Press Release

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

February 23, 2022 at 6:00 AM EST
PDF Version

BROOKFIELD, Conn., Feb. 23, 2022 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its fiscal 2022 first quarter ended January 30, 2022.

“Strong end-market demand trends have continued into 2022, helping us achieve our fourth consecutive quarter of record revenue,” said Peter Kirlin, chief executive officer. “Our investment strategy is producing the intended results as demonstrated by growth in excess of market rates. We’ve aligned our operations and technology to serve the strongest sectors of the market, such as AMOLED for mobile displays, high-end logic devices for advanced electronics and mainstream IC to support the proliferation of chips needed for the enablement of the internet of things.”

First Quarter 2022 Results

  • Revenue was $189.8 million, up 5% sequentially and 25% year-over-year
  • Net income attributable to Photronics, Inc. shareholders was $23.1 million ($0.38 per diluted share), compared with fourth quarter 2021 net income of $19.8 million ($0.33 per diluted share) – a 15% sequential increase in EPS, and first quarter 2021 net income of $8.0 million ($0.13 per diluted share) – nearly 300% year-over-year increase
  • Integrated circuit (IC) revenue in the first quarter was $129.8 million, up 3% sequentially and 24% compared with the first quarter of last year
  • Flat panel display (FPD) revenue was $60.1 million, up 8% over last quarter and 27% over the same period last year

“Market dynamics and Photronics’ execution have driven profitability levels that propelled the Company well beyond the projections in the target model we provided in December 2020,” concluded Kirlin. “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.”

Second Quarter 2022 Guidance

For the second quarter of 2022, Photronics expects revenue to be between $188 million and $196 million, and net income attributable to Photronics, Inc. shareholders to be between $0.32 and $0.38 per diluted share.

Conference Call

A conference call to discuss these results is scheduled for 8:30 a.m. Eastern time on Wednesday, February 23, 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” regarding our industry, our strategic position, and our financial and operating results. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially. Please refer to the documents we file with the Securities and Exchange Commission. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at www.photronics.com/riskfactors. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements after the date of this release to conform these statements to actual results.

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  
        January 30,   October 31,   January 31,  
        2022   2021   2021  
                   
Revenue       $ 189,827   $ 181,288   $ 152,067  
                   
Cost of goods sold       129,964     129,347     121,538  
                   
Gross Profit         59,863     51,941     30,529  
                   
Operating Expenses:                
                   
Selling, general and administrative   15,727     14,322     14,053  
                   
Research and development     5,939     4,100     4,710  
                   
Total Operating Expenses     21,666     18,422     18,763  
                   
Operating Income       38,197     33,519     11,766  
                   
Non-operating income, net     4,707     3,809     680  
                   
Income Before Income Tax Provision   42,904     37,328     12,446  
                   
Income tax provision       11,178     8,697     2,937  
                   
Net Income         31,726     28,631     9,509  
                   
Net income attributable to noncontrolling interests   8,662     8,820     1,473  
                   
Net income attributable to Photronics, Inc. shareholders $ 23,064   $ 19,811   $ 8,036  
                   
Earnings per share:                
                   
Basic       $ 0.38   $ 0.33   $ 0.13  
                   
Diluted       $ 0.38   $ 0.33   $ 0.13  
                   
Weighted-average number of common shares outstanding:            
                   
Basic         60,158     60,216     62,475  
                   
Diluted         60,936     60,908     63,005  
                   


PHOTRONICS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
 
               
        January 30,   October 31,  
        2022   2021  
               
Assets              
               
Current assets:            
Cash and cash equivalents   $ 314,195   $ 276,670  
Accounts receivable     170,673     174,447  
Inventories       61,971     55,249  
Other current assets     50,940     44,250  
               
Total current assets     597,779     550,616  
               
Property, plant and equipment, net   692,289     696,553  
Other assets       45,180     47,033  
               
Total assets     $ 1,335,248   $ 1,294,202  
               
               
               
Liabilities and Equity          
               
Current liabilities:            
Current portion of long-term debt $ 18,307   $ 22,248  
Accounts payable and accrued liabilities   172,787     153,900  
               
Total current liabilities     191,094     176,148  
               
Long-term debt       78,540     89,446  
Other liabilities       26,448     28,046  
               
Photronics, Inc. shareholders' equity   838,425     823,692  
Noncontrolling interests     200,741     176,870  
Total equity       1,039,166     1,000,562  
               
Total liabilities and equity   $ 1,335,248   $ 1,294,202  
               


PHOTRONICS, INC.  
Condensed Consolidated Statements of Cash Flows  
(in thousands)  
(Unaudited)  
                 
                 
          Three Months Ended  
          January 30,   January 31,  
            2022       2021    
                 
Cash flows from operating activities:          
Net income       $ 31,726     $ 9,509    
Adjustments to reconcile net income to net cash        
provided by operating activities:          
Depreciation and amortization     20,810       23,724    
Share-based compensation     1,457       1,301    
Changes in operating assets, liabilities and other   5,137       (8,247 )  
                 
Net cash provided by operating activities     59,130       26,287    
                 
Cash flows from investing activities:          
Purchases of property, plant and equipment   (19,175 )     (17,532 )  
Government incentives       -       397    
Other           (43 )     (61 )  
                 
Net cash used in investing activities     (19,218 )     (17,196 )  
                 
Cash flows from financing activities:          
Repayments of debt       (15,192 )     (7,796 )  
Purchases of treasury stock     (2,522 )     (13,209 )  
Contribution from noncontrolling interest   14,997       -    
Proceeds from long-term debt     -       6,205    
Proceeds from share-based arrangements   3,840       765    
Net settlements of restricted stock awards   (1,458 )     (315 )  
                 
Net cash used in financing activities     (335 )     (14,350 )  
                 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash   (2,057 )     5,195    
                 
Net increase (decrease) in cash, cash equivalents, and restricted cash   37,520       (64 )  
Cash, cash equivalents, and restricted cash, beginning of period   279,680       281,602    
                 
Cash, cash equivalents, and restricted cash, end of period $ 317,200     $ 281,538    
                 


Primary Logo

Source: Photronics, Inc.