Photronics Reports Full Year and Fourth Quarter Fiscal 2022 Results
“We posted a solid finish to a great year, achieving record revenue for the fifth consecutive year as demand for our design-driven products remained strong and our entire team performed well,” said
Full Year 2022 Results
- Revenue of
$824.5 million was up 24% over the previous year and was the fifth consecutive year of record revenue - Net income attributable to
Photronics, Inc. shareholders was$118.8 million ($1.94 per diluted share), compared with$55.4 million ($0.89 per diluted share) in 2021 - Integrated circuit (IC) revenue was
$593.0 million , up 29% - Flat panel display (FPD) revenue was
$231.5 million , up 14% - Cash and short-term investments increased to
$359 million , with$275 million generated from operating activities and$112 million invested in growth through capital expenditures
Fourth Quarter 2022 Results
- Revenue was
$210.3 million , down 4% sequentially and up 16% compared with the same period of last year - Net income attributable to
Photronics, Inc. shareholders was$37.1 million ($0.60 per diluted share), compared with$31.2 million ($0.51 per diluted share) in the third quarter of 2022 and$19.8 million ($0.33 per diluted share) in the fourth quarter 2021 - IC revenue was
$156.2 million , down 3% sequentially and up 25% compared with the same period of last year - FPD revenue was
$54.1 million , down 8% sequentially and down 3% compared with the same period of last year - Cash generated from operating activities was
$79 million and cash invested in growth through capital expenditures was$66 million
First Quarter 2023 Guidance
For the first quarter of 2023, Photronics expects revenue to be between
Webcast
A webcast 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” 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
| Condensed Consolidated Statements of Income | |||||||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| Revenue | $ | 210,266 | $ | 219,948 | $ | 181,288 | $ | 824,549 | $ | 663,761 | |||||||||
| Cost of goods sold | 129,997 | 136,085 | 129,347 | 530,336 | 496,717 | ||||||||||||||
| Gross Profit | 80,269 | 83,863 | 51,941 | 294,213 | 167,044 | ||||||||||||||
| Operating Expenses: | |||||||||||||||||||
| Selling, general and administrative | 15,683 | 15,960 | 14,322 | 63,989 | 57,525 | ||||||||||||||
| Research and development | 4,045 | 4,151 | 4,100 | 18,341 | 18,490 | ||||||||||||||
| Total Operating Expenses | 19,728 | 20,111 | 18,422 | 82,330 | 76,015 | ||||||||||||||
| Other operating (loss) income, net | - | (23 | ) | - | (17 | ) | 3,525 | ||||||||||||
| Operating Income | 60,541 | 63,729 | 33,519 | 211,866 | 94,554 | ||||||||||||||
| Non-operating income, net | 10,797 | 3,641 | 3,809 | 27,167 | 7,452 | ||||||||||||||
| Income Before Income Tax Provision | 71,338 | 67,370 | 37,328 | 239,033 | 102,006 | ||||||||||||||
| Income tax provision | 16,074 | 18,146 | 8,697 | 59,791 | 23,190 | ||||||||||||||
| Net Income | 55,264 | 49,224 | 28,631 | 179,242 | 78,816 | ||||||||||||||
| Net income attributable to noncontrolling interests | 18,204 | 17,994 | 8,820 | 60,456 | 23,367 | ||||||||||||||
| Net income attributable to |
$ | 37,060 | $ | 31,230 | $ | 19,811 | $ | 118,786 | $ | 55,449 | |||||||||
| Earnings per share: | |||||||||||||||||||
| Basic | $ | 0.61 | $ | 0.51 | $ | 0.33 | $ | 1.96 | $ | 0.90 | |||||||||
| Diluted | $ | 0.60 | $ | 0.51 | $ | 0.33 | $ | 1.94 | $ | 0.89 | |||||||||
| Weighted-average number of common shares outstanding: | |||||||||||||||||||
| Basic | 60,773 | 60,701 | 60,216 | 60,559 | 61,407 | ||||||||||||||
| Diluted | 61,374 | 61,299 | 60,908 | 61,189 | 61,999 | ||||||||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands) | ||||||||
| (Unaudited) | ||||||||
| 2022 | 2021 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 319,680 | $ | 276,670 | ||||
| Short-term investments | 38,820 | - | ||||||
| Accounts receivable | 198,147 | 174,447 | ||||||
| Inventories | 50,753 | 55,249 | ||||||
| Other current assets | 37,252 | 44,250 | ||||||
| Total current assets | 644,652 | 550,616 | ||||||
| Property, plant and equipment, net | 643,873 | 696,553 | ||||||
| Other assets | 27,305 | 47,033 | ||||||
| Total assets | $ | 1,315,830 | $ | 1,294,202 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 10,024 | $ | 22,248 | ||||
| Accounts payable and accrued liabilities | 183,773 | 153,900 | ||||||
| Total current liabilities | 193,797 | 176,148 | ||||||
| Long-term debt | 32,310 | 89,446 | ||||||
| Other liabilities | 27,634 | 28,046 | ||||||
| 831,527 | 823,692 | |||||||
| Noncontrolling interests | 230,562 | 176,870 | ||||||
| Total equity | 1,062,089 | 1,000,562 | ||||||
| Total liabilities and equity | $ | 1,315,830 | $ | 1,294,202 | ||||
| Condensed Consolidated Statements of Cash Flows | |||||||||||
| (in thousands) | |||||||||||
| (Unaudited) | |||||||||||
| Year Ended | |||||||||||
| 2022 | 2021 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 179,242 | $ | 78,816 | |||||||
| Adjustments to reconcile net income to net cash | |||||||||||
| provided by operating activities: | |||||||||||
| Depreciation and amortization | 80,330 | 90,396 | |||||||||
| Share-based compensation | 6,308 | 5,348 | |||||||||
| Changes in operating assets, liabilities and other | 9,307 | (23,788 | ) | ||||||||
| Net cash provided by operating activities | 275,187 | 150,772 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property, plant and equipment | (112,338 | ) | (109,099 | ) | |||||||
| Purchases of available-for-sale debt securities | (38,854 | ) | - | ||||||||
| Government incentives | 3,615 | 5,775 | |||||||||
| Other | (180 | ) | (170 | ) | |||||||
| Net cash used in investing activities | (147,757 | ) | (103,494 | ) | |||||||
| Cash flows from financing activities: | |||||||||||
| Repayments of debt | (65,440 | ) | (20,352 | ) | |||||||
| Purchases of treasury stock | (2,522 | ) | (48,249 | ) | |||||||
| Contributions from noncontrolling interest | 24,995 | - | |||||||||
| Dividends paid to noncontrolling interests | - | (9,597 | ) | ||||||||
| Proceeds from share-based arrangements | 5,749 | 3,874 | |||||||||
| Proceeds from long-term debt | - | 20,858 | |||||||||
| Net settlements of restricted stock awards | (1,471 | ) | (437 | ) | |||||||
| Net cash used in financing activities | (38,689 | ) | (53,903 | ) | |||||||
| Effects of exchange rate changes on cash, cash equivalents, and restricted cash | (46,012 | ) | 4,703 | ||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 42,729 | (1,922 | ) | ||||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 279,680 | 281,602 | |||||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 322,409 | $ | 279,680 | |||||||
For Further Information:
Executive Vice President & CFO
203.740.5671
jjordan@photronics.com
Source: Photronics, Inc.