Press Release

Photronics Reports Third Quarter Fiscal 2022 Results

August 30, 2022 at 6:00 AM EDT
PDF Version

BROOKFIELD, Conn., Aug. 30, 2022 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its fiscal 2022 third quarter ended July 31, 2022.

“We achieved our sixth consecutive quarter of record revenue due to strong end market demand, favorable pricing dynamics, and outstanding performance by the entire organization,” said Frank Lee, chief executive officer. “Customers continue to place their trust in Photronics to support their technology roadmap by supplying the high-quality photomasks required for innovative designs that meet consumer demand. We are expanding capacity and growing volumes while controlling costs and capitalizing on operating leverage to deliver higher margins. We are also taking pricing action where appropriate to capture the full value that we are delivering to our customers. Our cash balance grew as we generated strong cash flow from operations, positioning us for continued investments in growth to expand our market-leading presence. I am proud of how the global Photronics team has responded as we look to close out another record year.”

Third Quarter 2022 Results

  • Revenue was $219.9 million, up 8% sequentially and 29% compared with the same period of last year
  • Net income attributable to Photronics, Inc. shareholders was $31.2 million ($0.51 per diluted share), compared with $27.4 million ($0.45 per diluted share) in the second quarter of 2022 and $17.1 million ($0.28 per diluted share) in the third quarter 2021
  • Integrated circuit (IC) revenue was $161.3 million, up 11% sequentially and up 37% compared with the same period of last year
  • Flat panel display (FPD) revenue was $58.7 million, flat sequentially and up 11% compared with the same period of last year
  • Cash balance increased to $381 million with $93 million generated from operating activities and $12 million invested in growth through capital expenditures

Fourth Quarter 2022 Guidance

For the fourth 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 $0.44 and $0.52 per diluted share.

Webcast

A webcast to discuss these results is scheduled for 8:30 a.m. Eastern time on Tuesday, August 30, 2022. The event can be accessed through the Investors page of Photronics' website (www.photronics.com) or directly at https://register.vevent.com/register/BI5f5ea35d921040438cfa995c228f1b08. The webcast 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   Nine Months Ended
    July 31,   May 1,   August 1,   July 31,   August 1,
    2022   2022   2021   2022   2021
                     
Revenue   $ 219,948     $ 204,509   $ 170,643   $ 614,283     $ 482,473
                     
Cost of goods sold     136,085       134,289     125,318     400,338       367,370
                     
Gross Profit     83,863       70,220     45,325     213,945       115,103
                     
Operating Expenses:                    
                     
Selling, general and administrative   15,960       16,613     15,083     48,306       43,203
                     
Research and development     4,151       4,206     5,305     14,297       14,390
                     
Total Operating Expenses     20,111       20,819     20,388     62,603       57,593
                     
Other operating (loss) income, net   (23 )     -     3,525     (17 )     3,525
                     
Operating Income     63,729       49,401     28,462     151,325       61,035
                     
Non-operating income, net     3,641       8,021     3,735     16,370       3,643
                     
Income Before Income Tax Provision   67,370       57,422     32,197     167,695       64,678
                     
Income tax provision     18,146       14,393     7,842     43,717       14,493
                     
Net Income     49,224       43,029     24,355     123,978       50,185
                     
Net income attributable to noncontrolling interests   17,994       15,597     7,279     42,252       14,547
                     
Net income attributable to Photronics, Inc. shareholders $ 31,230     $ 27,432   $ 17,076   $ 81,726     $ 35,638
                     
Earnings per share:                    
                     
Basic   $ 0.51     $ 0.45   $ 0.28   $ 1.35     $ 0.58
                     
Diluted   $ 0.51     $ 0.45   $ 0.28   $ 1.34     $ 0.57
                     
Weighted-average number of common shares outstanding:                  
                     
Basic     60,701       60,606     60,884     60,488       61,804
                     
Diluted     61,299       61,145     61,515     61,127       62,362
                     



PHOTRONICS, INC.  
Condensed Consolidated Balance Sheets  
(in thousands)  
(Unaudited)  
           
    July 31,   October 31,  
    2022   2021  
           
Assets          
           
Current assets:          
   Cash and cash equivalents   $ 380,833   $ 276,670  
   Accounts receivable     206,495     174,447  
   Inventories     50,313     55,249  
   Other current assets     40,414     44,250  
           
      Total current assets     678,055     550,616  
           
Property, plant and equipment, net   640,805     696,553  
Other assets     30,737     47,033  
           
Total assets   $ 1,349,597   $ 1,294,202  
           
           
           
Liabilities and Equity          
           
Current liabilities:          
   Current portion of long-term debt $ 10,727   $ 22,248  
   Accounts payable and accrued liabilities   186,387     153,900  
           
      Total current liabilities     197,114     176,148  
           
Long-term debt     46,589     89,446  
Other liabilities     25,936     28,046  
           
Photronics, Inc. shareholders' equity   850,318     823,692  
Noncontrolling interests     229,640     176,870  
      Total equity     1,079,958     1,000,562  
           
Total liabilities and equity   $ 1,349,597   $ 1,294,202  
           



PHOTRONICS, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
         
         
    Nine Months Ended
    July 31,   August 1,
    2022   2021
         
Cash flows from operating activities:        
     Net income   $ 123,978     $ 50,185  
     Adjustments to reconcile net income to net cash      
      provided by operating activities:        
         Depreciation and amortization     61,210       69,305  
         Share-based compensation     4,623       4,034  
         Changes in operating assets, liabilities and other   6,110       (10,428 )
         
Net cash provided by operating activities     195,921       113,096  
         
Cash flows from investing activities:        
       Purchases of property, plant and equipment   (46,337 )     (92,301 )
       Government incentives     1,394       5,775  
       Other     (179 )     (170 )
         
Net cash used in investing activities     (45,122 )     (86,696 )
         
Cash flows from financing activities:        
       Repayments of debt     (51,917 )     (13,311 )
       Purchases of treasury stock     (2,522 )     (35,750 )
       Contributions from noncontrolling interest   24,995       -  
       Proceeds from share-based arrangements   5,505       2,251  
       Proceeds from long-term debt     -       20,858  
       Net settlements of restricted stock awards   (1,463 )     (403 )
         
Net cash used in financing activities     (25,402 )     (26,355 )
         
Effects of exchange rate changes on cash, cash equivalents, and restricted cash   (21,308 )     4,602  
         
Net increase in cash, cash equivalents, and restricted cash   104,089       4,647  
Cash, cash equivalents, and restricted cash, beginning of period   279,680       281,602  
         
Cash, cash equivalents, and restricted cash, end of period $ 383,769     $ 286,249  
         
         

 




 

 


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Source: Photronics, Inc.