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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Amkor Technology Inc | NASDAQ:AMKR | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.37 | 1.22% | 30.70 | 30.39 | 31.66 | 1,645 | 12:50:42 |
Annual Growth of 25% Drove Record Revenue and EPS
Fourth Quarter 2020 Highlights:
Full Year 2020 Highlights:
Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the fourth quarter and full year ended December 31, 2020.
“Better than expected demand for smartphone and automotive products drove fourth quarter revenue up 16% year on year to a record $1.37 billion,” said Giel Rutten, Amkor’s president and chief executive officer. “For full year 2020, we delivered record revenue of $5.05 billion, an increase of nearly $1 billion over 2019. Demand for advanced packages, particularly advanced SiP, drove strong growth in the consumer, communications and computing end markets.”
“High utilization drove gross margin over 20%, and operating income margin reached 11.6% in the fourth quarter. The improved profitability and continued spending discipline resulted in record annual EPS of $1.40,” said Megan Faust, Amkor’s executive vice president and chief financial officer. “In 2020, free cash flow doubled from 2019 to a record $221 million. We also further strengthened our balance sheet by lowering our blended borrowing rate and paying down approximately $300 million in debt, ending the year with all-time low net debt of $322 million.”
Results
Q4 2020 (1)
Q3 2020
Q4 2019 (2)
2020 (1)
2019 (3)
($ in millions, except per share amounts)
Net sales
$1,371
$1,354
$1,178
$5,051
$4,053
Gross margin
20.3%
17.8%
18.9%
17.8%
16.0%
Operating income
$159
$127
$118
$457
$233
Net income attributable to Amkor
$127
$92
$99
$338
$121
Earnings per diluted share
$0.52
$0.38
$0.41
$1.40
$0.50
EBITDA (4)
$288
$255
$244
$960
$756
Annual free cash flow (4)
$221
$104
Net debt (4)
$322
$549
(1)
Q4 and full year 2020 net income includes a $20 million discrete income tax benefit, or $0.08 per diluted share, primarily related to changes in the valuation of certain deferred tax assets.
(2)
Q4 2019 net income includes a $4 million discrete income tax benefit, or $0.01 per diluted share, primarily related to changes in the valuation of certain deferred tax assets.
(3)
Full year 2019 net income includes an $8 million charge, or $0.03 per share, related to the early redemption of $525 million of senior notes due 2022 and a net $11 million discrete income tax charge, or $0.05 per diluted share, related to changes in the valuation of certain deferred tax assets.
(4)
EBITDA, free cash flow and net debt are non-GAAP measures. The reconciliations to the comparable GAAP measures are included below under “Selected Operating Data.”
At December 31, 2020, total cash and short-term investments was $832 million, and total debt was $1.154 billion.
Business Outlook
“We expect the first quarter to be another strong quarter, with revenue projected to be 15% above the first quarter of 2020, driven by continued recovery in automotive and better than seasonal demand for smartphones,” said Rutten. “We see 2021 as another good growth year for Amkor as 5G deployment, high performance computing, IoT wearables and recovery in automotive are all expected to drive strong demand for our services.”
First quarter 2021 outlook (unless otherwise noted):
Conference Call Information
Amkor will conduct a conference call on Monday, February 8, 2021, 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 1-877-407-4019 or 1-201-689-8337. A replay of the call will be made available at Amkor’s website or by dialing 1-877-660-6853 or 1-201-612-7415 (conference ID 13715048). 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
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
Q4 2020
Q3 2020
Q4 2019
2020
2019
Net Sales Data:
Net sales (in millions):
Advanced products (1)
$
868
$
899
$
667
$
3,202
$
2,111
Mainstream products (2)
503
455
511
1,849
1,942
Total net sales
$
1,371
$
1,354
$
1,178
$
5,051
$
4,053
Packaging services
85
%
86
%
84
%
85
%
83
%
Test services
15
%
14
%
16
%
15
%
17
%
Net sales from top ten customers
61
%
63
%
65
%
65
%
63
%
End Market Distribution Data:
Communications (handheld devices, smartphones, tablets)
46
%
43
%
37
%
41
%
38
%
Consumer (connected home, set-top boxes, televisions, visual imaging, wearables)
19
%
25
%
24
%
24
%
18
%
Automotive, industrial and other (driver assist, infotainment, performance, safety)
19
%
17
%
25
%
20
%
27
%
Computing (datacenter, infrastructure, PC/laptops, storage)
16
%
15
%
14
%
15
%
17
%
Total
100
%
100
%
100
%
100
%
100
%
Gross Margin Data:
Net sales
100.0
%
100.0
%
100.0
%
100.0
%
100.0
%
Cost of sales:
Materials
44.6
%
46.9
%
42.6
%
45.5
%
40.0
%
Labor
12.9
%
12.8
%
13.9
%
13.4
%
16.0
%
Other manufacturing
22.2
%
22.5
%
24.6
%
23.3
%
28.0
%
Gross margin
20.3
%
17.8
%
18.9
%
17.8
%
16.0
%
(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 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 Measures Reconciliation:
Q4 2020
Q3 2020
Q4 2019
2020
2019
(in millions)
EBITDA Data:
Net income
$
127
$
93
$
100
$
340
$
123
Plus: Interest expense
15
16
17
64
72
Plus: Income tax expense
13
16
1
46
37
Plus: Depreciation & amortization
133
130
126
510
524
EBITDA
$
288
$
255
$
244
$
960
$
756
In this press release, we refer to free cash flow, which is not defined by U.S. GAAP. We define free cash flow as net cash provided by operating activities less payments for property, plant and equipment, plus proceeds from the sale of and insurance recovery for property, plant and equipment, if applicable. We believe free cash flow to be relevant and useful information to our investors because it provides them with additional information in assessing our liquidity, capital resources and financial operating results. Our management uses free cash flow in evaluating our liquidity, and our ability to service debt, and our ability to fund capital expenditures and pay dividends. However, free cash flow has certain limitations, including that it does not represent the residual cash flow available for discretionary expenditures since other, non-discretionary expenditures, such as mandatory debt service, are not deducted from the measure. The amount of mandatory versus discretionary expenditures can vary significantly between periods. This measure should be considered in addition to, and not as a substitute for, or superior to, other measures of liquidity or financial performance prepared in accordance with U.S. GAAP, such as net cash provided by operating activities. Furthermore, our definition of free cash flow may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of free cash flow to U.S. GAAP net cash provided by operating activities.
Non-GAAP Financial Measures Reconciliation:
2020
2019
(in millions)
Free Cash Flow Data:
Net cash provided by operating activities
$
770
$
564
Less: Purchases of property, plant and equipment
(553
)
(472
)
Plus: Proceeds from sale of and insurance recovery for property, plant and equipment
4
12
Free cash flow
$
221
$
104
AMKOR TECHNOLOGY, INC. Selected Operating Data
This press release also includes net debt, which is not defined by U.S. GAAP. We define net debt as total debt as reported on the consolidated balance sheet less the sum of cash and cash equivalents, and short term investments. We believe net debt to be relevant and useful information to our investors because it provides them with additional information in assessing our capital structure, financial leverage, and our ability to reduce debt and to fund investing and financing activities. This measure should be considered in addition to, and not as a substitute for, or superior to, total debt, prepared in accordance with U.S. GAAP. Furthermore, our definition of net debt may not be comparable to similarly titled measures reported by other companies.
Non-GAAP Financial Measure Reconciliation:
2020
2019
(in millions)
Net Debt Data:
Total Debt
$
1,154
$
1,450
Less: Cash and Cash Equivalents
(698
)
(895
)
Less: Short-term Investments
(134
)
(6
)
Net Debt
$
322
$
549
AMKOR TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the Three Months Ended December 31,
For the Year Ended December 31,
2020
2019
2020
2019
(In thousands, except per share data)
Net sales
$
1,371,041
$
1,178,464
$
5,050,589
$
4,052,650
Cost of sales
1,092,540
955,480
4,149,775
3,403,211
Gross profit
278,501
222,984
900,814
649,439
Selling, general and administrative
78,219
71,828
302,842
278,631
Research and development
41,103
32,771
140,727
137,638
Total operating expenses
119,322
104,599
443,569
416,269
Operating income
159,179
118,385
457,245
233,170
Interest expense
14,707
16,673
64,168
71,587
Other (income) expense, net
4,828
1,132
6,395
1,773
Total other expense, net
19,535
17,805
70,563
73,360
Income before taxes
139,644
100,580
386,682
159,810
Income tax expense
12,679
764
46,183
37,182
Net income
126,965
99,816
340,499
122,628
Net income attributable to noncontrolling interests
(291
)
(669
)
(2,361
)
(1,740
)
Net income attributable to Amkor
$
126,674
$
99,147
$
338,138
$
120,888
Net income attributable to Amkor per common share:
Basic
$
0.52
$
0.41
$
1.40
$
0.50
Diluted
$
0.52
$
0.41
$
1.40
$
0.50
Shares used in computing per common share amounts:
Basic
242,333
240,384
241,509
239,725
Diluted
243,356
241,146
242,248
240,122
AMKOR TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31,
2020
2019
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents
$
698,002
$
894,948
Restricted cash
1,007
610
Short-term investments
133,769
6,348
Accounts receivable, net of allowances
962,643
850,753
Inventories
297,293
220,602
Other current assets
40,218
28,272
Total current assets
2,132,932
2,001,533
Property, plant and equipment, net
2,566,002
2,404,850
Operating lease right of use assets
147,236
148,549
Goodwill
27,325
25,976
Restricted cash
3,188
2,974
Other assets
145,628
111,733
Total assets
$
5,022,311
$
4,695,615
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt
$
149,007
$
144,479
Trade accounts payable
636,434
571,054
Capital expenditures payable
181,339
77,044
Accrued expenses
349,207
267,226
Total current liabilities
1,315,987
1,059,803
Long-term debt
1,005,339
1,305,755
Pension and severance obligations
159,610
176,971
Long-term operating lease liabilities
84,420
91,107
Other non-current liabilities
102,996
71,740
Total liabilities
2,668,352
2,705,376
Amkor stockholders’ equity:
Preferred stock
—
—
Common stock
289
287
Additional paid-in capital
1,953,378
1,927,739
Retained earnings
562,502
234,077
Accumulated other comprehensive income
27,270
19,115
Treasury stock
(217,740
)
(217,479
)
Total Amkor stockholders’ equity
2,325,699
1,963,739
Noncontrolling interests in subsidiaries
28,260
26,500
Total equity
2,353,959
1,990,239
Total liabilities and equity
$
5,022,311
$
4,695,615
AMKOR TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Year Ended December 31,
2020
2019
(In thousands)
Cash flows from operating activities:
Net income
$
340,499
$
122,628
Depreciation and amortization
510,396
524,177
Other operating activities and non-cash items
12,594
42,935
Changes in assets and liabilities
(93,456
)
(125,890
)
Net cash provided by operating activities
770,033
563,850
Cash flows from investing activities:
Payments for property, plant and equipment
(553,021
)
(472,433
)
Proceeds from sale of property, plant and equipment
3,819
10,117
Proceeds from insurance recovery for property, plant and equipment
—
1,538
Payments for short-term investments
(535,368
)
(5,935
)
Proceeds from sale of short-term investments
247,081
—
Proceeds from maturities of short-term investments
159,015
6,469
Other investing activities
39,769
(2,245
)
Net cash used in investing activities
(638,705
)
(462,489
)
Cash flows from financing activities:
Proceeds from revolving credit facilities
312,000
272,700
Payments of revolving credit facilities
(332,000
)
(272,700
)
Proceeds from short-term debt
86,769
51,434
Payments of short-term debt
(87,353
)
(52,635
)
Proceeds from issuance of long-term debt
331,033
975,575
Payments of long-term debt
(648,514
)
(862,927
)
Payments of finance lease obligations
(9,851
)
(6,574
)
Other financing activities
14,197
3,377
Net cash (used in) provided by financing activities
(333,719
)
108,250
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash
6,056
870
Net (decrease) increase in cash, cash equivalents and restricted cash
(196,335
)
210,481
Cash, cash equivalents and restricted cash, beginning of period
898,532
688,051
Cash, cash equivalents and restricted cash, end of period
$
702,197
$
898,532
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements within the meaning of federal securities laws. All statements other than statements of historical fact are considered forward-looking statements, including all of the statements made under “Business Outlook” above. These forward-looking statements involve a number of risks, uncertainties, assumptions and other factors that could affect future results and cause actual results and events to differ materially from historical and expected results and those expressed or implied in the forward-looking statements, including, but not limited to, the following:
Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect our operating results and financial condition are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2019 and in the company’s subsequent filings with the Securities and Exchange Commission made prior to or after the date hereof. Amkor undertakes no obligation to review or update any forward-looking statements to reflect events or circumstances occurring after the date of this press release except as may be required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210208005851/en/
Amkor Technology, Inc. Vincent Keenan Vice President, Investor Relations 480-786-7594 vincent.keenan@amkor.com
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