Amkor Technology Reports Financial Results for the Second

Amkor Technology Reports Financial Results for the Second Quarter 2018

In the press release above we provide EBITDA, which is not defined by U.S. GAAP. We define EBITDA as net income before interest expense, income tax expense and depreciation and amortization. We believe EBITDA to be relevant and useful information to our investors because it provides additional information in assessing our financial operating results. Our management uses EBITDA in evaluating our operating performance, our ability to service debt and our ability to fund capital expenditures. However, EBITDA has certain limitations in that it does not reflect the impact of certain expenses on our consolidated statements of income, including interest expense, which is a necessary element of our costs because we have borrowed money in order to finance our operations, income tax expense, which is a necessary element of our costs because taxes are imposed by law, and depreciation and amortization, which is a necessary element of our costs because we use capital assets to generate income. EBITDA should be considered in addition to, and not as a substitute for, or superior to, operating income, net income or other measures of financial performance prepared in accordance with U.S. GAAP. Furthermore our definition of EBITDA may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of EBITDA to U.S. GAAP net income.

Non-GAAP Financial Measure Reconciliation:
	Q2 2018		Q1 2018		Q2 2017
	(in millions)
EBITDA Data:
Net income	$	33	$	10	$	120
Plus: Interest expense		21		20		22
Plus: Income tax expense		11		2		34
Plus: Depreciation & amortization		143		143		145
EBITDA*	$	208	$	175	$	321

* Q2 2017 EBITDA included a pretax gain of $108 million related to the sale of our K1 factory in Korea.


AMKOR TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
		2018			2017*			2018			2017*
	(In thousands, except per share data)
Net sales	$	1,065,684		$	1,008,385		$	2,091,003		$	1,907,669
Cost of sales		895,967			831,769			1,763,515			1,594,819
Gross profit		169,717			176,616			327,488			312,850
Selling, general and administrative		74,700			67,785			155,423			144,067
Research and development		41,076			44,281			82,005			85,849
Gain on sale of real estate		—			(108,109	)		—			(108,109	)
Total operating expenses		115,776			3,957			237,428			121,807
Operating income		53,941			172,659			90,060			191,043
Interest expense		21,127			22,158			41,138			43,412
Interest expense, related party		—			293			—			1,535
Other (income) expense, net		(11,001	)		(3,288	)		(7,569	)		7,893
Total other expense, net		10,126			19,163			33,569			52,840
Income before taxes		43,815			153,496			56,491			138,203
Income tax expense		10,631			33,466			13,112			32,141
Net income		33,184			120,030			43,379			106,062
Net income attributable to non-controlling interests		(593	)		(1,017	)		(1,244	)		(1,835	)
Net income attributable to Amkor	$	32,591		$	119,013		$	42,135		$	104,227

Net income attributable to Amkor per common share:
Basic	$	0.14		$	0.50		$	0.18		$	0.44
Diluted	$	0.14		$	0.50		$	0.18		$	0.44

Shares used in computing per common share amounts:
Basic		239,351			238,863			239,283			238,774
Diluted		239,804			239,679			239,805			239,601

* Effective January 1, 2018, we adopted Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) , utilizing the full retrospective transition method. The prior periods presented here have been revised to reflect this change.


AMKOR TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

	June 30,			December 31,
		2018			2017
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	380,262		$	596,364
Restricted cash		2,000			2,000
Accounts receivable, net of allowances		795,750			798,264
Inventories		243,019			213,649
Other current assets		37,148			33,727
Total current assets		1,458,179			1,644,004
Property, plant and equipment, net		2,754,960			2,695,065
Goodwill		25,472			25,036
Restricted cash		3,503			4,487
Other assets		139,567			139,796
Total assets	$	4,381,681		$	4,508,388
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt	$	115,057		$	123,848
Trade accounts payable		553,475			569,085
Capital expenditures payable		238,772			294,258
Accrued expenses		254,348			330,868
Total current liabilities		1,161,652			1,318,059
Long-term debt		1,214,535			1,240,581
Pension and severance obligations		184,072			182,216
Other non-current liabilities		51,264			47,823
Total liabilities		2,611,523			2,788,679

Stockholders’ equity:
Preferred stock		—			—
Common stock		285			285
Additional paid-in capital		1,906,936			1,903,357
Retained earnings (accumulated deficit)		28,232			(13,903	)
Accumulated other comprehensive income (loss)		26,385			22,519
Treasury stock		(216,087	)		(215,982	)
Total Amkor stockholders’ equity		1,745,751			1,696,276
Non-controlling interests in subsidiaries		24,407			23,433
Total equity		1,770,158			1,719,709
Total liabilities and equity	$	4,381,681		$	4,508,388


AMKOR TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	For the Six Months Ended June 30,
		2018			2017
	(In thousands)
Cash flows from operating activities:
Net income	$	43,379		$	106,062
Depreciation and amortization		285,515			287,068
Gain on sale of real estate		—			(108,109	)
Other operating activities and non-cash items		(3,239	)		(4,659	)
Changes in assets and liabilities		(119,276	)		(80,403	)
Net cash provided by operating activities		206,379			199,959
Cash flows from investing activities:
Payments for property, plant and equipment		(389,568	)		(271,651	)
Proceeds from sale of property, plant and equipment		603			130,962
Acquisition of business, net of cash acquired		—			(43,771	)
Other investing activities		2,647			(2,117	)
Net cash used in investing activities		(386,318	)		(186,577	)
Cash flows from financing activities:
Proceeds from revolving credit facilities		—			75,000
Proceeds from short-term debt		7,264			41,228
Payments of short-term debt		(31,546	)		(32,110	)
Proceeds from issuance of long-term debt		64,000			215,086
Payments of long-term debt		(77,015	)		(207,653	)
Payment of deferred consideration for purchase of facility		—			(3,890	)
Payments of capital lease obligations		(1,689	)		(2,665	)
Other financing activities		492			561
Net cash provided by (used in) financing activities		(38,494	)		85,557
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash		1,347			9,418
Net increase (decrease) in cash, cash equivalents and restricted cash		(217,086	)		108,357
Cash, cash equivalents and restricted cash, beginning of period		602,851			555,495
Cash, cash equivalents and restricted cash, end of period	$	385,765		$	663,852

« Previous Page 1 | 2 | 3 | 4 | 5 Next Page »