PHOTRONICS, INC.
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(Exact name of registrant as specified in its charter)
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Connecticut
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0-15451
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06-0854886
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification Number)
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15 Secor Road, Brookfield, CT
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06804
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(Address of Principal Executive Offices)
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(Zip Code)
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(Former name or former address, if changed since last report)
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☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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(d) |
Exhibits
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99.1 |
Press Release dated February 15, 2017
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99.2 |
Condensed Consolidated Statements of Income
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99.3 |
Condensed Consolidated Balance Sheets
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99.4 |
Condensed Consolidated Statements of Cash Flows
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99.5 |
Reconciliation of GAAP to Non-GAAP Financial Information
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PHOTRONICS, INC.
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(Registrant)
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DATE: February 15, 2017
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BY
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/s/ Richelle E. Burr
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Richelle E. Burr
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Vice President, General Counsel
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PHOTRONICS, INC.
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Press Release
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For Further Information:
R. Troy Dewar, CFA
Director, Investor Relations
(203) 740-5610
tdewar@photronics.com
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• |
First quarter sales were $109.8 million, up 2% sequentially on improved IC sales
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• |
Net income attributable to Photronics, Inc. shareholders was $1.9 million ($0.03 per diluted share)
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• |
Net cash1 improved to $264 million, providing additional financial strength and flexibility to fund growth
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• |
Plan to break ground on new, state-of-the-art IC photomask facility in China by the end of February
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• |
Second quarter 2017 guidance: sales between $105 and $115 million; diluted EPS between $0.01 and $0.07
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· |
Non-recurring tax benefit in fiscal 2016 related to the recognition of certain tax benefits in Taiwan that were determined to be realizable in filings for future tax periods
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· |
Non-recurring net gain on sale of investment in fiscal 2016
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· |
Interest expense, income tax expense/(benefit), depreciation and amortization, and other items are added to GAAP net income to derive non-GAAP EBITDA
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Three Months Ended
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||||||||||||
January 29,
2017
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October 30,
2016
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January 31,
2016
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||||||||||
Net sales
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$
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109,831
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$
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107,368
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$
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129,956
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||||||
Costs and expenses:
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||||||||||||
Cost of sales
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(86,832
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)
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(86,835
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)
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(94,520
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)
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||||||
Gross profit
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22,999
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20,533
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35,436
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|||||||||
Selling, general and administrative
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(10,871
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)
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(10,191
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)
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(12,198
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)
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||||||
Research and development
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(3,485
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)
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(5,041
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)
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(5,700
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)
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||||||
Operating income
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8,643
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5,301
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17,538
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|||||||||
Gain on sale of investment
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-
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-
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8,785
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|||||||||
Other income (expense), net
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(2,083
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)
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(69
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)
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878
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|||||||
Income before income taxes
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6,560
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5,232
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27,201
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|||||||||
Income tax provision
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(2,050
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)
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1,337
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(3,700
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)
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|||||||
Net income
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4,510
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6,569
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23,501
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|||||||||
Net income attributable to noncontrolling interests
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(2,564
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)
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(1,313
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)
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(2,499
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)
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||||||
Net income attributable to Photronics, Inc. shareholders
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$
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1,946
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$
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5,256
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$
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21,002
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||||||
Earnings per share:
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||||||||||||
Basic
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$
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0.03
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$
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0.08
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$
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0.31
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||||||
Diluted
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$
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0.03
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$
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0.08
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$
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0.28
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||||||
Weighted-average number of common shares outstanding:
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||||||||||||
Basic
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68,176
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68,025
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66,807
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|||||||||
Diluted
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69,169
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68,906
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79,136
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January 29,
2017
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October 30,
2016
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|||||||
Assets
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$
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329,696
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$
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314,074
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||||
Accounts receivable
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86,025
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92,636
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||||||
Inventories
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23,573
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22,081
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||||||
Other current assets
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11,244
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12,795
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||||||
Total current assets
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450,538
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441,586
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||||||
Property, plant and equipment, net
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496,676
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506,434
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||||||
Intangible assets, net
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20,094
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19,854
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||||||
Other assets
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20,160
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20,114
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||||||
Total assets
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$
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987,468
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$
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987,988
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Liabilities and Equity
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||||||||
Current liabilities:
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||||||||
Current portion of long-term borrowings
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$
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5,465
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$
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5,428
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||||
Accounts payable and accrued liabilities
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69,872
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75,889
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||||||
Total current liabilities
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75,337
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81,317
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||||||
Long-term borrowings
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60,508
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61,860
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||||||
Other liabilities
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20,215
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19,337
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||||||
Photronics, Inc. shareholders' equity
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712,476
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710,363
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||||||
Noncontrolling interests
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118,932
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115,111
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||||||
Total equity
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831,408
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825,474
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||||||
Total liabilities and equity
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$
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987,468
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$
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987,988
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Three Months Ended
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||||||||
January 29,
2017
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January 31,
2016
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|||||||
Cash flows from operating activities:
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||||||||
Net income
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$
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4,510
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$
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23,501
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||||
Adjustments to reconcile net income to net cash
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||||||||
provided by operating activities:
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||||||||
Depreciation and amortization
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20,965
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20,628
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||||||
Gain on sale of investment
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-
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(8,785
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)
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|||||
Changes in assets, liabilities and other
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6,064
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8,044
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||||||
Net cash provided by operating activities
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31,539
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43,388
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||||||
Cash flows from investing activities:
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||||||||
Purchases of property, plant and equipment
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(9,600
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)
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(21,539
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)
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||||
Acquisition of Business
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(5,400
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)
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-
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|||||
Proceeds from sale of investments
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-
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8,785
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||||||
Other
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(396
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)
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193
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|||||
Net cash used in investing activities
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(15,396
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)
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(12,561
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)
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||||
Cash flows from financing activities:
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||||||||
Repayments of long-term borrowings
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(1,343
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)
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(2,437
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)
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||||
Proceeds from share-based arrangements
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1,113
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2,063
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||||||
Other
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(16
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)
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-
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|||||
Net cash used in financing activities
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(246
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)
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(374
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)
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||||
Effect of exchange rate changes on cash
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(275
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)
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(4,876
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)
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||||
Net increase in cash and cash equivalents
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15,622
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25,577
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||||||
Cash and cash equivalents, beginning of period
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314,074
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205,867
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||||||
Cash and cash equivalents, end of period
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$
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329,696
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$
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231,444
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Three Months Ended
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||||||||||||
January 29,
2017
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October 30,
2016
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January 31,
2016
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||||||||||
Reconciliation of GAAP to Non-GAAP Net Income Attributable to Photronics, Inc. Shareholders and EPS data
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||||||||||||
GAAP net income attributable to Photronics, Inc. shareholders
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$
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1,946
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$
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5,256
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$
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21,002
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||||||
Income tax expense/(benefit) (a)
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-
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(1,834
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)
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-
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||||||||
Gain on sale of investment, net of tax (b)
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-
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-
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(8,753
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)
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||||||||
Non-GAAP net income attributable to Photronics, Inc. shareholders
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$
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1,946
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$
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3,422
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$
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12,249
|
||||||
Weighted average number of diluted shares outstanding
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||||||||||||
GAAP
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69,169
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68,906
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79,136
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|||||||||
Non-GAAP
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69,169
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68,906
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79,136
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|||||||||
Net income per diluted share
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||||||||||||
GAAP
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$
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0.03
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$
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0.08
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$
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0.28
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||||||
Non-GAAP
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$
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0.03
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$
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0.05
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$
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0.17
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||||||
Reconciliation of GAAP Net Income to Non-GAAP EBITDA
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||||||||||||
GAAP Net Income (c)
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$
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4,510
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$
|
6,569
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$
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23,501
|
||||||
Interest expense
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559
|
616
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1,174
|
|||||||||
Income tax expense/(benefit)
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2,050
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(1,337
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)
|
3,700
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||||||||
Depreciation and amortization
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20,896
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22,304
|
20,457
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|||||||||
Other items (d)
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937
|
980
|
897
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|||||||||
Non-GAAP EBITDA
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$
|
28,952
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$
|
29,132
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$
|
49,729
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(a)
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Represents tax benefit primarily related to the recognition of prior period tax benefits and other tax positions no longer deemed necessary in Taiwan
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(b) |
Represents gain on sale of investment in a foreign entity
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(c) |
Includes net income attributable to noncontrolling interests and, in 2016, includes gain on sale of investment in a foreign entity
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(d) |
Consists of stock compensation expense
|