Latest news with #KRIP
13-08-2025
- Business
145-year-old film company Kodak pushes back on reports it may shut down
The Eastman Kodak Company, the iconic printing and imaging company founded in 1880, is pushing back on reports that it may not be in business for that much longer. In its second quarter financial report, released Monday and picked up by several media outlets, Kodak said there was "substantial doubt about the Company's ability to continue as a going concern" after 145 years. Kodak said in the report that its gross profit fell about 12%, or $7 million, declining from $58 million in the second quarter of 2024 to $51 million in the second quarter of 2025, and that it had upcoming debt obligations that need to be fulfilled within the next year. However, in a statement to ABC News Wednesday, Kodak said it "is confident it will be able to pay off a significant portion of its term loan well before it becomes due, and amend, extend or refinance our remaining debt and/or preferred stock obligations." As the Wall Street Journal reported in November 2024, Kodak is ending its retirement income or pension plan for former U.S. employees to help reduce its debt. After pensioners are paid out what they are owed, the remaining funds would be directed toward existing debt obligations. In a statement included in Monday's second quarter financial report, Kodak CFO David Bullwinkle noted that the company expects to know by Friday, Aug. 15, "how we will satisfy our obligations to all [pension] plan participants, and we anticipate completing the reversion by December of 2025." "For the second half of the year, we will continue to focus on reducing costs today and converting our investments into long-term growth," he added. Kodak reaffirmed the move in its statement to ABC News on Wednesday. "To fund the repayment, we plan to draw on the approximately $300 million in cash we expect to receive from the reversion and settlement of our U.S. pension fund (the Kodak Retirement Income Plan, or 'KRIP') in December," the company said, adding that "once the KRIP reversion is completed Kodak will be virtually net debt free and will have a stronger balance sheet than we have had in years." Kodak first flagged the going concern notice in a Securities and Exchange Commission filing in June. The term "going concern" simply means that a business is expected to be able to fulfill all its financial obligations and continue operating as usual for the foreseeable future, or at least the next 12 months. "As of the date of issuance of these financial statements, Kodak has debt coming due within twelve months and does not have committed financing or available liquidity to meet such debt obligations if they were to become due in accordance with their current terms," the company stated in the June 30 filing. "These conditions raise substantial doubt about Kodak's ability to continue as a going concern." For years, Kodak had enjoyed a storied history and was credited with various groundbreaking milestones, including the invention of the world's first digital camera in 1975, and for holding 79,000 worldwide patents. In recent decades, the company has struggled to adapt to the shift from film to digital photography, filing for bankruptcy in 2012.
UPI
12-08-2025
- Business
- UPI
Q2 earnings show uncertain future for Kodak
A person uses a Kodak disposable camera in October 2012. Eastman Kodak company officials said on Tuesday that there's "substantial doubt" over the company's future after 2025's second-quarter financial results. File Photo By Pat Benic/UPI | License Photo Aug. 12 (UPI) -- The New York-based Eastman Kodak company says there's "substantial doubt" over its future after 2025's second-quarter financial results pictured a negative future for the once-renowned camera and film brand. Kodak ended the quarter with a $155 million case balance but lost $46 million from December of last year as company revenue decreased by $4 million with a $26 GAAP net loss for the quarter, according to a corporate report. "These conditions raise substantial doubt about the company's ability to continue as a going concern," Kodak wrote in its filing. Company officials explained in the report that losses were due to capital expenditures and effects of higher costs. They added it was compounded by changes in the 133-year-old Kodak's working capital and lower profitability. "In the second quarter, Kodak continued to make progress against our long-term plan despite the challenges of an uncertain business environment," Kodak CEO Jim Continenza stated in the earnings release. Kodak's slow downfall arrived on the heels of years of layoffs, long-existing issues over the company's pension and retirement plan and failed attempts to expand via global investments in the Japanese market. Tuesday's news also comes months after the Rochester company announced it will terminate pension plans and use proceeds to pay down debt, which Kodak executives said is "progressing as planned." Officials at Eastman Kodak noted that some of the language deployed in its reporting was "essentially required disclosure because Kodak's debt comes due within 12 months of the filing." "Kodak is confident it will be able to pay off a significant portion of its term loan well before it becomes due, and amend, extend or refinance our remaining debt and/or preferred stock obligations," a Kodak spokesperson told News 8 in New York. The company will begin to draw on some $300 million in December from its "KRIP" pension fund settlement in order to fund the repayment, the spokesperson said. But the KRIP reversion is, according to Eastman Kodak, not solely within Kodak's control and "therefore is not deemed 'probable' under U.S. GAAP accounting rules, which is what triggered the 'going concern.'" "Once the KRIP reversion is completed Kodak will be virtually net debt free and will have a stronger balance sheet than we have had in years." Meanwhile, Eastman Kodak's stock shares dived on Tuesday more than 25% by midday trading.
