• Photronics Reports Full Year and Fourth Quarter Fiscal 2023 Results

    المصدر: Nasdaq GlobeNewswire / 13 ديسمبر 2023 05:30:00   America/Chicago

    BROOKFIELD, Conn., Dec. 13, 2023 (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 of fiscal year 2023 ended October 31, 2023.

    “We delivered our sixth consecutive year of record revenue with growth in fourth quarter amidst a prolonged industry downturn,” said Frank Lee, chief executive officer. “Fourth quarter and full year revenue increased 8% year-over-year, and fourth quarter increased 1% sequentially. Both IC and FPD increased, as demand for our design-driven products remained strong. Operating expenses were lower sequentially, partially offsetting lower gross profit, resulting in operating margins of 28.5% for the fourth quarter and 28.4% for the year. Strong cash generation and our disciplined strategy of investing in growth strengthened the balance sheet while positioning us for sustained solid performance. I am proud of our team’s performance and look forward to even greater achievements as we execute our strategy in the year to come.”

    Full Year Fiscal 2023 Results

    • Revenue was $892.1 million, up 8% over the previous year – the sixth consecutive year of record revenue
    • GAAP net income attributable to Photronics, Inc. shareholders was $125.5 million, or $2.03 per diluted share, compared with $118.8 million, or $1.94 per diluted share in 2022
    • Non-GAAP net income attributable to Photronics, Inc. shareholders was $126.0 million, or $2.04 per diluted share, compared with $101.7 million, or $1.66 per diluted share in 2022
    • IC revenue was $651.3 million, up 10%
    • FPD revenue was $240.8 million, up 4%
    • Cash generated from operating activities was $302.2 million, and cash invested in organic growth through capital expenditures was $131.3 million

    Fourth Quarter Fiscal 2023 Results

    • Revenue was $227.5 million, up 8% year-over-year and 1% sequentially
    • GAAP net income attributable to Photronics, Inc. shareholders was $44.6 million, or $0.72 per diluted share, compared with $37.1 million, or $0.60 per diluted share in the fourth quarter 2022 and $27.0 million, or $0.44 per diluted share in the third quarter of 2023
    • Non-GAAP net income attributable to Photronics, Inc. shareholders was $37.2 million, or $0.60 per diluted share, compared with $31.2 million, or $0.51 per diluted share in the fourth quarter 2022 and $31.6 million, or $0.51 per diluted share in the third quarter of 2023
    • IC revenue was $164.5 million, up 5% year-over-year and 1% sequentially
    • FPD revenue was a record at $63.0 million, up 17% from the same quarter last year and 3% sequentially
    • Cash generated from operating activities was $106.6 million, and cash invested in organic growth through capital expenditures was $52.5 million
    • Cash balance at the end of the quarter was $499.3 million, with $12.9 million in short-term investments and $24.6 million in debt

    First Quarter Fiscal 2024 Guidance

    For the first quarter of fiscal 2024, Photronics expects revenue to be between $217 million and $225 million and non-GAAP net income attributable to Photronics, Inc. shareholders to be between $0.45 and $0.53 per diluted share.

    Webcast

    A webcast to discuss these results is scheduled for 8:30 a.m. Eastern time on Wednesday, December 13, 2023. The call will be broadcast live and on-demand on the Events and Presentations link on the Photronics website. Analysts and investors who wish to participate in the Q&A portion of the call should click here. It is suggested that participants register fifteen minutes prior to the call's scheduled start time.

    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, 2022, the company had 1,828 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.

    Non-GAAP Financial Measures

    Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP earnings per share, Free Cash Flow, and Net Cash are "non-GAAP financial measures" as such term is defined by the Securities and Exchange Commission and may differ from similarly named non-GAAP financial measures used by other companies. The attached financial supplement reconciles Photronics, Inc. financial results under GAAP to non-GAAP financial information. We believe these non-GAAP financial measures that exclude certain items are useful for analysts and investors to evaluate our future on-going performance because they enable a more meaningful comparison of our projected performance with our historical results. These non-GAAP metrics are not intended to represent funds available for our discretionary use and are not intended to represent, or be used as a substitute for, gross profit, operating income, net income, cash and cash equivalents, or cash flows from operations, as measured under GAAP. The items excluded from these non-GAAP metrics, but included in the calculation of their closest GAAP equivalent, are significant components of the condensed consolidated balance sheets and statement of cash flows and must be considered in performing a comprehensive assessment of overall financial performance. Please refer to the non-GAAP reconciliations on the following pages.

    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 Year Ended
      October 31, July 30, October 31, October 31, October 31,
       2023   2023   2022   2023   2022 
               
    Revenue $227,473  $224,206  $210,266  $892,076  $824,549 
               
    Cost of goods sold  142,591   137,405   129,997   555,914   530,336 
               
    Gross Profit  84,882   86,801   80,269   336,162   294,213 
               
    Operating Expenses:          
               
    Selling, general and administrative 16,731   18,032   15,683   69,458   63,989 
               
    Research and development  3,367   3,505   4,045   13,654   18,341 
               
    Total Operating Expenses  20,098   21,537   19,728   83,112   82,330 
               
    Other operating loss  -   -   -   -   (17)
               
    Operating Income  64,784   65,264   60,541   253,050   211,866 
               
    Non-operating (loss) income, net 18,660   (911)  10,797   16,896   27,167 
               
    Income Before Income Tax Provision 83,444   64,353   71,338   269,946   239,033 
               
    Income tax provision  20,288   16,098   16,074   70,312   59,791 
               
    Net Income  63,156   48,255   55,264   199,634   179,242 
               
    Net income attributable to noncontrolling interests 18,545   21,296   18,204   74,149   60,456 
               
    Net income attributable to Photronics, Inc. shareholders $44,611  $26,959  $37,060  $125,485  $118,786 
               
    Earnings per share:          
               
    Basic $0.73  $0.44  $0.61  $2.05  $1.96 
               
    Diluted $0.72  $0.44  $0.60  $2.03  $1.94 
               
    Weighted-average number of common shares outstanding:        
               
    Basic  61,290   61,233   60,773   61,139   60,559 
               
    Diluted  62,067   61,974   61,374   61,755   61,189 
               



    PHOTRONICS, INC.
    Condensed Consolidated Balance Sheets
    (in thousands)
    (Unaudited)
     
      October 31, October 31,
       2023   2022 
         
    Assets    
         
    Current assets:    
    Cash and cash equivalents $499,292  $319,680 
    Short-term investments  12,915   38,820 
    Accounts receivable  194,927   198,147 
    Inventories  49,963   50,753 
    Other current assets  28,353   37,252 
         
    Total current assets  785,450   644,652 
         
    Property, plant and equipment, net 709,244   643,873 
    Other assets  31,527   27,305 
         
    Total assets $1,526,221  $1,315,830 
         
         
    Liabilities and Equity    
         
    Current liabilities:    
    Current portion of long-term debt$6,621  $10,024 
    Accounts payable and accrued liabilities 178,602   183,773 
         
    Total current liabilities  185,223   193,797 
         
    Long-term debt  17,998   32,310 
    Other liabilities  47,391   27,634 
         
    Photronics, Inc. shareholders' equity 975,008   831,527 
    Noncontrolling interests  300,601   230,562 
    Total equity  1,275,609   1,062,089 
         
    Total liabilities and equity $1,526,221  $1,315,830 
         



    PHOTRONICS, INC.
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
    (Unaudited)
         
      Year Ended
      October 31, October 31,
       2023   2022 
         
    Cash flows from operating activities:    
    Net income $199,634  $179,242 
    Adjustments to reconcile net income to net cash   
    provided by operating activities:    
    Depreciation and amortization  80,835   80,330 
    Share-based compensation  8,001   6,308 
    Changes in operating assets, liabilities and other 13,706   9,307 
         
    Net cash provided by operating activities  302,176   275,187 
         
    Cash flows from investing activities:    
    Purchases of property, plant and equipment (131,295)  (112,338)
    Purchases of available-for-sale debt securities (20,192)  (38,854)
    Proceeds from maturity of available-for-sale debt securities 47,537   - 
    Government incentives  2,522   3,615 
    Other  (117)  (180)
         
    Net cash used in investing activities  (101,545)  (147,757)
         
    Cash flows from financing activities:    
    Repayments of debt  (18,439)  (65,440)
    Purchases of treasury stock  -   (2,522)
    Contributions from noncontrolling interest -   24,995 
    Proceeds from share-based arrangements 1,248   5,749 
    Net settlements of restricted stock awards (1,302)  (1,471)
         
    Net cash used in financing activities  (18,493)  (38,689)
         
    Effects of exchange rate changes on cash, cash equivalents, and restricted cash (2,680)  (46,012)
         
    Net increase in cash, cash equivalents, and restricted cash 179,458   42,729 
    Cash, cash equivalents, and restricted cash, beginning of period 322,409   279,680 
         
    Cash, cash equivalents, and restricted cash, end of period$501,867  $322,409 
         



    PHOTRONICS, INC.
    Reconciliation of GAAP to Non-GAAP Financial Information
    (in thousands)
    (Unaudited)
              
     Three Months ended Year ended
     October 31, July 30, October 31, October 31, October 31,
      2023   2023   2022   2023   2022 
    Reconciliation of GAAP to Non-GAAP Non-operating (loss) Income:           
              
    GAAP Non-operating (loss) income, net$18,660  $(911) $10,797  $16,896  $27,167 
    FX (gain) loss (13,234)  4,543   (10,369)  (2,466)  (27,344)
    Non-GAAP Non-operating (loss) income, net$5,426  $3,632  $428  $14,430  $(177)
              
    Reconciliation of GAAP to Non-GAAP Income tax provision:         
              
    GAAP Income tax provision$20,288  $16,098 $-$16,074  $70,312  $59,791 
    Estimated tax effects of FX (gain) loss 3,437   (1,193) - 2,522   317   5,933 
    Non-GAAP Income tax provision$16,851  $17,291  $13,552  $69,995  $53,858 
              
    Reconciliation of GAAP to Non-GAAP Noncontrolling interests:         
              
    GAAP Noncontrolling interests$18,545  $21,296  $18,204  $74,149  $60,456 
    Estimated noncontrolling interest effects of above 2,431   1,328   1,990   2,676   4,275 
              
    Non-GAAP Noncontrolling interests$16,114  $19,968  $16,214  $71,473  $56,181 
              
    Reconciliation of GAAP to Non-GAAP Net Income:         
              
    GAAP Net Income$44,611  $26,959  $37,060  $125,485  $118,786 
    FX (gain) loss (13,234)  4,543   (10,369)  (2,466)  (27,344)
    Estimated tax effects of above 3,437   (1,193)  2,522   317   5,933 
    Estimated noncontrolling interest effects of above 2,431   1,328   1,990   2,676   4,275 
    Non-GAAP Net Income$37,245  $31,637  $31,203  $126,012  $101,650 
              
    Weighted-average number of common shares outstanding - Diluted 62,067   61,974   61,374   61,755   61,189 
              
    Reconciliation of GAAP to Non-GAAP EPS:         
              
    GAAP diluted earnings per share$0.72  $0.44  $0.60  $2.03  $1.94 
    Effects of the above adjustments$(0.12) $0.07  $(0.09) $0.01  $(0.28)
    Non-GAAP diluted earnings per share$0.60  $0.51  $0.51  $2.04  $1.66 
              



    PHOTRONICS, INC.
    Reconciliation of GAAP to Non-GAAP Financial Information (cont.)
    (in thousands)
    (Unaudited)
        
    Reconciliation of Net cash provided by operating activities to Free Cash Flow   
     Year ended  
     October 31,  
      2023   
        
        
    GAAP Net cash provided by operating activities$302,176   
        
    Purchases of property, plant and equipment (131,295)  
        
    Free Cash Flow$170,881   
        
        
    Reconciliation of Cash and cash equivalents to Net Cash:   
     As of
     October 31, October 31,
      2023   2022 
        
    Cash and cash equivalents$499,292  $319,680 
        
    Current portion of Long-term debt (6,621)  (10,024)
        
    Long-term Debt (17,998)  (32,310)
        
    Net Cash$474,673  $277,346 
        

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