Item 5. Market for Registrant’s Common Equity
ITEM 5.
MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES
Our common stock is traded on the NASDAQ Global Select Market ("NASDAQ") under the symbol PLAB. On December 11, 2020, the closing sale price of our common stock, per the NASDAQ Global Select Market, was $11.25. Based on available information, we estimate that we have approximately 8,400 shareholders.
To date, we have not paid any cash dividends on Photronics shares, and, for the foreseeable future, we anticipate that earnings will continue to be retained for use in our business. Further, our credit agreement limits the amount that can be paid as cash dividends on Photronics stock.
In September 2020, the Company’s board of directors authorized the repurchase of up to $100 million of its common stock, pursuant to a repurchase plan under Rule 10b5-1 of the Securities Act of 1933 (as amended) (“the Securities Act”). Share repurchases under the program commenced on September 16, 2020.
In August 2019, the Company’s board of directors authorized the repurchase of up to $100 million of its common stock, pursuant to a repurchase plan under Rule 10b5-1 of the Securities Act. This repurchase program was terminated on March 20, 2020.
In July 2018 and October 2018, the Company’s board of directors authorized the repurchase of up to $20 million and $25 million, respectively, of its common stock, to have been executed in open-market transactions or in accordance with a repurchase plan under Rule 10b5-1 of the Securities Act. The July 2018 repurchase program was completed in October 2018, and the October 2018 repurchase program was terminated on February 1, 2019.
All of the shares purchased under the above repurchase programs in fiscal 2020 were retired prior to the end of the fiscal year. All of the shares purchased under prior year repurchase programs were retired in fiscal year 2019. The tables below present additional information on the above repurchase programs.
September 2020 Authorization
Total Number of
Shares Purchased
(in millions)
Average Price
Paid
Per share
Total Number of Shares
Purchased as Part of
Publicly Announced
Program (in millions)
Dollar Value of
Shares That May
Yet Be Purchased
(in millions)
Fiscal year 2020 repurchases
September 14, 2020 – September 27, 2020
0.8
$
9.93
0.8
$
92.1
September 28, 2020 – October 31, 2020
0.9
$
10.27
0.9
$
82.5
Total
1.7
$
10.11
1.7
August 2019 Authorization
Total Number of
Shares Purchased
(in millions)
Average Price
Paid
Per share
Total Number of
Shares
Purchased as
Part of Publicly
Announced
Program
(in millions)
Dollar Value of
Shares That May
Yet Be Purchased
(in millions)
Fiscal year 2020 repurchases
November 1, 2019 – December 2, 2019
0.9
$
12.01
0.9
$
78.0
February 3, 2020 – March 1, 2020
0.1
$
12.37
0.1
$
77.0
March 2, 2020 – March 29, 2020
0.5
$
10.48
0.5
$
0.0
*
Total
1.5
$
11.54
1.5
Fiscal year 2019 repurchases
September 23, 2019 – October 31, 2019
1.0
$
11.05
1.0
$
89.0
Total
1.0
1.0
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2018 Authorizations
Total Number of
Shares Purchased
(in millions)
Average Price
Paid
Per share
Total Number of Shares
Purchased as Part of
Publicly Announced
Program (in millions)
Dollar Value of
Shares That May
Yet Be Purchased
(in millions)
Fiscal year 2019 repurchases
November 1, 2018 – November 25, 2018
0.2
$
9.49
0.2
$
20.1
November 26, 2018 – December 23, 2018
0.7
$
9.38
0.7
$
13.4
December 24, 2018 – January 27, 2019
0.2
$
9.41
0.2
$
11.2
**
Total
1.1
$
9.40
1.1
Fiscal year 2018 repurchases
Total Number of
Shares Purchased
(in millions)
Average Price
Paid
Per share
Total Number of Shares
Purchased as Part of
Publicly Announced
Program (in millions)
Dollar Value of
Shares That May
Yet Be Purchased
(in millions)
July 10, 2018 – July 29, 2018
0.8
$
8.72
0.8
$
13.2
July 30, 2018 – August 26, 2018
0.9
$
9.05
0.9
$
5.0
September 23, 2018 – October 31, 2018
0.9
$
9.46
0.9
$
21.9
Total
2.6
$
9.04
2.6
* The share repurchase program was terminated on March 20, 2020.
** The share repurchase program was terminated on February 1, 2019.
Securities authorized for issuance under equity compensation plans
The information regarding our equity compensation required to be disclosed by Item 201(d) of Regulation S-K is incorporated by reference from the Photronics, Inc. 2021 Definitive Proxy Statement in Item 12 of Part III of this report. The 2021 Definitive Proxy Statement will be filed within 120 days after our fiscal year ended October 31, 2020.
ITEM 6.
SELECTED FINANCIAL DATA
The following selected financial data (in thousands, except per share amounts and employees) is derived from our audited consolidated financial statements. The data should be read in conjunction with the audited consolidated financial statements and notes thereto, and other financial information included elsewhere in this Annual Report on Form 10-K.
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Year Ended
October 31,
October 31,
October 31,
October 29,
October 30,
2020
2019
2018
2017
2016
OPERATING DATA:
Revenue
$
609,691
$
550,660
$
535,276
$
450,678
$
483,456
Gross profit
$
134,654
$
120,841
$
131,503
$
91,315
$
118,706
Gross margin
22.1
%
21.9
%
24.6
%
20.3
%
24.6
%
Operating income
$
63,928
$
52,121
$
65,627
$
31,868
$
52,475
Operating margin
10.5
%
9.5
%
12.3
%
7.1
%
10.9
%
Effective tax rate (a)
34.5
%
20.1
%
10.7
%
19.9
%
7.9
%
Net income (a), (b), (c)
$
40,343
$
40,491
$
61,236
$
21,289
$
55,676
Net income attributable to Photronics, Inc.
shareholders (a), (b), (c)
$
33,820
$
29,793
$
42,055
$
13,130
$
46,200
Earnings per share:
Basic (a), (b), (c)
$
0.52
$
0.45
$
0.61
$
0.19
$
0.68
Diluted (a), (b), (c)
$
0.52
$
0.44
$
0.59
$
0.19
$
0.64
Weighted-average diluted number of common shares outstanding:
65,470
69,155
74,821
69,288
76,354
Net cash provided by operating activities
$
143,046
$
68,386
$
130,567
$
96,833
$
122,137
Purchases of property, plant and equipment
$
70,815
$
178,375
$
92,585
$
91,965
$
50,147
Purchases of treasury stock
$
34,394
$
21,696
$
23,111
$
-
$
-
Common shares repurchased
3,194
2,133
2,558
-
-
Employees
1,728
1,775
1,575
1,475
1,530
BALANCE SHEET DATA
As of
October 31,
October 31,
October 31,
October 29,
October 30,
2020
2019
2018
2017
2016
Working capital
$
357,200
$
275,573
$
311,655
$
367,348
$
360,269
Property, plant and equipment, net
$
631,475
$
632,441
$
571,781
$
535,197
$
506,434
Total assets
$
1,188,182
$
1,118,665
$
1,110,009
$
1,020,794
$
987,988
Long-term debt
$
54,980
$
41,887
$
-
$
57,337
$
61,860
Total Photronics, Inc. shareholders’ equity
$
804,962
$
769,892
$
759,671
$
744,564
$
710,363
Noncontrolling interests
$
157,304
$
141,200
$
144,898
$
120,731
$
115,111
(a)
In 2016, includes tax benefits in Taiwan of $4.8 million primarily related to the recognition of prior period tax benefits and other tax positions no longer deemed necessary.
(b)
In 2018, includes $0.6 million gain on sale of assets.
(c)
In 2016, includes $8.8 million gain on sale of investment in a foreign entity and $0.2 million gain on the sale of the Company’s 49.99% interest in the MP Mask joint venture.
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