Photronics Reports First Quarter Fiscal 2022 Results and Updates Long-Term Target Model

BROOKFIELD, Conn., Feb. 23, 2022 (GLOBE NEWSWIRE) -- 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. Jordan
Executive Vice President & CFO
203.740.5671
jjordan@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