Eastman Kodak Company
Q4 2020 Earnings Call Transcript

Published: 16 Mar 2021

[Operator:]

Ladies and gentlemen, thank you for standing by, and welcome to the Eastman Kodak Q4 2020 Earnings Conference Call. . I would now like to hand the conference over to your speaker for today, Paul Dils. You may begin.

[Paul Dils:]

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 Fourth Quarter and Full Year 2020 Earnings Call. At 4

[James Continenza:]

Welcome, everyone, and thank you for joining the fourth quarter investor call for Kodak. Beginning on Slide 4 fourth quarter results continue to be impacted by COVID-19. As the pandemic continues to present challenges for the company around the world, the company was able to mitigate some of its impact through cost savings, including furloughs and pay reductions. Dave will provide more detail on the company's results shortly. Key Kodak achievements for 2020. Ended 2020 with $196 million of cash and cash equivalents. Generated cash in third and fourth quarter for 2020. Again, as I keep saying, we're going to continue to focus on free cash flow. We're going to grow our way out of this, not cut our way out of it. Reduction in net debt by $368 million compared with March of 2019. #1 priority was to maintain the safety of our employees and our customers during this pandemic. Continue to invest in our business. Again, we won innovation awards in print and digital packaging business. The customer-first model, the One Kodak model, this approach is clearly paying off for us. Materially fixed our balance sheet and financial foundation. We've been talking about that for a couple of years. Let's fix the foundation. Let's get hold of our debt. Let's find a path forward. Let's recapitalize and then raise growth capital as we find our path. Those have been the steps over the last couple of years, and we're proud to say that we're heading in the right direction.

[David Bullwinkle:]

Thanks, Jim, and good afternoon. Before I get into the details for the quarter, I would like to comment on a series of important financing transactions that occurred in the first quarter of 2021.

[James Continenza:]

Thank you, Dave. In summary, with a stronger capital structure and financial position, our 2021 priorities for Kodak include

[David Bullwinkle:]

Yes, Jim. Earlier this evening, Kodak filed 2 shelf registration statements following the filing of the 2020 Form 10-K. These replaced 2 existing shelf registrations that have been withdrawn. Under one of the new registration statements, the company will have the flexibility to issue and sell up to $500 million of securities, which is approximately $350 million less than the previous registration statement. The second new registration statement registers the resale of common stock issuable under the new convertible securities issued on February 26 as well as the outstanding common stock previously registered and the 1 million shares of common stock issued on February 26. The shelf registration statement relating to the Series A preferred stock and the common stock issuable upon its conversion has been withdrawn as the Series A preferred stock has been retired. The new registration statements will not become effective until any necessary SEC review has been completed. Thanks, Jim.

[James Continenza:]

Thank you, Dave, and thank you to the listeners for attending the call and for your continued interest in Eastman Kodak. This concludes our call for today. Have a great week.

[Operator:]

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.