• Photronics Reports Second Quarter Fiscal 2022 Results and Updates Long-Term Target Model

    Source: Nasdaq GlobeNewswire / 25 May 2022 05:00:00   America/Chicago

    BROOKFIELD, Conn., May 25, 2022 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its fiscal 2022 second quarter ended May 1, 2022.

    “Second quarter was another excellent quarter, as strong end-market demand and higher pricing across both mainstream and high-end IC products propelled us to our fifth consecutive quarter of record revenue,” said Frank Lee, chief executive officer. “As revenue grew, our operating leverage and disciplined cost management expanded gross and operating margins to 36% and 25%, respectively. Our balance sheet continues to strengthen and support our growth strategy of investing to align our operations and technology to serve the strongest sectors of the market. We expect favorable demand trends to continue for advanced mobile displays, high-end logic devices and mainstream IC applications as our customers release new designs and build out new capacity.”

    Second Quarter 2022 Results

    • Revenue was $204.5 million, up 8% sequentially and 28% year-over-year
    • Net income attributable to Photronics, Inc. shareholders was $29.8 million ($0.49 per diluted share), up 29% over first quarter 2022 net income of $23.1 million ($0.38 per diluted share) and nearly triple the second quarter 2021 net income of $10.5 million ($0.17 per diluted share)
    • Integrated circuit (IC) revenue in the second quarter was $145.8 million, up 12% sequentially and 30% compared with the second quarter of last year
    • Flat panel display (FPD) revenue was $58.7 million, down 2% from last quarter and up 23% over the same period last year

    Lee continued, “As I begin my tenure as CEO, Photronics is in a very strong place with a strong global team, leading technology, quality products, and growing market share. We expect to continue to grow sequentially throughout 2022. In fact, market dynamics and Photronics execution have again driven profitability levels that propelled the Company well beyond the projections in the target model we provided just last quarter.” Lee concluded, “Significant indicators from the market and other market participants are that these conditions will continue well into the future.  We have therefore included an updated target model in the supplemental information issued in connection with our conference call later today.”

    Third Quarter 2022 Guidance

    For the third quarter of 2022, Photronics expects revenue to be between $205 million and $215 million, and net income attributable to Photronics, Inc. shareholders to be between $0.45 and $0.55 per diluted share.

    Conference Call

    A conference call to discuss these results is scheduled for 8:30 a.m. Eastern time on Wednesday, May 25, 2022. The call can be accessed by logging onto Photronics' website at www.photronics.com. The live dial-in number is (877) 377-7095 or (408) 774-4601 outside of the United States and Canada. The call will be archived on Photronics’ website.

    About Photronics

    Photronics is a leading worldwide manufacturer of integrated circuit (IC) and flat panel display (FPD) photomasks. High precision quartz plates that contain microscopic images of electronic circuits, photomasks are a key element in the IC and FPD manufacturing process. Founded in 1969, Photronics has been a trusted photomask supplier for over 50 years. As of October 31, 2021, the company had 1,728 employees. The company operates 11 strategically located manufacturing facilities in Asia, Europe, and North America. Additional information on the company can be accessed at www.photronics.com.

    Forward-Looking Statements

    Certain statements in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements made by or on behalf of the company and its subsidiaries. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of Photronics to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans,” “may increase,” “may fluctuate,” “will,” “should,” “would,” “may” and “could” or similar words or expressions are generally forward-looking in nature and not historical facts. Any statements that refer to outlook, expectations or other characterizations of future events, circumstances or results are also forward-looking statements. Important risks, assumptions and other important factors that could cause future results to differ materially from those expressed in the forward-looking statements are specified in Photronics’ Annual and Quarterly filings with the Securities and Exchange Commission under headings such as “Forward-Looking Statements”, “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in other filings and furnishings made by Photronics with the Securities and Exchange Commission from time to time. These risks and uncertainties include, but are not limited to, the current pandemic and future recurrences and other developments with respect thereto, governmental responses to the pandemic and related matters, changes in end markets resulting therefrom, changes in investment, tax, trade, exchange and other laws and regulations, compliance with local, State and Federal laws, rules and regulations including, but not limited to, import and export controls, tariffs and penalties, fines and violations related thereto, as well as economic, competitive, legal, governmental, political, monetary and fiscal policy, and technological factors and decisions we may make in the future regarding our business, capital structure and other matters. Photronics undertakes no obligation to release publicly any revisions to any forward-looking statements or, except as required to be disclosed in filings or furnishings with the Securities and Exchange Commission, to report events or to report the occurrence of unanticipated events. There is no assurance that Photronics’ expectations will be realized.

    For Further Information:
    John P. Jordan
    Executive Vice President & CFO
    203.740.5671
    jjordan@photronics.com

     
     
    PHOTRONICS, INC.   
    Condensed Consolidated Statements of Income 
    (in thousands, except per share amounts)   
    (Unaudited)   
         
         
      Three Months Ended Six Months Ended
      May 1, January 30, May 2, May 1, May 2,
      2022 2022  2021  2022  2021 
               
    Revenue $204,509 $189,827 $159,763  $394,336 $311,830 
               
    Cost of goods sold  131,582  129,964  120,514   261,546  242,052 
               
          Gross Profit  72,927  59,863  39,249   132,790  69,778 
               
    Operating Expenses:          
               
       Selling, general and administrative 16,613  15,727  14,067   32,340  28,120 
               
       Research and development  4,206  5,939  4,375   10,145  9,085 
               
       Total Operating Expenses  20,819  21,666  18,442   42,485  37,205 
               
          Operating Income  52,108  38,197  20,807   90,305  32,573 
               
    Non-operating income (expense), net 8,021  4,707  (772)  12,728  (92)
               
          Income Before Income Tax Provision 60,129  42,904  20,035   103,033  32,481 
               
    Income tax provision  14,689  11,178  3,714   25,867  6,651 
               
          Net Income  45,440  31,726  16,321   77,166  25,830 
               
    Net income attributable to noncontrolling interests 15,597  8,662  5,795   24,259  7,268 
               
    Net income attributable to Photronics, Inc. shareholders$29,843 $23,064 $10,526  $52,907 $18,562 
               
    Earnings per share:          
               
           Basic $0.49 $0.38 $0.17  $0.88 $0.30 
               
           Diluted $0.49 $0.38 $0.17  $0.87 $0.30 
               
    Weighted-average number of common shares outstanding:         
               
           Basic  60,606  60,158  62,054   60,382  62,265 
               
           Diluted  61,145  60,936  62,568   61,041  62,786 
               
               


    PHOTRONICS, INC.
    Condensed Consolidated Balance Sheets
    (in thousands)
    (Unaudited)
     
          
      May 1, October 31, 
      2022 2021 
          
    Assets     
          
    Current assets:     
       Cash and cash equivalents $329,282 $276,670 
       Accounts receivable  190,259  174,447 
       Inventories  58,437  55,249 
       Other current assets  52,864  44,250 
          
          Total current assets  630,842  550,616 
          
    Property, plant and equipment, net 659,881  696,553 
    Other assets  41,661  47,033 
          
    Total assets $1,332,384 $1,294,202 
          
          
          
    Liabilities and Equity     
          
    Current liabilities:     
       Current portion of long-term debt $12,410 $22,248 
       Accounts payable and accrued liabilities 172,205  153,900 
          
          Total current liabilities  184,615  176,148 
          
    Long-term debt  70,138  89,446 
    Other liabilities  25,048  28,046 
          
    Photronics, Inc. shareholders' equity 836,752  823,692 
    Noncontrolling interests  215,831  176,870 
          Total equity  1,052,583  1,000,562 
          
    Total liabilities and equity $1,332,384 $1,294,202 
          
          


    PHOTRONICS, INC. 
    Condensed Consolidated Statements of Cash Flows 
    (in thousands) 
    (Unaudited) 
             
             
         Six Months Ended 
         May 1, May 2, 
         2022
     2021
     
             
    Cash flows from operating activities:     
         Net income   $77,166  $25,830  
          Adjustments to reconcile net income to net cash provided by operating activities:     
             Depreciation and amortization  41,405   47,121  
             Share-based compensation  3,041   2,723  
             Changes in operating assets, liabilities and other (18,323)  (17,455) 
             
    Net cash provided by operating activities  103,289   58,219  
             
    Cash flows from investing activities:     
           Purchases of property, plant and equipment (34,809)  (73,516) 
           Government incentives   1,394   5,775  
           Other     (199)  (157) 
             
    Net cash used in investing activities  (33,614)  (67,898) 
             
    Cash flows from financing activities:     
           Repayments of debt   (27,571)  (8,636) 
           Purchases of treasury stock  (2,522)  (23,250) 
           Contribution from noncontrolling interest 24,995   -  
           Proceeds from share-based arrangements 4,384   1,180  
           Proceeds from long-term debt  -   12,439  
           Net settlements of restricted stock awards (1,452)  (371) 
             
    Net cash used in financing activities  (2,166)  (18,638) 
             
    Effect of exchange rate changes on cash, cash equivalents, and restricted cash (14,917)  5,686  
             
    Net increase (decrease) in cash, cash equivalents, and restricted cash 52,592   (22,631) 
    Cash, cash equivalents, and restricted cash, beginning of period 279,680   281,602  
             
    Cash, cash equivalents, and restricted cash, end of period$332,272  $258,971  
             


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