Photronics, Inc. · NASDAQ:PLAB
Photronics — Q1 2019 Earnings Presentation
14 slides from Photronics's earnings presentation, Feb 21, 2019
Slide 1: Q1 2019 Financial Results Conference Call
Photronics, Inc. Q1 2019 Financial Results Conference CallFebruary 21, 2019
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 This presentation and some of our comments may contain projections or other forward-looking statements regarding future events, our future financial performance, and/or the future performance of the industry. These statements are predictions, and contain risks and uncertainti
Slide 3: Q1 2019 Summary
Revenue up 1% Y/Y; down 14% Q/Q on seasonal trend, macro headwinds, and fewer days in quarterIC down on softness from Asia customersFPD high-end improved Y/Y on mobile AMOLED demandNet income attributable to Photronics, Inc. shareholders of $5.3M ($0.08/share)Repurchased 1.1M shares for $10.7M in Q1
Slide 4: Income Statement Summary
$M (except EPS) Q119 Q418 Q/Q Q118 Y/Y Revenue $ 124.7 $ 144.7 (14%) $ 123.4 1% Gross Profit $ 26.1 $ 35.4 (26%) $ 27.7 (6%) Gross Margin 20.9% 24.5% (360 bps) 22.4% (150 bps) Operating Income $ 8.0 $ 18.0 (55%) $ 11.8 (32%) Operating Margin 6.5% 12.5% (600 bps) 9.6% (310 bps) Other income (expense)
Slide 5: IC Photomask Revenue
Market softness impacting high-end and mainstreamHigh-end memory down on customer order timingHigh-end logic up Y/Y, down Q/Q on industry softnessChina IC revenue up 136% Y/Y; represents 16% of Q119 IC revenueExpect stable to improving high-end market demand (memory up; logic flat), with potential f
Slide 6: FPD Photomask Revenue
High-end up Y/Y on growing AMOLED demand for mobile displaysMainstream down due to lower LTPS and G8.5China revenue up 11% Y/YRepresents 43% of Q119 FPD revenueG10.5+ production to begin Q219AMOLED technology remains in high demand; expect to remain at or near capacity $M Q119 Q418 Q/Q Q118 Y/Y High
Slide 7: Select Financial Data
$M Q119 Q418 Q118 Cash $ 232 $ 329 $ 349 Debt $ 86 $ 57 $ 61 Net Cash* $ 146 $ 272 $ 288 Operating Cash Flow ($ 19) $ 44 $ 31 Capital Expenditures $ 107 $ 28 $ 11 Share repurchase $ 11 $ 16 - LTM EBITDA $ 156 $ 158 $ 122 Cash balance reduced to fund China investments and cash used in operations (rec
Slide 8: Q2 2019 Guidance
Revenue ($M) $125 - $135 Taxes ($M) $1 - $2 EPS $0.03 - $0.10 Diluted Shares (M) ~67 Anticipate sequential growth in Q2High-end IC markets stable to improvingFPD expected to remain at capacitySeasonal recovery; 3 more daysPotential macro headwindExpect margin headwinds from China startupAnticipate E
Slide 9: Thank you for your interest!
Thank you for your interest! For Additional Information:R. Troy Dewar, CFAVice President, Investor Relations203.740.5610tdewar@photronics.com
Slide 10: Appendix
Appendix
Slide 11: IC Photomask Revenue
IC Photomask Revenue 11 Mainstream$253.7M61% High-End$161.5M39% High-End: 28nm and smaller; total may differ due to rounding Mainstream$255.7M61% High-End$160.3M39%
Slide 12: FPD Photomask Revenue
FPD Photomask Revenue 12 Mainstream$42.5M35% High-End$78.8M65% High-End: ≥G8 and AMOLED; total may differ due to rounding Mainstream$43.1M36% High-End$76.1M64%
Slide 13: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 14: Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA
PHOTRONICS, INC. (inthousands, except per share data) (Unaudited) ‘Three Months Ended January 27, October 31, —_July29, April 29, January28, October 29, July 30, April 30, 2019 2018 2018 2018 2018 217 2017 2017 Reconciliation of GAAP Netincome to Non-GAAP Adjusted EBITDA GAAP Net Income $ 7,768 $ 16