Photronics Reports Full Year and Fourth Quarter Fiscal 2021 Results
“Photronics achieved a fourth consecutive year of record revenue, as demand for our design-driven products accelerated and we fully ramped new flat panel display capacity,” said
Full Year 2021 Results
- Revenue of
$663.8 million was a record for the fourth consecutive year, up 9% compared with 2020 - Net income attributable to
Photronics, Inc. shareholders was$55.4 million , or$0.89 per diluted share - Cash provided by operating activities was
$150.8 million , capex was$103.5 million , share repurchases were$48.3 million , and ending cash balance was$276.7 million
Fourth Quarter 2021 Results
- Revenue was
$181.3 million , the third consecutive quarterly record, up 6% sequentially and 21% year-over-year - Net income attributable to
Photronics, Inc. shareholders was$19.8 million ($0.33 per diluted share), compared with$17.1 million ($0.28 per diluted share) for the third quarter of 2021 and$6.5 million ($0.10 per diluted share) for the fourth quarter of 2020
Full year integrated circuit (IC) revenue was
IC revenue in the fourth quarter was
“Past investments in targeted technologies are paying off, as margin expansion is accompanying top-line growth,” added Kirlin. “We are generating gross and operating margins already at the high-end of the three-year target model we presented last year, and our strong cash flow enables us to invest in the business while we also return cash to shareholders as part of our disciplined capital allocation. With strong end market demand, solid balance sheet, broad geographic presence, and a team with a proven track record, we are excited about our future and optimistic we can deliver on our long-term target model objectives.”
First Quarter 2022 Guidance
For the first quarter of 2022, Photronics expects revenue to be between
Conference Call
A conference call to discuss these results is scheduled for
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
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
| Condensed Consolidated Statements of Income | ||||||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||
| Revenue | $ | 181,288 | $ | 170,643 | $ | 149,286 | $ | 663,761 | $ | 609,691 | ||||||||||
| Cost of goods sold | 129,347 | 125,318 | 117,401 | 496,717 | 475,037 | |||||||||||||||
| Gross Profit | 51,941 | 45,325 | 31,885 | 167,044 | 134,654 | |||||||||||||||
| Operating Expenses: | ||||||||||||||||||||
| Selling, general and administrative | 14,322 | 15,083 | 12,790 | 57,525 | 53,582 | |||||||||||||||
| Research and development | 4,100 | 5,305 | 4,110 | 18,490 | 17,144 | |||||||||||||||
| Total Operating Expenses | 18,422 | 20,388 | 16,900 | 76,015 | 70,726 | |||||||||||||||
| Other operating income, net | - | 3,525 | - | 3,525 | - | |||||||||||||||
| Operating Income | 33,519 | 28,462 | 14,985 | 94,554 | 63,928 | |||||||||||||||
| Non-operating income (expense), net | 3,809 | 3,735 | (2,937 | ) | 7,452 | (2,327 | ) | |||||||||||||
| Income Before Income Tax Provision | 37,328 | 32,197 | 12,048 | 102,006 | 61,601 | |||||||||||||||
| Income tax provision | 8,697 | 7,842 | 3,469 | 23,190 | 21,258 | |||||||||||||||
| Net Income | 28,631 | 24,355 | 8,579 | 78,816 | 40,343 | |||||||||||||||
| Net income attributable to noncontrolling interests | 8,820 | 7,279 | 2,119 | 23,367 | 6,523 | |||||||||||||||
| Net income attributable to |
$ | 19,811 | $ | 17,076 | $ | 6,460 | $ | 55,449 | $ | 33,820 | ||||||||||
| Earnings per share: | ||||||||||||||||||||
| Basic | $ | 0.33 | $ | 0.28 | $ | 0.10 | $ | 0.90 | $ | 0.52 | ||||||||||
| Diluted | $ | 0.33 | $ | 0.28 | $ | 0.10 | $ | 0.89 | $ | 0.52 | ||||||||||
| Weighted-average number of common shares outstanding: | ||||||||||||||||||||
| Basic | 60,216 | 60,884 | 64,193 | 61,407 | 64,866 | |||||||||||||||
| Diluted | 60,908 | 61,515 | 64,768 | 61,999 | 65,470 | |||||||||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands) | ||||||||
| (Unaudited) | ||||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 276,670 | $ | 278,665 | ||||
| Accounts receivable | 174,447 | 134,470 | ||||||
| Inventories | 55,249 | 57,269 | ||||||
| Other current assets | 44,250 | 29,735 | ||||||
| Total current assets | 550,616 | 500,139 | ||||||
| Property, plant and equipment, net | 696,553 | 631,475 | ||||||
| Intangible assets, net | 774 | 3,437 | ||||||
| Other assets | 46,259 | 53,131 | ||||||
| Total assets | $ | 1,294,202 | $ | 1,188,182 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities: | ||||||||
| Debt | $ | 22,248 | $ | 13,678 | ||||
| Accounts payable and accrued liabilities | 153,900 | 129,261 | ||||||
| Total current liabilities | 176,148 | 142,939 | ||||||
| Long-term debt | 89,446 | 54,980 | ||||||
| Other liabilities | 28,046 | 27,997 | ||||||
| 823,692 | 804,962 | |||||||
| Noncontrolling interests | 176,870 | 157,304 | ||||||
| Total equity | 1,000,562 | 962,266 | ||||||
| Total liabilities and equity | $ | 1,294,202 | $ | 1,188,182 | ||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (in thousands) | ||||||||
| (Unaudited) | ||||||||
| Year Ended | ||||||||
| 2021 | 2020 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 78,816 | $ | 40,343 | ||||
| Adjustments to reconcile net income to net cash | ||||||||
| provided by operating activities: | ||||||||
| Depreciation and amortization | 90,396 | 93,814 | ||||||
| Share-based compensation | 5,348 | 4,927 | ||||||
| Changes in operating assets, liabilities and other | (23,788 | ) | 3,962 | |||||
| Net cash provided by operating activities | 150,772 | 143,046 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of property, plant and equipment | (109,099 | ) | (70,815 | ) | ||||
| Government incentives | 5,775 | 5,263 | ||||||
| Purchases of intangible assets | (170 | ) | (159 | ) | ||||
| Net cash used in investing activities | (103,494 | ) | (65,711 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from long-term debt | 20,858 | 20,340 | ||||||
| Purchases of treasury stock | (48,250 | ) | (34,394 | ) | ||||
| Repayments of debt | (20,352 | ) | (7,392 | ) | ||||
| Dividends paid to noncontrolling interests | (9,597 | ) | (16,151 | ) | ||||
| Proceeds from share-based arrangements | 3,874 | 4,239 | ||||||
| Contribution from noncontrolling interest | - | 17,596 | ||||||
| Net settlements of restricted stock awards | (436 | ) | (248 | ) | ||||
| Net cash used in financing activities | (53,903 | ) | (16,010 | ) | ||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 4,703 | 10,986 | ||||||
| Net (decrease) increase in cash, cash equivalents, and restricted cash | (1,922 | ) | 72,311 | |||||
| Cash, cash equivalents, and restricted cash, beginning of period | 281,602 | 209,291 | ||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 279,680 | $ | 281,602 | ||||
For Further Information:
Executive Vice President & CFO
203.740.5671
jjordan@photronics.com
Source: Photronics, Inc.