☒ | 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 |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
COMMON | PLAB | NASDAQ Global Select Market |
PREFERRED STOCK PURCHASE RIGHTS | N/A | N/A |
Large Accelerated Filer | ☒ | Accelerated Filer | ☐ | Non-Accelerated Filer | ☐ |
Smaller Reporting Company | ☐ | Emerging growth company | ☐ |
3 | ||
4 | ||
PART I. | FINANCIAL INFORMATION | |
Item 1. | 5 | |
5 | ||
6 | ||
7 | ||
8 | ||
10 | ||
11 | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II. | OTHER INFORMATION | |
Item 1. | ||
Item 1A. | 35 | |
Item 2. | ||
Item 6. |
AMOLED | Active-matrix organic light-emitting diode. A technology used in mobile devices. | ||
ASC | Accounting Standards Codification | ||
ASP | Average Selling Price | ||
ASU | Accounting Standards Update | ||
Chip stacking | Placement of a computer chip on top of another computer chip, resulting in the reduction of the distance between the chips in a circuit board | ||
COVID-19 | Coronavirus 2019, an infectious disease that was declared a pandemic by the World Health Organization in March 2020 | ||
DNP | Dai Nippon Printing Co., Ltd. | ||
EUV | A wafer lithography technology using the industry standard extreme ultraviolet (EUV) wavelength. EUV photomasks function by selectively reflecting or blocking light, in contrast to conventional photomasks which function by selectively transmitting or blocking | ||
Exchange Act | The Securities Exchange Act of 1934 (as amended) | ||
FASB | Financial Accounting Standards Board | ||
Form 10-K | Annual Report on Form 10-K | ||
Form 10-Q | Quarterly Report on Form 10-Q | ||
FPDs | Flat-panel displays, or “displays” | ||
Generation | In reference to flat panel displays, refers to the size range of the underlying substrate to which a photomask is applied. Higher generation (or “G”) numbers represent larger substrates | ||
High-end (photomasks) | For IC, photomasks that are 28nm or smaller; for FPD, AMOLED, G10.5+, and LTPS | ||
ICs | Integrated circuits, or semiconductors | ||
LIBOR | London Inter-Bank Offered Rate | ||
LTPS | Low-Temperature Poly Silicon, a polycrystalline silicon synthesized at relatively low temperatures; polycrystalline silicon in thin-film transistors (TFTs) are used in liquid-crystal | ||
MLA | Master Lease Agreement | ||
Optical proximity correction | A photolithography enhancement technique applied to compensate for the limitations of light to maintain the edge placement integrity of an original design, after processing, into the etched image on a silicon wafer | ||
PDMCX | Xiamen American Japan Photronics Mask Co., Ltd., a joint venture of Photronics and | ||
Phase-shift photomasks | Photomasks that take advantage of the interference generated by phase differences to improve image resolution in photolithography | ||
RMB | Chinese renminbi | ||
ROU (assets) | Right-of-use asset | ||
SEC | Securities and Exchange Commission | ||
Securities Act | The Securities Act of 1933 (as amended) | ||
Sputtering | The bombardment of a material with energetic particles, to cause microscopic particles of the material to eject from its surface. | ||
U.S. GAAP | Accounting principles generally accepted in the United States of America | ||
Wafer | A wafer, or silicon wafer, is a thin slice of semiconductor material that, in the fabrication of microelectronics, serves as the substrate for microelectronic devices built in and upon the |
PART I. | FINANCIAL INFORMATION |
Item 1. | CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
August 1, 2021 | October 31, 2020 | May 1, 2022 | October 31, 2021 | |||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 283,249 | $ | 278,665 | $ | 329,282 | $ | 276,670 | ||||||||
Accounts receivable, net of allowance for credit losses of $1,331 in 2021 and $1,324 in 2020 | 151,190 | 134,470 | ||||||||||||||
Accounts receivable, net of allowance of $1,107 in 2022 and $1,218 in 2021 | 190,259 | 174,447 | ||||||||||||||
Inventories | 53,165 | 57,269 | 57,940 | 55,249 | ||||||||||||
Other current assets | 42,860 | 29,735 | 52,864 | 44,250 | ||||||||||||
Total current assets | 530,464 | 500,139 | 630,345 | 550,616 | ||||||||||||
Property, plant and equipment, net | 699,609 | 631,475 | 659,881 | 696,553 | ||||||||||||
Intangible assets, net | 904 | 3,437 | ||||||||||||||
Deferred income taxes | 23,691 | 22,070 | 23,731 | 24,353 | ||||||||||||
Other assets | 27,089 | 31,061 | 17,930 | 22,680 | ||||||||||||
Total assets | $ | 1,281,757 | $ | 1,188,182 | $ | 1,331,887 | $ | 1,294,202 | ||||||||
LIABILITIES AND EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Short-term debt | $ | 0 | $ | 4,708 | ||||||||||||
Current portion of long-term debt | 25,163 | 8,970 | $ | 12,410 | $ | 22,248 | ||||||||||
Accounts payable | 75,640 | 75,378 | 78,341 | 81,534 | ||||||||||||
Accrued liabilities | 66,814 | 53,883 | 95,720 | 72,366 | ||||||||||||
Total current liabilities | 167,617 | 142,939 | 186,471 | 176,148 | ||||||||||||
Long-term debt | 92,740 | 54,980 | 70,138 | 89,446 | ||||||||||||
Other liabilities | 26,939 | 27,997 | 25,048 | 28,046 | ||||||||||||
Total liabilities | 287,296 | 225,916 | 281,657 | 293,640 | ||||||||||||
Commitments and contingencies | 0 | 0 | 0 | 0 | ||||||||||||
Equity: | ||||||||||||||||
Preferred stock, $0.01 par value, 2,000 shares authorized, NaN issued and outstanding | 0 | 0 | 0 | 0 | ||||||||||||
Common stock, $0.01 par value, 150,000 shares authorized, 60,758 shares issued and outstanding at August 1, 2021, and 63,138 shares issued and outstanding at October 31, 2020 | 608 | 631 | ||||||||||||||
Common stock, $0.01 par value, 150,000 shares authorized, 60,637 shares issued and outstanding at May 1, 2022, and 60,024 shares issued and outstanding at October 31, 2021 | 606 | 600 | ||||||||||||||
Additional paid-in capital | 489,431 | 507,336 | 489,368 | 484,672 | ||||||||||||
Retained earnings | 302,971 | 279,037 | 367,344 | 317,849 | ||||||||||||
Accumulated other comprehensive income | 24,882 | 17,958 | ||||||||||||||
Accumulated other comprehensive (loss) income | (22,919 | ) | 20,571 | |||||||||||||
Total Photronics, Inc. shareholders' equity | 817,892 | 804,962 | ||||||||||||||
Total Photronics, Inc. shareholders’ equity | 834,399 | 823,692 | ||||||||||||||
Noncontrolling interests | 176,569 | 157,304 | 215,831 | 176,870 | ||||||||||||
Total equity | 994,461 | 962,266 | 1,050,230 | 1,000,562 | ||||||||||||
Total liabilities and equity | $ | 1,281,757 | $ | 1,188,182 | $ | 1,331,887 | $ | 1,294,202 |
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
August 1, 2021 | August 2, 2020 | August 1, 2021 | August 2, 2020 | May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||||||||||||||||
Revenue | $ | 170,643 | $ | 157,895 | $ | 482,473 | $ | 460,405 | $ | 204,509 | $ | 159,763 | $ | 394,336 | $ | 311,830 | ||||||||||||||||
Cost of goods sold | 125,318 | 120,161 | 367,370 | 357,636 | 134,289 | 120,514 | 264,253 | 242,052 | ||||||||||||||||||||||||
Gross profit | 45,325 | 37,734 | 115,103 | 102,769 | 70,220 | 39,249 | 130,083 | 69,778 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Selling, general and administrative | 15,083 | 13,306 | 43,203 | 40,792 | 16,613 | 14,067 | 32,340 | 28,120 | ||||||||||||||||||||||||
Research and development | 5,305 | 4,492 | 14,390 | 13,034 | 4,206 | 4,375 | 10,145 | 9,085 | ||||||||||||||||||||||||
Total operating expenses | 20,388 | 17,798 | 57,593 | 53,826 | 20,819 | 18,442 | 42,485 | 37,205 | ||||||||||||||||||||||||
Other operating income, net | 3,525 | 0 | 3,525 | 0 | ||||||||||||||||||||||||||||
Operating income | 28,462 | 19,936 | 61,035 | 48,943 | 49,401 | 20,807 | 87,598 | 32,573 | ||||||||||||||||||||||||
Other non-operating income (expense): | ||||||||||||||||||||||||||||||||
Non-operating income (expense): | ||||||||||||||||||||||||||||||||
Foreign currency transactions impact, net | 4,301 | (1,565 | ) | 3,627 | 1,739 | 7,844 | (2,055 | ) | 13,112 | (674 | ) | |||||||||||||||||||||
Interest expense, net | (1,060 | ) | (586 | ) | (637 | ) | (1,609 | ) | ||||||||||||||||||||||||
Interest income and other income (expense), net | 494 | 16 | 653 | 480 | ||||||||||||||||||||||||||||
Interest expense, net of subsidies | 15 | 1,246 | (880 | ) | 423 | |||||||||||||||||||||||||||
Interest income and other income and expense, net | 162 | 37 | 496 | 159 | ||||||||||||||||||||||||||||
Income before income tax provision | 32,197 | 17,801 | 64,678 | 49,553 | 57,422 | 20,035 | 100,326 | 32,481 | ||||||||||||||||||||||||
Income tax provision | 7,842 | 4,937 | 14,493 | 17,789 | 14,393 | 3,714 | 25,571 | 6,651 | ||||||||||||||||||||||||
Net income | 24,355 | 12,864 | 50,185 | 31,764 | 43,029 | 16,321 | 74,755 | 25,830 | ||||||||||||||||||||||||
Net income attributable to noncontrolling interests | 7,279 | 2,088 | 14,547 | 4,404 | 15,597 | 5,795 | 24,259 | 7,268 | ||||||||||||||||||||||||
Net income attributable to Photronics, Inc. shareholders | $ | 17,076 | $ | 10,776 | $ | 35,638 | $ | 27,360 | $ | 27,432 | $ | 10,526 | $ | 50,496 | $ | 18,562 | ||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.28 | $ | 0.17 | $ | 0.58 | $ | 0.42 | $ | 0.45 | $ | 0.17 | $ | 0.84 | $ | 0.30 | ||||||||||||||||
Diluted | $ | 0.28 | $ | 0.17 | $ | 0.57 | $ | 0.42 | $ | 0.45 | $ | 0.17 | $ | 0.83 | $ | 0.30 | ||||||||||||||||
Weighted-average number of common shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 60,884 | 64,780 | 61,804 | 65,090 | 60,606 | 62,054 | 60,382 | 62,265 | ||||||||||||||||||||||||
Diluted | 61,515 | 65,247 | 62,362 | 65,704 | 61,145 | 62,568 | 61,041 | 62,786 |
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
August 1, 2021 | August 2, 2020 | August 1, 2021 | August 2, 2020 | May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||||||||||||||||
Net income | $ | 24,355 | $ | 12,864 | $ | 50,185 | $ | 31,764 | $ | 43,029 | $ | 16,321 | $ | 74,755 | $ | 25,830 | ||||||||||||||||
Other comprehensive (loss) income, net of tax of $0: | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (10,482 | ) | 10,659 | 11,584 | 6,689 | (44,118 | ) | 3,778 | (53,949 | ) | 22,066 | |||||||||||||||||||||
Other | 37 | 4 | 58 | 23 | 129 | 21 | 166 | 21 | ||||||||||||||||||||||||
Net other comprehensive (loss) income | (10,445 | ) | 10,663 | 11,642 | 6,712 | (43,989 | ) | 3,799 | (53,783 | ) | 22,087 | |||||||||||||||||||||
Comprehensive income | 13,910 | 23,527 | 61,827 | 38,476 | ||||||||||||||||||||||||||||
Comprehensive (loss) income | (960) | 20,120 | 20,972 | 47,917 | ||||||||||||||||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | 7,144 | 3,979 | 19,265 | 8,539 | 5,092 | 6,431 | 13,966 | 12,121 | ||||||||||||||||||||||||
Comprehensive income attributable to Photronics, Inc. shareholders | $ | 6,766 | $ | 19,548 | $ | 42,562 | $ | 29,937 | ||||||||||||||||||||||||
Comprehensive (loss) income attributable to Photronics, Inc. shareholders | $ | (6,052 | ) | $ | 13,689 | $ | 7,006 | $ | 35,796 |
Three Months Ended August 1, 2021 | Three Months Ended May 1, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Photronics, Inc. Shareholders | Photronics, Inc. Shareholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income | Non- controlling Interests | Total Equity | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at May 2, 2021 | 63,606 | $ | 636 | $ | 511,215 | $ | 297,599 | $ | (23,250 | ) | $ | 35,192 | $ | 169,425 | $ | 990,817 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 30, 2022 | 60,564 | $ | 606 | $ | 487,342 | $ | 339,912 | $ | 0 | $ | 10,565 | $ | 200,741 | $ | 1,039,166 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | - | 0 | 0 | 17,076 | 0 | 0 | 7,279 | 24,355 | - | 0 | 0 | 27,432 | 0 | 0 | 15,597 | 43,029 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | - | 0 | 0 | 0 | 0 | (10,310 | ) | (135 | ) | (10,445 | ) | - | 0 | 0 | 0 | 0 | (33,484 | ) | (10,505 | ) | (43,989 | ) | ||||||||||||||||||||||||||||||||||||||||||
Shares issued under equity plans | 135 | 2 | 921 | 0 | 0 | 0 | 0 | 923 | 73 | 0 | 442 | 0 | 0 | 0 | 0 | 442 | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | - | 0 | 1,311 | 0 | 0 | 0 | 0 | 1,311 | - | 0 | 1,584 | 0 | 0 | 0 | 0 | 1,584 | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | (12,500 | ) | 0 | 0 | (12,500 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement of treasury stock | (2,983 | ) | (30 | ) | (24,016 | ) | (11,704 | ) | 35,750 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Contribution from noncontrolling interest | - | 0 | 0 | 0 | 0 | 0 | 9,998 | 9,998 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at August 1, 2021 | 60,758 | $ | 608 | $ | 489,431 | $ | 302,971 | $ | 0 | $ | 24,882 | $ | 176,569 | $ | 994,461 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at May 1, 2022 | 60,637 | $ | 606 | $ | 489,368 | $ | 367,344 | $ | 0 | $ | (22,919 | ) | $ | 215,831 | $ | 1,050,230 |
Three Months Ended August 2, 2020 | Three Months Ended May 2, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Photronics, Inc. Shareholders | Photronics, Inc. Shareholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in | Retained | Treasury | Accumulated Other Comprehensive | Non- controlling | Total | Common Stock | Additional Paid-in | Retained | Treasury | Accumulated Other Comprehensive | Non- controlling | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Stock | Loss | Interests | Equity | Shares | Amount | Capital | Earnings | Stock | Income | Interests | Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at May 3, 2020 | 66,215 | $ | 662 | $ | 530,117 | $ | 270,506 | $ | (16,894 | ) | $ | (15,200 | ) | $ | 152,467 | $ | 921,658 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 31, 2021 | 63,506 | $ | 635 | $ | 508,974 | $ | 287,073 | $ | (13,209 | ) | $ | 32,029 | $ | 162,994 | $ | 978,496 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | - | 0 | 0 | 10,776 | 0 | 0 | 2,088 | 12,864 | - | 0 | 0 | 10,526 | 0 | 0 | 5,795 | 16,321 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | - | 0 | 0 | 0 | 0 | 8,772 | 1,891 | 10,663 | - | 0 | 0 | 0 | 0 | 3,163 | 636 | 3,799 | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under equity plans | 61 | 1 | 306 | 0 | 0 | 0 | 0 | 307 | 100 | 1 | 819 | 0 | 0 | 0 | 0 | 820 | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | - | 0 | 1,196 | 0 | 0 | 0 | 0 | 1,196 | - | 0 | 1,422 | 0 | 0 | 0 | 0 | 1,422 | ||||||||||||||||||||||||||||||||||||||||||||||||
Contribution from noncontrolling interest | - | 0 | 0 | 0 | 0 | 0 | 9,997 | 9,997 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | (10,041 | ) | 0 | 0 | (10,041 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at August 2, 2020 | 66,276 | $ | 663 | $ | 531,619 | $ | 281,282 | $ | (16,894 | ) | $ | (6,428 | ) | $ | 166,443 | $ | 956,685 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at May 2, 2021 | 63,606 | $ | 636 | $ | 511,215 | $ | 297,599 | $ | (23,250 | ) | $ | 35,192 | $ | 169,425 | $ | 990,817 |
Six Months Ended May 1, 2022 | ||||||||||||||||||||||||||||||||
Photronics, Inc. Shareholders | ||||||||||||||||||||||||||||||||
Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interests | Total Equity | |||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||
Balance at October 31, 2021 | 60,024 | $ | 600 | $ | 484,672 | $ | 317,849 | $ | 0 | $ | 20,571 | $ | 176,870 | $ | 1,000,562 | |||||||||||||||||
Net income | - | 0 | 0 | 50,496 | 0 | 0 | 24,259 | 74,755 | ||||||||||||||||||||||||
Other comprehensive loss | - | 0 | 0 | 0 | 0 | (43,490 | ) | (10,293 | ) | (53,783 | ) | |||||||||||||||||||||
Shares issued under equity plans | 801 | 7 | 3,175 | 0 | 0 | 0 | 0 | 3,182 | ||||||||||||||||||||||||
Share-based compensation expense | - | 0 | 3,041 | 0 | 0 | 0 | 0 | 3,041 | ||||||||||||||||||||||||
Contribution from noncontrolling interest | - | 0 | 0 | 0 | 0 | 0 | 24,995 | 24,995 | ||||||||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | (2,522 | ) | 0 | 0 | (2,522 | ) | ||||||||||||||||||||||
Retirement of treasury stock | (188 | ) | (1 | ) | (1,520 | ) | (1,001 | ) | 2,522 | 0 | 0 | 0 | ||||||||||||||||||||
Balance at May 1, 2022 | 60,637 | $ | 606 | $ | 489,368 | $ | 367,344 | $ | 0 | $ | (22,919 | ) | $ | 215,831 | $ | 1,050,230 |
Nine Months Ended August 1, 2021 | ||||||||||||||||||||||||||||||||
Photronics, Inc. Shareholders | ||||||||||||||||||||||||||||||||
Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income | Non- controlling Interests | Total Equity | |||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||
Balance at October 31, 2020 | 63,138 | $ | 631 | $ | 507,336 | $ | 279,037 | $ | 0 | $ | 17,958 | $ | 157,304 | $ | 962,266 | |||||||||||||||||
Net income | - | 0 | 0 | 35,638 | 0 | 0 | 14,547 | 50,185 | ||||||||||||||||||||||||
Other comprehensive income | - | 0 | 0 | 0 | 0 | 6,924 | 4,718 | 11,642 | ||||||||||||||||||||||||
Shares issued under equity plans | 603 | 7 | 2,077 | 0 | 0 | 0 | 0 | 2,084 | ||||||||||||||||||||||||
Share-based compensation expense | - | 0 | 4,034 | 0 | 0 | 0 | 0 | 4,034 | ||||||||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | (35,750 | ) | 0 | 0 | (35,750 | ) | ||||||||||||||||||||||
Retirement of treasury stock | (2,983 | ) | (30 | ) | (24,016 | ) | (11,704 | ) | 35,750 | 0 | 0 | 0 | ||||||||||||||||||||
Balance at August 1, 2021 | 60,758 | $ | 608 | $ | 489,431 | $ | 302,971 | $ | 0 | $ | 24,882 | $ | 176,569 | $ | 994,461 |
Nine Months Ended August 2, 2020 | Six Months Ended May 2, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Photronics, Inc. Shareholders | Photronics, Inc. Shareholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in | Retained | Treasury | Accumulated Other Comprehensive | Non- controlling | Total | Common Stock | Additional Paid-in | Retained | Treasury | Accumulated Other Comprehensive | Non- controlling | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Stock | Loss | Interests | Equity | Shares | Amount | Capital | Earnings | Stock | Income | Interests | Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at October 31, 2019 | 65,595 | $ | 656 | $ | 524,319 | $ | 253,922 | $ | 0 | $ | (9,005 | ) | $ | 141,200 | $ | 911,092 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at October 31, 2020 | 63,138 | $ | 631 | $ | 507,336 | $ | 279,037 | $ | 0 | $ | 17,958 | $ | 157,304 | $ | 962,266 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | - | 0 | 0 | 27,360 | 0 | 0 | 4,404 | 31,764 | - | 0 | 0 | 18,562 | 0 | 0 | 7,268 | 25,830 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | - | 0 | 0 | 0 | 0 | 2,577 | 4,135 | 6,712 | - | 0 | 0 | 0 | 0 | 17,234 | 4,853 | 22,087 | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under equity plans | 681 | 7 | 3,272 | 0 | 0 | 0 | 0 | 3,279 | 468 | 5 | 1,156 | 0 | 0 | 0 | 0 | 1,161 | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | - | 0 | 3,773 | 0 | 0 | 0 | 0 | 3,773 | - | 0 | 2,723 | 0 | 0 | 0 | 0 | 2,723 | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | 0 | 0 | 0 | (16,894 | ) | 0 | 0 | (16,894 | ) | - | 0 | 0 | 0 | (23,250 | ) | 0 | 0 | (23,250 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Contribution from noncontrolling interest | - | 0 | 0 | 0 | 0 | 0 | 17,596 | 17,596 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock of subsidiary | - | 0 | 255 | 0 | 0 | 0 | (892 | ) | (637 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at August 2, 2020 | 66,276 | $ | 663 | $ | 531,619 | $ | 281,282 | $ | (16,894 | ) | $ | (6,428 | ) | $ | 166,443 | $ | 956,685 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at May 2, 2021 | 63,606 | $ | 636 | $ | 511,215 | $ | 297,599 | $ | (23,250 | ) | $ | 35,192 | $ | 169,425 | $ | 990,817 |
Nine Months Ended | Six Months Ended | |||||||||||||||
August 1, 2021 | August 2, 2020 | May 1, 2022 | May 2, 2021 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 50,185 | $ | 31,764 | $ | 74,755 | $ | 25,830 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 69,305 | 71,120 | 41,405 | 47,121 | ||||||||||||
Share-based compensation | 4,034 | 3,773 | 3,041 | 2,723 | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Accounts receivable | (13,854 | ) | (9,476 | ) | (25,122 | ) | (5,655 | ) | ||||||||
Inventories | 5,073 | (6,155 | ) | (5,081 | ) | 2,266 | ||||||||||
Other current assets | (12,280 | ) | (12,381 | ) | (10,858 | ) | (8,591 | ) | ||||||||
Accounts payable, accrued liabilities, and other | 10,633 | (381 | ) | 25,149 | (5,475 | ) | ||||||||||
Net cash provided by operating activities | 113,096 | 78,264 | 103,289 | 58,219 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchases of property, plant and equipment | (92,301 | ) | (36,693 | ) | (34,809 | ) | (73,516 | ) | ||||||||
Government incentives | 5,775 | 5,263 | 1,394 | 5,775 | ||||||||||||
Purchases of intangible assets | (170 | ) | (139 | ) | ||||||||||||
Other | (199 | ) | (157 | ) | ||||||||||||
Net cash used in investing activities | (86,696 | ) | (31,569 | ) | (33,614 | ) | (67,898 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from debt | 20,858 | 5,699 | ||||||||||||||
Repayments of debt | (27,571 | ) | (8,636 | ) | ||||||||||||
Purchases of treasury stock | (35,750 | ) | (16,894 | ) | (2,522 | ) | (23,250 | ) | ||||||||
Repayments of debt | (13,311 | ) | (5,929 | ) | ||||||||||||
Contribution from noncontrolling interest | 0 | 17,596 | 24,995 | 0 | ||||||||||||
Proceeds from share-based arrangements | 2,251 | 3,869 | 4,384 | 1,180 | ||||||||||||
Proceeds from long-term debt | 0 | 12,439 | ||||||||||||||
Net settlements of restricted stock awards | (403 | ) | (248 | ) | (1,452 | ) | (371 | ) | ||||||||
Net cash (used in) provided by financing activities | (26,355 | ) | 4,093 | |||||||||||||
Net cash used in financing activities | (2,166 | ) | (18,638 | ) | ||||||||||||
Effects of exchange rate changes on cash, cash equivalents, and restricted cash | 4,602 | 3,486 | (14,917 | ) | 5,686 | |||||||||||
Net increase in cash, cash equivalents, and restricted cash | 4,647 | 54,274 | ||||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 52,592 | (22,631 | ) | |||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 281,602 | 209,291 | 279,680 | 281,602 | ||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 286,249 | $ | 263,565 | 332,272 | 258,971 | ||||||||||
Less: Ending restricted cash | 2,990 | 3,006 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 329,282 | $ | 255,965 | ||||||||||||
Supplemental disclosures of non-cash information: | ||||||||||||||||
Accruals for property, plant and equipment purchased during the period | $ | 7,367 | $ | 34,356 | $ | 5,737 | $ | 20,533 |
August 1, 2021 | October 31, 2020 | |||||||
Cash and cash equivalents | $ | 283,249 | $ | 278,665 | ||||
Restricted Cash | 3,000 | 2,937 | ||||||
$ | 286,249 | $ | 281,602 |
August 1, 2021 | October 31, 2020 | |||||||
Raw materials | $ | 51,713 | $ | 56,389 | ||||
Work in process | 1,223 | 767 | ||||||
Finished goods | 229 | 113 | ||||||
$ | 53,165 | $ | 57,269 |
May 1, 2022 | October 31, 2021 | |||||||
Raw materials | $ | 54,501 | $ | 54,019 | ||||
Work in process | 3,398 | 1,121 | ||||||
Finished goods | 41 | 109 | ||||||
$ | 57,940 | $ | 55,249 |
May 1, 2022 | October 31, 2021 | |||||||||||||||
August 1, 2021 | October 31, 2020 | |||||||||||||||
Land | $ | 12,518 | $ | 12,422 | $ | 11,927 | $ | 12,442 | ||||||||
Buildings and improvements | 181,842 | 179,162 | 176,559 | 181,922 | ||||||||||||
Machinery and equipment | 1,966,038 | 1,812,791 | 1,873,926 | 1,961,474 | ||||||||||||
Leasehold improvements | 21,672 | 21,157 | 20,540 | 21,751 | ||||||||||||
Furniture, fixtures and office equipment | 15,811 | 15,665 | 15,210 | 15,534 | ||||||||||||
Construction in progress | 31,839 | 70,915 | 49,714 | 35,009 | ||||||||||||
2,229,720 | 2,112,112 | 2,147,876 | 2,228,132 | |||||||||||||
Accumulated depreciation and amortization | (1,530,111 | ) | (1,480,637 | ) | (1,487,995 | ) | (1,531,579 | ) | ||||||||
$ | 699,609 | $ | 631,475 | $ | 659,881 | $ | 696,553 |
May 1, 2022 | October 31, 2021 | |||||||||||||||
August 1, 2021 | October 31, 2020 | |||||||||||||||
Machinery and equipment | $ | 42,760 | $ | 0 | $ | 42,760 | $ | 42,760 | ||||||||
Accumulated amortization | (1,223 | ) | 0 | (3,355 | ) | (1,933 | ) | |||||||||
$ | 41,537 | $ | 0 | $ | 39,405 | $ | 40,827 |
Three Months Ended | Six Months Ended | |||||||||||||||
May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||||
Depreciation and amortization expense | $ | 20,506 | $ | 22,271 | $ | 41,229 | $ | 44,857 |
Three Months Ended | Six Months Ended | |||||||||||||||
May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||||
Net income from PDMCX | $ | 4,895 | $ | 2,256 | $ | 6,772 | $ | 2,194 |
August 1, 2021 | October 31, 2020 | |||||||||||||||
Classification | Carrying Amount | Photronics Interest | Carrying Amount | Photronics Interest | ||||||||||||
Current assets | $ | 56,060 | $ | 28,036 | $ | 56,095 | $ | 28,053 | ||||||||
Non-current assets | 138,072 | 69,050 | 141,097 | 70,562 | ||||||||||||
Total assets | 194,132 | 97,086 | 197,192 | 98,615 | ||||||||||||
Current liabilities | 30,233 | 15,119 | 31,922 | 15,964 | ||||||||||||
Non-current liabilities | 42,080 | 21,044 | 55,676 | 27,844 | ||||||||||||
Total liabilities | 72,313 | 36,163 | 87,598 | 43,808 | ||||||||||||
Net assets | $ | 121,819 | $ | 60,923 | $ | 109,594 | $ | 54,807 |
May 1, 2022 | October 31, 2021 | |||||||||||||||
Classification | Carrying Amount | Photronics Interest | Carrying Amount | Photronics Interest | ||||||||||||
Current assets | $ | 117,292 | $ | 58,658 | $ | 59,745 | $ | 29,879 | ||||||||
Noncurrent assets | 134,914 | 67,469 | 137,799 | 68,913 | ||||||||||||
Total assets | 252,206 | 126,127 | 197,544 | 98,792 | ||||||||||||
Current liabilities | 37,439 | 18,723 | 26,559 | 13,282 | ||||||||||||
Noncurrent liabilities | 29,613 | 14,809 | 42,917 | 21,463 | ||||||||||||
Total liabilities | 67,052 | 33,532 | 69,476 | 34,745 | ||||||||||||
Net assets | $ | 185,154 | $ | 92,595 | $ | 128,068 | $ | 64,047 |
As of August 1, 2021 | Xiamen Project Loans | Xiamen Working Capital Loans | Hefei Equipment Loan | Finance Leases | Total | |||||||||||||||||||||||||||||||||||
As of May 1, 2022 | Xiamen Project Loans | Xiamen Working Capital Loans | Hefei Equipment Loan | Finance Leases | Total | |||||||||||||||||||||||||||||||||||
Principal due: | ||||||||||||||||||||||||||||||||||||||||
Next 12 months | $ | 7,615 | $ | 8,108 | $ | 2,321 | $ | 7,119 | $ | 25,163 | $ | 0 | $ | 969 | $ | 4,540 | $ | 6,901 | $ | 12,410 | ||||||||||||||||||||
Months 13 – 24 | $ | 9,961 | $ | 3,961 | $ | 4,642 | $ | 6,487 | $ | 25,051 | $ | 6,266 | $ | 3,390 | $ | 4,540 | $ | 6,560 | $ | 20,756 | ||||||||||||||||||||
Months 25 – 36 | 10,165 | 0 | 4,642 | 6,585 | 21,392 | 9,837 | 0 | 7,567 | 21,279 | 38,683 | ||||||||||||||||||||||||||||||
Months 37 – 48 | 9,794 | 0 | 7,736 | 19,623 | 37,153 | 9,080 | 0 | 1,619 | 0 | 10,699 | ||||||||||||||||||||||||||||||
Months 49 – 60 | 7,489 | 0 | 1,655 | 0 | 9,144 | |||||||||||||||||||||||||||||||||||
Long-term debt | $ | 37,409 | $ | 3,961 | $ | 18,675 | $ | 32,695 | $ | 92,740 | $ | 25,183 | $ | 3,390 | $ | 13,726 | $ | 27,839 | $ | 70,138 | ||||||||||||||||||||
Total debt | $ | 25,183 | $ | 4,359 | $ | 18,266 | $ | 34,740 | $ | 82,548 | ||||||||||||||||||||||||||||||
Interest rate at balance sheet date | 4.65 | % | 4.53% - 4.61 | % | 4.20 | % | 0 | (3) | 4.60 | % | 4.61 | % | 4.20 | % | (3) | |||||||||||||||||||||||||
Basis spread on interest rates | 0.00 | 67.75 - 76.00 | (45.00 | ) | N/A | 0.00 | 76.00 | (45.00 | ) | N/A | ||||||||||||||||||||||||||||||
Interest rate reset | Quarterly | Monthly/Annually | Annually | N/A | Quarterly | Monthly/Annually | Annually | N/A | ||||||||||||||||||||||||||||||||
Maturity date | December 2025 | July 2023 | September 2026 | 0 | (3) | December 2025 | July 2023 | September 2025 | (3) | |||||||||||||||||||||||||||||||
Periodic payment amount | Increases as loans mature | Increases as loans mature | Varies (1) | 0 | (3) | Varies as loans mature | Increases as loans mature | Varies (1) | (3) | |||||||||||||||||||||||||||||||
Periodic payment frequency | Semiannual, on individual loans | Semiannual, on individual loans | Semiannual(2) | Monthly | Semiannual, on individual loans | Semiannual, on individual loans | Semiannual(2) | Monthly | ||||||||||||||||||||||||||||||||
Loan collateral (carrying amount) | $ | 91,277 | N/A | $ | 86,892 | $ | 41,537 | (4) | $ | 82,920 | N/A | $ | 81,024 | $ | 39,405 | (4) |
As of October 31, 2020 | Xiamen Project Loans | Xiamen Working Capital Loans | Total | |||||||||
Principal due: | ||||||||||||
Next 12 months | $ | 6,705 | $ | 2,265 | $ | 8,970 | ||||||
Months 13 – 24 | $ | 7,334 | $ | 7,808 | $ | 15,142 | ||||||
Months 25 – 36 | 9,592 | 3,814 | 13,406 | |||||||||
Months 37 – 48 | 9,789 | 0 | 9,789 | |||||||||
Months 49 – 60 | 9,432 | 0 | 9,432 | |||||||||
Thereafter | 7,211 | 0 | 7,211 | |||||||||
Long-term debt | $ | 43,358 | $ | 11,622 | $ | 54,980 | ||||||
Interest rate at balance sheet date | 4.90 | % | 4.53% - 4.61 | % | ||||||||
Basis spread on interest rates | 25.00 | 40.00 - 76.00 | ||||||||||
Loan collateral (carrying amount) | $ | 94,459 | N/A |
As of October 31, 2021 | Xiamen Project Loans | Xiamen Working Capital Loans | Hefei Equipment Loan | Finance Leases | Total | |||||||||||||||
Principal due: | ||||||||||||||||||||
Next 12 months | $ | 2,068 | $ | 8,197 | $ | 4,694 | $ | 7,289 | $ | 22,248 | ||||||||||
Months 13 – 24 | $ | 10,071 | $ | 4,005 | $ | 4,693 | $ | 6,512 | $ | 25,281 | ||||||||||
Months 25 – 36 | 10,278 | 0 | 6,257 | 6,610 | 23,145 | |||||||||||||||
Months 37 – 48 | 9,902 | 0 | 5,585 | 17,961 | 33,448 | |||||||||||||||
Months 49 – 60 | 7,572 | 0 | 0 | 0 | 7,572 | |||||||||||||||
Long-term debt | $ | 37,823 | $ | 4,005 | $ | 16,535 | $ | 31,083 | $ | 89,446 | ||||||||||
Total | $ | 39,891 | $ | 12,202 | $ | 21,229 | $ | 38,372 | $ | 111,694 | ||||||||||
Interest rate at balance sheet date | 4.65 | % | 4.53% - 4.61 | % | 4.20 | % | (3) | |||||||||||||
Basis spread on interest rates | 0.00 | 67.75 - 76.00 | (45.00 | ) | N/A | |||||||||||||||
Interest rate reset | Quarterly | Monthly/Annually | Annually | N/A | ||||||||||||||||
Maturity date | December 2025 | July 2023 | September 2025 | (3) | ||||||||||||||||
Periodic payment amount | Varies as loans mature | Increases as loans mature | Varies(1) | (3) | ||||||||||||||||
Periodic payment frequency | Semiannual, on individual loans | Semiannual, on individual loans | Semiannual(2) | Monthly | ||||||||||||||||
Loan collateral (carrying amount) | $ | 90,096 | N/A | $ | 86,487 | $ | 40,826 | (4) |
Classification | May 1, 2022 | October 31, 2021 | ||||||
Contract assets | ||||||||
Other current assets | $ | 13,815 | $ | 9,859 | ||||
Contract liabilities | ||||||||
Accrued liabilities | $ | 25,613 | $ | 14,717 | ||||
Other liabilities | 5,204 | 5,197 | ||||||
$ | 30,817 | $ | 19,914 |
Three Months Ended | Six Months Ended | |||||||||||||||
May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||||
Revenue recognized from beginning liability | $ | 11,460 | $ | 1,333 | $ | 7,278 | $ | 3,829 |
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
August 1, 2021 | August 2, 2020 | August 1, 2021 | August 2, 2020 | May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||||||||||||||||
Revenue by Product Type | ||||||||||||||||||||||||||||||||
IC | ||||||||||||||||||||||||||||||||
High-end | $ | 42,351 | $ | 38,665 | $ | 120,390 | $ | 117,974 | $ | 51,362 | $ | 41,259 | $ | 97,896 | $ | 78,039 | ||||||||||||||||
Mainstream | 75,423 | 70,001 | 214,332 | 194,517 | 94,437 | 70,732 | 177,664 | 138,908 | ||||||||||||||||||||||||
Total IC | $ | 117,774 | $ | 108,666 | $ | 334,722 | $ | 312,491 | $ | 145,799 | $ | 111,991 | $ | 275,560 | $ | 216,947 | ||||||||||||||||
FPD | ||||||||||||||||||||||||||||||||
High-end | $ | 40,640 | $ | 36,670 | $ | 114,685 | $ | 108,248 | $ | 46,610 | $ | 39,401 | $ | 92,886 | $ | 74,046 | ||||||||||||||||
Mainstream | 12,229 | 12,559 | 33,066 | 39,666 | 12,100 | 8,371 | 25,890 | 20,837 | ||||||||||||||||||||||||
Total FPD | $ | 52,869 | $ | 49,229 | $ | 147,751 | $ | 147,914 | $ | 58,710 | $ | 47,772 | $ | 118,776 | $ | 94,883 | ||||||||||||||||
$ | 170,643 | $ | 157,895 | $ | 482,473 | $ | 460,405 | $ | 204,509 | $ | 159,763 | $ | 394,336 | $ | 311,830 |
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
August 1, 2021 | August 2, 2020 | August 1, 2021 | August 2, 2020 | May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||||||||||||||||
Revenue by Geography * | ||||||||||||||||||||||||||||||||
Revenue by Geographic Origin* | ||||||||||||||||||||||||||||||||
Taiwan | $ | 63,849 | $ | 60,836 | $ | 179,441 | $ | 182,463 | $ | 69,852 | $ | 59,002 | $ | 137,693 | $ | 115,592 | ||||||||||||||||
China | 53,691 | 23,730 | 99,645 | 44,727 | ||||||||||||||||||||||||||||
Korea | 39,575 | 39,488 | 118,597 | 116,485 | 40,769 | 40,239 | 80,283 | 79,022 | ||||||||||||||||||||||||
United States | 24,693 | 28,351 | 78,447 | 78,276 | 30,335 | 27,150 | 57,511 | 53,754 | ||||||||||||||||||||||||
China | 32,664 | 20,988 | 77,391 | 58,374 | ||||||||||||||||||||||||||||
Europe | 9,437 | 7,688 | 27,269 | 23,562 | 9,506 | 9,256 | 18,420 | 17,832 | ||||||||||||||||||||||||
Other | 425 | 544 | 1,328 | 1,245 | 356 | 386 | 784 | 903 | ||||||||||||||||||||||||
$ | 170,643 | $ | 157,895 | $ | 482,473 | $ | 460,405 | $ | 204,509 | $ | 159,763 | $ | 394,336 | $ | 311,830 |
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
August 1, 2021 | August 2, 2020 | August 1, 2021 | August 2, 2020 | May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||||||||||||||||
Revenue by Timing of Recognition | ||||||||||||||||||||||||||||||||
Over time | $ | 157,941 | $ | 137,442 | $ | 443,923 | $ | 401,347 | $ | 192,770 | $ | 144,697 | $ | 363,034 | $ | 285,982 | ||||||||||||||||
At a point in time | 12,702 | 20,453 | 38,550 | 59,058 | 11,739 | 15,066 | 31,302 | 25,848 | ||||||||||||||||||||||||
$ | 170,643 | $ | 157,895 | $ | 482,473 | $ | 460,405 | $ | 204,509 | $ | 159,763 | $ | 394,336 | $ | 311,830 |
Classification | August 1, 2021 | October 31, 2020 | May 1, 2022 | October 31, 2021 | ||||||||||||
ROU Assets – Operating Leases | ||||||||||||||||
Other assets | $ | 6,238 | $ | 7,706 | $ | 4,191 | $ | 5,581 | ||||||||
ROU Assets – Finance Leases | ||||||||||||||||
Property, plant and equipment, net | $ | 41,537 | $ | 0 | $ | 39,405 | $ | 40,827 | ||||||||
Lease Liabilities – Operating Leases | ||||||||||||||||
Accrued liabilities | $ | 2,258 | $ | 2,175 | $ | 1,850 | $ | 2,273 | ||||||||
Other liabilities | 3,786 | 5,008 | 2,280 | 3,246 | ||||||||||||
$ | 6,044 | $ | 7,183 | $ | 4,130 | $ | 5,519 | |||||||||
Lease Liabilities – Finance Leases | ||||||||||||||||
Current portion of long-term debt | $ | 7,119 | $ | 0 | $ | 6,901 | $ | 7,289 | ||||||||
Long-term debt | 32,695 | 0 | 27,839 | 31,083 | ||||||||||||
$ | 39,814 | $ | 0 | $ | 34,740 | $ | 38,372 |
Operating Leases | Finance Leases | |||||||
Remainder of fiscal year 2021 | $ | 585 | $ | 2,174 | ||||
2022 | 2,338 | 7,231 | ||||||
2023 | 1,363 | 6,938 | ||||||
2024 | 810 | 6,938 | ||||||
2025 | 647 | 18,013 | ||||||
Thereafter | 559 | 0 | ||||||
Total lease payments | 6,302 | 41,294 | ||||||
Imputed interest | 258 | 1,480 | ||||||
Lease liabilities | $ | 6,044 | $ | 39,814 |
Operating Leases | Finance Leases | |||||||
Remainder of fiscal year 2022 | $ | 1,092 | $ | 3,947 | ||||
2023 | 1,297 | 6,938 | ||||||
2024 | 773 | 6,938 | ||||||
2025 | 608 | 18,013 | ||||||
2026 | 373 | 0 | ||||||
Thereafter | 144 | 0 | ||||||
Total lease payments | 4,287 | 35,836 | ||||||
Imputed interest | (157 | ) | (1,096 | ) | ||||
Lease liabilities | $ | 4,130 | $ | 34,740 |
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
August 1, 2021 | August 2, 2020 | August 1, 2021 | August 2, 2020 | May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||||||||||||||||
Operating lease costs | $ | 802 | $ | 663 | $ | 2,190 | $ | 2,459 | $ | 569 | $ | 724 | $ | 1,158 | $ | 1,389 | ||||||||||||||||
Short-term lease costs | $ | 80 | $ | 43 | $ | 166 | $ | 255 | $ | 142 | $ | 39 | $ | 263 | $ | 86 | ||||||||||||||||
Variable lease costs | $ | 54 | $ | 131 | $ | 355 | $ | 259 | $ | 153 | $ | 157 | $ | 276 | $ | 301 | ||||||||||||||||
Interest on lease liabilities | $ | 160 | $ | 0 | $ | 361 | $ | 0 | ||||||||||||||||||||||||
Interest on finance lease liabilities | $ | 92 | $ | 166 | $ | 230 | $ | 201 | ||||||||||||||||||||||||
Amortization of ROU assets | $ | 711 | $ | 0 | $ | 1,156 | $ | 0 | $ | 711 | $ | 455 | $ | 1,421 | $ | 455 |
August 1, 2021 | October 31, 2020 | May 1, 2022 | October 31, 2021 | |||||||||||||||||||||||||||||
Classification | Weighted-average remaining lease term (in years) | Weighted-average discount rate | Weighted-average remaining lease term (in years) | Weighted-average discount rate | Weighted-average remaining lease term (in years) | Weighted-average discount rate | Weighted-average remaining lease term (in years) | Weighted-average discount rate | ||||||||||||||||||||||||
Operating leases | 3.6 | 2.35 | % | 4.1 | 2.37 | % | 3.3 | 2.4 | % | 3.5 | 2.4 | % | ||||||||||||||||||||
Finance leases | 3.7 | 1.50 | % | - | 0 | 2.7 | 1.5 | % | 3.3 | 1.5 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||
August 1, 2021 | August 2, 2020 | August 1, 2021 | August 2, 2020 | |||||||||||||
Operating cash flows used for operating leases | $ | 615 | $ | 621 | $ | 1,844 | $ | 3,008 | ||||||||
Operating cash flows used for finance leases | $ | 168 | $ | 0 | $ | 344 | $ | 0 | ||||||||
Financing cash flows used for finance leases | $ | 2,018 | $ | 0 | $ | 2,882 | $ | 0 | ||||||||
ROU assets obtained in exchange for operating lease obligations | $ | 50 | $ | 2,098 | $ | 417 | $ | 2,438 | ||||||||
ROU assets obtained in exchange for finance lease obligations | $ | 0 | $ | 0 | $ | 42,672 | $ | 0 |
Three Months Ended | Six Months Ended | |||||||||||||||
May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||||
Operating cash flows used for operating leases | $ | 589 | $ | 627 | $ | 1,150 | $ | 1,229 | ||||||||
Operating cash flows used for finance leases | $ | 134 | $ | 166 | $ | 277 | $ | 201 | ||||||||
Financing cash flows used for finance leases | $ | 1,601 | $ | 864 | $ | 3,632 | $ | 864 | ||||||||
ROU assets obtained in exchange for operating lease obligations | $ | 1 | $ | 99 | $ | 32 | $ | 367 | ||||||||
ROU assets obtained in exchange for finance lease obligations | $ | 0 | $ | 7,200 | $ | 0 | $ | 42,672 |
Three Months Ended | Six Months Ended | |||||||||||||||
May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||||
Expense reported in: | ||||||||||||||||
Cost of goods sold | $ | 182 | $ | 97 | $ | 324 | $ | 208 | ||||||||
Selling, general and administrative | 1,243 | 1,207 | 2,424 | 2,304 | ||||||||||||
Research and development | 159 | 118 | 293 | 211 | ||||||||||||
Total expense incurred | $ | 1,584 | $ | 1,422 | $ | 3,041 | $ | 2,723 | ||||||||
Expense by award type: | ||||||||||||||||
Restricted stock awards | $ | 1,316 | $ | 1,313 | $ | 2,683 | $ | 2,484 | ||||||||
Stock options | 221 | 54 | 259 | 138 | ||||||||||||
ESPP | 47 | 55 | 99 | 101 | ||||||||||||
Total expense incurred | $ | 1,584 | $ | 1,422 | $ | 3,041 | $ | 2,723 | ||||||||
Income tax benefits of share-based compensation | $ | 104 | $ | 62 | $ | 188 | $ | 108 | ||||||||
Share-based compensation cost capitalized | $ | 0 | $ | 0 | $ | 0 | $ | 0 |
Three Months Ended | Six Months Ended | |||||||||||||||
May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||||
Number of shares granted in period | 0 | 15,000 | 535,400 | 556,200 | ||||||||||||
Weighted-average grant-date fair value of awards (in dollars per share) | $ | 0 | $ | 12.65 | $ | 19.28 | $ | 11.17 | ||||||||
Compensation cost not yet recognized | $ | 10,779 | $ | 9,762 | $ | 10,779 | $ | 9,762 | ||||||||
Weighted-average amortization period for cost not yet recognized (in years) | 2.8 | 2.9 | 2.8 | 2.9 | ||||||||||||
Shares outstanding at balance sheet date | 891,429 | 1,022,327 | 891,429 | 1,022,327 |
Three Months Ended | Six Months Ended | |||||||||||||||
May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||||
Number of options granted in period | 0 | 0 | 0 | 0 | ||||||||||||
Cash received from option exercised | $ | 438 | $ | 309 | $ | 4,149 | $ | 967 | ||||||||
Compensation cost not yet recognized | $ | 52 | $ | 232 | $ | 52 | $ | 232 | ||||||||
Weighted-average amortization period for cost not yet recognized (in years) | 0.7 | 1.4 | 0.7 | 1.4 |
Options | Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | |||||||
Outstanding at August 1, 2021 | 1,345,495 | $ | 9.42 | 4.1 | $ | 5,309 | |||||
Exercisable at August 1, 2021 | 1,246,806 | $ | 9.44 | 3.9 | $ | 4,899 |
Options | Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | |||||||
Outstanding at May 1, 2022 | 718,213 | $ | 9.90 | 3.5 | $ | 3,657 | |||||
Exercisable at May 1, 2022 | 693,987 | $ | 9.90 | 3.4 | $ | 3,531 |
May 1, 2022 | October 31, 2021 | |||||||
Unrecognized tax benefits related to uncertain tax positions | $ | 4,629 | $ | 3,757 | ||||
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | $ | 4,629 | $ | 3,757 | ||||
Accrued interest and penalties related to uncertain tax positions | $ | 357 | $ | 223 |
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
August 1, 2021 | August 2, 2020 | August 1, 2021 | August 2, 2020 | May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||||||||||||||||
Net income attributable to Photronics, Inc. shareholders | $ | 17,076 | $ | 10,776 | $ | 35,638 | $ | 27,360 | $ | 27,432 | $ | 10,526 | $ | 50,496 | $ | 18,562 | ||||||||||||||||
Effect of dilutive securities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Earnings used for diluted earnings per share | $ | 17,076 | $ | 10,776 | $ | 35,638 | $ | 27,360 | $ | 27,432 | $ | 10,526 | $ | 50,496 | $ | 18,562 | ||||||||||||||||
Weighted-average common shares computations: | ||||||||||||||||||||||||||||||||
Weighted-average common shares used for basic earnings per share | 60,884 | 64,780 | 61,804 | 65,090 | 60,606 | 62,054 | 60,382 | 62,265 | ||||||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||||||||
Share-based payment awards | 631 | 467 | 558 | 614 | 539 | 514 | 659 | 521 | ||||||||||||||||||||||||
Potentially dilutive common shares | 631 | 467 | 558 | 614 | 539 | 514 | 659 | 521 | ||||||||||||||||||||||||
Weighted-average common shares used for diluted earnings per share | 61,515 | 65,247 | 62,362 | 65,704 | 61,145 | 62,568 | 61,041 | 62,786 | ||||||||||||||||||||||||
Basic earnings per share | $ | 0.28 | $ | 0.17 | $ | 0.58 | $ | 0.42 | $ | 0.45 | $ | 0.17 | $ | 0.84 | $ | 0.30 | ||||||||||||||||
Diluted earnings per share | $ | 0.28 | $ | 0.17 | $ | 0.57 | $ | 0.42 | $ | 0.45 | $ | 0.17 | $ | 0.83 | $ | 0.30 |
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
August 1, 2021 | August 2, 2020 | August 1, 2021 | August 2, 2020 | May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||||||||||||||||
Share-based payment awards | 206 | 985 | 442 | 723 | 427 | 293 | 626 | 559 | ||||||||||||||||||||||||
Total potentially dilutive shares excluded | 206 | 985 | 442 | 723 | 427 | 293 | 626 | 559 |
Three Months Ended August 1, 2021 | ||||||||||||
Foreign Currency Translation Adjustments | Other | Total | ||||||||||
Balance at May 2, 2021 | $ | 36,052 | $ | (860 | ) | $ | 35,192 | |||||
Other comprehensive income | (10,482 | ) | 37 | (10,445 | ) | |||||||
Less: other comprehensive income attributable to noncontrolling interests | (153 | ) | 18 | (135 | ) | |||||||
Balance at August 1, 2021 | $ | 25,723 | $ | (841 | ) | $ | 24,882 |
Three Months Ended August 2, 2020 | ||||||||||||
Foreign Currency Translation Adjustments | Other | Total | ||||||||||
Balance at May 3, 2020 | $ | (14,535 | ) | $ | (665 | ) | $ | (15,200 | ) | |||
Other comprehensive income | 10,659 | 4 | 10,663 | |||||||||
Less: other comprehensive income attributable to noncontrolling interests | 1,889 | 2 | 1,891 | |||||||||
Balance at August 2, 2020 | $ | (5,765 | ) | $ | (663 | ) | $ | (6,428 | ) |
Nine Months Ended August 1, 2021 | ||||||||||||
Foreign Currency Translation Adjustments | Other | Total | ||||||||||
Balance at October 31, 2020 | $ | 18,828 | $ | (870 | ) | $ | 17,958 | |||||
Other comprehensive income | 11,584 | 58 | 11,642 | |||||||||
Less: other comprehensive income attributable to noncontrolling interests | 4,689 | 29 | 4,718 | |||||||||
Balance at August 1, 2021 | $ | 25,723 | $ | (841 | ) | $ | 24,882 |
Nine Months Ended August 2, 2020 | ||||||||||||
Foreign Currency Translation Adjustments | Other | Total | ||||||||||
Balance at October 31, 2019 | $ | (8,331 | ) | $ | (674 | ) | $ | (9,005 | ) | |||
Other comprehensive income | 6,689 | 23 | 6,712 | |||||||||
Less: other comprehensive income attributable to noncontrolling interests | 4,123 | 12 | 4,135 | |||||||||
Balance at August 2, 2020 | $ | (5,765 | ) | $ | (663 | ) | $ | (6,428 | ) |
Three Months Ended May 1, 2022 | ||||||||||||
Foreign Currency Translation Adjustments | Other | Total | ||||||||||
Balance at January 30, 2022 | $ | 11,451 | $ | (886 | ) | $ | 10,565 | |||||
Other comprehensive (loss) income | (44,118 | ) | 129 | (43,989 | ) | |||||||
Less: other comprehensive (loss) income attributable to noncontrolling interests | (10,570 | ) | 65 | (10,505 | ) | |||||||
Balance at May 1, 2022 | $ | (22,097 | ) | $ | (822 | ) | $ | (22,919 | ) |
Three Months Ended May 2, 2021 | ||||||||||||
Foreign Currency Translation Adjustments | Other | Total | ||||||||||
Balance at January 31, 2021 | $ | 32,900 | $ | (871 | ) | $ | 32,029 | |||||
Other comprehensive income | 3,778 | 21 | 3,799 | |||||||||
Less: other comprehensive income attributable to noncontrolling interests | 626 | 10 | 636 | |||||||||
Balance at May 2, 2021 | $ | 36,052 | $ | (860 | ) | $ | 35,192 |
Six Months Ended May 1, 2022 | ||||||||||||
Foreign Currency Translation Adjustments | Other | Total | ||||||||||
Balance at October 31, 2021 | $ | 21,476 | $ | (905 | ) | $ | 20,571 | |||||
Other comprehensive (loss) income | (53,949 | ) | 166 | (53,783 | ) | |||||||
Less: other comprehensive (loss) income attributable to noncontrolling interests | (10,376 | ) | 83 | (10,293 | ) | |||||||
Balance at May 1, 2022 | $ | (22,097 | ) | $ | (822 | ) | $ | (22,919 | ) |
Six Months Ended May 2, 2021 | ||||||||||||
Foreign Currency Translation Adjustments | Other | Total | ||||||||||
Balance at October 31, 2020 | $ | 18,828 | $ | (870 | ) | $ | 17,958 | |||||
Other comprehensive income | 22,066 | 21 | 22,087 | |||||||||
Less: other comprehensive income attributable to noncontrolling interests | 4,842 | 11 | 4,853 | |||||||||
Balance at May 2, 2021 | $ | 36,052 | $ | (860 | ) | $ | 35,192 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||||||||||||||||
Three Months Ended August 1, 2021 | Nine Months Ended August 1, 2021 | From Inception Date of September 16, 2020 | ||||||||||||||||||||||||||
Number of shares repurchased | 964 | 2,983 | 4,713 | 0 | 797 | 188 | 2,019 | |||||||||||||||||||||
Cost of shares repurchased | $ | 12,500 | $ | 35,750 | $ | 53,250 | $ | 0 | $ | 10,041 | $ | 2,522 | $ | 23,250 | ||||||||||||||
Average price paid per share | $ | 12.97 | $ | 11.98 | $ | 11.30 | $ | 0 | $ | 12.59 | $ | 13.43 | $ | 11.51 |
Nine Months Ended August 2, 2020 | From Inception Date of September 25, 2019 | |||||||
Number of shares repurchased | 1,464 | 2,460 | ||||||
Cost of shares repurchased | $ | 16,894 | $ | 27,894 | ||||
Average price paid per share | $ | 11.54 | $ | 11.34 |
Item 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three Months Ended | Six Months Ended | |||||||||||||||||||
May 1, 2022 | January 30, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | ||||||||||||||||
Revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
Cost of goods sold | 65.7 | 68.5 | 75.4 | 67.0 | 77.6 | |||||||||||||||
Gross profit | 34.3 | 31.5 | 24.6 | 33.0 | 22.4 | |||||||||||||||
Selling, general and administrative expenses | 8.1 | 8.3 | 8.8 | 8.2 | 9.0 | |||||||||||||||
Research and development expenses | 2.1 | 3.1 | 2.7 | 2.6 | 2.9 | |||||||||||||||
Operating income | 24.2 | 20.1 | 13.0 | 22.2 | 10.4 | |||||||||||||||
Non-operating income (expense), net | 3.9 | 2.5 | (0.5 | ) | 3.2 | - | ||||||||||||||
Income before income tax provision | 28.1 | 22.6 | 12.5 | 25.4 | 10.4 | |||||||||||||||
Income tax provision | 7.0 | 5.9 | 2.3 | 6.5 | 2.1 | |||||||||||||||
Net income | 21.0 | 16.7 | 10.2 | 19.0 | 8.3 | |||||||||||||||
Net income attributable to noncontrolling interests | 7.6 | 4.6 | 3.6 | 6.2 | 2.3 | |||||||||||||||
Net income attributable to Photronics, Inc. shareholders | 13.4 | % | 12.2 | % | 6.6 | % | 12.8 | % | 6.0 | % | ||||||||||
Q2 FY22 from Q1 FY22 | Q2 FY22 from Q2 FY21 | YTD FY22 from YTD FY21 | ||||||||||||||||||||||||||||||
Revenue in Q2 FY22 | Increase (Decrease) | Percent Change | Increase (Decrease) | Percent Change | Revenue in YTD FY22 | Increase (Decrease) | Percent Change | |||||||||||||||||||||||||
IC | ||||||||||||||||||||||||||||||||
High-end * | $ | 51.4 | $ | 4.8 | 10.4 | % | $ | 10.1 | 24.5 | % | $ | 97.9 | $ | 19.9 | 25.4 | % | ||||||||||||||||
Mainstream | 94.4 | 11.2 | 13.5 | % | 23.7 | 33.5 | % | 177.7 | 38.8 | 27.9 | % | |||||||||||||||||||||
Total IC | $ | 145.8 | $ | 16.0 | 12.4 | % | $ | 33.8 | 30.2 | % | $ | 275.6 | $ | 58.6 | 27.0 | % | ||||||||||||||||
FPD | ||||||||||||||||||||||||||||||||
High-end * | $ | 46.6 | $ | 0.3 | 0.7 | % | $ | 7.2 | 18.3 | % | $ | 92.9 | $ | 18.8 | 25.4 | % | ||||||||||||||||
Mainstream | 12.1 | (1.7 | ) | (12.3 | )% | 3.7 | 44.6 | % | 25.9 | 5.1 | 24.2 | % | ||||||||||||||||||||
Total FPD | $ | 58.7 | $ | (1.4 | ) | (2.3 | )% | $ | 10.9 | 22.9 | % | $ | 118.8 | $ | 23.9 | 25.2 | % | |||||||||||||||
Total Revenue | $ | 204.5 | $ | 14.7 | 7.7 | % | $ | 44.7 | 28.0 | % | $ | 394.3 | $ | 82.5 | 26.5 | % | ||||||||||||||||
Q2 FY22 from Q1 FY22 | Q2 FY22 from Q2 FY21 | YTD FY22 from YTD FY21 | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Revenue in Q2 FY22 | Increase (Decrease) | Percent Change | Increase (Decrease) | Percent Change | Revenue in YTD FY22 | Increase (Decrease) | Percent Change | |||||||||||||||||||||||||
Taiwan | $ | 69.9 | $ | 2.0 | 3.0 | % | $ | 10.8 | 18.4 | % | $ | 137.7 | $ | 22.1 | 19.1 | % | ||||||||||||||||
China | 53.7 | 7.7 | 16.8 | % | 30.0 | 126.3 | % | 99.6 | 54.9 | 122.8 | % | |||||||||||||||||||||
Korea | 40.8 | 1.3 | 3.2 | % | 0.5 | 1.3 | % | 80.3 | 1.3 | 1.6 | % | |||||||||||||||||||||
United States | 30.3 | 3.2 | 11.6 | % | 3.2 | 11.7 | % | 57.5 | 3.8 | 7.0 | % | |||||||||||||||||||||
Europe | 9.5 | 0.6 | 6.6 | % | 0.2 | 2.7 | % | 18.4 | 0.6 | 3.3 | % | |||||||||||||||||||||
Other | 0.4 | (0.1 | ) | (16.7 | )% | 0.0 | (7.7 | )% | 0.8 | (0.1 | ) | (13.2 | )% | |||||||||||||||||||
Total Revenue | $ | 204.5 | $ | 14.7 | 7.7 | % | $ | 44.7 | 28.0 | % | $ | 394.3 | $ | 82.5 | 26.5 | % | ||||||||||||||||
Q2 FY22 | Q1 FY22 | Percent Change | Q2 FY21 | Percent Change | YTD FY22 | YTD FY21 | Percent Change | |||||||||||||||||||||||||
Gross profit | $ | 70.2 | $ | 59.9 | 17.3 | % | $ | 39.2 | 78.9 | % | $ | 130.1 | $ | 69.8 | 86.4 | % | ||||||||||||||||
Gross margin | 34.3 | % | 31.5 | % | 24.6 | % | 33.0 | % | 22.4 | % |
Q2 FY22 | Q1 FY22 | Q2 FY21 | YTD FY22 | YTD FY21 | ||||||||||||||||
Foreign currency transactions impact, net | $ | 7.8 | $ | 5.3 | $ | (2.1 | ) | $ | 13.1 | $ | (0.7 | ) | ||||||||
Interest expense, net | - | (0.9 | ) | 1.2 | (0.9 | ) | 0.4 | |||||||||||||
Interest income and other income (expense), net | 0.2 | 0.3 | - | 0.5 | 0.2 | |||||||||||||||
Non-operating income (expense), net | $ | 8.0 | $ | 4.7 | $ | (0.8 | ) | $ | 12.7 | $ | (0.1 | ) | ||||||||
Q2 FY22 | Q1 FY22 | Q2 FY21 | YTD FY22 | YTD FY21 | ||||||||||||||||
Income tax provision | $ | 14.4 | $ | 11.2 | $ | 3.7 | $ | 25.6 | $ | 6.7 | ||||||||||
Effective income tax rate | 25.1 | % | 26.1 | % | 18.5 | % | 25.5 | % | 20.5 | % |
YTD FY22 | YTD FY21 | |||||||
Net cash provided by operating activities | $ | 103.3 | $ | 58.2 | ||||
Net cash used in investing activities | $ | (33.6 | ) | $ | (67.9 | ) | ||
Net cash used in financing activities | $ | (2.2 | ) | $ | (18.6 | ) |
YTD FY22 | YTD FY21 | |||||||
Free Cash Flow | ||||||||
Net cash provided by operating activities | $ | 103.3 | $ | 58.2 | ||||
Purchases of property, plant and equipment | (34.8 | ) | (73.5 | ) | ||||
Government incentives | 1.4 | 5.8 | ||||||
Free cash flow | $ | 69.9 | $ | (9.5 | ) |
Q2 FY22 | Q2 FY21 | |||||||
LTM Free Cash Flow | ||||||||
First six months of the respective fiscal year | $ | 69.9 | $ | (9.5 | ) | |||
October fiscal year end | 47.4 | 77.5 | ||||||
First six months of the prior year | 9.5 | (36.5 | ) | |||||
LTM free cash flow | $ | 126.8 | $ | 31.5 |
As of | ||||||||
May 1, 2022 | October 31, 2021 | |||||||
Net Cash | ||||||||
Cash and cash equivalents | $ | 329.3 | $ | 276.7 | ||||
Current portion of Long-term debt | (12.4 | ) | (22.2 | ) | ||||
Long-term debt | (70.1 | ) | (89.4 | ) | ||||
Net cash | $ | 246.7 | $ | 165.0 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
August 1, 2021 | May 2, 2021 | August 2, 2020 | August 1, 2021 | August 2, 2020 | ||||||||||||||||
Revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
Cost of goods sold | 73.4 | 75.4 | 76.1 | 76.1 | 77.7 | |||||||||||||||
Gross profit | 26.6 | 24.6 | 23.9 | 23.9 | 22.3 | |||||||||||||||
Selling, general and administrative expenses | 8.8 | 8.8 | 8.4 | 9.0 | 8.9 | |||||||||||||||
Research and development expenses | 3.1 | 2.7 | 2.9 | 3.0 | 2.8 | |||||||||||||||
Other operating income, net | 2.1 | - | - | 0.7 | - | |||||||||||||||
Operating income | 16.7 | 13.0 | 12.6 | 12.7 | 10.6 | |||||||||||||||
Other non-operating income (expense), net | 2.2 | (0.5 | ) | (1.3 | ) | 0.8 | 0.2 | |||||||||||||
Income before income tax provision | 18.9 | 12.5 | 11.3 | 13.4 | 10.8 | |||||||||||||||
Income tax provision | 4.6 | 2.3 | 3.2 | 3.0 | 3.9 | |||||||||||||||
Net income | 14.3 | 10.2 | 8.1 | 10.4 | 6.9 | |||||||||||||||
Net income attributable to noncontrolling interests | 4.3 | 3.6 | 1.3 1.1 | 3.0 | 1.0 | |||||||||||||||
Net income attributable to Photronics, Inc. shareholders | 10.0 | % | 6.6 | % | 6.8 | % | 7.4 | % | 5.9 | % |
Q3 FY21 from Q2 FY21 | Q3 FY21 from Q3 FY20 | YTD FY21 from YTD FY20 | ||||||||||||||||||||||||||||||
Revenue in Q3 FY21 | Increase (Decrease) | Percent Change | Increase (Decrease) | Percent Change | Revenue in YTD FY21 | Increase (Decrease) | Percent Change | |||||||||||||||||||||||||
IC | ||||||||||||||||||||||||||||||||
High-end * | $ | 42.4 | $ | 1.1 | 2.6 | % | $ | 3.7 | 9.5 | % | $ | 120.4 | $ | 2.4 | 2.0 | % | ||||||||||||||||
Mainstream | 75.4 | 4.7 | 6.6 | % | 5.4 | 7.7 | % | 214.3 | 19.8 | 10.2 | % | |||||||||||||||||||||
Total IC | $ | 117.8 | $ | 5.8 | 5.2 | % | $ | 9.1 | 8.4 | % | $ | 334.7 | $ | 22.2 | 7.1 | % | ||||||||||||||||
FPD | ||||||||||||||||||||||||||||||||
High-end * | $ | 40.6 | $ | 1.2 | 3.1 | % | $ | 4.0 | 10.8 | % | $ | 114.7 | $ | 6.4 | 5.9 | % | ||||||||||||||||
Mainstream | 12.2 | 3.9 | 46.1 | % | (0.3 | ) | (2.6 | )% | 33.1 | (6.6 | ) | (16.6 | )% | |||||||||||||||||||
Total FPD | $ | 52.9 | $ | 5.1 | 10.7 | % | $ | 3.6 | 7.4 | % | $ | 147.8 | $ | (0.2 | ) | (0.1 | )% | |||||||||||||||
Total Revenue | $ | 170.6 | $ | 10.9 | 6.8 | % | $ | 12.7 | 8.1 | % | $ | 482.5 | $ | 22.1 | 4.8 | % |
Q3 FY21 from Q2 FY21 | Q3 FY21 from Q3 FY20 | YTD FY21 from YTD FY20 | ||||||||||||||||||||||||||||||
Revenue in Q3 FY21 | Increase (Decrease) | Percent Change | Increase (Decrease) | Percent Change | Revenue in YTD FY21 | Increase (Decrease) | Percent Change | |||||||||||||||||||||||||
Taiwan | $ | 63.8 | $ | 4.8 | 8.2 | % | $ | 3.0 | 5.0 | % | $ | 179.4 | $ | (3.0 | ) | (1.7 | )% | |||||||||||||||
Korea | 39.6 | (0.7 | ) | (1.7 | )% | 0.1 | 0.2 | % | 118.6 | 2.1 | 1.8 | % | ||||||||||||||||||||
United States | 24.7 | (2.5 | ) | (9.0 | )% | (3.7 | ) | (12.9 | )% | 78.4 | 0.2 | 0.2 | % | |||||||||||||||||||
China | 32.7 | 8.9 | 37.6 | % | 11.7 | 55.6 | % | 77.4 | 19.0 | 32.6 | % | |||||||||||||||||||||
Europe | 9.4 | 0.2 | 2.0 | % | 1.7 | 22.8 | % | 27.3 | 3.7 | 15.7 | % | |||||||||||||||||||||
Other | 0.4 | 0.0 | 10.1 | % | (0.1 | ) | (21.9 | )% | 1.3 | 0.1 | 6.7 | % | ||||||||||||||||||||
Total Revenue | $ | 170.6 | $ | 10.9 | 6.8 | % | $ | 12.7 | 8.1 | % | $ | 482.5 | $ | 22.1 | 4.8 | % |
Q3 FY21 from Q2 FY21 | Q3 FY21 from Q3 FY20 | YTD FY21 from YTD FY20 | ||||||||||||||||||||||||||||||
Revenue in Q3 FY21 | Increase (Decrease) | Percent Change | Increase (Decrease) | Percent Change | Revenue in YTD FY21 | Increase (Decrease) | Percent Change | |||||||||||||||||||||||||
IC | $ | 34.5 | $ | 3.0 | 9.5 | % | $ | 10.9 | 46.3 | % | $ | 91.6 | $ | 21.4 | 30.5 | % | ||||||||||||||||
FPD | 28.1 | 2.3 | 8.8 | % | 0.6 | 2.0 | % | 77.9 | (8.4 | ) | (9.8 | )% | ||||||||||||||||||||
Total | $ | 62.6 | $ | 5.3 | 9.2 | % | $ | 11.5 | 22.5 | % | $ | 169.4 | $ | 13.0 | 8.3 | % |
Q3 FY21 | Q2 FY21 | Percent Change | Q3 FY20 | Percent Change | YTD FY21 | YTD FY20 | Percent Change | |||||||||||||||||||||||||
Gross profit | $ | 45.3 | $ | 39.2 | 15.5 | % | $ | 37.7 | 20.1 | % | $ | 115.1 | $ | 102.8 | 12.0 | % | ||||||||||||||||
Gross margin | 26.6 | % | 24.6 | % | 23.9 | % | 23.9 | % | 22.3 | % |
Q3 FY21 | Q2 FY21 | Q3 FY20 | YTD FY21 | YTD FY20 | ||||||||||||||||
Foreign currency transactions impact, net | $ | 4.3 | $ | (2.1 | ) | $ | (1.6 | ) | $ | 3.6 | $ | 1.7 | ||||||||
Interest expense, net | (1.1 | ) | 1.2 | (0.6 | ) | (0.6 | ) | (1.6 | ) | |||||||||||
Interest income and other income (expense), net | 0.5 | - | - | 0.7 | 0.5 | |||||||||||||||
Other income (expense), net | $ | 3.7 | $ | (0.8 | ) | $ | (2.1 | ) | $ | 3.6 | $ | 0.6 |
Q3 FY21 | Q2 FY21 | Q3 FY20 | YTD FY21 | YTD FY20 | ||||||||||||||||
Income tax provision | $ | 7.8 | $ | 3.7 | $ | 4.9 | $ | 14.5 | $ | 17.8 | ||||||||||
Effective income tax rate | 24.4 | % | 18.5 | % | 27.7 | % | 22.4 | % | 35.9 | % |
Nine Months Ended | ||||||||
August 1, 2021 | August 2, 2020 | |||||||
Net cash provided by operating activities | $ | 113.1 | $ | 78.3 | ||||
Net cash used in investing activities | $ | (86.7 | ) | $ | (31.6 | ) | ||
Net cash (used in) provided by financing activities | $ | (26.4 | ) | $ | 4.1 |
Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Item 4. | CONTROLS AND PROCEDURES |
PART II. | OTHER INFORMATION |
Item 1. | LEGAL PROCEEDINGS |
Item 1A. | RISK FACTORS |
Item 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
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) | 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 | ||||||||||||||||||||||||||||||||
May 3, 2021 – May 30, 2021 | 0.8 | $ | 12.86 | 0.8 | $ | 49.3 | ||||||||||||||||||||||||||
May 31, 2021 – June 27, 2021 | 0.2 | $ | 13.43 | 0.2 | $ | 46.8 | ||||||||||||||||||||||||||
January 31, 2022 – February 27, 2022 | 0.0 | $ | 0.00 | 0.0 | $ | 31.7 | ||||||||||||||||||||||||||
February 28, 2022 – March 27, 2022 | 0.0 | $ | 0.00 | 0.0 | $ | 31.7 | ||||||||||||||||||||||||||
March 28, 2022 – May 1, 2022 | 0.0 | $ | 0.00 | 0.0 | $ | 31.7 | ||||||||||||||||||||||||||
Total | 1.0 | $ | 12.97 | 1.0 | 0.0 | 0.0 |
Item 6. | EXHIBITS |
Incorporated by Reference | ||||||||
Exhibit Number | Description | Form | File Number | Exhibit | Filing Date | Filed or Furnished Herewith | ||
Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||
Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||
Certification of Chief adopted pursuant to Section | X | |||||||
Certification of Chief adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | X | ||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | X | ||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | X | ||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | X |
Photronics, Inc. | ||||||
(Registrant) | ||||||
By: | /s/ JOHN P. JORDAN | By: | /s/ ERIC RIVERA | |||
JOHN P. JORDAN | ERIC RIVERA | |||||
Executive Vice President, | Vice President, | |||||
Chief Financial Officer | Corporate Controller | |||||
(Principal Financial Officer) | (Principal Accounting Officer) | |||||
Date: | June 15, 2022 | Date: | June 15, 2022 |