BROOKFIELD, Conn., Dec. 08, 2021 (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 fiscal 2021 ended October 31, 2021.

"Photronics achieved a fourth consecutive year of record revenue, as demand for our design-driven products accelerated and we fully ramped new flat panel display capacity," said Peter Kirlin, chief executive officer. "We made strategic investments in 2021 that have positioned us to achieve organic growth as market trends such as the increase in demand from Asia foundries and the adoption of advanced display technologies in mobile applications have driven the market higher."

Full Year 2021 Results

Revenue of $663.8 million was a record for the fourth consecutive year, up 9% compared with 2020
Net income attributable to Photronics, Inc. shareholders was $55.4 million, or $0.89 per diluted share
Cash provided by operating activities was $150.8 million, capex was $103.5 million, share repurchases were $48.3 million, and ending cash balance was $276.7 million

Fourth Quarter 2021 Results

Revenue was $181.3 million, the third consecutive quarterly record, up 6% sequentially and 21% year-over-year
Net income attributable to Photronics, Inc. shareholders was $19.8 million ($0.33 per diluted share), compared with $17.1 million ($0.28 per diluted share) for the third quarter of 2021 and $6.5 million ($0.10 per diluted share) for the fourth quarter of 2020

Full year integrated circuit (IC) revenue was $460.2 million, up 10% compared with last year; flat panel display (FPD) revenue was $203.6 million, 6% over the same quarter last year.

IC revenue in the fourth quarter was $125.4 million, up 7% sequentially and 18% compared with the fourth quarter of last year; FPD revenue was $55.8 million, up 6% over last quarter and 29% over the same period last year.

"Past investments in targeted technologies are paying off, as margin expansion is accompanying top-line growth," added Kirlin. "We are generating gross and operating margins already at the high-end of the three-year target model we presented last year, and our strong cash flow enables us to invest in the business while we also return cash to shareholders as part of our disciplined capital allocation. With strong end market demand, solid balance sheet, broad geographic presence, and a team with a proven track record, we are excited about our future and optimistic we can deliver on our long-term target model objectives."

First Quarter 2022 Guidance

For the first quarter of 2022, Photronics expects revenue to be between $178 million and $186 million, and net income attributable to Photronics, Inc. shareholders to be between $0.27 and $0.34 per diluted share.

Conference Call

A conference call to discuss these results is scheduled for 8:30 a.m. Eastern time on Wednesday, December 8, 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, 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" 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							Year Ended
	October 31,		August 1,		October 31,			October 31,		October 31,
		2021		2021		2020			2021		2020

Revenue	$	181,288	$	170,643	$	149,286		$	663,761	$	609,691

Cost of goods sold		129,347		125,318		117,401			496,717		475,037

Gross Profit		51,941		45,325		31,885			167,044		134,654

Operating Expenses:

Selling, general and administrative		14,322		15,083		12,790			57,525		53,582

Research and development		4,100		5,305		4,110			18,490		17,144

Total Operating Expenses		18,422		20,388		16,900			76,015		70,726

Other operating income, net		-		3,525		-			3,525		-

Operating Income		33,519		28,462		14,985			94,554		63,928

Non-operating income (expense), net		3,809		3,735		(2,937	)		7,452		(2,327	)

Income Before Income Tax Provision		37,328		32,197		12,048			102,006		61,601

Income tax provision		8,697		7,842		3,469			23,190		21,258

Net Income		28,631		24,355		8,579			78,816		40,343

Net income attributable to noncontrolling interests		8,820		7,279		2,119			23,367		6,523

Net income attributable to Photronics, Inc. shareholders	$	19,811	$	17,076	$	6,460		$	55,449	$	33,820

Earnings per share:

Basic	$	0.33	$	0.28	$	0.10		$	0.90	$	0.52

Diluted	$	0.33	$	0.28	$	0.10		$	0.89	$	0.52

Weighted-average number of common shares outstanding:

Basic		60,216		60,884		64,193			61,407		64,866

Diluted		60,908		61,515		64,768			61,999		65,470


PHOTRONICS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)

	October 31,		October 31,
		2021		2020

Assets

Current assets:
Cash and cash equivalents	$	276,670	$	278,665
Accounts receivable		174,447		134,470
Inventories		55,249		57,269
Other current assets		44,250		29,735

Total current assets		550,616		500,139

Property, plant and equipment, net		696,553		631,475
Intangible assets, net		774		3,437
Other assets		46,259		53,131

Total assets	$	1,294,202	$	1,188,182



Liabilities and Equity

Current liabilities:
Debt	$	22,248	$	13,678
Accounts payable and accrued liabilities		153,900		129,261

Total current liabilities		176,148		142,939

Long-term debt		89,446		54,980
Other liabilities		28,046		27,997

Photronics, Inc. shareholders' equity		823,692		804,962
Noncontrolling interests		176,870		157,304
Total equity		1,000,562		962,266

Total liabilities and equity	$	1,294,202	$	1,188,182


PHOTRONICS, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)

	Year Ended
	October 31,			October 31,
		2021			2020

Cash flows from operating activities:
Net income	$	78,816		$	40,343
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization		90,396			93,814
Share-based compensation		5,348			4,927
Changes in operating assets, liabilities and other		(23,788	)		3,962

Net cash provided by operating activities		150,772			143,046

Cash flows from investing activities:
Purchases of property, plant and equipment		(109,099	)		(70,815	)
Government incentives		5,775			5,263
Purchases of intangible assets		(170	)		(159	)

Net cash used in investing activities		(103,494	)		(65,711	)

Cash flows from financing activities:
Proceeds from long-term debt		20,858			20,340
Purchases of treasury stock		(48,250	)		(34,394	)
Repayments of debt		(20,352	)		(7,392	)
Dividends paid to noncontrolling interests		(9,597	)		(16,151	)
Proceeds from share-based arrangements		3,874			4,239
Contribution from noncontrolling interest		-			17,596
Net settlements of restricted stock awards		(436	)		(248	)

Net cash used in financing activities		(53,903	)		(16,010	)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash		4,703			10,986

Net (decrease) increase in cash, cash equivalents, and restricted cash		(1,922	)		72,311
Cash, cash equivalents, and restricted cash, beginning of period		281,602			209,291

Cash, cash equivalents, and restricted cash, end of period	$	279,680		$	281,602

For Further Information:

John P. Jordan

Executive Vice President & CFO

203.740.5671

jjordan@photronics.com

Photronics Reports Full Year and Fourth Quarter Fiscal 2021 Results