Fourth Quarter 2012

  • Net sales $723 million
  • Gross margin 18%
  • Net income $27 million
  • Earnings per diluted share $0.13

Full Year 2012

  • Net sales $2.76 billion
  • Adjusted gross margin 17%
  • Adjusted net income $95 million
  • Adjusted earnings per diluted share $0.46


CHANDLER, Ariz. - February 13, 2013 - Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the fourth quarter ended December 31, 2012, with net sales of $723 million, net income of $27 million, and earnings per diluted share of $0.13.  For the full year 2012, Amkor reported net sales of $2.76 billion, adjusted net income of $95 million and adjusted earnings per diluted share of $0.46.

"We are pleased with our fourth quarter results and improvements over the prior quarters of 2012 and the fourth quarter of 2011," said Ken Joyce, Amkor's president and chief executive officer.  "Bolstered by solid sales growth in mobile communications, results for the quarter came in at the higher end of our expectations.  Our investments in support of the communications end market are paying off and continue to gain momentum.  Driven by notable strength in smartphones and tablets, our communications revenue grew 12% and represented nearly 50% of our total sales in 2012."

Selected financial information for the fourth quarter 2012 is as follows:

  • Net Sales: $723 million, up 4% from $695 million in the prior quarter, and up 6% from $684 million in the fourth quarter of 2011
  • Gross Margin: 18%, compared to 17% in the prior quarter, and 16% in the fourth quarter of 2011
  • Net Income: $27 million, up from $22 million in the prior quarter, and up from $25 million in the fourth quarter of 2011
  • Earnings Per Diluted Share: $0.13, up from $0.11 in the prior quarter, and up from $0.11 in the fourth quarter of 2011


Selected financial information for the full year 2012 is as follows:

  • Net Sales: $2.76 billion, down 1% from $2.78 billion in 2011
  • Adjusted Gross Margin: 17%, compared to 18% in 2011
  • Adjusted Net Income: $95 million, up 3% from $92 million in 2011
  • Adjusted Earnings Per Diluted Share: $0.46, up 18% from $0.39 in 2011


The adjusted gross margin, adjusted net income and adjusted earnings per diluted share presented above for the full year 2012 exclude a loss contingency we recognized in the second quarter of 2012 of $34 million ($33 million, net of tax) relating to our pending patent license arbitration with Tessera, Inc. and are non-GAAP measures.  Selected operating data for the fourth quarter and full year 2012, and a reconciliation of the full year 2012 non-GAAP measures presented above to the comparable GAAP measures, are included in a section below before the financial statements.

“Capital additions were $86 million during the fourth quarter and $533 million for the full year 2012, primarily in support of customers in smartphones and tablets,” said Joanne Solomon, Amkor's executive vice president and chief financial officer.  "We accelerated the purchase of certain packaging and test equipment to meet demand for communications during the quarter."

Cash and cash equivalents were $413 million, and net debt was $1.1 billion, at December 31, 2012.

Business Outlook


“Looking ahead to the first quarter 2013, we are seeing seasonal demand patterns with revenues expected to be down 5% to 11% from the fourth quarter 2012,” said Joyce.  "We are currently planning capital additions of around $450 million for 2013 primarily to support the growth opportunities we see in mobile communications.  We are also planning an additional $150 million of spending for the acquisition of land and construction relating to our previously announced new factory and R&D center in South Korea."

Based upon currently available information, we have the following expectations for the first quarter 2013:

  • Net sales of $640 million to $690 million, down 5% to 11% from the prior quarter
  • Gross margin of 14% to 17%
  • Net loss of $5 million to net income of $16 million, or ($0.03) to $0.09 per diluted share
  • Capital additions of around $125 million

 

Conference Call Information


Amkor will conduct a conference call on Wednesday, February 13, 2013, 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 1-877-941-8609 or 1-480-629-9692.  A replay of the call will be made available at Amkor's website or by dialing 1-800-406-7325 or 1-303-590-3030 (conference reservation number 4584487).  The webcast is also being distributed over Thomson Reuters' Investor Distribution Network to both institutional and individual investors.  Individual investors can listen to the call through Thomson Reuters' individual investor center at www.companyboardroom.com or by visiting any of the investor sites in Thomson Reuters' Individual Investor Network.  Institutional investors can access the call via Thomson Reuters' password-protected event management site, Street Events (www.streetevents.com).

About Amkor


Amkor is a leading provider of semiconductor packaging and test services to semiconductor companies and electronics OEMs.  More information about Amkor is available from the company's filings with the Securities and Exchange Commission and on Amkor's website: www.amkor.com.

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, without limitation, statements regarding our investments in support of the communications end market, and 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:

  • the highly unpredictable nature and costs of litigation and other legal activities and the risk of adverse results of such matters, including the final ruling in the Tessera arbitration and the impact of other proceedings involving Tessera, Inc.;
  • the highly unpredictable nature of the semiconductor industry;
  • the effect of the global economy on credit markets, financial institutions, customers, suppliers and consumers, including the increasingly uncertain macroeconomic environment;
  • timing and volume of orders relative to production capacity and inability to achieve high capacity utilization rates;
  • volatility of consumer demand and weakness in forecasts from our customers for products incorporating our semiconductor packages;
  • dependence on key customers;
  • the impact of the expected increase in our ownership in J-Devices;
  • the performance of our business, economic and market conditions, the cash needs and investment opportunities for the business, the need for additional capacity and facilities to service customer demand and the availability of cash flow from operations or financing;
  • customer modification of and follow through with respect to forecasts provided to us, including delays in forecasts with respect to smartphones and tablets;
  • changes in tax rates and taxes as a result of changes in tax law, the jurisdictions in which our income is determined to be earned and taxed, the outcome of tax audits and tax ruling requests, our ability to realize deferred tax assets and the expiration of tax holidays;
  • curtailment of outsourcing by our customers;
  • our substantial indebtedness and restrictive covenants;
  • failure to realize sufficient cash flow or access to other sources of liquidity to fund capital additions;
  • the effects of a recession or other downturn in the U.S. and other economies worldwide;
  • disruptions or deficiencies in our controls resulting from the implementation of our new enterprise resource planning system and other information technology projects;
  • worldwide economic effects of terrorist attacks, natural disasters and military conflict;
  • our ability to control costs and improve profitability;
  • competition, competitive pricing and declines in average selling prices;
  • fluctuations in manufacturing yields;
  • dependence on international operations and sales;
  • dependence on raw material and equipment suppliers and changes in raw material and precious metal costs;
  • exchange rate fluctuations;
  • dependence on key personnel;
  • difficulties in managing growth;
  • enforcement of and compliance with intellectual property rights;
  • environmental and other governmental regulations; and
  • technological challenges.


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, 2011 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.

 

Contacts:


Amkor Technology, Inc.
Joanne Solomon
Executive Vice President & Chief Financial Officer
480-786-7878
joanne.solomon@amkor.com

Greg Johnson
Senior Director, Corporate Communications
480-786-7594
greg.johnson@amkor.com

 

SELECTED OPERATING DATA


 

Q4 2012

 

 

Q3 2012

 

 

Q4 2011

 

 

2012

 

 

2011

 

Sales Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Packaging services (in millions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chip scale package

$

306

 

 

 

$

235

 

 

 

$

276

 

 

 

$

1,035

 

 

 

$

965

 

 

Leadframe

146

 

 

 

171

 

 

 

158

 

 

 

661

 

 

 

692

 

 

Ball grid array

114

 

 

 

148

 

 

 

128

 

 

 

516

 

 

 

625

 

 

Other packaging

65

 

 

 

62

 

 

 

53

 

 

 

227

 

 

 

211

 

 

Packaging services

631

 

 

 

616

 

 

 

615

 

 

 

2,439

 

 

 

2,493

 

 

Test services

92

 

 

 

79

 

 

 

69

 

 

 

321

 

 

 

283

 

 

Total sales

$

723

 

 

 

$

695

 

 

 

$

684

 

 

 

$

2,760

 

 

 

$

2,776

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Packaging services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chip scale package

42

 

%

 

34

 

%

 

40

 

%

 

37

 

%

 

35

 

%

Leadframe

20

 

%

 

25

 

%

 

23

 

%

 

24

 

%

 

25

 

%

Ball grid array

16

 

%

 

21

 

%

 

19

 

%

 

19

 

%

 

22

 

%

Other packaging

9

 

%

 

9

 

%

 

8

 

%

 

8

 

%

 

8

 

%

Packaging services

87

 

%

 

89

 

%

 

90

 

%

 

88

 

%

 

90

 

%

Test services

13

 

%

 

11

 

%

 

10

 

%

 

12

 

%

 

10

 

%

Total sales

100

 

%

 

100

 

%

 

100

 

%

 

100

 

%

 

100

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Packaged units (in millions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chip scale package

772

 

 

 

603

 

 

 

445

 

 

 

2,264

 

 

 

1,826

 

 

Leadframe

1,387

 

 

 

1,499

 

 

 

1,287

 

 

 

5,932

 

 

 

6,041

 

 

Ball grid array

39

 

 

 

47

 

 

 

40

 

 

 

171

 

 

 

195

 

 

Other packaging

52

 

 

 

51

 

 

 

9

 

 

 

128

 

 

 

74

 

 

Total packaged units

2,250

 

 

 

2,200

 

 

 

1,781

 

 

 

8,495

 

 

 

8,136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales from top ten customers

63

 

%

 

62

 

%

 

66

 

%

 

62

 

%

 

61

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capacity Utilization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Packaging

77

 

%

 

76

 

%

 

73

 

%

 

75

 

%

 

74

 

%

Test

80

 

%

 

77

 

%

 

74

 

%

 

79

 

%

 

75

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End Market Distribution Data (an approximation including representative devices and applications based on a sampling of our largest customers):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Communications (handsets, tablets, wireless LAN, handheld devices)

58

 

%

 

44

 

%

 

49

 

%

 

48

 

%

 

43

 

%

Consumer (gaming, television, set top boxes, portable media, digital cameras)

17

 

%

 

24

 

%

 

21

 

%

 

21

 

%

 

24

 

%

Computing (desk tops, PCs, hard disk drive, servers, displays, printers, peripherals)

9

 

%

 

11

 

%

 

11

 

%

 

11

 

%

 

12

 

%

Networking (servers, routers, switches)

9

 

%

 

12

 

%

 

11

 

%

 

11

 

%

 

12

 

%

Other (automotive, industrial)

7

 

%

 

9

 

%

 

8

 

%

 

9

 

%

 

9

 

%

Total

100

 

%

 

100

 

%

 

100

 

%

 

100

 

%

 

100

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

100

 

%

 

100

 

%

 

100

 

%

 

100

 

%

 

100

 

%

Cost of sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Materials

42

 

%

 

43

 

%

 

45

 

%

 

43

 

%

 

44

 

%

Labor

14

 

%

 

15

 

%

 

14

 

%

 

15

 

%

 

15

 

%

Other manufacturing

26

 

%

 

25

 

%

 

25

 

%

 

25

 

%

 

23

 

%

Loss contingency

 

%

 

 

%

 

 

%

 

1

 

%

 

 

%

Gross margin

18

 

%

 

17

 

%

 

16

 

%

 

16

 

%

 

18

 

%

 

 

 

2012

 

 

2011

 

 

(In millions)

 

Return on Invested Capital:

 

 

 

 

 

Operating income

$

173

 

 

 

$

194

 

 

Equity in earnings of unconsolidated affiliate

6

 

 

 

7

 

 

Income tax expense

(19

)

 

 

(7

)

 

Net operating profit after tax (NOPAT)

$

160

 

 

 

$

194

 

 

 

 

 

 

 

 

Invested capital:

 

 

 

 

 

Average debt

$

1,446

 

 

 

$

1,355

 

 

Plus average equity

686

 

 

 

662

 

 

Less average cash

(424

)

 

 

(420

)

 

Average invested capital

$

1,708

 

 

 

$

1,597

 

 

 

 

 

 

 

 

Return on invested capital (NOPAT / average invested capital)*

9

%

 

 

12

%

 

 

 

Q4 2012

 

 

Q3 2012

 

 

Q4 2011

 

 

2012

 

 

2011

 

 

(In millions, except per share data)

 

Capital Investment Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment additions

$

86

 

 

 

$

173

 

 

 

$

128

 

 

 

$

533

 

 

 

$

453

 

 

Net change in related accounts payable and deposits

67

 

 

 

(25

)

 

 

14

 

 

 

1

 

 

 

14

 

 

Purchases of property, plant and equipment

$

153

 

 

 

$

148

 

 

 

$

142

 

 

 

$

534

 

 

 

$

467

 

 

Depreciation and amortization

$

97

 

 

 

$

94

 

 

 

$

87

 

 

 

$

370

 

 

 

$

336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free Cash Flow Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

$

98

 

 

 

$

142

 

 

 

$

141

 

 

 

$

383

 

 

 

$

517

 

 

Less purchases of property, plant and equipment

(153

)

 

 

(148

)

 

 

(142

)

 

 

(534

)

 

 

(467

)

 

Free cash flow*

$

(55

)

 

 

$

(6

)

 

 

$

(1

)

 

 

$

(151

)

 

 

$

50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Amkor - basic

$

27

 

 

 

$

22

 

 

 

$

25

 

 

 

$

62

 

 

 

$

92

 

 

Adjustment for dilutive securities on net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on 6.0% convertible notes due 2014, net of tax

4

 

 

 

4

 

 

 

4

 

 

 

16

 

 

 

16

 

 

Net income attributable to Amkor - diluted

$

31

 

 

 

$

26

 

 

 

$

29

 

 

 

$

78

 

 

 

$

108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic**

152

 

 

 

154

 

 

 

177

 

 

 

160

 

 

 

191

 

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock options and unvested restricted shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.0% convertible notes due 2014

83

 

 

 

83

 

 

 

83

 

 

 

83

 

 

 

83

 

 

Weighted average shares outstanding - diluted

235

 

 

 

237

 

 

 

260

 

 

 

243

 

 

 

274

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Amkor per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.18

 

 

 

$

0.14

 

 

 

$

0.14

 

 

 

$

0.39

 

 

 

$

0.48

 

 

Diluted

$

0.13

 

 

 

$

0.11

 

 

 

$

0.11

 

 

 

$

0.32

 

 

 

$

0.39

 

 

 

*We define return on invested capital ("ROIC") as net operating profit after tax (the sum of operating income plus equity in earnings of unconsolidated affiliate less income tax expense) divided by average invested capital (the sum of average debt plus average equity less average cash).  ROIC is not defined by U.S. generally accepted accounting principles ("U.S. GAAP").  However, we believe ROIC is relevant and useful information for our investors and management in evaluating whether our capital investments are generating stockholder value.  We define free cash flow as net cash provided by operating activities less purchases of property, plant and equipment.  Free cash flow is not defined by U.S. GAAP.  However, 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, our ability to service debt and our ability to fund capital additions.  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.

 

**Amkor's Board of Directors previously authorized $300 million for the repurchase of our common stock.  During 2012, we repurchased 16.5 million shares for a purchase price of $79.5 million.  Since inception of the program, we have repurchased a total of 45.0 million shares at an aggregate purchase price of $208.4 million.

In the press release above we provide adjusted gross margin, adjusted net income and adjusted earnings per diluted share for the year ended December 31, 2012.  We present these non-GAAP amounts to demonstrate the impact of the loss contingency we recognized for the year ended December 31, 2012 related to our pending patent license arbitration with Tessera, Inc.  However, these measures have limitations, including that they exclude the charges for the Tessera arbitration 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 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:

 

 

 

 

 

 

 

 

2012

 

 

Gross margin

 

 

16

 

%

 

Plus: Loss contingency divided by net sales

 

 

1

 

%

 

Adjusted gross margin

 

 

17

 

%

 

 

 

 

 

 

 

 

 

 

2012

 

 

 

 

(In millions)

 

Net income

 

 

$

62

 

 

 

Plus: Loss contingency, net of tax

 

 

33

 

 

 

Adjusted net income

 

 

$

95

 

 

 

 

 

 

 

 

 

 

 

 

2012

 

 

Earnings per diluted share

 

 

$

0.32

 

 

 

Plus: Loss contingency per diluted share

 

 

0.14

 

 

 

Adjusted earnings per diluted share

 

 

$

0.46

 

 

 

 

CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

 

 

For the Three Months Ended

December 31,

 

For the Year Ended

December 31,

 

2012

 

2011

 

2012

 

2011

 

(In thousands, except per share data)

Net sales

$

722,956

 

 

$

683,769

 

 

$

2,759,846

 

 

$

2,776,359

 

Cost of sales

589,634

 

 

571,942

 

 

2,315,436

 

 

2,285,790

 

Gross profit

133,322

 

 

111,827

 

 

444,410

 

 

490,569

 

Operating expenses:

 

 

 

 

 

 

 

Selling, general and administrative

56,959

 

 

55,660

 

 

217,000

 

 

246,513

 

Research and development

13,354

 

 

12,465

 

 

54,118

 

 

50,386

 

Total operating expenses

70,313

 

 

68,125

 

 

271,118

 

 

296,899

 

Operating income

63,009

 

 

43,702

 

 

173,292

 

 

193,670

 

Other expense (income):

 

 

 

 

 

 

 

Interest expense

21,647

 

 

18,220

 

 

82,374

 

 

74,212

 

Interest expense, related party

3,492

 

 

3,492

 

 

13,969

 

 

12,394

 

Interest income

(671

)

 

(961

)

 

(3,160

)

 

(2,749

)

Foreign currency (gain) loss

(276

)

 

520

 

 

4,185

 

 

2,178

 

Loss on debt retirement, net

1,199

 

 

 

 

1,199

 

 

15,531

 

Equity in earnings of unconsolidated affiliate

(171

)

 

(444

)

 

(5,592

)

 

(7,085

)

Other income, net

(75

)

 

(335

)

 

(1,586

)

 

(1,030

)

Total other expense, net

25,145

 

 

20,492

 

 

91,389

 

 

93,451

 

Income before income taxes

37,864

 

 

23,210

 

 

81,903

 

 

100,219

 

Income tax expense (benefit)

9,992

 

 

(2,351

)

 

19,001

 

 

7,124

 

Net income

27,872

 

 

25,561

 

 

62,902

 

 

93,095

 

Net income attributable to noncontrolling interests

(526

)

 

(711

)

 

(884

)

 

(1,287

)

Net income attributable to Amkor

$

27,346

 

 

$

24,850

 

 

$

62,018

 

 

$

91,808

 

 

 

 

 

 

 

 

 

Net income attributable to Amkor per common share:

 

 

 

 

 

 

 

Basic

$

0.18

 

 

$

0.14

 

 

$

0.39

 

 

$

0.48

 

Diluted

$

0.13

 

 

$

0.11

 

 

$

0.32

 

 

$

0.39

 

 

 

 

 

 

 

 

 

Shares used in computing per common share amounts:

 

 

 

 

 

 

 

Basic

152,382

 

 

176,941

 

 

160,105

 

 

190,829

 

Diluted

235,148

 

 

259,633

 

 

243,004

 

 

273,686

 

 

 

CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

 

December 31,

 

2012

 

2011

 

(In thousands, except per share data)

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

413,048

 

 

$

434,631

 

Restricted cash

2,680

 

 

2,680

 

Accounts receivable:

 

 

 

Trade, net of allowances

389,999

 

 

298,543

 

Other

13,098

 

 

27,197

 

Inventories

227,439

 

 

198,427

 

Other current assets

43,444

 

 

35,352

 

Total current assets

1,089,708

 

 

996,830

 

Property, plant and equipment, net

1,819,969

 

 

1,656,214

 

Intangibles, net

4,766

 

 

8,382

 

Investments

38,690

 

 

36,707

 

Restricted cash

2,308

 

 

4,001

 

Other assets

68,074

 

 

70,913

 

Total assets

$

3,023,515

 

 

$

2,773,047

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

Current liabilities:

 

 

 

Short-term borrowings and current portion of long-term debt

$

 

 

$

59,395

 

Trade accounts payable

439,663

 

 

424,504

 

Accrued expenses

191,064

 

 

158,287

 

Total current liabilities

630,727

 

 

642,186

 

Long-term debt

1,320,000

 

 

1,062,256

 

Long-term debt, related party

225,000

 

 

225,000

 

Pension and severance obligations

139,379

 

 

129,096

 

Other non-current liabilities

21,415

 

 

13,288

 

Total liabilities

2,336,521

 

 

2,071,826

 

Equity:

 

 

 

Amkor stockholders' equity:

 

 

 

Preferred stock

 

 

 

Common stock

198

 

 

197

 

Additional paid-in capital

1,614,143

 

 

1,611,242

 

Accumulated deficit

(736,444

)

 

(798,462

)

Accumulated other comprehensive income

11,241

 

 

10,849

 

Treasury stock

(210,983

)

 

(130,560

)

Total Amkor stockholders' equity

678,155

 

 

693,266

 

Noncontrolling interests in subsidiaries

8,839

 

 

7,955

 

Total equity

686,994

 

 

701,221

 

Total liabilities and equity

$

3,023,515

 

 

$

2,773,047

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

 

For the Year Ended
December 31,

 

2012

 

2011

 

(In thousands)

Cash flows from operating activities:

 

 

 

Net income

$

62,902

 

 

$

93,095

 

Depreciation and amortization

370,479

 

 

335,644

 

Loss on debt retirement, net

737

 

 

10,557

 

Other operating activities and non-cash items

5,242

 

 

1,176

 

Changes in assets and liabilities

(56,397

)

 

76,360

 

Net cash provided by operating activities

382,963

 

 

516,832

 

 

 

 

 

Cash flows from investing activities:

 

 

 

Purchases of property, plant and equipment

(533,512

)

 

(466,694

)

Proceeds from the sale of property, plant and equipment

2,727

 

 

15,823

 

Financing lease payment from unconsolidated affiliate

15,484

 

 

10,794

 

Other investing activities

1,280

 

 

9,543

 

Net cash used in investing activities

(514,021

)

 

(430,534

)

 

 

 

 

Cash flows from financing activities:

 

 

 

Borrowings under short-term debt

30,000

 

 

26,567

 

Payments under short-term debt

(50,000

)

 

(21,567

)

Proceeds from issuance of long-term debt

637,528

 

 

387,512

 

Proceeds from issuance of long-term debt, related party

 

 

75,000

 

Payments of long-term debt, net of redemption premiums and discounts

(420,116

)

 

(392,191

)

Payments for debt issuance costs

(6,007

)

 

(5,875

)

Payments for repurchase of common stock

(80,946

)

 

(128,368

)

Proceeds from the issuance of stock through share-based compensation plans

182

 

 

821

 

Payments of tax withholding for restricted shares

(609

)

 

(776

)

Net cash provided by (used in) financing activities

110,032

 

 

(58,877

)

 

 

 

 

Effect of exchange rate fluctuations on cash and cash equivalents

(557

)

 

2,212

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents

(21,583

)

 

29,633

 

Cash and cash equivalents, beginning of period

434,631

 

 

404,998

 

Cash and cash equivalents, end of period

$

413,048

 

 

$

434,631