Slide 1: Photronics, Inc. Q2 2019 Financial Results Conference Call
Photronics, Inc. Q2 2019 Financial Results Conference CallMay 22, 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: Q2 2019 Summary
Revenue up 6% Q/Q and 1% Y/YSequential IC growth on high-end memory recoveryFPD growth driven by mobile display (AMOLED and LTPS LCD)Record revenue to China, representing 26% of total revenueNet income attributable to Photronics, Inc. shareholders of $8.5M ($0.13/share)Capex of $34M ($140M YTD) to s
Slide 4: Income Statement Summary
$M (except EPS) Q219 Q119 Q/Q Q218 Y/Y Revenue $ 131.6 $ 124.7 6% $ 130.8 1% Gross Profit $ 26.0 $ 26.1 ─ $ 32.8 (21%) Gross Margin 19.8% 20.9% (110 bps) 25.1% (530 bps) Operating Income $ 9.2 $ 8.0 14% $ 15.4 (40%) Operating Margin 7.0% 6.5% 50 bps 11.7% (470 bps) Other income $ 3.9 $ 1.1 $ 2.8 $ 3
Slide 5: IC Photomask Revenue
Revenue grew Q/Q on high-end memory recoveryChina revenue +21% Q/Q; +68% Y/YRepresents 18% of Q219 IC revenueNew long-term purchase agreement increases sustainability of China businessOutlookExpect stable to improving high-end demandInitial shipments planned from Xiamen $M Q219 Q119 Q/Q Q218 Y/Y Hig
Slide 6: FPD Photomask Revenue
High-end driven by growth in AMOLED for mobile displaysDemand for mobile LTPS LCD displays remains strong; drives Q/Q mainstream growthChina revenue +20% Q/Q; +58% Y/YRepresents 47% of Q219 FPD revenueShipped first G10.5+ plate from HefeiOutlookAMOLED technology remains in high demandPlan to increas
Slide 7: Select Financial Data
$M Q219 Q119 Q218 Cash $ 167 $ 232 $ 321 Debt $ 36 $ 86 $ 59 Net Cash* $ 131 $ 146 $ 262 Operating Cash Flow $ 17 ($ 19) $ 7 Capital Expenditures $ 34 $ 107 $ 33 Share repurchase - $ 11 - LTM EBITDA $ 148 $ 156 $ 138 Deploying cash balance to fund China investmentsYTD capex $140M; still anticipate F
Slide 8: Q3 2019 Guidance
Revenue ($M) $132 - $142 Taxes ($M) $2 - $3 EPS $0.05 - $0.14 Diluted Shares (M) ~66 Anticipate sequential growth in Q3High-end IC markets stable to improvingLegacy FPD expected to remain at capacity with Hefei ramping productionPotential macro headwind & impact from trade policyExpect margin headwi
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$253.1M61% High-End$158.5M39% 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$42.3M34% High-End$83.5M66% 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 to Non-GAAP Financial Information
PHOTROWS, NC. Non-GAAP Financial Measiee Aecondiation of GAAP fo Non-GAAP Finandal infomation finthousands) (unaustes) ‘Three Months Ended ‘prt, lamaryzz,ocober3i, ly 28, api 23, Tanuary28, October 29, 1uly30, Recondition of GAAP Net ncome to Non-GAAP Adjusted EBITDA ARP Nat income S 9s2 5 778 $ 15R