<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Amendment No. 2 to
FORM 8-K
Dated April 21, 1999, as filed on April 26, 1999
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
April 21, 1999
------------------------------------------------
Date of Report (Date of earliest event reported)
AMKOR TECHNOLOGY, INC.
------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware
----------------------------------------------
(State or other jurisdiction of incorporation)
0-29472 23-1722724
--------------------- ------------------------------------
(Commission File No.) (IRS Employer Identification Number)
1345 Enterprise Drive
West Chester, PA 19380
(610) 431-9600
----------------------------------------
(Address of Principal Executive Offices)
-------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE> 2
Item 7. FINANCIAL STATEMENTS AND EXHIBITS.
The following financial statements and exhibits are filed as part of
this Report:
(a) Financial statements of Kwangju Packaging business of Anam
Semiconductor, Inc. ("K4")
(i) Financial statements of K4 for the year ended December 31, 1998
were previously filed with this report on April 26, 1999 and are incorporated
herein by reference.
<PAGE> 3
(b) Pro forma financial information.
(i) Pro forma financial information for the year ended December 31,
1998.
(ii) Pro forma financial information for the three month period
ended March 31, 1999.
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL DATA
The unaudited pro forma consolidated balance sheets as of March 31, 1999
and December 31, 1998 give effect to the Transaction as if it had occurred on
March 31, 1999 and December 31, 1998, respectively. The unaudited pro forma
consolidated income statements for the three months ended March 31, 1999 and the
year ended December 31, 1998 give effect to the Transaction as if it had
occurred on January 1, 1999 and January 1, 1998, respectively.
We have used the purchase method of accounting in accordance with APB
Opinion No. 16 to prepare the accompanying unaudited pro forma consolidated
financial information. Under this method of accounting, we allocated the $575.0
million aggregate purchase price of K4, plus $7.0 million of assumed employee
benefit liabilities, to specific assets acquired and liabilities assumed based
on their estimated fair values. The purchase price does not include $20.3
million of estimated transaction fees and expenses. The balance of the purchase
price of K4 represents the excess of cost over net assets acquired. We have
estimated the preliminary fair value of K4's assets and liabilities based on a
draft appraisal. We will determine the final allocation of the purchase price
based upon the receipt of the final appraisal. We have not completed all of the
work required to fully evaluate the assets acquired and liabilities assumed as
of the date of this filing. Accordingly, we may not finalize purchase accounting
adjustments for up to one year after the closing.
We have prepared the unaudited pro forma consolidated financial information
in accordance with U.S. GAAP. These principles require us to make extensive use
of estimates and assumptions that affect: (1) the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date
of the consolidated financial statements and (2) the reported amounts of
revenues and expenses during the reporting periods. Actual results could differ
from those estimates. The unaudited pro forma consolidated income statements for
the three months ended March 31, 1999 and the year ended December 31, 1998 is
not necessarily indicative of our future operating results.
You should read the unaudited pro forma consolidated financial information
in conjunction with our consolidated financial statements and the notes thereto
and the financial statements of K4 and the notes thereto, included elsewhere in
other filings.
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 1998
<TABLE>
<CAPTION>
PRO FORMA PRO FORMA
ADJUSTMENTS ADJUSTMENTS
AMKOR K4 FOR K4 FOR THE PRO FORMA
HISTORICAL HISTORICAL ACQUISITION OFFERING AS ADJUSTED
---------- ---------- ----------- ----------- -----------
(IN THOUSANDS)
<S> <C> <C> <C> <C> <C>
ASSETS
Cash and cash equivalents................. $ 227,587 $ -- $ -- $ 29,714(a) $ 257,301
Short-term investments.................... 1,000 -- -- -- 1,000
Accounts receivable:
Trade................................... 109,243 2,615 (2,615)(b) -- 109,243
Due from affiliates..................... 25,990 2,253 (2,253)(b) -- 25,990
Other................................... 5,900 745 (745)(b) -- 5,900
Inventories............................... 85,628 1,762 -- -- 87,390
Other current assets...................... 16,687 2,111 -- -- 18,798
---------- -------- --------- -------- ----------
Total current assets............. 472,035 9,486 (5,613) 29,714 505,622
---------- -------- --------- -------- ----------
Property, plant and equipment, net........ 416,111 469,392 (172,092)(d) -- 713,411
---------- -------- --------- -------- ----------
Investments............................... 25,476 -- -- -- 25,476
---------- -------- --------- -------- ----------
Other assets:
Excess of cost over net assets
acquired.............................. 24,595 -- 280,794 (c) -- 305,389
Due from affiliates..................... 28,885 401 (401)(b) -- 28,885
Other................................... 36,495 639 (639)(b) 20,286(e) 56,781
---------- -------- --------- -------- ----------
Total other assets............... 89,975 1,040 279,754 20,286 391,055
---------- -------- --------- -------- ----------
Total assets..................... $1,003,597 $479,918 $ 102,049 $ 50,000 $1,635,564
========== ======== ========= ======== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term borrowings and current portion
of long-term debt....................... $ 38,657 $295,454 $(295,454)(b) $ -- $ 38,657
Trade accounts payable.................... 96,948 7,752 (7,752)(b) -- 96,948
Due to affiliates......................... 15,722 -- -- -- 15,722
Bank overdraft............................ 13,429 -- -- -- 13,429
Accrued expenses.......................... 77,004 7,556 (7,556)(b) -- 77,004
Accrued income taxes...................... 38,892 -- -- -- 38,892
---------- -------- --------- -------- ----------
Total current liabilities........ 280,652 310,762 (310,762) -- 280,652
Long-term debt............................ 14,846 186,421 (186,421)(b) 625,000(f) 639,846
Convertible subordinated notes............ 207,000 -- -- -- 207,000
Other noncurrent liabilities.............. 10,738 6,967 -- -- 17,705
---------- -------- --------- -------- ----------
Total liabilities................ 513,236 504,150 (497,183) 625,000 1,145,203
---------- -------- --------- -------- ----------
Stockholders' equity:
Common stock............................ 118 -- -- -- 118
Additional paid-in capital.............. 381,061 -- -- -- 381,061
Retained earnings....................... 109,738 -- -- -- 109,738
Unrealized losses....................... (556) -- -- -- (556)
Net assets (liabilities)................ -- (24,232) 24,232(b) -- --
---------- -------- --------- -------- ----------
Total stockholders' equity....... 490,361 (24,232) 24,232 -- 490,361
---------- -------- --------- -------- ----------
Total liabilities and
stockholders' equity........... $1,003,597 $479,918 $(472,951) $625,000 $1,635,564
========== ======== ========= ======== ==========
</TABLE>
- ---------------------------
(a) Represents remaining cash from the offering after paying the purchase price
of K4 and transaction fees and expenses.
(b) Represents the elimination of those assets and liabilities of K4 that we
will not acquire or assume as part of the Acquisition.
(c) Represents the excess of the purchase price for K4 over the fair value of
net assets acquired.
(d) Represents the excess of book value over fair market value of the property,
plant and equipment acquired.
(e) Represents transaction fees and expenses, which we have recorded as deferred
financing costs.
(f) Represents the issuance of $425,000 of Senior Notes and $200,000 of Senior
Subordinated Notes.
<PAGE> 4
UNAUDITED PRO FORMA CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
PRO FORMA PRO FORMA
ADJUSTMENTS ADJUSTMENTS
AMKOR FOR K4 FOR THE PRO FORMA
HISTORICAL K4 HISTORICAL ACQUISITION OFFERING AS ADJUSTED
---------- ------------- ----------- ----------- -----------
(IN THOUSANDS)
<S> <C> <C> <C> <C> <C>
Net revenues............................... $1,567,983 $ 90,986 $(81,375)(a) $ -- $1,577,594
Cost of revenues -- including purchases
from ASI................................. 1,307,150 77,790 (81,375)(a) -- 1,318,222
28,079 (b)
(13,422)(c)
---------- -------- -------- -------- ----------
Gross profit........................... 260,833 13,196 (14,657) -- 259,372
---------- -------- -------- -------- ----------
Operating expenses:
Selling, general and administrative...... 119,846 7,200 -- -- 127,046
Research and development................. 8,251 1,166 -- -- 9,417
---------- -------- -------- -------- ----------
Total operating expenses.......... 128,097 8,366 -- -- 136,463
---------- -------- -------- -------- ----------
Operating income....................... 132,736 4,830 (14,657) -- 122,909
---------- -------- -------- -------- ----------
Other (income) expense:
Interest expense, net.................... 18,005 44,051 (44,051)(d) 62,975(e) 80,980
Foreign currency (gain) loss............. 4,493 55,205 (55,205)(d) -- 4,493
Other (income) expense, net.............. 9,503 (271) -- -- 9,232
---------- -------- -------- -------- ----------
Total other (income) expense...... 32,001 98,985 (99,256) 62,975 94,705
---------- -------- -------- -------- ----------
Income (loss) before income taxes and
minority interest.................... 100,735 (94,155) 84,599 (62,975) 28,204
Provision for (benefit from) income
taxes.................................... 24,716 -- -- (15,190)(f) 9,526
Minority interest.......................... 559 -- -- -- 559
---------- -------- -------- -------- ----------
Net income (loss)(g)................... $ 75,460 $(94,155) $ 84,599 $(47,785) $ 18,119
========== ======== ======== ======== ==========
PRO FORMA DATA (UNAUDITED):
Historical income (loss) before income
taxes and minority interest............ $ 100,735 $(94,155) $ 84,599 $(62,975) $ 28,204
Pro forma provision for income
taxes(g)............................... 29,216 -- -- (15,190) 14,026
---------- -------- -------- -------- ----------
Pro forma income before minority
interest(g)............................ 71,519 (94,155) 84,599 (47,785) 14,178
Historical minority interest............. 559 -- -- -- 559
---------- -------- -------- -------- ----------
Pro forma net income(g).................. $ 70,960 $(94,155) $ 84,599 $(47,785) $ 13,619
========== ======== ======== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
AMKOR PRO FORMA
HISTORICAL AS ADJUSTED
---------- -----------
<S> <C> <C>
BASIC NET INCOME PER COMMON SHARE(g)........ $ .71 $ .17
========== ==========
DILUTED NET INCOME PER COMMON SHARE(g)...... $ .70 $ .17
========== ==========
BASIC PRO FORMA NET INCOME PER COMMON
SHARE(g)................................... $ .67 $ .13
========== ==========
DILUTED PRO FORMA NET INCOME PER COMMON
SHARE(g)................................... $ .66 $ .13
========== ==========
</TABLE>
<PAGE> 5
- ---------------------------
(a) We have eliminated the processing charges that we have paid to ASI for
services performed for us at the K4 factory under our supply agreements.
Because we currently sell substantially all of K4's services, the net
revenues from the sale of K4's services to our customers are already
reflected in our historical net revenues.
(b) Represents amortization of goodwill related to the Acquisition, assuming a
ten-year life.
(c) Represents change in depreciation expense based on adjusted book values of
acquired property, plant and equipment.
(d) Represents the elimination of interest expense and foreign currency losses
related to debt of K4, which we will not assume as part of the Acquisition.
(e) Represents: (1) interest expense on $625,000 of Notes at an assumed weighted
average interest rate of 9.65% and (2) $2,593 of amortization of deferred
debt issuance costs, which are amortized over the life of the respective
debt.
(f) Represents an income tax benefit due to the pro forma adjustment for
interest expense.
(g) Prior to our reorganization in April 1998, our predecessor, AEI, elected to
be taxed as an S Corporation under the Code. As a result, AEI did not
recognize any provision for federal income tax expense during the period
presented. In accordance with applicable SEC regulations, we have presented
a pro forma adjustment (unaudited) for income taxes to reflect the
additional U.S. federal income taxes that we would have recorded if AEI had
been a C Corporation during this period. We used 106,221 shares of common
stock to compute basic net income per common share and 116,596 shares of
common stock and common stock equivalents to compute diluted net income per
common share.
<PAGE> 6
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------
PRO FORMA PRO FORMA
ADJUSTMENTS ADJUSTMENTS
AMKOR K4 FOR FOR THE PRO FORMA
HISTORICAL HISTORICAL K4 ACQUISITION OFFERING AS ADJUSTED
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash & cash equivalents $ 164,381 -- -- 29,714 (a) $ 194,095
Short-term investments 53,475 53,475
Accounts Receivable:
Trade 120,754 -- -- -- 120,754
Affiliates 5,058 5,140 (5,140)(b) 5,058
Other 2,734 639 (639)(b) 2,734
Inventories 84,080 2,271 86,351
Other current assets 20,021 1,575 21,596
- ----------------------------------------------------------------------------------------------------------------------------------
Total current assets 450,503 9,625 (5,779) 29,714 484,063
- ----------------------------------------------------------------------------------------------------------------------------------
Property, plant and equipment, net 426,105 461,116 (163,816)(d) -- 723,405
- ----------------------------------------------------------------------------------------------------------------------------------
Investments 24,897 24,897
- ----------------------------------------------------------------------------------------------------------------------------------
Other Assets:
Excess of cost over net assets acquired 23,825 280,438 (c) 304,263
Due from affiliates 29,317 -- 29,317
Other assets 37,035 805 (805)(b) 20,286 (e) 57,321
- ----------------------------------------------------------------------------------------------------------------------------------
Total other assets 90,177 805 279,633 20,286 390,901
- ----------------------------------------------------------------------------------------------------------------------------------
Total assets $ 991,682 $ 471,546 $ 110,038 $ 50,000 $ 1,623,266
==================================================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term borrowings & current portion
of long-term debt $ 25,000 69,918 (69,918)(b) $ 25,000
Trade accounts payable 100,326 8,057 (8,057)(b) 100,326
Due to affiliates 19,220 19,220
Bank overdraft 11,480 11,480
Accrued expenses 58,336 7,902 (7,902)(b) 58,336
Accrued income taxes 35,884 35,884
- ----------------------------------------------------------------------------------------------------------------------------------
Total current liabilities 250,246 85,877 (85,877) -- 250,246
- ----------------------------------------------------------------------------------------------------------------------------------
Long-term borrowings from banks & other 13,119 397,634 (397,634)(b) 625,000 (f) 638,119
Convertible subordinated notes 207,000 207,000
Other noncurrent liabilities 12,137 6,584 18,721
- ----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 482,602 490,095 (483,511) 625,000 1,114,086
- ----------------------------------------------------------------------------------------------------------------------------------
STOCKHOLDER'S EQUITY:
Common stock 118 118
Additional paid-in capital 381,061 381,061
Retained earnings 128,663 128,663
Accumulated other comprehensive income (662) (662)
Net assets in excess of liabilities -- (18,549) 18,549 (b) --
- ----------------------------------------------------------------------------------------------------------------------------------
Total stockholders' equity 509,180 (18,549) 18,549 -- 509,180
- ----------------------------------------------------------------------------------------------------------------------------------
Total liabilities and
stockholders' equity $ 991,682 471,546 (464,962) 625,000 $ 1,623,266
==================================================================================================================================
</TABLE>
(a) Represents remaining cash from the offering after paying the purchase price
of K4 and transaction fees and expenses.
(b) Represents the elimination of those assets and liabilities of K4 that we
will not acquire or assume as part of the Acquisition.
(c) Represents the excess of the purchase price for K4 over the fair value of
net assets acquired.
(d) Represents the excess of the book value over the fair market value of the
property, plant and equipment acquired.
(e) Represents transaction fees and expenses, which have been recorded as
deferred financing costs.
(f) Represents the issuance of $425,000 of Senior Notes and $200,000 of Senior
Subordinated Notes.
<PAGE> 7
UNAUDITED PRO FORMA CONSOLIDATED INCOME STATEMENT
FOR THE THREE MONTHS ENDED MARCH 31, 1999
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------
PRO FORMA PRO FORMA
ADJUSTMENTS ADJUSTMENTS
AMKOR K4 FOR FOR PRO FORMA
HISTORICAL HISTORICAL K4 ACQUISITION THE OFFERING AS ADJUSTED
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Revenues $ 419,957 29,261 (26,424)(a) $ 422,794
Cost of revenues, including
revenues from ASI 357,382 20,607 (26,424)(a) 355,411
7,011 (b)
(3,165)(c)
---------------------------------------- --------- ---------
Gross Profit 62,575 8,654 (3,846) -- 67,383
---------------------------------------- --------- ---------
Operating Expenses:
Selling, General and Administrative 30,106 1,535 31,641
Research and Development 2,251 351 2,602
---------------------------------------- --------- ---------
Total Operating Expenses 32,357 1,886 -- -- 34,243
---------------------------------------- --------- ---------
Operating Income 30,218 6,768 (3,846) -- 33,140
Other (income) expense:
Interest expense, net 1,635 12,246 (12,246)(c) 15,528 (d) 17,163
Foreign exchange (gain) loss 306 (6,790) 6,790 (c) 306
Other (income) expense, net 1,622 73 1,695
---------------------------------------- --------- ---------
Total other (income) expense 3,563 5,529 (5,456) 15,528 19,164
---------------------------------------- --------- ---------
Income before income taxes 26,655 1,239 (1,610) (15,528) 13,976
Provision for income taxes 7,730 -- -- (3,978)(e) 3,753
---------------------------------------- --------- ---------
Net income $ 18,925 1,239 (1,610) (11,511) $ 10,224
======================================== ========= =========
BASIC NET INCOME PER COMMON SHARE $ 0.16 $ 0.09
========= =========
DILUTED NET INCOME PER COMMON SHARE $ 0.16 $ 0.09
========= =========
SHARES USED IN COMPUTING BASIC
NET INCOME PER COMMON SHARE 117,860 117,860
========= =========
SHARES USED IN COMPUTING DILUTED
NET INCOME PER COMMON SHARE 133,713 133,713
========= =========
</TABLE>
(a) We have eliminated the processing charges that we have paid to ASI for
services performed for us at the K4 factory under our supply agreements.
Because we currently sell substantially all of K4's services, the net
revenues from the sale of K4's services to our customers are already
reflected in our historical net revenues.
(b) Represents the amortization of goodwill related to the Acquisition,
assuming a ten-year life.
(c) Represents change in depreciation expense based on adjusted book values of
acquired property, plant and equipment.
(d) Represents the elimination of interest expense and foreign currency losses
related to the debt of K4, which we will not assume as part of the
Acquisition.
(e) Represents: (1) interest expense on $625,000 of Notes at an assumed
weighted average interest rate of 9.65% and (2) $656 of amortization of
debt issuance costs, which are amortized over the life of the respective
debt.
(f) Represents an income tax benefit due to the pro forma adjustment for
interest expense.
<PAGE> 8
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AMKOR TECHNOLOGY, INC.
By: /s/ Kenneth T. Joyce
---------------------------------
Kenneth T. Joyce
Chief Financial Officer
Dated: July 30, 1999
