Slide 1: Photronics, Inc. Q4 2018 Financial Results Conference Call
Photronics, Inc. Q4 2018 Financial Results Conference CallDecember 12, 2018
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: Q4 2018 Summary
Record quarterly revenue; +20% Y/Y, +6% Q/QFPD achieves record revenue on strong high-end demand, driven by AMOLEDIC improved on high-end memory and uptick in Asia mainstream; high-end logic softer Q/QChina revenue up 146% Y/Y & 6% Q/QNote: Q418 had 3 extra days than comparable quartersMargin compre
Slide 4: Income Statement Summary
$M (except EPS) Q418 Q318 Q/Q Q417 Y/Y Revenue $ 144.7 $ 136.4 6% $ 121.0 20% Gross Profit $ 35.4 $ 35.6 (1%) $ 26.4 34% Gross Margin 24.5% 26.1% (160 bps) 21.9% 260 bps Operating Income $ 18.0 $ 20.4 (12%) $ 12.4 45% Operating Margin 12.5% 15.0% (250 bps) 10.3% 220 bps Net Income* $ 12.5 $ 13.0 (4%
Slide 5: IC Photomask Revenue
Strong Y/Y high-end growthHigh-end memory up on Asia demandHigh-end logic up Y/Y, but down Q/Q as Asia demand shifts to mainstreamChina IC revenue up 3x Y/Y; represents 17% of Q418 IC revenueExpect mixed demand in Q1High-end memory should remain positiveHigh-end logic recovery expected, but timing u
Slide 6: FPD Photomask Revenue
Record FPD revenue on strong high-end demandRepositioning the business for mobile display and China G10.5+High-end AMOLED up 50% sequentiallyY/Y mainstream driven by LTPS mobileG10.5+ production to begin H119China revenue nearly doubled Y/Y; represents 36% of Q418 FPD revenueDemonstrating technology
Slide 7: Select Financial Data
$M Q418 Q318 Q417 Cash $ 329 $ 333 $ 308 Debt $ 57 $ 58 $ 62 Net Cash* $ 272 $ 275 $ 246 Operating Cash Flow $ 44 $ 49 $ 23 Capital Expenditures $ 28 $ 20 $ 53 Share repurchase $ 16 $ 7 - LTM EBITDA $ 158 $ 153 $ 119 Cash balance essentially flat on strong operating cash flow offset capex and share
Slide 8: Q1 2019 Guidance
Revenue ($M) $120 - $130 Taxes ($M) $1 - $2 EPS $0.01 - $0.07 Diluted Shares (M) ~70 Expecting Q1 to be down in Q/QSeasonally soft period & 6 fewer daysUncertain timing of high-end logic recoveryHigh-end IC memory stableFPD expected to remain at capacityExpect margin headwinds from China startupAnti
Slide 9: Change in fiscal year end
Beginning in fiscal year 2018, all fiscal years end 10/31 (previously closed on Sunday closest to 10/31)Other quarters (Q1, Q2, Q3) will continue to end on Sunday closest to calendar endLength of Q2 & Q3 will continue to be 13 weeks (91 days)Length of Q1 & Q4 will vary depending on yearBelow table p
Slide 10: Thank you for your interest!
Thank you for your interest! For Additional Information:R. Troy Dewar, CFADirector, Investor Relations203.740.5610tdewar@photronics.com
Slide 11: Appendix
Appendix
Slide 12: IC Photomask Revenue
IC Photomask Revenue 12 Mainstream$255.7M61% High-End$160.3M39% High-End: 28nm and smaller; total may differ due to rounding
Slide 13: FPD Photomask Revenue
FPD Photomask Revenue 13 Mainstream$43.1M36% High-End$76.1M64% High-End: ≥G8 and AMOLED; total may differ due to rounding Mainstream$32.5M32% High-End$67.9M68%
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 15: Reconciliation of GAAP Net Income to Adjusted EBITDA
GAAP Net Income Interest expense Income tax expense Depreciation and amortization Other items (a) Non-GAAP Adjusted EBITDA Non-GAAP Adjusted L-T-MEBITDA (b) Notes: (in thousands, except per share data) (Unaudited) ‘Three Months Ended October 31, July 29, April29, January28, October 29, uly 30, April