic, and Kodak's ability to effectively
• The impacts of the war in Ukraine and the international response thereto
on Kodak's business and operations, including the cost of and availability
• Changes in foreign currency exchange rates, commodity prices, interest
• The impact of the investigations, litigation and claims arising out of the
circumstances surrounding the announcement on July 28, 2020, by the U.S.
International Development Finance Corporation of the signing of a
nonbinding letter of interest to provide a subsidiary of Kodak with a
potential loan to support the launch of an initiative for the manufacture
of pharmaceutical ingredients for essential generic drugs;
• Kodak's ability to effectively anticipate technology and industry trends
and develop and market new products, solutions and technologies, including
products based on its technology and expertise that relate to industries
in which it does not currently conduct material business;
• Kodak's ability to effectively compete with large, well-financed industry
• Continued sufficient availability of borrowings and letters of credit
under the Amended ABL Credit Agreement and L/C Facility Agreement, Kodak's
• Kodak's ability to effect strategic transactions, such as investments,
acquisitions, strategic alliances, divestitures and similar transactions,
or to achieve the benefits sought to be achieved from such strategic
• The potential impact of force majeure events, cyberattacks or other data
security incidents that could disrupt or otherwise harm Kodak's
Consolidated revenues in the three and six months ended June 30, 2022 were $321 million and $611 million, respectively, improvements of $30 million and $55 million when compared to the three and six months ended June 30, 2021, respectively (10% improvement in each period). Currency impacted revenue unfavorably in the three and six months ended June 30, 2022 compared to the three and six months ended June 30, 2021 ($19 million and $29 million, respectively).
The extent to which the military conflict in Ukraine will impact the global economy and Kodak's business and operations remains uncertain. Kodak may continue to face further supply chain disruptions and increased costs.
• Focus product investment in core competency areas of print and advanced
materials, leveraging Kodak's proprietary technologies to deliver
technologically advanced products in the product goods packaging, graphic
• Grow revenues through a focus on customers across Kodak's print divisions,
• Promote the use of film and expand the applications of Kodak's film and
• Continue to streamline processes to drive cost reductions and improve
A discussion of opportunities and challenges related to Kodak's strategy follows:
• Traditional Printing's digital plate products include traditional digital
plates and KODAK SONORA Process Free Plates. SONORA Process Free Plates
allow Kodak customers to skip the plate processing step prior to mounting
plates on a printing press. This improvement in the printing process saves
time and costs for customers. Also, SONORA Process Free Plates reduce the
environmental impact of the printing process because they eliminate the
use of chemicals (including solvents), water and power that is otherwise
required to process a traditional plate. The segment is experiencing
challenges from higher prices and availability of raw materials, digital
substitution and competitive pricing pressures. Kodak seeks to mitigate
the impact of increases in manufacturing costs, including aluminum prices,
through a combination of surcharges and price increases, improved
production efficiency and cost reduction initiatives. In addition, Kodak
seeks to offset the impact of short-term and longterm market dynamics on
segment's total revenue. The PROSPER Inkjet Systems business is expected
to continue to build profitability. Kodak launched the PROSPER 7000 Turbo
Press in June 2022. The PROSPER 7000 Turbo Press enables commercial,
publishing and newspaper printers to compete more effectively with offset
and to shift more long run jobs from conventional printing processes to
• Advanced Materials and Chemicals is using Kodak's deep expertise in
chemistry and strengths in deposition and coating processes that come from
decades of experience in film manufacturing to work on new initiatives:
o Electric Vehicle ("EV")/Energy Storage Battery Material Manufacturing -
Coating of substrates is a critical aspect of manufacturing materials
for batteries and Kodak plans to capitalize on its expertise in coating
technology to develop opportunities in this area. Kodak is currently in
technologies. Wildcat has granted Kodak certain rights to negotiate a
production or licensing arrangement with Wildcat when and if Wildcat's
commercialize a carbonless fabric coating designed to offer superior
light management, from complete blackout to selective light filtering,
and coating compatibility with an unmatched range of fabrics. Kodak is
installing a production-scale coating machine to coat fabrics in Eastman
o Transparent Antennas - Kodak plans to leverage its proprietary copper
microwire technologies and highresolution printing expertise to
contractmanufacture custom transparent antennas for automotive,
commercial construction, and other applications requiring excellent
surfaces makes transparent antennas attractive for multiple enduse
unregulated Key Starting Materials for pharmaceuticals, to implement an
expansion into manufacturing Diagnostic Test Reagent solutions. Kodak
has started construction of a lab and manufacturing facility to
manufacture reagents for healthcare applications within an existing
• Film and related component manufacturing operations and Kodak Research
Laboratories utilize capacity at Eastman Business Park, which helps cost
absorption for both Kodak operations and tenants at Eastman Business Park.
(1) Consulting and other costs are primarily professional services and internal
(2) Consists of third-party costs such as security, maintenance and utilities
required to maintain land and buildings in certain locations not used in any
ADVANCED MATERIALS AND CHEMICALS SEGMENT
Kodak recorded less than $1 million of charges for the three and six months ended June 30, 2022 in Restructuring costs and other in the Consolidated Statement of Operations.
Kodak made cash payments related to restructuring of approximately $1 million and $3 million during the three and six months ended June 30, 2022, respectively.
Cash, cash equivalents and restricted cash $ 353 $ 423
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