SGH Reports Fourth Quarter and Full Year Fiscal 2021 Financial Results

October 12, 2021

Record Quarterly and Annual Revenue with Strong Performance Across all Businesses

SMART Global Holdings, Inc. (“SGH” or the “Company”) (Nasdaq: SGH) today reported financial results for the fourth quarter and full year fiscal 2021.

Fourth Quarter Fiscal 2021 Financial Highlights

  • Net sales of $467.7 million, up 57% from the year ago quarter
  • GAAP gross margin of 25.2%, up 620 basis points versus the year ago quarter
  • Non-GAAP gross margin of 26.4%, up 690 basis points versus the year ago quarter
  • GAAP EPS of $0.78, up 160% versus the year ago quarter
  • Non-GAAP EPS of $2.16, up 163% versus the year ago quarter

Fiscal 2021 Highlights

  • Net sales of $1.5 billion, up 34% versus the prior year
  • GAAP gross margin of 20.5%, up 120 basis points versus the prior year
  • Non-GAAP gross margin of 22.2%, up 240 basis points versus the prior year
  • GAAP EPS of $0.83 compared with ($0.05) in the prior year
  • Non-GAAP EPS of $5.22, up 102% versus the prior year

“Fiscal 2021 has been a transformative year for SGH. We are proud of the team’s many accomplishments across each of our lines of business, Intelligent Platform Solutions, Memory Solutions, and LED solutions,” commented SGH CEO Mark Adams. “As we enter fiscal 2022, we believe we have the right platform to continue to execute our growth and diversification strategy while increasing value for our stakeholders.”

Fourth Quarter Fiscal 2021 and Historical Financial Data

Quarterly Financial Results GAAP (1) Non-GAAP (2)
(In millions, except per share amounts) Q4 FY21 Q3 FY21 Q4 FY20 Q4 FY21 Q3 FY21 Q4 FY20
Net sales

$ 467.7

$ 437.7

 

$ 297.0

$ 467.7

$ 437.7

$ 297.0

Gross profit

$ 117.8

$ 84.5

 

$ 56.3

$ 123.6

$ 95.7

$ 57.8

Operating income

$ 31.7

$ 2.9

 

$ 17.2

$ 66.6

$ 43.3

$ 28.4

Net income (loss) (3)

$ 20.7

$ (7.2

)

$ 7.5

$ 55.1

$ 35.5

$ 20.4

Diluted earnings (loss) per share (EPS)

$ 0.78

$ (0.30

)

$ 0.30

$ 2.16

$ 1.39

$ 0.82

Annual Financial Results GAAP (1) Non-GAAP (2)
(In millions, except per share amounts) FY21 FY20 FY21 FY20
Net sales

$ 1,501.1

$ 1,122.4

 

$ 1,501.1

$ 1,122.4

Gross profit

$ 308.4

$ 216.4

 

$ 332.6

$ 222.3

Operating income

$ 55.2

$ 41.3

 

$ 160.8

$ 84.2

Net income (loss) (3)

$ 21.3

$ (1.1

)

$ 132.2

$ 63.7

Diluted earnings (loss) per share (EPS)

$ 0.83

$ (0.05

)

$ 5.22

$ 2.59

(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" tables below for further detail on the non-GAAP financial reporting referenced above and a reconciliation of such measures to our nearest GAAP measures.

   

(3) 

Refers to net income (loss) attributable to SGH.

Business Outlook

GAAP Non-GAAP
Outlook Adjustments Outlook
Net sales $440 to $480 million

$440 to $480 million
Gross Margin 24% to 26% 1% (A) 25% to 27%
Diluted EPS $1.20 ± $0.20 $0.80 (A,B,C) $2.00 ± $0.20
Diluted shares 27 million (1) million 26 million
 
Non-GAAP adjustments (in millions):
(A) Share-based compensation and amortization of intangible assets– cost of sales

$ 6

(B) Share-based compensation and amortization of intangible assets– R&D and SG&A

$ 11

(C) Convertible debt discount OID and fees, integration costs and other adjustments

$ 3

$ 20

As of October 12, 2021, SGH is providing the following financial outlook for its first quarter of fiscal 2022:

Fourth Quarter 2021 Earnings Conference Call and Webcast Details

SGH will hold a conference call and webcast to discuss the Q4 and full year fiscal 2021 results and related matters at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on Tuesday, October 12, 2021. Interested parties may access the call by dialing +1-844-912-3896 in the U.S. or +1-236-714-3344 from international locations using access code 4873779. The webcast link is located on the SGH Investor Relations section of the website at https://sghcorp.com. We will also post the presentation to our website prior to the call.

Shortly after the conclusion of the conference call, a replay of the audio webcast will be available on the SGH Investor Relations website for approximately seven days.

2022 Annual Meeting of Shareholders

SGH will hold its Annual Meeting of Shareholders on February 11, 2022 at 10:00 a.m. Pacific Time.

Use of Forward-Looking Statements

This press 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 SGH (including the business outlook for the next fiscal quarter) and statements regarding growth drivers in SGH’s industries and markets. These forward-looking statements are based on current expectations and preliminary assumptions that are subject to factors and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside SGH’s control, including, among others: global business and economic conditions and growth trends in technology and lighting industries, our customer markets and various geographic regions; uncertainties in the geopolitical environment; disruptions in our operations or our supply chain as a result of COVID-19 pandemic or otherwise; 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 and additional capacity; acquisitions of companies or technologies, the failure to successfully integrate and operate them, or customers’ negative reactions to them; limitations on or changes in the availability of supply of materials and components; fluctuations in material costs; temporary or volatile nature of pricing trends in memory or elsewhere; 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 incentives for local manufacturing in Brazil; changes to applicable tax regimes or rates; prices for the end products of our customers; strikes or labor disputes; deterioration in or loss of relations with any of our limited number of key vendors; the inability to maintain or expand government business; and other factors and risks detailed in SGH’s filings with the U.S. Securities and Exchange Commission, which include SGH’s most recent reports on Form 10-K and Form 10-Q, including SGH’s future filings.

Such factors and risks as outlined above and, in such filings, do not constitute all factors and risks that could cause actual results of SGH to be materially different from our forward-looking statements.

Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements. These forward-looking statements are made as of today, and SGH 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.

Statement Regarding Use of Non-GAAP Financial Measures

SGH management uses non-GAAP measures to supplement SGH’s financial results under GAAP. Management uses these measures to analyze its operations and make decisions as to future operational plans and believes that this supplemental non-GAAP information is useful to investors in analyzing and assessing the Company’s past and future operating performance. The non-GAAP measures management uses include non-GAAP gross profit, operating income, net income/(loss) and earnings/(loss) per share. These non-GAAP measures exclude share-based compensation expense, amortization of intangible assets, contingent consideration fair value adjustment, acquisition-related inventory adjustment, integration and restructuring expenses, acquisition-related expenses, foreign currency gains/(losses), COVID-19 expenses, convertible debt OID and fees, transaction tax refunds and other expenses that are nonrecurring. Management believes the presentation of operating results that exclude these items provides useful supplemental information to investors and facilitates the analysis of the Company’s core operating results and comparison of operating results across reporting periods. Management also uses Adjusted EBITDA, which is calculated as GAAP net income (loss) plus net interest expense, income tax expense, depreciation and amortization expense, share-based compensation expense, contingent consideration fair value adjustment, acquisition-related inventory adjustment, out-of-period adjustments related to import taxes, loss on extinguishment of debt/revolver, capped call mark to market (MTM) adjustment, restructuring expenses, integration expenses, COVID-19 expenses, acquisition-related expenses, gain on settlements and other infrequent or unusual items.

Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with GAAP, as they exclude important information about our financial results, as noted above. In addition, adjusted EBITDA does not purport to represent cash flow provided by, or used in, operating activities in accordance with GAAP and should not be used as a measure of liquidity.

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

About SGH

At SGH, our companies are united by a drive to raise the bar, execute with discipline and focus on what’s next for the technologies that support and advance the world. Across computing, memory, and LED lighting solutions, we build long-term strategic partnerships with our customers.

Backed by a proven leadership team, we operate with excellence around the globe while unlocking new avenues of growth for our business and industry.

Learn more about us at SGHcorp.com.

SMART Global Holdings, Inc.
Consolidated Income Statements
(In thousands, except per share data)
 
Three Months Ended Fiscal Year Ended
August 27,
2021
May 28,
2021
August 28,
2020
August 27,
2021
August 28,
2020
 
Net sales:
Memory Solutions

$ 247,281

 

$ 240,116

 

$ 230,153

$ 931,818

 

$ 857,237

 

Intelligent Platform Solutions

97,616

 

95,857

 

66,877

344,757

 

265,140

 

LED Solutions

122,812

 

101,755

 

224,567

 

 

Total net sales

467,709

 

437,728

 

297,030

1,501,142

 

1,122,377

 

Cost of sales

349,915

 

353,241

 

240,693

1,192,762

 

905,981

 

Gross profit

117,794

 

84,487

 

56,337

308,380

 

216,396

 

Operating expenses:
Research and development

16,740

 

16,718

 

8,032

49,274

 

52,056

 

Selling, general and administrative

51,261

 

48,475

 

27,587

169,455

 

119,523

 

Change in fair value of contingent consideration

16,000

 

16,400

 

32,400

 

 

Other operating expense

2,054

 

 

3,487

2,054

 

3,487

 

Total operating expenses

86,055

 

81,593

 

39,107

253,183

 

175,066

 

 
Operating Income

31,739

 

2,894

 

17,230

55,197

 

41,330

 

Non-operating (income) expense:
Interest expense, net

5,031

 

5,049

 

3,265

17,600

 

15,000

 

Other non-operating (income) expense

(1,563

)

489

 

299

(375

)

16,970

 

Total other non-operating expense

3,468

 

5,538

 

3,564

17,225

 

31,970

 

Income (loss) before taxes

28,271

 

(2,644

)

13,666

37,972

 

9,360

 

Income tax provision

6,981

 

4,010

 

6,139

15,466

 

10,503

 

Net income (loss)

21,290

 

(6,654

)

7,527

22,506

 

(1,143

)

Net income attributable to noncontrolling interest

638

 

557

 

1,196

 

 

Net income (loss) attributable to SGH

$ 20,652

 

$ (7,211

)

$ 7,527

$ 21,310

 

$ (1,143

)

 
Earnings (loss) per share:
Basic

$ 0.85

 

$ (0.30

)

$ 0.31

$ 0.88

 

$ (0.05

)

Diluted

$ 0.78

 

$ (0.30

)

$ 0.30

$ 0.83

 

$ (0.05

)

 
Shares used in per share calculations
Basic

24,302

 

24,035

 

24,290

24,279

 

23,994

 

Diluted

26,417

 

24,035

 

24,839

25,792

 

23,994

 

 
SMART Global Holdings, Inc.
Reconciliation of GAAP Results to Non-GAAP Financial Measures
(In thousands, except per share data)
 
Three Months Ended Fiscal Year Ended
August 27,
2021
May 28,
2021
August 28,
2020
August 27,
2021
August 28,
2020
Reconciliation of gross profit:
GAAP gross profit

$ 117,794

$ 84,487

$ 56,337

$ 308,380

$ 216,396

GAAP gross margin

25.2%

19.3%

19.0%

20.5%

19.3%

 
Add: Share-based compensation included in cost of sales

1,785

1,166

861

4,593

3,022

Add: Intangible amortization included in cost of sales

3,997

2,937

647

8,228

2,588

Add: LED - Inventory adjustment

7,090

7,090

Add: Import taxes - Out of period adjustment

4,345

Add: COVID-19 expenses

282

 
Non-GAAP gross profit

$ 123,576

$ 95,680

$ 57,845

$ 332,636

$ 222,288

Non-GAAP gross margin

26.4%

21.9%

19.5%

22.2%

19.8%

 
Reconciliation of operating expenses:
GAAP operating expenses

$ 86,055

$ 81,593

$ 39,107

253,183

175,066

 
Less: Share-based compensation expense included in opex
Research and development

1,373

1,468

763

4,429

3,069

Selling, general and administrative

5,852

5,747

1,582

24,855

12,625

Total

7,225

7,215

2,345

29,284

15,694

Less: Amortization of intangible assets included in opex
Selling, general and administrative

3,247

3,247

2,767

12,027

11,066

Total

3,247

3,247

2,767

12,027

11,066

 
Less: Acquisition-related expenses

542

2,355

5,578

946

Less: Integration/restructuring expenses

2,054

4,548

2,054

9,072

Less: Change in fair value of contingent consideration

16,000

16,400

32,400

Less: COVID-19 expenses

228

 
Non-GAAP operating expenses

$ 56,987

$ 52,376

$ 29,447

$ 171,841

$ 138,060

 
Reconciliation of operating income:
GAAP operating income

$ 31,739

$ 2,894

$ 17,230

$ 55,197

$ 41,330

GAAP operating margin

6.8%

0.7%

5.8%

3.7%

3.7%

 
Add: Share-based compensation expense

9,010

8,381

3,206

33,877

18,716

Add: Amortization of intangible assets

7,244

6,184

3,414

20,255

13,654

Add: Change in fair value of contingent consideration

16,000

16,400

32,400

Add: Acquisition-related expenses

542

2,355

5,578

946

Add: LED - Inventory adjustment

7,090

7,090

Add: Integration/restructuring expenses

2,054

4,548

2,054

9,072

Add: Import taxes - Out of period adjustment

4,345

Add: COVID-19 expenses

510

Non-GAAP operating income

$ 66,589

$ 43,304

$ 28,398

$ 160,796

$ 84,228

Non-GAAP operating margin

14.2%

9.9%

9.6%

10.7%

7.5%

 
SMART Global Holdings, Inc.
Reconciliation of GAAP Results to Non-GAAP Financial Measures
(In thousands, except per share data)
 
Three Months Ended Fiscal Year Ended
August 27,
2021
May 28,
2021
August 28,
2020
August 27,
2021
August 28,
2020
 
Reconciliation of income (loss) before income taxes:
GAAP income/loss before income taxes

$ 28,271

 

$ (2,644

)

$ 13,666

 

$ 37,972

 

$ 9,360

 

Add: Share-based compensation expense

9,010

 

8,381

 

3,206

 

33,877

 

18,716

 

Add: Amortization of intangible assets

7,244

 

6,184

 

3,414

 

20,255

 

13,654

 

Add: Acquisition-related expenses

542

 

2,355

 

 

5,578

 

946

 

Add: LED - Inventory adjustment

 

7,090

 

 

7,090

 

 

Add: Integration/restructuring expenses

2,054

 

 

4,548

 

2,054

 

9,072

 

Add: COVID-19 expenses

 

 

 

 

510

 

Add: Gain on settlement of indemnity claim

 

 

(364

)

 

(364

)

Add: Extinguishment of term loan

 

 

 

 

6,822

 

Add: Import taxes - Out of period adjustment

 

 

 

5,085

 

 

Add: Capped call MTM adjustment

 

 

 

 

7,719

 

Add: Convertible debt discount OID and fees

2,172

 

2,088

 

2,026

 

8,420

 

4,385

 

Add: Change in fair value of contingent consideration

16,000

 

16,400

 

 

32,400

 

 

Add: Foreign currency (gains)/losses

(477

)

994

 

822

 

718

 

3,408

 

Add: Transaction tax refund

(1,002

)

 

 

(1,002

)

 

Non-GAAP income before income taxes

$ 63,814

 

$ 40,849

 

$ 27,318

 

$ 152,447

 

$ 74,228

 

 
Reconciliation of income tax provision:
GAAP income tax provision

$ 6,981

 

$ 4,010

 

$ 6,139

 

$ 15,466

 

$ 10,503

 

GAAP effective tax rate

24.7

%

-151.7

%

44.9

%

40.7

%

112.2

%

 
Less: Goodwill tax credit

 

 

(673

)

 

295

 

Add: Import taxes - Out of period adjustment

 

 

 

1,727

 

 

Tax effect of adjustments to GAAP results

(1,057

)

(767

)

(82

)

(1,844

)

(340

)

Non-GAAP income tax provision

$ 8,038

 

$ 4,777

 

$ 6,894

 

$ 19,036

 

$ 10,548

 

Non-GAAP effective tax rate

12.6

%

11.7

%

25.2

%

12.5

%

14.2

%

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

$ 20,652

 

$ (7,211

)

$ 7,527

 

$ 21,310

 

$ (1,143

)

 
Adjustments to GAAP net income (loss):
Share-based compensation

9,010

 

8,381

 

3,206

 

33,877

 

18,716

 

Amortization of intangible assets

7,244

 

6,184

 

3,414

 

20,255

 

13,654

 

Acquisition related expenses

542

 

2,355

 

 

5,578

 

946

 

LED - Inventory adjustment

 

7,090

 

 

7,090

 

 

Integration/restructuring expenses

2,054

 

 

4,548

 

2,054

 

9,072

 

Import taxes - Out of period adjustment

 

 

 

3,358

 

 

Convertible debt discount OID and fees

2,172

 

2,088

 

2,026

 

8,420

 

4,385

 

Change in fair value of contingent consideration

16,000

 

16,400

 

 

32,400

 

 

Foreign currency (gains)/losses

(477

)

994

 

822

 

718

 

3,408

 

Tax effect of items excluded from non-GAAP results

(1,057

)

(767

)

(82

)

(1,844

)

(340

)

Transaction tax refund

(1,002

)

 

 

(1,002

)

 

COVID-19 expenses

 

 

 

 

510

 

Extinguishment of term loan

 

 

 

 

6,822

 

Capped call MTM adjustment

 

 

 

 

7,719

 

Gain on settlement of indemnity claim

 

 

(364

)

 

(364

)

Goodwill tax credit

 

 

(673

)

 

295

 

Non-GAAP net income

$ 55,138

 

$ 35,513

 

$ 20,424

 

$ 132,214

 

$ 63,680

 

 
Diluted shares outstanding reconciliation:
GAAP weighted average outstanding shares - diluted*

26,417

 

26,444

 

24,839

 

25,792

 

24,566

 

Dilution offset from convertible note hedge transactions

(867

)

(928

)

 

(449

)

 

Non-GAAP diluted weighted average shares outstanding

25,551

 

25,516

 

24,839

 

25,343

 

24,566

 

 
GAAP earnings per share (diluted)

$ 0.78

 

$ (0.30

)

$ 0.30

 

$ 0.83

 

$ (0.05

)

Non-GAAP earnings per share (diluted)

$ 2.16

 

$ 1.39

 

$ 0.82

 

$ 5.22

 

$ 2.59

 

 
*Q3'21 & FY'20: represents what GAAP diluted shares would have been had there been GAAP income.

 

SMART Global Holdings, Inc.
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA
(In thousands)
   
Three Months Ended Fiscal Year Ended
 August 27,
2021 
   May 28,
2021 
 August 28,
2020 
 August 27,
2021 
 August 28,
2020 
   
GAAP net income (loss)

 $     20,652

 

 

 $     (7,211

)

 

 $       7,527

 

 

 $     21,310

 

 

 $     (1,143

)

Share-based compensation expense

          9,010

 

 

          8,381

 

 

3,206

 

 

33,877

 

 

18,716

 

Amortization of intangible assets

          7,244

 

 

          6,184

 

 

3,414

 

 

20,255

 

 

13,654

 

Interest expense, net

          5,031

 

 

          5,049

 

 

3,265

 

 

17,600

 

 

15,000

 

Provision for income tax

          6,981

 

 

          4,010

 

 

6,139

 

 

15,466

 

 

10,503

 

Depreciation

          9,399

 

 

          9,124

 

 

5,219

 

 

28,856

 

 

22,776

 

Change in fair value of contingent consideration(1)

16,000

 

16,400  

 

 

 

32,400

 

 

 

 

Integration/restructuring expenses

          2,054

 

 

 

 

4,548

 

 

2,054

 

 

9,072

 

Acquisition-related expenses(1)

            542

 

 

          2,355

 

 

 

 

5,578

 

 

946

 

Transaction tax refund

         (1,002

)

 

 

 

 

 

         (1,002

)

 

 

LED - Inventory adjustment(2)

 

 

          7,090

 

 

 

 

7,090

 

 

 

Import taxes - Out of period adjustment

 

 

 

 

 

 

4,345

 

 

 

Capped call MTM adjustment

 

 

 

 

 

 

 

 

7,719

 

Extinguishment of term loan

 

 

 

 

 

 

 

 

6,822

 

COVID-19 expenses

 

 

 

 

 

 

 

 

510

 

Gain on settlement of indemnity claim

 

 

 

 

           (364

)

 

 

 

           (364

)

                   
Adjusted EBITDA

 $     75,910

 

 

 $     51,382

 

 

 $     32,954

 

 

 $   187,828

 

 

 $   104,211

 

_________________________________

(1)

Amounts related to acquisitions of LED (March 2021) and SMART EC & Wireless (July 2019).

(2)

 

Amounts related to flow through of inventory fair value step up, net of the inventoried impact of other non-GAAP adjustments.

SMART Global Holdings, Inc.
Consolidated Balance Sheets
(In thousands)
 

August 27,

August 28,

As of

2021

2020

Assets
Cash and cash equivalents

$ 222,986

 

$ 150,811

 

Accounts receivable

313,393

 

215,918

 

Inventories

363,601

 

162,991

 

Other current assets

50,838

 

26,990

 

Total current assets

950,818

 

556,710

 

Property and equipment

156,266

 

54,705

 

Operating lease right-of-use assets

40,869

 

25,013

 

Intangible assets

101,073

 

55,671

 

Goodwill

74,255

 

73,955

 

Other noncurrent assets

21,517

 

20,554

 

Total assets

$ 1,344,798

 

$ 786,608

 

 
Liabilities and Equity
Accounts payable and accrued expenses

$ 484,107

 

$ 253,363

 

Current debt

25,354

 

 

Other current liabilities

74,337

 

29,126

 

Total current liabilities

583,798

 

282,489

 

Long-term debt

340,484

 

195,573

 

Acquisiton-related contingent consideration

60,500

 

 

Noncurrent operating lease liabilities

32,419

 

20,829

 

Other noncurrent liabilities

8,673

 

5,613

 

Total liabilities

1,025,874

 

504,504

 

SMART Global Holdings shareholders’ equity:
Ordinary shares

773

 

737

 

Additional paid-in capital

396,851

 

348,163

 

Retained earnings

184,787

 

163,477

 

Treasury shares

(50,545

)

(2,032

)

Accumulated other comprehensive income (loss)

(221,615

)

(228,241

)

Total SGH shareholders’ equity

310,251

 

282,104

 

Noncontrolling interest in subsidiary

8,673

 

 

Total equity

318,924

 

282,104

 

Total liabilities and equity

$ 1,344,798

 

$ 786,608

 

 
SMART Global Holdings, Inc.
Consolidated Statements of Cash Flows
(In thousands)
 
Three Months Ended Fiscal Year Ended
August 27,
2021
May 28,
2021
August 28,
2020
August 27,
2021
August 28,
2020
Cash flows from operating activities:
Net income (loss)

$ 21,290

 

$ (6,654

)

$ 7,527

 

$ 22,506

 

$ (1,143

)

Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation and amortization of intangible assets

16,642

 

15,308

 

8,633

 

49,111

 

36,430

 

Amortization of debt discounts and issuance costs

2,295

 

2,196

 

2,080

 

8,798

 

5,866

 

Share-based compensation expense

9,010

 

8,381

 

3,206

 

33,877

 

18,716

 

Loss from change in fair value of contingent consideration

16,000

 

16,400

 

 

32,400

 

 

Amortization of operating lease right-of-use assets

2,593

 

2,031

 

1,491

 

7,537

 

5,060

 

Loss on remeasurement of capped calls

 

 

 

 

7,719

 

Loss on extinguishment of debt

 

 

 

 

6,822

 

Other

342

 

(493

)

2,447

 

829

 

2,471

 

Changes in operating assets and liabilities:
Accounts receivable

(35,985

)

(25,537

)

5,537

 

(51,440

)

(12,348

)

Inventories

(71,396

)

(38,359

)

20,641

 

(137,889

)

(51,840

)

Other current assets

(3,317

)

4,963

 

6,879

 

(17,480

)

5,760

 

Accounts payable and accrued expenses

92,865

 

76,173

 

(30,020

)

214,959

 

70,570

 

Operating lease liabilities

(2,391

)

(1,718

)

(1,260

)

(6,851

)

(4,763

)

Deferred income taxes, net

76

 

(3,353

)

(2,181

)

(3,007

)

(2,115

)

Net cash provided by operating activities

48,024

 

49,338

 

24,981

 

153,350

 

87,205

 

Cash flows from investing activities:
Capital expenditures and deposits on equipment

(7,563

)

(5,222

)

(15,556

)

(47,580

)

(32,445

)

Acquisitions of business, net of cash acquired

(7,064

)

(28,613

)

 

(35,677

)

 

Other

(1,143

)

56

 

250

 

(921

)

404

 

Net cash used for investing activities

(15,770

)

(33,779

)

(15,306

)

(84,178

)

(32,041

)

Cash flows from financing activities:
Proceeds from borrowings under line of credit

50,000

 

80,000

 

42,500

 

172,500

 

103,000

 

Proceeds from issuance of ordinary shares

1,765

 

7,506

 

554

 

14,923

 

5,479

 

Proceeds from issuance of debt

 

 

 

11,439

 

243,125

 

Repayments of borrowings under line of credit

(50,000

)

(55,000

)

(42,500

)

(147,500

)

(103,000

)

Payments to acquire ordinary shares

(212

)

(337

)

(96

)

(48,513

)

(749

)

Repayments of debt

 

 

(615

)

 

(213,436

)

Purchase of capped calls

 

 

 

 

(21,825

)

Net cash provided by (used for) financing activities

1,553

 

32,169

 

(157

)

2,849

 

12,594

 

 
Effect of exchange rate changes on the cash and cash equivalents

187

 

1,461

 

9,448

 

154

 

(15,086

)

 
Net increase in cash and cash equivalents

33,995

 

49,189

 

18,966

 

72,175

 

52,672

 

Cash and cash equivalents at beginning of period

188,992

 

139,803

 

131,845

 

150,811

 

98,139

 

Cash and cash equivalents at end of period

$ 222,986

 

$ 188,992

 

$ 150,811

 

$ 222,986

 

$ 150,811

 

 

 

Investor Contact:
Suzanne Schmidt
Investor Relations
(510) 360-8596
ir@sghcorp.com

PR Contact:
Valerie Sassani
VP of Marketing and Communications
(510) 941 -8921
pr@sghcorp.com

Source: SMART Global Holdings, Inc.