Amkor Technology Reports Financial Results for the Second

Amkor Technology Reports Financial Results for the Second Quarter 2022

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, 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 2022		Q1 2022		Q2 2021
EBITDA Data:
Net income	$	125	$	171	$	126
Plus: Interest expense		15		14		13
Plus: Income tax expense		11		30		16
Plus: Depreciation & amortization		151		148		140
EBITDA	$	302	$	363	$	295

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,
	2022			2021			2022			2021
Net sales	$	1,504,868		$	1,406,535		$	3,101,684		$	2,732,685
Cost of sales		1,255,713			1,133,715			2,527,199			2,194,331
Gross profit		249,155			272,820			574,485			538,354
Selling, general and administrative		68,868			74,189			145,827			150,957
Research and development		37,478			43,516			75,841			87,834
Total operating expenses		106,346			117,705			221,668			238,791
Operating income		142,809			155,115			352,817			299,563
Interest expense		14,593			12,764			28,741			25,437
Other (income) expense, net		(8,041	)		(96	)		(13,137	)		(7	)
Total other expense, net		6,552			12,668			15,604			25,430
Income before taxes		136,257			142,447			337,213			274,133
Income tax expense		10,788			15,989			40,516			27,656
Net income		125,469			126,458			296,697			246,477
Net income attributable to non-controlling interests		(691	)		(652	)		(1,256	)		(862	)
Net income attributable to Amkor	$	124,778		$	125,806		$	295,441		$	245,615

Net income attributable to Amkor per common share:
Basic	$	0.51		$	0.52		$	1.21		$	1.01
Diluted	$	0.51		$	0.51		$	1.20		$	1.00

Shares used in computing per common share amounts:
Basic		244,592			243,863			244,498			243,566
Diluted		245,855			245,551			245,938			245,372

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

	June 30, 2022			December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	733,922		$	826,744
Restricted cash		—			962
Short-term investments		375,137			251,530
Accounts receivable, net of allowances		1,169,028			1,258,767
Inventories		636,969			484,959
Other current assets		48,831			33,601
Total current assets		2,963,887			2,856,563
Property, plant and equipment, net		3,059,978			2,871,058
Operating lease right of use assets		168,618			159,742
Goodwill		20,787			24,516
Restricted cash		3,451			3,815
Other assets		173,941			122,860
Total assets	$	6,390,662		$	6,038,554
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt	$	127,998		$	153,008
Trade accounts payable		859,455			828,727
Capital expenditures payable		344,301			210,875
Short-term operating lease liability		68,099			64,233
Accrued expenses		385,109			422,892
Total current liabilities		1,784,962			1,679,735
Long-term debt		981,220			984,988
Pension and severance obligations		109,924			120,472
Long-term operating lease liabilities		75,461			83,937
Other non-current liabilities		211,545			196,876
Total liabilities		3,163,112			3,066,008

Stockholders’ equity:
Preferred stock		—			—
Common stock		291			290
Additional paid-in capital		1,985,992			1,977,134
Retained earnings		1,434,906			1,163,939
Accumulated other comprehensive income (loss)		(5,747	)		19,978
Treasury stock		(219,147	)		(219,065	)
Total Amkor stockholders’ equity		3,196,295			2,942,276
Non-controlling interests in subsidiaries		31,255			30,270
Total equity		3,227,550			2,972,546
Total liabilities and equity	$	6,390,662		$	6,038,554

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

	For the Six Months Ended June 30,
	2022			2021
Cash flows from operating activities:
Net income	$	296,697		$	246,477
Depreciation and amortization		299,341			274,991
Other operating activities and non-cash items		(10,041	)		305
Changes in assets and liabilities		(123,728	)		(65,442	)
Net cash provided by operating activities		462,269			456,331
Cash flows from investing activities:
Payments for property, plant and equipment		(340,208	)		(273,617	)
Proceeds from sale of property, plant and equipment		773			2,249
Payments for short-term investments		(298,351	)		(173,307	)
Proceeds from sale of short-term investments		14,120			45,396
Proceeds from maturities of short-term investments		155,910			103,116
Other investing activities		(58,916	)		(25,332	)
Net cash used in investing activities		(526,672	)		(321,495	)
Cash flows from financing activities:
Proceeds from short-term debt		18,112			3,679
Payments of short-term debt		(12,048	)		(10,431	)
Proceeds from issuance of long-term debt		190,000			120,992
Payments of long-term debt		(155,284	)		(184,212	)
Payments of finance lease obligations		(15,943	)		(6,633	)
Payments of dividends		(24,473	)		(29,221	)
Other financing activities		(5,089	)		8,287
Net cash used in financing activities		(4,725	)		(97,539	)
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash		(25,020	)		(10,274	)
Net increase (decrease) in cash, cash equivalents and restricted cash		(94,148	)		27,023
Cash, cash equivalents and restricted cash, beginning of period		831,521			702,197
Cash, cash equivalents and restricted cash, end of period	$	737,373		$	729,220

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