High Performance Computing Capabilities
Non-GAAP Measures
Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally
excluded or included in the most directly comparable measure calculated and presented in accordance with U.S. GAAP.
In this presentation we refer to EBITDA, EBITDA Margin and Gross Debt Leverage, which are not defined by U.S. GAAP. We define EBITDA as net income before interest expense, income tax
expense and depreciation and amortization. EBITDA Margin is calculated by dividing EBITDA by net sales for the period. Gross Debt Leverage is calculated by dividing Total Debt by EBITDA for
the period. We believe EBITDA, EBITDA Margin, and Gross Debt Leverage to be relevant and useful information to our investors because they provide additional information in assessing our
financial operating results. Our management uses EBITDA, EBITDA Margin and Gross Debt Leverage in evaluating our operating performance, our ability to service debt and our ability to fund
capital expenditures. However, EBITDA, EBITDA Margin, and Gross Debt Leverage have certain limitations in that they do 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, EBITDA Margin, and Gross Debt Leverage should be considered in addition to, and not as a substitute for, or superior to, operating income, net income, net income margin,
debt/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. Please see Slide 22 for the reconciliation of these non-GAAP measures to the most directly comparable U.S. GAAP measures.
Net Debt is not defined by U.S. GAAP. We define Net Debt as total debt as reported on the consolidated balance sheet less the sum of cash and cash equivalents, and short-term investments.
We believe Net Debt to be relevant and useful information to our investors because it provides them with additional information in assessing our capital structure, financial leverage, and our
ability to reduce debt and to fund investing and financing activities. Our management uses Net Debt to review our overall liquidity, financial flexibility, capital structure, and financial leverage.
However, Net Debt has certain limitations, including that it should not be considered as an alternative to or in isolation from total debt or any other measure calculated in accordance with U.S.
GAAP. This measure should be considered in addition to, and not as a substitute for, or superior to, total debt, prepared in accordance with U.S. GAAP. Furthermore, our definition of Net Debt
may not be comparable to similarly titled measures reported by other companies. Please see Slide 22 for the reconciliation to the most directly comparable U.S. GAAP measure.
Free cash flow 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, 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, 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. Please see Slide 23 for the reconciliation to the most directly comparable U.S. GAAP measure.
Amkor
Technology®
© 2023 Amkor Technology, Inc.
24View entire presentation