MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of US dollars)

(Unaudited)

Three month

Ended

Six month 

Ended

June 30,
2019

June 30,
2019

June 30,
2018

Cash flows from operating activities

Net loss

$

(9,520)

$

(43,645)

$

(18,742)

Adjustments to reconcile net loss to net cash provided by operating activities

Depreciation and amortization

8,202

16,505

15,970

Provision for severance benefits

3,289

6,406

9,165

Amortization of debt issuance costs and original issue discount

563

1,134

1,073

Loss on foreign currency, net

12,889

24,609

32,369

Restructuring and other charges

732

732

—

Stock-based compensation

772

1,441

2,810

Loss on early extinguishment of long-term borrowings, net

—

42

—

Other

(590)

(494)

1,053

Changes in operating assets and liabilities

Accounts receivable, net

(8,130)

(20,974)

5,305

Unbilled accounts receivable, net

(3,525)

6,201

887

Inventories, net

12,174

1,589

(16,797)

Other receivables

1,236

(2,969)

(4,508)

Other current assets

4,093

5,929

2,253

Accounts payable

11,263

32,137

(4,473)

Other accounts payable

(6,756)

(3,960)

(5,229)

Accrued expenses

5,422

2,880

(1,435)

Deferred revenue

(1,484)

(929)

5,413

Other current liabilities

286

(6,562)

760

Other non-current liabilities

631

1,716

1,116

Payment of severance benefits

(2,316)

(4,579)

(5,754)

Other

(401)

(54)

516

Net cash provided by operating activities

28,830

17,155

21,752

Cash flows from investing activities

Proceeds from settlement of hedge collateral

2,385

4,627

4,863

Payment of hedge collateral

(8,394)

(8,395)

(7,490)

Proceeds from disposal of plant, property and equipment

202

202

13

Purchase of plant, property and equipment

(3,793)

(15,000)

(11,432)

Payment for property related to water treatment facility arrangement

—

—

(4,283)

Payment for intellectual property registration

(410)

(642)

(574)

Collection of guarantee deposits

90

388

659

Payment of guarantee deposits

(438)

(1,330)

—

Other

—

(9)

(38)

Net cash used in investing activities

(10,358)

(20,159)

(18,282)

Cash flows from financing activities

Repurchase of long-term borrowings

—

(1,175)

—

Proceeds from exercise of stock options

101

149

435

Acquisition of treasury stock

(235)

(2,588)

—

Proceeds from property related to water treatment facility arrangement

—

—

4,283

Repayment of financing related to water treatment facility arrangement

(138)

(281)

—

Repayment of principal portion of lease liabilities

(59)

(118)

—

Net cash provided by (used in) financing activities

(331)

(4,013)

4,718

Effect of exchange rates on cash, cash equivalents and restricted cash

(200)

(1,668)

(5,081)

Net increase (decrease) in cash, cash equivalents and restricted cash

17,941

(8,685)

3,107

Cash , cash equivalents   and   restricted cash

Beginning of the period

105,812

132,438

128,575

End of the period

$

123,753

$

123,753

$

131,682