December 15th, 2015

Photronics Reports Third Quarter Fiscal 2020 Results

  • Third quarter 2020 revenue was $157.9 million, up 11% sequentially and 14% year-over-year
  • Net income attributable to Photronics, Inc. shareholders was $10.8 million, or $0.17 per diluted share
  • Cash provided by operating activities was $16.9 million, resulting in a cash balance of $260.6 million
  • Fourth quarter 2020 guidance: revenue between $148 and $158 million with diluted EPS between $0.12 and $0.19

BROOKFIELD, Conn., Aug. 27, 2020 (GLOBE NEWSWIRE) --  Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its fiscal 2020 third quarter ended August 2, 2020.

Third quarter revenue was $157.9 million, 11% better than the previous quarter and 14% better than the same quarter last year. Integrated circuit (IC) revenue was $108.7 million, up 12% sequentially and 8% compared with the third quarter of last year. Flat panel display (FPD) revenue was $49.2 million, up 7% compared with last quarter and 30% compared with the same period last year.

Net income attributable to Photronics, Inc. shareholders was $10.8 million ($0.17 per diluted share), compared with $6.3 million ($0.10 per diluted share) for the second quarter of 2020 and $6.3 million ($0.10 per diluted share) for the third quarter of 2019.

"Customer demand improved this quarter, and we achieved double-digit revenue growth rates compared with last quarter and last year due to our diverse market position and technology leadership,” said Peter Kirlin, chief executive officer. “China demand recovered for both IC and FPD, with total revenue of product shipped to China increasing 10% compared with the previous quarter. From a market perspective, mainstream IC and high-end FPD were notable areas of strength. We were able to leverage the growth in revenues to expand profit margins, while also managing expenses, resulting in 12.6% operating margin and $0.17 earnings per diluted share. Our cash balance grew to $260.6 million, providing us with financial strength and flexibility as we look to continue our strategic growth investments. We are well placed to pursue attractive organic growth opportunities and expand our leadership position.”

Fourth Quarter 2020 Guidance

For the fourth quarter of 2020, Photronics expects revenue to be between $148 million and $158 million, and net income attributable to Photronics, Inc. shareholders to be between $0.12 and $0.19 per diluted share.

Conference Call

A conference call to discuss these results is scheduled for 8:30 a.m. Eastern time on Thursday, August 27, 2020. 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 50 years. As of October 31, 2019, the company had 1,775 employees. The company has 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 the 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, 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 Nine Months Ended
    August 2, May 3, July 28, August 2, July 28,
     2020   2020   2019   2020  2019
             
Revenue   $157,895  $142,774  $138,112  $460,405 $394,404
             
Cost of goods sold   120,161   112,341   107,542   357,636  311,721
             
Gross profit    37,734   30,433   30,570   102,769  82,683
             
Operating Expenses:           
             
Selling, general and administrative 13,306   13,267   13,124   40,792  40,186
             
Research and development  4,492   4,462   4,046   13,034  11,852
             
Total Operating Expenses  17,798   17,729   17,170   53,826  52,038
             
Operating income   19,936   12,704   13,400   48,943  30,645
             
Other (expense) income, net  (2,135)  (951)  (348)  610  4,692
             
Income before income taxes  17,801   11,753   13,052   49,553  35,337
             
Income tax provision   4,937   3,781   3,218   17,789  7,883
             
Net income    12,864   7,972   9,834   31,764  27,454
             
Net income attributable to noncontrolling interests 2,088   1,688   3,487   4,404  7,361
             
Net income attributable to Photronics, Inc. shareholders$10,776  $6,284  $6,347  $27,360 $20,093
             
Earnings per share:           
             
Basic   $0.17  $0.10  $0.10  $0.42 $0.30
                     
Diluted   $0.17  $0.10  $0.10  $0.42 $0.30
             
Weighted-average number of common shares outstanding:         
             
Basic    64,780   64,937   66,313   65,090  66,386
             
Diluted    65,247   65,417   66,570   65,704  69,919
             



PHOTRONICS, INC. 
Condensed Consolidated Balance Sheets 
(in thousands) 
(Unaudited) 
  
        
    August 2, October 31, 
     2020  2019 
        
Assets       
        
Current assets:      
Cash and cash equivalents $260,597 $206,530 
Accounts receivable  146,843  134,454 
Inventories   54,733  48,155 
Other current assets  48,468  38,388 
        
Total current assets  510,641  427,527 
        
Property, plant and equipment, net 623,247  632,441 
Intangible assets, net  4,535  7,870 
Other assets   57,419  50,827 
        
Total assets  $1,195,842 $1,118,665 
        
        
        
Liabilities and Equity     
        
Current liabilities:      
Debt   $14,683 $10,873 
Accounts payable and accrued liabilities 160,626  141,081 
        
Total current liabilities  175,309  151,954 
        
Long-term debt   38,183  41,887 
Other liabilities   25,665  13,732 
        
Photronics, Inc. shareholders' equity 790,242  769,892 
Noncontrolling interests  166,443  141,200 
Total equity   956,685  911,092 
        
Total liabilities and equity $1,195,842 $1,118,665 
        



PHOTRONICS, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
        
     Nine Months Ended
     August 2, July 28,
      2020   2019 
        
Cash flows from operating activities:    
Net income   $31,764  $27,454 
Adjustments to reconcile net income to net cash   
provided by operating activities:    
Depreciation and amortization  71,120   60,387 
Share-based compensation  3,773   2,871 
Changes in operating assets, liabilities and other (28,393)  (67,208)
        
Net cash provided by operating activities  78,264   23,504 
        
Cash flows from investing activities:    
Purchases of property, plant and equipment (36,693)  (160,149)
Government incentive   5,263   17,694 
Other     (139)  (24)
        
Net cash used in investing activities  (31,569)  (142,479)
        
Cash flows from financing activities:    
Proceeds from long-term debt  5,699   53,227 
Contribution from noncontrolling interest 17,596   29,394 
Purchase of treasury stock  (16,894)  (10,696)
Repayments of debt   (5,929)  (61,319)
Proceeds from share-based arrangements 3,869   1,314 
Dividends paid to noncontrolling interests -   (26,102)
Other     (248)  (92)
        
Net cash provided by (used in) financing activities 4,093   (14,274)
        
Effect of exchange rate changes on cash, cash equivalents, and restricted cash 3,486   1,206 
        
Net increase (decrease) in cash, cash equivalents, and restricted cash 54,274   (132,043)
Cash, cash equivalents, and restricted cash, beginning of period 209,291   331,989 
        
Cash, cash equivalents, and restricted cash, end of period$263,565  $199,946 
        

For Further Information:
R. Troy Dewar, CFA
Vice President, Investor Relations
(203) 740-5610
tdewar@photronics.com 

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