Press Release

Photronics Reports Second Quarter Fiscal 2021 Results

May 26, 2021 at 6:00 AM EDT
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  • Revenue was a record $159.8 million, up 5% sequentially and 12% year-over-year
  • Net income attributable to Photronics, Inc. shareholders was $10.5 million, or $0.17 per diluted share
  • Cash provided by operating activities was $31.9 million, capex was $56.0 million, share repurchases were $10.0 million, and ending cash balance was $256.0 million
  • Third quarter 2021 guidance: revenue between $162 and $172 million with diluted EPS between $0.19 and $0.25

BROOKFIELD, Conn., May 26, 2021 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its fiscal 2021 second quarter ended May 2, 2021.

Second quarter revenue was $159.8 million, up 5% compared with the previous quarter and 12% compared with the same quarter last year. Integrated circuit (IC) revenue was $112.0 million, up 7% sequentially and 16% compared with the second quarter of last year. Flat panel display (FPD) revenue was $47.8 million, up 1% compared with last quarter and 4% compared with the same period last year.

Net income attributable to Photronics, Inc. shareholders was $10.5 million, or $0.17 per diluted share, compared with $8.0 million, or $0.13 per diluted share, for the first quarter of 2021 and $6.3 million, or $0.10 per diluted share, for the second quarter of 2020.

"We achieved record revenue in the quarter, with growth in both IC and FPD, demonstrating the strength and resiliency of our design-driven demand model, supported by world-class capabilities and unmatched global presence,” said Peter Kirlin, chief executive officer. “Our customers are responding to growing demand for their products, as they innovate to meet more advanced specifications. This creates an environment with strong design activity, driving mask demand across our business. As the largest merchant photomask manufacturer, we are well positioned to benefit from these trends. This ongoing market strength gives us confidence in meeting our long-term financial objectives as well as support for continued investment to expand capacity in our operations. Gross and operating margins expanded to 24.6% and 13.0%, respectively; and we are solidly executing our 2021 plan to outperform our market and increase operating profit by 23%.”

Third Quarter 2021 Guidance

For the third quarter of 2021, Photronics expects revenue to be between $162 million and $172 million, and net income attributable to Photronics, Inc. shareholders to be between $0.19 and $0.25 per diluted share.

Conference Call

A conference call to discuss these results is scheduled for 8:30 a.m. Eastern time on Wednesday, May 26, 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   Six Months Ended
  May 2,
   January 31,   May 3,
   May 2,
   May 3,
  2021
   2021   2020
   2021
   2020
                         
Revenue $ 159,763     $ 152,067   $ 142,774     $ 311,830     $ 302,510
                         
Cost of goods sold 120,514     121,538   112,341     242,052     237,475
                         
Gross profit 39,249     30,529   30,433     69,778     65,035
                         
Operating Expenses:                        
                         
Selling, general and administrative 14,067     14,053   13,267     28,120     27,486
                         
Research and development 4,375     4,710   4,462     9,085     8,541
                         
Total Operating Expenses 18,442     18,763   17,729     37,205     36,027
                         
Operating income 20,807     11,766   12,704     32,573     29,008
                         
Other income (expense), net (772 )   680   (951 )   (92 )   2,745
                         
Income before income tax provision 20,035     12,446   11,753     32,481     31,753
                         
Income tax provision 3,714     2,937   3,781     6,651     12,853
                         
Net income 16,321     9,509   7,972     25,830     18,900
                         
Net income attributable to noncontrolling interests 5,795     1,473   1,688     7,268     2,316
                         
Net income attributable to Photronics, Inc. shareholders $ 10,526     $ 8,036   $ 6,284     $ 18,562     $ 16,584
                         
Earnings per share:                        
                         
Basic $ 0.17     $ 0.13   $ 0.10     $ 0.30     $ 0.25
                         
Diluted $ 0.17     $ 0.13   $ 0.10     $ 0.30     $ 0.25
                         
Weighted-average number of common shares outstanding:                        
                         
Basic 62,054     62,475   64,937     62,265     65,246
                         
Diluted 62,568     63,005   65,417     62,786     65,933



PHOTRONICS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
 
       
  May 2,   October 31,
  2021   2020
       
Assets      
       
Current assets:      
Cash and cash equivalents $ 255,965   $ 278,665
Accounts receivable 143,923   134,470
Inventories 56,384   57,269
Other current assets 39,336   29,735
       
Total current assets 495,608   500,139
       
Property, plant and equipment, net 717,426   631,475
Intangible assets, net 1,356   3,437
Other assets 51,599   53,131
       
Total assets $ 1,265,989   $ 1,188,182
       
       
       
Liabilities and Equity      
       
Current liabilities:      
Debt $ 25,658   $ 13,678
Accounts payable and accrued liabilities 133,629   129,261
       
Total current liabilities 159,287   142,939
       
Long-term debt 88,444   54,980
Other liabilities 27,441   27,997
       
Photronics, Inc. shareholders' equity 821,392   804,962
Noncontrolling interests 169,425   157,304
Total equity 990,817   962,266
       
Total liabilities and equity $ 1,265,989   $ 1,188,182


PHOTRONICS, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
           
           
  Six Months Ended
  May 2,
   May 3,
  2021
   2020
           
Cash flows from operating activities:          
Net income $ 25,830     $ 18,900  
Adjustments to reconcile net income to net cash          
provided by operating activities:          
Depreciation and amortization 47,121     47,896  
Share-based compensation 2,723     2,576  
Changes in operating assets, liabilities and other (17,455 )   (8,049 )
           
Net cash provided by operating activities 58,219     61,323  
           
Cash flows from investing activities:          
Purchases of property, plant and equipment (73,516 )   (30,127 )
Government incentives 5,775     5,260  
Other (157 )   (139 )
           
Net cash used in investing activities (67,898 )   (25,006 )
           
Cash flows from financing activities:          
Proceeds from long-term debt 12,439     1,140  
Contribution from noncontrolling interest -     7,600  
Purchase of treasury stock (23,250 )   (16,894 )
Repayments of debt (8,636 )   (389 )
Proceeds from share-based arrangements 1,180     3,423  
Other (371 )   (251 )
           
Net cash used in financing activities (18,638 )   (5,371 )
           
Effect of exchange rate changes on cash, cash equivalents, and restricted cash 5,686     475  
           
Net (decrease) increase in cash, cash equivalents, and restricted cash (22,631 )   31,421  
Cash, cash equivalents, and restricted cash, beginning of period 281,602     209,291  
           
Cash, cash equivalents, and restricted cash, end of period $ 258,971     $ 240,712  

 

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

tdewar@photronics.com

 


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Source: Photronics, Inc.