Q1 2020 Earnings Call
Ladies and gentlemen, thank you for standing by welcome to the Eastman Kodak Q1, 2014 earnings conference call at this time all participants.
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The presentation there will be a question answer session. That's the question during the session will read the press Star then 100 telephone.
You're acquiring for assistance. Please press Star then zero.
The conference over to the game Aldo.
Please go ahead.
Thank you Jimmy and good afternoon, everyone.
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Form 10-Q, and you should see.
That's correct.
During today's call.
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Certain factors that could cause actual results.
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Yes, yes.
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Well maybe better.
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With that.
Oh circumstances.
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In addition, the release just issued.
Presentation.
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Uh huh.
Speakers on today's call.
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Yep, Yep, Chairman and chief.
Chief Financial Officer Cool.
I will now turn the call altogether.
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Relates to decide you.
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Great. Thank you.
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For the first finding many years not losing.
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I need to provide or used truck, which ones they didn't like.
Most of you keep doing.
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And introducing new products and capabilities going back to where do you.
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We remain committed to.
Well despite.
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We continue to grow.
Yes.
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Worldwide.
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No.
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We're also losses, so you follow.
They'll be a preferred leaner and use that old tuck in deals close we'll be launching.
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Germany and obviously.
The shows the blade to old news, we're still moving forward with the bottom you need to document will be lucky.
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This is a hardware as well there could be very seriously.
We need.
They have made money like making sure that are important decision.
No. There was we thought we were dealing with clinical disease Deactivations, They do not show.
We are leveraging our debt materials in chemicals.
That's actually get the T.C. diff and.
Not to be supportive.
Providing <unk>.
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Usually our Daisy.
PB like the shields well so.
Looking in favor of P.T.V. Mickey.
Three.
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Other products these alternatives.
Every time, you said you don't break even Fred you don't know there would be lumpy on a lot of these over the years dumping gets a lot I feel goldman nicely together.
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Based on the knowledge you everyday to make sure you got to do the wheels Brian.
You also get something done to blow by when other policy in place and making sure that you have capabilities Oh before.
So a lot of more deeply into though.
We are.
We do think that caused you to Delaware industries.
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Actually early on.
And any government data using the program you will probably be going against.
Unfortunately, most of the really is yearning for small business.
Got it doesn't look like a multi year warranty.
Well, we thought it would apply with global multinational company.
Got it will put the stuff that you don't have a lot about the Jews, we're going you probably would be deal.
And again based on data we've done over the last 18 months allows us to make it through.
But he was going down there and then and you made the decision.
Oh, we're showing the safety learned poised to.
We continue to do that.
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Well you can they should be able to work environment that is number one we're also looking to offer customers.
We have also base yield somewhat fields.
There's also you still got lucky to hospitals.
We are you considering it so it's really easy to ban.
And we don't really managing our cost the deal flow.
Well get involved you do Joel can you give imagine when you get into these circumstances everybody's logo.
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He is doing.
But again these pandemic facilities.
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Thanks, Jim and good afternoon.
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Before we get into details from the quarter I'd like to make a few comments regarding <unk>.
And then impacts.
Oh, good 19 pandemic did not have children.
Yeah.
However sales.
Second quarter.
To be negatively impacted and collections of accounts receivables are expected to slow big impact.
Good day production.
The company has been either.
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He worked closely with government officials in situations, where we operate.
Sure.
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The next endeavor.
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Tech employees worldwide.
They do in the Houston, those working plan and distribution facilities.
We intend to do the work with government.
Please see measures so the manufacturing and distribution products during the pendency can continue.
However, uncertain.
Good.
She destruction code, that's operations and supply chain as.
As such the reducing operating costs and some temporary.
He reductions employees as well.
Well operations negatively impacted by the code 90 Penn.
Additionally, we need to score the government crop will begin to respond to recorded 19 pandemic.
Introduction of economical program.
The vast majority of government.
Even when the deals.
Well into the health care.
Kodak is implemented governed under which we are oh.
These are primarily.
Hello.
In job pension system.
HM.
Had very little impact in the first quarter and most programs operation.
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Employee retention would they be is available to queued up in some countries <unk>.
Job attention leaves subs.
Social benefits.
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Non each other they.
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Whatever you know.
Government subsidized loan programs.
We are continuing to explore eligibility and jurisdictions such as of yet.
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Durations in scope of code.
Sure Bob.
Correct.
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<unk>.
We need be eligible.
I will now chip.
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Hmm and catch them.
This quarter.
Turning to slide side.
As we recorded do not receive so the first quarter of 2020.
Reported revenues of $267 million.
The decline.
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On a constant currency basis revenue declined by $20 million.
During the first quarter.
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Yeah.
New revenue and profit declined by <unk>.
Because it's critical to the market downtime related to the <unk> 19, and then.
We continue to best unsecured theories ULTRASTREAM advanced materials, which will lead to the new product introductions she nuclear earlier.
On the U.S. GAAP basis reported a net loss of $111 million.
Compared to last $18 million prior year quarter.
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The income of $53 million an expense amendment.
The.
Ladies.
Value <unk> embedded into a preferred stock.
The first quarter 2020, <unk> also includes the impact of the treatment.
$10 million.
Decrease in accounts receivable reserve $4 million.
And $167 million non cash expense as a result.
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She allowances.
Outside.
Exactly.
You are difficult to predict president.
It is creating a high degree of uncertainty in the future profitability individual.
Around the world.
And he previously stated the company continues to be focused on generating positive cash by managing.
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And as such.
You didn't do jurisdiction themselves.
Therefore.
Your life.
Deferred tax assets outside the U.S. involves certain which results in the valuation allowances death.
Excluding these current and prior year items.
2020.
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There are two last $17 per year.
Operational EBITDA for the quarter was a negative.
Compared to amend and $5 million prior quarter.
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<unk> second quarter was a negative <unk> million dollars or decrease of $1 million from prior year cool.
Entering into 2020, the company had initiated actions to reduce operating expense expenses by approximately $40 million city.
These actions.
Bye.
Progress towards positive cash so.
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However.
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Do you come in a cost actions implemented lead in second quarter.
We expect these impacts starts to be visible.
Second quarter.
Moving on to the company cash performance presented on slide six.
The company ended the first quarter.
$209 million and cash cash equivalents, a decrease of $24 million from Senate races.
Cash used in operating activities was $41 million.
[music] capital over $6 million and a decrease in other liabilities and setting.
Accounts payable increased by $1 million inventory increased by $26 million.
<unk> decreased by $19 million compared to December 31st 29.
As I mentioned earlier accounts receivable collections, which slowed inventory levels elevated compared to expectations.
Yeah listen closely with our customers and suppliers.
Sure.
In addition gets used for the reduction of other liabilities.
Pension payments severance payments for restructuring actions.
I see an income tax payments and accrued interest.
First quarter 2020.
<unk> decreased.
In fact restructuring payments.
Hi reduction.
Cash used in best <unk>, <unk> $1 million this quarter as compared to $3 million prior year period.
Cash used in financing to be in Dallas quarter, compared to cash provided by financing activities of $3 million and prior year period.
That's correct.
Continuous focus on reducing the sticky catching on 20 in order to fund operations and our continued restructuring activities.
In the first quarter 2020, [laughter] catches redeemed.
$5 million due to our efforts, which included the amendment of our ATM facility during the quarter.
<unk> assets and every quarter.
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We will continue to focus on alternatives to reduce restrictions on cash.
Finally, as the schools.
We remain in compliance with.
Under our credit agreements.
Do you and I are not happy to take your questions.
Whose remind listeners of instructions.
Thank you as a reminder to ask a question when you Press Star then one under touched on telephone.
Oh your question from the Q. Please press the pound key.
Well, we compile the Q1 day roster.
And again, it's Star then one if you'd like to ask the question.
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Because I'm trying to questions in the queue at this time.
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They need a beauty <unk> home heating maybe talk to you do they called <unk>.
Leasing companies.
And more importantly, all the way they don't want.
You show up every day.
He's the factories in GB slightly working.
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This is up to do that <unk>.
The growth.
Getting what can they love.
So why wouldn't you say, but more importantly, one major they'll be lucky like.
Got it today.
Got it.
The goal good or bad in the medium consistency.
But that isn't vehicle.
Ladies and gentlemen, thank beer participation on today's topic. So there's a program of the May now disconnect.
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