BROOKFIELD, Conn., Dec. 13, 2022 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its fiscal 2022 full year and fourth quarter ended October 31, 2022.
"We posted a solid finish to a great year, achieving record revenue for the fifth consecutive year as demand for our design-driven products remained strong and our entire team performed well," said Frank Lee, chief executive officer. "In the quarter, IC was soft, primarily due to lower high-end logic demand from foundries in Asia. High-end FPD also declined as panel makers of premium smart phones are focused on producing new products and have temporarily slowed design activity. Profit margins were flat sequentially as positive pricing and cost management offset the impact from lower volumes. We generated strong cash from operations, allowing us to invest in organic growth and reduce debt, strengthening our balance sheet and positioning us to support our growth strategy as well as helping us to navigate economic uncertainty. The global Photronics team performed well in 2022, and we believe we will continue to achieve our goals in 2023 and beyond."
Full Year 2022 Results
- Revenue of $824.5 million was up 24% over the previous year and was the fifth consecutive year of record revenue
- Net income attributable to Photronics, Inc. shareholders was $118.8 million ($1.94 per diluted share), compared with $55.4 million ($0.89 per diluted share) in 2021
- Integrated circuit (IC) revenue was $593.0 million, up 29%
- Flat panel display (FPD) revenue was $231.5 million, up 14%
- Cash and short-term investments increased to $359 million, with $275 million generated from operating activities and $112 million invested in growth through capital expenditures
Fourth Quarter 2022 Results
- Revenue was $210.3 million, down 4% sequentially and up 16% compared with the same period of last year
- Net income attributable to Photronics, Inc. shareholders was $37.1 million ($0.60 per diluted share), compared with $31.2 million ($0.51 per diluted share) in the third quarter of 2022 and $19.8 million ($0.33 per diluted share) in the fourth quarter 2021
- IC revenue was $156.2 million, down 3% sequentially and up 25% compared with the same period of last year
- FPD revenue was $54.1 million, down 8% sequentially and down 3% compared with the same period of last year
- Cash generated from operating activities was $79 million and cash invested in growth through capital expenditures was $66 million
First Quarter 2023 Guidance
For the first quarter of 2023, Photronics expects revenue to be between $203 million and $213 million and net income attributable to Photronics, Inc. shareholders to be between $0.40 and $0.48 per diluted share.
Webcast
A webcast to discuss these results is scheduled for 8:30 a.m. Eastern time on Tuesday, December 13, 2022. The webcast will be broadcast live and on-demand on the Events and Presentations link on the Photronics website or click here. The webcast 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, 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.
PHOTRONICS, INC. | |||||||||||||||||||
| Condensed Consolidated Statements of Income | |||||||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||
| October 31, | July 31, | October 31, | October 31, | October 31, | |||||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| Revenue | $ | 210,266 | $ | 219,948 | $ | 181,288 | $ | 824,549 | $ | 663,761 | |||||||||
| Cost of goods sold | 129,997 | 136,085 | 129,347 | 530,336 | 496,717 | ||||||||||||||
| Gross Profit | 80,269 | 83,863 | 51,941 | 294,213 | 167,044 | ||||||||||||||
| Operating Expenses: | |||||||||||||||||||
| Selling, general and administrative | 15,683 | 15,960 | 14,322 | 63,989 | 57,525 | ||||||||||||||
| Research and development | 4,045 | 4,151 | 4,100 | 18,341 | 18,490 | ||||||||||||||
| Total Operating Expenses | 19,728 | 20,111 | 18,422 | 82,330 | 76,015 | ||||||||||||||
| Other operating (loss) income, net | - | (23 | ) | - | (17 | ) | 3,525 | ||||||||||||
| Operating Income | 60,541 | 63,729 | 33,519 | 211,866 | 94,554 | ||||||||||||||
| Non-operating income, net | 10,797 | 3,641 | 3,809 | 27,167 | 7,452 | ||||||||||||||
| Income Before Income Tax Provision | 71,338 | 67,370 | 37,328 | 239,033 | 102,006 | ||||||||||||||
| Income tax provision | 16,074 | 18,146 | 8,697 | 59,791 | 23,190 | ||||||||||||||
| Net Income | 55,264 | 49,224 | 28,631 | 179,242 | 78,816 | ||||||||||||||
| Net income attributable to noncontrolling interests | 18,204 | 17,994 | 8,820 | 60,456 | 23,367 | ||||||||||||||
| Net income attributable to Photronics, Inc. shareholders | $ | 37,060 | $ | 31,230 | $ | 19,811 | $ | 118,786 | $ | 55,449 | |||||||||
| Earnings per share: | |||||||||||||||||||
| Basic | $ | 0.61 | $ | 0.51 | $ | 0.33 | $ | 1.96 | $ | 0.90 | |||||||||
| Diluted | $ | 0.60 | $ | 0.51 | $ | 0.33 | $ | 1.94 | $ | 0.89 | |||||||||
| Weighted-average number of common shares outstanding: | |||||||||||||||||||
| Basic | 60,773 | 60,701 | 60,216 | 60,559 | 61,407 | ||||||||||||||
| Diluted | 61,374 | 61,299 | 60,908 | 61,189 | 61,999 | ||||||||||||||
| PHOTRONICS, INC. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands) | ||||||||
| (Unaudited) | ||||||||
| October 31, | October 31, | |||||||
| 2022 | 2021 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 319,680 | $ | 276,670 | ||||
| Short-term investments | 38,820 | - | ||||||
| Accounts receivable | 198,147 | 174,447 | ||||||
| Inventories | 50,753 | 55,249 | ||||||
| Other current assets | 37,252 | 44,250 | ||||||
| Total current assets | 644,652 | 550,616 | ||||||
| Property, plant and equipment, net | 643,873 | 696,553 | ||||||
| Other assets | 27,305 | 47,033 | ||||||
| Total assets | $ | 1,315,830 | $ | 1,294,202 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 10,024 | $ | 22,248 | ||||
| Accounts payable and accrued liabilities | 183,773 | 153,900 | ||||||
| Total current liabilities | 193,797 | 176,148 | ||||||
| Long-term debt | 32,310 | 89,446 | ||||||
| Other liabilities | 27,634 | 28,046 | ||||||
| Photronics, Inc. shareholders' equity | 831,527 | 823,692 | ||||||
| Noncontrolling interests | 230,562 | 176,870 | ||||||
| Total equity | 1,062,089 | 1,000,562 | ||||||
| Total liabilities and equity | $ | 1,315,830 | $ | 1,294,202 | ||||
| PHOTRONICS, INC. | |||||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||||
| (in thousands) | |||||||||||
| (Unaudited) | |||||||||||
| Year Ended | |||||||||||
| October 31, | October 31, | ||||||||||
| 2022 | 2021 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 179,242 | $ | 78,816 | |||||||
| Adjustments to reconcile net income to net cash | |||||||||||
| provided by operating activities: | |||||||||||
| Depreciation and amortization | 80,330 | 90,396 | |||||||||
| Share-based compensation | 6,308 | 5,348 | |||||||||
| Changes in operating assets, liabilities and other | 9,307 | (23,788 | ) | ||||||||
| Net cash provided by operating activities | 275,187 | 150,772 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property, plant and equipment | (112,338 | ) | (109,099 | ) | |||||||
| Purchases of available-for-sale debt securities | (38,854 | ) | - | ||||||||
| Government incentives | 3,615 | 5,775 | |||||||||
| Other | (180 | ) | (170 | ) | |||||||
| Net cash used in investing activities | (147,757 | ) | (103,494 | ) | |||||||
| Cash flows from financing activities: | |||||||||||
| Repayments of debt | (65,440 | ) | (20,352 | ) | |||||||
| Purchases of treasury stock | (2,522 | ) | (48,249 | ) | |||||||
| Contributions from noncontrolling interest | 24,995 | - | |||||||||
| Dividends paid to noncontrolling interests | - | (9,597 | ) | ||||||||
| Proceeds from share-based arrangements | 5,749 | 3,874 | |||||||||
| Proceeds from long-term debt | - | 20,858 | |||||||||
| Net settlements of restricted stock awards | (1,471 | ) | (437 | ) | |||||||
| Net cash used in financing activities | (38,689 | ) | (53,903 | ) | |||||||
| Effects of exchange rate changes on cash, cash equivalents, and restricted cash | (46,012 | ) | 4,703 | ||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 42,729 | (1,922 | ) | ||||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 279,680 | 281,602 | |||||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 322,409 | $ | 279,680 | |||||||
For Further Information:
John P. Jordan
Executive Vice President & CFO
203.740.5671
[email protected]
