Photronics, Inc. · NASDAQ:PLAB
Photronics — Q3 2018 Earnings Presentation
14 slides from Photronics's earnings presentation, Aug 22, 2018
Slide 1: Photronics, Inc. Q3 2018 Financial Results Conference Call
Photronics, Inc. Q3 2018 Financial Results Conference CallAugust 22, 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: Q3 2018 Summary
Revenue grew 22% Y/Y and 4% Q/QHigh-end IC +94% Y/YChina revenue up 132% Y/Y & 44% Q/QRevenue to IC captives increased 161% Y/YGross and operating margins expanded on high operating leverage and cost containmentNet income attributable to Photronics, Inc. shareholders of $13.0M ($0.18/share)Cash bala
Slide 4: Income Statement Summary
$M (except EPS) Q318 Q218 Q/Q Q317 Y/Y Revenue $ 136.4 $ 130.8 4% $ 111.6 22% Gross Profit $ 35.6 $ 32.8 8% $ 21.7 64% Gross Margin 26.1% 25.1% 100 bps 19.5% 660 bps Operating Income $ 20.4 $ 15.4 33% $ 5.3 3.9x Operating Margin 15.0% 11.7% 330 bps 4.7% 1030 bps Net Income* $ 13.0 $ 10.7 22% $ 4.0 3
Slide 5: IC Photomask Revenue
High-end nearly doubled Y/YHigh-end logic growth driven by Asia foundriesMemory demand from Asia continues to be strongChina IC revenue up 3x Y/Y; represents 16% of Q318 IC revenueRevenue to customers with captive mask operations increased 161% Y/YExpect demand trends to continue in Q4High-end logic
Slide 6: FPD Photomask Revenue
Repositioning the business for mobile display and China G10.5+High-end AMOLED up 52% sequentiallyMainstream driven by LTPS mobile growthHigh-end down as we pivot away from G8.5China represents 43% of Q318 FPD revenueBegan to generate revenue from new P-800 mask writer; enables us to maintain AMOLED
Slide 7: Select Financial Data
$M Q318 Q218 Q317 Cash $ 333 $ 321 $ 341 Debt $ 58 $ 59 $ 63 Net Cash* $ 275 $ 262 $ 277 Operating Cash Flow $ 49 $ 7 $ 27 Capital Expenditures $ 20 $ 33 $ 25 LTM EBITDA $ 153 $ 138 $ 111 Cash balance improved on strong operating cash flow2018 capex now expected to be $135M - $150M (YTD = $64M)Lower
Slide 8: Q418 Guidance
Revenue ($M) $133 - $141 Taxes ($M) $2 - $3 EPS $0.14 - $0.19 Diluted Shares (M) ~75 High-end demand expectations are positiveHigh-end IC logic up on Asia foundry demandHigh-end IC memory stable to improvingHigh-end FPD mask demand should improve as AMOLED industry supply increasesExpect margin head
Slide 9: Thank you for your interest!
Thank you for your interest! For Additional Information:R. Troy Dewar, CFADirector, Investor Relations203.740.5610tdewar@photronics.com
Slide 10: Appendix
Appendix
Slide 11: IC Photomask Revenue
IC Photomask Revenue 11 Mainstream$249.9M62% High-End$151.4M38% High-End: 28nm and smaller; total may differ due to rounding
Slide 12: FPD Photomask Revenue
FPD Photomask Revenue 12 Mainstream$39.1M35% High-End$71.2M65% High-End: ≥G8 and AMOLED; total may differ due to rounding Mainstream$32.5M32% High-End$67.9M68%
Slide 13: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 14: Photronics, Inc. and Subsidiaries
PHOTRONICS, INC. AND SUBSIDIARIES (in thousands, except per share data) (Unaudited) ‘Three Months Ended July 29, April29, January28, October 29, July 30, January 29, October 30, 2018 2018 2018 2017 2017 2017 2016 GAAP Net Income $ 19,797 $ 15,189 $ 9481 $ 1049 $ 4799 $ 1484 $§ 4510 $ 6,569 Interest