Press Release: Kodak Files Amended Form 10-Qs for 2004; Filings are in
Conjunction with the Company's Previously-Concluded Restatement
Eastman Kodak Company (NYSE:EK) today filed revised
quarterly reports for 2004 on Form 10-Q/A with the U.S. Securities and Exchange
Commission. These filings are in connection with the company's previously
announced restatement of quarterly consolidated financial statements for each of
the quarterly periods in 2003 and for the first three quarters of 2004.
The following tables, one for each quarter as well
as full year, provide P&L detail on a Generally Accepted Accounting
Principles (GAAP) and Operational basis.
Year-over-Year Comparison of Reported and Operational
Earnings
(Amounts in
millions of
dollars)
----------------------------------------------------------------------
1Q 04 as Excluded 1Q 04
Reported Items Operational
------------ ---------- ------------
(Restated) (Restated)
------------ ------------
Sales
$2,920 $2,920
COGS
2,113 (24) A 2,089
------------ ---------- ------------
Gross
Profit 807 24
831
SG&A
549 0 549
R&D
197 (9) B
188
Restructuring costs and other
54 (54) C 0
------------ ----------
------------
Earnings From Operations
7 87 94
Interest
Expense 44
44
Other Inc./(Charges)
(2) - -2
------------ ------------
Below EFO
-46 -
-46
(Loss)/Earnings before Taxes
(39) 87 48
Tax
(Benefit) Provision (47) 25 D
(22)
------------ ----------
------------
Earnings: Cont. Ops.
8 62 70
Earnings:
Disc. Ops. 13 (13)
0
------------
---------- ------------
------------ ---------- ------------
Net
Earnings $21 $49
$70
Diluted EPS: Cont. Ops.
0.03 $0.21 0.24
Total Diluted EPS
0.07
----------------------------------------------------------------------
Year-over-Year Comparison of Reported and Operational
Earnings
(Amounts in
millions of
dollars)
----------------------------------------------------------------------
1Q 03 as Excluded 1Q 03
Reported Items Operational
------------ ---------- ------------
(Restated) (Restated)
------------ ------------
Sales
$2,639 $2,639
COGS
1,839 (14) E 1,825
------------ ---------- ------------
Gross
Profit 800 14
814
SG&A
559 (12) F 547
R&D
192 (21) G
171
Restructuring costs and other
35 (35) H 0
------------ ----------
------------
Earnings From Operations
14 82 96
Interest
Expense 37
37
Other Inc./(Charges)
(21) - -21
------------ ------------
Below EFO
-58
-58
(Loss)/Earnings before Taxes
(44) 82 38
Tax
(Benefit) Provision (26) 35 I
9
------------
---------- ------------
Earnings: Cont.
Ops. -18 47
29
Earnings: Disc. Ops.
23 (23) 0
------------ ---------- ------------
------------ ---------- ------------
Net
Earnings $5 $24
$29
Diluted EPS: Cont. Ops.
-0.06 $0.16 0.10
Total Diluted
EPS
0.02
----------------------------------------------------------------------
Items
excluded from Earnings on an operational
basis:
A - Charges for accelerated
depreciation and inventory writedowns of
$22 million and $2 million, respectively, in connection with
the
focused cost reduction
actions.
B - Charge for in-process
research and development of $9 million in
connection with the acquisition of Scitex Digital
Printing
(renamed Kodak
Versamark).
C - Charges for focused cost
reduction actions of $54 million.
D - Tax
impacts of the above-mentioned excluded
items.
E - Charges for accelerated
depreciation in connection with the
focused
cost reduction actions.
F - Charge in
connection with an intellectual property settlement
of
$12
million.
G - Charge for in-process
research and development of $21 million in
connection with the acquisition of
technology.
H - Charges for focused cost
reduction actions of $35 million.
I - Tax
impacts of the above-mentioned excluded
items.
----------------------------------------------------------------------
As
Percent of 1Q 04 as 1Q 04 1Q 03 as 1Q
03
Sales: Reported Operational
Reported Operational
------------ ------------ ------------
------------
(Restated)
(Restated) (Restated)
(Restated)
Gross Profit 27.6%
28.5% 30.3% 30.8%
SG&A
18.8% 18.8% 21.2%
20.7%
SG&A
w/o
Advertising 16.1% 16.1%
17.2% 16.8%
R&D
6.7% 6.4% 7.3% 6.5%
EFO
0.2% 3.2% 0.5% 3.6%
Net
Earnings -
Cont. Ops 0.3%
2.4% -0.7%
1.1%
----------------------------------------------------------------------
Year-over-Year Comparison of Reported and Operational
Earnings
(Amounts in
millions of
dollars)
----------------------------------------------------------------------
2Q 04 as Excluded 2Q 04
Reported Items Operational
------------ ---------- ------------
(Restated) (Restated)
------------ ------------
Sales
$3,464 $3,464
COGS
2,363 (34) A 2,329
------------ ---------- ------------
Gross
Profit 1,101 34
1,135
SG&A
615 0 615
R&D
213 0
213
Restructuring costs and other
134 (134) B 0
------------ ----------
------------
Earnings From Operations
139 168 307
Interest
Expense 43
43
Other Inc./(Charges) 8
- 8
------------ ------------
Below EFO
-35 -
-35
(Loss)/Earnings before Taxes
104 168 272
Tax
(Benefit) Provision (15) 60 C
45
------------ ----------
------------
Earnings: Cont. Ops.
119 108 227
Earnings:
Disc. Ops. 17 (17)
0
------------
---------- ------------
------------ ---------- ------------
Net
Earnings $136 $91
$227
Diluted EPS: Cont. Ops.
0.42 $0.37 0.79
Total Diluted EPS
0.48
----------------------------------------------------------------------
Year-over-Year Comparison of Reported and Operational
Earnings
(Amounts in
millions of
dollars)
----------------------------------------------------------------------
2Q 03 as Excluded 2Q 03
Reported Items Operational
------------ ---------- ------------
(Restated) (Restated)
------------ ------------
Sales
$3,258 $3,258
COGS
2,164 (10) D 2,154
------------ ---------- ------------
Gross
Profit 1,094 10
1,104
SG&A
708 (37) E 671
R&D
177 0
177
Restructuring costs and other
41 (41) F 0
------------ ----------
------------
Earnings From Operations
168 88 256
Interest
Expense 34
34
Other Inc./(Charges)
(9) - -9
------------ ------------
Below EFO
-43
-43
(Loss)/Earnings before Taxes
125 88 213
Tax
(Benefit) Provision 11 31 G
42
------------ ----------
------------
Earnings: Cont. Ops.
114 57 171
Earnings:
Disc. Ops. 4 (4)
0
------------
---------- ------------
------------ ---------- ------------
Net
Earnings $118 $53
$171
Diluted EPS: Cont. Ops.
0.40 $0.20 0.60
Total Diluted EPS
0.41
----------------------------------------------------------------------
Items
excluded from Earnings on an operational
basis:
A - Charges for (1) accelerated
depreciation and inventory writedowns
in
connection with the focused cost reduction actions of
$30
million and $2 million, respectively,
and (2) inventory writedowns
of $2 million
in connection with the acquisition of the
NexPress-
related
entities.
B - Charges for (1) focused
cost reduction actions of $131 million and
(2) the writeoff of fixed assets of $3 million relating to
Kodak's
historical ownership interest in
the NexPress joint venture that
will be
disposed of in connection with the acquisition of
the
NexPress- related
entities.
C - Tax impacts of the
above-mentioned excluded items.
D -
Charges for accelerated depreciation and inventory writedowns
of
$7 million and $3 million, respectively,
in connection with the
focused cost
reduction actions.
E - Charges for the
Burrell Companies' net assets held for sale
impairment of $9 million, patent infringement claim settlement
of
$14 million, and prior year acquisition
settlement of $14 million.
F - Charges
for focused cost reduction actions of $41
million.
G - Tax impacts of the
above-mentioned excluded
items.
----------------------------------------------------------------------
As
Percent of 2Q 04 as 2Q 04 2Q 03 as 2Q
03
Sales: Reported Operational
Reported Operational
------------ ------------ ------------
------------
(Restated)
(Restated) (Restated)
(Restated)
Gross Profit 31.8%
32.8% 33.6% 33.9%
SG&A
17.8% 17.8% 21.7%
20.6%
SG&A
w/o
Advertising 13.9% 13.9%
16.4% 15.3%
R&D
6.1% 6.1% 5.4% 5.4%
EFO
4.0% 8.9% 5.2% 7.9%
Net
Earnings -
Cont. Ops 3.4%
6.6% 3.5%
5.2%
----------------------------------------------------------------------
Year-over-Year Comparison of Reported and Operational
Earnings
(Amounts in
millions of
dollars)
----------------------------------------------------------------------
3Q 04 as Excluded 3Q 04
Reported Items Operational
------------ ---------- ------------
(Restated) (Restated)
------------ ------------
Sales
$3,374 $3,374
COGS
2,296 (37) A 2,259
------------ ---------- ------------
Gross
Profit 1,078 37
1,115
SG&A
629 0 629
R&D
219 (6) B
213
Restructuring costs and other
227 (227) C 0
------------ ----------
------------
Earnings From Operations
3 270 273
Interest
Expense 43
43
Other Inc./(Charges) 24
- 24
------------ ------------
Below EFO
-19 -
-19
(Loss)/Earnings before Taxes
(16) 270 254
Tax
(Benefit) Provision (28) 64 D
36
------------ ----------
------------
Earnings: Cont. Ops.
12 206 218
Earnings:
Disc. Ops. 446 (446)
0
------------
---------- ------------
------------ ---------- ------------
Net
Earnings $458 ($240)
$218
Diluted EPS: Cont. Ops.
0.04 $0.72 0.76
Total Diluted EPS
1.60
----------------------------------------------------------------------
Year-over-Year Comparison of Reported and Operational
Earnings
(Amounts in
millions of
dollars)
----------------------------------------------------------------------
3Q 03 as Excluded 3Q 03
Reported Items Operational
------------ ---------- ------------
(Restated) (Restated)
------------ ------------
Sales
$3,367 $3,367
COGS
2,239 (33) E 2,206
------------ ---------- ------------
Gross
Profit 1,128 33
1,161
SG&A
628 (8) F 620
R&D
190 0
190
Restructuring costs and other
152 (152) G 0
------------ ----------
------------
Earnings From Operations
158 193 351
Interest
Expense 33
33
Other Inc./(Charges)
(9) - -9
------------ ------------
Below EFO
-42
-42
(Loss)/Earnings before Taxes
116 193 309
Tax
(Benefit) Provision (23) 67 H
44
------------ ----------
------------
Earnings: Cont. Ops.
139 126 265
Earnings:
Disc. Ops. 7 (7)
0
------------
---------- ------------
------------ ---------- ------------
Net
Earnings $146 $119
$265
Diluted EPS: Cont. Ops.
0.48 $0.45 0.93
Total Diluted EPS
0.51
----------------------------------------------------------------------
Items
excluded from Earnings on an operational
basis:
A - Charges for accelerated
depreciation and inventory writedowns of
$34 million and $3 million, respectively, in connection with
the
focused cost reduction
actions.
B - Charge for in-process
research and development of $6 million.
C
- Charges for focused cost reduction actions of $227
million.
D - Tax impacts of the
above-mentioned excluded items.
E -
Charges for accelerated depreciation of $33 million in
connection
with the focused cost reduction
actions.
F - Charge for charitable
contributions to Infotonics.
G - Charges
for focused cost reduction actions of $152
million.
H - Tax impacts of the
above-mentioned excluded
items.
----------------------------------------------------------------------
As
Percent of 3Q 04 as 3Q 04 3Q 03 as 3Q
03
Sales: Reported Operational
Reported Operational
------------ ------------ ------------
------------
(Restated)
(Restated) (Restated)
(Restated)
Gross Profit 32.0%
33.0% 33.5% 34.5%
SG&A
18.6% 18.6% 18.7%
18.4%
SG&A
w/o
Advertising 14.5% 14.5%
14.2% 14.0%
R&D
6.5% 6.3% 5.6% 5.6%
EFO
0.1% 8.1% 4.7% 10.4%
Net
Earnings -
Cont. Ops 0.4%
6.5% 4.1%
7.9%
--------------------------------------------
-------------------------
Year-over-Year Comparison of Reported and Operational
Earnings
(Amounts in
millions of
dollars)
----------------------------------------------------------------------
4Q 04 as Excluded 4Q 04
Reported Items Operational
------------ ----------
------------
Sales
$3,759 $3,759
COGS
2,776 (111) A 2,665
------------ ---------- ------------
Gross
Profit 983 111
1,094
SG&A
714 (6) B 708
R&D
225 0
225
Restructuring costs and other
280 (280) C 0
------------ ----------
------------
Earnings From Operations
-236 397 161
Interest
Expense 38
38
Other Inc./(Charges) 131
(101) D 30
------------ ------------
Below EFO
93 -
-8
(Loss)/Earnings before Taxes
(143) 296 153
Tax
(Benefit) Provision (85) 63 E
(22)
------------ ----------
------------
Earnings: Cont. Ops.
-58 233 175
Earnings:
Disc. Ops. -1 1
0
------------
---------- ------------
------------ ---------- ------------
Net
Earnings ($59) $234
$175
Diluted EPS: Cont. Ops.
-0.20 $0.78 0.58
Total Diluted
EPS
-0.20
----------------------------------------------------------------------
Year-over-Year Comparison of Reported and Operational
Earnings
(Amounts in
millions of
dollars)
----------------------------------------------------------------------
4Q 03 as Excluded 4Q 03
Reported Items Operational
------------ ---------- ------------
(Restated) (Restated)
------------ ------------
Sales
$3,645 $3,645
COGS
2,492 (16) F 2,476
------------ ---------- ------------
Gross
Profit 1,153 16
1,169
SG&A
723 (2) G 721
R&D
217 (10) H
207
Restructuring costs and other
251 (251) I 0
------------ ----------
------------
Earnings From Operations
-38 279 241
Interest
Expense 43
43
Other Inc./(Charges)
(12) 4 J -8
------------ ------------
Below EFO
-55
-51
(Loss)/Earnings before Taxes
(93) 283 190
Tax
(Benefit) Provision (47) 71 K
24
------------ ----------
------------
Earnings: Cont. Ops.
-46 212 166
Earnings:
Disc. Ops. 30 (30)
0
------------
---------- ------------
------------ ---------- ------------
Net
Earnings ($16) $182
$166
Diluted EPS: Cont. Ops.
-0.16 $0.72 0.56
Total Diluted
EPS
-0.06
----------------------------------------------------------------------
Items
excluded from Earnings on an operational
basis:
A - Charges for accelerated
depreciation and inventory writedowns in
connection with the focused cost reduction actions of $97
million
and $14 million,
respectively.
B - Charge for an
unfavorable legal settlement of $6
million.
C - Charges for (1) focused cost
reduction actions of $273 million and
(2)
the writeoff of fixed assets of $7 million relating to
Kodak's
historical ownership interest in
the NexPress joint venture.
D - Exclusion
of favorable legal settlements of $101
million.
E - Tax impacts of the
above-mentioned excluded items.
F -
Charges for accelerated depreciation and inventory writedowns
in
connection with the focused cost
reduction actions of $15 million
and $1
million, respectively.
G - Charges for
legal settlements of $8 million and strategic
asset
writedowns of $3 million partially
offset by the reversal of an
environmental
reserve of $9 million.
H - Charge for
in-process research and development of $10 million
in
connection with the acquisition of
PracticeWorks, Inc.
I - Charges for
focused cost reduction actions of $251
million.
J - Charge for non-strategic
venture asset write-downs of $4
million.
K - Tax impacts of the
above-mentioned excluded items.
As
Percent of 4Q 04 as 4Q 04 4Q 03 as 4Q
03
Sales: Reported Operational
Reported Operational
------------ ------------ ------------
------------
(Restated) (Restated)
Gross Profit
26.2% 29.1% 31.6%
32.1%
SG&A 19.0%
18.8% 19.8% 19.8%
SG&A
w/o
Advertising 14.8% 14.6%
15.2% 15.2%
R&D
6.0% 6.0% 6.0% 5.7%
EFO
-6.3% 4.3% -1.0%
6.6%
Net Earnings
-
Cont. Ops -1.5% 4.7%
-1.3%
4.6%
--------------------------------------------
-------------------------
Year-over-Year Comparison of Reported and Operational
Earnings
(Amounts in
millions of
dollars)
----------------------------------------------------------------------
FY 04 as Excluded FY 04
Reported Items Operational
------------ ----------
------------
Sales
$13,517 $13,517
COGS
9,548 (206) A 9,342
------------ ---------- ------------
Gross
Profit 3,969 206
4,175
SG&A
2,507 (6) B 2,501
R&D
854 (15) C
839
Restructuring costs and other
695 (695) D 0
------------ ----------
------------
Earnings From Operations
-87 922 835
Interest
Expense 168
168
Other Inc./(Charges)
161 (101) E 60
------------ ------------
Below EFO
-7
-108
(Loss)/Earnings before Taxes
(94) 821 727
Tax
(Benefit) Provision (175) 212 F
37
------------ ----------
------------
Earnings: Cont. Ops.
81 609 690
Earnings:
Disc. Ops. 475 (475)
0
------------
---------- ------------
------------ ---------- ------------
Net
Earnings $556 $134
$690
Diluted EPS: Cont. Ops.
0.28 $2.02 2.30
Total Diluted EPS
1.94
----------------------------------------------------------------------
Year-over-Year Comparison of Reported and Operational
Earnings
(Amounts in
millions of
dollars)
----------------------------------------------------------------------
FY 03 as Excluded FY 03
Reported Items Operational
------------ ---------- ------------
(Restated) (Restated)
------------ ------------
Sales
$12,909 $12,909
COGS
8,734 (73) G 8,661
------------ ---------- ------------
Gross
Profit 4,175 73
4,248
SG&A
2,618 (59) H 2,559
R&D
776 (31) I
745
Restructuring costs and other
479 (479) J 0
------------ ----------
------------
Earnings From Operations
302 642 944
Interest
Expense 147
147
Other Inc./(Charges)
(51) 4 K (47)
------------ ------------
Below EFO
-198
-194
(Loss)/Earnings before Taxes
104 646 750
Tax
(Benefit) Provision (85) 204 L
119
------------ ----------
------------
Earnings: Cont. Ops.
189 442 631
Earnings:
Disc. Ops. 64 (64)
0
------------
---------- ------------
------------ ---------- ------------
Net
Earnings $253 $378
$631
Diluted EPS: Cont. Ops.
0.66 $1.52 2.18
Total Diluted EPS
0.88
----------------------------------------------------------------------
Items
excluded from Earnings on an operational
basis:
A - Charges for (1) accelerated
depreciation and inventory writedowns
in
connection with the focused cost reduction actions of
$183
million and $21 million, respectively
and (2) inventory writedowns
of $2 million
in connection with the acquisition of the
NexPress-
related
entities.
B - Charge for an unfavorable
legal settlement of $6 million.
C -
Charge for in-process research and development of $15
million.
D - Charges for (1) focused cost
reduction actions of $685 million and
(2)
the writeoff of fixed assets of $10 million relating
to
Kodak's historical ownership interest in
the NexPress joint
venture.
E - Exclusion of favorable legal
settlements of $101 million.
F - Tax
impacts of the above-mentioned excluded
items.
G - Charges for accelerated
depreciation and inventory writedowns in
connection with the focused cost reduction actions of $69
million
and $4 million,
respectively.
H - Charges for legal
settlements of $48 million, strategic asset
writedowns of $3 million, charitable contribution to Infotonics
of
$8 million, and Burrell Companies' net
assets held for sale
impairment of $9
million partially offset by the reversal of an
environmental reserve of $9 million.
I -
Charge for in-process research and development of $10 million
in
connection with the acquisition of
PracticeWorks, Inc. and $21
million in
connection with the acquisition of
technology.
J - Charges for focused cost
reduction actions of $479 million.
K -
Charge for non-strategic venture asset write-downs of $4
million.
L - Tax impacts of the
above-mentioned excluded items.
As
Percent of FY 04 as FY 04 FY 03 as FY
03
Sales: Reported Operational
Reported Operational
------------ ------------ ------------
------------
(Restated) (Restated)
Gross Profit
29.4% 30.9% 32.3%
32.9%
SG&A 18.5%
18.5% 20.3% 19.8%
SG&A
w/o
Advertising 14.8% 14.7%
15.7% 15.2%
R&D
6.3% 6.2% 6.0% 5.8%
EFO
-0.6% 6.2% 2.3%
7.3%
Net Earnings
-
Cont. Ops 0.6% 5.1%
1.5%
4.9%
--------------------------------------------
-------------------------
Posted: Wed - June 1, 2005 at 10:36 AM