Speaking as the group announced its Q4 and year-end 2020 results, executive chairman and CEO Jim Continenza said he was “proud to say” he believed the business was now heading in the right direction.
“We have materially fixed our balance sheet and financial foundation. Let’s find our path,” he stated.
“We’re going to grow our way out of this, not cut our way out of it.”
As part of a series of financial transactions, at the beginning of this month Kodak agreed a new senior secured loan of up to $275m (£197.8m) with Kennedy Lewis Investment Management, and $100m investment from Grand Oaks Capital.
Chief financial officer David Bullwinkle said the new financing had strengthened Kodak’s ability to invest in strategic growth opportunities, and had also removed the previous question marks over its financial position.
“These transactions provide the company with approximately $210m of incremental cash to invest in growth opportunities in Kodak’s core businesses,” he said.
“The additional liquidity… eliminates the substantial doubt about Kodak’s ability to continue as a going concern.”
Continenza said the group’s customer first, “One Kodak” approach was “clearly paying off” and the business was excited to be able to focus on growth opportunities in 2021.
In calendar year 2020 sales fell by $213m to just under $1.02bn, and the firm effectively broke even at the operational EBITDA level, posting a $1m dollar loss compared to the prior year when it was $13m in the black.
Sales at the Traditional Printing division, Kodak’s biggest business unit, fell by $135m to $592m. Digital Printing sales were down by $52m to $241m, while Advanced Materials & Chemicals sales fell by $28m to $172m.
Cash balances increased in Q3 and Q4 and the group ended the year with $196m in cash, Bullwinkle said.
The overall net loss was $541m.
Kodak said that operational EBITDA was impacted by volume declines because of the Covid-19 pandemic, which were partially offset by cost savings including furlough schemes and pay cuts.
Sales of Kodak Sonora process-free plates were down by 6% for the year, while annuities for the installed base of Kodak Prosper high-speed inkjet devices fell by 7%.
Bullwinkle said that at the height of the crisis Sonora volumes crashed by 33% and Prosper revenues by 25%, but the business had seen some recovery of volumes in Q3 and Q4.
“We expect to continue to place our solutions with new and existing customers,” he stated.
Kodak said it continued to invest in its next-generation Ultrastream inkjet platform, and in advanced materials.
The results were announced after the close of trading yesterday. Kodak shares fell by 8.18% in after-market activity, to $8.75. (52-week high: $60, low: $1.50.)
