Amkor Technology Reports Financial Results for the Second

Amkor Technology Reports Financial Results for the Second Quarter 2023

(1) Advanced products include flip chip, memory and wafer-level processing and related test services.
(2) Mainstream products include all other wirebond packaging and related test services.

In this press release, we refer to 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, and our ability to service debt, and our ability to fund capital expenditures and pay dividends. 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:
(in millions)	Q2 2023		Q1 2023		Q2 2022
EBITDA Data:
Net income	$	64	$	45	$	125
Plus: Interest expense		14		16		15
Plus: Income tax expense		9		11		11
Plus: Depreciation & amortization		158		157		151
EBITDA	$	245	$	229	$	302

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

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2023			2022			2023			2022
Net sales	$	1,457,922		$	1,504,868		$	2,929,461		$	3,101,684
Cost of sales		1,271,052			1,255,713			2,548,170			2,527,199
Gross profit		186,870			249,155			381,291			574,485
Selling, general and administrative		64,860			68,868			143,531			145,827
Research and development		45,688			37,478			92,735			75,841
Total operating expenses		110,548			106,346			236,266			221,668
Operating income		76,322			142,809			145,025			352,817
Interest expense		14,354			14,593			30,521			28,741
Other (income) expense, net		(11,883	)		(8,041	)		(15,435	)		(13,137	)
Total other expense, net		2,471			6,552			15,086			15,604
Income before taxes		73,851			136,257			129,939			337,213
Income tax expense		9,407			10,788			20,271			40,516
Net income		64,444			125,469			109,668			296,697
Net income attributable to non-controlling interests		(158	)		(691	)		(31	)		(1,256	)
Net income attributable to Amkor	$	64,286		$	124,778		$	109,637		$	295,441

Net income attributable to Amkor per common share:
Basic	$	0.26		$	0.51		$	0.45		$	1.21
Diluted	$	0.26		$	0.51		$	0.44		$	1.20

Shares used in computing per common share amounts:
Basic		245,637			244,592			245,485			244,498
Diluted		246,964			245,855			247,046			245,938

AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)

	June 30, 2023			December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	804,834		$	959,072
Short-term investments		399,233			281,964
Accounts receivable, net of allowances		1,198,612			1,365,504
Inventories		534,477			629,576
Other current assets		61,890			65,123
Total current assets		2,999,046			3,301,239
Property, plant and equipment, net		3,309,592			3,135,614
Operating lease right of use assets		146,080			171,163
Goodwill		19,550			21,517
Restricted cash		3,428			3,334
Other assets		160,484			188,890
Total assets	$	6,638,180		$	6,821,757
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt	$	155,978		$	143,813
Trade accounts payable		701,610			899,164
Capital expenditures payable		310,387			146,602
Short-term operating lease liability		53,991			70,991
Accrued expenses		354,522			401,841
Total current liabilities		1,576,488			1,662,411
Long-term debt		975,535			1,088,521
Pension and severance obligations		88,249			93,540
Long-term operating lease liabilities		66,030			75,745
Other non-current liabilities		169,019			201,839
Total liabilities		2,875,321			3,122,056

Stockholders’ equity:
Preferred stock		—			—
Common stock		292			291
Additional paid-in capital		2,005,055			1,996,344
Retained earnings		1,947,420			1,874,644
Accumulated other comprehensive income (loss)		1,432			16,699
Treasury stock		(222,049	)		(219,226	)
Total Amkor stockholders’ equity		3,732,150			3,668,752
Non-controlling interests in subsidiaries		30,709			30,949
Total equity		3,762,859			3,699,701
Total liabilities and equity	$	6,638,180		$	6,821,757

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

	For the Six Months Ended June 30,
	2023			2022
Cash flows from operating activities:
Net income	$	109,668		$	296,697
Depreciation and amortization		314,647			299,341
Other operating activities and non-cash items		4,784			(10,041	)
Changes in assets and liabilities		(6,521	)		(123,728	)
Net cash provided by operating activities		422,578			462,269
Cash flows from investing activities:
Payments for property, plant and equipment		(282,309	)		(340,208	)
Proceeds from sale of property, plant and equipment		1,107			773
Payments for short-term investments		(355,135	)		(298,351	)
Proceeds from sale of short-term investments		47,000			14,120
Proceeds from maturities of short-term investments		193,315			155,910
Other investing activities		(22,850	)		(58,916	)
Net cash used in investing activities		(418,872	)		(526,672	)
Cash flows from financing activities:
Proceeds from revolving credit facilities		370,000			—
Payments of revolving credit facilities		(370,000	)		—
Proceeds from short-term debt		11,043			18,112
Payments of short-term debt		(11,149	)		(12,048	)
Proceeds from issuance of long-term debt		—			190,000
Payments of long-term debt		(72,061	)		(155,284	)
Payments of finance lease obligations		(31,129	)		(15,943	)
Payments of dividends		(36,874	)		(24,473	)
Other financing activities		(1,589	)		(5,089	)
Net cash used in financing activities		(141,759	)		(4,725	)
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash		(16,091	)		(25,020	)
Net decrease in cash, cash equivalents and restricted cash		(154,144	)		(94,148	)
Cash, cash equivalents and restricted cash, beginning of period		962,406			831,521
Cash, cash equivalents and restricted cash, end of period	$	808,262		$	737,373

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