☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Connecticut | 06-0854886 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
15 Secor Road, Brookfield, Connecticut | 06804 | |
(Address of principal executive offices) | (Zip Code) |
(203) 775-9000 |
Large Accelerated Filer | ☒ | Accelerated Filer | ☐ | ||||
Non-Accelerated Filer | ☐ | ||||||
Smaller Reporting Company | ☐ | ||||||
Emerging growth company | ☐ |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
COMMON | PLAB | NASDAQ Global Select Market |
PART I. | FINANCIAL INFORMATION | ||
Item 1. | 4 | ||
4 | |||
5 | |||
6 | |||
7 | |||
9 | |||
10 | |||
Item 2. | 25 | ||
Item 3. | 32 | ||
Item 4. | 32 | ||
PART II. | OTHER INFORMATION | ||
Item 1A. | 33 | ||
Item 2. | 33 | ||
Item 6. | 34 |
PART I. | FINANCIAL INFORMATION |
April 29, 2018 | October 29, 2017 | April 28, 2019 | October 31, 2018 | |||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 321,246 | $ | 308,021 | $ | 167,066 | $ | 329,277 | ||||||||
Accounts receivable, net of allowance of $2,449 in 2018 and $2,319 in 2017 | 124,331 | 105,320 | ||||||||||||||
Accounts receivable, net of allowance of $1,360 in 2019 and $1,526 in 2018 | 123,371 | 120,515 | ||||||||||||||
Inventories | 31,936 | 23,703 | 34,696 | 29,180 | ||||||||||||
Prepaid expenses | 7,542 | 3,162 | 8,531 | 6,901 | ||||||||||||
Other current assets | 15,244 | 8,918 | 38,304 | 16,858 | ||||||||||||
Total current assets | 500,299 | 449,124 | 371,968 | 502,731 | ||||||||||||
Property, plant and equipment, net | 563,313 | 535,197 | 654,357 | 571,781 | ||||||||||||
Intangible assets, net | 14,708 | 17,122 | 10,182 | 12,368 | ||||||||||||
Deferred income taxes | 19,925 | 15,481 | 15,121 | 18,109 | ||||||||||||
Other assets | 4,036 | 3,870 | 33,610 | 5,020 | ||||||||||||
Total assets | $ | 1,102,281 | $ | 1,020,794 | $ | 1,085,238 | $ | 1,110,009 | ||||||||
LIABILITIES AND EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Current portion of long-term borrowings | $ | 59,263 | $ | 4,639 | ||||||||||||
Current portion of long-term debt | $ | 505 | $ | 57,453 | ||||||||||||
Accounts payable | 64,944 | 50,834 | 80,120 | 89,149 | ||||||||||||
Accrued liabilities | 42,301 | 26,303 | 58,659 | 44,474 | ||||||||||||
Total current liabilities | 166,508 | 81,776 | 139,284 | 191,076 | ||||||||||||
Long-term borrowings | - | 57,337 | ||||||||||||||
Long-term debt | 35,921 | - | ||||||||||||||
Deferred income taxes | 829 | 643 | ||||||||||||||
Other liabilities | 17,707 | 16,386 | 10,876 | 13,721 | ||||||||||||
Total liabilities | 184,215 | 155,499 | 186,910 | 205,440 | ||||||||||||
Commitments and contingencies | ||||||||||||||||
Equity: | ||||||||||||||||
Preferred stock, $0.01 par value, 2,000 shares authorized, none issued and outstanding | - | - | - | - | ||||||||||||
Common stock, $0.01 par value, 150,000 shares authorized, 69,443 shares issued and outstanding at April 29, 2018 and 68,666 shares issued and outstanding at October 29, 2017 | 694 | 687 | ||||||||||||||
Common stock, $0.01 par value, 150,000 shares authorized, 69,984 shares issued and 66,289 outstanding at April 28, 2019 and 69,700 shares issued and 67,142 outstanding at October 31, 2018 | 700 | 697 | ||||||||||||||
Additional paid-in capital | 552,977 | 547,596 | 558,359 | 555,606 | ||||||||||||
Retained earnings | 205,953 | 189,390 | 245,144 | 231,445 | ||||||||||||
Accumulated other comprehensive income | 23,756 | 6,891 | ||||||||||||||
Treasury stock, 3,695 shares at April 28, 2019 and 2,558 shares at October 31, 2018 | (33,807 | ) | (23,111 | ) | ||||||||||||
Accumulated other comprehensive loss | (6,828 | ) | (4,966 | ) | ||||||||||||
Total Photronics, Inc. shareholders' equity | 783,380 | 744,564 | ||||||||||||||
Total Photronics, Inc. shareholders’ equity | 763,568 | 759,671 | ||||||||||||||
Noncontrolling interests | 134,686 | 120,731 | 134,760 | 144,898 | ||||||||||||
Total equity | 918,066 | 865,295 | 898,328 | 904,569 | ||||||||||||
Total liabilities and equity | $ | 1,102,281 | $ | 1,020,794 | $ | 1,085,238 | $ | 1,110,009 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
April 29, 2018 | April 30, 2017 | April 29, 2018 | April 30, 2017 | April 28, 2019 | April 29, 2018 | April 28, 2019 | April 29, 2018 | |||||||||||||||||||||||||
Revenue | $ | 130,779 | $ | 108,297 | $ | 254,225 | $ | 218,128 | $ | 131,580 | $ | 130,779 | $ | 256,291 | $ | 254,225 | ||||||||||||||||
Cost of goods sold | (97,960 | ) | (88,140 | ) | (193,744 | ) | (174,973 | ) | 105,570 | 97,960 | 204,179 | 193,744 | ||||||||||||||||||||
Gross profit | 32,819 | 20,157 | 60,481 | 43,155 | 26,010 | 32,819 | 52,112 | 60,481 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Selling, general and administrative | (13,637 | ) | (10,894 | ) | (25,387 | ) | (21,764 | ) | 13,269 | 13,637 | 27,061 | 25,387 | ||||||||||||||||||||
Research and development | (3,817 | ) | (3,726 | ) | (7,921 | ) | (7,212 | ) | 3,542 | 3,817 | 7,805 | 7,921 | ||||||||||||||||||||
Total operating expenses | (17,454 | ) | (14,620 | ) | (33,308 | ) | (28,976 | ) | 16,811 | 17,454 | 34,866 | 33,308 | ||||||||||||||||||||
Operating income | 15,365 | 5,537 | 27,173 | 14,179 | 9,199 | 15,365 | 17,246 | 27,173 | ||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||||||
Interest income and other income (expense), net | 3,883 | (3,073 | ) | 351 | (4,596 | ) | 4,286 | 3,883 | 5,925 | 351 | ||||||||||||||||||||||
Interest expense | (551 | ) | (549 | ) | (1,125 | ) | (1,108 | ) | 355 | 551 | 886 | 1,125 | ||||||||||||||||||||
Income before income taxes | 18,697 | 1,915 | 26,399 | 8,475 | 13,130 | 18,697 | 22,285 | 26,399 | ||||||||||||||||||||||||
Income tax provision | (3,508 | ) | (431 | ) | (1,729 | ) | (2,481 | ) | 3,278 | 3,508 | 4,665 | 1,729 | ||||||||||||||||||||
Net income | 15,189 | 1,484 | 24,670 | 5,994 | 9,852 | 15,189 | 17,620 | 24,670 | ||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | (4,524 | ) | 313 | (8,107 | ) | (2,250 | ) | |||||||||||||||||||||||||
Net income attributable to noncontrolling interests | 1,373 | 4,524 | 3,874 | 8,107 | ||||||||||||||||||||||||||||
Net income attributable to Photronics, Inc. shareholders | $ | 10,665 | $ | 1,797 | $ | 16,563 | $ | 3,744 | $ | 8,479 | $ | 10,665 | $ | 13,746 | $ | 16,563 | ||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.15 | $ | 0.03 | $ | 0.24 | $ | 0.05 | $ | 0.13 | $ | 0.15 | $ | 0.21 | $ | 0.24 | ||||||||||||||||
Diluted | $ | 0.15 | $ | 0.03 | $ | 0.23 | $ | 0.05 | $ | 0.13 | $ | 0.15 | $ | 0.20 | $ | 0.23 | ||||||||||||||||
Weighted-average number of common shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 69,293 | 68,426 | 69,024 | 68,301 | 66,261 | 69,293 | 66,422 | 69,024 | ||||||||||||||||||||||||
Diluted | 75,190 | 69,385 | 75,052 | 69,277 | 70,597 | 75,190 | 71,593 | 75,052 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
April 29, 2018 | April 30, 2017 | April 29, 2018 | April 30, 2017 | |||||||||||||||||||||||||||||
April 28, 2019 | April 29, 2018 | April 28, 2019 | April 29, 2018 | |||||||||||||||||||||||||||||
Net income | $ | 15,189 | $ | 1,484 | $ | 24,670 | $ | 5,994 | $ | 9,852 | $ | 15,189 | $ | 17,620 | $ | 24,670 | ||||||||||||||||
Other comprehensive income (loss), net of tax of $0: | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (11,098 | ) | 18,382 | 18,989 | 17,769 | (7,054 | ) | (11,098 | ) | (482 | ) | 18,989 | ||||||||||||||||||||
Amortization of cash flow hedge | 16 | 32 | 48 | 64 | - | 16 | - | 48 | ||||||||||||||||||||||||
Other | 54 | (74 | ) | 22 | (94 | ) | 25 | 54 | 44 | 22 | ||||||||||||||||||||||
Net other comprehensive income (loss) | (11,028 | ) | 18,340 | 19,059 | 17,739 | |||||||||||||||||||||||||||
Net other comprehensive (loss) income | (7,029 | ) | (11,028 | ) | (438 | ) | 19,059 | |||||||||||||||||||||||||
Comprehensive income | 4,161 | 19,824 | 43,729 | 23,733 | 2,823 | 4,161 | 17,182 | 43,729 | ||||||||||||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | 1,841 | 4,326 | 10,301 | 8,147 | 1,515 | 1,841 | 5,298 | 10,301 | ||||||||||||||||||||||||
Comprehensive income attributable to Photronics, Inc. shareholders | $ | 2,320 | $ | 15,498 | $ | 33,428 | $ | 15,586 | $ | 1,308 | $ | 2,320 | $ | 11,884 | $ | 33,428 |
Three Months Ended April 28, 2019 | ||||||||||||||||||||||||||||||||
Photronics, Inc. Shareholders | ||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interests | Total Equity | ||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||
Balance at January 28, 2019 | 69,917 | $ | 699 | $ | 557,188 | $ | 236,665 | $ | (33,807 | ) | $ | 343 | $ | 152,082 | $ | 913,170 | ||||||||||||||||
Net income | - | - | - | 8,479 | - | - | 1,373 | 9,852 | ||||||||||||||||||||||||
Other comprehensive (loss) income | - | - | - | - | - | (7,171 | ) | 142 | (7,029 | ) | ||||||||||||||||||||||
Sale of common stock through employee stock option and purchase plans | 41 | 1 | 271 | - | - | - | - | 272 | ||||||||||||||||||||||||
Restricted stock awards vesting and expense | 26 | - | 650 | - | - | - | - | 650 | ||||||||||||||||||||||||
Share-based compensation expense | - | - | 250 | - | - | - | - | 250 | ||||||||||||||||||||||||
Subsidiary dividend payable | - | - | - | - | - | - | (18,837 | ) | (18,837 | ) | ||||||||||||||||||||||
Balance at April 28, 2019 | 69,984 | $ | 700 | $ | 558,359 | $ | 245,144 | $ | (33,807 | ) | $ | (6,828 | ) | $ | 134,760 | $ | 898,328 |
Three Months Ended April 29, 2018 | ||||||||||||||||||||||||||||
Photronics, Inc. Shareholders | ||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Non- controlling Interests | Total Equity | |||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||
Balance at January 29, 2018 | 68,869 | $ | 689 | $ | 549,328 | $ | 195,288 | $ | 32,128 | $ | 141,014 | $ | 918,447 | |||||||||||||||
Net income | - | - | - | 10,665 | - | 4,524 | 15,189 | |||||||||||||||||||||
Other comprehensive loss | - | - | - | - | (8,372 | ) | (2,656 | ) | (11,028 | ) | ||||||||||||||||||
Sale of common stock through employee stock option and purchase plans | 548 | 5 | 2,892 | - | - | - | 2,897 | |||||||||||||||||||||
Restricted stock awards vesting and expense | 26 | - | 457 | - | - | - | 457 | |||||||||||||||||||||
Share-based compensation expense | - | - | 300 | - | - | - | 300 | |||||||||||||||||||||
Subsidiary dividend payable | - | - | - | - | - | (8,196 | ) | (8,196 | ) | |||||||||||||||||||
Balance at April 29, 2018 | 69,443 | $ | 694 | $ | 552,977 | $ | 205,953 | $ | 23,756 | $ | 134,686 | $ | 918,066 |
Six Months Ended April 28, 2019 | ||||||||||||||||||||||||||||||||
Photronics, Inc. Shareholders | ||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Non- controlling Interests | ||||||||||||||||||||||||||||||
Retained Earnings | Treasury Stock | Total Equity | ||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||
Balance at November 1, 2018 | 69,700 | $ | 697 | $ | 555,606 | $ | 231,445 | $ | (23,111 | ) | $ | (4,966 | ) | $ | 144,898 | $ | 904,569 | |||||||||||||||
Adoption of ASU 2014-09 | - | - | - | 1,083 | - | - | 121 | 1,204 | ||||||||||||||||||||||||
Adoption of ASU 2016-16 | - | - | - | (1,130 | ) | - | - | (3 | ) | (1,133 | ) | |||||||||||||||||||||
Net income | - | - | - | 13,746 | - | - | 3,874 | 17,620 | ||||||||||||||||||||||||
Other comprehensive (loss) income | - | - | - | - | - | (1,862 | ) | 1,424 | (438 | ) | ||||||||||||||||||||||
Sale of common stock through employee stock option and purchase plans | 136 | 1 | 792 | - | - | - | - | 793 | ||||||||||||||||||||||||
Restricted stock awards vesting and expense | 148 | 2 | 1,217 | - | - | - | - | 1,219 | ||||||||||||||||||||||||
Share-based compensation expense | - | - | 744 | - | - | - | - | 744 | ||||||||||||||||||||||||
Contribution from noncontrolling interest | - | - | - | - | - | - | 29,394 | 29,394 | ||||||||||||||||||||||||
Dividends to noncontrolling interests | - | - | - | - | - | - | (26,102 | ) | (26,102 | ) | ||||||||||||||||||||||
Subsidiary dividend payable | - | - | - | - | - | - | (18,837 | ) | (18,837 | ) | ||||||||||||||||||||||
Repurchase of common stock of subsidiary | - | - | - | - | - | - | (9 | ) | (9 | ) | ||||||||||||||||||||||
Purchase of treasury stock | - | - | - | - | (10,696 | ) | - | - | (10,696 | ) | ||||||||||||||||||||||
Balance at April 28, 2019 | 69,984 | $ | 700 | $ | 558,359 | $ | 245,144 | $ | (33,807 | ) | $ | (6,828 | ) | $ | 134,760 | $ | 898,328 |
Six Months Ended April 29, 2018 | ||||||||||||||||||||||||||||
Photronics, Inc. Shareholders | ||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Non- controlling Interests | Total Equity | |||||||||||||||||||||||||
Retained Earnings | ||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||
Balance at October 30, 2017 | 68,666 | $ | 687 | $ | 547,596 | $ | 189,390 | $ | 6,891 | $ | 120,731 | $ | 865,295 | |||||||||||||||
Net income | - | - | - | 16,563 | - | 8,107 | 24,670 | |||||||||||||||||||||
Other comprehensive income | - | - | - | - | 16,865 | 2,194 | 19,059 | |||||||||||||||||||||
Sale of common stock through employee stock option and purchase plans | 664 | 7 | 3,592 | - | - | - | 3,599 | |||||||||||||||||||||
Restricted stock awards vesting and expense | 113 | - | 843 | - | - | - | 843 | |||||||||||||||||||||
Share-based compensation expense | - | - | 798 | - | - | - | 798 | |||||||||||||||||||||
Contribution from noncontrolling interest | - | - | 148 | - | - | 11,850 | 11,998 | |||||||||||||||||||||
Subsidiary dividend payable | - | - | - | - | - | (8,196 | ) | (8,196 | ) | |||||||||||||||||||
Balance at April 29, 2018 | 69,443 | $ | 694 | $ | 552,977 | $ | 205,953 | $ | 23,756 | $ | 134,686 | $ | 918,066 |
Six Months Ended | Six Months Ended | |||||||||||||||
April 29, 2018 | April 30, 2017 | April 28, 2019 | April 29, 2018 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 24,670 | $ | 5,994 | $ | 17,620 | $ | 24,670 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 44,429 | 42,242 | 38,515 | 44,429 | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Accounts receivable | (16,976 | ) | 4,204 | (2,295 | ) | (16,976 | ) | |||||||||
Inventories | (7,765 | ) | (1,506 | ) | (9,447 | ) | (7,765 | ) | ||||||||
Other current assets | (9,666 | ) | 2,103 | (6,114 | ) | (9,666 | ) | |||||||||
Accounts payable, accrued liabilities, and other | 3,216 | (6,130 | ) | (40,566 | ) | 3,216 | ||||||||||
Net cash provided by operating activities | 37,908 | 46,907 | ||||||||||||||
Net cash (used in) provided by operating activities | (2,287 | ) | 37,908 | |||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchases of property, plant and equipment | (44,129 | ) | (14,152 | ) | (140,436 | ) | (44,129 | ) | ||||||||
Acquisition of business | - | (5,400 | ) | |||||||||||||
Proceeds from sale of investment | - | 167 | ||||||||||||||
Government incentives | 5,698 | - | ||||||||||||||
Other | 436 | (462 | ) | (23 | ) | 296 | * | |||||||||
Net cash used in investing activities | (43,693 | ) | (19,847 | ) | (134,761 | ) | (43,833 | )* | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Repayments of long-term borrowings | (2,771 | ) | (2,695 | ) | ||||||||||||
Proceeds from debt | 39,633 | - | ||||||||||||||
Contribution from noncontrolling interest | 11,998 | - | 29,394 | 11,998 | ||||||||||||
Repayments of long-term debt | (61,220 | ) | (2,771 | ) | ||||||||||||
Dividends paid to noncontrolling interests | (26,102 | ) | - | |||||||||||||
Purchase of treasury stock | (10,696 | ) | - | |||||||||||||
Proceeds from share-based arrangements | 3,776 | 2,311 | 1,033 | 3,776 | ||||||||||||
Other | (267 | ) | (23 | ) | (45 | ) | (267 | ) | ||||||||
Net cash provided by (used in) financing activities | 12,736 | (407 | ) | |||||||||||||
Net cash (used in) provided by financing activities | (28,003 | ) | 12,736 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 6,274 | 4,997 | ||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 2,843 | 6,330 | * | |||||||||||||
Net increase in cash and cash equivalents | 13,225 | 31,650 | ||||||||||||||
Cash and cash equivalents at beginning of period | 308,021 | 314,074 | ||||||||||||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (162,208 | ) | 13,141 | * | ||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 331,989 | * | 310,936 | * | ||||||||||||
Cash and cash equivalents at end of period | $ | 321,246 | $ | 345,724 | ||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 169,781 | $ | 324,077 | * | |||||||||||
Supplemental disclosure information: | ||||||||||||||||
Accrual for property, plant and equipment purchased during the period | $ | 10,317 | $ | 11,409 | $ | 17,454 | $ | 10,317 | ||||||||
Accrual for property, plant and equipment purchased with funds receivable from government incentives | $ | 13,402 | $ | - | ||||||||||||
Subsidiary dividend payable | $ | 8,196 | $ | 8,383 | $ | 18,837 | $ | 8,196 |
Three Months Ended April 29, 2018 | ||||||||||||||||||||||||||||
Photronics, Inc. Shareholders | Non- controlling Interests | Total Equity | ||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | |||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||
Balance at January 29, 2018 | 68,869 | $ | 689 | $ | 549,328 | $ | 195,288 | $ | 32,128 | $ | 141,014 | $ | 918,447 | |||||||||||||||
Net income | - | - | - | 10,665 | - | 4,524 | 15,189 | |||||||||||||||||||||
Other comprehensive loss | - | - | - | - | (8,372 | ) | (2,656 | ) | (11,028 | ) | ||||||||||||||||||
Sale of common stock through employee stock option and purchase plans | 548 | 5 | 2,892 | - | - | - | 2,897 | |||||||||||||||||||||
Restricted stock awards vesting and expense | 26 | - | 457 | - | - | - | 457 | |||||||||||||||||||||
Share-based compensation expense | - | - | 300 | - | - | - | 300 | |||||||||||||||||||||
Subsidiary dividend payable | - | - | - | - | - | (8,196 | ) | (8,196 | ) | |||||||||||||||||||
Balance at April 29, 2018 | 69,443 | $ | 694 | $ | 552,977 | $ | 205,953 | $ | 23,756 | $ | 134,686 | $ | 918,066 |
Three Months Ended April 30, 2017 | ||||||||||||||||||||||||||||
Photronics, Inc. Shareholders | ||||||||||||||||||||||||||||
Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interests | Total Equity | ||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||
Balance at January 30, 2017 | 68,333 | $ | 683 | $ | 543,116 | $ | 178,207 | $ | (9,530 | ) | $ | 118,932 | $ | 831,408 | ||||||||||||||
Net income (loss) | - | - | - | 1,797 | - | (313 | ) | 1,484 | ||||||||||||||||||||
Other comprehensive income | - | - | - | - | 13,701 | 4,639 | 18,340 | |||||||||||||||||||||
Sale of common stock through employee stock option and purchase plans | 148 | 2 | 982 | - | - | - | 984 | |||||||||||||||||||||
Restricted stock awards vesting and expense | 15 | - | 431 | - | - | - | 431 | |||||||||||||||||||||
Share-based compensation expense | - | - | 490 | - | - | - | 490 | |||||||||||||||||||||
Subsidiary dividend payable | - | - | - | - | - | (8,383 | ) | (8,383 | ) | |||||||||||||||||||
Balance at April 30, 2017 | 68,496 | $ | 685 | $ | 545,019 | $ | 180,004 | $ | 4,171 | $ | 114,875 | $ | 844,754 |
Six Months Ended April 29, 2018 | ||||||||||||||||||||||||||||
Photronics, Inc. Shareholders | ||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Non- controlling Interests | Total Equity | |||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||
Balance at October 30, 2017 | 68,666 | $ | 687 | $ | 547,596 | $ | 189,390 | $ | 6,891 | $ | 120,731 | $ | 865,295 | |||||||||||||||
Net income | - | - | - | 16,563 | - | 8,107 | 24,670 | |||||||||||||||||||||
Other comprehensive income | - | - | - | - | 16,865 | 2,194 | 19,059 | |||||||||||||||||||||
Sale of common stock through employee stock option and purchase plans | 664 | 7 | 3,592 | - | - | - | 3,599 | |||||||||||||||||||||
Restricted stock awards vesting and expense | 113 | - | 843 | - | - | - | 843 | |||||||||||||||||||||
Share-based compensation expense | - | - | 798 | - | - | - | 798 | |||||||||||||||||||||
Contribution from noncontrolling interest | - | - | 148 | - | - | 11,850 | 11,998 | |||||||||||||||||||||
Subsidiary dividend payable | - | - | - | - | - | (8,196 | ) | (8,196 | ) | |||||||||||||||||||
Balance at April 29, 2018 | 69,443 | $ | 694 | $ | 552,977 | $ | 205,953 | $ | 23,756 | $ | 134,686 | $ | 918,066 |
Six Months Ended April 30, 2017 | ||||||||||||||||||||||||||||
Photronics, Inc. Shareholders | ||||||||||||||||||||||||||||
Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interests | Total Equity | ||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||
Balance at October 31, 2016 | 68,080 | $ | 681 | $ | 541,093 | $ | 176,260 | $ | (7,671 | ) | $ | 115,111 | $ | 825,474 | ||||||||||||||
Net income | - | - | - | 3,744 | - | 2,250 | 5,994 | |||||||||||||||||||||
Other comprehensive income | - | - | - | - | 11,842 | 5,897 | 17,739 | |||||||||||||||||||||
Sale of common stock through employee stock option and purchase plans | 323 | 3 | 2,068 | - | - | - | 2,071 | |||||||||||||||||||||
Restricted stock awards vesting and expense | 93 | 1 | 728 | - | - | - | 729 | |||||||||||||||||||||
Share-based compensation expense | - | - | 1,130 | - | - | - | 1,130 | |||||||||||||||||||||
Subsidiary dividend payable | - | - | - | - | - | (8,383 | ) | (8,383 | ) | |||||||||||||||||||
Balance at April 30, 2017 | 68,496 | $ | 685 | $ | 545,019 | $ | 180,004 | $ | 4,171 | $ | 114,875 | $ | 844,754 |
April 29, 2018 | October 29, 2017 | April 28, 2019 | October 31, 2018 | |||||||||||||
Raw materials | $ | 34,276 | $ | 25,110 | ||||||||||||
Work in process | 416 | 3,402 | ||||||||||||||
Finished goods | $ | 2,011 | $ | 664 | 4 | 668 | ||||||||||
Work in process | 4,901 | 2,957 | ||||||||||||||
Raw materials | 25,024 | 20,082 | ||||||||||||||
$ | 31,936 | $ | 23,703 | $ | 34,696 | $ | 29,180 |
April 28, 2019 | October 31, 2018 | |||||||
Land | $ | 11,164 | $ | 11,139 | ||||
Buildings and improvements | 124,374 | 124,771 | ||||||
Machinery and equipment | 1,673,574 | 1,566,163 | ||||||
Leasehold improvements | 19,598 | 19,577 | ||||||
Furniture, fixtures and office equipment | 13,503 | 12,415 | ||||||
Construction in progress | 132,394 | 128,649 | ||||||
1,974,607 | 1,862,714 | |||||||
Accumulated depreciation and amortization | (1,320,250 | ) | (1,290,933 | ) | ||||
$ | 654,357 | $ | 571,781 |
April 29, 2018 | October 29, 2017 | |||||||
Land | $ | 11,697 | $ | 9,959 | ||||
Buildings and improvements | 127,148 | 125,290 | ||||||
Machinery and equipment | 1,609,456 | 1,547,870 | ||||||
Leasehold improvements | 20,415 | 20,050 | ||||||
Furniture, fixtures and office equipment | 13,816 | 12,989 | ||||||
Construction in progress | 83,554 | 72,045 | ||||||
1,866,086 | 1,788,203 | |||||||
Accumulated depreciation and amortization | (1,302,773 | ) | (1,253,006 | ) | ||||
$ | 563,313 | $ | 535,197 |
April 29, 2018 | October 29, 2017 | |||||||
Machinery and equipment | $ | 34,917 | $ | 34,917 | ||||
Accumulated amortization | (19,328 | ) | (13,843 | ) | ||||
$ | 15,589 | $ | 21,074 |
April 28, 2019 | October 31, 2018 | |||||||||||||||||||||||
Classification | Carrying Amount | Photronics Interest | Carrying Amount | Photronics Interest | Carrying Amount | Photronics Interest | ||||||||||||||||||
Current assets | $ | 11,226 | $ | 5,614 | $ | 31,219 | $ | 15,612 | $ | 9,625 | $ | 4,813 | ||||||||||||
Non-current assets | 15,635 | 7,819 | 116,677 | 58,350 | 43,415 | 21,708 | ||||||||||||||||||
Total assets | 26,861 | 13,433 | 147,896 | 73,962 | 53,040 | 26,521 | ||||||||||||||||||
Current liabilities | 4,000 | 2,000 | 22,668 | 11,336 | 21,205 | 10,603 | ||||||||||||||||||
Non-current liabilities | 16 | 8 | 35,937 | 17,972 | 20 | 10 | ||||||||||||||||||
Total liabilities | 4,016 | 2,008 | 58,605 | 29,308 | 21,225 | 10,613 | ||||||||||||||||||
Net assets | $ | 22,845 | $ | 11,425 | $ | 89,291 | $ | 44,654 | $ | 31,815 | $ | 15,908 |
April 29, 2018 | October 29, 2017 | |||||||
3.25% convertible senior notes due in April 2019 | $ | 57,395 | $ | 57,337 | ||||
2.77% capital lease obligation payable through July 2018 | 1,868 | 4,639 | ||||||
59,263 | 61,976 | |||||||
Current portion | (59,263 | ) | (4,639 | ) | ||||
$ | - | $ | 57,337 |
April 28, 2019 | October 31, 2018 | |||||||
Project Loan due December 2025 | $ | 11,400 | $ | - | ||||
Project Loan due December 2022 | 14,932 | - | ||||||
Working Capital Loan due January 2022 | 10,094 | - | ||||||
3.25% convertible senior notes matured April 2019 | - | 57,453 | ||||||
36,426 | 57,453 | |||||||
Current portion | (505 | ) | (57,453 | ) | ||||
$ | 35,921 | $ | - |
As Reported | Adjustments | Balance without Adoption of Topic 606 | ||||||||||
Assets | ||||||||||||
Accounts receivable | $ | 123,371 | $ | (794 | ) | $ | 122,577 | |||||
Inventory | 34,696 | 4,807 | 39,503 | |||||||||
Other current assets | 38,304 | (6,237 | ) | 32,067 | ||||||||
Deferred income taxes | 15,121 | 105 | 15,226 | |||||||||
Liabilities | ||||||||||||
Accrued liabilities | $ | 58,659 | $ | 686 | $ | 59,345 | ||||||
Deferred income taxes | 829 | (367 | ) | 462 | ||||||||
Equity | ||||||||||||
Photronics, Inc. shareholders’ equity | $ | 763,568 | $ | (1,963 | ) | $ | 761,605 | |||||
Noncontrolling interests | 134,760 | (475 | ) | 134,285 |
As Reported | Adjustments | Balance without Adoption of Topic 606 | ||||||||||
Revenue | $ | 131,580 | $ | (242 | ) | $ | 131,338 | |||||
Cost of goods sold | 105,570 | (162 | ) | 105,408 | ||||||||
Gross profit | 26,010 | (80 | ) | 25,930 | ||||||||
Provision for taxes | 3,278 | (48 | ) | 3,230 | ||||||||
Net income | 9,852 | (128 | ) | 9,724 | ||||||||
Noncontrolling interests | 1,373 | 78 | 1,451 | |||||||||
Income attributable to Photronics, Inc. shareholders | $ | 8,479 | $ | (206 | ) | $ | 8,273 |
As Reported | Adjustments | Balance without Adoption of Topic 606 | ||||||||||
Revenue | $ | 256,291 | $ | (2,524 | ) | $ | 253,767 | |||||
Cost of goods sold | 204,179 | (1,041 | ) | 203,138 | ||||||||
Gross profit | 52,112 | (1,483 | ) | 50,629 | ||||||||
Provision for taxes | 4,665 | (178 | ) | 4,487 | ||||||||
Net income | 17,620 | (1,305 | ) | 16,315 | ||||||||
Noncontrolling interests | 3,874 | (353 | ) | 3,521 | ||||||||
Income attributable to Photronics, Inc. shareholders | $ | 13,746 | $ | (952 | ) | $ | 12,794 |
As Reported | Adjustments | Balance without Adoption of Topic 606 | ||||||||||
Net Income | $ | 17,620 | $ | (1,305 | ) | $ | 16,315 | |||||
Changes in operating accounts: | ||||||||||||
Accounts receivable | $ | (2,295 | ) | $ | 211 | $ | (2,084 | ) | ||||
Inventories | (9,447 | ) | (1,204 | ) | (10,651 | ) | ||||||
Other current assets | (6,114 | ) | 1,799 | (4,315 | ) | |||||||
Accounts payable, accrued liabilities, and other | (40,566 | ) | 499 | (40,067 | ) |
Revenue by Product Type | Three Months Ended April 28, 2019 | Six Months Ended April 28, 2019 | ||||||
IC | ||||||||
High-end | $ | 38,429 | $ | 72,995 | ||||
Mainstream | 60,158 | 120,471 | ||||||
Total IC | $ | 98,587 | $ | 193,466 | ||||
FPD | ||||||||
High-end | $ | 22,956 | $ | 44,422 | ||||
Mainstream | 10,037 | 18,403 | ||||||
Total FPD | $ | 32,993 | $ | 62,825 | ||||
$ | 131,580 | $ | 256,291 | |||||
Revenue by Geographic Location | ||||||||
Taiwan | $ | 56,469 | $ | 114,209 | ||||
Korea | 38,038 | 73,275 | ||||||
United States | 26,742 | 49,215 | ||||||
Europe | 8,435 | 16,788 | ||||||
China | 1,467 | 1,730 | ||||||
Other | 429 | 1,074 | ||||||
$ | 131,580 | $ | 256,291 | |||||
Revenue by Timing of Recognition | ||||||||
Over time | $ | 123,853 | $ | 244,699 | ||||
At a point in time | 7,727 | 11,592 | ||||||
$ | 131,580 | $ | 256,291 |
Three Months Ended | Six Months Ended | |||||||||||||||
April 28, 2019 | April 29, 2018 | April 28, 2019 | April 29, 2018 | |||||||||||||
Volatility | N/A | N/A | 33.1 | % | 31.6 | % | ||||||||||
Risk free rate of return | N/A | N/A | 2.5-2.9 | % | 2.2 | % | ||||||||||
Dividend yield | N/A | N/A | 0.0 | % | 0.0 | % | ||||||||||
Expected term | N/A | N/A | 5.1 years | 5.0 years |
Three Months Ended | Six Months Ended | |||||||||||||||
April 29, 2018 | April 30, 2017 | April 29, 2018 | April 30, 2017 | |||||||||||||
Volatility | N/A | 31.6 | % | 31.6 | % | 32.2 | % | |||||||||
Risk free rate of return | N/A | 2.0 | % | 2.2 | % | 1.9-2.0 | % | |||||||||
Dividend yield | N/A | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||
Expected term | N/A | 5.0 years | 5.0 years | 5.0 years |
Options | Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||||
Outstanding at April 29, 2018 | 2,613,640 | $ | 8.47 | 6.2 years | $ | 2,054 | |||||||||
Exercisable at April 29, 2018 | 1,744,975 | $ | 7.62 | 5.0 years | $ | 2,054 |
Options | Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||
Outstanding at April 28, 2019 | 2,405,318 | $ | 8.88 | 5.7 years | $ | 2,968 | |||||||
Exercisable at April 28, 2019 | 1,795,651 | $ | 8.47 | 4.9 years | $ | 2,797 |
We calculate our provision for income taxes at the end of each interim reporting period on the basis of an estimated annual effective tax rate adjusted for tax items that are discrete to each period.
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
April 29, 2018 | April 30, 2017 | April 29 2018 | April 30 2017 | April 28, 2019 | April 29, 2018 | April 28, 2019 | April 29, 2018 | |||||||||||||||||||||||||
Net income attributable to Photronics, Inc. shareholders | $ | 10,665 | $ | 1,797 | $ | 16,563 | $ | 3,744 | $ | 8,479 | $ | 10,665 | $ | 13,746 | $ | 16,563 | ||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||||||||
Interest expense on convertible notes, net of tax | 496 | - | 992 | - | 349 | 496 | 845 | 992 | ||||||||||||||||||||||||
Earnings used for diluted earnings per share | $ | 11,161 | $ | 1,797 | $ | 17,555 | $ | 3,744 | $ | 8,828 | $ | 11,161 | $ | 14,591 | $ | 17,555 | ||||||||||||||||
Weighted-average common shares computations: | ||||||||||||||||||||||||||||||||
Weighted-average common shares used for basic earnings per share | 69,293 | 68,426 | 69,024 | 68,301 | 66,261 | 69,293 | 66,422 | 69,024 | ||||||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||||||||
Convertible notes | 5,542 | - | 5,542 | - | 3,898 | 5,542 | 4,720 | 5,542 | ||||||||||||||||||||||||
Share-based payment awards | 355 | 959 | 486 | 976 | 438 | 355 | 451 | 486 | ||||||||||||||||||||||||
Potentially dilutive common shares | 5,897 | 959 | 6,028 | 976 | 4,336 | 5,897 | 5,171 | 6,028 | ||||||||||||||||||||||||
Weighted-average common shares used for diluted earnings per share | 75,190 | 69,385 | 75,052 | 69,277 | 70,597 | 75,190 | 71,593 | 75,052 | ||||||||||||||||||||||||
Basic earnings per share | $ | 0.15 | $ | 0.03 | $ | 0.24 | $ | 0.05 | $ | 0.13 | $ | 0.15 | $ | 0.21 | $ | 0.24 | ||||||||||||||||
Diluted earnings per share | $ | 0.15 | $ | 0.03 | $ | 0.23 | $ | 0.05 | $ | 0.13 | $ | 0.15 | $ | 0.20 | $ | 0.23 |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
April 29, 2018 | April 30, 2017 | April 29, 2018 | April 30, 2017 | |||||||||||||||||||||||||||||
April 28, 2019 | April 29, 2018 | April 28, 2019 | April 29, 2018 | |||||||||||||||||||||||||||||
Share-based payment awards | 2,022 | 1,082 | 1,803 | 1,038 | 1,204 | 2,022 | 1,134 | 1,803 | ||||||||||||||||||||||||
Convertible notes | - | 5,542 | - | 5,542 | ||||||||||||||||||||||||||||
Total potentially dilutive shares excluded | 2,022 | 6,624 | 1,803 | 6,580 | 1,204 | 2,022 | 1,134 | 1,803 |
Three Months Ended April 29, 2018 | ||||||||||||||||
Foreign Currency Translation Adjustments | Amortization of Cash Flow Hedge | Other | Total | |||||||||||||
Balance at January 29, 2018 | $ | 32,848 | $ | (16 | ) | $ | (704 | ) | $ | 32,128 | ||||||
Other comprehensive income (loss) before Reclassifications | (11,098 | ) | - | 54 | (11,044 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income | - | 16 | - | 16 | ||||||||||||
Net current period other comprehensive (loss) income | (11,098 | ) | 16 | 54 | (11,028 | ) | ||||||||||
Less: other comprehensive (income) loss attributable to noncontrolling interests | 2,683 | - | (27 | ) | 2,656 | |||||||||||
Balance at April 29, 2018 | $ | 24,433 | $ | - | $ | (677 | ) | $ | 23,756 |
Three Months Ended April 28, 2019 | ||||||||||||
Foreign Currency Translation | Other | Total | ||||||||||
Balance at January 28, 2019 | $ | 971 | $ | (628 | ) | $ | 343 | |||||
Other comprehensive (loss) income | (7,054 | ) | 25 | (7,029 | ) | |||||||
Less: other comprehensive income attributable to noncontrolling interests | 129 | 13 | 142 | |||||||||
Balance at April 28, 2019 | $ | (6,212 | ) | $ | (616 | ) | $ | (6,828 | ) |
Three Months Ended April 29, 2018 | ||||||||||||||||
Foreign Currency Translation Adjustments | Amortization of Cash Flow Hedge | Other | Total | |||||||||||||
Balance at January 29, 2018 | $ | 32,848 | $ | (16 | ) | $ | (704 | ) | $ | 32,128 | ||||||
Other comprehensive (loss) income before Reclassifications | (11,098 | ) | - | 54 | (11,044 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income | - | 16 | - | 16 | ||||||||||||
Net current period other comprehensive (loss) income | (11,098 | ) | 16 | 54 | (11,028 | ) | ||||||||||
Less: other comprehensive (loss) income attributable to noncontrolling interests | (2,683 | ) | - | 27 | (2,656 | ) | ||||||||||
Balance at April 29, 2018 | $ | 24,433 | $ | - | $ | (677 | ) | $ | 23,756 |
Three Months Ended April 30, 2017 | ||||||||||||||||
Foreign Currency Translation Adjustments | Amortization of Cash Flow Hedge | Other | Total | |||||||||||||
Balance at January 30, 2017 | $ | (8,448 | ) | $ | (145 | ) | $ | (937 | ) | $ | (9,530 | ) | ||||
Other comprehensive income (loss) before reclassifications | 18,382 | - | (74 | ) | 18,308 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | - | 32 | - | 32 | ||||||||||||
Net current period other comprehensive income (loss) | 18,382 | 32 | (74 | ) | 18,340 | |||||||||||
Less: other comprehensive (income) loss attributable to noncontrolling interests | (4,676 | ) | - | 37 | (4,639 | ) | ||||||||||
Balance at April 30, 2017 | $ | 5,258 | $ | (113 | ) | $ | (974 | ) | $ | 4,171 |
Six Months Ended April 28, 2019 | ||||||||||||
Foreign Currency Translation Adjustments | Other | Total | ||||||||||
Balance at November 1, 2018 | $ | (4,328 | ) | $ | (638 | ) | $ | (4,966 | ) | |||
Other comprehensive (loss) income | (482 | ) | 44 | (438 | ) | |||||||
Less: other comprehensive income attributable to noncontrolling interests | 1,402 | 22 | 1,424 | |||||||||
Balance at April 28, 2019 | $ | (6,212 | ) | $ | (616 | ) | $ | (6,828 | ) |
Six Months Ended April 29, 2018 | ||||||||||||||||
Foreign Currency Translation Adjustments | Amortization of Cash Flow Hedge | Other | Total | |||||||||||||
Balance at October 30, 2017 | $ | 7,627 | $ | (48 | ) | $ | (688 | ) | $ | 6,891 | ||||||
Other comprehensive income before Reclassifications | 18,989 | - | 22 | 19,011 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | - | 48 | - | 48 | ||||||||||||
Net current period other comprehensive income | 18,989 | 48 | 22 | 19,059 | ||||||||||||
Less: other comprehensive income attributable to noncontrolling interests | 2,183 | - | 11 | 2,194 | ||||||||||||
Balance at April 29, 2018 | $ | 24,433 | $ | - | $ | (677 | ) | $ | 23,756 |
Six Months Ended April 29, 2018 | ||||||||||||||||
Foreign Currency Translation Adjustments | Amortization of Cash Flow Hedge | Other | Total | |||||||||||||
Balance at October 30, 2017 | $ | 7,627 | $ | (48 | ) | $ | (688 | ) | $ | 6,891 | ||||||
Other comprehensive income (loss) before reclassifications | 18,989 | - | 22 | 19,011 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | - | 48 | - | 48 | ||||||||||||
Net current period other comprehensive income (loss) | 18,989 | 48 | 22 | 19,059 | ||||||||||||
Less: other comprehensive income attributable to noncontrolling interests | (2,183 | ) | - | (11 | ) | (2,194 | ) | |||||||||
Balance at April 29, 2018 | $ | 24,433 | $ | - | $ | (677 | ) | $ | 23,756 |
Six Months Ended April 30, 2017 | ||||||||||||||||
Foreign Currency Translation Adjustments | Amortization of Cash Flow Hedge | Other | Total | |||||||||||||
Balance at October 31, 2016 | $ | (6,567 | ) | $ | (177 | ) | $ | (927 | ) | $ | (7,671 | ) | ||||
Other comprehensive income (loss) before reclassifications | 17,769 | - | (94 | ) | 17,675 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | - | 64 | - | 64 | ||||||||||||
Net current period other comprehensive income (loss) | 17,769 | 64 | (94 | ) | 17,739 | |||||||||||
Less: other comprehensive (income) loss attributable to noncontrolling interests | (5,944 | ) | - | 47 | (5,897 | ) | ||||||||||
Balance at April 30, 2017 | $ | 5,258 | $ | (113 | ) | $ | (974 | ) | $ | 4,171 |
October 31, 2018 | ||||||||
Fair Value | Carrying Value | |||||||
3.25% convertible senior notes matured 2019 | $ | 62,094 | $ | 57,453 |
April 29, 2018 | October 29, 2017 | |||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | |||||||||||||
3.25% convertible senior notes due 2019 | $ | 62,549 | $ | 57,395 | $ | 67,396 | $ | 57,337 |
Six Months Ended April 28, 2019 | From Inception Date of October 22, 2018 | |||||||
Number of shares repurchased | 1,137 | 1,467 | ||||||
Cost of shares repurchased | $ | 10,694 | $ | 13,807 | ||||
Average price paid per share | $ | 9.40 | $ | 9.41 |
Item 2. |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | April 28, 2019 | January 27, 2019 | April 29, 2018 | April 28, 2019 | April 29, 2018 | ||||||||||||||||||||||||||||||||||
April 29, 2018 | January 28, 2018 | April 30, 2017 | April 29, 2018 | April 30, 2017 | ||||||||||||||||||||||||||||||||||||
Revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||
Cost of goods sold | (74.9 | ) | (77.6 | ) | (81.4 | ) | (76.2 | ) | (80.2 | ) | 80.2 | 79.1 | 74.9 | 79.7 | 76.2 | |||||||||||||||||||||||||
Gross profit | 25.1 | 22.4 | 18.6 | 23.8 | 19.8 | 19.8 | 20.9 | 25.1 | 20.3 | 23.8 | ||||||||||||||||||||||||||||||
Selling, general and administrative expenses | (10.4 | ) | (9.5 | ) | (10.1 | ) | (10.0 | ) | (10.0 | ) | 10.1 | 11.0 | 10.4 | 10.6 | 10.0 | |||||||||||||||||||||||||
Research and development expenses | (2.9 | ) | (3.3 | ) | (3.4 | ) | (3.1 | ) | (3.3 | ) | 2.7 | 3.4 | 2.9 | 3.0 | 3.1 | |||||||||||||||||||||||||
Operating income | 11.8 | 9.6 | 5.1 | 10.7 | 6.5 | 7.0 | 6.5 | 11.8 | 6.7 | 10.7 | ||||||||||||||||||||||||||||||
Other income (expense), net | 2.5 | (3.4 | ) | (3.3 | ) | (0.3 | ) | (2.6 | ) | 3.0 | 0.8 | 2.5 | 2.0 | (0.3 | ) | |||||||||||||||||||||||||
Income before income taxes | 14.3 | 6.2 | 1.8 | 10.4 | 3.9 | 10.0 | 7.3 | 14.3 | 8.7 | 10.4 | ||||||||||||||||||||||||||||||
Income tax (provision) benefit | (2.7 | ) | 1.5 | (0.4 | ) | (0.7 | ) | (1.2 | ) | |||||||||||||||||||||||||||||||
Income tax provision | 2.5 | 1.1 | 2.7 | 1.8 | 0.7 | |||||||||||||||||||||||||||||||||||
Net income | 11.6 | 7.7 | 1.4 | 9.7 | 2.7 | 7.5 | 6.2 | 11.6 | 6.9 | 9.7 | ||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | (3.4 | ) | (2.9 | ) | 0.3 | (3.2 | ) | (1.0 | ) | |||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | 1.1 | 2.0 | 3.4 | 1.5 | 3.2 | |||||||||||||||||||||||||||||||||||
Net income attributable to Photronics, Inc. shareholders | 8.2 | % | 4.8 | % | 1.7 | % | 6.5 | % | 1.7 | % | 6.4 | % | 4.2 | % | 8.2 | % | 5.4 | % | 6.5 | % |
Q2 FY19 from Q1 FY19 | Q2 FY19 from Q2 FY18 | YTD FY19 from YTD FY18 | ||||||||||||||||||||||||||||||
Revenue in Q2 FY19 | Percent Change | Increase (Decrease) | Percent Change | Increase (Decrease) | Revenue in YTD FY19 | Percent Change | Increase (Decrease) | |||||||||||||||||||||||||
IC | ||||||||||||||||||||||||||||||||
High-end | $ | 38.4 | 11.2 | % | $ | 3.8 | (7.3 | )% | $ | (3.1 | ) | $ | 73.0 | (2.5 | )% | $ | (1.8 | ) | ||||||||||||||
Mainstream | 60.2 | (0.3 | )% | (0.1 | ) | (1.1 | )% | (0.6 | ) | 120.5 | (2.1 | )% | (2.6 | ) | ||||||||||||||||||
Total IC | $ | 98.6 | 3.9 | % | $ | 3.7 | (3.6 | )% | $ | (3.7 | ) | $ | 193.5 | (2.3 | )% | $ | (4.4 | ) | ||||||||||||||
FPD | ||||||||||||||||||||||||||||||||
High-end | $ | 23.0 | 6.9 | % | $ | 1.5 | 25.9 | % | $ | 4.8 | $ | 44.4 | 20.0 | % | $ | 7.4 | ||||||||||||||||
Mainstream | 10.0 | 20.0 | % | 1.7 | (2.4 | )% | (0.3 | ) | 18.4 | (4.5 | )% | (0.9 | ) | |||||||||||||||||||
Total FPD | $ | 33.0 | 10.6 | % | $ | 3.2 | 15.7 | % | $ | 4.5 | $ | 62.8 | 11.6 | % | $ | 6.5 | ||||||||||||||||
Total Revenue | $ | 131.6 | 5.5 | % | $ | 6.9 | 0.6 | % | $ | 0.8 | $ | 256.3 | 0.8 | % | $ | 2.1 |
Q2 FY18 compared with Q1 FY18 | Q2 FY18 compared with Q2 FY17 | YTD FY18 compared with YTD FY17 | ||||||||||||||||||||||||||||||
Revenue in Q2 FY18 | Percent Change | Increase (Decrease) | Percent Change | Increase (Decrease) | Revenue in YTD FY18 | Percent Change | Increase (Decrease) | |||||||||||||||||||||||||
IC | ||||||||||||||||||||||||||||||||
High-end | $ | 41.5 | 24.2 | % | $ | 8.1 | 82.7 | % | $ | 18.8 | $ | 74.8 | 66.8 | % | $ | 30.0 | ||||||||||||||||
Mainstream | 60.8 | (2.4 | )% | (1.5 | ) | 1.4 | % | 0.8 | 123.1 | (0.9 | )% | (1.1 | ) | |||||||||||||||||||
Total IC | $ | 102.3 | 6.9 | % | $ | 6.6 | 23.7 | % | $ | 19.6 | $ | 197.9 | 17.1 | % | $ | 28.9 | ||||||||||||||||
FPD | ||||||||||||||||||||||||||||||||
High-end | $ | 18.2 | (2.9 | )% | $ | (0.6 | ) | 8.8 | % | $ | 1.5 | $ | 37.0 | 8.9 | % | $ | 3.0 | |||||||||||||||
Mainstream | 10.3 | 14.5 | % | 1.3 | 15.7 | % | 1.4 | 19.3 | 27.8 | % | 4.2 | |||||||||||||||||||||
Total FPD | $ | 28.5 | 2.7 | % | $ | 0.7 | 11.2 | % | $ | 2.9 | $ | 56.3 | 14.7 | % | $ | 7.2 | ||||||||||||||||
Total Revenue | $ | 130.8 | 5.9 | % | $ | 7.3 | 20.8 | % | $ | 22.5 | $ | 254.2 | 16.5 | % | $ | 36.1 |
Q2 FY19 from Q1 FY19 | Q2 FY19 from Q2 FY18 | YTD FY19 from YTD FY18 | ||||||||||||||||||||||||||||||
Revenue in Q2 FY19 | Percent Change | Increase (Decrease) | Percent Change | Increase (Decrease) | Revenue in YTD FY19 | Percent Change | Increase (Decrease) | |||||||||||||||||||||||||
Taiwan | $ | 56.6 | (2.0 | )% | $ | (1.1 | ) | 0.9 | % | $ | 0.5 | $ | 114.2 | 1.4 | % | $ | 1.6 | |||||||||||||||
Korea | 38.0 | 7.9 | % | 2.8 | 5.4 | % | 1.9 | 73.3 | 6.0 | % | 4.2 | |||||||||||||||||||||
United States | 26.7 | 19.0 | % | 4.2 | (8.4 | )% | (2.5 | ) | 49.2 | (9.2 | )% | (5.0 | ) | |||||||||||||||||||
Europe | 8.4 | 1.0 | % | 0.0 | (3.6 | )% | (0.3 | ) | 16.8 | (2.6 | )% | (0.4 | ) | |||||||||||||||||||
China | 1.5 | 457.8 | % | 1.2 | 505.6 | % | 1.3 | 1.7 | 542.2 | % | 1.4 | |||||||||||||||||||||
Other | 0.4 | (33.6 | )% | (0.2 | ) | (2.4 | )% | (0.1 | ) | 1.1 | 36.9 | % | 0.3 | |||||||||||||||||||
$ | 131.6 | 5.5 | % | $ | 6.9 | 0.6 | % | $ | 0.8 | $ | 256.3 | 0.8 | % | $ | 2.1 |
Q2 FY18 with Q1 FY18 | Q2 FY18 with Q2 FY17 | YTD FY18 with YTD FY17 | ||||||||||||||||||||||||||||||
Revenue in Q2 FY18 | Percent Change | Increase (Decrease) | Percent Change | Increase (Decrease) | Revenue in YTD FY18 | Percent Change | Increase (Decrease) | |||||||||||||||||||||||||
Taiwan | $ | 56.1 | (0.9 | )% | $ | (0.5 | ) | 32.8 | % | $ | 13.8 | $ | 112.6 | 26.9 | % | $ | 23.9 | |||||||||||||||
Korea | 36.1 | 9.4 | % | 3.1 | 16.7 | % | 5.2 | 69.1 | 12.9 | % | 7.9 | |||||||||||||||||||||
United States | 29.2 | 16.7 | % | 4.2 | 12.5 | % | 3.3 | 54.2 | 9.4 | % | 4.6 | |||||||||||||||||||||
Europe | 8.7 | 3.1 | % | 0.2 | 0.4 | % | - | 17.2 | (1.2 | )% | (0.2 | ) | ||||||||||||||||||||
Other | 0.7 | 82.7 | % | 0.3 | 36.5 | % | 0.2 | 1.1 | (10.3 | )% | (0.1 | ) | ||||||||||||||||||||
$ | 130.8 | 5.9 | % | $ | 7.3 | 20.8 | % | $ | 22.5 | $ | 254.2 | 16.5 | % | $ | 36.1 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Q2 FY19 | Q1 FY19 | Percent Change | Q2 FY18 | Percent Change | YTD FY19 | YTD FY18 | Percent Change | |||||||||||||||||||||||||
Gross profit | $ | 26.0 | $ | 26.1 | (0.4 | )% | $ | 32.8 | (20.7 | )% | $ | 52.1 | $ | 60.5 | (13.8 | )% | ||||||||||||||||
Gross margin | 19.8 | % | 20.9 | % | 25.1 | % | 20.3 | % | 23.8 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Q2 FY18 | Q1 FY18 | Percent Change | Q2 FY17 | Percent Change | YTD FY18 | YTD FY17 | Percent Change | |||||||||||||||||||||||||
Gross profit | $ | 32.8 | $ | 27.7 | 18.6 | % | $ | 20.2 | 62.8 | % | $ | 60.5 | % | $ | 43.2 | 40.1 | % | |||||||||||||||
Gross margin | 25.1 | % | 22.4 | % | 18.6 | % | 23.8 | % | 19.8 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||
Q2 FY18 | Q1 FY18 | Q2 FY17 | YTD FY18 | YTD FY17 | Q2 FY19 | Q1 FY19 | Q2 FY18 | YTD FY19 | YTD FY18 | |||||||||||||||||||||||||||||||
Interest income and other income (expense), net | $ | 3.9 | $ | (3.5 | ) | $ | (3.1 | ) | $ | 0.3 | $ | (4.6 | ) | $ | 4.3 | $ | 1.6 | $ | 3.9 | $ | 5.9 | $ | 0.3 | |||||||||||||||||
Interest expense | (0.6 | ) | (0.6 | ) | (0.5 | ) | (1.1 | ) | (1.1 | ) | 0.4 | 0.5 | 0.6 | 0.9 | 1.1 | |||||||||||||||||||||||||
Other income (expense), net | $ | 3.3 | $ | (4.1 | ) | $ | (3.6 | ) | $ | (0.8 | ) | $ | (5.7 | ) | $ | 3.9 | $ | 1.1 | $ | 3.3 | $ | 5.0 | $ | (0.8 | ) |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
Q2 FY18 | Q1 FY18 | Q2 FY17 | YTD FY18 | YTD FY17 | ||||||||||||||||||||||||||||||||||||
Q2 FY19 | Q1 FY19 | Q2 FY18 | YTD FY19 | YTD FY18 | ||||||||||||||||||||||||||||||||||||
Income tax (provision) benefit | $ | (3.5 | ) | $ | 1.8 | $ | (0.4 | ) | $ | (1.7 | ) | $ | (2.5 | ) | ||||||||||||||||||||||||||
Income tax provision | $ | 3.3 | $ | 1.4 | $ | 3.5 | $ | 4.7 | $ | 1.7 | ||||||||||||||||||||||||||||||
Effective income tax rate | 18.8 | % | (23.1 | )% | 22.5 | % | 6.5 | % | 29.3 | % | 25.0 | % | 15.2 | % | 18.8 | % | 20.9 | % | 6.5 | % |
Total Number of Shares Purchased (in millions) | Average Price Paid Per share | Total Number of Shares Purchased as Part of Publicly Announced Program (in millions) | Dollar Value of Shares That May Yet Be Purchased (in millions) | |||||||||||||
Period | ||||||||||||||||
October 12, 2018 – October 31, 2018 | 0.3 | $ | 9.45 | 0.3 | $ | 21.9 | ||||||||||
November 1, 2018 – November 25, 2018 | 0.2 | $ | 9.49 | 0.2 | $ | 20.1 | ||||||||||
November 26, 2018 – December 23, 2018 | 0.7 | $ | 9.38 | 0.7 | $ | 13.4 | ||||||||||
December 24, 2018 – January 27, 2019 | 0.2 | $ | 9.41 | 0.2 | $ | 11.2 | * | |||||||||
Total | 1.4 | 1.4 |
(a) | Exhibits | ||||
Exhibit Number | Description | ||||
Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||
Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||
101.INS | XBRL Instance Document | ||||
101.SCH | XBRL Taxonomy Extension Schema Document | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
Photronics, Inc. | ||
(Registrant) | ||
By: | /s/ JOHN P. JORDAN | |
JOHN P. JORDAN | ||
Senior Vice President | ||
Chief Financial Officer | ||
(Principal Accounting Officer/ | ||
Principal Financial Officer) |