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)
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.
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 PRO FORMA PRO FORMA ADJUSTMENTS ADJUSTMENTS AMKOR K4 FOR K4 FOR THE PRO FORMA HISTORICAL HISTORICAL ACQUISITION OFFERING AS ADJUSTED ---------- ---------- ----------- ----------- ----------- (IN THOUSANDS) 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 ========== ======== ========= ======== ========== - --------------------------- (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.
4 UNAUDITED PRO FORMA CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 1998 PRO FORMA PRO FORMA ADJUSTMENTS ADJUSTMENTS AMKOR FOR K4 FOR THE PRO FORMA HISTORICAL K4 HISTORICAL ACQUISITION OFFERING AS ADJUSTED ---------- ------------- ----------- ----------- ----------- (IN THOUSANDS) 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 ========== ======== ======== ======== ========== AMKOR PRO FORMA HISTORICAL AS ADJUSTED ---------- ----------- 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 ========== ==========
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.
6 UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 1999 (IN THOUSANDS) ------------------------------------------------------------------------------------ PRO FORMA PRO FORMA ADJUSTMENTS ADJUSTMENTS AMKOR K4 FOR FOR THE PRO FORMA HISTORICAL HISTORICAL K4 ACQUISITION OFFERING AS ADJUSTED - ----------------------------------------------------------------------------------------------------------------------------------- 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 ================================================================================================================================== (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.
7 UNAUDITED PRO FORMA CONSOLIDATED INCOME STATEMENT FOR THE THREE MONTHS ENDED MARCH 31, 1999 (DOLLARS IN THOUSANDS) ---------------------------------------------------------------------------------- PRO FORMA PRO FORMA ADJUSTMENTS ADJUSTMENTS AMKOR K4 FOR FOR PRO FORMA HISTORICAL HISTORICAL K4 ACQUISITION THE OFFERING AS ADJUSTED - --------------------------------------------------------------------------------------------------------------------------------- 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 ========= ========= (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.
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