Press Release

Photronics Reports Full Year and Fourth Quarter Fiscal 2021 Results

December 8, 2021 at 6:00 AM EST

BROOKFIELD, Conn., Dec. 08, 2021 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its full year and fourth quarter fiscal 2021 ended October 31, 2021.

“Photronics achieved a fourth consecutive year of record revenue, as demand for our design-driven products accelerated and we fully ramped new flat panel display capacity,” said Peter Kirlin, chief executive officer. “We made strategic investments in 2021 that have positioned us to achieve organic growth as market trends such as the increase in demand from Asia foundries and the adoption of advanced display technologies in mobile applications have driven the market higher.”

Full Year 2021 Results

  • Revenue of $663.8 million was a record for the fourth consecutive year, up 9% compared with 2020
  • Net income attributable to Photronics, Inc. shareholders was $55.4 million, or $0.89 per diluted share
  • Cash provided by operating activities was $150.8 million, capex was $103.5 million, share repurchases were $48.3 million, and ending cash balance was $276.7 million

Fourth Quarter 2021 Results

  • Revenue was $181.3 million, the third consecutive quarterly record, up 6% sequentially and 21% year-over-year
  • Net income attributable to Photronics, Inc. shareholders was $19.8 million ($0.33 per diluted share), compared with $17.1 million ($0.28 per diluted share) for the third quarter of 2021 and $6.5 million ($0.10 per diluted share) for the fourth quarter of 2020

Full year integrated circuit (IC) revenue was $460.2 million, up 10% compared with last year; flat panel display (FPD) revenue was $203.6 million, 6% over the same quarter last year.

IC revenue in the fourth quarter was $125.4 million, up 7% sequentially and 18% compared with the fourth quarter of last year; FPD revenue was $55.8 million, up 6% over last quarter and 29% over the same period last year.

“Past investments in targeted technologies are paying off, as margin expansion is accompanying top-line growth,” added Kirlin. “We are generating gross and operating margins already at the high-end of the three-year target model we presented last year, and our strong cash flow enables us to invest in the business while we also return cash to shareholders as part of our disciplined capital allocation. With strong end market demand, solid balance sheet, broad geographic presence, and a team with a proven track record, we are excited about our future and optimistic we can deliver on our long-term target model objectives.”

First Quarter 2022 Guidance

For the first quarter of 2022, Photronics expects revenue to be between $178 million and $186 million, and net income attributable to Photronics, Inc. shareholders to be between $0.27 and $0.34 per diluted share.

Conference Call

A conference call to discuss these results is scheduled for 8:30 a.m. Eastern time on Wednesday, December 8, 2021. The call can be accessed by logging onto Photronics' website at 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

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.

Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
    Three Months Ended   Year Ended
    October 31,   August 1,   October 31,   October 31,   October 31,
      2021       2021       2020       2021       2020  
Revenue   $ 181,288     $ 170,643     $ 149,286     $ 663,761     $ 609,691  
Cost of goods sold     129,347       125,318       117,401       496,717       475,037  
Gross Profit     51,941       45,325       31,885       167,044       134,654  
Operating Expenses:                    
Selling, general and administrative   14,322       15,083       12,790       57,525       53,582  
Research and development     4,100       5,305       4,110       18,490       17,144  
Total Operating Expenses     18,422       20,388       16,900       76,015       70,726  
Other operating income, net     -       3,525       -       3,525       -  
Operating Income     33,519       28,462       14,985       94,554       63,928  
Non-operating income (expense), net   3,809       3,735       (2,937 )     7,452       (2,327 )
Income Before Income Tax Provision   37,328       32,197       12,048       102,006       61,601  
Income tax provision     8,697       7,842       3,469       23,190       21,258  
Net Income     28,631       24,355       8,579       78,816       40,343  
Net income attributable to noncontrolling interests   8,820       7,279       2,119       23,367       6,523  
Net income attributable to Photronics, Inc. shareholders $ 19,811     $ 17,076     $ 6,460     $ 55,449     $ 33,820  
Earnings per share:                    
Basic   $ 0.33     $ 0.28     $ 0.10     $ 0.90     $ 0.52  
Diluted   $ 0.33     $ 0.28     $ 0.10     $ 0.89     $ 0.52  
Weighted-average number of common shares outstanding:                  
Basic     60,216       60,884       64,193       61,407       64,866  
Diluted     60,908       61,515       64,768       61,999       65,470  

Condensed Consolidated Balance Sheets
(in thousands)
    October 31,   October 31,
      2021       2020  
Current assets:        
Cash and cash equivalents   $ 276,670     $ 278,665  
Accounts receivable     174,447       134,470  
Inventories     55,249       57,269  
Other current assets     44,250       29,735  
Total current assets     550,616       500,139  
Property, plant and equipment, net   696,553       631,475  
Intangible assets, net     774       3,437  
Other assets     46,259       53,131  
Total assets   $ 1,294,202     $ 1,188,182  
Liabilities and Equity        
Current liabilities:        
Debt   $ 22,248     $ 13,678  
Accounts payable and accrued liabilities   153,900       129,261  
Total current liabilities     176,148       142,939  
Long-term debt     89,446       54,980  
Other liabilities     28,046       27,997  
Photronics, Inc. shareholders' equity   823,692       804,962  
Noncontrolling interests     176,870       157,304  
Total equity     1,000,562       962,266  
Total liabilities and equity   $ 1,294,202     $ 1,188,182  

Condensed Consolidated Statements of Cash Flows
(in thousands)
    Year Ended
    October 31,   October 31,
      2021       2020  
Cash flows from operating activities:        
Net income   $ 78,816     $ 40,343  
Adjustments to reconcile net income to net cash      
provided by operating activities:        
Depreciation and amortization     90,396       93,814  
Share-based compensation     5,348       4,927  
Changes in operating assets, liabilities and other   (23,788 )     3,962  
Net cash provided by operating activities     150,772       143,046  
Cash flows from investing activities:        
Purchases of property, plant and equipment   (109,099 )     (70,815 )
Government incentives     5,775       5,263  
Purchases of intangible assets     (170 )     (159 )
Net cash used in investing activities     (103,494 )     (65,711 )
Cash flows from financing activities:        
Proceeds from long-term debt     20,858       20,340  
Purchases of treasury stock     (48,250 )     (34,394 )
Repayments of debt     (20,352 )     (7,392 )
Dividends paid to noncontrolling interests   (9,597 )     (16,151 )
Proceeds from share-based arrangements   3,874       4,239  
Contribution from noncontrolling interest   -       17,596  
Net settlements of restricted stock awards   (436 )     (248 )
Net cash used in financing activities     (53,903 )     (16,010 )
Effect of exchange rate changes on cash, cash equivalents, and restricted cash   4,703       10,986  
Net (decrease) increase in cash, cash equivalents, and restricted cash   (1,922 )     72,311  
Cash, cash equivalents, and restricted cash, beginning of period   281,602       209,291  
Cash, cash equivalents, and restricted cash, end of period $ 279,680     $ 281,602  

For Further Information:
John P. Jordan
Executive Vice President & CFO

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Source: Photronics, Inc.