Eastman Kodak is reporting its 2020 financial results, which included adjusted net income of $10 million for 2020, compared to a $36 million loss in 2019.
Sales totaled just over $1 billion, down about 17% from the $1.2 billion in revenues Kodak had in 2020.
“Kodak successfully managed through 2020 despite the challenges of the pandemic,” said Executive Chairman and CEO Jim Continenza during an investor call.
He also told investors on Tuesday the company used cost-saving initiatives, including the use of furloughs and pay reductions, and said it was able to generate cash in the third and fourth quarters.
But he also emphasized that in terms of coming out of the impacts of the pandemic, “We're going to grow our way out of this, not cut our way out of it.”
Continenza also talked about the recent financial transactions that he said will set the stage for growth through investments in Kodak’s core businesses including print along with advanced materials and chemicals.
Kodak officials recently announced a series of financial transactions it said would provide up to $310 million to help invest in growth opportunities. That includes a $100 million commitment from Grand Oaks Capital, an investment firm started by Paychex founder and philanthropist Tom Golisano.
The company said that the additional liquidity provided through the recent investments eliminates "the substantial doubt about Kodak's ability to continue as a growing concern."
George Conboy from Brighton Securities noted that Kodak had positive cash flow in the second half of 2020, and he said that if the company can keep that trend going, 2021 could be a better year since the infusion of capital announced recently will allow management to focus on growing the business.
In terms of the 2020 financial report, Conboy said that when taking out certain one-time financial impacts, Kodak lost about $1 million last year, which he said really isn’t bad, considering the company’s total revenues.
“The interesting thing is that on an operational basis they lost about a million dollars. On a billion in sales, that’s practically break even on an operating basis, a good sign that maybe 2021 will be a better year for Kodak,” Conboy said.
