Eastman Kodak reported its fourth-quarter results for 2013, and its full year, which represent the company’s first set of results since exiting Chapter 11 protection in September 2013. The Rochester-based company showed improved margins and reduced losses, but experienced slightly lower sales than expected for the full year.
Kodak’s full-year operational EBITDA of $160 million in 2013 (all financial figures are in U.S. dollars) was an improvement by $375 million, excluding what the company defines as fresh start and other accounting adjustments.
Total net earnings for the full year were $1.99 billion, including a reorganization items net gain of $2.01 billion, as well as a gain of $535 million related to the sale of the digital imaging patent portfolio, partially offset by a $77 million non-cash goodwill impairment charge. In 2012, there was a net loss of $1.38 billion. Kodak’s fourth quarter net loss was reduced from $402 million in 2012 to $63 million in 2013.
Sales for 2013 declined from the prior year by 14 percent to $2.35 billion. The company had projected 2013 revenue to come in at approximately $2.5 billion. Kodak states its lower than expected sales volume is the result of prioritizing profitable opportunities over sales volume. The company also noted that its sales of motion picture film and consumer inkjet printer ink continued to decline.
Full year 2013 gross profit margin improved year-over-year by ten percentage points, reflecting primarily increased contribution from non-recurring intellectual property arrangements, product mix improvements, and cost reductions.
“I am excited about the strong increases we are seeing in revenues from our emerging technology businesses that will create the foundation for Kodak’s future growth,” stated Jeff Clarke, who was introduced as Kodak’s new CEO on March 18, one day before the financial results were released.
Kodak reports its liquidity remains strong, as the year ended with $844 million cash on hand and debt of $678 million. Kodak currently estimates revenue in 2014 will total approximately $2.1 to $2.3 billion. The company anticipates year-over-year sales growth in its digital printing, packaging and functional printing businesses, as well as stability in its enterprise services and graphics communications businesses, and revenue declines for motion picture film and consumer inkjet printer ink sales.