Press Release

Photronics Reports Third Quarter Fiscal 2021 Results

August 25, 2021 at 6:00 AM EDT
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  • Revenue was a record $170.6 million, up 7% sequentially and 8% year-over-year
  • Net income attributable to Photronics, Inc. shareholders was $17.1 million, or $0.28 per diluted share, and includes a gain on the sale of a fixed asset of $3.5 million, or $0.06 per diluted share
  • Cash provided by operating activities was $54.9 million, capex was $18.8 million, share repurchases were $12.5 million, and ending cash balance was $283.2 million
  • Fourth quarter 2021 guidance: revenue between $171 and $179 million with diluted EPS between $0.21 and $0.29

BROOKFIELD, Conn., Aug. 25, 2021 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its fiscal 2021 third quarter ended August 1, 2021.

Third quarter revenue was $170.6 million, up 7% compared with the previous quarter and 8% compared with the same quarter last year. Integrated circuit (IC) revenue was $117.8 million, up 5% sequentially and 8% compared with the third quarter of last year. Flat panel display (FPD) revenue was $52.9 million, up 11% compared with last quarter and 7% compared with the same period last year.

Net income attributable to Photronics, Inc. shareholders was $17.1 million, or $0.28 per diluted share, compared with $10.5 million, or $0.17 per diluted share, for the second quarter of 2021 and $10.8 million, or $0.17 per diluted share, for the third quarter of 2020.

"Demand trends that we observed over the first two quarters of 2021 continued into the third quarter as we achieved record revenue on a consolidated basis as well as for both IC and FPD,” said Peter Kirlin, chief executive officer. “Design activity was strong, and we were able to expand our global manufacturing presence by adding new tools to our operations. Third quarter margin expansion was in line with our demonstrated ability to keep cost under control even as production increases. Most importantly, we maintained a strong balance sheet, enabling us to invest in organic growth and return cash to shareholders through our share repurchase activity. As the leading merchant photomask manufacturer, we expect our business to continue to grow throughout the balance of this year, and remain on track to deliver on our long-term target model objectives.”

Fourth Quarter 2021 Guidance

For the fourth quarter of 2021, Photronics expects revenue to be between $171 million and $179 million, and net income attributable to Photronics, Inc. shareholders to be between $0.21 and $0.29 per diluted share.

Conference Call

A conference call to discuss these results is scheduled for 8:30 a.m. Eastern time on Wednesday, August 25, 2021. 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, 2020, 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.

 



PHOTRONICS, INC. 
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
         
         
  Three Months Ended   Nine Months Ended
  August 1,   May 2,   August 2,   August 1,   August 2,
    2021       2021       2020       2021       2020  
                   
Revenue $ 170,643     $ 159,763     $ 157,895     $ 482,473     $ 460,405  
                   
Cost of goods sold   125,318       120,514       120,161       367,370       357,636  
                   
Gross Profit   45,325       39,249       37,734       115,103       102,769  
                   
Operating Expenses:                  
                   
Selling, general and administrative   15,083       14,067       13,306       43,203       40,792  
                   
Research and development   5,305       4,375       4,492       14,390       13,034  
                   
Total Operating Expenses   20,388       18,442       17,798       57,593       53,826  
                   
Other operating income, net   3,525       -       -       3,525       -  
                   
Operating Income   28,462       20,807       19,936       61,035       48,943  
                   
Other non-operating income (expense), net   3,735       (772 )     (2,135 )     3,643       610  
                   
Income Before Income Tax Provision   32,197       20,035       17,801       64,678       49,553  
                   
Income tax provision   7,842       3,714       4,937       14,493       17,789  
                   
Net Income   24,355       16,321       12,864       50,185       31,764  
                   
Net income attributable to noncontrolling interests   7,279       5,795       2,088       14,547       4,404  
                   
Net income attributable to Photronics, Inc. shareholders $ 17,076     $ 10,526     $ 10,776     $ 35,638     $ 27,360  
                   
Earnings per share:                  
                   
Basic $ 0.28     $ 0.17     $ 0.17     $ 0.58     $ 0.42  
                   
Diluted $ 0.28     $ 0.17     $ 0.17     $ 0.57     $ 0.42  
                   
Weighted-average number of common shares outstanding:                  
                   
Basic   60,884       62,054       64,780       61,804       65,090  
                   
Diluted   61,515       62,568       65,247       62,362       65,704  
                   




PHOTRONICS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
 
       
  August 1,   October 31,
    2021       2020  
       
Assets      
       
Current assets:      
Cash and cash equivalents $ 283,249     $ 278,665  
Accounts receivable   151,190       134,470  
Inventories   53,165       57,269  
Other current assets   42,860       29,735  
       
Total current assets   530,464       500,139  
       
Property, plant and equipment, net   699,609       631,475  
Intangible assets, net   904       3,437  
Other assets   50,780       53,131  
       
Total assets $ 1,281,757     $ 1,188,182  
       
       
       
Liabilities and Equity      
       
Current liabilities:      
Debt $ 25,163     $ 13,678  
Accounts payable and accrued liabilities   142,454       129,261  
       
Total current liabilities   167,617       142,939  
       
Long-term debt   92,740       54,980  
Other liabilities   26,939       27,997  
       
Photronics, Inc. shareholders' equity   817,892       804,962  
Noncontrolling interests   176,569       157,304  
Total equity   994,461       962,266  
       
Total liabilities and equity $ 1,281,757     $ 1,188,182  
       




PHOTRONICS, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
       
       
  Nine Months Ended
  August 1,   August 2,
    2021       2020  
       
Cash flows from operating activities:      
Net income $ 50,185     $ 31,764  
Adjustments to reconcile net income to net cash      
provided by operating activities:      
Depreciation and amortization   69,305       71,120  
Share-based compensation   4,034       3,773  
Changes in operating assets, liabilities and other   (10,428 )     (28,393 )
       
Net cash provided by operating activities   113,096       78,264  
       
Cash flows from investing activities:      
Purchases of property, plant and equipment   (92,301 )     (36,693 )
Government incentives   5,775       5,263  
Purchases of intangible assets   (170 )     (139 )
       
Net cash used in investing activities   (86,696 )     (31,569 )
       
Cash flows from financing activities:      
Proceeds from long-term debt   20,858       5,699  
Purchases of treasury stock   (35,750 )     (16,894 )
Repayments of debt   (13,311 )     (5,929 )
Contribution from noncontrolling interest   -       17,596  
Proceeds from share-based arrangements   2,251       3,869  
Net settlements of restricted stock awards   (403 )     (248 )
       
Net cash (used in) provided by financing activities   (26,355 )     4,093  
       
Effect of exchange rate changes on cash, cash equivalents, and restricted cash   4,602       3,486  
       
Net increase in cash, cash equivalents, and restricted cash   4,647       54,274  
Cash, cash equivalents, and restricted cash, beginning of period   281,602       209,291  
       
Cash, cash equivalents, and restricted cash, end of period $ 286,249     $ 263,565  


For Further Information:
R. Troy Dewar, CFA
Vice President, Investor Relations
(203) 740-5610
tdewar@photronics.com


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Source: Photronics, Inc.