Eastman Kodak Reported Astonishingly Good Quarterly Results

The Gross margin expanded by 114 bps to 14.3%.

Eastman Kodak reported a net income of $24 million, compared to the loss of $541 million in the previous year.

Operational EBITDA for FY21 improved to $11 million, from a negative $1 million in FY20. The increase was primarily the result of improvement in revenue and manufacturing costs from increases in volume partially offset by ongoing global cost increases in 2021. KODK cash used in operating activities for FY21 totaled $47 million, compared to $35 million in FY20. Kodak ended the year with $362 million in cash, as of December 31, 2021.

Eastman Kodak FY GAAP net income of $24 million, compared with a net loss of $541 million for 2020. “Kodak continued to navigate through an unusually challenging business environment in 2021 and delivered revenue growth in all our segments for the first time in years,” said Jim Continenza, Kodak’s Executive Chairman and CEO during the conference call.

According to David Bullwinkle, Kodak’s CFO, "The Company ended 2021 with $362 million in cash, showing an increase of $166 million from December 31, 2020. The Company’s balance sheet is the strongest it has been in years due to the execution of our strategy. We continue to execute on our plan by driving increases in cost efficiency through automation and process innovation and redesign."

KODK shares are trading higher by 0.955 at $4.24 during today’s premarket session. Despite Kodak has seen a long decline in revenue and share price, the company installed the largest computer-to-plate imaging system in the world, which makes this stock at multiples of P/S to the tune of 7X and P/S at around 0.5X an extremely attractive story with an excellent entry point.