EX-99.5 6 ex99_5.htm EXHIBIT 99.5

Exhibit 99.5
PHOTRONICS, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Information
(in thousands, except per share data)
(Unaudited)

|  | Three Months Ended |  |  | Year Ended |
|  | October 29, 2017 |  |  | July 30, 2017 |  |  | October 30, 2016 |  |  | October 29, 2017 |  |  | October 30, 2016 |
Reconciliation of GAAP to Non-GAAP Net Income Attributable to Photronics, Inc. Shareholders and EPS data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GAAP net income attributable to Photronics, Inc. shareholders |  | $ | 5,386 |  |  | $ | 4,001 |  |  | $ | 5,256 |  |  | $ | 13,130 |  |  | $ | 46,200 |
Income tax benefit (a) |  |  | - |  |  |  | - |  |  |  | (1,834 | ) |  |  | - |  |  |  | (4,838 | )
Gain on sale of investment, net of tax (b) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (8,753 | )
Non-GAAP net income attributable to Photronics, Inc. shareholders |  | $ | 5,386 |  |  | $ | 4,001 |  |  | $ | 3,422 |  |  | $ | 13,130 |  |  | $ | 32,609 |
Weighted average number of diluted shares outstanding |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GAAP |  |  | 69,218 |  |  |  | 69,380 |  |  |  | 68,906 |  |  |  | 69,288 |  |  |  | 76,354 |
Non-GAAP |  |  | 69,218 |  |  |  | 69,380 |  |  |  | 68,906 |  |  |  | 69,288 |  |  |  | 76,354 |
Net income per diluted share |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GAAP |  | $ | 0.08 |  |  | $ | 0.06 |  |  | $ | 0.08 |  |  | $ | 0.19 |  |  | $ | 0.64 |
Non-GAAP |  | $ | 0.08 |  |  | $ | 0.06 |  |  | $ | 0.05 |  |  | $ | 0.19 |  |  | $ | 0.47 |
Reconciliation of GAAP Net Income to Non-GAAP EBITDA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GAAP Net Income (c) |  | $ | 10,496 |  |  | $ | 4,799 |  |  | $ | 6,569 |  |  | $ | 21,289 |  |  | $ | 55,676 |
Interest expense |  |  | 578 |  |  |  | 550 |  |  |  | 616 |  |  |  | 2,235 |  |  |  | 3,366 |
Income tax expense |  |  | 2,462 |  |  |  | 333 |  |  |  | (1,337 | ) |  |  | 5,276 |  |  |  | 4,798 |
Depreciation and amortization |  |  | 22,492 |  |  |  | 21,840 |  |  |  | 22,304 |  |  |  | 86,573 |  |  |  | 82,406 |
Other items (d) |  |  | 785 |  |  |  | 984 |  |  |  | 980 |  |  |  | 3,627 |  |  |  | 3,828 |
Non-GAAP EBITDA |  | $ | 36,813 |  |  | $ | 28,506 |  |  | $ | 29,132 |  |  | $ | 119,000 |  |  | $ | 150,074 |

Notes:

(a) | Represents tax benefit primarily related to the recognition of prior period tax benefits and other tax positions no longer deemed necessary in Taiwan

(b) | Represents gain on sale of investment in a foreign entity

(c) | Includes net income attributable to noncontrolling interests, and in 2016 includes gain on sale of investment in a foreign entity

(d) | Consists of stock compensation expense