Second quarter 2020 outlook (unless otherwise noted):
- Net sales of $1.0 billion to $1.1 billion
- Gross margin of 9.5% to 13.5%
- Net income of ($32) million to $19 million, or ($0.13) to $0.08 per diluted share
- Full year 2020 capital expenditures of approximately $550 million
Conference Call Information
Amkor will conduct a conference call on Monday, April 27, 2020, at 5:00 p.m. Eastern Time. This call may include material information not included in this press release. This call is being webcast and can be accessed at Amkor’s website: www.amkor.com. You may also access the call by dialing 1-877-645-6380 or 1-404-991-3911. A replay of the call will be made available at Amkor’s website or by dialing 1-855-859-2056 or 1-404-537-3406 (conference ID 3086586). The webcast is also being distributed over NASDAQ OMX’s investor distribution network to both institutional and individual investors. Institutional investors can access the call via NASDAQ OMX’s password-protected event management site, Street Events ( www.streetevents.com).
About Amkor Technology, Inc.
Amkor Technology, Inc. is one of the world’s largest providers of outsourced semiconductor packaging and test services. Founded in 1968, Amkor pioneered the outsourcing of IC packaging and test, and is now a strategic manufacturing partner for the world’s leading semiconductor companies, foundries and electronics OEMs. Amkor’s operational base includes production facilities, product development centers, and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the USA. For more information, visit www.amkor.com.
AMKOR TECHNOLOGY, INC. Selected Operating Data |
||||||||||||
|
Q1 2020 |
|
Q4 2019 |
|
Q1 2019 |
|||||||
Net Sales Data: |
|
|
|
|
|
|||||||
Net sales (in millions): |
|
|
|
|
|
|||||||
Advanced products (1) |
$ |
705 |
|
|
$ |
667 |
|
|
$ |
422 |
|
|
Mainstream products (2) |
448 |
|
|
511 |
|
|
473 |
|
||||
Total net sales |
$ |
1,153 |
|
|
$ |
1,178 |
|
|
$ |
895 |
|
|
|
|
|
|
|
|
|||||||
Packaging services |
85 |
% |
|
84 |
% |
|
82 |
% |
||||
Test services |
15 |
% |
|
16 |
% |
|
18 |
% |
||||
|
|
|
|
|
|
|
|||||||
| Net sales from top ten customers |
67 |
% |
|
65 |
% |
|
66 |
% |
||||
|
|
|
|
|
|
|
|||||||
| End Market Data: |
|
|
|
|
|
|||||||
| Communications (handheld devices, smartphones, tablets) |
38 |
% |
|
37 |
% |
|
38 |
% |
||||
| Consumer (connected home, set-top boxes, televisions, visual imaging, wearables) |
24 |
% |
|
24 |
% |
|
14 |
% |
||||
| Automotive, industrial and other (driver assist, infotainment, performance, safety) |
23 |
% |
|
25 |
% |
|
28 |
% |
||||
| Computing (datacenter, infrastructure, PC/laptop, storage) |
15 |
% |
|
14 |
% |
|
20 |
% |
||||
| Total |
100 |
% |
|
100 |
% |
|
100 |
% |
||||
|
|
|
|
|
|
|
|||||||
| Gross Margin Data: |
|
|
|
|
|
|||||||
| Net sales |
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
||||
| Cost of sales: |
|
|
|
|
|
|||||||
| Materials |
45.3 |
% |
|
42.6 |
% |
|
38.0 |
% |
||||
| Labor |
14.2 |
% |
|
13.9 |
% |
|
17.4 |
% |
||||
| Other manufacturing |
24.1 |
% |
|
24.6 |
% |
|
31.1 |
% |
||||
| Gross margin |
16.4 |
% |
|
18.9 |
% |
|
13.5 |
% |
||||
| (1) Advanced products include flip chip and wafer-level processing and related test services |
||||||||||||
| (2) Mainstream products include wirebond packaging and related test services |
||||||||||||
| AMKOR TECHNOLOGY, INC. Selected Operating Data |
||||||||||||
| In this press release, 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: |
|
|
|
|
|
|||||||
|
|
Q1 2020 |
|
Q4 2019 |
|
Q1 2019 |
|||||||
|
|
(in millions) |
|||||||||||
| EBITDA Data: |
|
|
|
|
|
|||||||
| Net income |
$ |
64 |
|
|
$ |
100 |
|
|
$ |
(23 |
) |
|
| Plus: Interest expense |
17 |
|
|
17 |
|
|
19 |
|
||||
| Plus: Income tax expense |
5 |
|
|
1 |
|
|
21 |
|
||||
| Plus: Depreciation & amortization |
124 |
|
|
126 |
|
|
136 |
|
||||
| EBITDA |
$ |
210 |
|
|
$ |
244 |
|
|
$ |
153 |
|
|
| AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
||||||||
|
|
For the Three Months Ended March 31, |
|||||||
|
|
2020 |
|
2019 |
|||||
|
|
(In thousands, except per share data) |
|||||||
| Net sales |
$ |
1,152,616 |
|
|
$ |
894,964 |
|
|
| Cost of sales |
963,708 |
|
|
774,203 |
|
|||
| Gross profit |
188,908 |
|
|
120,761 |
|
|||
| Selling, general and administrative |
72,582 |
|
|
71,587 |
|
|||
| Research and development |
32,253 |
|
|
35,754 |
|
|||
| Total operating expenses |
104,835 |
|
|
107,341 |
|
|||
| Operating income |
84,073 |
|
|
13,420 |
|
|||
| Interest expense |
17,045 |
|
|
19,273 |
|
|||
| Other (income) expense, net |
(2,315 |
) |
|
(4,565 |
) |
|||
| Total other expense, net |
14,730 |
|
|
14,708 |
|
|||
| Income (loss) before taxes |
69,343 |
|
|
(1,288 |
) |
|||
| Income tax expense |
4,846 |
|
|
21,380 |
|
|||
| Net income (loss) |
64,497 |
|
|
(22,668 |
) |
|||
| Net income attributable to non-controlling interests |
(608 |
) |
|
(211 |
) |
|||
| Net income (loss) attributable to Amkor |
$ |
63,889 |
|
|
$ |
(22,879 |
) |
|
|
|
|
|
|
|||||
| Net income (loss) attributable to Amkor per common share: |
|
|
|
|||||
| Basic |
$ |
0.27 |
|
|
$ |
(0.10 |
) |
|
| Diluted |
$ |
0.26 |
|
|
$ |
(0.10 |
) |
|
|
|
|
|
|
|||||
| Shares used in computing per common share amounts: |
|
|
|
|||||
| Basic |
240,919 |
|
|
239,414 |
|
|||
| Diluted |
241,333 |
|
|
239,414 |
|
|||
| AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||
|
|
March 31, 2020 |
|
December 31, 2019 |
|||||
|
|
(In thousands) |
|||||||
| ASSETS |
||||||||
| Current assets: |
|
|
|
|||||
| Cash and cash equivalents |
$ |
941,447 |
|
|
$ |
894,948 |
|
|
| Restricted cash |
610 |
|
|
610 |
|
|||
| Short-term investments |
58,263 |
|
|
6,348 |
|
|||
| Accounts receivable, net of allowances |
880,629 |
|
|
850,753 |
|
|||
| Inventories |
238,201 |
|
|
220,602 |
|
|||
| Other current assets |
34,553 |
|
|
28,272 |
|
|||
| Total current assets |
2,153,703 |
|
|
2,001,533 |
|
|||
| Property, plant and equipment, net |
2,367,746 |
|
|
2,404,850 |
|
|||
| Operating lease right of use assets |
147,985 |
|
|
148,549 |
|
|||
| Goodwill |
26,235 |
|
|
25,976 |
|
|||
| Restricted cash |
3,267 |
|
|
2,974 |
|
|||
| Other assets |
112,701 |
|
|
111,733 |
|
|||
| Total assets |
$ |
4,811,637 |
|
|
$ |
4,695,615 |
|
|
| LIABILITIES AND EQUITY |
||||||||
| Current liabilities: |
|
|
|
|||||
| Short-term borrowings and current portion of long-term debt |
$ |
141,521 |
|
|
$ |
144,479 |
|
|
| Trade accounts payable |
562,633 |
|
|
571,054 |
|
|||
| Capital expenditures payable |
107,131 |
|
|
77,044 |
|
|||
| Accrued expenses |
236,464 |
|
|
267,226 |
|
|||
| Total current liabilities |
1,047,749 |
|
|
1,059,803 |
|
|||
| Long-term debt |
1,371,501 |
|
|
1,305,755 |
|
|||
| Pension and severance obligations |
178,084 |
|
|
176,971 |
|
|||
| Long-term operating lease liabilities |
89,733 |
|
|
91,107 |
|
|||
| Other non-current liabilities |
65,945 |
|
|
71,740 |
|
|||
| Total liabilities |
2,753,012 |
|
|
2,705,376 |
|
|||
|
|
|
|
|
|||||
| Stockholders’ equity: |
|
|
|
|||||
| Preferred stock |
— |
|
|
— |
|
|||
| Common stock |
287 |
|
|
287 |
|
|||
| Additional paid-in capital |
1,931,088 |
|
|
1,927,739 |
|
|||
| Retained earnings |
297,966 |
|
|
234,077 |
|
|||
| Accumulated other comprehensive income (loss) |
19,709 |
|
|
19,115 |
|
|||
| Treasury stock |
(217,533 |
) |
|
(217,479 |
) |
|||
| Total Amkor stockholders’ equity |
2,031,517 |
|
|
1,963,739 |
|
|||
| Non-controlling interests in subsidiaries |
27,108 |
|
|
26,500 |
|
|||
| Total equity |
2,058,625 |
|
|
1,990,239 |
|
|||
| Total liabilities and equity |
$ |
4,811,637 |
|
|
$ |
4,695,615 |
|
|
| AMKOR TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||||||
|
|
||||||||
|
|
|
For the Three Months Ended March 31, |
||||||
|
|
|
2020 |
|
2019 |
||||
|
|
|
(In thousands) |
||||||
| Cash flows from operating activities: |
|
|
|
|
||||
| Net income (loss) |
|
$ |
64,497 |
|
|
$ |
(22,668 |
) |
| Depreciation and amortization |
|
123,657 |
|
|
135,835 |
|
||
| Other operating activities and non-cash items |
|
8,287 |
|
|
15,928 |
|
||
| Changes in assets and liabilities |
|
(99,852 |
) |
|
(77,038 |
) |
||
| Net cash provided by operating activities |
|
96,589 |
|
|
52,057 |
|
||
| Cash flows from investing activities: |
|
|
|
|
||||
| Payments for property, plant and equipment |
|
(55,888 |
) |
|
(203,216 |
) |
||
| Proceeds from sale of property, plant and equipment |
|
1,887 |
|
|
180 |
|
||
| Proceeds from insurance recovery for property, plant and equipment |
|
— |
|
|
1,538 |
|
||
| Payments for short-term investments |
|
(55,754 |
) |
|
— |
|
||
| Other investing activities |
|
5,163 |
|
|
(569 |
) |
||
| Net cash used in investing activities |
|
(104,592 |
) |
|
(202,067 |
) |
||
| Cash flows from financing activities: |
|
|
|
|
||||
| Proceeds from revolving credit facilities |
|
201,000 |
|
|
— |
|
||
| Proceeds from short-term debt |
|
14,086 |
|
|
29,781 |
|
||
| Payments of short-term debt |
|
(9,409 |
) |
|
(10,588 |
) |
||
| Proceeds from issuance of long-term debt |
|
24,000 |
|
|
572,375 |
|
||
| Payments of long-term debt |
|
(172,336 |
) |
|
(63,636 |
) |
||
| Payments of finance lease obligations |
|
(2,355 |
) |
|
(1,376 |
) |
||
| Other financing activities |
|
109 |
|
|
(2,848 |
) |
||
| Net cash provided by financing activities |
|
55,095 |
|
|
523,708 |
|
||
| Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash |
|
(300 |
) |
|
(829 |
) |
||
| Net increase in cash, cash equivalents and restricted cash |
|
46,792 |
|
|
372,869 |
|
||
| Cash, cash equivalents and restricted cash, beginning of period |
|
898,532 |
|
|
688,051 |
|
||
| Cash, cash equivalents and restricted cash, end of period |
|
$ |
945,324 |
|
|
$ |
1,060,920 |
|
