Amkor Technology Reports Record Financial Results for the Third

Amkor Technology Reports Record Financial Results for the Third Quarter 2021

Selected Operating Data

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, 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:
	Q3 2021		Q2 2021		Q3 2020
	(in millions)
EBITDA Data:
Net income	$	182	$	126	$	93
Plus: Interest expense	13		13		16
Plus: Income tax expense	17		16		16
Plus: Depreciation & amortization	146		140		130
EBITDA	$	358	$	295	$	255

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

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2021			2020			2021			2020
	(In thousands, except per share data)
Net sales	$	1,681,000		$	1,354,023		$	4,413,685		$	3,679,548
Cost of sales	1,356,168			1,112,938			3,550,499			3,057,235
Gross profit	324,832			241,085			863,186			622,313
Selling, general and administrative	72,581			77,781			223,538			224,623
Research and development	40,790			35,835			128,624			99,624
Total operating expenses	113,371			113,616			352,162			324,247
Operating income	211,461			127,469			511,024			298,066
Interest expense	12,896			16,404			38,333			49,461
Other (income) expense, net	(501		)	2,415			(508		)	1,567
Total other expense, net	12,395			18,819			37,825			51,028
Income before taxes	199,066			108,650			473,199			247,038
Income tax expense	17,219			15,753			44,875			33,504
Net income	181,847			92,897			428,324			213,534
Net income attributable to non-controlling interests	(993		)	(746		)	(1,855		)	(2,070		)
Net income attributable to Amkor	$	180,854		$	92,151		$	426,469		$	211,464

Net income attributable to Amkor per common share:
Basic	$	0.74		$	0.38		$	1.75		$	0.88
Diluted	$	0.74		$	0.38		$	1.74		$	0.87

Shares used in computing per common share amounts:
Basic	244,100			241,675			243,746			241,232
Diluted	245,942			242,592			245,611			241,937

AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (Unaudited)

	September 30, 2021			December 31, 2020
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	545,592		$	698,002
Restricted cash	929			1,007
Short-term investments	244,470			133,769
Accounts receivable, net of allowances	1,289,617			962,643
Inventories	445,918			297,293
Other current assets	48,598			40,218
Total current assets	2,575,124			2,132,932
Property, plant and equipment, net	2,901,564			2,566,002
Operating lease right of use assets	146,210			147,236
Goodwill	25,351			27,325
Restricted cash	3,508			3,188
Other assets	118,691			145,628
Total assets	$	5,770,448		$	5,022,311
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt	$	140,380		$	149,007
Trade accounts payable	815,877			636,434
Capital expenditures payable	393,660			181,339
Accrued expenses	389,068			349,207
Total current liabilities	1,738,985			1,315,987
Long-term debt	884,236			1,005,339
Pension and severance obligations	145,633			159,610
Long-term operating lease liabilities	76,955			84,420
Other non-current liabilities	164,960			102,996
Total liabilities	3,010,769			2,668,352

Stockholders’ equity:
Preferred stock	—			—
Common stock	290			289
Additional paid-in capital	1,973,207			1,953,378
Retained earnings	959,641			562,502
Accumulated other comprehensive income (loss)	15,936			27,270
Treasury stock	(219,061		)	(217,740		)
Total Amkor stockholders’ equity	2,730,013			2,325,699
Non-controlling interests in subsidiaries	29,666			28,260
Total equity	2,759,679			2,353,959
Total liabilities and equity	$	5,770,448		$	5,022,311

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

	For the Nine Months Ended September 30,
	2021			2020
	(In thousands)
Cash flows from operating activities:
Net income	$	428,324		$	213,534
Depreciation and amortization	420,970			377,722
Other operating activities and non-cash items	22,222			20,368
Changes in assets and liabilities	(239,897		)	(177,576		)
Net cash provided by operating activities	631,619			434,048
Cash flows from investing activities:
Payments for property, plant and equipment	(491,425		)	(275,531		)
Proceeds from sale of property, plant and equipment	2,722			2,710
Payments for short-term investments	(348,822		)	(475,696		)
Proceeds from sale of short-term investments	70,085			37,633
Proceeds from maturities of short-term investments	165,774			86,216
Other investing activities	(34,703		)	13,331
Net cash used in investing activities	(636,369		)	(611,337		)
Cash flows from financing activities:
Proceeds from revolving credit facilities	—			312,000
Payments of revolving credit facilities	—			(332,000		)
Proceeds from short-term debt	15,514			86,769
Payments of short-term debt	(14,228		)	(76,004		)
Proceeds from issuance of long-term debt	154,784			225,985
Payments of long-term debt	(250,402		)	(370,426		)
Payments of finance lease obligations	(12,785		)	(7,193		)
Payments of dividends	(38,993		)	—
Other financing activities	9,462			7,707
Net cash used in financing activities	(136,648		)	(153,162		)
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash	(10,770		)	2,696
Net decrease in cash, cash equivalents and restricted cash	(152,168		)	(327,755		)
Cash, cash equivalents and restricted cash, beginning of period	702,197			898,532
Cash, cash equivalents and restricted cash, end of period	$	550,029		$	570,777

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