EX-99.1 2 ef20039799_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1
For Further Information:
Ted Moreau
VP, Investor Relations
469.395.8175
 

Photronics Reports Full Year and Fourth Quarter Fiscal 2024 Results

BROOKFIELD, Conn. December 11, 2024 (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 2024 ended October 31, 2024.
 
“We achieved sequential revenue growth in the fourth quarter, with increased sales in both Integrated Circuits (IC) and Flat Panel Displays (FPD),” said Frank Lee, chief executive officer. “IC growth was driven by strong high-end sales, particularly in the US, while FPD was led by mainstream demand. Photomask demand trends were favorable as we ended the year and we are cautiously optimistic that these trends will continue into 2025, driven by megatrends such as AI, supply chain regionalization, and edge computing. We believe our competitive advantages and market leadership will allow us to grow along with the photomask market growth trajectory. Combined with financial discipline to expand margins and improve cash flow, we are well positioned to continue growing profitably and creating shareholder value.”
 
Full Year Fiscal 2024 Results

 •
Revenue was $866.9 million, down 3% from the previous year.

•
GAAP net income attributable to Photronics, Inc. shareholders was $130.7 million, or $2.09 per diluted share, compared with $125.5 million, or $2.03 per diluted share in 2023.

•
Non-GAAP net income attributable to Photronics, Inc. shareholders was $127.6 million, or $2.05 per diluted share, compared with $126.0 million, or $2.04 per diluted share in 2023.

•
IC revenue was $638.1 million, down 2%.

•
FPD revenue was $228.8 million, down 5%.

•
Cash generated from operating activities was $261.4 million, and cash invested in organic growth through capital expenditures was $130.9 million.
 
Fourth Quarter Fiscal 2024 Results

 •
Revenue was $222.6 million, down 2% year-over-year and up 6% sequentially.

•
GAAP Net income attributable to Photronics, Inc. shareholders was $33.9 million, or $0.54 per diluted share, compared with $44.6 million, or $0.72 per diluted share in the fourth quarter of 2023 and $34.4 million, or $0.55 per diluted share in the third quarter of 2024.

•
Non-GAAP Net income attributable to Photronics, Inc. shareholders was $37.1 million, or $0.59 per diluted share, compared with $37.2 million, or $0.60 per diluted share in the fourth quarter of 2023 and $31.9 million, or $0.51 per diluted share in the third quarter of 2024.

•
IC revenue was $163.7 million, down 1% year-over-year and up 5% sequentially.

•
FPD revenue was $58.9 million, down 7% from the same quarter last year and up 7% sequentially.

•
Cash generated from operating activities was $68.4 million, and cash invested in organic growth through capital expenditures was $43.2 million.

•
Cash and Short-term investments at the end of the quarter were $640.7 million, and Debt was $18.0 million.

First Quarter Fiscal 2025 Guidance
 
For the first quarter of fiscal 2025, Photronics expects Revenue to be between $208 million and $216 million and non-GAAP Net income attributable to Photronics, Inc. shareholders to be between $0.43 and $0.49 per diluted share.
 
Webcast
 
A webcast to discuss these results is scheduled for 8:30 a.m. Eastern time on December 11, 2024.  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, 2024, the company had approximately 1,878 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 our Annual Report on Form 10-K for the fiscal year ended October 31, 2023 and other subsequent filings 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. 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 diluted earnings per share are “non-GAAP financial measures” as such term is defined by Regulation G of 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 a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss), Net income (loss) per share, or any other measure of consolidated results under U.S. 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 statement of income and must be considered in performing a comprehensive assessment of overall financial performance. Please refer to the non-GAAP reconciliations below.
 
PHOTRONICS, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)

   
Three Months Ended
    
Year Ended
  
   
October 31,
    
July 28,
    
October 31,
    
October 31,
    
October 31,
  
   
2024
    
2024
    
2023
    
2024
    
2023
  
                               
Revenue
  
$
222,628
    
$
210,984
    
$
227,473
    
$
866,946
    
$
892,076
  
                                         
Cost of goods sold
    
140,326
      
135,846
      
142,591
      
551,000
      
555,914
  
                                         
Gross Profit
    
82,302
      
75,138
      
84,882
      
315,946
      
336,162
  
                                         
Operating Expenses:
                                        
                                         
Selling, general and administrative
    
21,008
      
19,436
      
16,731
      
77,760
      
69,458
  
 
                                        
Research and development
    
5,285
      
3,555
      
3,367
      
16,576
      
13,654
  
 
                                        
Total Operating Expenses
    
26,293
      
22,991
      
20,098
      
94,336
      
83,112
  
                                         
Other operating (loss) gain
    
(182
)
    
1
      
-
      
(92
)
    
-
  
                                         
Operating Income
    
55,827
      
52,148
      
64,784
      
221,518
      
253,050
  
                                         
Non-operating (loss) income, net
    
(1,034
)
    
10,145
      
18,660
      
25,897
      
16,896
  
                                         
Income Before Income Tax Provision
    
54,793
      
62,293
      
83,444
      
247,415
      
269,946
  
                                         
Income tax provision
    
14,568
      
14,124
      
20,288
      
63,567
      
70,312
  
                                         
Net Income
    
40,225
      
48,169
      
63,156
      
183,848
      
199,634
  
                                         
Net income attributable to noncontrolling interests
    
6,356
      
13,781
      
18,545
      
53,160
      
74,149
  
                                         
Net income attributable to Photronics, Inc. shareholders
  
$
33,869
    
$
34,388
    
$
44,611
    
$
130,688
    
$
125,485
  
                                         
Earnings per share:
                                        
                                         
Basic
  
$
0.55
    
$
0.56
    
$
0.73
    
$
2.12
    
$
2.05
  
 
                                        
Diluted
  
$
0.54
    
$
0.55
    
$
0.72
    
$
2.09
    
$
2.03
  
                                         
Weighted-average number of common shares outstanding:
                                        
                                         
Basic
    
61,863
      
61,815
      
61,290
      
61,726
      
61,139
  
 
                                        
Diluted
    
62,456
      
62,414
      
62,067
      
62,391
      
61,755
  

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

   
October 31,
    
October 31,
  
   
2024
    
2023
  
             
Assets
            
             
Current assets:
            
Cash and cash equivalents
  
$
598,485
    
$
499,292
  
Short-term investments
    
42,184
      
12,915
  
Accounts receivable
    
200,830
      
194,927
  
Inventories
    
56,527
      
49,963
  
Other current assets
    
33,036
      
28,353
  
 
                
Total current assets
    
931,062
      
785,450
  
                 
Property, plant and equipment, net
    
745,257
      
709,244
  
Other assets
    
35,740
      
31,527
  
                 
Total assets
  
$
1,712,059
    
$
1,526,221
  
                 
Liabilities and Equity
                
                 
Current liabilities:
                
Current portion of long-term debt
  
$
17,972
    
$
6,621
  
Accounts payable and accrued liabilities
    
165,839
      
178,602
  
 
                
Total current liabilities
    
183,811
      
185,223
  
                 
Long-term debt
    
25
      
17,998
  
Other liabilities
    
47,464
      
47,391
  
                 
Equity:
                
Photronics, Inc. shareholders’ equity
    
1,120,864
      
975,008
  
Noncontrolling interests
    
359,895
      
300,601
  
Total equity
    
1,480,759
      
1,275,609
  
                 
Total liabilities and equity
  
$
1,712,059
    
$
1,526,221
  

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

   
Year Ended
  
   
October 31,
    
October 31,
  
   
2024
    
2023
  
             
Cash flows from operating activities:
            
Net income
  
$
183,848
    
$
199,634
  
Adjustments to reconcile net income to net cash
                
provided by operating activities:
                
Depreciation and amortization
    
82,805
      
80,835
  
Share-based compensation
    
13,890
      
8,001
  
Changes in operating assets, liabilities and other
    
(19,099
)
    
13,706
  
                 
Net cash provided by operating activities
    
261,444
      
302,176
  
                 
Cash flows from investing activities:
                
Purchases of property, plant and equipment
    
(130,942
)
    
(131,295
)
Purchases of short-term investments
    
(100,558
)
    
(20,192
)
Proceeds from maturities of short-term investments
    
72,836
      
47,537
  
Government incentives
    
2,229
      
2,522
  
Other
    
(30
)
    
(117
)
                 
Net cash used in investing activities
    
(156,465
)
    
(101,545
)
                 
Cash flows from financing activities:
                
Repayments of debt
    
(6,621
)
    
(18,439
)
Proceeds from share-based arrangements
    
1,916
      
1,248
  
Net settlements of restricted stock awards
    
(3,025
)
    
(1,302
)
                 
Net cash used in financing activities
    
(7,730
)
    
(18,493
)
                 
Effects of exchange rate changes on cash, cash equivalents, and restricted cash
    
2,127
      
(2,680
)
                 
Net increase in cash, cash equivalents, and restricted cash
    
99,376
      
179,458
  
Cash, cash equivalents, and restricted cash, beginning of period
    
501,867
      
322,409
  
                 
Cash, cash equivalents, and restricted cash, end of period
  
$
601,243
    
$
501,867
  

PHOTRONICS, INC.
Reconciliation of GAAP Net income attributable to Photronics, Inc. shareholders to Non-GAAP Net income and
GAAP Diluted Earnings Per Share to Non-GAAP Diluted Earnings Per Share
(in thousands)
(Unaudited)

   
Three Months ended
    
Year Ended
  
   
October 31,
    
July 28,
    
October 31,
    
October 31,
    
October 31,
  
   
2024
    
2024
    
2023
    
2024
    
2023
  
                               
                               
GAAP Net Income attributable to Photronics, Inc. shareholders
  
$
33,869
    
$
34,388
    
$
44,611
    
$
130,688
    
$
125,485
  
FX (gain) loss
    
7,758
      
(4,068
)
    
(13,234
)
    
(2,168
)
    
(2,466
)
Estimated tax effects of FX (gain) loss
    
(1,936
)
    
914
      
3,437
      
477
      
317
  
Estimated noncontrolling interest effects of above
    
(2,637
)
    
681
      
2,431
      
(1,407
)
    
2,676
  
Non-GAAP Net income attributable to Photronics, Inc. shareholders
  
$
37,054
    
$
31,915
    
$
37,245
    
$
127,590
    
$
126,012
  
                                         
Weighted-average number of common shares outstanding - Diluted
    
62,456
      
62,414
      
62,067
      
62,391
      
61,755
  
                                         
GAAP Diluted Earnings Per Share
  
$
0.54
    
$
0.55
    
$
0.72
    
$
2.09
    
$
2.03
  
Effects of non-GAAP adjustments above
    
0.05
      
(0.04
)
    
(0.12
)
    
(0.04
)
    
0.01
  
Non-GAAP Diluted Earnings Per Share
  
$
0.59
    
$
0.51
    
$
0.60
    
$
2.05
    
$
2.04