Eastman Kodak (KODK 0.55%), which specializes in commercial print and advanced materials and chemicals, saw its shares plummet 17% on Thursday. The stock is down more than 44% over the past year.
The company released its first-quarter earnings after the market closed on Tuesday, and the results were mixed. Revenue was $290 million, up 9% from the same quarter last year, though down 5% sequentially. Kodak also reported a loss of $3 million in net income, down from positive net income of $6 million year over year.
Operational earnings before interest, taxes, depreciation, and amortization (EBITDA) showed a loss of $7 million compared to positive EBITDA of $3 million in the same period in 2021.
In the company's first-quarter earnings call, CEO Jim Continenza said the company's losses were due to supply chain disruption; shortages in distribution, material, and labor; and increased costs of materials. He added that the company is taking steps to solve the problem by increasing lead times, stocking more materials, and by raising prices on its products.
The company had seemed to be bouncing back after having a strong year in 2021, when it increased annual revenue to $1.15 billion, up 11.76% over 2020. It also reported net income of $24 million in 2021 after losing $541 million in 2020. The latest report is a step back, and investors weren't happy.
The company's low price-to-earnings ratio of 17.57 makes it appear to be a bargain, but it is becoming clearer why it is valued so low. Before investors jump back in, they will likely want to see a couple of quarters of improved numbers. Kodak has fallen a long way from when it was the industry giant in film production.
Another concern is the company's debt, which increased slightly to $1.2 billion, up from $1.194 in the same quarter in 2021. That increased debt load will make it more difficult for the company to fund future projects without sacrificing cash. As it is, it has only $309 million in cash, down from $362 million at the end of fiscal 2021.