Eastman Kodak Co. (NYSE:KODK) released the earnings results from its third quarter after closing bell tonight, posting net earnings of $19 million, compared to $1.99 billion last year, on sales of $564 million, a $1 million increase year over year. Last year’s net earnings benefited from a reorganization gain of $2.21 billion during that quarter.
This marks the first profitable quarter for Eastman Kodak since it emerged from bankruptcy.
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Key metrics from Eastman Kodak’s earnings report
The company reported operational EBITDA of $89 million, an increase from $42 million in the same quarter last year. Eastman Kodak said strong sales increases in some of its products and also higher licensing payments for its intellectual property drove its strong third quarter results. The company reported $43 million in declines in its Consumer Inkjet and Entertainment Imaging films business.
Eastman Kodak reported strong growth in digital plats and CTP platesetter products and continued growth in sales of its KODAK SONORA Process Free Plates. The company also reported strong sales of its KODAK FLEXCEL NX packaging system and noted more than 50% growth in the number of pages printed on its KODAK PROSPER systems.
Sales by segment
Sales in the company’s Graphics, Entertainment and Commercial Films segment rose 13% year over year to $400 million in the quarter as motion picture film sales fell significantly but were more than offset by licensing revenue. Sales in Eastman Kodak’s Digital Printing and Enterprise Segment fell 17% to $164 million due to a decline in the Consumer Inkjet business.
“Our first profitable quarter since our emergence is a milestone,” said Eastman Kodak CEO Jeff Clarke in a statement. “Strategic technology product areas, especially in our graphics business, are showing momentum, and we continue to invest significantly in our technology and to build our installed base. However, Kodak continues to operate too closely to our breakeven point. While our costs are down, we will continue to reengineer processes, streamline our organization, and improve execution and accountability to accelerate and broaden our momentum.”
Eastman Kodak maintains guidance
Management said they continue to be on track to meet their previously provided guidance. They expect full year revenue to be between $2.1 billion and $2.3 billion. They project operational EBITDA of between $145 million and $165 million. They reported a cash balance of $744 million as of the end of the third quarter.