CORRECTING and REPLACING -- Photronics Reports First Quarter Fiscal 2021 Results
February 24 2021 - 8:40AM
In a release issued under the same headline earlier today
by Photronics, Inc. (NASDAQ:PLAB), please note that the second
half of the "Condensed Consolidated Balance Sheets" table,
beginning with "Liabilities and Equity" was omitted. The
corrected release follows:
- Revenue was $152.1 million, up 2%
sequentially and down 5% year-over-year
- Net income
attributable to Photronics, Inc. shareholders was $8.0 million, or
$0.13 per diluted share
- Cash provided
by operating activities was $26.3 million, capex was $17.5 million,
share repurchases were $13.2 million, and ending cash balance was
$278.5 million
- Second quarter
2021 guidance: revenue between $153 and $162 million with diluted
EPS between $0.14 and $0.20
Photronics, Inc. (NASDAQ:PLAB), a worldwide
leader in photomask technologies and solutions, today reported
financial results for its fiscal 2021 first quarter ended January
31, 2021.
First quarter revenue was $152.1 million, up 2%
compared with the previous quarter and down 5% compared with the
same quarter last year. Integrated circuit (IC) revenue was $105.0
million, down 1% sequentially and 2% compared with the first
quarter of last year. Flat panel display (FPD) revenue was $47.1
million, up 9% compared with last quarter and down 11% compared
with the same period last year.
Net income attributable to Photronics, Inc.
shareholders was $8.0 million, or $0.13 per diluted share, compared
with $6.5 million, or $0.10 per diluted share, for the fourth
quarter of 2020 and $10.3 million, or $0.16 per diluted share, for
the first quarter of 2020.
"We achieved sequential revenue growth in the
first quarter, a period that is typically down seasonally, due to
strong demand for mobile displays and a recovery in memory,” said
Peter Kirlin, chief executive officer. “Our diverse and broad
industry exposure enabled us to perform well even as mask demand
was somewhat muted in certain sectors as foundries responded to
semiconductor shortages, limiting new design activity. The outlook
for mask demand in 2021 is positive as additional capacity is
brought on line by our customers. Our financial position remains
strong and we anticipate completing the next phase of our FPD
investment in the second half of fiscal 2021. We expect to grow
2021 revenue by high single-digit percent with an increase in
operating profit similar to the 23% increase achieved in 2020.”
Second Quarter 2021
Guidance
For the second quarter of 2021, Photronics
expects revenue to be between $153 million and $162 million, and
net income attributable to Photronics, Inc. shareholders to be
between $0.14 and $0.20 per diluted share.
Conference Call
A conference call to discuss these results is
scheduled for 8:30 a.m. Eastern time on Wednesday, February 24,
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.
For Further Information:R. Troy
Dewar, CFAVice President, Investor Relations(203)
740-5610tdewar@photronics.com
PHOTRONICS, INC. |
Condensed Consolidated Statements of Income |
(in thousands, except per share amounts) |
(Unaudited) |
|
|
|
Three Months Ended |
|
January 31, |
|
October 31, |
|
February 2, |
|
2021 |
|
2020 |
|
2020 |
|
|
|
|
|
|
Revenue |
$ |
152,067 |
|
|
$ |
149,286 |
|
|
$ |
159,736 |
|
|
|
|
|
|
|
Cost of goods sold |
|
121,538 |
|
|
|
117,401 |
|
|
|
125,134 |
|
|
|
|
|
|
|
Gross profit |
|
30,529 |
|
|
|
31,885 |
|
|
|
34,602 |
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
14,053 |
|
|
|
12,790 |
|
|
|
14,219 |
|
|
|
|
|
|
|
Research and development |
|
4,710 |
|
|
|
4,110 |
|
|
|
4,080 |
|
|
|
|
|
|
|
Total Operating Expenses |
|
18,763 |
|
|
|
16,900 |
|
|
|
18,299 |
|
|
|
|
|
|
|
Operating income |
|
11,766 |
|
|
|
14,985 |
|
|
|
16,303 |
|
|
|
|
|
|
|
Other income (expense),
net |
|
680 |
|
|
|
(2,937 |
) |
|
|
3,697 |
|
|
|
|
|
|
|
Income before income tax provision |
|
12,446 |
|
|
|
12,048 |
|
|
|
20,000 |
|
|
|
|
|
|
|
Income tax provision |
|
2,937 |
|
|
|
3,469 |
|
|
|
9,072 |
|
|
|
|
|
|
|
Net income |
|
9,509 |
|
|
|
8,579 |
|
|
|
10,928 |
|
|
|
|
|
|
|
Net income attributable to
noncontrolling interests |
|
1,473 |
|
|
|
2,119 |
|
|
|
628 |
|
|
|
|
|
|
|
Net income attributable to
Photronics, Inc. shareholders |
$ |
8,036 |
|
|
$ |
6,460 |
|
|
$ |
10,300 |
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.13 |
|
|
$ |
0.10 |
|
|
$ |
0.16 |
|
|
|
|
|
|
|
Diluted |
$ |
0.13 |
|
|
$ |
0.10 |
|
|
$ |
0.16 |
|
|
|
|
|
|
|
Weighted-average number of
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
62,475 |
|
|
|
64,193 |
|
|
|
65,554 |
|
|
|
|
|
|
|
Diluted |
|
63,005 |
|
|
|
64,768 |
|
|
|
66,449 |
|
PHOTRONICS, INC. |
Condensed Consolidated Balance Sheets |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
January 31, |
|
October 31, |
|
2021 |
|
2020 |
|
|
|
|
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
278,539 |
|
|
$ |
278,665 |
|
Accounts receivable |
|
139,708 |
|
|
|
134,470 |
|
Inventories |
|
56,407 |
|
|
|
57,269 |
|
Other current assets |
|
31,458 |
|
|
|
29,735 |
|
|
|
|
|
Total current assets |
|
506,112 |
|
|
|
500,139 |
|
|
|
|
|
Property, plant and equipment,
net |
|
672,398 |
|
|
|
631,475 |
|
Intangible assets, net |
|
2,383 |
|
|
|
3,437 |
|
Other assets |
|
51,169 |
|
|
|
53,131 |
|
|
|
|
|
Total assets |
$ |
1,232,062 |
|
|
$ |
1,188,182 |
|
Liabilities and Equity |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
Debt |
$ |
21,641 |
|
|
$ |
13,678 |
|
Accounts payable and accrued liabilities |
|
123,890 |
|
|
|
129,261 |
|
|
|
|
|
Total current liabilities |
|
145,531 |
|
|
|
142,939 |
|
|
|
|
|
Long-term
debt |
|
79,984 |
|
|
|
54,980 |
|
Other
liabilities |
|
28,051 |
|
|
|
27,997 |
|
|
|
|
|
Photronics,
Inc. shareholders' equity |
|
815,502 |
|
|
|
804,962 |
|
Noncontrolling interests |
|
162,994 |
|
|
|
157,304 |
|
Total equity |
|
978,496 |
|
|
|
962,266 |
|
|
|
|
|
Total
liabilities and equity |
$ |
1,232,062 |
|
|
$ |
1,188,182 |
|
|
|
|
|
PHOTRONICS, INC. |
Condensed Consolidated Statements of Cash
Flows |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
January 31, |
|
February 2, |
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
Cash flows from operating
activities: |
|
|
|
Net income |
$ |
9,509 |
|
|
$ |
10,928 |
|
Adjustments to reconcile net income to net cash |
|
|
|
provided by operating activities: |
|
|
|
Depreciation and amortization |
|
23,724 |
|
|
|
24,626 |
|
Share-based compensation |
|
1,301 |
|
|
|
1,356 |
|
Changes in operating assets, liabilities and other |
|
(8,247 |
) |
|
|
(6,125 |
) |
|
|
|
|
Net cash provided by operating
activities |
|
26,287 |
|
|
|
30,785 |
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
Purchases of property, plant and equipment |
|
(17,532 |
) |
|
|
(13,807 |
) |
Government incentives |
|
397 |
|
|
|
2,417 |
|
Other |
|
(61 |
) |
|
|
(139 |
) |
|
|
|
|
Net cash used in investing
activities |
|
(17,196 |
) |
|
|
(11,529 |
) |
|
|
|
|
Cash flows from financing
activities: |
|
|
|
Proceeds from long-term debt |
|
6,205 |
|
|
|
1,140 |
|
Purchase of treasury stock |
|
(13,209 |
) |
|
|
(11,000 |
) |
Repayments of debt |
|
(7,796 |
) |
|
|
(389 |
) |
Proceeds from share-based arrangements |
|
765 |
|
|
|
2,886 |
|
Other |
|
(315 |
) |
|
|
(248 |
) |
|
|
|
|
Net cash used in financing
activities |
|
(14,350 |
) |
|
|
(7,611 |
) |
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents, and restricted cash |
|
5,195 |
|
|
|
149 |
|
|
|
|
|
Net (decrease) increase in
cash, cash equivalents, and restricted cash |
|
(64 |
) |
|
|
11,794 |
|
Cash, cash equivalents, and
restricted cash, beginning of period |
|
281,602 |
|
|
|
209,291 |
|
|
|
|
|
Cash, cash equivalents, and
restricted cash, end of period |
$ |
281,538 |
|
|
$ |
221,085 |
|
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