Latest news with #goingconcern
Forbes
6 hours ago
- Business
- Forbes
The Last Picture Show: Kodak Says Tales Of Its Demise Are Premature
Kodak has issued a statement rebutting 'misleading media reports' caused by the widespread furore over its future following its Q2 filing, which was interpreted as a warning that it could cease operations. The group said that this was not the case but rather that it had to include a going concern note with its quarterly update to comply with accounting rules, which prompted a flurry of headlines questioning Kodak's ability to stay in business. In fact, accounting rules required Kodak to make the disclosure because it has debts of around $500 million that will fall due within 12 months, and at the present time does not have committed financing in place or available liquidity to meet those obligations. However, Kodak is in the process of selling off its U.S. pension fund, with a deal expected to be completed by the end of the year, which would allow it to draw on the approximately $300 million in cash that it expects to receive from the reversion and settlement. But because this is not solely within Kodak's control, U.S. GAAP accounting rules required the addition of a line about its future as a going concern. In a social media statement, the company responded: 'Media reports that Kodak is ceasing operations, going out of business, or filing for bankruptcy are inaccurate and reflect a fundamental misunderstanding of a recent technical disclosure the company made to the SEC in its recently filed second quarter earnings report. 'These articles are misleading and missing critical context, and we'd like to set the record straight. The most important things to know are: Kodak has no plans to cease operations, go out of business, or file for bankruptcy protection.' Kodak Sales Down But things are not all rosy for Kodak. In the quarter to June 30, Kodak's sales fell 1% to $263 million and gross profit margins reduced from 22% to 19%. The net loss for the quarter was $26 million, compared with a net profit of $26 million the prior year, in part caused by higher aluminium and manufacturing costs. Those results and the announcement saw shares dip earlier this week before a partial recovery but the shock was still enough to wipe out small gains in the year-to-date made prior to the SEC filing. Founded in Rochester, New York in the late 1800s, Kodak became emblematic of the rise in personal photography but as the era of digital technology took over, the company struggled to remain relevant. Kodak at its peak employed more than 140,000 workers but now has a workforce of about 3,400 and is still struggling to recover from its failure to adapt to digital photography and the decline of film. Despite emerging from bankruptcy protection in 2013 and turning to commercial print, advanced materials and chemicals, the company's once dominant position in consumer photography seems a world away. Some Kodak protagonists have likened the company's struggles to those of Apple, which lost its way against rivals such as Microsoft before reinventing itself as a cool, multi-smart device brand. However, Apple's slump occurred while the computer industry was still relatively imature, whereas Kodak missed the boat when digital challengers and new technology emerged. Kodak Brand Remains Strong That said, in many parts of the world and notably the Gulf Region, Kodak remains a well recognised brand at print and photo stores, with high consumer awareness, while the retro camera trend of the past few years has also prompted a mini resurgence in the U.S. Kodak produced more than twice as many film rolls in 2019 as in 2015 and at last year's third quarter earnings call, Kodak CEO Jim Continenza said the company needed to upgrade its Rochester factory because it was experiencing such high demand for film. That growth has been driven in large part by Gen Z, which has turned to retro tech across genres including music, movies, toys and traditional film as younger people reject instant digital gratification. Using film cameras and developing film also plays into their desire for digital minimalism. Eastman Kodak bet wrong on the advance of digital photography and, more disastrously, the impact of the huge ascent of the smartphone, but Gen Z's desire for a simpler, digitally decluttered life could yet see a different picture emerge.
Gizmodo
3 days ago
- Business
- Gizmodo
Spirit Airlines Admits It Might Not Survive Another Year
Spirit Airlines has just admitted what many suspected: its future is in serious doubt. The news, delivered in a filing with the Securities and Exchange Commission on August 11, sent the company's stock into a freefall, plummeting 41% in a single trading session on Tuesday. Spirit's total market value now sits at a paltry $54.3 million. In the filing, the ultra-low-cost carrier said there is 'substantial doubt' about its ability to continue operating for more than 12 months from the date of its financial statements. Translation: Spirit could disappear by August 2026. The company used the expression 'going concern,' which is an official accounting term that a company is forced to use when it is in severe financial distress and may not have enough money to stay in business. It is one of the gravest signals a public company can send to its investors. The airline — famous for its bright yellow planes and no-frills service — only emerged from Chapter 11 bankruptcy in March after a failed merger with JetBlue. The regulators blocked the merger between the two airlines, arguing that the deal would eliminate a key competitor and drive up fares for consumers. Without the merger, a weakened Spirit was forced to file for Chapter 11 bankruptcy, which it only emerged from in March. But just months later, Spirit says it's still in a deep financial crisis. Spirit blames a brutal mix of factors: too much domestic airline capacity, weak demand for leisure travel, and a tough pricing environment that has dragged down revenue. The company reported a $246 million net loss in the second quarter of 2025. In its SEC filing, Spirit said the downturn is expected to last at least through the rest of the year, even after cost-cutting moves like selling spare engines in sale-leaseback deals, reducing discretionary spending, and furloughing pilots in July. But it hasn't been enough. The company admitted that its financial results are not improving fast enough to meet the minimum cash requirements of its debt agreements and, crucially, its credit card processing agreement, which expires at the end of the year. The airline is now in a last-ditch race for liquidity. It is considering selling off planes, real estate, and excess airport gate capacity. It is also in urgent discussions with its credit card processor, which has requested additional collateral to renew their contract, a deal Spirit cannot afford to lose. Time is running short. Without a dramatic turnaround or a new source of cash, one of America's best-known budget airlines could soon be grounded for good.
Associated Press
3 days ago
- Business
- Associated Press
Kodak cautions on business operations but remains confident it can meet debt obligations
The more than 130-year-old Eastman Kodak Co. is cautioning on its business operations, but says it is confident it will be able to work out upcoming debt obligations. 'Kodak has debt coming due within 12 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 wrote in a regulatory filing. 'These conditions raise substantial doubt about Kodak's ability to continue as a going concern.' The Rochester, New York-based company said that it had $155 million of cash and cash equivalents as of June 30, with $70 million held within the U.S. Kodak said in a statement on Tuesday that the going concern language in its regulatory filing is essentially a required disclosure because its 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,' the company said. Last year Kodak said that it would end its retirement income plan in order to pay down debt, according to The Wall Street Journal. Kodak Chief Financial Officer David Bullwinkle said in a statement on Monday that the company expects to know by Friday how it will satisfy its obligations to pay all pension plan participants and foresees completing the reversion by December. Founded by George Eastman in 1880, Eastman Kodak Co. is credited with popularizing photography at the start of the 20th century and was known all over the world for its Brownie and Instamatic cameras and its yellow-and-red film boxes. It was first brought down by Japanese competition and then an inability to keep pace with the shift from film to digital technology. Kodak filed for bankruptcy protection in 2012 after struggling with increasing competition, continuing growth in digital photography and growing debt. The company wound up selling off many of its businesses and patents, while shutting down the camera manufacturing unit that first made it famous. It received approval for its plan to emerge from court oversight a year later. At the time, Kodak was looking to recreate itself as a new, much smaller company focused on commercial and packaging printing. Kodak is now nearing completion on a manufacturing plant to create regulated pharmaceutical products. The company already makes unregulated key starting materials for pharmaceuticals. Production at the retrofitted facility is expected to start later this year.
CBS News
3 days ago
- Business
- CBS News
Kodak warns its business is in "substantial doubt" after 133 years
Kodak is warning that its future in business is looking very blurry. The iconic 133-year-old business cautioned Monday that there's "substantial doubt" about its ability to continue as a going concern because it might not have the financial resources to meet its future debt obligations, according to an Aug. 11 regulatory filing. A so-called going concern warning is an accounting term that signals a risk that a business might cease operations. Shares of Kodak plunged $1.73, or 26%, to $5.05 in Tuesday morning trading. Reached for comment, a Kodak spokesperson pointed to the statement in its regulatory filing. The warning is the latest development in the photography company's storied history, which includes introducing one of the first consumer cameras in the 1880s and mass manufacturing film rolls for hobbyists and professionals alike. But Kodak struggled to adapt when digital cameras overtook film starting in the 1990s, leading to a bankruptcy filing in 2012. Its current financial crunch is tied to almost $500 million in short-term debt obligations, as well as more than $200 million in pension liabilities. Last year, Kodak had said it would end its pension plan in order to reduce debt, according to the Wall Street Journal. Kodak should have "a clear understanding by Aug.15 of how we will satisfy our obligations to all plan participants," Chief Financial Officer David Bullwinkle said in a statement, referring to the pension plan. Rochester, New York-based Eastman Kodak, founded by inventor George Eastman in 1892, mass produced the famed Brownie and Instamatic cameras, popularizing photography as a pastime for generations of Americans. Its yellow-and-red film boxes were ubiquitous in photo shops and other retailers. Eastman said his goal was "to make the camera as convenient as the pencil," according to the Kodak website. But Kodak faced competition from Japanese companies including Fujifilm in the 1990s, as well as the shift to digital technology, leading to its filing for bankruptcy protection in 2012. The company wound up selling off many of its businesses and patents, while shutting down the camera manufacturing unit that first made it famous. It received approval for its plan to emerge from court oversight a year later. At the time, Kodak was looking to recreate itself as a new, much smaller company focused on commercial and packaging printing. Kodak is now nearing completion on a manufacturing plant to create regulated pharmaceutical products. The company already makes unregulated key starting materials for pharmaceuticals. Production at the retrofitted facility is expected to start later this year.
Yahoo
11-07-2025
- Business
- Yahoo
COIL : UPDATE ON THE REVIEW OF INTERIM FINANCIAL STATEMENTS
UPDATE ON THE REVIEW OF INTERIM FINANCIAL STATEMENTS As part of the interim review process, COIL has received a request for additional information from its statutory auditors regarding the going concern assumption. This request reflects a context of recurring losses and liquidity pressure currently being addressed by the Company. Brussels, 11 July 2025 (6:30pm) - As part of their review of the Company's interim financial statements, the statutory auditors have requested further information concerning the going concern assumption. This request comes in the context of significant losses recorded over recent years, notably due to stagnating turnover and high fixed costs, as well as liquidity pressure already identified and currently being addressed. The Company is actively implementing concrete measures to strengthen its financial position - including a possible capital increase, asset disposals, and debt restructuring - and will provide the requested information to the auditors within the appropriate timeframe. At this stage, this situation has no impact on the Company's ongoing operations. Further details will be communicated with the release of interim revenues, scheduled for 29 July 2025. About COIL COIL is the world's leading anodiser in the building and industrial sectors and trades under the ALOXIDE brand name. Anodising is an electrochemical process (electrolysis) which develops a natural, protective oxide layer on the surface of aluminium and can be coloured in a range of UV-proof finishes. It gives the metal excellent resistance to corrosion and/or reinforces its functional qualities. Anodising preserves all the natural and ecological properties of aluminium; it retains its high rigidity and excellent strength-to-weight ratio, its non-magnetic properties, its exceptional resistance to corrosion. The metal remains totally and repeatedly recyclable through simple re-melting. Anodised aluminium is used in a wide variety of industries and applications: architecture, design, manufacturing, and the automotive sector. COIL deploys an industrial model that creates value by leveraging its unique know-how, its operational excellence, the quality of its investments and the expertise of its people. COIL has more than 100 employees in Belgium and Germany and generated a business volume of €24,1 million in 2024. Listed on Euronext Growth Paris | Isin: BE0160342011 | Reuters: | Bloomberg: ALCOI: FP For more information, please visit Contact COILTim Hutton | Chief Executive | Tel.: +32 (0)11 88 01 88 ACTUS FINANCE & COMMUNICATIONCyril Combe ccombe@ | Tel.: +33 (0)1 53 65 68 68 Attachment COILpressrelease_julyl2025_EN
