Photronics Reports First Quarter Fiscal 2022 Results and Updates Long-Term Target Model
February 23 2022 - 6:00AM
Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask
technologies and solutions, today reported financial results for
its fiscal 2022 first quarter ended January 30, 2022.
“Strong end-market demand trends have continued
into 2022, helping us achieve our fourth consecutive quarter of
record revenue,” said Peter Kirlin, chief executive officer. “Our
investment strategy is producing the intended results as
demonstrated by growth in excess of market rates. We’ve aligned our
operations and technology to serve the strongest sectors of the
market, such as AMOLED for mobile displays, high-end logic devices
for advanced electronics and mainstream IC to support the
proliferation of chips needed for the enablement of the internet of
things.”
First Quarter 2022 Results
- Revenue was $189.8 million, up 5%
sequentially and 25% year-over-year
- Net income attributable to
Photronics, Inc. shareholders was $23.1 million ($0.38 per diluted
share), compared with fourth quarter 2021 net income of $19.8
million ($0.33 per diluted share) – a 15% sequential increase in
EPS, and first quarter 2021 net income of $8.0 million ($0.13 per
diluted share) – nearly 300% year-over-year increase
- Integrated circuit (IC) revenue in
the first quarter was $129.8 million, up 3% sequentially and 24%
compared with the first quarter of last year
- Flat panel display (FPD) revenue
was $60.1 million, up 8% over last quarter and 27% over the same
period last year
“Market dynamics and Photronics’ execution have
driven profitability levels that propelled the Company well beyond
the projections in the target model we provided in December 2020,”
concluded Kirlin. “Significant indicators from the market and other
market participants are that these conditions will continue well
into the future. We have therefore included an updated target model
in the supplemental information issued in connection with our
conference call later today.”
Second Quarter 2022
Guidance
For the second quarter of 2022, Photronics
expects revenue to be between $188 million and $196 million, and
net income attributable to Photronics, Inc. shareholders to be
between $0.32 and $0.38 per diluted share.
Conference Call
A conference call to discuss these results is
scheduled for 8:30 a.m. Eastern time on Wednesday, February 23,
2022. 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,
2021, 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” 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 Securities and Exchange Commission. These documents
contain and identify important factors that could cause our actual
results to differ materially from those contained in these
forward-looking statements. These certain factors can be found at
www.photronics.com/riskfactors. Although we believe that the
expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity,
performance, or achievements. We are under no duty to update any of
the forward-looking statements after the date of this release to
conform these statements to actual results.
For Further Information:John P.
JordanExecutive Vice President &
CFO203.740.5671jjordan@photronics.com
PHOTRONICS,
INC. |
Condensed
Consolidated Statements of Income |
(in thousands,
except per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
January
30, |
|
October
31, |
|
January
31, |
|
|
|
|
|
2022 |
|
2021 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
$ |
189,827 |
|
$ |
181,288 |
|
$ |
152,067 |
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
|
129,964 |
|
|
129,347 |
|
|
121,538 |
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
|
|
59,863 |
|
|
51,941 |
|
|
30,529 |
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
15,727 |
|
|
14,322 |
|
|
14,053 |
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
5,939 |
|
|
4,100 |
|
|
4,710 |
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
21,666 |
|
|
18,422 |
|
|
18,763 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
|
38,197 |
|
|
33,519 |
|
|
11,766 |
|
|
|
|
|
|
|
|
|
|
|
Non-operating income, net |
|
|
4,707 |
|
|
3,809 |
|
|
680 |
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Tax Provision |
|
42,904 |
|
|
37,328 |
|
|
12,446 |
|
|
|
|
|
|
|
|
|
|
|
Income tax provision |
|
|
|
11,178 |
|
|
8,697 |
|
|
2,937 |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
|
|
31,726 |
|
|
28,631 |
|
|
9,509 |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests |
|
8,662 |
|
|
8,820 |
|
|
1,473 |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Photronics, Inc. shareholders |
$ |
23,064 |
|
$ |
19,811 |
|
$ |
8,036 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
$ |
0.38 |
|
$ |
0.33 |
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
$ |
0.38 |
|
$ |
0.33 |
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
60,158 |
|
|
60,216 |
|
|
62,475 |
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
60,936 |
|
|
60,908 |
|
|
63,005 |
|
|
|
|
|
|
|
|
|
|
|
PHOTRONICS,
INC. |
Condensed
Consolidated Balance Sheets |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
January
30, |
|
October
31, |
|
|
|
|
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
314,195 |
|
$ |
276,670 |
|
Accounts receivable |
|
|
170,673 |
|
|
174,447 |
|
Inventories |
|
|
|
61,971 |
|
|
55,249 |
|
Other current assets |
|
|
50,940 |
|
|
44,250 |
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
597,779 |
|
|
550,616 |
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
692,289 |
|
|
696,553 |
|
Other assets |
|
|
|
45,180 |
|
|
47,033 |
|
|
|
|
|
|
|
|
|
Total assets |
|
|
$ |
1,335,248 |
|
$ |
1,294,202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Current portion of long-term debt |
$ |
18,307 |
|
$ |
22,248 |
|
Accounts payable and accrued liabilities |
|
172,787 |
|
|
153,900 |
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
191,094 |
|
|
176,148 |
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
|
78,540 |
|
|
89,446 |
|
Other liabilities |
|
|
|
26,448 |
|
|
28,046 |
|
|
|
|
|
|
|
|
|
Photronics, Inc. shareholders' equity |
|
838,425 |
|
|
823,692 |
|
Noncontrolling interests |
|
|
200,741 |
|
|
176,870 |
|
Total equity |
|
|
|
1,039,166 |
|
|
1,000,562 |
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
1,335,248 |
|
$ |
1,294,202 |
|
|
|
|
|
|
|
|
|
PHOTRONICS,
INC. |
|
Condensed
Consolidated Statements of Cash Flows |
|
(in thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
January
30, |
|
January
31, |
|
|
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
Net income |
|
|
|
$ |
31,726 |
|
|
$ |
9,509 |
|
|
Adjustments to reconcile net income to net cash |
|
|
|
|
provided by operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
|
20,810 |
|
|
|
23,724 |
|
|
Share-based compensation |
|
|
1,457 |
|
|
|
1,301 |
|
|
Changes in operating assets, liabilities and other |
|
5,137 |
|
|
|
(8,247 |
) |
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
59,130 |
|
|
|
26,287 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
Purchases of property, plant and equipment |
|
(19,175 |
) |
|
|
(17,532 |
) |
|
Government incentives |
|
|
|
- |
|
|
|
397 |
|
|
Other |
|
|
|
|
|
(43 |
) |
|
|
(61 |
) |
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
(19,218 |
) |
|
|
(17,196 |
) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
Repayments of debt |
|
|
|
(15,192 |
) |
|
|
(7,796 |
) |
|
Purchases of treasury stock |
|
|
(2,522 |
) |
|
|
(13,209 |
) |
|
Contribution from noncontrolling interest |
|
14,997 |
|
|
|
- |
|
|
Proceeds from long-term debt |
|
|
- |
|
|
|
6,205 |
|
|
Proceeds from share-based arrangements |
|
3,840 |
|
|
|
765 |
|
|
Net settlements of restricted stock awards |
|
(1,458 |
) |
|
|
(315 |
) |
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities |
|
|
(335 |
) |
|
|
(14,350 |
) |
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents, and
restricted cash |
|
(2,057 |
) |
|
|
5,195 |
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash, cash equivalents, and restricted
cash |
|
37,520 |
|
|
|
(64 |
) |
|
Cash, cash equivalents, and restricted cash, beginning of
period |
|
279,680 |
|
|
|
281,602 |
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
317,200 |
|
|
$ |
281,538 |
|
|
|
|
|
|
|
|
|
|
|
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