Amkor Technology Reports Record Financial Results for the Fourth Quarter and Full Year 2022
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Amkor Technology Reports Record Financial Results for the Fourth Quarter and Full Year 2022

TEMPE, Ariz. — (BUSINESS WIRE) — February 13, 2023 — 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, 2022.

Fourth Quarter 2022 Highlights:

Full Year 2022 Highlights:

“2022 was another great year for Amkor. We achieved record revenue of $7.1 billion and record EPS of $3.11. All end markets set new record revenue levels for the year, resulting in significant outperformance compared to the semiconductor market,” said Giel Rutten, Amkor’s president and chief executive officer. “Amkor’s strategic focus on advanced packaging, geographic diversity, and industry megatrends positions us well to continue to outperform the semiconductor industry through this cycle.”

Financial Results

($ in millions, except per share data)

Q4 2022

Q3 2022

Q4 2021

2022

2021

Net sales

$1,906

$2,084

$1,725

$7,092

$6,138

Gross margin

17.5%

20.2%

21.0%

18.8%

20.0%

Operating income

$225

$319

$252

$897

$763

Operating income margin

11.8%

15.3%

14.6%

12.7%

12.4%

Net income attributable to Amkor

$164

$306

$217

$766

$643

Earnings per diluted share

$0.67

$1.24

$0.88

$3.11

$2.62

EBITDA (1)

$382

$481

$398

$1,529

$1,331

Net cash provided by operating activities

 

 

 

$1,099

$1,121

Annual free cash flow (1)

 

 

 

$194

$344

(1)

EBITDA and free cash flow are non-GAAP measures. The reconciliations to the comparable GAAP measures are included below under “Selected Operating Data.”

At December 31, 2022, total cash and short-term investments was $1.24 billion, and total debt was $1.23 billion.

On November 15, 2022, Amkor’s Board of Directors announced a 50% increase in the company’s quarterly cash dividend, from $0.05 per share to $0.075 per share, on the company’s common stock. The increase was effective with the dividend paid on December 27, 2022. The declaration and payment of future dividends, as well as any record and payment dates, are subject to the approval of the Board of Directors.

Business Outlook

The following information presents Amkor’s guidance for the first quarter 2023 (unless otherwise noted):

Conference Call Information

Amkor will conduct a conference call on Monday, February 13, 2023, at 5:00 p.m. Eastern Time. This call may include material information not included in this press release. To access the live audio webcast and the accompanying slide presentation, visit the Investor Relations section of Amkor’s website, located at ir.amkor.com. The live call can also be accessed by dialing 1-877-407-4019 or 1-201-689-8337.

About Amkor Technology, Inc.

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 amkor.com.

AMKOR TECHNOLOGY, INC.

Selected Operating Data

 

 

Q4 2022

 

Q3 2022

 

Q4 2021

 

2022

 

2021

Net Sales Data:

 

 

 

 

 

 

 

 

 

Net sales (in millions):

 

 

 

 

 

 

 

 

 

Advanced Products (1)

$1,488

 

$1,640

 

$1,273

 

$5,368

 

$4,409

Mainstream Products (2)

418

 

444

 

452

 

1,724

 

1,729

Total net sales

$1,906

 

$2,084

 

$1,725

 

$7,092

 

$6,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Packaging services

88 %

 

87 %

 

86 %

 

87 %

 

86 %

Test services

12 %

 

13 %

 

14 %

 

13 %

 

14 %

 

 

 

 

 

 

 

 

 

 

Net sales from top ten customers

67 %

 

67 %

 

66 %

 

65 %

 

63 %

 

 

 

 

 

 

 

 

 

 

End Market Distribution Data:

 

 

 

 

 

 

 

 

 

Communications (smartphones, tablets)

50 %

 

47 %

 

42 %

 

44 %

 

41 %

Automotive, industrial and other (ADAS, electrification, infotainment, safety)

20 %

 

18 %

 

20 %

 

20 %

 

21 %

Consumer (AR & gaming, connected home, home electronics, wearables)

17 %

 

20 %

 

22 %

 

20 %

 

22 %

Computing (data center, infrastructure, PC/laptop, storage)

13 %

 

15 %

 

16 %

 

16 %

 

16 %

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

55.1 %

 

53.3 %

 

47.4 %

 

51.4 %

 

46.1 %

Labor

9.0 %

 

8.6 %

 

11.4 %

 

10.0 %

 

12.3 %

Other manufacturing

18.4 %

 

17.9 %

 

20.2 %

 

19.8 %

 

21.6 %

Gross margin

17.5 %

 

20.2 %

 

21.0 %

 

18.8 %

 

20.0 %

(1)

Advanced products include flip chip, memory and wafer-level processing and related test services.

(2)

Mainstream products include all other wirebond packaging and related test services

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:

 

 

 

 

 

 

 

 

 

(in millions)

Q4 2022

 

Q3 2022

 

Q4 2021

 

2022

 

2021

EBITDA Data:

 

 

 

 

 

 

 

 

 

Net income

$

164

 

$

306

 

$

217

 

$

767

 

$

646

Plus: Interest expense

 

15

 

 

15

 

 

13

 

 

59

 

 

52

Plus: Income tax expense

 

46

 

 

4

 

 

25

 

 

90

 

 

69

Plus: Depreciation & amortization

 

157

 

 

156

 

 

143

 

 

613

 

 

564

EBITDA

$

382

 

$

481

 

$

398

 

$

1,529

 

$

1,331

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:

 

 

 

(in millions)

2022

 

2021

Free Cash Flow Data:

 

 

 

Net cash provided by operating activities

$

1,099

 

 

$

1,121

 

Less: Purchases of property, plant and equipment

 

(908

)

 

 

(780

)

Plus: Proceeds from sale of and insurance recovery for property, plant and equipment

 

3

 

 

 

3

 

Free cash flow

$

194

 

 

$

344

 

AMKOR TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

 

For the Three Months Ended December 31,

 

For the Year Ended December 31,

 

2022

 

2021

 

2022

 

2021

Net sales

$

1,906,210

 

$

1,724,644

 

 

$

7,091,585

 

 

$

6,138,329

 

Cost of sales

 

1,571,936

 

 

1,362,276

 

 

 

5,761,598

 

 

 

4,912,775

 

Gross profit

 

334,274

 

 

362,368

 

 

 

1,329,987

 

 

 

1,225,554

 

Selling, general and administrative

 

69,598

 

 

72,546

 

 

 

283,372

 

 

 

296,084

 

Research and development

 

39,594

 

 

37,413

 

 

 

149,429

 

 

 

166,037

 

Total operating expenses

 

109,192

 

 

109,959

 

 

 

432,801

 

 

 

462,121

 

Operating income

 

225,082

 

 

252,409

 

 

 

897,186

 

 

 

763,433

 

Interest expense

 

14,943

 

 

13,175

 

 

 

58,563

 

 

 

51,508

 

Other (income) expense, net

 

520

 

 

(2,633

)

 

 

(18,309

)

 

 

(3,141

)

Total other expense, net

 

15,463

 

 

10,542

 

 

 

40,254

 

 

 

48,367

 

Income before taxes

 

209,619

 

 

241,867

 

 

 

856,932

 

 

 

715,066

 

Income tax expense

 

45,731

 

 

24,584

 

 

 

89,890

 

 

 

69,459

 

Net income

 

163,888

 

 

217,283

 

 

 

767,042

 

 

 

645,607

 

Net income attributable to noncontrolling interests

 

413

 

 

(757

)

 

 

(1,219

)

 

 

(2,612

)

Net income attributable to Amkor

$

164,301

 

$

216,526

 

 

$

765,823

 

 

$

642,995

 

 

 

 

 

 

 

 

 

Net income attributable to Amkor per common share:

 

 

 

 

 

 

 

Basic

$

0.67

 

$

0.89

 

 

$

3.13

 

 

$

2.64

 

Diluted

$

0.67

 

$

0.88

 

 

$

3.11

 

 

$

2.62

 

Shares used in computing per common share amounts:

 

 

 

 

 

 

 

Basic

 

244,957

 

 

244,267

 

 

 

244,676

 

 

 

243,878

 

Diluted

 

246,693

 

 

245,894

 

 

 

246,205

 

 

 

245,704

 

AMKOR TECHNOLOGY, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

December 31,

 

2022

 

2021

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

959,072

 

 

$

826,744

 

Restricted cash

 

 

 

 

962

 

Short-term investments

 

281,964

 

 

 

251,530

 

Accounts receivable, net of allowances

 

1,365,504

 

 

 

1,258,767

 

Inventories

 

629,576

 

 

 

484,959

 

Other current assets

 

65,123

 

 

 

33,601

 

Total current assets

 

3,301,239

 

 

 

2,856,563

 

Property, plant and equipment, net

 

3,135,614

 

 

 

2,871,058

 

Operating lease right of use assets

 

171,163

 

 

 

159,742

 

Goodwill

 

21,517

 

 

 

24,516

 

Restricted cash

 

3,334

 

 

 

3,815

 

Other assets

 

188,890

 

 

 

122,860

 

Total assets

$

6,821,757

 

 

$

6,038,554

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

Current liabilities:

 

 

 

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

$

143,813

 

 

$

153,008

 

Trade accounts payable

 

899,164

 

 

 

828,727

 

Capital expenditures payable

 

146,602

 

 

 

210,875

 

Short-term operating lease liability

 

70,991

 

 

 

64,233

 

Accrued expenses

 

401,841

 

 

 

422,892

 

Total current liabilities

 

1,662,411

 

 

 

1,679,735

 

Long-term debt

 

1,088,521

 

 

 

984,988

 

Pension and severance obligations

 

93,540

 

 

 

120,472

 

Long-term operating lease liabilities

 

75,745

 

 

 

83,937

 

Other non-current liabilities

 

201,839

 

 

 

196,876

 

Total liabilities

 

3,122,056

 

 

 

3,066,008

 

 

 

 

 

Amkor stockholders’ equity:

 

 

 

Preferred stock

 

 

 

 

 

Common stock

 

291

 

 

 

290

 

Additional paid-in capital

 

1,996,344

 

 

 

1,977,134

 

Retained earnings

 

1,874,644

 

 

 

1,163,939

 

Accumulated other comprehensive income

 

16,699

 

 

 

19,978

 

Treasury stock

 

(219,226

)

 

 

(219,065

)

Total Amkor stockholders’ equity

 

3,668,752

 

 

 

2,942,276

 

Noncontrolling interests in subsidiaries

 

30,949

 

 

 

30,270

 

Total equity

 

3,699,701

 

 

 

2,972,546

 

Total liabilities and equity

$

6,821,757

 

 

$

6,038,554

 

AMKOR TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

For the Year Ended December 31,

 

2022

 

2021

Cash flows from operating activities:

 

 

 

Net income

$

767,042

 

 

$

645,607

 

Depreciation and amortization

 

612,702

 

 

 

563,582

 

Other operating activities and non-cash items

 

422

 

 

 

36,460

 

Changes in assets and liabilities

 

(281,410

)

 

 

(124,354

)

Net cash provided by operating activities

 

1,098,756

 

 

 

1,121,295

 

 

 

 

 

Cash flows from investing activities:

 

 

 

Payments for property, plant and equipment

 

(908,294

)

 

 

(779,779

)

Proceeds from sale of property, plant and equipment

 

3,148

 

 

 

3,157

 

Proceeds from insurance recovery for property, plant and equipment

 

 

 

 

104

 

Payments for short-term investments

 

(438,803

)

 

 

(414,208

)

Proceeds from sale of short-term investments

 

33,972

 

 

 

87,273

 

Proceeds from maturities of short-term investments

 

370,924

 

 

 

204,679

 

Other investing activities

 

(68,116

)

 

 

(45,105

)

Net cash used in investing activities

 

(1,007,169

)

 

 

(943,879

)

 

 

 

 

Cash flows from financing activities:

 

 

 

Proceeds from revolving credit facilities

 

80,000

 

 

 

 

Payments of revolving credit facilities

 

(80,000

)

 

 

 

Proceeds from short-term debt

 

29,711

 

 

 

15,514

 

Payments of short-term debt

 

(27,187

)

 

 

(19,927

)

Proceeds from issuance of long-term debt

 

366,386

 

 

 

353,587

 

Payments of long-term debt

 

(214,290

)

 

 

(316,635

)

Payments of finance lease obligations

 

(40,673

)

 

 

(20,373

)

Payments of dividends

 

(55,116

)

 

 

(51,213

)

Other financing activities

 

(3,234

)

 

 

8,945

 

Net cash provided by (used in) financing activities

 

55,597

 

 

 

(30,102

)

 

 

 

 

Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash

 

(16,299

)

 

 

(17,990

)

 

 

 

 

Net increase in cash, cash equivalents and restricted cash

 

130,885

 

 

 

129,324

 

Cash, cash equivalents and restricted cash, beginning of period

 

831,521

 

 

 

702,197

 

Cash, cash equivalents and restricted cash, end of period

$

962,406

 

 

$

831,521

 

Forward-Looking Statement Disclaimer

This press release contains forward-looking statements within the meaning of the federal securities laws. You are cautioned not to place undue reliance on forward-looking statements, which are often characterized by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or “intend,” by the negative of these terms or other comparable terminology or by discussions of strategy, plans or intentions. All forward-looking statements in this press release are made based on our current expectations, forecasts, estimates and assumptions. Because such statements include risks and uncertainties, actual results may differ materially from those anticipated in such forward-looking statements as a result of various factors, 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, 2021 (the “Form 10-K”) and from time to time in our other reports filed with or furnished to the Securities and Exchange Commission (“SEC”). You should carefully consider the trends, risks and uncertainties described in this press release, the Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties continues or occurs, our business, financial condition or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement. We assume 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 applicable law.



Contact:

Jennifer Jue
Senior Director, Investor Relations and Finance
480-786-7594
jennifer.jue@amkor.com