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Photronics Reports Full Year and Fourth Quarter Fiscal 2021 Results

BROOKFIELD, Conn., Dec. 08, 2021 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its full year and fourth quarter fiscal 2021 ended October 31, 2021.

“Photronics achieved a fourth consecutive year of record revenue, as demand for our design-driven products accelerated and we fully ramped new flat panel display capacity,” said Peter Kirlin, chief executive officer. “We made strategic investments in 2021 that have positioned us to achieve organic growth as market trends such as the increase in demand from Asia foundries and the adoption of advanced display technologies in mobile applications have driven the market higher.”

Full Year 2021 Results

  • Revenue of $663.8 million was a record for the fourth consecutive year, up 9% compared with 2020
  • Net income attributable to Photronics, Inc. shareholders was $55.4 million, or $0.89 per diluted share
  • Cash provided by operating activities was $150.8 million, capex was $103.5 million, share repurchases were $48.3 million, and ending cash balance was $276.7 million

Fourth Quarter 2021 Results

  • Revenue was $181.3 million, the third consecutive quarterly record, up 6% sequentially and 21% year-over-year
  • Net income attributable to Photronics, Inc. shareholders was $19.8 million ($0.33 per diluted share), compared with $17.1 million ($0.28 per diluted share) for the third quarter of 2021 and $6.5 million ($0.10 per diluted share) for the fourth quarter of 2020

Full year integrated circuit (IC) revenue was $460.2 million, up 10% compared with last year; flat panel display (FPD) revenue was $203.6 million, 6% over the same quarter last year.

IC revenue in the fourth quarter was $125.4 million, up 7% sequentially and 18% compared with the fourth quarter of last year; FPD revenue was $55.8 million, up 6% over last quarter and 29% over the same period last year.

“Past investments in targeted technologies are paying off, as margin expansion is accompanying top-line growth,” added Kirlin. “We are generating gross and operating margins already at the high-end of the three-year target model we presented last year, and our strong cash flow enables us to invest in the business while we also return cash to shareholders as part of our disciplined capital allocation. With strong end market demand, solid balance sheet, broad geographic presence, and a team with a proven track record, we are excited about our future and optimistic we can deliver on our long-term target model objectives.”

First Quarter 2022 Guidance

For the first quarter of 2022, Photronics expects revenue to be between $178 million and $186 million, and net income attributable to Photronics, Inc. shareholders to be between $0.27 and $0.34 per diluted share.

Conference Call

A conference call to discuss these results is scheduled for 8:30 a.m. Eastern time on Wednesday, December 8, 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, 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” 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.



PHOTRONICS, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
     
  Three Months Ended Year Ended
  October 31, August 1, October 31, October 31, October 31,
   2021   2021   2020   2021   2020 
           
Revenue $181,288  $170,643  $149,286  $663,761  $609,691 
           
Cost of goods sold  129,347   125,318   117,401   496,717   475,037 
           
Gross Profit  51,941   45,325   31,885   167,044   134,654 
           
Operating Expenses:          
           
Selling, general and administrative 14,322   15,083   12,790   57,525   53,582 
           
Research and development  4,100   5,305   4,110   18,490   17,144 
           
Total Operating Expenses  18,422   20,388   16,900   76,015   70,726 
           
Other operating income, net  -   3,525   -   3,525   - 
           
Operating Income  33,519   28,462   14,985   94,554   63,928 
           
Non-operating income (expense), net 3,809   3,735   (2,937)  7,452   (2,327)
           
Income Before Income Tax Provision 37,328   32,197   12,048   102,006   61,601 
           
Income tax provision  8,697   7,842   3,469   23,190   21,258 
           
Net Income  28,631   24,355   8,579   78,816   40,343 
           
Net income attributable to noncontrolling interests 8,820   7,279   2,119   23,367   6,523 
           
Net income attributable to Photronics, Inc. shareholders$19,811  $17,076  $6,460  $55,449  $33,820 
           
Earnings per share:          
           
Basic $0.33  $0.28  $0.10  $0.90  $0.52 
           
Diluted $0.33  $0.28  $0.10  $0.89  $0.52 
           
Weighted-average number of common shares outstanding:         
           
Basic  60,216   60,884   64,193   61,407   64,866 
           
Diluted  60,908   61,515   64,768   61,999   65,470 
           


 
PHOTRONICS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
     
  October 31, October 31,
   2021   2020 
     
Assets    
     
Current assets:    
Cash and cash equivalents $276,670  $278,665 
Accounts receivable  174,447   134,470 
Inventories  55,249   57,269 
Other current assets  44,250   29,735 
     
Total current assets  550,616   500,139 
     
Property, plant and equipment, net 696,553   631,475 
Intangible assets, net  774   3,437 
Other assets  46,259   53,131 
     
Total assets $1,294,202  $1,188,182 
     
     
     
Liabilities and Equity    
     
Current liabilities:    
Debt $22,248  $13,678 
Accounts payable and accrued liabilities 153,900   129,261 
     
Total current liabilities  176,148   142,939 
     
Long-term debt  89,446   54,980 
Other liabilities  28,046   27,997 
     
Photronics, Inc. shareholders' equity 823,692   804,962 
Noncontrolling interests  176,870   157,304 
Total equity  1,000,562   962,266 
     
Total liabilities and equity $1,294,202  $1,188,182 
     


 
PHOTRONICS, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
     
  Year Ended
  October 31, October 31,
   2021   2020 
     
Cash flows from operating activities:    
Net income $78,816  $40,343 
Adjustments to reconcile net income to net cash   
provided by operating activities:    
Depreciation and amortization  90,396   93,814 
Share-based compensation  5,348   4,927 
Changes in operating assets, liabilities and other (23,788)  3,962 
     
Net cash provided by operating activities  150,772   143,046 
     
Cash flows from investing activities:    
Purchases of property, plant and equipment (109,099)  (70,815)
Government incentives  5,775   5,263 
Purchases of intangible assets  (170)  (159)
     
Net cash used in investing activities  (103,494)  (65,711)
     
Cash flows from financing activities:    
Proceeds from long-term debt  20,858   20,340 
Purchases of treasury stock  (48,250)  (34,394)
Repayments of debt  (20,352)  (7,392)
Dividends paid to noncontrolling interests (9,597)  (16,151)
Proceeds from share-based arrangements 3,874   4,239 
Contribution from noncontrolling interest -   17,596 
Net settlements of restricted stock awards (436)  (248)
     
Net cash used in financing activities  (53,903)  (16,010)
     
Effect of exchange rate changes on cash, cash equivalents, and restricted cash 4,703   10,986 
     
Net (decrease) increase in cash, cash equivalents, and restricted cash (1,922)  72,311 
Cash, cash equivalents, and restricted cash, beginning of period 281,602   209,291 
     
Cash, cash equivalents, and restricted cash, end of period$279,680  $281,602 
     

For Further Information:
John P. Jordan
Executive Vice President & CFO
203.740.5671
[email protected]


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