Photronics Reports Third Quarter Fiscal 2022 Results
August 30 2022 - 6:00AM
Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask
technologies and solutions, today reported financial results for
its fiscal 2022 third quarter ended July 31, 2022.
“We achieved our sixth consecutive quarter of
record revenue due to strong end market demand, favorable pricing
dynamics, and outstanding performance by the entire organization,”
said Frank Lee, chief executive officer. “Customers continue to
place their trust in Photronics to support their technology roadmap
by supplying the high-quality photomasks required for innovative
designs that meet consumer demand. We are expanding capacity and
growing volumes while controlling costs and capitalizing on
operating leverage to deliver higher margins. We are also taking
pricing action where appropriate to capture the full value that we
are delivering to our customers. Our cash balance grew as we
generated strong cash flow from operations, positioning us for
continued investments in growth to expand our market-leading
presence. I am proud of how the global Photronics team has
responded as we look to close out another record year.”
Third Quarter 2022 Results
- Revenue was $219.9 million, up 8%
sequentially and 29% compared with the same period of last
year
- Net income attributable to
Photronics, Inc. shareholders was $31.2 million ($0.51 per diluted
share), compared with $27.4 million ($0.45 per diluted share) in
the second quarter of 2022 and $17.1 million ($0.28 per diluted
share) in the third quarter 2021
- Integrated circuit (IC) revenue was
$161.3 million, up 11% sequentially and up 37% compared with the
same period of last year
- Flat panel display (FPD) revenue
was $58.7 million, flat sequentially and up 11% compared with the
same period of last year
- Cash balance increased to $381
million with $93 million generated from operating activities and
$12 million invested in growth through capital expenditures
Fourth Quarter 2022
Guidance
For the fourth quarter of 2022, Photronics
expects revenue to be between $205 million and $215 million and net
income attributable to Photronics, Inc. shareholders to be between
$0.44 and $0.52 per diluted share.
Webcast
A webcast to discuss these results is scheduled
for 8:30 a.m. Eastern time on Tuesday, August 30, 2022. The event
can be accessed through the Investors page of Photronics' website
(www.photronics.com) or directly at
https://register.vevent.com/register/BI5f5ea35d921040438cfa995c228f1b08.
The webcast 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 |
|
Nine Months Ended |
|
|
July
31, |
|
May
1, |
|
August
1, |
|
July
31, |
|
August
1, |
|
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
219,948 |
|
|
$ |
204,509 |
|
$ |
170,643 |
|
$ |
614,283 |
|
|
$ |
482,473 |
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
136,085 |
|
|
|
134,289 |
|
|
125,318 |
|
|
400,338 |
|
|
|
367,370 |
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit |
|
|
83,863 |
|
|
|
70,220 |
|
|
45,325 |
|
|
213,945 |
|
|
|
115,103 |
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
15,960 |
|
|
|
16,613 |
|
|
15,083 |
|
|
48,306 |
|
|
|
43,203 |
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
4,151 |
|
|
|
4,206 |
|
|
5,305 |
|
|
14,297 |
|
|
|
14,390 |
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
20,111 |
|
|
|
20,819 |
|
|
20,388 |
|
|
62,603 |
|
|
|
57,593 |
|
|
|
|
|
|
|
|
|
|
|
Other operating (loss) income, net |
|
(23 |
) |
|
|
- |
|
|
3,525 |
|
|
(17 |
) |
|
|
3,525 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
63,729 |
|
|
|
49,401 |
|
|
28,462 |
|
|
151,325 |
|
|
|
61,035 |
|
|
|
|
|
|
|
|
|
|
|
Non-operating income, net |
|
|
3,641 |
|
|
|
8,021 |
|
|
3,735 |
|
|
16,370 |
|
|
|
3,643 |
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Tax Provision |
|
67,370 |
|
|
|
57,422 |
|
|
32,197 |
|
|
167,695 |
|
|
|
64,678 |
|
|
|
|
|
|
|
|
|
|
|
Income tax provision |
|
|
18,146 |
|
|
|
14,393 |
|
|
7,842 |
|
|
43,717 |
|
|
|
14,493 |
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
|
|
49,224 |
|
|
|
43,029 |
|
|
24,355 |
|
|
123,978 |
|
|
|
50,185 |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests |
|
17,994 |
|
|
|
15,597 |
|
|
7,279 |
|
|
42,252 |
|
|
|
14,547 |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Photronics, Inc. shareholders |
$ |
31,230 |
|
|
$ |
27,432 |
|
$ |
17,076 |
|
$ |
81,726 |
|
|
$ |
35,638 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.51 |
|
|
$ |
0.45 |
|
$ |
0.28 |
|
$ |
1.35 |
|
|
$ |
0.58 |
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.51 |
|
|
$ |
0.45 |
|
$ |
0.28 |
|
$ |
1.34 |
|
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
60,701 |
|
|
|
60,606 |
|
|
60,884 |
|
|
60,488 |
|
|
|
61,804 |
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
61,299 |
|
|
|
61,145 |
|
|
61,515 |
|
|
61,127 |
|
|
|
62,362 |
|
|
|
|
|
|
|
|
|
|
|
PHOTRONICS,
INC. |
|
Condensed
Consolidated Balance Sheets |
|
(in thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
July
31, |
|
October
31, |
|
|
|
2022 |
|
2021 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
380,833 |
|
$ |
276,670 |
|
Accounts receivable |
|
|
206,495 |
|
|
174,447 |
|
Inventories |
|
|
50,313 |
|
|
55,249 |
|
Other current assets |
|
|
40,414 |
|
|
44,250 |
|
|
|
|
|
|
|
Total current assets |
|
|
678,055 |
|
|
550,616 |
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
640,805 |
|
|
696,553 |
|
Other assets |
|
|
30,737 |
|
|
47,033 |
|
|
|
|
|
|
|
Total assets |
|
$ |
1,349,597 |
|
$ |
1,294,202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Current portion of long-term debt |
$ |
10,727 |
|
$ |
22,248 |
|
Accounts payable and accrued liabilities |
|
186,387 |
|
|
153,900 |
|
|
|
|
|
|
|
Total current liabilities |
|
|
197,114 |
|
|
176,148 |
|
|
|
|
|
|
|
Long-term debt |
|
|
46,589 |
|
|
89,446 |
|
Other liabilities |
|
|
25,936 |
|
|
28,046 |
|
|
|
|
|
|
|
Photronics, Inc. shareholders' equity |
|
850,318 |
|
|
823,692 |
|
Noncontrolling interests |
|
|
229,640 |
|
|
176,870 |
|
Total equity |
|
|
1,079,958 |
|
|
1,000,562 |
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
1,349,597 |
|
$ |
1,294,202 |
|
|
|
|
|
|
|
PHOTRONICS,
INC. |
Condensed
Consolidated Statements of Cash Flows |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
July
31, |
|
August
1, |
|
|
2022 |
|
2021 |
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
Net income |
|
$ |
123,978 |
|
|
$ |
50,185 |
|
Adjustments to reconcile net income
to net cash |
|
|
|
provided by operating
activities: |
|
|
|
|
Depreciation
and amortization |
|
|
61,210 |
|
|
|
69,305 |
|
Share-based
compensation |
|
|
4,623 |
|
|
|
4,034 |
|
Changes in
operating assets, liabilities and other |
|
6,110 |
|
|
|
(10,428 |
) |
|
|
|
|
|
Net cash provided by operating activities |
|
|
195,921 |
|
|
|
113,096 |
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
Purchases of property,
plant and equipment |
|
(46,337 |
) |
|
|
(92,301 |
) |
Government
incentives |
|
|
1,394 |
|
|
|
5,775 |
|
Other |
|
|
(179 |
) |
|
|
(170 |
) |
|
|
|
|
|
Net cash used in investing activities |
|
|
(45,122 |
) |
|
|
(86,696 |
) |
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
Repayments of debt |
|
|
(51,917 |
) |
|
|
(13,311 |
) |
Purchases of treasury
stock |
|
|
(2,522 |
) |
|
|
(35,750 |
) |
Contributions from
noncontrolling interest |
|
24,995 |
|
|
|
- |
|
Proceeds from share-based
arrangements |
|
5,505 |
|
|
|
2,251 |
|
Proceeds from long-term
debt |
|
|
- |
|
|
|
20,858 |
|
Net settlements of
restricted stock awards |
|
(1,463 |
) |
|
|
(403 |
) |
|
|
|
|
|
Net cash used in financing activities |
|
|
(25,402 |
) |
|
|
(26,355 |
) |
|
|
|
|
|
Effects of exchange rate changes on cash, cash equivalents, and
restricted cash |
|
(21,308 |
) |
|
|
4,602 |
|
|
|
|
|
|
Net increase in cash, cash equivalents, and restricted cash |
|
104,089 |
|
|
|
4,647 |
|
Cash, cash equivalents, and restricted cash, beginning of
period |
|
279,680 |
|
|
|
281,602 |
|
|
|
|
|
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
383,769 |
|
|
$ |
286,249 |
|
|
|
|
|
|
|
|
|
|
|
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