EX-99.1 2 a4900024ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 Kodak Files Amended Form 10-Qs for 2004; Filings are in Conjunction with the Company's Previously-Concluded Restatement ROCHESTER, N.Y.--(BUSINESS WIRE)--May 31, 2005--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% -------------------------------------------- ------------------------- Editor's Note: For additional information about Kodak, visit our web site at www.kodak.com CONTACT: Eastman Kodak Company Media: David Lanzillo, 585-781-5481 david.lanzillo@kodak.com or Gerard Meuchner, 585-724-4513 gerard.meuchner@kodak.com or Investor Relations: Don Flick, 585-724-4352 donald.flick@kodak.com or Patty Yahn-Urlaub, 585-724-4683 patty.yahn-urlaub@kodak.com or Carol Wilke, 585-724-6791 carol.wilke@kodak.com