Press Release

Photronics Reports Full Year and Fourth Quarter Fiscal 2024 Results

December 11, 2024 at 6:30 AM EST
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BROOKFIELD, Conn., Dec. 11, 2024 (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 of fiscal year 2024 ended October 31, 2024.

“We achieved sequential revenue growth in the fourth quarter, with increased sales in both Integrated Circuits (IC) and Flat Panel Displays (FPD),” said Frank Lee, chief executive officer. “IC growth was driven by strong high-end sales, particularly in the US, while FPD was led by mainstream demand. Photomask demand trends were favorable as we ended the year and we are cautiously optimistic that these trends will continue into 2025, driven by megatrends such as AI, supply chain regionalization, and edge computing. We believe our competitive advantages and market leadership will allow us to grow along with the photomask market growth trajectory. Combined with financial discipline to expand margins and improve cash flow, we are well positioned to continue growing profitably and creating shareholder value.”

Full Year Fiscal 2024 Results

  • Revenue was $866.9 million, down 3% from the previous year.
  • GAAP net income attributable to Photronics, Inc. shareholders was $130.7 million, or $2.09 per diluted share, compared with $125.5 million, or $2.03 per diluted share in 2023.
  • Non-GAAP net income attributable to Photronics, Inc. shareholders was $127.6 million, or $2.05 per diluted share, compared with $126.0 million, or $2.04 per diluted share in 2023.
  • IC revenue was $638.1 million, down 2%.
  • FPD revenue was $228.8 million, down 5%.
  • Cash generated from operating activities was $261.4 million, and cash invested in organic growth through capital expenditures was $130.9 million.

Fourth Quarter Fiscal 2024 Results

  • Revenue was $222.6 million, down 2% year-over-year and up 6% sequentially.
  • GAAP Net income attributable to Photronics, Inc. shareholders was $33.9 million, or $0.54 per diluted share, compared with $44.6 million, or $0.72 per diluted share in the fourth quarter of 2023 and $34.4 million, or $0.55 per diluted share in the third quarter of 2024.
  • Non-GAAP Net income attributable to Photronics, Inc. shareholders was $37.1 million, or $0.59 per diluted share, compared with $37.2 million, or $0.60 per diluted share in the fourth quarter of 2023 and $31.9 million, or $0.51 per diluted share in the third quarter of 2024.
  • IC revenue was $163.7 million, down 1% year-over-year and up 5% sequentially.
  • FPD revenue was $58.9 million, down 7% from the same quarter last year and up 7% sequentially.
  • Cash generated from operating activities was $68.4 million, and cash invested in organic growth through capital expenditures was $43.2 million.
  • Cash and Short-term investments at the end of the quarter were $640.7 million, and Debt was $18.0 million.

First Quarter Fiscal 2025 Guidance

For the first quarter of fiscal 2025, Photronics expects Revenue to be between $208 million and $216 million and non-GAAP Net income attributable to Photronics, Inc. shareholders to be between $0.43 and $0.49 per diluted share.

Webcast

A webcast to discuss these results is scheduled for 8:30 a.m. Eastern time on December 11, 2024. The call will be broadcast live and on-demand on the Events and Presentations link on the Photronics website. Analysts and investors who wish to participate in the Q&A portion of the call should click here. It is suggested that participants register fifteen minutes prior to the call's scheduled start time.

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, 2024, the company had approximately 1,878 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 our Annual Report on Form 10-K for the fiscal year ended October 31, 2023 and other subsequent filings 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. 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.

Non-GAAP Financial Measures

Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP diluted earnings per share are "non-GAAP financial measures" as such term is defined by Regulation G of the Securities and Exchange Commission, and may differ from similarly named non-GAAP financial measures used by other companies. The attached financial supplement reconciles Photronics, Inc. financial results under GAAP to non-GAAP financial information. We believe these non-GAAP financial measures that exclude certain items are useful for analysts and investors to evaluate our future on-going performance because they enable a more meaningful comparison of our projected performance with our historical results. These non-GAAP metrics are not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss), Net income (loss) per share, or any other measure of consolidated results under U.S. GAAP. The items excluded from these non-GAAP metrics, but included in the calculation of their closest GAAP equivalent, are significant components of the condensed consolidated statement of income and must be considered in performing a comprehensive assessment of overall financial performance. Please refer to the non-GAAP reconciliations below.

For Further Information:
Ted Moreau
VP, Investor Relations
469.395.8175
tmoreau@photronics.com


PHOTRONICS, INC. 
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
       
  Three Months Ended   Year Ended
  October 31,   July 28,   October 31,   October 31,   October 31,
    2024       2024     2023     2024       2023  
                   
Revenue $ 222,628     $ 210,984   $ 227,473   $ 866,946     $ 892,076  
                   
Cost of goods sold   140,326       135,846     142,591     551,000       555,914  
                   
Gross Profit   82,302       75,138     84,882     315,946       336,162  
                   
Operating Expenses:                  
                   
Selling, general and administrative   21,008       19,436     16,731     77,760       69,458  
                   
Research and development   5,285       3,555     3,367     16,576       13,654  
                   
Total Operating Expenses   26,293       22,991     20,098     94,336       83,112  
                   
Other operating (loss) gain   (182 )     1     -     (92 )     -  
                   
Operating Income   55,827       52,148     64,784     221,518       253,050  
                   
Non-operating (loss) income, net   (1,034 )     10,145     18,660     25,897       16,896  
                   
Income Before Income Tax Provision   54,793       62,293     83,444     247,415       269,946  
                   
Income tax provision   14,568       14,124     20,288     63,567       70,312  
                   
Net Income   40,225       48,169     63,156     183,848       199,634  
                   
Net income attributable to noncontrolling interests   6,356       13,781     18,545     53,160       74,149  
                   
Net income attributable to Photronics, Inc. shareholders $ 33,869     $ 34,388   $ 44,611   $ 130,688     $ 125,485  
                   
Earnings per share:                  
                   
Basic $ 0.55     $ 0.56   $ 0.73   $ 2.12     $ 2.05  
                   
Diluted $ 0.54     $ 0.55   $ 0.72   $ 2.09     $ 2.03  
                   
Weighted-average number of common shares outstanding:                  
                   
Basic   61,863       61,815     61,290     61,726       61,139  
                   
Diluted   62,456       62,414     62,067     62,391       61,755  
                   


PHOTRONICS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
         
  October 31,   October 31,  
    2024     2023  
         
Assets        
         
Current assets:        
Cash and cash equivalents $ 598,485   $ 499,292  
Short-term investments   42,184     12,915  
Accounts receivable   200,830     194,927  
Inventories   56,527     49,963  
Other current assets   33,036     28,353  
         
Total current assets   931,062     785,450  
         
Property, plant and equipment, net   745,257     709,244  
Other assets   35,740     31,527  
         
Total assets $ 1,712,059   $ 1,526,221  
         
         
         
Liabilities and Equity        
         
Current liabilities:        
Current portion of long-term debt $ 17,972   $ 6,621  
Accounts payable and accrued liabilities   165,839     178,602  
         
Total current liabilities   183,811     185,223  
         
Long-term debt   25     17,998  
Other liabilities   47,464     47,391  
         
Equity:        
Photronics, Inc. shareholders' equity   1,120,864     975,008  
Noncontrolling interests   359,895     300,601  
Total equity   1,480,759     1,275,609  
         
Total liabilities and equity $ 1,712,059   $ 1,526,221  
         


PHOTRONICS, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
       
  Year Ended
  October 31,   October 31,
    2024       2023  
       
Cash flows from operating activities:      
Net income $ 183,848     $ 199,634  
Adjustments to reconcile net income to net cash      
provided by operating activities:      
Depreciation and amortization   82,805       80,835  
Share-based compensation   13,890       8,001  
Changes in operating assets, liabilities and other   (19,099 )     13,706  
       
Net cash provided by operating activities   261,444       302,176  
       
Cash flows from investing activities:      
Purchases of property, plant and equipment   (130,942 )     (131,295 )
Purchases of short-term investments   (100,558 )     (20,192 )
Proceeds from maturities of short-term investments   72,836       47,537  
Government incentives   2,229       2,522  
Other   (30 )     (117 )
       
Net cash used in investing activities   (156,465 )     (101,545 )
       
Cash flows from financing activities:      
Repayments of debt   (6,621 )     (18,439 )
Proceeds from share-based arrangements   1,916       1,248  
Net settlements of restricted stock awards   (3,025 )     (1,302 )
       
Net cash used in financing activities   (7,730 )     (18,493 )
       
Effects of exchange rate changes on cash, cash equivalents, and restricted cash   2,127       (2,680 )
       
Net increase in cash, cash equivalents, and restricted cash   99,376       179,458  
Cash, cash equivalents, and restricted cash, beginning of period   501,867       322,409  
       
Cash, cash equivalents, and restricted cash, end of period $ 601,243     $ 501,867  
       


PHOTRONICS, INC.
Reconciliation of GAAP Net income attributable to Photronics, Inc. shareholders to Non-GAAP Net income and
GAAP Diluted Earnings Per Share to Non-GAAP Diluted Earnings Per Share
(in thousands)
(Unaudited)
                   
  Three Months ended Year Ended
  October 31,   July 28,   October 31,   October 31,   October 31,
    2024       2024       2023       2024       2023  
                   
                   
GAAP Net Income attributable to Photronics, Inc. shareholders $ 33,869     $ 34,388     $ 44,611     $ 130,688     $ 125,485  
FX (gain) loss   7,758       (4,068 )     (13,234 )     (2,168 )     (2,466 )
Estimated tax effects of FX (gain) loss   (1,936 )     914       3,437       477       317  
Estimated noncontrolling interest effects of above   (2,637 )     681       2,431       (1,407 )     2,676  
Non-GAAP Net income attributable to Photronics, Inc. shareholders $ 37,054     $ 31,915     $ 37,245     $ 127,590     $ 126,012  
                   
Weighted-average number of common shares outstanding - Diluted   62,456       62,414       62,067       62,391       61,755  
                   
                   
GAAP Diluted Earnings Per Share $ 0.54     $ 0.55     $ 0.72     $ 2.09     $ 2.03  
Effects of non-GAAP adjustments above   0.05       (0.04 )     (0.12 )     (0.04 )     0.01  
Non-GAAP Diluted Earnings Per Share $ 0.59     $ 0.51     $ 0.60     $ 2.05     $ 2.04  
                   

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Source: Photronics, Inc.