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Photronics Reports Second Quarter Fiscal 2021 Results
Source: Nasdaq GlobeNewswire / 26 May 2021 05:00:00 America/Chicago
- Revenue was a record $159.8 million, up 5% sequentially and 12% year-over-year
- Net income attributable to Photronics, Inc. shareholders was $10.5 million, or $0.17 per diluted share
- Cash provided by operating activities was $31.9 million, capex was $56.0 million, share repurchases were $10.0 million, and ending cash balance was $256.0 million
- Third quarter 2021 guidance: revenue between $162 and $172 million with diluted EPS between $0.19 and $0.25
BROOKFIELD, Conn., May 26, 2021 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its fiscal 2021 second quarter ended May 2, 2021.
Second quarter revenue was $159.8 million, up 5% compared with the previous quarter and 12% compared with the same quarter last year. Integrated circuit (IC) revenue was $112.0 million, up 7% sequentially and 16% compared with the second quarter of last year. Flat panel display (FPD) revenue was $47.8 million, up 1% compared with last quarter and 4% compared with the same period last year.
Net income attributable to Photronics, Inc. shareholders was $10.5 million, or $0.17 per diluted share, compared with $8.0 million, or $0.13 per diluted share, for the first quarter of 2021 and $6.3 million, or $0.10 per diluted share, for the second quarter of 2020.
"We achieved record revenue in the quarter, with growth in both IC and FPD, demonstrating the strength and resiliency of our design-driven demand model, supported by world-class capabilities and unmatched global presence,” said Peter Kirlin, chief executive officer. “Our customers are responding to growing demand for their products, as they innovate to meet more advanced specifications. This creates an environment with strong design activity, driving mask demand across our business. As the largest merchant photomask manufacturer, we are well positioned to benefit from these trends. This ongoing market strength gives us confidence in meeting our long-term financial objectives as well as support for continued investment to expand capacity in our operations. Gross and operating margins expanded to 24.6% and 13.0%, respectively; and we are solidly executing our 2021 plan to outperform our market and increase operating profit by 23%.”
Third Quarter 2021 Guidance
For the third quarter of 2021, Photronics expects revenue to be between $162 million and $172 million, and net income attributable to Photronics, Inc. shareholders to be between $0.19 and $0.25 per diluted share.
Conference Call
A conference call to discuss these results is scheduled for 8:30 a.m. Eastern time on Wednesday, May 26, 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, 2020, 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 Six Months Ended May 2, January 31, May 3, May 2, May 3, 2021 2021 2020 2021 2020 Revenue $ 159,763 $ 152,067 $ 142,774 $ 311,830 $ 302,510 Cost of goods sold 120,514 121,538 112,341 242,052 237,475 Gross profit 39,249 30,529 30,433 69,778 65,035 Operating Expenses: Selling, general and administrative 14,067 14,053 13,267 28,120 27,486 Research and development 4,375 4,710 4,462 9,085 8,541 Total Operating Expenses 18,442 18,763 17,729 37,205 36,027 Operating income 20,807 11,766 12,704 32,573 29,008 Other income (expense), net (772 ) 680 (951 ) (92 ) 2,745 Income before income tax provision 20,035 12,446 11,753 32,481 31,753 Income tax provision 3,714 2,937 3,781 6,651 12,853 Net income 16,321 9,509 7,972 25,830 18,900 Net income attributable to noncontrolling interests 5,795 1,473 1,688 7,268 2,316 Net income attributable to Photronics, Inc. shareholders $ 10,526 $ 8,036 $ 6,284 $ 18,562 $ 16,584 Earnings per share: Basic $ 0.17 $ 0.13 $ 0.10 $ 0.30 $ 0.25 Diluted $ 0.17 $ 0.13 $ 0.10 $ 0.30 $ 0.25 Weighted-average number of common shares outstanding: Basic 62,054 62,475 64,937 62,265 65,246 Diluted 62,568 63,005 65,417 62,786 65,933 PHOTRONICS, INC. Condensed Consolidated Balance Sheets (in thousands) (Unaudited) May 2, October 31, 2021 2020 Assets Current assets: Cash and cash equivalents $ 255,965 $ 278,665 Accounts receivable 143,923 134,470 Inventories 56,384 57,269 Other current assets 39,336 29,735 Total current assets 495,608 500,139 Property, plant and equipment, net 717,426 631,475 Intangible assets, net 1,356 3,437 Other assets 51,599 53,131 Total assets $ 1,265,989 $ 1,188,182 Liabilities and Equity Current liabilities: Debt $ 25,658 $ 13,678 Accounts payable and accrued liabilities 133,629 129,261 Total current liabilities 159,287 142,939 Long-term debt 88,444 54,980 Other liabilities 27,441 27,997 Photronics, Inc. shareholders' equity 821,392 804,962 Noncontrolling interests 169,425 157,304 Total equity 990,817 962,266 Total liabilities and equity $ 1,265,989 $ 1,188,182 PHOTRONICS, INC. Condensed Consolidated Statements of Cash Flows (in thousands) (Unaudited) Six Months Ended May 2, May 3, 2021 2020 Cash flows from operating activities: Net income $ 25,830 $ 18,900 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 47,121 47,896 Share-based compensation 2,723 2,576 Changes in operating assets, liabilities and other (17,455 ) (8,049 ) Net cash provided by operating activities 58,219 61,323 Cash flows from investing activities: Purchases of property, plant and equipment (73,516 ) (30,127 ) Government incentives 5,775 5,260 Other (157 ) (139 ) Net cash used in investing activities (67,898 ) (25,006 ) Cash flows from financing activities: Proceeds from long-term debt 12,439 1,140 Contribution from noncontrolling interest - 7,600 Purchase of treasury stock (23,250 ) (16,894 ) Repayments of debt (8,636 ) (389 ) Proceeds from share-based arrangements 1,180 3,423 Other (371 ) (251 ) Net cash used in financing activities (18,638 ) (5,371 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash 5,686 475 Net (decrease) increase in cash, cash equivalents, and restricted cash (22,631 ) 31,421 Cash, cash equivalents, and restricted cash, beginning of period 281,602 209,291 Cash, cash equivalents, and restricted cash, end of period $ 258,971 $ 240,712 For Further Information:
R. Troy Dewar, CFA
Vice President, Investor Relations
(203) 740-5610