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

jjordan@photronics.com

Photronics Reports Full Year and Fourth Quarter Fiscal 2022 Results