Jim Continenza - Executive Chairman Dave Bullwinkle - Chief Financial Officer Paul Dils - Chief Tax Officer, Director of Investor Relations

Ladies and gentlemen, thank you for standing by and welcome to the Eastman Kodak Q4 2019 Earnings Conference Call. At this time all participants’ lines are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference may be recorded. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Mr. Paul Dils. Thank you. Please go ahead, sir.

Thank you and good afternoon everyone. I am Paul Dils, Eastman Kodak Company’s Chief Tax Officer and Director of Investor Relations. Welcome to Kodak’s fourth quarter 2019 earnings call. At 4:15 p.m. this afternoon Kodak filed its annual report on Form 10-Q and issued its release on financial results for 2019. You may access this presentation and the webcast for today’s call on our Investor Center at investor.kodak.com. During today’s call we will be making certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. All forward-looking statements are based upon Kodak’s expectations and various assumptions. Future events or results may differ from those anticipated or those expressed in the forward-looking statements. Important factors that could cause actual events or results to differ materially from these forward-looking statements include among others, the risks, uncertainties and other factors described in more detail in Kodak’s filings with the U.S. Securities and Exchange Commission from time to time. There may be other factors that may cause Kodak’s actual results to differ materially from the forward-looking statements. All forward-looking statements attributable to Kodak or persons acting on its behalf only apply as of the date of this presentation and are expressly qualified in their entirety by the cautionary statements included or referenced in this presentation. Kodak undertakes no obligation to update or revise forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. In addition, this release just issued and the presentation provided contains certain measures that are deemed non-GAAP measures. Reconciliations to the most directly comparable GAAP measures have been provided with the release and within the presentation on our website in our Investor Center at investor.kodak.com. Speakers on today’s call are Jim Continenza, Kodak’s Executive Chairman; and Dave Bullwinkle, Chief Financial Officer of Kodak. I will now turn the call over to Jim.

Thank you, Paul. Welcome everyone and thank you for joining the fourth quarter investor call for Eastman Kodak. Turning to slide four, 2019 was a breakthrough year for Kodak. We ended the year 2019 with $233 million of cash and cash equivalents, flat when compared to 2018, the first time in several years we have been burned $90 million to $100 million. We are expecting to burn close to $140 million to $160 million and we really inked them down and took out the appropriate cost, shut down divisions that were not profitable. We got focused on what we do best with what’s in our DNA and part of that settlement was we completed the sale of the Flexographic Packaging Division, the issuance and sale of $100 million aggregate principal amount of a 5% secured convertible notes due in 2021; repaid in full $395 million of the First Lien Term Loans; established a strategic relationship with the People Republic of China and Lucky HuaGuang Graphics. We're going to call this growth and profitable revenue a smart revenue. You'll hear it referred to sometimes in the future. Volumes for Kodak SONORA Process-Free Plate grew by 22%. Again Kodak [inaudible] continued to be great stewards of the environment also and annuity revenue for Kodak PROSPER grew by 5%. All this key steps as we try to realign the new organization that we've been talking about. Before we could get into the new organization, we had to stabilize the balance sheet and the foundations of the business and focus on what we do. The new organization structure for 2020 will leverage our technology in core print, advanced materials and chemicals. That is what Kodak does, so when I ask what does Kodak do? One more time, print, advanced materials and chemicals. Effective January…

Thanks Jim and good afternoon. Today the company filed its Form 10-K for the year ended December 31, 2019 with the Securities and Exchange Commission. As always, I recommend you read this filing in its entirety. The company generated positive cash flow in the fourth quarter of 2019, and had breakeven cash flow for the full year 2019, which reflects benefits from working capital improvements and individual transactions which occurred during the year. The company will remain focused on cash generation in 2020. I will now share further details on the full company results, operation of EBITDA and cash flow for 2019. Please note the results of Flexographic Packaging Division have been reported as discontinued operations in 2019 and the comparable 2018 periods due to the sales division in April of 2019. Additionally, certain amounts have been reclassified for the curtain and prior year periods due to assets held for sale reporting requirements related to the HuaGuang transaction. On slide seven, as we reported in our earnings release, net income for 2019 on a U.S. GAAP basis was $116 million compared to a net loss of $16 million in 2018. 2019 results include a net gain on sale of the FPD business of $214 million, non-cash changes in workers compensation and legal reserve adjustments of $3 million, expense of $4 million related to trade name impairments and the related changes in the fair value for the derivatives embedded in the Series A Preferred Stock and convertible notes of $42 million. The 2018 results include $11 million associated with non-cash changes in workers compensation and legal reserves and the benefits of $16 million related to the Korean withholding tax refund. The 2018 results also include expense of $13 million related to a trade name impairment, driven by the sale of FPD.…

Great! Well, I’d like to thank everyone for dialing in. Again, it was one of our best years in a long time and it’s starting the foundation of the new Kodak and we are excited on the path we are going. So thanks again for dialing in. We appreciate it. Take care and stay safe. Good Bye!

Ladies and gentleman, this concludes today's conference call. Thank you for participating. You may now disconnect.