Amkor Technology Reports Record Financial Results for the Fourth

Amkor Technology Reports Record Financial Results for the Fourth Quarter and Full Year 2022

In this press release, we refer to free cash flow, which is not defined by U.S. GAAP. We define free cash flow as net cash provided by operating activities less payments for property, plant and equipment, plus proceeds from the sale of and insurance recovery for property, plant and equipment, if applicable. We believe free cash flow to be relevant and useful information to our investors because it provides them with additional information in assessing our liquidity, capital resources and financial operating results. Our management uses free cash flow in evaluating our liquidity, and our ability to service debt, and our ability to fund capital expenditures and pay dividends. However, free cash flow has certain limitations, including that it does not represent the residual cash flow available for discretionary expenditures since other, non-discretionary expenditures, such as mandatory debt service, are not deducted from the measure. The amount of mandatory versus discretionary expenditures can vary significantly between periods. This measure should be considered in addition to, and not as a substitute for, or superior to, other measures of liquidity or financial performance prepared in accordance with U.S. GAAP, such as net cash provided by operating activities. Furthermore, our definition of free cash flow may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of free cash flow to U.S. GAAP net cash provided by operating activities.

Non-GAAP Financial Measures Reconciliation:
(in millions)	2022			2021
Free Cash Flow Data:
Net cash provided by operating activities	$	1,099		$	1,121
Less: Purchases of property, plant and equipment		(908	)		(780	)
Plus: Proceeds from sale of and insurance recovery for property, plant and equipment		3			3
Free cash flow	$	194		$	344

AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited)

	For the Three Months Ended December 31,					For the Year Ended December 31,
	2022		2021			2022			2021
Net sales	$	1,906,210	$	1,724,644		$	7,091,585		$	6,138,329
Cost of sales		1,571,936		1,362,276			5,761,598			4,912,775
Gross profit		334,274		362,368			1,329,987			1,225,554
Selling, general and administrative		69,598		72,546			283,372			296,084
Research and development		39,594		37,413			149,429			166,037
Total operating expenses		109,192		109,959			432,801			462,121
Operating income		225,082		252,409			897,186			763,433
Interest expense		14,943		13,175			58,563			51,508
Other (income) expense, net		520		(2,633	)		(18,309	)		(3,141	)
Total other expense, net		15,463		10,542			40,254			48,367
Income before taxes		209,619		241,867			856,932			715,066
Income tax expense		45,731		24,584			89,890			69,459
Net income		163,888		217,283			767,042			645,607
Net income attributable to noncontrolling interests		413		(757	)		(1,219	)		(2,612	)
Net income attributable to Amkor	$	164,301	$	216,526		$	765,823		$	642,995

Net income attributable to Amkor per common share:
Basic	$	0.67	$	0.89		$	3.13		$	2.64
Diluted	$	0.67	$	0.88		$	3.11		$	2.62
Shares used in computing per common share amounts:
Basic		244,957		244,267			244,676			243,878
Diluted		246,693		245,894			246,205			245,704


AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
	December 31,
	2022			2021
ASSETS
Current assets:
Cash and cash equivalents	$	959,072		$	826,744
Restricted cash		—			962
Short-term investments		281,964			251,530
Accounts receivable, net of allowances		1,365,504			1,258,767
Inventories		629,576			484,959
Other current assets		65,123			33,601
Total current assets		3,301,239			2,856,563
Property, plant and equipment, net		3,135,614			2,871,058
Operating lease right of use assets		171,163			159,742
Goodwill		21,517			24,516
Restricted cash		3,334			3,815
Other assets		188,890			122,860
Total assets	$	6,821,757		$	6,038,554

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt	$	143,813		$	153,008
Trade accounts payable		899,164			828,727
Capital expenditures payable		146,602			210,875
Short-term operating lease liability		70,991			64,233
Accrued expenses		401,841			422,892
Total current liabilities		1,662,411			1,679,735
Long-term debt		1,088,521			984,988
Pension and severance obligations		93,540			120,472
Long-term operating lease liabilities		75,745			83,937
Other non-current liabilities		201,839			196,876
Total liabilities		3,122,056			3,066,008

Amkor stockholders’ equity:
Preferred stock		—			—
Common stock		291			290
Additional paid-in capital		1,996,344			1,977,134
Retained earnings		1,874,644			1,163,939
Accumulated other comprehensive income		16,699			19,978
Treasury stock		(219,226	)		(219,065	)
Total Amkor stockholders’ equity		3,668,752			2,942,276
Noncontrolling interests in subsidiaries		30,949			30,270
Total equity		3,699,701			2,972,546
Total liabilities and equity	$	6,821,757		$	6,038,554


AMKOR TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
	For the Year Ended December 31,
	2022			2021
Cash flows from operating activities:
Net income	$	767,042		$	645,607
Depreciation and amortization		612,702			563,582
Other operating activities and non-cash items		422			36,460
Changes in assets and liabilities		(281,410	)		(124,354	)
Net cash provided by operating activities		1,098,756			1,121,295

Cash flows from investing activities:
Payments for property, plant and equipment		(908,294	)		(779,779	)
Proceeds from sale of property, plant and equipment		3,148			3,157
Proceeds from insurance recovery for property, plant and equipment		—			104
Payments for short-term investments		(438,803	)		(414,208	)
Proceeds from sale of short-term investments		33,972			87,273
Proceeds from maturities of short-term investments		370,924			204,679
Other investing activities		(68,116	)		(45,105	)
Net cash used in investing activities		(1,007,169	)		(943,879	)

Cash flows from financing activities:
Proceeds from revolving credit facilities		80,000			—
Payments of revolving credit facilities		(80,000	)		—
Proceeds from short-term debt		29,711			15,514
Payments of short-term debt		(27,187	)		(19,927	)
Proceeds from issuance of long-term debt		366,386			353,587
Payments of long-term debt		(214,290	)		(316,635	)
Payments of finance lease obligations		(40,673	)		(20,373	)
Payments of dividends		(55,116	)		(51,213	)
Other financing activities		(3,234	)		8,945
Net cash provided by (used in) financing activities		55,597			(30,102	)

Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash		(16,299	)		(17,990	)

Net increase in cash, cash equivalents and restricted cash		130,885			129,324
Cash, cash equivalents and restricted cash, beginning of period		831,521			702,197
Cash, cash equivalents and restricted cash, end of period	$	962,406		$	831,521

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