Photronics, Inc. · NASDAQ:PLAB
Photronics — Q4 2021 Earnings Presentation
16 slides from Photronics's earnings presentation, Dec 8, 2021
Slide 1: Q4 2021 Financial Results Conference Call
Q4 2021 Financial Results Conference CallDecember 8, 2021 Photronics, Inc.
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 uncertainties.
Slide 3: 2021 Summary
2021 Summary Revenue was a record $663.8M, up 9%IC and FPD both achieved record revenue, up 10% and 6%, respectivelyRecord revenue to China, up 20%Net income attributable to Photronics, Inc. shareholders of $55.4M ($0.89/share)Cash balance $277M100% of free cash flow returned to investors through sh
Slide 4: Q4 2021 Summary
Q4 2021 Summary Revenue was a record $181.3M, up 6% Q/Q and 21% Y/YIC (+7% Q/Q, +18% Y/Y) and FPD (+6% Q/Q, +29% Y/Y) both achieved record revenueRecord revenue to China, up 26% Q/Q and 55% Y/YNet income attributable to Photronics, Inc. shareholders of $19.8M ($0.33/share)Cash balance $277M$38M gene
Slide 5: Next phase of investment strategy
Next phase of investment strategy Revenue growthWin lion’s share of “Made in China 2025” TAM growthSupplement new factories with point tool investmentsCapture captive outsourcing opportunity created by EUVCapitalize on technology leadership in AMOLED to continue improving mixMargin expansionSustaine
Slide 6: Illustrative Target Model
Illustrative Target Model $M (except EPS) 2019 2020 2021 12/2020 Illustrative FY2023 Target Model Revenue $551 $610 $664 $7005% CAGR $7256% CAGR $7507% CAGR Gross Margin 22% 22% 25% 24-26% 26-28% 27-29% Operating Margin 9% 10% 14% 13-15% 15-17% 17-19% Operating Cash Flow $68 $143 $151 $150-160 $160-
Slide 7: Income Statement Summary
Income Statement Summary $M (except EPS) Q421 Q321 Q/Q Q420 Y/Y Revenue $ 181.3 $ 170.6 6% $ 149.3 21% Gross Profit $ 51.9 $ 45.3 15% $ 31.9 63% Gross Margin 28.7% 26.6% 210 bps 21.4% 730 bps Operating Income $ 33.5 $ 28.5 18% $ 15.0 124% Operating Margin 18.5% 16.7% 180 bps 10.0% 850 bps Other non-
Slide 8: IC Photomask Revenue
$M Q421 Q321 Q/Q Q420 Y/Y High-End* $ 42.6 $ 42.4 1% $ 38.2 12% Mainstream $ 82.9 $ 75.4 10% $ 67.8 22% Total $ 125.4 $ 117.8 7% $ 105.9 18% IC Photomask Revenue 12/8/2021 8 High-end growth driven by strong logic demand in AsiaMainstream up on proliferation of chips in IoT, 5G, Crypto and consumer p
Slide 9: FPD Photomask Revenue
FPD Photomask Revenue 12/8/2021 9 High-end improved on mobile demandMainstream recovery continues Full quarter benefit of new litho toolsOutlookDynamic market environmentMobile demand strength and mainstream LCD recovery expected to continueTechnology development drives demand for higher-value masks
Slide 10: Select Financial Data
Select Financial Data $M Q421 Q321 Q420 Cash $ 277 $ 283 $ 279 Debt $ 112 $ 118 $ 69 Net Cash* $ 165 $ 165 $ 210 Operating Cash Flow $ 38 $ 55 $ 65 Capital Expenditures $ 17 $ 19 $ 34 Share repurchase $ 13 $ 13 $ 18 Debt is US equipment lease and local China loansFull-year net 2021 capex was $104MTo
Slide 11: Q122 Guidance
Q122 Guidance Revenue ($M) $178 - $186 Operating Margin 18% - 20% Taxes ($M) $9 - $10 EPS $0.27 - $0.34 Diluted Shares (M) ~60 Full-year Capex (M) ~$100 Incorporation of chips in IoT, 5G, Crypto and consumer products Remote work and learningAdvanced display technologiesGrowing nationalism spurs inve
Slide 12: For Additional Information
For Additional Information:John P. JordanExecutive Vice President & CFO203.740.5671jjordan@photronics.com Thank you for your interest!
Slide 13: Appendix
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Slide 14: Total Revenue
Total Revenue 12/8/2021 14 IC FPD Total may differ due to rounding
Slide 15: IC Photomask Revenue
IC Photomask Revenue 12/8/2021 15 Mainstream High-End High-End: 28nm and smaller; total may differ due to rounding
Slide 16: FPD Photomask Revenue
FPD Photomask Revenue 12/8/2021 16 Mainstream High-End High-End: ≥G10.5, AMOLED and LTPS; total may differ due to rounding