Eastman Kodak Company (KODK) stock prices were up by 10.72% shortly after market trading commenced on June 2nd, 2021, bringing the price per share up to USD$8.40 early in the trading day.
Revenue and Cash Balance
Revenues for the first quarter of the fiscal year 2021 period ended March 31st, 2021 were down by USD$2 million as compared to the same quarter of the prior year. This is despite forecasts of a more significant difference. The end of the quarter saw KODK report a cash balance of USD$401 million, up from the USD$196 million reported as of December 31st, 2020.
GAAP Net Income
The quarter ended March 31st, 2021 reported GAAP net income in the amount of USD$6 million, up from the USD$111 million net loss reported in the same quarter of the prior year. This massive difference is largely attributable to a USD$167 million expense related to the increase in deferred tax valuation allowances for locations outside the U.S. Further consolidating the difference was income amounting to USD$53 million related to the variation in fair value of embedded derivatives in the Series A Preferred Stock and Convertible Notes.
Cash Performance Improvement
The company reported improvements in their cash performance for the first quarter of the fiscal year 2021, including enhancing working capital. Further consolidating their cash performance was an increase in the company’s cash balance through the conducting of several financing transactions that closed during Q1 2021.
Q1 2021 saw KODK focus on the growth in key product areas, including SONORA Process Free Plates volume and PROSPER annuities, each of which was up 8 and 12 percent respectively, as compared to the same quarter of the prior year. Concurrently, the company continues to evaluate strategies for the allocation of capital raised through financing activities to generate further growth.
Future Outlook for KODK
Armed with a solid liquidity position and a comfortable cash performance record for the quarter, KODK is keen to carry on its trajectory of success. With the regulations and government-mandated restrictions beginning to ease up, the company is keenly looking forward to capitalizing on opportunities presented to it in a post-pandemic economy. Current and potential investors are hopeful that management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.