sgh-8k_20200707.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): July 7, 2020

 

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

(Zip Code)

(Address of Principal Executive Offices)

 

 

 

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))

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Ordinary shares, $0.03 par value per share

SGH

The NASDAQ Stock Market LLC

(NASDAQ Global Select Market)

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 July 7, 2020, 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 2020. 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.

 

Exhibit Number

 

Description of Exhibit

 

 

 

99.1

 

Press release issued on July 7, 2020

 

 

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: July 7, 2020

 

 

2

sgh-ex991_6.htm

Exhibit 99.1

Press Release

FOR IMMEDIATE RELEASE

 

SMART Global Holdings Reports Third Quarter Fiscal 2020 Financial Results

 

NEWARK, CA – July 7, 2020 – SMART Global Holdings, Inc. (“SMART” or the “Company”) (NASDAQ: SGH), today reported financial results for the third quarter of fiscal 2020 ended May 29, 2020.

 

Third Quarter Fiscal 2020 Highlights:

 

Net sales of $281.3 million, 19.4% higher than the year ago quarter.

 

GAAP net income of $0.8 million, or $0.03 per share, 57.6% and 59.5% lower than the year ago quarter, respectively.

 

Non-GAAP net income of $17.1 million, or $0.70 per share, 115.8% and 106.1% higher than the year ago quarter, respectively.

 

Adjusted EBITDA of $25.4 million, 32.5% higher than the year ago quarter.

 

“Thanks to the outstanding execution from our team in these challenging times we were able to achieve growth in revenue and gross profit over the previous quarter, and over the same period last year. This, combined with the operating leverage in our financial model, drove a strong increase in non-GAAP earnings per share and another quarter of operating cash flow generation,” commented Ajay Shah, Chairman and CEO.    

 

Quarterly Financial Results

GAAP (1)

 

 

Non-GAAP (2)

 

(In millions, except per share amounts)

Q3 FY20

 

Q2 FY20

 

Q3 FY19

 

 

Q3 FY20

 

Q2 FY20

 

Q3 FY19

 

Net sales

$

281.3

 

$

272.0

 

$

235.7

 

 

$

281.3

 

$

272.0

 

$

235.7

 

Gross profit

$

54.2

 

$

51.5

 

$

43.0

 

 

$

55.9

 

$

52.9

 

$

43.7

 

Operating income

$

10.1

 

$

8.2

 

$

7.4

 

 

$

20.3

 

$

17.3

 

$

13.2

 

Net income

$

0.8

 

$

(9.7

)

$

1.9

 

 

$

17.1

 

$

12.8

 

$

7.9

 

Diluted earnings per share (EPS)

$

0.03

 

$

(0.41

)

$

0.08

 

 

$

0.70

 

$

0.52

 

$

0.34

 

 

(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.

 

Business Outlook

The following statements are based upon management's current expectations for the fourth quarter of fiscal 2020 ending August 28, 2020. These statements are forward-looking and actual results may differ materially. SMART undertakes no obligation to update these statements.

 

Net Sales

$290 to $310 million

Gross Margin - GAAP / Non-GAAP

20% to 22%

Diluted EPS - GAAP

$0.34 ± $0.08

 

 

Share-based compensation per share

$0.21

Intangible amortization per share

$0.15

Convertible debt discount OID and fees per share

$0.08

 

 

Diluted EPS - Non-GAAP

$0.78 ± $0.08

 

 

Expected diluted share count

24.5 million

         

 


Conference Call Details

SMART will host a conference call today for analysts and investors at 1:30 p.m. Pacific time, 4:30 p.m. Eastern time. Dial-in US toll free +1-866-487-6452 using access code 5089819.  We will post an accompanying slide presentation to our website prior to the beginning of the call.

 

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: 5089819.

 

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 industries 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; disruptions in our operations or in global markets as a result of the outbreak of COVID-19; changes in trade regulations or adverse developments in international trade relations and agreements; 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 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, Adjusted EBITDA, non-GAAP net income, and non-GAAP net income per diluted share. We define Adjusted EBITDA as GAAP net income (loss) plus net interest expense, income tax expense, depreciation and amortization expense, share-based compensation expense, loss on extinguishment of debt/revolver, capped call mark to market (MTM) adjustment, integration expenses, COVID-19 expenses, acquisition-related expenses 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, loss on extinguishment of debt/revolver, capped call MTM adjustment, convertible debt original issue discount (OID), integration expenses, COVID-19 expenses, acquisition-related expenses and other infrequent or unusual expenses, 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 lines of business are leading designers and manufacturers of electronic products focused on memory and computing technology areas. The Company specializes in application specific product development and support for customers in enterprise, government and OEM sales channels. Customers rely on SMART as a strategic supplier with top tier customer service, product quality, and technical support with engineering, sales, manufacturing, supply chain and logistics capabilities worldwide. The Company targets customers in markets such as communications, storage, networking, mobile, industrial automation, industrial internet of things, government, military, edge computing and high performance computing.  SMART operates in three primary product areas: Specialty Memory products, Brazil products and Specialty Compute and Storage Solutions.

 

See www.smartgh.com, www.smartm.com, www.smartembedded.com, www.smartsscs.com and www.penguincomputing.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 29, 2020

 

 

February 28, 2020

 

 

May 31, 2019

 

 

May 29, 2020

 

 

May 31, 2019

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Specialty Memory Products

 

$

127,700

 

 

$

111,455

 

 

$

98,755

 

 

$

342,685

 

 

$

354,312

 

Brazil Products

 

 

92,701

 

 

 

97,700

 

 

 

100,982

 

 

 

284,400

 

 

 

447,373

 

Specialty Compute and Storage Solutions

 

 

60,886

 

 

 

62,887

 

 

 

35,920

 

 

 

198,262

 

 

 

131,914

 

Total net sales

 

 

281,287

 

 

 

272,042

 

 

 

235,657

 

 

 

825,347

 

 

 

933,599

 

Cost of sales (1)(2)

 

 

227,054

 

 

 

220,536

 

 

 

192,622

 

 

 

665,288

 

 

 

748,364

 

Gross profit

 

 

54,233

 

 

 

51,506

 

 

 

43,035

 

 

 

160,059

 

 

 

185,235

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development (1)

 

 

14,436

 

 

 

14,702

 

 

 

11,330

 

 

 

44,023

 

 

 

34,384

 

Selling, general and administrative (1) (2)

 

 

29,733

 

 

 

28,648

 

 

 

24,306

 

 

 

91,935

 

 

 

73,202

 

Total operating expenses

 

 

44,169

 

 

 

43,350

 

 

 

35,636

 

 

 

135,958

 

 

 

107,586

 

Income from operations

 

 

10,064

 

 

 

8,156

 

 

 

7,399

 

 

 

24,101

 

 

 

77,649

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(3,094

)

 

 

(4,150

)

 

 

(5,001

)

 

 

(11,736

)

 

 

(16,149

)

Other income (expense):

 

 

(3,445

)

 

 

(12,386

)

 

 

97

 

 

 

(16,671

)

 

 

(2,980

)

Total other expense

 

 

(6,539

)

 

 

(16,536

)

 

 

(4,904

)

 

 

(28,407

)

 

 

(19,129

)

Income (loss) before income taxes

 

 

3,525

 

 

 

(8,380

)

 

 

2,495

 

 

 

(4,306

)

 

 

58,520

 

Provision for income taxes

 

 

2,700

 

 

 

1,340

 

 

 

550

 

 

 

4,365

 

 

 

12,813

 

Net income (loss)

 

$

825

 

 

$

(9,720

)

 

$

1,945

 

 

$

(8,671

)

 

$

45,707

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.03

 

 

$

(0.41

)

 

$

0.08

 

 

$

(0.36

)

 

$

2.00

 

Diluted

 

$

0.03

 

 

$

(0.41

)

 

$

0.08

 

 

$

(0.36

)

 

$

1.96

 

Shares used in computing per-share calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

24,066

 

 

 

23,906

 

 

 

23,005

 

 

 

23,895

 

 

 

22,824

 

Diluted

 

 

24,431

 

 

 

23,906

 

 

 

23,330

 

 

 

23,895

 

 

 

23,374

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

$

699

 

 

$

731

 

 

$

651

 

 

$

2,161

 

 

$

1,803

 

Research and development

 

 

780

 

 

 

783

 

 

 

673

 

 

 

2,306

 

 

 

1,967

 

Selling, general and administrative

 

 

3,428

 

 

 

3,133

 

 

 

3,109

 

 

 

11,043

 

 

 

8,866

 

Total stock-based compensation expense

 

$

4,907

 

 

$

4,647

 

 

$

4,433

 

 

$

15,510

 

 

$

12,636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Includes amortization of intangible assets expense as

   follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

$

647

 

 

$

647

 

 

$

16

 

 

$

1,941

 

 

$

130

 

Selling, general and administrative

 

 

2,767

 

 

 

2,766

 

 

 

960

 

 

 

8,299

 

 

 

2,882

 

Total amortization expense

 

$

3,414

 

 

$

3,413

 

 

$

976

 

 

$

10,240

 

 

$

3,012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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 29, 2020

 

 

February 28, 2020

 

 

May 31, 2019

 

 

May 29, 2020

 

 

May 31, 2019

 

Reconciliation of gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

54,233

 

 

$

51,506

 

 

$

43,035

 

 

$

160,059

 

 

$

185,235

 

GAAP gross margin

 

 

19.3

%

 

 

18.9

%

 

 

18.3

%

 

 

19.4

%

 

 

19.8

%

Add: Share-based compensation included in cost of sales

 

 

699

 

 

 

731

 

 

 

651

 

 

 

2,161

 

 

 

1,803

 

Add: Amortization of intangible assets included in cost of sales

 

 

647

 

 

 

647

 

 

 

16

 

 

 

1,941

 

 

 

130

 

Add: COVID-19 expenses

 

 

282

 

 

 

 

 

 

 

 

 

282

 

 

 

 

Non-GAAP gross profit

 

$

55,861

 

 

$

52,884

 

 

$

43,702

 

 

$

164,443

 

 

$

187,168

 

Non-GAAP gross margin

 

 

19.9

%

 

 

19.4

%

 

 

18.5

%

 

 

19.9

%

 

 

20.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating expenses

 

$

44,169

 

 

$

43,350

 

 

$

35,636

 

 

$

135,958

 

 

$

107,586

 

Less: Share-based compensation expense included in opex

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

780

 

 

 

783

 

 

 

673

 

 

 

2,306

 

 

 

1,967

 

Selling, general and administrative

 

 

3,428

 

 

 

3,133

 

 

 

3,109

 

 

 

11,043

 

 

 

8,866

 

Total

 

 

4,208

 

 

 

3,916

 

 

 

3,782

 

 

 

13,349

 

 

 

10,833

 

Less: Amortization of intangible assets included in opex

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

2,767

 

 

 

2,766

 

 

 

960

 

 

 

8,299

 

 

 

2,882

 

Total

 

 

2,767

 

 

 

2,766

 

 

 

960

 

 

 

8,299

 

 

 

2,882

 

Less: Legal fees - term loan (payment holiday)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

126

 

Less: Acquisition-related costs

 

 

 

 

 

 

 

 

431

 

 

 

946

 

 

 

1,854

 

Less: Integration expenses

 

 

1,432

 

 

 

1,040

 

 

 

 

 

 

4,524

 

 

 

 

Less: COVID-19 expenses

 

 

228

 

 

 

 

 

 

 

 

 

228

 

 

 

 

Non-GAAP operating expenses

 

$

35,534

 

 

$

35,628

 

 

$

30,463

 

 

$

108,612

 

 

$

91,891

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of income from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income from operations

 

$

10,064

 

 

$

8,156

 

 

$

7,399

 

 

$

24,101

 

 

$

77,649

 

GAAP operating margin

 

 

3.6

%

 

 

3.0

%

 

 

3.1

%

 

 

2.9

%

 

 

8.3

%

Add: Share-based compensation expense

 

 

4,907

 

 

 

4,647

 

 

 

4,433

 

 

 

15,510

 

 

 

12,636

 

Add: Amortization of intangible assets

 

 

3,414

 

 

 

3,413

 

 

 

976

 

 

 

10,240

 

 

 

3,012

 

Add: Legal fees - term loan (payment holiday)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

126

 

Add: Acquisition-related costs

 

 

 

 

 

 

 

 

431

 

 

 

946

 

 

 

1,854

 

Add: Integration expenses

 

 

1,432

 

 

 

1,040

 

 

 

 

 

 

4,524

 

 

 

 

Add: COVID-19 expenses

 

 

510

 

 

 

 

 

 

 

 

 

510

 

 

 

 

Non-GAAP income from operations

 

$

20,327

 

 

$

17,256

 

 

$

13,239

 

 

$

55,831

 

 

$

95,277

 

Non-GAAP operating margin

 

 

7.2

%

 

 

6.3

%

 

 

5.6

%

 

 

6.8

%

 

 

10.2

%

 


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 29, 2020

 

 

February 28, 2020

 

 

May 31, 2019

 

 

May 29, 2020

 

 

May 31, 2019

 

Reconciliation of income (loss) before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income (loss) before income taxes

 

$

3,525

 

 

$

(8,380

)

 

$

2,495

 

 

$

(4,306

)

 

$

58,520

 

Add: Share-based compensation expense

 

 

4,907

 

 

 

4,647

 

 

 

4,433

 

 

 

15,510

 

 

 

12,636

 

Add: Amortization of intangible assets

 

 

3,414

 

 

 

3,413

 

 

 

976

 

 

 

10,240

 

 

 

3,012

 

Add: Legal fees - term loan (payment holiday)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

126

 

Add: Acquisition-related costs

 

 

 

 

 

 

 

 

431

 

 

 

946

 

 

 

1,854

 

Add: Integration expenses

 

 

1,432

 

 

 

1,040

 

 

 

 

 

 

4,524

 

 

 

 

Add: COVID-19 expenses

 

 

510

 

 

 

 

 

 

 

 

 

510

 

 

 

 

Add: Extinguishment of term loan/revolver

 

 

192

 

 

 

6,630

 

 

 

 

 

 

6,822

 

 

 

 

Add: Capped call MTM adjustment

 

 

2,924

 

 

 

4,795

 

 

 

 

 

 

7,719

 

 

 

 

Add: Convertible debt discount OID and fees

 

 

1,960

 

 

 

399

 

 

 

 

 

 

2,359

 

 

 

 

Add:  Foreign currency (gains)/losses

 

 

484

 

 

 

1,191

 

 

 

144

 

 

 

2,586

 

 

 

3,481

 

Non-GAAP income before income taxes

 

$

19,348

 

 

$

13,735

 

 

$

8,479

 

 

$

46,910

 

 

$

79,629

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of provision for income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP provision for income taxes

 

$

2,700

 

 

$

1,340

 

 

$

550

 

 

$

4,365

 

 

$

12,813

 

GAAP effective tax rate

 

 

76.6

%

 

 

-16.0

%

 

 

22.0

%

 

 

-101.4

%

 

 

21.9

%

Less: Goodwill tax credit

 

 

484

 

 

 

484

 

 

 

 

 

 

968

 

 

 

 

Tax effect of adjustments to GAAP results

 

 

(48

)

 

 

(119

)

 

 

(14

)

 

 

(258

)

 

 

(347

)

Non-GAAP provision for income taxes

 

$

2,264

 

 

$

975

 

 

$

564

 

 

$

3,655

 

 

$

13,160

 

Non-GAAP effective tax rate

 

 

11.7

%

 

 

7.1

%

 

 

6.7

%

 

 

7.8

%

 

 

16.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

 

$

825

 

 

$

(9,720

)

 

$

1,945

 

 

$

(8,671

)

 

$

45,707

 

Adjustments to GAAP net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

4,907

 

 

 

4,647

 

 

 

4,433

 

 

 

15,510

 

 

 

12,636

 

Amortization of intangible assets

 

 

3,414

 

 

 

3,413

 

 

 

976

 

 

 

10,240

 

 

 

3,012

 

Legal fees - term loan (payment holiday)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

126

 

Acquisition-related costs

 

 

 

 

 

 

 

 

431

 

 

 

946

 

 

 

1,854

 

Integration expenses

 

 

1,432

 

 

 

1,040

 

 

 

 

 

 

4,524

 

 

 

 

COVID-19 expenses

 

 

510

 

 

 

 

 

 

 

 

 

510

 

 

 

 

Extinguishment of term loan/revolver

 

 

192

 

 

 

6,630