Photronics Inc. (PLAB, Financial) filed Quarterly Report for the period ended 2011-01-30.
Photronics Inc. has a market cap of $530.6 million; its shares were traded at around $9.8075 with a P/E ratio of 17.6 and P/S ratio of 1.3. Hedge Fund Gurus that owns PLAB: Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns PLAB: Donald Smith of Donald Smith & Co..
Selling, general and administrative expenses increased $0.6 million to $10.7 million in Q1-11 as compared to $10.1 million in Q1-10, primarily due to increased employee compensation and related benefit expenses.
The Company recorded an initial restructuring charge of $10.1 million in the third quarter of fiscal 2009, which included $7.7 million to write down the carrying value of the Company's Shanghai manufacturing facility to its estimated fair value at that time. In the second quarter of fiscal 2010, the Company sold its facility in Shanghai, China, for net proceeds of $12.9 million ($4.2 million of which was received as a deposit in the first quarter of fiscal 2010), which resulted in a gain of $5.4 million. The gain was recorded as a credit to the restructuring reserve in that quarter.
The Company's working capital was $81.5 million at January 30, 2011, and $86.6 million at October 31, 2010. The decrease in working capital was primarily related to repayments of long-term borrowings. Cash and cash equivalents increased to $112.7 million at January 30, 2011, as compared to $98.9 million at October 31, 2010, primarily due to increased cash generated from operations, which was partially offset by payments for capital expenditures and repayments of long-term borrowings. Net cash provided by operating activities was $41.7 million in Q1-11, as compared to $16.4 million in Q1-10, the increase primarily being due to the Company's increased net income and increases in accounts payable and accrued liabilities primarily related to capital expenditures. Net cash used in investing activities for the three months ended January 30, 2011, was $23.1 million, which was comprised primarily of capital expenditure payments. Net cash used in financing activities of $7.2 million for the three months ended January 30, 2011 was primarily comprised of net repayments of long-term borrowings.
The Company's amended revolving credit facility ("the credit facility") provides for a maximum borrowing capacity of $65 million. The credit facility bears interest at LIBOR plus a spread (3.8% at January 30, 2011), as defined in the agreement, based upon the Company's total leverage ratio. On January 5, 2011, a $10 million irrevocable stand-by letter of credit, for the purchase of manufacturing equipment, was issued under the Company's revolving credit facility. As of January 30, 2011, the Company had no outstanding borrowings under the credit facility and $55 million was available for borrowing.
Total share-based compensation expense was $0.5 million and $0.6 million for the three month periods ended January 30, 2011 and January 31, 2010, respectively, all of which is recorded in selling, general and administrative expenses. No compensation cost was capitalized as part of inventory, and no related income tax benefit was recorded in either period. As of January 30, 2011, total unrecognized compensation cost of $4.9 million is expected to be recognized over a weighted-average amortization period of 2.9 years.
Read the The complete Report
Photronics Inc. has a market cap of $530.6 million; its shares were traded at around $9.8075 with a P/E ratio of 17.6 and P/S ratio of 1.3. Hedge Fund Gurus that owns PLAB: Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns PLAB: Donald Smith of Donald Smith & Co..
Highlight of Business Operations:
Net sales for Q1-11 increased 23.0% to $120.8 million as compared to $98.2 million for Q1-10. The increase was due to increases in both IC and FPD photomask sales, primarily as a result of increased high-end unit demand, which typically have higher average selling prices (ASPs). To a lesser extent, mainstream IC photomasks also had increased sales. Revenues attributable to high-end products increased by $14.9 million to $39.2 million in Q1-11 as compared to $24.3 million in Q1-10. High-end photomask applications include mask sets for 65 nanometer and below for IC products and G7 and above technologies for FPD products. By geographic area, net sales increased in Asia in Q1-11, as compared to Q1-10, $17.9 million or 29.4%, increased in North America by $3.5 million or 12.5%, and increased in Europe by $1.2 million or 13.1%. As a percent of total net sales, net sales in Q1-11 in Asia were 65%, North America 26%, and Europe 9%; and net sales in Q1-10 in Asia were 62%, North America 28%, and Europe 10%.Selling, general and administrative expenses increased $0.6 million to $10.7 million in Q1-11 as compared to $10.1 million in Q1-10, primarily due to increased employee compensation and related benefit expenses.
The Company recorded an initial restructuring charge of $10.1 million in the third quarter of fiscal 2009, which included $7.7 million to write down the carrying value of the Company's Shanghai manufacturing facility to its estimated fair value at that time. In the second quarter of fiscal 2010, the Company sold its facility in Shanghai, China, for net proceeds of $12.9 million ($4.2 million of which was received as a deposit in the first quarter of fiscal 2010), which resulted in a gain of $5.4 million. The gain was recorded as a credit to the restructuring reserve in that quarter.
The Company's working capital was $81.5 million at January 30, 2011, and $86.6 million at October 31, 2010. The decrease in working capital was primarily related to repayments of long-term borrowings. Cash and cash equivalents increased to $112.7 million at January 30, 2011, as compared to $98.9 million at October 31, 2010, primarily due to increased cash generated from operations, which was partially offset by payments for capital expenditures and repayments of long-term borrowings. Net cash provided by operating activities was $41.7 million in Q1-11, as compared to $16.4 million in Q1-10, the increase primarily being due to the Company's increased net income and increases in accounts payable and accrued liabilities primarily related to capital expenditures. Net cash used in investing activities for the three months ended January 30, 2011, was $23.1 million, which was comprised primarily of capital expenditure payments. Net cash used in financing activities of $7.2 million for the three months ended January 30, 2011 was primarily comprised of net repayments of long-term borrowings.
The Company's amended revolving credit facility ("the credit facility") provides for a maximum borrowing capacity of $65 million. The credit facility bears interest at LIBOR plus a spread (3.8% at January 30, 2011), as defined in the agreement, based upon the Company's total leverage ratio. On January 5, 2011, a $10 million irrevocable stand-by letter of credit, for the purchase of manufacturing equipment, was issued under the Company's revolving credit facility. As of January 30, 2011, the Company had no outstanding borrowings under the credit facility and $55 million was available for borrowing.
Total share-based compensation expense was $0.5 million and $0.6 million for the three month periods ended January 30, 2011 and January 31, 2010, respectively, all of which is recorded in selling, general and administrative expenses. No compensation cost was capitalized as part of inventory, and no related income tax benefit was recorded in either period. As of January 30, 2011, total unrecognized compensation cost of $4.9 million is expected to be recognized over a weighted-average amortization period of 2.9 years.
Read the The complete Report
