Amkor Technology Reports Financial Results for the Third Quarter 2013

Selected Operating Data

In the press release above we provide adjusted gross margin, adjusted net income and adjusted earnings per diluted share for the third quarter 2013. We present these non-GAAP amounts to demonstrate the impact of the loss contingency we recognized related to our pending patent license arbitration. These measures have limitations, including that they exclude the charges for the arbitration panel award, which is an amount that the company may ultimately have to pay in cash. Furthermore, the factors affecting the calculation of the arbitration award are complex and subject to determination by the arbitration panel. Therefore, the final amount of the loss may be more than the amount we have recognized. Accordingly, these measures that exclude the loss contingency accrual should be considered in addition to, and not as a substitute for, or superior to, gross margin, net income and earnings per diluted share prepared in accordance with U.S. GAAP. Below is the reconciliation of adjusted gross margin, adjusted net income and adjusted earnings per diluted share to U.S. GAAP gross margin, net income and earnings per diluted share.

Non-GAAP Financial Measures Reconciliation:    
Q3 2013
Gross margin 18.4 %
Plus: Loss contingency divided by net sales   1.3   %
Adjusted gross margin   19.7   %
 
(In millions)
Net income $ 25
Plus: Loss contingency, net of tax   10  
Adjusted net income $ 35  
 
Earnings per diluted share $ 0.11
Plus: Loss contingency per diluted share   0.04  
Adjusted earnings per diluted share $ 0.15  
 
 

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

 
   

For the Three Months Ended
September 30,

   

For the Nine Months Ended
September 30,

2013     2012 2013     2012
(In thousands, except per share data)
Net sales $ 767,987 $ 695,353 $ 2,201,575 $ 2,036,890
Cost of sales   626,979     578,566     1,807,235     1,725,802  
Gross profit 141,008 116,787 394,340 311,088
Operating expenses:
Selling, general and administrative 64,347 49,297 189,524 160,041
Research and development   18,647     13,472     47,261     40,764  
Total operating expenses   82,994     62,769     236,785     200,805  
Operating income   58,014     54,018     157,555     110,283  
Other expense (income):
Interest expense 26,104 19,689 71,921 60,727
Interest expense, related party 1,243 3,493 7,927 10,477
Interest income (1,605 ) (772 ) (3,108 ) (2,489 )
Foreign currency (gain) loss, net (2,716 ) 2,394 (1,841 ) 4,461
Loss on debt retirement, net 11,619
Equity in earnings of unconsolidated affiliate (3,179 ) (2,541 ) (4,679 ) (5,421 )
Other income, net   (7 )   (359 )   (344 )   (1,511 )
Total other expense, net   19,840     21,904     81,495     66,244  
Income before income taxes 38,174 32,114 76,060 44,039
Income tax expense   12,170     9,538     5,961     9,009  
Net income 26,004 22,576 70,099 35,030
Net income attributable to noncontrolling interests   (655 )   (259 )   (1,641 )   (358 )
Net income attributable to Amkor $ 25,349   $ 22,317   $ 68,458   $ 34,672  
 
Net income attributable to Amkor per common share:
Basic $ 0.12   $ 0.14   $ 0.38   $ 0.21  
Diluted $ 0.11   $ 0.11   $ 0.33   $ 0.19  
 
Shares used in computing per common share amounts:
Basic 216,499 154,365 176,839 162,699
Diluted 235,143 237,060 235,119 245,431
 
 

AMKOR TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

 
   

September 30,
2013

   

December 31,
2012

(In thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 591,310 $ 413,048
Restricted cash 2,681 2,680
Accounts receivable:
Trade, net of allowances 429,788 389,699
Other 4,210 13,098
Inventories 222,663 227,439
Other current assets   38,131     45,444  
Total current assets 1,288,783 1,091,408
Property, plant and equipment, net 1,947,448 1,819,969
Intangibles, net 4,058 4,766
Investments 105,097 38,690
Restricted cash 2,264 2,308
Other assets   129,268     68,074  
Total assets $ 3,476,918   $ 3,025,215  
 
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt $ 56,350 $
Trade accounts payable 432,490 439,663
Accrued expenses   290,843     212,964  
Total current liabilities 779,683 652,627
Long-term debt 1,519,527 1,320,000
Long-term debt, related party 75,000 225,000
Pension and severance obligations 160,550 139,379
Other non-current liabilities   12,801     21,415  
Total liabilities   2,547,561     2,358,421  
Equity:
Amkor stockholders’ equity:
Preferred stock
Common stock 262 198
Additional paid-in capital 1,811,178 1,614,143
Accumulated deficit (688,186 ) (756,644 )
Accumulated other comprehensive income 6,840 11,241
Treasury stock   (211,217 )   (210,983 )
Total Amkor stockholders’ equity 918,877 657,955
Noncontrolling interests in subsidiaries   10,480     8,839  
Total equity   929,357     666,794  
Total liabilities and equity $ 3,476,918   $ 3,025,215  
 
 

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

 
   

For the Nine Months Ended
September 30,

2013     2012
(In thousands)
Cash flows from operating activities:
Net income $ 70,099 $ 35,030
Depreciation and amortization 302,007 272,891
Loss on debt retirement, net 11,619
Other operating activities and non-cash items (12,728 ) (724 )
Changes in assets and liabilities   4,248     (22,761 )
Net cash provided by operating activities   375,245     284,436  
 
Cash flows from investing activities:
Purchases of property, plant and equipment (402,004 ) (380,344 )
Acquisition of business, net of cash acquired (41,865 )
Proceeds from the sale of property, plant and equipment 26,505 3,759
Payments from unconsolidated affiliate 8,843 13,684
Investment in unconsolidated affiliate (67,372 )
Other investing activities   (1,015 )   1,451  
Net cash used in investing activities   (476,908 )   (361,450 )
 
Cash flows from financing activities:
Borrowings under revolving credit facilities 5,000
Payments under revolving credit facilities (5,000 )
Borrowings under short-term debt 30,000
Payments of short-term debt (40,000 )
Proceeds from issuance of long-term debt 293,000 562,528
Payments of long-term debt, net (272,976 )
Payments for debt issuance costs (3,216 ) (6,007 )
Payments for the retirement of debt (11,619 )
Payments for repurchase of common stock (80,946 )
Proceeds from the issuance of stock through share-based compensation plans 181
Payments of tax withholding for restricted shares   (234 )   (546 )
Net cash provided by financing activities   277,931     192,234  
 
Effect of exchange rate fluctuations on cash and cash equivalents 1,994 (766 )
 
Net increase in cash and cash equivalents 178,262 114,454
Cash and cash equivalents, beginning of period   413,048     434,631  
Cash and cash equivalents, end of period $ 591,310   $ 549,085  



« Previous Page 1 | 2 | 3 | 4 | 5  Next Page »



Review Article Be the first to review this article
CST Webinar Series

EMA:

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Retail Therapy: Jump starting Black Friday
Peggy AycinenaIP Showcase
by Peggy Aycinena
REUSE 2016: Addressing the Four Freedoms
More Editorial  
Jobs
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
AE-APPS SUPPORT/TMM for EDA Careers at San Jose-SOCAL-AZ, CA
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
ACCOUNT MANAGER MUNICH GERMANY EU for EDA Careers at MUNICH, Germany
Upcoming Events
Zuken Innovation World 2017, April 24 - 26, 2017, Hilton Head Marriott Resort & Spa in Hilton Head Island, SC at Hilton Head Marriott Resort & Spa Hilton Head Island NC - Apr 24 - 26, 2017
CST Webinar Series



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy