Kodak Financial Situation

[Alan Edward Klein]

Interesting and well-done video on the background and current situation of Kodak. Apparently, they do $75 million in film sales just a small part of their overall sales. This amount does not include Alaris sales who distribute Eastman Kodak film.

 

[MattKing]

According to the video, the $75 million in 2022 revenue (December31st year end) includes the revenue from motion picture film they sell directly or sell to retailers/distributors, and the film they sell wholesale to Kodak Alaris.
Again according to the video, Kodak Alaris' annual revenue from film sales to lower level distributors was $30 million dollars for the year ending on March 31, 2022.
$75 million was approximately 6% of Eastman Kodak's revenue.

 

[Alan Edward Klein]

I thought he said $25 million. I stand corrected.

 

[Paul Howell]

At one time Kodak was a 2 billion dollar business.

 

[miha]

@Alan Edward Klein, thanks for sharing the video, most interesting!!

 

[Film-Niko]

Thanks for posting that, Alan.
The author has put a lot of work in that video, and made a very good job.
Meanwhile there are hundreds of film photo youtubers on youtube. With countless videos. Lots of quantity, but unfortunately not so often real good quality. And too much clickbait (but that is the general problem on youtube).

 

[MattKing]

At one time Kodak was a 2 billion dollar business.

And now Eastman Kodak is approximately a 1.2 billion dollar business - with a relatively small percentage coming from photography.
FWIW, the August 8, 2023 update to the Eastman Kodak financial statements indicate that the Advanced Materials and Chemicals segment - which includes film - had six month revenues of $133 million.
My biggest concern/skepticism with the video is that, to the best of my knowledge, Eastman Kodak doesn't share what portion of the Advanced Materials and Chemicals revenue relates to film or photography. Same applies to Kodak Alaris and film, although the "Kodak Moment" segment is, at least, all about photography.

 

[Film-Niko]

FWIW, the August 8, 2023 update to the Eastman Kodak financial statements indicate that the Advanced Materials and Chemicals segment - which includes film - had six month revenues of $133 million.
My biggest concern/skepticism with the video is that, to the best of my knowledge, Eastman Kodak doesn't share what portion of the Advanced Materials and Chemicals revenue relates to film or photography. Same applies to Kodak Alaris and film, although the "Kodak Moment" segment is, at least, all about photography.

Very important points! Thanks for posting!

 

[Alan Edward Klein]

According to the video, the $75 million in 2022 revenue (December31st year end) includes the revenue from motion picture film they sell directly or sell to retailers/distributors, and the film they sell wholesale to Kodak Alaris.
Again according to the video, Kodak Alaris' annual revenue from film sales to lower level distributors was $30 million dollars for the year ending on March 31, 2022.
$75 million was approximately 6% of Eastman Kodak's revenue.

Since Kodak Alaris film sales of $30 million to lower level distributors would include the cost of their film purchases from Eastman Kodak, that has to make Kodak sales to Alaris something less than $30 million, what, $15 million, let's say. That's a small portion of the $75 million in total motion picture and customer film sold by Eastman Kodak. Didn't I hear in the video that Kodak made a $15 million profit on film? SOmething about all these numbers that doesn't seem right.

Also, maybe Eastman Kodak is hiring all those new employees to make Fuji film for Fuji.

 

[MattKing]

Only if you trust the accuracy of those numbers in the video.

 

[MattKing]

Here is the link to the Earnings Call presentation - no reference as far as I can see to the photographic film numbers: https://investor.kodak.com/static-files/ba22eea4-f355-4d36-aaf0-73428e2e9d58
I did not participate in the conference call

 

[JParker]

Only if you trust the accuracy of those numbers in the video.

And I don't trust those numbers. Certainly too low. He has probably made a mistake. Because the presented numbers contradict what Kodak has said in the last years. If you look alone at the number of workers in the film production, that must be at least 700 now, probably more. Then look at the latest job descriptions they have published for hiring new staff, and the published wages. And if you calculate all that, the result is, you would need the mentioned 75 million $ revenue almost for wages alone.

 

[cmacd123]

And I don't trust those numbers. Certainly too low. He has probably made a mistake. Because the presented numbers contradict what Kodak has said in the last years. If you look alone at the number of workers in the film production, that must be at least 700 now, probably more.

Since Eastman Kodak is required to publish an Acurate, audited annual report, the logical thing to do would be to get it from the Source. https://investor.kodak.com/financial-information/annual-reports

Most of these things have more of the interesting things located in the footnotes. and figures are often stated in Millions of Dollars.

the second quarter is also here. https://investor.kodak.com/node/20246/html

in fact all the love letters that Kodak must file with the US Government are Here. https://investor.kodak.com/financial-information/sec-filings

 

[MattKing]

The problem with all the Eastman Kodak official filings is that they don't break out photographic film from the Advanced Materials and Chemicals segment.
For example, that segment includes revenues from things like flexible circuit boards and production of non-photographic products using Estar base.

 

[cmacd123]

exactly, that is common with all investor documents. the acountants want to keep the SEC and Ontario Securites commission for Canadian Companies happy BUT they don't want to disclose anything a competitor could use.
what we can tell is Film is not a big part of the company. (and I think that enetertainment film is almost broken out)

many compaies will also reshufffle their market segments form time to time to further confuse the details.

 

[Alan Edward Klein]

Here is the link to the Earnings Call presentation - no reference as far as I can see to the photographic film numbers: https://investor.kodak.com/static-files/ba22eea4-f355-4d36-aaf0-73428e2e9d58
I did not participate in the conference call

Profits and sales going down from previous year is not good especially when you consider Covid was around more then.

 

[MattKing]

Profits and sales going down from previous year is not good especially when you consider Covid was around more then.

UH, profits/Net Income went up ($35 million vs. $12 million), on a comparative basis, for the quarter in question.

 

[Oldwino]

Not sure if this has been posted elsewhere, but it is a worthwhile use of your time. Very interesting and seemingly well researched.

 

[jvo]

yes... very worthwhile and interesting story with the facts!

 

[BrianShaw]

Has been under discussion in another thread:

Kodak Financial Situation

Interesting and well-done video on the background and current situation of Kodak. Apparently, they do $75 million in film sales just a small part of their overall sales. This amount does not include Alaris sales who distribute Eastman Kodak film.

www.photrio.com

 

[MattKing]

Threads merged

 

[mshchem]

Kodak is doing fine. As long as the economy doesn't tank there's good money in the graphics world. Just don't make a "coin"

 

[Alan Edward Klein]

UH, profits/Net Income went up ($35 million vs. $12 million), on a comparative basis, for the quarter in question.

You're right about profits/net income. They went up in both first and second quarters of 2023, an error on my part. I should have just said sales went down in the first two quarters of 2023. When you adjust for inflation, even profits are very weak.

From photo film perspective, I only saw the CEO's very wordy comments about the Oppenheimer movie helping them so much with Hollywood film sales. Not sure how one picture does that. However, he said nothing about increasing volume of Kodak consumer film sales that would concern us. They said elsewhere on the web that they were hiring to expand the consumer film production. Did I miss the CEO mentioning that in the report. If he didn't, why didn't he? That seems like an important statistic if true.

 

[Alan Edward Klein]

Kodak is doing fine. As long as the economy doesn't tank there's good money in the graphics world. Just don't make a "coin"

I think their biggest threat is if they get hit bad in their other markets. Film is a very small part of their sales. Loans, debt, and competition in other markets could tank them. That would affect film.

 

[MattKing]

Did I miss the CEO mentioning that in the report. If he didn't, why didn't he? That seems like an important statistic if true.

Important to us here.
But not particularly to shareholders, investors and lenders - given the relatively small proportion of Eastman Kodak's business that relates to photographic film.
Comments on Financial Statements generally aren't directed to customers for one of the corporation's niche products. They are directed to the money people.