Enhanced Investments - Financial Portal

Photronics Reports Third Quarter Fiscal 2022 Results

Published: 2022-08-30 10:00:00 ET

BROOKFIELD, Conn., Aug. 30, 2022 (GLOBE NEWSWIRE) -- 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

Source: Photronics, Inc.

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

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