Photronics Reports Full Year and Fourth Quarter Fiscal 2024 Results

/EIN News/ -- BROOKFIELD, Conn., Dec. 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.

For Further Information:
Ted Moreau
VP, Investor Relations
469.395.8175
tmoreau@photronics.com

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