EASTMAN KODAK CO Q3 FY2024 earnings call

• Committed to executing long-term plan, investing in innovation and operational efficiency.
• Revenue decline in Q3 2024 was within expectations. Gross profit at 17% in 2024, down from 19% in 2023 due to factors like tariffs, subsidies, and cost changes.
• Advanced Materials and Chemicals (AMC) segment growing with initiatives like film manufacturing, reagent facility, and substrate coating for EVs.
• Film sales increased in motion picture and still film; a November shutdown for plant modernization to invest in manufacturing process.
• Eastman Business Park infrastructure heavily invested in, with buildings reopened.
• ITC affirmative decision on plates tariff, giving Kodak a level playing field for U.S. printers.
• Massive four-year apprentice program in Rochester, training highly skilled workers.

For the third quarter of 2024, revenue was $261 million, down from $269 million in the third quarter of 2023, a decline of 3%. Gross profit was 17% in 2024 compared to 19% in the third quarter of 2023. For the nine months ending September 30, 2024, revenue was $777 million, down from $842 million in the prior year period, a decline of 8%. Gross profit percentage for the nine months was 20% compared to 19% in the prior year period. The Advanced Materials and Chemicals (AMC) segment includes film, chemicals, substrate coating for EVs, reagent facility, and cGMP clean lab. Film sales have increased in motion picture, still film, etc. The Eastman Business Park has seen significant infrastructure investment with buildings being reopened.

• Revenue decline in Q3 2024 was within expectations and right where anticipated.
• Continue to invest in AMC, growth initiatives, battery technology, reagent facility, and cGMP clean lab.
• Plan to keep investing in film despite November shutdown for modernization, if customer commitment to film continues.
• Focus on maintaining strength of foundation to fund ongoing operations and invest in growth opportunities.

• Factors causing actual results to differ from forward-looking statements include risks in Kodak's SEC filings, such as uncertainties related to tariffs, subsidies affecting gross profit, and impact of non-cash changes in employee benefit reserves.
• Operational EBITDA impacted by lower volumes, higher manufacturing costs, inventory reserve adjustments, changes in employee benefit reserves, and costs from litigation matters.

Q: Will there be a formal Q&A during the call?

A: We will not be holding a formal Q&A during today's call. As always, the Investor Relations team is available for follow-up.