sgh-8k_20180621.htm

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 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): June 21, 2018

 

SMART GLOBAL HOLDINGS, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Cayman Islands

001-38102

98-1013909

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

 

 

c/o Maples Corporate Services Limited

P.O. Box 309

Ugland House

Grand Cayman

 

KY1-1104

Cayman Islands

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (510) 623-1231

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

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 (see General Instructions A.2. below):

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 

 


 

Item 2.02 Results of Operations and Financial Condition.

On June 21, 2018, SMART Global Holdings, Inc. (the “Company”) issued a press release and will hold a conference call announcing its financial results for the third quarter of fiscal 2018 ended May 25, 2018. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The Company refers to non-GAAP financial information in both the press release and the conference call. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release.

This information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.  

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:

 

Exhibit Number

 

Description

 

 

 

99.1

 

Press release issued on June 21, 2018

 

 

1


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

SMART GLOBAL HOLDINGS, INC.

 

 

 

By:

 /s/ JACK PACHECO

 

 Name:

 Jack Pacheco

 

 Title: 

 Executive Vice President and Chief Financial Officer

 

 

(Principal Financial and Accounting Officer)

 

 

 

Date: June 21, 2018

 

 

2

sgh-ex991_6.htm

Exhibit 99.1

Press Release

FOR IMMEDIATE RELEASE

 

SMART Global Holdings Reports

Third Quarter Fiscal 2018 Financial Results

 

 

NEWARK, CA – June 21, 2018 SMART Global Holdings, Inc. (“SMART”) (NASDAQ: SGH), parent company of SMART Modular Technologies, Inc., today reported financial results for the third quarter of fiscal 2018 ended May 25, 2018.

 

Third Quarter Fiscal 2018 Highlights:

 

Net sales of $335.5 million, 62% higher than comparable quarter of prior year

GAAP operating income of $48.7 million

GAAP net income of $31.9 million

Adjusted EBITDA of $51.5 million

GAAP diluted earnings per share (EPS) of $1.37

Non-GAAP diluted EPS of $1.84 (excluding FX losses)

 

 

“I am pleased to report another strong sales quarter with net revenues 62 percent higher than the comparable period a year ago.  Both our Specialty and Brazil businesses performed very well.  Additionally, as announced on June 11, we have embarked upon the first step in our strategy to broaden our offerings with the acquisition of Penguin Computing,” commented Ajay Shah, Chairman and Chief Executive Officer of SMART Global Holdings.  “Penguin is the cornerstone of our new business unit, SMART Specialty Compute & Storage Solutions (SCSS), and greatly expands the markets and technologies where we can participate into areas requiring specialized computing platforms in artificial intelligence, machine learning, advanced modeling and high performance computing.  We expect to leverage our proven system design and integration capabilities and create a more diversified business.”

 

Jack Pacheco, Chief Operating and Financial Officer, added, “The strength in net sales in the third fiscal quarter was due to continued strength in our Specialty Memory business and our increased penetration into the Brazilian market.  That said, due to the recent depreciation of the Brazilian Real, we saw a $0.27 per share negative impact to our GAAP earnings due to foreign currency losses.  The Specialty Memory business and our Brazil memory business continue to be markets where we have a unique competitive advantage, a proven business model, and growth potential in multiple sectors.”

 

Quarterly Financial Results

GAAP (1)

 

 

Non-GAAP (2)

 

(In millions, except per share amounts)

Q3 FY18

 

Q2 FY18

 

Q3 FY17

 

 

Q3 FY18

 

Q2 FY18

 

Q3 FY17

 

Net sales

$

335.5

 

$

314.0

 

$

207.0

 

 

$

335.5

 

$

314.0

 

$

207.0

 

Gross profit

$

78.1

 

$

73.0

 

$

47.4

 

 

$

78.5

 

$

73.2

 

$

47.6

 

Operating income

$

48.7

 

$

45.1

 

$

20.4

 

 

$

53.8

 

$

48.5

 

$

24.8

 

Net income

$

31.9

 

$

36.8

 

$

8.0

 

 

$

43.0

 

$

37.7

 

$

14.6

 

Diluted earnings per share (EPS)(3)

$

1.37

 

$

1.60

 

$

0.50

 

 

$

1.84

 

$

1.64

 

$

0.92

 

 

(1)

GAAP represents U.S. Generally Accepted Accounting Principles.

(2)

Please refer to the “Non-GAAP Information” section and the "Reconciliation of Non-GAAP Financial Measures" table below for further detail on the non-GAAP financial reporting referenced above and a reconciliation of such measures to our nearest GAAP measures.

(3)

Beginning in the third quarter of fiscal 2018, we will exclude foreign currency gains/losses from our non-GAAP diluted EPS as we believe this non-GAAP financial measure is a more relevant indicator of our core operating results. This change is reflected for all the periods presented in this release.      

 


Business Outlook

The following statements are based upon management's current expectations for the fourth quarter of fiscal 2018 ending August 31, 2018 and include the results of Penguin Computing from the acquisition date of June 8, 2018. As the purchase accounting for this acquisition is still being evaluated, the GAAP forecast does not incorporate any related purchase price adjustments which may affect actual results. These statements are forward-looking and actual results may differ materially. SMART undertakes no obligation to update these statements.

 

Net Sales - GAAP / Non-GAAP

$360 to $380 million

Gross Margin - GAAP / Non-GAAP

22% to 23%

Diluted EPS - GAAP

$1.41 to $1.50

 

 

Share-based compensation per share

$0.12

Intangible amortization per share

$0.05

Acquisition costs per share

$0.04

 

 

Diluted EPS - Non-GAAP

$1.62 to $1.71

 

 

Expected diluted share count

23.4 million

 

Conference Call Details

SMART will host a conference call today for analysts and investors at 1:30pm Pacific Time, 4:30pm Eastern Time. Dial-in US toll free +1-866-487-6452 using access code 6781298.

 

A replay of the conference call will be available for one week following today’s call through the Events section of the SMART website at www.smartgh.com or by calling US toll free +1-855-859-2056; Passcode: 6781298.

Forward-Looking Statements

This release contains, and statements made during the above-referenced conference call will contain "forward-looking statements" including among other things, statements regarding future events and the future financial performance of SMART (including the business outlook for the next fiscal quarter) and statements regarding growth drivers in SMART’s and Penguin’s industry and markets. These statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including but not limited to: business and economic conditions and growth trends in the technology industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; changes in currency exchange rates; overall information technology spending; appropriations for government spending; the success of our strategic initiatives including additional investments in new products, additional capacity and acquisitions; the DRAM market and the temporary and volatile nature of pricing trends; deterioration in customer relationships; production or manufacturing difficulties; competitive factors; technological changes; difficulties with or delays in the introduction of new products;  slowing or contraction of growth in the memory market in Brazil; reduction in or termination of local content requirements in Brazil;  changes to applicable tax regimes or rates; prices for the end products of our customers; fluctuations in material costs and availability; strikes or labor disputes; deterioration in or loss of relations with any of our limited number of key vendors;  changes in the availability of supply of materials, components or memory products; the inability of Penguin Computing to maintain its status as a small business or to obtain and retain security clearances to expand its government business; and other factors and risks detailed in SMART’s filings with the Securities and Exchange Commission. Such factors and risks as outlined above and in such filings may not constitute all factors and risks that could cause actual results of SMART to be materially different from the historical results and/or from any future results or outcomes expressed or implied by such forward-looking statements. SMART and its subsidiaries operate in a continually changing business environment and new factors emerge from time to time. SMART cannot predict such factors, nor can it assess the impact, if any, from such factors on SMART or its subsidiaries’ results. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements should not be relied upon as a prediction of actual results. These forward-looking statements are made as of today, and SMART does not intend, and has no obligation, to update or revise any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release, except as required by law.

 

Non-GAAP Information

Certain non-GAAP financial measures are contained in this press release or will be discussed on our conference call, including non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share and Adjusted EBITDA. We define Adjusted EBITDA as GAAP net income plus net interest expense, income tax expense, depreciation and amortization expense, share-based compensation expense, acquisition costs, restructuring charges,  amortization of non-cash debt discount related to warrants, non-cash charges in connection with refinancing, and other infrequent or unusual items. Adjusted EBITDA is not a measure of financial performance calculated in accordance with U.S. GAAP and should be viewed as a supplement


to, not a substitute for, our results of operations presented on the basis of U.S. GAAP. Adjusted EBITDA also does not purport to represent cash flow provided by, or used in, operating activities in accordance with U.S. GAAP and should not be used as a measure of liquidity.

 

The non-GAAP financial results presented herein exclude share-based compensation expense, intangible amortization expense, acquisition costs, amortization of non-cash debt discount related to warrants, non-cash charges in connection with refinancing and, with respect to non-GAAP diluted EPS, foreign currency gains (losses). These non-GAAP financial measures are provided to enhance the user's overall understanding of our financial performance. By excluding these charges, as well as any related tax effects, our non-GAAP results provide information to management and investors that is useful in assessing SMART's core operating performance and in evaluating and comparing our results of operations on a consistent basis from period to period. These non-GAAP financial measures are also used by management to evaluate financial results, to plan and forecast future periods, and to assess performance of certain executives for compensation purposes. The presentation of this additional information is not meant to be a substitute for the corresponding financial measures prepared in accordance with U.S. GAAP. In addition, these measures may not be used similarly by other companies and therefore may not be comparable between companies.

 

Investors are encouraged to review the “Reconciliation of Non-GAAP Financial Measures to GAAP Results” and “Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA” tables below for more detail on non-GAAP calculations.

 

About SMART Global Holdings

The SMART family of companies are global leaders in specialty memory, storage and hybrid solutions serving the electronics industry with standard and custom products for over 25 years. SMART delivers components, modules and solutions to a broad customer base, including OEMs in computing, networking, communications, storage, mobile and industrial markets. With the addition of Penguin Computing and the creation of a new business unit, SMART Specialty Compute & Storage Solutions (SCSS), SMART has expanded its serviceable markets into areas requiring specialized computing platforms in artificial intelligence and machine learning, advanced modeling and high performance computing. Customers rely on SMART as a strategic supplier with custom designs, product quality, technical support, a global footprint, and the ability to provide locally manufactured products in multiple geographies. See www.smartgh.com, www.smartm.com, www.smarth.com or www.smartsscs.com for more information.


SMART Global Holdings, Inc.

and Subsidiaries

Consolidated Statements of Income

(In thousands, except per share data)

 

  

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

May 25,

2018

 

 

February 23, 2018

 

 

May 26,

2017

 

 

May 25,

2018

 

 

May 26,

2017

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brazil DRAM

 

$

71,157

 

 

$

67,322

 

 

$

38,028

 

 

$

190,438

 

 

$

86,051

 

Brazil Mobile Memory

 

 

161,585

 

 

 

141,311

 

 

 

71,216

 

 

 

408,787

 

 

 

177,359

 

Specialty Memory

 

 

102,735

 

 

 

105,332

 

 

 

97,730

 

 

 

315,626

 

 

 

274,862

 

Total net sales

 

 

335,477

 

 

 

313,965

 

 

 

206,974

 

 

 

914,851

 

 

 

538,272

 

Cost of sales (1)

 

 

257,423

 

 

 

240,948

 

 

 

159,599

 

 

 

705,944

 

 

 

424,030

 

Gross profit

 

 

78,054

 

 

 

73,017

 

 

 

47,375

 

 

 

208,907

 

 

 

114,242

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development (1) (2)

 

 

9,763

 

 

 

9,852

 

 

 

8,797

 

 

 

28,165

 

 

 

28,442

 

Selling, general and administrative (1) (2)

 

 

19,597

 

 

 

18,087

 

 

 

17,193

 

 

 

55,502

 

 

 

49,037

 

Management advisory fees

 

 

 

 

 

 

 

 

1,000

 

 

 

 

 

 

3,000

 

Restructuring

 

 

 

 

 

 

 

 

 

 

 

 

 

 

457

 

Total operating expenses

 

 

29,360

 

 

 

27,939

 

 

 

26,990

 

 

 

83,667

 

 

 

80,936

 

Income from operations

 

 

48,694

 

 

 

45,078

 

 

 

20,385

 

 

 

125,240

 

 

 

33,306

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(4,098

)

 

 

(4,230

)

 

 

(8,294

)

 

 

(12,927

)

 

 

(23,072

)

Other income (expense), net

 

 

(7,145

)

 

 

2,548

 

 

 

(762

)

 

 

(7,312

)

 

 

(1,664

)

Total other expense

 

 

(11,243

)

 

 

(1,682

)

 

 

(9,056

)

 

 

(20,239

)

 

 

(24,736

)

Income before income taxes

 

 

37,451

 

 

 

43,396

 

 

 

11,329

 

 

 

105,001

 

 

 

8,570

 

Provision for income taxes

 

 

5,505

 

 

 

6,602

 

 

 

3,371

 

 

 

15,256

 

 

 

6,156

 

Net income

 

$

31,946

 

 

$

36,794

 

 

$

7,958

 

 

$

89,745

 

 

$

2,414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.44

 

 

$

1.68

 

 

$

0.57

 

 

$

4.09

 

 

$

0.17

 

Diluted

 

$

1.37

 

 

$

1.60

 

 

$

0.50

 

 

$

3.90

 

 

$

0.16

 

Shares used in computing per-share calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

22,206

 

 

 

21,915

 

 

 

13,986

 

 

 

21,932

 

 

 

13,909

 

Diluted

 

 

23,306

 

 

 

23,038

 

 

 

15,955

 

 

 

23,020

 

 

 

15,230

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes share-based compensation expense as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

$

414

 

 

$

227

 

 

$

176

 

 

$

859

 

 

$

444

 

Research and development

 

 

325

 

 

 

288

 

 

 

(22

)

 

 

887

 

 

$

423

 

Selling, general and administrative

 

 

2,558

 

 

 

1,182

 

 

 

1,235

 

 

 

4,853

 

 

$

2,666

 

Total stock-based compensation expense

 

$

3,297

 

 

$

1,697

 

 

$

1,389

 

 

$

6,599

 

 

$

3,533

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Includes amortization of intangible assets expense as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

245

 

 

$

245

 

 

$

1,224

 

 

$

735

 

 

$

3,672

 

Selling, general and administrative

 

 

976

 

 

 

993

 

 

 

1,774

 

 

 

2,992

 

 

 

5,296

 

Total amortization expense

 

$

1,221

 

 

$

1,238

 

 

$

2,998

 

 

$

3,727

 

 

$

8,968

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


SMART Global Holdings, Inc.

and Subsidiaries

Reconciliation of Non-GAAP Financial Measures to GAAP Results

(In thousands, except per share data)

 

  

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

May 25,

2018

 

 

February 23, 2018

 

 

May 26,

2017

 

 

May 25,

2018

 

 

May 26,

2017

 

Reconciliation of gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

78,054

 

 

$

73,017

 

 

$

47,375

 

 

$

208,907

 

 

$

114,242

 

GAAP gross margin

 

 

23.3

%

 

 

23.3

%

 

 

22.9

%

 

 

22.8

%

 

 

21.2

%

Add: Share-based compensation included in cost of sales

 

 

414

 

 

 

227

 

 

 

176

 

 

 

859

 

 

 

444

 

Non-GAAP gross profit

 

$

78,468

 

 

$

73,244

 

 

$

47,551

 

 

$

209,766

 

 

$

114,686

 

Non-GAAP gross margin

 

 

23.4

%

 

 

23.3

%

 

 

23.0

%

 

 

22.9

%

 

 

21.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating expenses

 

$

29,360

 

 

$

27,939

 

 

$

26,990

 

 

$

83,667

 

 

$

80,936

 

Less: Share-based compensation expense included in opex

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

325

 

 

 

288

 

 

 

(22

)

 

 

887

 

 

 

423

 

Selling, general and administrative

 

 

2,558

 

 

 

1,182

 

 

 

1,235

 

 

 

4,853

 

 

 

2,666

 

Total

 

 

2,883

 

 

 

1,470

 

 

 

1,213

 

 

 

5,740

 

 

 

3,089

 

Less: Amortization of intangible assets included in opex

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

245

 

 

 

245

 

 

 

1,224

 

 

 

735

 

 

 

3,672

 

Selling, general and administrative

 

 

976

 

 

 

993

 

 

 

1,774

 

 

 

2,992

 

 

 

5,296

 

Total

 

 

1,221

 

 

 

1,238

 

 

 

2,998

 

 

 

3,727

 

 

 

8,968

 

Less: S-1 related costs

 

 

 

 

 

513

 

 

 

 

 

 

813

 

 

 

 

Less: Acquisition costs

 

 

591

 

 

 

 

 

 

 

 

 

591

 

 

 

 

Non-GAAP operating expenses

 

$

24,665

 

 

$

24,718

 

 

$

22,779

 

 

$

72,796

 

 

$

68,879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of income from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income from operations

 

$

48,694

 

 

$

45,078

 

 

$

20,385

 

 

$

125,240

 

 

$

33,306

 

GAAP operating margin

 

 

14.5

%

 

 

14.4

%

 

 

9.8

%

 

 

13.7

%

 

 

6.2

%

Add: Share-based compensation expense

 

 

3,297

 

 

 

1,697

 

 

 

1,389

 

 

 

6,599

 

 

 

3,533

 

Add: Amortization of intangible assets

 

 

1,221

 

 

 

1,238

 

 

 

2,998

 

 

 

3,727

 

 

 

8,968

 

Add: S-1 related costs

 

 

 

 

 

513

 

 

 

 

 

 

813

 

 

 

 

Add: Acquisition costs

 

 

591

 

 

 

 

 

 

 

 

 

591

 

 

 

 

Non-GAAP income from operations

 

$

53,803

 

 

$

48,526

 

 

$

24,772

 

 

$

136,970

 

 

$

45,807

 

Non-GAAP operating margin

 

 

16.0

%

 

 

15.5

%

 

 

12.0

%

 

 

15.0

%

 

 

8.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of income before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income before income taxes

 

$

37,451

 

 

$

43,396

 

 

$

11,329

 

 

$

105,001

 

 

$

8,570

 

Add: Share-based compensation expense

 

 

3,297

 

 

 

1,697

 

 

 

1,389

 

 

 

6,599

 

 

 

3,533

 

Add: Amortization of intangible assets

 

 

1,221

 

 

 

1,238

 

 

 

2,998

 

 

 

3,727

 

 

 

8,968

 

Add: S-1 related costs

 

 

 

 

 

513

 

 

 

 

 

 

813

 

 

 

 

Add: Acquisition costs

 

 

591

 

 

 

 

 

 

 

 

 

591

 

 

 

 

Less: Amortization of debt discount related to warrants

 

 

 

 

 

 

 

 

1,733

 

 

 

 

 

 

3,913

 

Less: Loss on extinguishment of LT debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,385

 

Add: Foreign currency (gains) losses

 

 

6,932

 

 

 

(2,415

)

 

 

1,009

 

 

 

7,259

 

 

 

748

 

Non-GAAP income before income taxes

 

$

49,492

 

 

$

44,429

 

 

$

18,458

 

 

$

123,990

 

 

$

27,117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of provision for income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP provision for income taxes

 

$

5,505

 

 

$

6,602

 

 

$

3,371

 

 

$

15,256

 

 

$

6,156

 

GAAP effective tax rate

 

 

14.7

%

 

 

15.2

%

 

 

29.8

%

 

 

14.5

%

 

 

71.8

%

Tax effect of adjustments to GAAP results

 

 

(1,025

)

 

 

(96

)

 

 

(477

)

 

 

(1,744

)

 

 

(1,153

)

Non-GAAP provision for income taxes

 

$

6,530

 

 

$

6,698

 

 

$

3,848

 

 

$

17,000

 

 

$

7,309

 

Non-GAAP effective tax rate

 

 

13.2

%

 

 

15.1

%

 

 

20.8

%

 

 

13.7

%

 

 

27.0

%


SMART Global Holdings, Inc.

and Subsidiaries

Reconciliation of Non-GAAP Financial Measures to GAAP Results (continued)

(In thousands, except per share data)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

May 25,

2018

 

February 23, 2018

 

May 26,

2017

 

May 25,

2018

 

May 26,

2017

Reconciliation of net income  and earnings per share (diluted):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income

 

$

31,946

 

 

$

36,794

 

 

$

7,958

 

 

$

89,745

 

 

$

2,414

 

Adjustments to GAAP net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

3,297

 

 

 

1,697

 

 

 

1,389

 

 

 

6,599

 

 

 

3,533

 

Amortization of intangible assets

 

 

1,221

 

 

 

1,238

 

 

 

2,998

 

 

 

3,727

 

 

 

8,968

 

S-1 related costs

 

 

 

 

 

513

 

 

 

 

 

 

813

 

 

 

 

Acquisition costs

 

 

591

 

 

 

 

 

 

 

 

 

591

 

 

 

 

Amortization of debt discount related to warrants

 

 

 

 

 

 

 

 

1,733

 

 

 

 

 

 

3,913

 

Loss on extinguishment of LT debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,385

 

Foreign currency (gains) losses

 

 

6,932

 

 

 

(2,415

)

 

 

1,009

 

 

 

7,259

 

 

 

748

 

Tax effect of items excluded from non-GAAP results

 

 

(1,025

)

 

 

(96

)

 

 

(477

)

 

 

(1,744

)

 

 

(1,153

)

Non-GAAP net income

 

$

42,962

 

 

$

37,731

 

 

$

14,610

 

 

$

106,990

 

 

$

19,808

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing earnings per share (diluted)

 

 

23,306

 

 

 

23,038

 

 

 

15,955

 

 

 

23,020

 

 

 

15,230

 

Non-GAAP earnings per share (diluted)

 

$

1.84

 

 

$

1.64

 

 

$

0.92

 

 

$

4.65

 

 

$

1.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


SMART Global Holdings, Inc.

and Subsidiaries

Reconciliation of GAAP Net Income (loss) to Adjusted EBITDA

(In thousands, except per share data)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

May 25,