Photronics, Inc. Q1 2022 Financial Results Conference Call February 23, 2022 PHOTRONICS, INC. PHOTRONICS, INC. Safe Harbor Statement This presentation and some of our comments during this presentation 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. We refer you to the documents the Company files from time to time with the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission file number 0-15451 PHOTRONICS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization ...

Photronics, Inc. (NASDAQ:PLAB) Q4 2021 Results Earnings Conference Call December 8, 2021 8:30 AM ET Company Participants John Jordan - Executive Vice President and Chief Financial Officer Peter Kirlin - Chief Executive Officer Christopher Progler - Executive Vice President, Chief Technology Officer, Strategic Planning Conference Call Participants Brian Chin - Stifel Nicolaus Thomas Diffely - D.A. Davidson & Co. Operator Good day and thank you for standing by. Welcome to Photronics Fourth Quarter Fiscal Year ...

Photronics, Inc. Q4 2021 Financial Results Conference Call December 8, 2021 PHOTRONICS, INC. PHOTRONICS, INC. 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. Actual events or results may differ materially from those presented. These statements include words li ...

[Financial Information](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements (unaudited)](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for the quarter ended August 1, 2021, including balance sheets, income, comprehensive income, equity, and cash flows, with detailed notes [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of August 1, 2021, total assets increased to **$1.28 billion** from **$1.19 billion** at fiscal year-end 2020, with total equity rising to **$994.5 million** and total liabilities to **$287.3 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | August 1, 2021 | October 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $530,464 | $500,139 | | **Total Assets** | $1,281,757 | $1,188,182 | | **Total Current Liabilities** | $167,617 | $142,939 | | **Total Liabilities** | $287,296 | $225,916 | | **Total Equity** | $994,461 | $962,266 | [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q3 2021 revenue increased to **$170.6 million** from **$157.9 million** year-over-year, with net income attributable to shareholders rising to **$17.1 million**, while nine-month revenue grew to **$482.5 million** with net income at **$35.6 million** Income Statement Summary (in thousands, except per share data) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $170,643 | $157,895 | $482,473 | $460,405 | | **Gross Profit** | $45,325 | $37,734 | $115,103 | $102,769 | | **Operating Income** | $28,462 | $19,936 | $61,035 | $48,943 | | **Net Income to Photronics, Inc.** | $17,076 | $10,776 | $35,638 | $27,360 | | **Diluted EPS** | $0.28 | $0.17 | $0.57 | $0.42 | [Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income attributable to shareholders significantly decreased to **$6.8 million** in Q3 2021 from **$19.5 million** in Q3 2020, primarily due to a **$10.5 million** loss from foreign currency translation adjustments - Foreign currency translation adjustments resulted in a loss of **$(10,482) thousand** in Q3 2021, compared to a gain of **$10,659 thousand** in Q3 2020, significantly impacting comprehensive income[22](index=22&type=chunk) [Condensed Consolidated Statements of Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Total equity increased to **$994.5 million** by August 1, 2021, from **$962.3 million** at October 31, 2020, driven by **$50.2 million** in net income, partially offset by **$35.8 million** in treasury stock purchases - Key changes in equity for the nine months ended August 1, 2021, include **$50.2 million** in net income and **$35.8 million** used for treasury stock purchases[26](index=26&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first nine months of fiscal 2021, net cash from operating activities increased to **$113.1 million**, while cash used in investing activities rose to **$86.7 million**, and financing activities used **$26.4 million** for share repurchases Cash Flow Summary (Nine Months Ended, in thousands) | Cash Flow Activity | August 1, 2021 | August 2, 2020 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $113,096 | $78,264 | | **Net cash used in investing activities** | $(86,696) | $(31,569) | | **Net cash (used in) provided by financing activities** | $(26,355) | $4,093 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail key accounting policies and events, including the company's role as a leading photomask manufacturer, the consolidation of the PDMCX joint venture, revenue recognition, new finance leases, and the share repurchase program - The company is a leading global manufacturer of photomasks, essential for integrated circuits (ICs) and flat-panel displays (FPDs), operating eleven manufacturing facilities worldwide[30](index=30&type=chunk) - The PDMCX joint venture in Xiamen, China, is identified as a Variable Interest Entity (VIE) for which Photronics is the primary beneficiary, necessitating consolidation of its financial results[46](index=46&type=chunk) Revenue by Geography (Nine Months Ended, in thousands) | Geography | 2021 | 2020 | | :--- | :--- | :--- | | Taiwan | $179,441 | $182,463 | | Korea | $118,597 | $116,485 | | United States | $78,447 | $78,276 | | China | $77,391 | $58,374 | | Europe | $27,269 | $23,562 | - In fiscal 2021, the company entered into two major finance leases for high-end equipment, including a **$7.2 million** lease for an inspection tool and a **$35.5 million** lease for a lithography tool[76](index=76&type=chunk)[77](index=77&type=chunk) - Under a **$100 million** share repurchase program authorized in September 2020, the company has repurchased **4.7 million** shares for **$53.3 million** since inception[107](index=107&type=chunk)[108](index=108&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports strong Q3 2021 results with an **8.1%** year-over-year revenue increase to **$170.6 million**, improved gross margin to **26.6%**, and a solid liquidity position of **$283.2 million** in cash, with a positive business outlook [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Q3 2021 revenue grew **8.1%** year-over-year to **$170.6 million**, driven by **8.4%** IC revenue growth and **7.4%** FPD revenue growth, with gross margin expanding to **26.6%** and operating income boosted by a **$3.5 million** gain Revenue Change by Product Type (Q3 FY21 vs Q3 FY20) | Product Type | Revenue in Q3 FY21 (M) | Increase (M) | Percent Change | | :--- | :--- | :--- | :--- | | **Total IC** | $117.8 | $9.1 | 8.4% | | **Total FPD** | $52.9 | $3.6 | 7.4% | | **Total Revenue** | $170.6 | $12.7 | 8.1% | - IC revenue growth was primarily driven by strong demand from node migrations and increased outsourcing of non-EUV production from captive suppliers[131](index=131&type=chunk) - FPD revenue increased due to strong demand for high-end AMOLED displays in mobile applications and new designs for G10.5+ panels[132](index=132&type=chunk) - Gross margin increased by **2.7 percentage points** in Q3 FY21 compared to Q3 FY20, primarily due to higher revenue and improved pricing for certain mainstream IC nodes[134](index=134&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position in Q3 2021 with **$283.2 million** in cash, access to a **$50 million** credit facility, **$22.9 million** in China borrowing capacity, and **$56.9 million** in capital expenditure commitments - As of August 1, 2021, cash and cash equivalents totaled **$283.2 million**, with **$217.2 million** held by foreign subsidiaries[149](index=149&type=chunk) - Capital expenditure commitments for high-end and mainstream tools totaled approximately **$56.9 million**[151](index=151&type=chunk) - The share repurchase program authorized in September 2020 had approximately **$46.8 million** remaining under its authorization as of August 1, 2021[152](index=152&type=chunk) [Business Outlook](index=37&type=section&id=Business%20Outlook) Management anticipates continued strength in IC design activity and FPD market growth, driven by increased capital spending from semiconductor and panel makers and broader AMOLED adoption - The company anticipates favorable trends in IC, including strong high-end logic and mainstream demand, to continue through Q4 and potentially beyond[157](index=157&type=chunk) - FPD growth is expected from recent capacity expansions and increased mobile demand as more devices adopt high-value AMOLED technology[157](index=157&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks are foreign currency exchange rate fluctuations and interest rate changes, with a hypothetical **10%** adverse currency movement potentially resulting in a **$36.0 million** pre-tax loss - The company's financial performance may be affected by fluctuations in the exchange rates of several major international currencies[159](index=159&type=chunk) - As of August 1, 2021, a hypothetical **10%** adverse currency movement would have resulted in a net unrealized pre-tax loss of **$36.0 million**, with significant exposures to the Chinese renminbi, South Korean won, and New Taiwan Dollar[161](index=161&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of August 1, 2021, due to an un-remediated material weakness in internal control over financial reporting related to debt covenant compliance monitoring - Management concluded that disclosure controls and procedures were not effective as of August 1, 2021, due to a material weakness in internal control over financial reporting[164](index=164&type=chunk) - The un-remediated material weakness pertains to the accuracy and completeness of information used for monitoring compliance with debt agreement covenants[165](index=165&type=chunk) - Despite the material weakness, management concluded that the financial statements in the Form 10-Q are fairly presented in all material respects[166](index=166&type=chunk) [Other Information](index=38&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company reported a favorable appellate court decision in South Korea regarding a 2016 tax filing, with other ongoing legal claims deemed immaterial to financial statements - An appellate court in South Korea decided on August 26, 2021, not to impose a **$0.03 million** fine related to a 2016 tax filing dispute[111](index=111&type=chunk) [Issuer Purchases of Equity Securities](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchases during Q3 2021, including **1.0 million** shares repurchased at an average price of **$12.97** per share under its publicly announced program Share Repurchase Activity (Q3 2021) | Period | Total Shares Purchased (millions) | Average Price Paid Per Share | Dollar Value Remaining (millions) | | :--- | :--- | :--- | :--- | | May 3 – May 30, 2021 | 0.8 | $12.86 | $49.3 | | May 31 – June 27, 2021 | 0.2 | $13.43 | $46.8 | | **Total** | **1.0** | **$12.97** | **-** | [Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications under Sarbanes-Oxley Act Sections 302 and 906, and Inline XBRL financial data files - The exhibits filed with this report include CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906, along with Inline XBRL documents[173](index=173&type=chunk)

Photronics, Inc. (NASDAQ:PLAB) Q3 2021 Earnings Conference Call August 25, 2021 8:30 AM ET Company Participants Troy Dewar - Vice President-Investor Relations Peter Kirlin - Chief Executive Officer John Jordan - Chief Financial Officer Chris Progler - Chief Technology Officer Conference Call Participants Tom Diffely - D.A. Davidson Gus Richard - Northland Capital Markets Orin Hirschman - AIGH Investment Partners Operator Ladies and gentlemen, thank you for standing by, and welcome to Photronics Third Quart ...

Photronics, Inc. Q3 2021 Financial Results Conference Call August 25, 2021 PHOTRONICS, INC. PHOTRONICS, INC. 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. Actual events or results may differ materially from those presented. These statements include words li ...

Global Merchant Photomask Leader Stifel 2021 Virtual Cross Sector Insight Conference June 8, 2021 PHOTRONICS, INC. PHOTRONICS, INC. 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. Actual events or results may differ materially from those presented. These sta ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 2, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission file number 0-15451 PHOTRONICS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organiz ...

Photronics, Inc. (NASDAQ:PLAB) Q2 2021 Earnings Conference Call May 26, 2021 8:30 AM ET Company Participants Troy Dewar – Vice President-Investor Relations Peter Kirlin – Chief Executive Officer John Jordan – Chief Financial Officer Chris Progler – Chief Technology Officer Conference Call Participants Patrick Ho – Stifel Gus Richard – Northland Tom Diffely – D.A. Davidson Orin Hirschman – AIGH Operator Good morning, ladies and gentlemen, and welcome to the Photronics Q2 2021 Earnings Results Conference Call ...