PLAB 8-K
Photronics Inc (PLAB)
8-K
2024-12-11
For: 2024-12-11
View Original
Added on
April 07, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Date of report (Date of earliest event reported)
|
|
(Exact name of registrant as specified in its charter)
|
|
|
|
|
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
|
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
|
Registrant’s Telephone Number, including area code
|
(
|
(Former name or former address, if changed since last report)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
|
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this
chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new
or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. |
Results of Operations and Financial Condition.
|
On December 11, 2024, Photronics, Inc. (the “Company”) issued a press release reporting fourth quarter fiscal 2024 results.
On December 11, 2024, the Company will conduct a conference call with respect to its financial results and other matters during which it will also
disclose a slide presentation.
A copy of the press release is furnished as Exhibit 99.1 to this report and a copy of the slide presentation is furnished as Exhibit 99.2 to this
report. The information contained in this Item 2.02 and the attached Exhibits 99.1 and 99.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be incorporated by reference in any filing
under the Securities Act of 1933 except as shall be expressly set forth by specific reference in such filing.
| Item 9.01. |
Financial Statements and Exhibits.
|
|
(d)
|
Exhibits
|
|
Press Release December 11, 2024.
|
|
|
Photronics Q4 2024 Financial Results Conference Call December 11, 2024 slides.
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
PHOTRONICS, INC.
|
||
|
(Registrant)
|
||
|
By:
|
/s/ Christopher J. Lutzo | |
|
Name:
|
Christopher J. Lutzo | |
|
Title:
|
Vice President, | |
|
|
General Counsel and Secretary
|
|
|
Date: December 11, 2024
|
||
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
|
||||||||||
Exhibit 99.2
