First Quarter Highlights
TEMPE, Ariz.--(BUSINESS WIRE)-- Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the first quarter ended March 31, 2021.
“Amkor delivered a first quarter revenue record of $1.33 billion, a 15% increase over the first quarter of last year,” said Giel Rutten, Amkor’s president and chief executive officer. “Continued strength in Advanced packaging and year-on-year growth of 13% in our Mainstream business led to better than seasonal results in Communications and to sequential growth in Automotive & Industrial, Consumer, and Computing end markets.”
Results |
| Q1 2021 |
| Q4 2020 (1) |
| Q1 2020 |
|
| ($ in millions, except per share data) | ||||
Net sales |
| $1,326 |
| $1,371 |
| $1,153 |
Gross margin |
| 20.0% |
| 20.3% |
| 16.4% |
Operating income |
| $144 |
| $159 |
| $84 |
Operating income margin |
| 10.9% |
| 11.6% |
| 7.3% |
Net income attributable to Amkor |
| $120 |
| $127 |
| $64 |
Earnings per diluted share |
| $0.49 |
| $0.52 |
| $0.26 |
EBITDA (2) |
| $280 |
| $288 |
| $210 |
(1) Q4 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) EBITDA is a non-GAAP financial measure. The reconciliation to the comparable GAAP financial measure is included below under “Selected Operating Data.” |
“We continued to operate at high utilization rates across our factories in the quarter, driving significant improvement in year-on-year profitability to 20% gross margin and 11% operating income margin. EPS of $0.49 is a first quarter record,” said Megan Faust, Amkor’s executive vice president and chief financial officer. “Strong operating results and a solid balance sheet provide us the ability to invest in future growth, particularly for Advanced packaging technologies.”
At March 31, 2021, total cash and short-term investments was $0.8 billion, and total debt was $1.1 billion.
We paid a quarterly dividend of $0.04 per share, representing a dividend payment of $9.7 million in the aggregate, on March 15, 2021 to stockholders of record as of February 23, 2021. 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
“We believe the second quarter will be another solid quarter, with revenue of $1.34 billion at the midpoint of our guidance. Our forecast reflects capacity constraints in wafers and substrates that are expected to affect portions of the supply chain in the near term, and we are working closely with our customers and suppliers to mitigate the impact,” said Rutten. “Overall, we continue to see solid demand across all of our key markets and remain confident that our strong position in Advanced packaging will enable us to outgrow the semiconductor market in 2021.”
Second quarter 2021 outlook (unless otherwise noted):
Conference Call Information
Amkor will conduct a conference call on Monday, April 26, 2021, 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 https://ir.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 13718212).
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 www.amkor.com.
AMKOR TECHNOLOGY, INC. Selected Operating Data | |||||||||||
| Q1 2021 |
| Q4 2020 |
| Q1 2020 | ||||||
Net Sales Data: |
|
|
|
|
| ||||||
Net sales (in millions): |
|
|
|
|
| ||||||
Advanced products (1) (3) | $ | 921 |
|
| $ | 972 |
|
| $ | 795 |
|
Mainstream products (2) (3) | 405 |
|
| 399 |
|
| 358 |
| |||
Total net sales | $ | 1,326 |
|
| $ | 1,371 |
|
| $ | 1,153 |
|
|
|
|
|
|
| ||||||
Packaging services | 85 | % |
| 85 | % |
| 85 | % | |||
Test services | 15 | % |
| 15 | % |
| 15 | % | |||
|
|
|
|
|
| ||||||
Net sales from top ten customers | 61 | % |
| 61 | % |
| 67 | % | |||
|
|
|
|
|
| ||||||
End Market Data: |
|
|
|
|
| ||||||
Communications (handheld devices, smartphones, tablets) | 40 | % |
| 46 | % |
| 38 | % | |||
Consumer (connected home, set-top boxes, televisions, visual imaging, wearables) | 21 | % |
| 19 | % |
| 24 | % | |||
Automotive, industrial and other (driver assist, infotainment, performance, safety) | 22 | % |
| 19 | % |
| 23 | % | |||
Computing (data center, infrastructure, PC/laptop, storage) | 17 | % |
| 16 | % |
| 15 | % | |||
Total | 100 | % |
| 100 | % |
| 100 | % | |||
|
|
|
|
|
| ||||||
Gross Margin Data: |
|
|
|
|
| ||||||
Net sales | 100.0 | % |
| 100.0 | % |
| 100.0 | % | |||
Cost of sales: |
|
|
|
|
| ||||||
Materials | 43.2 | % |
| 44.6 | % |
| 45.3 | % | |||
Labor | 13.8 | % |
| 12.9 | % |
| 14.2 | % | |||
Other manufacturing | 23.0 | % |
| 22.2 | % |
| 24.1 | % | |||
Gross margin | 20.0 | % |
| 20.3 | % |
| 16.4 | % |
(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. (3) Beginning in 2021, we are reporting memory net sales in Advanced products. Previously memory net sales were reported in Mainstream products. Prior year amounts were reclassified to conform to current year presentation.
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, our ability to service debt and our ability to fund capital expenditures. 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 Measure Reconciliation: |
|
|
|
|
| ||||||
| Q1 2021 |
| Q4 2020 |
| Q1 2020 | ||||||
| (in millions) | ||||||||||
EBITDA Data: |
|
|
|
|
| ||||||
Net income | $ | 120 |
|
| $ | 127 |
|
| $ | 64 |
|
Plus: Interest expense | 13 |
|
| 15 |
|
| 17 |
| |||
Plus: Income tax expense | 12 |
|
| 13 |
|
| 5 |
| |||
Plus: Depreciation & amortization | 135 |
|
| 133 |
|
| 124 |
| |||
EBITDA | $ | 280 |
|
| $ | 288 |
|
| $ | 210 |
|
AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||
| For the Three Months Ended March 31, | ||||||||
| 2021 |
| 2020 | ||||||
| (In thousands, except per share data) | ||||||||
Net sales | $ | 1,326,150 |
|
|
| $ | 1,152,616 |
|
|
Cost of sales | 1,060,616 |
|
|
| 963,708 |
|
| ||
Gross profit | 265,534 |
|
|
| 188,908 |
|
| ||
Selling, general and administrative | 76,768 |
|
|
| 72,582 |
|
| ||
Research and development | 44,318 |
|
|
| 32,253 |
|
| ||
Total operating expenses | 121,086 |
|
|
| 104,835 |
|
| ||
Operating income | 144,448 |
|
|
| 84,073 |
|
| ||
Interest expense | 12,673 |
|
|
| 17,045 |
|
| ||
Other (income) expense, net | 89 |
|
|
| (2,315 | ) |
| ||
Total other expense, net | 12,762 |
|
|
| 14,730 |
|
| ||
Income before taxes | 131,686 |
|
|
| 69,343 |
|
| ||
Income tax expense | 11,667 |
|
|
| 4,846 |
|
| ||
Net income | 120,019 |
|
|
| 64,497 |
|
| ||
Net income attributable to non-controlling interests | (210 | ) |
|
| (608 | ) |
| ||
Net income attributable to Amkor | $ | 119,809 |
|
|
| $ | 63,889 |
|
|
|
|
|
| ||||||
Net income attributable to Amkor per common share: |
|
|
| ||||||
Basic | $ | 0.49 |
|
|
| $ | 0.27 |
|
|
Diluted | $ | 0.49 |
|
|
| $ | 0.26 |
|
|
|
|
|
| ||||||
Shares used in computing per common share amounts: |
|
|
| ||||||
Basic | 243,267 |
|
|
| 240,919 |
|
| ||
Diluted | 245,129 |
|
|
| 241,333 |
|
|
AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||||
| March 31, 2021 |
| December 31, 2020 | ||||||
| (In thousands) | ||||||||
ASSETS | |||||||||
Current assets: |
|
|
| ||||||
Cash and cash equivalents | $ | 650,274 |
|
|
| $ | 698,002 |
|
|
Restricted cash | 933 |
|
|
| 1,007 |
|
| ||
Short-term investments | 163,693 |
|
|
| 133,769 |
|
| ||
Accounts receivable, net of allowances | 950,015 |
|
|
| 962,643 |
|
| ||
Inventories | 307,545 |
|
|
| 297,293 |
|
| ||
Other current assets | 41,594 |
|
|
| 40,218 |
|
| ||
Total current assets | 2,114,054 |
|
|
| 2,132,932 |
|
| ||
Property, plant and equipment, net | 2,623,470 |
|
|
| 2,566,002 |
|
| ||
Operating lease right of use assets | 141,247 |
|
|
| 147,236 |
|
| ||
Goodwill | 25,481 |
|
|
| 27,325 |
|
| ||
Restricted cash | 3,565 |
|
|
| 3,188 |
|
| ||
Other assets | 145,648 |
|
|
| 145,628 |
|
| ||
Total assets | $ | 5,053,465 |
|
|
| $ | 5,022,311 |
|
|
LIABILITIES AND EQUITY | |||||||||
Current liabilities: |
|
|
| ||||||
Short-term borrowings and current portion of long-term debt | $ | 135,405 |
|
|
| $ | 149,007 |
|
|
Trade accounts payable | 602,962 |
|
|
| 636,434 |
|
| ||
Capital expenditures payable | 273,934 |
|
|
| 181,339 |
|
| ||
Accrued expenses | 304,556 |
|
|
| 349,207 |
|
| ||
Total current liabilities | 1,316,857 |
|
|
| 1,315,987 |
|
| ||
Long-term debt | 952,366 |
|
|
| 1,005,339 |
|
| ||
Pension and severance obligations | 146,118 |
|
|
| 159,610 |
|
| ||
Long-term operating lease liabilities | 77,651 |
|
|
| 84,420 |
|
| ||
Other non-current liabilities | 98,236 |
|
|
| 102,996 |
|
| ||
Total liabilities | 2,591,228 |
|
|
| 2,668,352 |
|
| ||
|
|
|
| ||||||
Stockholders’ equity: |
|
|
| ||||||
Preferred stock | — |
|
|
| — |
|
| ||
Common stock | 290 |
|
|
| 289 |
|
| ||
Additional paid-in capital | 1,964,331 |
|
|
| 1,953,378 |
|
| ||
Retained earnings | 672,534 |
|
|
| 562,502 |
|
| ||
Accumulated other comprehensive income (loss) | 15,823 |
|
|
| 27,270 |
|
| ||
Treasury stock | (219,061 | ) |
|
| (217,740 | ) |
| ||
Total Amkor stockholders’ equity | 2,433,917 |
|
|
| 2,325,699 |
|
| ||
Non-controlling interests in subsidiaries | 28,320 |
|
|
| 28,260 |
|
| ||
Total equity | 2,462,237 |
|
|
| 2,353,959 |
|
| ||
Total liabilities and equity | $ | 5,053,465 |
|
|
| $ | 5,022,311 |
|
|
AMKOR TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||||
| For the Three Months Ended March 31, | ||||||||
| 2021 |
| 2020 | ||||||
| (In thousands) | ||||||||
Cash flows from operating activities: |
|
|
| ||||||
Net income | $ | 120,019 |
|
|
| $ | 64,497 |
|
|
Depreciation and amortization | 135,390 |
|
|
| 123,657 |
|
| ||
Other operating activities and non-cash items | 2,370 |
|
|
| 8,287 |
|
| ||
Changes in assets and liabilities | (80,991 | ) |
|
| (99,852 | ) |
| ||
Net cash provided by operating activities | 176,788 |
|
|
| 96,589 |
|
| ||
Cash flows from investing activities: |
|
|
| ||||||
Payments for property, plant and equipment | (110,351 | ) |
|
| (55,888 | ) |
| ||
Proceeds from sale of property, plant and equipment | 547 |
|
|
| 1,887 |
|
| ||
Proceeds from sale of short-term investments | 19,838 |
|
|
| 31 |
|
| ||
Proceeds from maturities of short-term investments | 43,790 |
|
|
| 6,134 |
|
| ||
Payments for short-term investments | (92,879 | ) |
|
| (55,754 | ) |
| ||
Other investing activities | (25,317 | ) |
|
| (1,002 | ) |
| ||
Net cash used in investing activities | (164,372 | ) |
|
| (104,592 | ) |
| ||
Cash flows from financing activities: |
|
|
| ||||||
Proceeds from revolving credit facilities | — |
|
|
| 201,000 |
|
| ||
Proceeds from short-term debt | 3,679 |
|
|
| 14,086 |
|
| ||
Payments of short-term debt | (7,803 | ) |
|
| (9,409 | ) |
| ||
Proceeds from issuance of long-term debt | 50,000 |
|
|
| 24,000 |
|
| ||
Payments of long-term debt | (79,684 | ) |
|
| (172,336 | ) |
| ||
Payments of finance lease obligations | (3,216 | ) |
|
| (2,355 | ) |
| ||
Payments of dividends | (19,457 | ) |
|
| — |
|
| ||
Other financing activities | 7,037 |
|
|
| 109 |
|
| ||
Net cash (used in) provided by financing activities | (49,444 | ) |
|
| 55,095 |
|
| ||
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | (10,397 | ) |
|
| (300 | ) |
| ||
Net (decrease) increase in cash, cash equivalents and restricted cash | (47,425 | ) |
|
| 46,792 |
|
| ||
Cash, cash equivalents and restricted cash, beginning of period | 702,197 |
|
|
| 898,532 |
|
| ||
Cash, cash equivalents and restricted cash, end of period | $ | 654,772 |
|
|
| $ | 945,324 |
|
|
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, 2020 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/20210426005789/en/
Jennifer Jue Senior Director, Investor Relations and Finance 480-786-7594 jennifer.jue@amkor.com
Source: Amkor Technology, Inc.