UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 29, 2013

MagnaChip Semiconductor Corporation
(Exact name of Registrant as specified in its charter)

 
 	 	 	 	 	
Delaware	 	001-34791	 	83-0406195	
(State or Other Jurisdiction
of Incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	

c/o MagnaChip Semiconductor S.A., 74, rue de Merl, L-2146
Luxembourg, Grand Duchy of Luxembourg	 	Not Applicable	
(Address of Principal Executive Offices)	 	(Zip Code)	
Registrant’s telephone number, including area code: (352) 45-62-62

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

Item 2.02.	Results of Operations and Financial Condition.	
Attached hereto as Exhibit 99.1 and incorporated by reference herein is financial information for MagnaChip Semiconductor Corporation (the “Company”) and its consolidated subsidiaries for the third quarter ended September 30, 2013, as presented in a press release dated October 29, 2013.
The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.
 
Item 9.01.	Financial Statements and Exhibits.	
 
(d)	Exhibits.	
The following exhibits are furnished as part of this report:

Exhibit
No.	  	Description	
 	 	
99.1	  	Press release for MagnaChip Semiconductor Corporation dated October 29, 2013, announcing the results for the third quarter ended September 30, 2013.	

SIGNATURE
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.

 	 	MAGNACHIP SEMICONDUCTOR CORPORATION	
 	 	 	
Dated: October 29, 2013	 	By:	 	/s/ Margaret Sakai	
 	 	 	 	Margaret Sakai	
 	 	 	 	Executive Vice President and Chief Financial Officer	

Exhibit Index

Exhibit
No.	  	Description	
 	 	
99.1	  	Press release for MagnaChip Semiconductor Corporation dated October 29, 2013, announcing the results for the third quarter ended September 30, 2013.	

Exhibit 99.1

 	  	 	  	 	Press Release	  	

MagnaChip Reports Third Quarter 2013 Financial Results
 
 	•	 	Power Solutions Revenue Increased 14% Sequentially, 21% Year-Over-Year	
 
 	•	 	Display Solutions Revenue Increased 6% Sequentially, 5% Year-Over-Year	
 
 	•	 	Achieved GAAP EPS of $1.24 and Adjusted EPS of $0.76 Per Diluted Share	
SEOUL, South Korea and CUPERTINO, Calif., October 29, 2013 — MagnaChip Semiconductor Corporation (“MagnaChip”) (NYSE: MX), a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products, today announced financial results for the third quarter ended September 30, 2013.
Revenue for the third quarter of 2013 was $217.8 million, a 1.2% increase compared to $215.3 million for the second quarter of 2013 and a 1.8% decrease compared to $221.9 million for the third quarter of 2012.
Gross margin was $71.9 million or 33.0%, as a percent of revenue, for the third quarter of 2013. This compares to gross margin of $71.0 million or 33.0% for the second quarter of 2013 and $76.4 million or 34.5% for the third quarter of 2012.
Net income, on a GAAP basis, for the third quarter of 2013 totaled $46.7 million or $1.24 per diluted share. This compares to a net income of $4.4 million or $0.12 per diluted share for the second quarter of 2013 and a net income of $48.4 million or $1.30 per diluted share for the third quarter of 2012. Net income was impacted primarily by a foreign currency gain of $43.3 million during the quarter which was primarily related to the non-cash foreign currency translation of intercompany balances that were denominated in U.S. dollars.
“We are pleased to have delivered results that met our financial guidance for the eleventh consecutive quarter. We met our revenue and gross margin guidance through a combination of product and customer diversification and the successful launch of a new product line for our Power Solutions Division,” said Sang Park, MagnaChip Chairman and CEO. “Our smartphone related revenue grew quarter-to-quarter due to the expansion of AMOLED display drivers in high-end smartphones and from an increase of sales to mid- to low-end smartphone customers.”
Adjusted net income, a non-GAAP measurement, for the third quarter of 2013 totaled $28.6 million or $0.76 per diluted share compared to $26.2 million or $0.71 per diluted share for the second quarter of 2013 and $30.4 million or $0.81 per diluted share for the third quarter of 2012.
Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a more meaningful understanding of the factors and trends affecting MagnaChip’s business and operations. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net income or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of GAAP results to non-GAAP results is included following the financial statements.

Combined cash balances (cash and cash equivalents plus restricted cash) totaled $158.3 million at the end of the third quarter of 2013, a decrease of $34.4 million from the end of the prior quarter. Cash provided from operations totaled approximately $6.0 million for the third quarter of 2013.
Revenue by Segment

In thousands of US dollars	  	Three Months Ended	 	
 	  	September 30, 2013	 	  	June 30, 2013	 	  	September 30, 2012	 	
Semiconductor Manufacturing Services (Foundry)	  	$	103,076	  	  	$	109,751	  	  	$	117,978	  	
Display Solutions	  	 	73,162	  	  	 	68,867	  	  	 	69,415	  	
Power Solutions	  	 	40,959	  	  	 	35,959	  	  	 	33,849	  	
Other	  	 	627	  	  	 	712	  	  	 	630	  	
Total Revenue	  	$	217,824	  	  	$	215,289	  	  	$	221,872	  	
Third Quarter and Recent Company Highlights
 
 	•	 	Repurchased $25 Million or 1,213,517 Shares under MagnaChip’s 2013 Stock Repurchase Program.	
 
 	•	 	Eleventh Consecutive Quarter of Meeting or Exceeding Financial Guidance.	
 
 	•	 	Completed Secondary Offering of 1.7 Million Shares of Common Stock.	
Business Outlook
For the fourth quarter of 2013, MagnaChip expects:
 
 	•	 	Revenue will be in the range of $193 million to $203 million.	
 
 	•	 	Gross margin will be 29.0% to 31.0% as a percent of revenue.	
Conference Call
MagnaChip will hold a conference call at 5 p.m. EDT today to discuss the third quarter 2013 financial results. The conference call will be webcast live and is also available by dialing 1-866-776-2061 in the U.S. or 1-706-679-0298 for all other locations. The conference ID number is 78794356 and participants are encouraged to initiate their calls at least 10 minutes in advance of the 5 p.m. EDT start time to ensure a timely connection. The webcast and earnings release will be accessible at www.magnachip.com.
A replay of the conference call will be available the same day and will run for 72 hours. The replay access numbers are 1-855-859-2056 or 1-404-537-3406. The access code is 78794356.
About MagnaChip Semiconductor Corporation
Headquartered in South Korea, MagnaChip is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high-volume consumer applications. MagnaChip believes it has one of the broadest and deepest ranges of analog and mixed-signal semiconductor platforms in the industry, supported by its 30-year operating history, a large portfolio of registered and pending patents, and extensive engineering and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through, MagnaChip’s website is not a part of, and is not incorporated into, this release.

Safe Harbor for Forward-Looking Statements
Information in this release regarding MagnaChip’s forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include statements about our ability to capitalize on improving market dynamics and future operating and financial performance including fourth quarter 2013 revenue and gross margin. All forward-looking statements included in this release are based upon information available to MagnaChip Semiconductor as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include general economic conditions, the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new products and technologies, ability to ramp new products into volume production, industry wide shifts in supply and demand for semiconductor products, industry and/or company overcapacity, effective and cost efficient utilization of manufacturing capacity, financial stability in foreign markets and the impact of foreign exchange rates, unanticipated costs and expenses or the inability to identify expenses which can be eliminated, compliance with U.S. and international trade and export laws and regulations by us and our distributors, and other risks detailed from time to time in MagnaChip’s filings with the SEC, including our Form 10-K filed on February 22, 2013 and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. MagnaChip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

CONTACTS:	  	 	
 	 	
In the United States:
Robert Pursel
Director of Investor Relations
Tel. +1-408-625-1262
robert.pursel@magnachip.com	  	In Korea:
Chankeun Park
Senior Manager, Public Relations
Tel. +82-2-6903-3195
chankeun.park@magnachip.com	
# # #

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of US dollars, except share data)
(Unaudited)

 	  	Three Months Ended	 	
 	  	September 30,
2013	 	 	June 30,
2013	 	 	September 30,
2012	 	
Net sales	  	$	217,824	  	 	$	215,289	  	 	$	221,872	  	
Cost of sales	  	 	145,936	  	 	 	144,241	  	 	 	145,432	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	  	 	71,888	  	 	 	71,048	  	 	 	76,440	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Gross profit %	  	 	33.0	% 	 	 	33.0	% 	 	 	34.5	% 	
 	 	 	 	
Selling, general and administrative expenses	  	 	20,071	  	 	 	19,709	  	 	 	21,388	  	
Research and development expenses	  	 	21,192	  	 	 	21,131	  	 	 	19,470	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	30,625	  	 	 	30,208	  	 	 	35,582	  	
 	 	 	 	
Other income (expenses)	  	 	 	 	 	 	 	 	 	 	 	 	
Interest expense, net	  	 	(4,548	) 	 	 	(5,879	) 	 	 	(5,746	) 	
Foreign currency gain (loss), net	  	 	43,350	  	 	 	(20,978	) 	 	 	21,782	  	
Loss on early extinguishment of senior notes	  	 	(32,812	) 	 	 	—  	  	 	 	—  	  	
Other	  	 	763	  	 	 	(230	) 	 	 	695	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	6,753	  	 	 	(27,087	) 	 	 	16,731	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Income before income taxes	  	 	37,378	  	 	 	3,121	  	 	 	52,313	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Income tax expense (benefit)	  	 	(9,293	) 	 	 	(1,315	) 	 	 	3,901	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	46,671	  	 	$	4,436	  	 	$	48,412	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Earnings per common share:	  	 	 	 	 	 	 	 	 	 	 	 	
-Basic	  	$	1.32	  	 	$	0.13	  	 	$	1.34	  	
-Diluted	  	$	1.24	  	 	$	0.12	  	 	$	1.30	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Weighted average number of shares—Basic	  	 	35,443,820	  	 	 	35,474,001	  	 	 	36,199,655	  	
Weighted average number of shares—Diluted	  	 	37,493,550	  	 	 	37,125,005	  	 	 	37,324,787	  	

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA AND ADJUSTED NET INCOME
(In thousands of US dollars, except share data)
(Unaudited)

 	  	Three Months Ended	 	
 	  	September 30,
2013	 	 	June 30,
2013	 	 	September 30,
2012	 	
Net income	  	$	46,671	  	 	$	4,436	  	 	$	48,412	  	
Adjustments:	  	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	8,748	  	 	 	8,359	  	 	 	8,443	  	
Interest expense, net	  	 	4,548	  	 	 	5,879	  	 	 	5,746	  	
Income tax expense (benefit)	  	 	(9,293	) 	 	 	(1,315	) 	 	 	3,901	  	
Stock-based compensation expense	  	 	485	  	 	 	493	  	 	 	535	  	
Foreign currency loss (gain), net	  	 	(43,350	) 	 	 	20,978	  	 	 	(21,782	) 	
Derivative valuation loss (gain), net	  	 	(763	) 	 	 	230	  	 	 	(695	) 	
Secondary offering and others	  	 	460	  	 	 	—  	  	 	 	2,119	  	
Loss on early extinguishment of senior notes	  	 	32,812	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA	  	$	40,318	  	 	$	39,060	  	 	$	46,679	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA per common share:	  	 	 	 	 	 	 	 	 	 	 	 	
- Diluted	  	$	1.08	  	 	$	1.05	  	 	$	1.25	  	
Weighted average number of shares - Diluted	  	 	37,493,550	  	 	 	37,125,005	  	 	 	37,324,787	  	
 	 	 	 	
Net income	  	$	46,671	  	 	$	4,436	  	 	$	48,412	  	
Adjustments:	  	 	 	 	 	 	 	 	 	 	 	 	
Stock-based compensation expense	  	 	485	  	 	 	493	  	 	 	535	  	
Amortization of intangibles	  	 	1,508	  	 	 	1,492	  	 	 	1,829	  	
Foreign currency loss (gain), net	  	 	(43,350	) 	 	 	20,978	  	 	 	(21,782	) 	
Derivative valuation loss (gain), net	  	 	(763	) 	 	 	230	  	 	 	(695	) 	
Secondary offering and others	  	 	460	  	 	 	—  	  	 	 	2,119	  	
GAAP and cash tax expense difference	  	 	(9,173	) 	 	 	(1,452	) 	 	 	—  	  	
Loss on early extinguishment of senior notes	  	 	32,812	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted net income	  	$	28,650	  	 	$	26,177	  	 	$	30,418	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted net income per common share:	  	 	 	 	 	 	 	 	 	 	 	 	
- Diluted	  	$	0.76	  	 	$	0.71	  	 	$	0.81	  	
Weighted average number of shares - Diluted	  	 	37,493,550	  	 	 	37,125,005	  	 	 	37,324,787	  	
We define Adjusted EBITDA as net income adjusted to exclude (i) depreciation and amortization, (ii) interest expense, net, (iii) income tax expense (benefit), (iv) stock-based compensation expense, (v) foreign currency loss (gain), net, (vi) derivative valuation loss (gain), net, (vii) secondary offering and others, and (viii) loss on early extinguishment of senior notes.
We present Adjusted Net Income as a further supplemental measure of our performance. We prepare Adjusted Net Income by adjusting net income to eliminate the impact of a number of non-cash expenses and other items that may be either one time or recurring that we do not consider to be indicative of our core ongoing operating performance. We believe that Adjusted Net Income is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Net Income as net income adjusted to exclude (i) stock-based compensation expense, (ii) amortization of intangibles, (iii) foreign currency loss (gain), net, (iv) derivative valuation loss (gain), net, (v) secondary offering and others, (vi) GAAP and cash tax expense difference, and (vii) loss on early extinguishment of senior notes.

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US dollars, except share data)
(Unaudited)

 	  	September 30,
2013	 	 	December 31,
2012	 	
Assets	  	 	 	 	 	 	 	 	
Current assets	  	 	 	 	 	 	 	 	
Cash and cash equivalents	  	$	158,268	  	 	$	182,238	  	
Restricted cash	  	 	6	  	 	 	133	  	
Accounts receivable, net	  	 	199,018	  	 	 	143,331	  	
Inventories, net	  	 	80,881	  	 	 	89,363	  	
Other receivables	  	 	2,114	  	 	 	1,429	  	
Prepaid expenses	  	 	11,777	  	 	 	7,884	  	
Current deferred income tax assets	  	 	32,686	  	 	 	22,768	  	
Other current assets	  	 	6,828	  	 	 	9,680	  	
 	  	 	 	 	 	 	 	 	
Total current assets	  	 	491,578	  	 	 	456,826	  	
 	  	 	 	 	 	 	 	 	
Property, plant and equipment, net	  	 	263,150	  	 	 	238,256	  	
Intangible assets, net	  	 	8,992	  	 	 	15,260	  	
Long-term prepaid expenses	  	 	17,791	  	 	 	18,048	  	
Deferred income tax assets	  	 	45,253	  	 	 	46,710	  	
Other non-current assets	  	 	16,731	  	 	 	14,866	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	843,495	  	 	$	789,966	  	
 	  	 	 	 	 	 	 	 	
Liabilities and Stockholders’ Equity	  	 	 	 	 	 	 	 	
Current liabilities	  	 	 	 	 	 	 	 	
Accounts payable	  	$	74,655	  	 	$	79,236	  	
Other accounts payable	  	 	17,381	  	 	 	15,600	  	
Accrued expenses	  	 	44,765	  	 	 	43,486	  	
Other current liabilities	  	 	7,420	  	 	 	9,973	  	
 	  	 	 	 	 	 	 	 	
Total current liabilities	  	 	144,221	  	 	 	148,295	  	
 	  	 	 	 	 	 	 	 	
Long-term borrowings, net	  	 	223,897	  	 	 	201,653	  	
Accrued severance benefits, net	  	 	123,619	  	 	 	112,446	  	
Other non-current liabilities	  	 	15,018	  	 	 	17,263	  	
 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	506,755	  	 	 	479,657	  	
 	  	 	 	 	 	 	 	 	
Stockholders’ equity	  	 	 	 	 	 	 	 	
Common stock, $0.01 par value, 150,000,000 shares authorized, 40,498,795 shares issued and 34,945,377 shares outstanding at September 30, 2013 and 39,599,374 shares issued and 35,635,357 shares outstanding at December 31, 2012	  	 	405	  	 	 	396	  	
Additional paid-in capital	  	 	112,950	  	 	 	101,885	  	
Retained earnings	  	 	330,953	  	 	 	287,251	  	
Treasury stock, 5,553,418 shares at September 30, 2013 and 3,964,017 shares at December 31, 2012	  	 	(70,918	) 	 	 	(39,918	) 	
Accumulated other comprehensive loss	  	 	(36,650	) 	 	 	(39,305	) 	
 	  	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	336,740	  	 	 	310,309	  	
 	  	 	 	 	 	 	 	 	
Total liabilities and stockholders’ equity	  	$	843,495	  	 	$	789,966	  	

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of US dollars)
(Unaudited)

 	  	Three Months
Ended	 	 	Nine Months
Ended	 	
 	  	September 30,
2013	 	 	September 30,
2013	 	 	September 30,
2012	 	
Cash flows from operating activities	  	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	46,671	  	 	$	43,702	  	 	$	68,015	  	
Adjustments to reconcile net income to net cash provided by operating activities	  	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	8,748	  	 	 	25,629	  	 	 	23,840	  	
Provision for severance benefits	  	 	4,975	  	 	 	15,661	  	 	 	16,779	  	
Amortization of debt issuance costs and original issue discount	  	 	176	  	 	 	744	  	 	 	753	  	
Loss (gain) on foreign currency translation, net	  	 	(53,364	) 	 	 	1,644	  	 	 	(25,304	) 	
Gain on disposal of property, plant and equipment, net	  	 	(49	) 	 	 	(75	) 	 	 	(174	) 	
Loss on disposal of intangible assets, net	  	 	1	  	 	 	2	  	 	 	26	  	
Restructuring and impairment charges	  	 	—  	 	 	 	618	  	 	 	—  	 	
Stock-based compensation	  	 	485	  	 	 	1,398	  	 	 	1,450	  	
Loss on early extinguishment of senior notes	  	 	32,812	  	 	 	32,812	  	 	 	—  	 	
Other	  	 	156	  	 	 	1,567	  	 	 	(332	) 	
Changes in operating assets and liabilities	  	 	 	 	 	 	 	 	 	 	 	 	
Accounts receivable	  	 	(29,825	) 	 	 	(59,311	) 	 	 	(18,168	) 	
Inventories	  	 	1,638	  	 	 	8,398	  	 	 	(8,526	) 	
Other receivables	  	 	(884	) 	 	 	(284	) 	 	 	(1,787	) 	
Other current assets	  	 	743	  	 	 	8,168	  	 	 	(662	) 	
Deferred tax assets	  	 	(9,043	) 	 	 	(10,038	) 	 	 	1,514	  	
Accounts payable	  	 	(3,167	) 	 	 	(2,314	) 	 	 	17,472	  	
Other accounts payable	  	 	(379	) 	 	 	(7,901	) 	 	 	(700	) 	
Accrued expenses	  	 	8,007	  	 	 	1,004	  	 	 	13,761	  	
Other current liabilities	  	 	434	  	 	 	(663	) 	 	 	9,450	  	
Payment of severance benefits	  	 	(1,392	) 	 	 	(4,331	) 	 	 	(5,569	) 	
Other	  	 	(707	) 	 	 	(1,814	) 	 	 	(2,239	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by operating activities	  	 	6,036	  	 	 	54,616	  	 	 	89,599	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from investing activities	  	 	 	 	 	 	 	 	 	 	 	 	
Decrease in restricted cash	  	 	1	  	 	 	123	  	 	 	6,774	  	
Proceeds from disposal of plant, property and equipment	  	 	66	  	 	 	93	  	 	 	937	  	
Purchase of plant, property and equipment	  	 	(5,813	) 	 	 	(45,703	) 	 	 	(56,745	) 	
Payment for intellectual property registration	  	 	(158	) 	 	 	(401	) 	 	 	(752	) 	
Payment for acquisition	  	 	—  	 	 	 	—  	 	 	 	(8,642	) 	
Decrease in short-term financial instruments	  	 	—  	 	 	 	—  	 	 	 	173	  	
Collection of guarantee deposits	  	 	—  	 	 	 	117	  	 	 	72	  	
Payment of guarantee deposits	  	 	(2	) 	 	 	(941	) 	 	 	(311	) 	
Other	  	 	1	  	 	 	12	  	 	 	(50	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net cash used in investing activities	  	 	(5,905	) 	 	 	(46,700	) 	 	 	(58,544	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from financing activities	  	 	 	 	 	 	 	 	 	 	 	 	
Proceeds from issuance of senior notes	  	 	218,836	  	 	 	218,836	  	 	 	—  	  	
Proceeds from issuance of common stock	  	 	5,095	  	 	 	9,676	  	 	 	436	 	
Repayment of long term borrowings	  	 	(229,333	) 	 	 	(229,333	) 	 	 	—  	 	
Repayment of obligations under capital lease	  	 	—  	 	 	 	—  	 	 	 	(2,968	) 	
Acquisition of treasury stock	  	 	(25,000	) 	 	 	(31,000	) 	 	 	(22,937	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net cash used in financing activities	  	 	(30,402	) 	 	 	(31,821	) 	 	 	(25,469	) 	
Effect of exchange rates on cash and cash equivalents	  	 	(4,102	) 	 	 	(65	) 	 	 	(2,039	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net increase (decrease) in cash and cash equivalents	  	 	(34,373	) 	 	 	(23,970	) 	 	 	3,547	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	  	 	 	 	 	 	 	 	 	 	 	 	
Beginning of the period	  	 	192,641	  	 	 	182,238	  	 	 	162,111	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
End of the period	  	$	158,268	  	 	$	158,268	  	 	$	165,658