ROCHESTER, New York - Eastman Kodak Company (NYSE:KODK), a long-standing name in photographic equipment and supplies with a current market capitalization of $510 million, has finalized the sale of certain assets as part of its retirement plan's strategy. According to InvestingPro analysis, the company is currently trading near its Fair Value, with a strong 80% return over the past year.
InvestingPro's comprehensive analysis reveals 8 additional key insights about KODK's financial position, available through their Pro Research Report. The company's recent 8-K filing with the Securities and Exchange Commission reveals that on Monday, the Kodak Retirement Income Plan Trust (Trust) sold illiquid assets valued at $752.8 million to the Mastercard (NYSE:MA) Foundation, receiving $540.6 million in gross proceeds.
The deal, originally disclosed on November 25, 2024, saw the Trust divest these assets as part of a broader transaction that included sales to four other investors. These additional sales amounted to $87.3 million in net asset value, for which the Trust has received $61.7 million, excluding $9.0 million deferred until December 31, 2025. However, due to certain conditions, two private equity partnership interests were not transferred as planned.
Following these transactions, the Trust still holds illiquid assets worth approximately $169.4 million as of September 30, 2024. The Trust's Hedge Fund Assets, which were valued at $917.2 million as of the same date, have seen distributions and redemptions of $56.7 million in October and November 2024.
This asset management strategy aligns with Kodak's overall financial position, which InvestingPro data shows includes a healthy current ratio of 2.41, indicating strong liquidity with assets well-positioned to cover short-term obligations. Additional payments totaling $106.4 million were received by year-end, although the net asset value as of December 31, 2024, is yet to be determined.
The remaining assets of the Kodak Retirement Income Plan are primarily in liquid investments, including government and corporate bonds, hedging arrangements, and cash. The completion of these sales is part of Kodak's ongoing efforts to manage its retirement plan assets effectively.
In other recent news, Eastman Kodak Company disclosed mixed results for its third quarter of 2024. Despite a 3% drop in revenues to $261 million and a decrease in gross profit margin from 19% to 17%, the company reported a significant rise in net income to $18 million, up from $2 million in the same quarter the previous year.
The company's commitment to innovation remains strong, particularly in advanced materials and chemicals, with notable investments in battery technology and modernizing film manufacturing processes. Additionally, Eastman Kodak benefited from a favorable ruling on tariffs from the International Trade Commission ( ITC (NS:ITC)), which is expected to provide a competitive edge in the U.S. market.
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