(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered |
Exhibit | Description | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
AMKOR TECHNOLOGY, INC. | ||||
By: | /s/ Megan Faust | |||
Megan Faust | ||||
Executive Vice President and Chief Financial Officer | ||||
![]() | News Release |
• | Record net sales $1.18 billion, up 9% sequentially and year-on-year |
• | Gross margin 18.9% |
• | Net income $99 million, earnings per diluted share $0.41 |
• | EBITDA $244 million |
• | Net sales $4.05 billion |
• | Net income $121 million, earnings per diluted share $0.50 |
• | EBITDA $756 million |
• | Net cash from operations $564 million and free cash flow $104 million |
• | Fifth consecutive year of positive free cash flow |
Results | Q4 2019 (1) | Q3 2019 | Q4 2018 (2) | 2019 (3) | 2018 |
($ in millions, except per share amounts) | |||||
Net sales | $1,178 | $1,084 | $1,081 | $4,053 | $4,316 |
Gross margin | 18.9% | 16.8% | 16.9% | 16.0% | 16.5% |
Operating income | $118 | $79 | $75 | $233 | $258 |
Net income attributable to Amkor | $99 | $54 | $28 | $121 | $127 |
Earnings per diluted share | $0.41 | $0.23 | $0.12 | $0.50 | $0.53 |
EBITDA (4) | $244 | $209 | $219 | $756 | $837 |
Annual free cash flow (4) | $104 | $120 |
• | Net sales of $1.08 billion to $1.16 billion |
• | Gross margin of 14.5% to 17.5% |
• | Net income of $22 million to $59 million, or $0.09 to $0.24 per diluted share |
• | Full year 2020 capital expenditures of around $550 million |
Q4 2019 | Q3 2019 | Q4 2018 | 2019 | 2018 | |||||||||||||||
Net Sales Data: | |||||||||||||||||||
Net sales (in millions): | |||||||||||||||||||
Advanced products (1) | $ | 667 | $ | 589 | $ | 564 | $ | 2,111 | $ | 2,118 | |||||||||
Mainstream products (2) | 511 | 495 | 517 | 1,942 | 2,198 | ||||||||||||||
Total net sales | $ | 1,178 | $ | 1,084 | $ | 1,081 | $ | 4,053 | $ | 4,316 | |||||||||
Packaging services | 84 | % | 84 | % | 84 | % | 83 | % | 83 | % | |||||||||
Test services | 16 | % | 16 | % | 16 | % | 17 | % | 17 | % | |||||||||
Net sales from top ten customers | 65 | % | 62 | % | 61 | % | 63 | % | 62 | % | |||||||||
End Market Distribution Data: | |||||||||||||||||||
Communications (handheld devices, smartphones, tablets) | 37 | % | 41 | % | 45 | % | 38 | % | 44 | % | |||||||||
Automotive, industrial and other (driver assist, infotainment, performance, safety) | 25 | % | 26 | % | 25 | % | 27 | % | 26 | % | |||||||||
Consumer (connected home, set-top boxes, televisions, visual imaging, wearables) | 24 | % | 18 | % | 12 | % | 18 | % | 12 | % | |||||||||
Computing (datacenter, infrastructure, PC/laptops, storage) | 14 | % | 15 | % | 18 | % | 17 | % | 18 | % | |||||||||
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 | 42.6 | % | 40.4 | % | 38.8 | % | 40.0 | % | 38.7 | % | |||||||||
Labor | 13.9 | % | 15.8 | % | 16.0 | % | 16.0 | % | 16.1 | % | |||||||||
Other manufacturing | 24.6 | % | 27.0 | % | 28.3 | % | 28.0 | % | 28.7 | % | |||||||||
Gross margin | 18.9 | % | 16.8 | % | 16.9 | % | 16.0 | % | 16.5 | % |
Non-GAAP Financial Measures Reconciliation: | |||||||||||||||||||
Q4 2019 | Q3 2019 | Q4 2018 | 2019 | 2018 | |||||||||||||||
(in millions) | |||||||||||||||||||
EBITDA Data: | |||||||||||||||||||
Net income | $ | 100 | $ | 54 | $ | 29 | $ | 123 | $ | 130 | |||||||||
Plus: Interest expense | 17 | 17 | 18 | 72 | 79 | ||||||||||||||
Plus: Income tax expense (benefit) | 1 | 9 | 29 | 37 | 56 | ||||||||||||||
Plus: Depreciation & amortization | 126 | 129 | 143 | 524 | 572 | ||||||||||||||
EBITDA | $ | 244 | $ | 209 | $ | 219 | $ | 756 | $ | 837 |
Non-GAAP Financial Measures Reconciliation: | |||||||
2019 | 2018 | ||||||
Free Cash Flow Data: | |||||||
Net cash provided by operating activities | $ | 564 | $ | 663 | |||
Less: Purchases of property, plant and equipment | (472 | ) | (547 | ) | |||
Plus: Proceeds from sale of and insurance recovery for property, plant and equipment | 12 | 4 | |||||
Free cash flow | $ | 104 | $ | 120 |
For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Net sales | $ | 1,178,464 | $ | 1,081,271 | $ | 4,052,650 | $ | 4,316,466 | |||||||
Cost of sales | 955,480 | 898,901 | 3,403,211 | 3,605,901 | |||||||||||
Gross profit | 222,984 | 182,370 | 649,439 | 710,565 | |||||||||||
Selling, general and administrative | 71,828 | 69,353 | 281,933 | 295,239 | |||||||||||
Research and development | 32,771 | 37,636 | 137,638 | 157,182 | |||||||||||
Gain on sale of real estate | — | — | (3,302 | ) | — | ||||||||||
Total operating expenses | 104,599 | 106,989 | 416,269 | 452,421 | |||||||||||
Operating income | 118,385 | 75,381 | 233,170 | 258,144 | |||||||||||
Interest expense | 16,673 | 18,038 | 71,587 | 78,946 | |||||||||||
Other (income) expense, net | 1,132 | (363 | ) | 1,773 | (6,617 | ) | |||||||||
Total other expense, net | 17,805 | 17,675 | 73,360 | 72,329 | |||||||||||
Income before taxes | 100,580 | 57,706 | 159,810 | 185,815 | |||||||||||
Income tax expense | 764 | 28,812 | 37,182 | 56,250 | |||||||||||
Net income | 99,816 | 28,894 | 122,628 | 129,565 | |||||||||||
Net income attributable to noncontrolling interests | (669 | ) | (599 | ) | (1,740 | ) | (2,473 | ) | |||||||
Net income attributable to Amkor | $ | 99,147 | $ | 28,295 | $ | 120,888 | $ | 127,092 | |||||||
Net income attributable to Amkor per common share: | |||||||||||||||
Basic | $ | 0.41 | $ | 0.12 | $ | 0.50 | $ | 0.53 | |||||||
Diluted | $ | 0.41 | $ | 0.12 | $ | 0.50 | $ | 0.53 | |||||||
Shares used in computing per common share amounts: | |||||||||||||||
Basic | 240,384 | 239,378 | 239,725 | 239,329 | |||||||||||
Diluted | 241,146 | 239,596 | 240,122 | 239,741 |
December 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 894,948 | $ | 681,569 | |||
Restricted cash | 610 | 2,589 | |||||
Accounts receivable, net of allowances | 850,753 | 724,456 | |||||
Inventories | 220,602 | 230,589 | |||||
Other current assets | 34,620 | 32,005 | |||||
Total current assets | 2,001,533 | 1,671,208 | |||||
Property, plant and equipment, net | 2,404,850 | 2,650,448 | |||||
Operating lease right of use assets * | 148,549 | — | |||||
Goodwill | 25,976 | 25,720 | |||||
Restricted cash | 2,974 | 3,893 | |||||
Other assets | 111,733 | 144,178 | |||||
Total assets | $ | 4,695,615 | $ | 4,495,447 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Short-term borrowings and current portion of long-term debt | $ | 144,479 | $ | 114,579 | |||
Trade accounts payable | 571,054 | 530,398 | |||||
Capital expenditures payable | 77,044 | 255,237 | |||||
Accrued expenses | 267,226 | 258,209 | |||||
Total current liabilities | 1,059,803 | 1,158,423 | |||||
Long-term debt | 1,305,755 | 1,217,732 | |||||
Pension and severance obligations | 176,971 | 184,321 | |||||
Long-term operating lease liabilities * | 91,107 | — | |||||
Other non-current liabilities | 71,740 | 79,071 | |||||
Total liabilities | 2,705,376 | 2,639,547 | |||||
Amkor stockholders’ equity: | |||||||
Preferred stock | — | — | |||||
Common stock | 287 | 285 | |||||
Additional paid-in capital | 1,927,739 | 1,909,425 | |||||
Retained earnings | 234,077 | 113,189 | |||||
Accumulated other comprehensive income | 19,115 | 23,812 | |||||
Treasury stock | (217,479 | ) | (216,171 | ) | |||
Total Amkor stockholders’ equity | 1,963,739 | 1,830,540 | |||||
Noncontrolling interests in subsidiaries | 26,500 | 25,360 | |||||
Total equity | 1,990,239 | 1,855,900 | |||||
Total liabilities and equity | $ | 4,695,615 | $ | 4,495,447 |
For the Year Ended December 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 122,628 | $ | 129,565 | |||
Depreciation and amortization | 524,177 | 571,961 | |||||
Gain on sale of real estate | (3,302 | ) | — | ||||
Deferred income taxes | 25,931 | (13,110 | ) | ||||
Other operating activities and non-cash items | 20,306 | 15,518 | |||||
Changes in assets and liabilities | (125,890 | ) | (40,524 | ) | |||
Net cash provided by operating activities | 563,850 | 663,410 | |||||
Cash flows from investing activities: | |||||||
Payments for property, plant and equipment | (472,433 | ) | (547,122 | ) | |||
Proceeds from sale of property, plant and equipment | 10,117 | 2,841 | |||||
Proceeds from insurance recovery for property, plant and equipment | 1,538 | 1,371 | |||||
Proceeds from foreign exchange forward contracts | 13,550 | 6,754 | |||||
Payments for foreign exchange forward contracts | (15,593 | ) | (5,864 | ) | |||
Other investing activities | 332 | 4,637 | |||||
Net cash used in investing activities | (462,489 | ) | (537,383 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from revolving credit facilities | 272,700 | — | |||||
Payments of revolving credit facilities | (272,700 | ) | (75,000 | ) | |||
Proceeds from short-term debt | 51,434 | 23,341 | |||||
Payments of short-term debt | (52,635 | ) | (46,631 | ) | |||
Proceeds from issuance of long-term debt | 975,575 | 596,226 | |||||
Payments of long-term debt | (862,927 | ) | (535,738 | ) | |||
Payments for debt issuance costs | (7,027 | ) | (3,796 | ) | |||
Payments of finance lease obligations | (6,574 | ) | (3,930 | ) | |||
Proceeds from issuance of stock through share-based compensation plans | 11,405 | 1,050 | |||||
Other financing activities | (1,001 | ) | 3,855 | ||||
Net cash provided by (used in) financing activities | 108,250 | (40,623 | ) | ||||
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | 870 | (204 | ) | ||||
Net increase in cash, cash equivalents and restricted cash | 210,481 | 85,200 | |||||
Cash, cash equivalents and restricted cash, beginning of period | 688,051 | 602,851 | |||||
Cash, cash equivalents and restricted cash, end of period | $ | 898,532 | $ | 688,051 |
• | health conditions or pandemics, such as the recent coronavirus outbreak, impacting the supply chain and consumer demand for electronic products and services; |
• | dependence on the highly cyclical, volatile semiconductor industry; |
• | industry downturns and declines in global economic and financial conditions; |
• | fluctuation in demand for semiconductors and conditions in the semiconductor industry generally, as well as by specific customers, such as inventory reductions by our customers impacting demand in key markets; |
• | changes in our capacity and capacity utilization rates and fluctuations in our manufacturing yields; |
• | the development, transition and ramp to high volume manufacture of more advanced silicon nodes and evolving wafer, packaging and test technologies, may cause production delays, lower manufacturing yields and supply constraints for new wafers and other materials; |
• | absence of backlog, the short-term nature of our customers’ commitments, double bookings by customers and deterioration in customer forecasts and the impact of these factors, including the possible delay, rescheduling and cancellation of large orders, or the timing and volume of orders relative to our production capacity; |
• | changes in costs, quality, availability and delivery times of raw materials, components and equipment, including any disruption in the supply of certain materials due to regulations and customer requirements, as well as wage inflation and fluctuations in commodity prices; |
• | dependence on key customers or concentration of customers in certain end markets, such as mobile communications and automotive; |
• | dependence on international factories and operations, and risks relating to our customers’ and vendors’ international operations; |
• | laws, rules, regulations and policies imposed by U.S. or foreign governments, such as tariffs, customs, duties and other restrictive trade barriers, national security, data privacy and cybersecurity, antitrust and competition, tax, currency and banking, labor, environmental, health and safety, and in particular the recent increase in tariffs, customs, duties and other restrictive trade barriers considered or adopted by U.S. and foreign governments; |
• | laws, rules, regulations and policies within China and other countries that may favor domestic companies over non-domestic companies, including customer- or government-supported efforts to promote the development and growth of local competitors; |
• | fluctuations in currency exchange rates, particularly the dollar/yen exchange rate for our operations in Japan; |
• | competition with established competitors in the packaging and test business, the internal capabilities of integrated device manufacturers, and new competitors, including foundries; |
• | decisions by our integrated device manufacturer and foundry customers to curtail outsourcing; |
• | difficulty achieving high capacity utilization rates due to high percentage of fixed costs; |
• | our substantial investments in equipment and facilities to support the demand of our customers; |
• | there can be no assurance regarding when our factory and research and development center in Korea will be fully utilized, or that the actual scope, costs, timeline or benefits of the project will be consistent with our expectations; |
• | the historical downward pressure on the prices of our packaging and test services; |
• | any warranty claims, product return and liability risks, and the risk of negative publicity if our products fail, as well as the risk of litigation incident to our business; |
• | our substantial indebtedness and restrictive covenants in the indentures and agreements governing our current and future indebtedness; |
• | difficulty funding our liquidity needs; |
• | our significant severance plan obligations associated with our manufacturing operations in Korea; |
• | maintaining an effective system of internal controls; |
• | difficulty attracting, retaining or replacing qualified personnel; |
• | our continuing development and implementation of changes to, and maintenance and security of, our information technology systems; |
• | challenges with integrating diverse operations; |
• | any changes in tax laws (including the recent enactment of U.S. tax reform), taxing authorities not agreeing with our interpretation of applicable tax laws, including whether we continue to qualify for tax holidays, or any requirements to establish or adjust valuation allowances on deferred tax assets; |
• | our ability to develop new proprietary technology, protect our proprietary technology, operate without infringing the proprietary rights of others, and implement new technologies; |
• | natural disasters and other calamities, health conditions or pandemics, political instability, hostilities or other disruptions; and |
• | the ability of certain of our stockholders to effectively determine or substantially influence the outcome of matters requiring stockholder approval. |
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Cover Page |
Feb. 10, 2020 |
---|---|
Cover page. | |
Document Type | 8-K |
Document Period End Date | Feb. 10, 2020 |
Entity Registrant Name | AMKOR TECHNOLOGY, INC. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 000-29472 |
Entity Tax Identification Number | 23-1722724 |
Entity Address, Address Line One | 2045 EAST INNOVATION CIRCLE |
Entity Address, City or Town | TEMPE |
Entity Address, State or Province | AZ |
Entity Address, Postal Zip Code | 85284 |
City Area Code | 480 |
Local Phone Number | 821-5000 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $0.001 par value |
Trading Symbol | AMKR |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001047127 |
Amendment Flag | false |
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