IPS revenue up 19 percent sequentially;
total SGH revenue of $285 million
SMART Global Holdings, Inc. (“SGH” or the “Company”) (NASDAQ:
SGH) today reported financial results for the second quarter of
fiscal 2024.
Second Quarter Fiscal 2024 Highlights
- Net sales of $284.8 million, up 3.9% versus the prior
quarter
- GAAP gross margin of 28.8% versus 30.2% in the prior
quarter
- Non-GAAP gross margin of 31.5% versus 33.3% in the prior
quarter
- GAAP EPS of $(0.26) versus $(0.23) in the prior quarter
- Non-GAAP EPS of $0.27 versus $0.24 in the prior quarter
“The second quarter marked a period of continued progress
towards our transformation into a high-value enterprise solutions
company,” said CEO Mark Adams. “Leveraging our deep-rooted
expertise in high-performance computing and specialty memory
solutions, we are uniquely positioned to help our valued customers
address the rapid adoption of AI,” concluded Adams.
As previously disclosed, on November 29, 2023, we completed our
previously announced divestiture of an 81% interest in our SMART
Brazil operations. Our SMART Brazil operations are classified as
discontinued operations in the accompanying financial information
for all periods presented. The discussion in this release relates
to our continuing operations, which exclude SMART Brazil.
Pete Manca to Lead IPS Business
SGH today also announced the appointment of Pete Manca as
President of Intelligent Platform Solutions (“IPS”). Mr. Manca
brings extensive experience building businesses that deliver
high-performance solutions to enterprise customers. Prior to
joining SGH, Mr. Manca served as a Senior Vice President and
General Manager at Dell Technologies from 2018 to 2023, managing
several large businesses, including Converged Solutions, OEM
Solutions, and APEX, Dell’s end-to-end portfolio of cloud
offerings, ranging from storage to high-performance computing to AI
services and solutions.
“We are thrilled to welcome Pete aboard as our President, IPS,”
said Mark Adams. “Pete’s strategic vision, broad experience, and
commitment to customer-driven innovation make him the ideal leader
to propel our AI and HPC business forward.”
“The era of AI and HPC is upon us, and I can’t think of a more
exciting company to join at this pivotal time,” said Manca. “I am
eager to start working with the IPS team to maximize the benefit of
these transformative technologies for our customers and
partners.”
Quarterly Financial Results
GAAP (1)
Non-GAAP (2)
(in thousands, except per share
amounts)
Q2 FY24
Q1 FY24
Q2 FY23
Q2 FY24
Q1 FY24
Q2 FY23
Net sales:
Memory Solutions
$
83,297
$
85,668
$
110,339
$
83,297
$
85,668
$
110,339
Intelligent Platform Solutions
141,405
118,824
222,451
141,405
118,824
222,451
LED Solutions
60,119
69,755
55,587
60,119
69,755
55,587
Total net sales
$
284,821
$
274,247
$
388,377
$
284,821
$
274,247
$
388,377
Gross profit
$
81,934
$
82,850
$
111,008
$
89,735
$
91,277
$
124,483
Operating income (loss)
(3,312
)
1,305
(2,077
)
26,514
26,679
55,784
Net income (loss) attributable to SGH
(13,620
)
(11,773
)
(33,396
)
14,141
12,538
43,180
Diluted earnings (loss) per share
$
(0.26
)
$
(0.23
)
$
(0.68
)
$
0.27
$
0.24
$
0.87
(1)
GAAP represents U.S. Generally Accepted
Accounting Principles.
(2)
Non-GAAP represents GAAP excluding the
impact of certain activities. Further information regarding the
Company’s use of non-GAAP measures and reconciliations between GAAP
and non-GAAP measures is included within this press release.
Business Outlook
As of April 9, 2024, SGH is providing the following financial
outlook for the third quarter of fiscal 2024:
GAAP
Outlook
Adjustments
Non-GAAP
Outlook
Net sales
$300 million +/- $25 million
—
$300 million +/- $25 million
Gross margin
29% +/- 1.5%
3%
(A)
32% +/- 1.5%
Operating expenses
$80 million +/- $2 million
($14) million
(B)(C)
$66 million +/- $2 million
Diluted earnings (loss) per share
$(0.07) +/- $0.15
$0.37
(A)(B)(C)(D)
$0.30 +/- $0.15
Diluted shares
52.6 million
1.8 million
54.4 million
Non-GAAP adjustments (in
millions)
(A) Share-based compensation and
amortization of acquisition-related intangibles included in cost of
sales
$
8
(B) Share-based compensation and
amortization of acquisition-related intangibles included in R&D
and SG&A
13
(C) Other adjustments
1
(D) Estimated income tax effects
(2
)
$
20
Second Quarter Fiscal 2024 Earnings Conference Call and
Webcast Details
SGH will hold a conference call and webcast to discuss the
second quarter of fiscal 2024 results and related matters today,
April 9, 2024, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time).
Interested parties may access the call by dialing +1-833-470-1428
in the U.S. or +1-929-526-1599 from international locations, using
the access code 202143. The earnings presentation and a live
webcast of the conference call can be accessed from the Company’s
investor relations website
(https://ir.smartm.com/investors/default.aspx) where they will
remain available for approximately one year.
Use of Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995.
These statements include, but are not limited to, statements
concerning or regarding future events and the future financial and
operating performance of SGH, including each of its lines of
business; statements regarding the extent and timing of and
expectations regarding SGH’s future revenues and expenses and
customer demand; statements regarding SGH’s strategic investments
and priorities; statements regarding long-term effective tax rates;
and statements regarding the business and financial outlook for the
next fiscal quarter described under “Business Outlook” above.
These statements can be identified by the fact that they do not
relate strictly to historical or current facts. Forward-looking
statements often use words such as “anticipate,” “target,”
“expect,” “estimate,” “intend,” “plan,” “goal,” “believe,” “could,”
and other words of similar meaning. Forward-looking statements
provide SGH’s current expectations or forecasts of future events,
circumstances, results or aspirations and are subject to a number
of significant risks, uncertainties and other factors, many of
which are outside of SGH’s control, including but not limited to:
global business and economic conditions and growth trends in
technology industries, our customer markets and various geographic
regions; uncertainties in the geopolitical environment; the ability
to manage our cost structure; disruptions in our operations or
supply chain; 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 and the failure to successfully integrate and operate
them or customers’ negative reactions to them; incurring
unanticipated costs following the completion of the sale of our
SMART Brazil business; issues, delays or complications in
integrating the operations of Stratus Technologies; limitations on
or changes in the availability of supply of materials and
components; fluctuations in material costs; the temporary or
volatile nature of pricing trends in memory or elsewhere;
deterioration in customer relationships; our dependence on a select
number of customers and the timing and volume of customer orders;
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 LED market; 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 the continuing availability of borrowings
under term loans and revolving lines of credit and our ability to
raise capital through debt or equity financings.
These and other risks, uncertainties and factors are described
in greater detail under the sections titled “Risk Factors,”
“Critical Accounting Estimates,” “Results of Operations,”
“Quantitative and Qualitative Disclosures About Market Risk” and
“Liquidity and Capital Resources” contained in the Company’s Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q and the
Company’s other filings with the U.S. Securities and Exchange
Commission. In addition, such risks, uncertainties and factors as
outlined above and in such filings do not constitute all risks,
uncertainties and factors that could cause actual results of SGH to
be materially different from such forward-looking statements.
Accordingly, investors are cautioned not to place undue reliance on
any forward-looking statements. Any forward-looking statements that
the Company makes in this press release speak only as of the date
of this press release. Except as required by law, SGH does not
undertake to update the forward-looking statements contained in
this press release to reflect the impact of circumstances or events
that may arise after the date that the forward-looking statements
were made.
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. These non-GAAP measures exclude
certain items, such as share-based compensation expense;
amortization of acquisition-related intangible assets (consisting
of amortization of developed technology, customer relationships,
trademarks/trade names and backlog acquired in connection with
business combinations); acquisition-related inventory adjustments;
diligence, acquisition and integration expense; restructure
charges; impairment of goodwill; changes in the fair value of
contingent consideration; gains (losses) from changes in currency
exchange rates; amortization of debt discount and other costs; gain
(loss) on extinguishment of debt; other infrequent or unusual items
and related tax effects and other tax adjustments. While
amortization of acquisition-related intangible assets is excluded,
the revenues from acquired companies is reflected in the Company’s
non-GAAP measures and these intangible assets contribute to revenue
generation. Management believes the presentation of operating
results that exclude certain 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 represents GAAP net income (loss), adjusted for net
interest expense; income tax expense; depreciation and amortization
expense; share-based compensation expense; acquisition-related
inventory adjustments; diligence, acquisition and integration
expense; restructure charges; impairment of goodwill; changes in
the fair value of contingent consideration; gain (loss) on
extinguishment of debt and other infrequent or unusual items.
Beginning in 2024, for our non-GAAP reporting, we are utilizing
a long-term projected non-GAAP effective tax rate of 28%, which
includes the tax impact of pre-tax non-GAAP adjustments and
reflects currently available information as well as other factors
and assumptions. While we expect to use this normalized non-GAAP
effective tax rate through 2024, this long-term non-GAAP effective
tax rate may be subject to change for a variety of reasons,
including the rapidly evolving global tax environment, significant
changes in our geographic earnings mix or changes to our strategy
or business operations. Our GAAP effective tax can vary
significantly from quarter to quarter based on a variety of
factors, including, but not limited to, discrete items which are
recorded in the period they occur, the tax effects of certain items
of income or expense, significant changes in our geographic
earnings mix or changes to our strategy or business operations. We
are unable to predict the timing and amounts of these items, which
could significantly impact our GAAP effective tax rate, and
therefore we are unable to reconcile our forward-looking non-GAAP
effective tax rate measure to our GAAP effective tax rate.
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 SGH’s financial results, as noted above. The
presentation of these adjusted amounts varies from amounts
presented in accordance with GAAP and therefore may not be
comparable to amounts reported by other companies. In addition,
adjusted EBITDA does not purport to represent cash flow provided
by, or used for, 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 to Non-GAAP
Measures” tables below.
About SMART Global Holdings – SGH
At SGH, we design, build, deploy and manage high-performance,
high-availability enterprise solutions that help our customers
solve for the future. Across our computing, memory, and LED lines
of business, we focus on serving our customers by providing deep
technical knowledge and expertise, custom design engineering,
build-to-order flexibility and a commitment to best-in-class
quality.
Learn more about us at SGHcorp.com.
SMART Global Holdings, Inc.
Consolidated Statements of
Operations
(In thousands, except per share
amounts)
(Unaudited)
Three Months Ended
Six Months Ended
March 1, 2024
December 1,
2023
February 24,
2023
March 1, 2024
February 24,
2023
Net sales:
Memory Solutions
$
83,297
$
85,668
$
110,339
$
168,965
$
228,625
Intelligent Platform Solutions
141,405
118,824
222,451
260,229
433,422
LED Solutions
60,119
69,755
55,587
129,874
118,127
Total net sales
284,821
274,247
388,377
559,068
780,174
Cost of sales
202,887
191,397
277,369
394,284
557,068
Gross profit
81,934
82,850
111,008
164,784
223,106
Operating expenses:
Research and development
20,526
21,389
25,272
41,915
49,344
Selling, general and administrative
61,385
57,217
60,074
118,602
127,782
Impairment of goodwill
—
—
17,558
—
17,558
Change in fair value of contingent
consideration
—
—
6,400
—
10,100
Other operating (income) expense
3,335
2,939
3,781
6,274
5,552
Total operating expenses
85,246
81,545
113,085
166,791
210,336
Operating income (loss)
(3,312
)
1,305
(2,077
)
(2,007
)
12,770
Non-operating (income) expense:
Interest expense, net
7,249
9,559
9,430
16,808
17,924
Other non-operating (income) expense
248
(576
)
13,307
(328
)
11,945
Total non-operating (income) expense
7,497
8,983
22,737
16,480
29,869
Income (loss) before taxes
(10,809
)
(7,678
)
(24,814
)
(18,487
)
(17,099
)
Income tax provision (benefit)
2,198
3,534
8,149
5,732
19,471
Net income (loss) from continuing
operations
(13,007
)
(11,212
)
(32,963
)
(24,219
)
(36,570
)
Net income (loss) from discontinued
operations
—
(8,148
)
6,177
(8,148
)
15,108
Net income (loss)
(13,007
)
(19,360
)
(26,786
)
(32,367
)
(21,462
)
Net income attributable to noncontrolling
interest
613
561
433
1,174
765
Net income (loss) attributable to SGH
$
(13,620
)
$
(19,921
)
$
(27,219
)
$
(33,541
)
$
(22,227
)
Basic earnings (loss) per share:
Continuing operations
$
(0.26
)
$
(0.23
)
$
(0.68
)
$
(0.49
)
$
(0.76
)
Discontinued operations
—
(0.15
)
0.13
(0.15
)
0.31
$
(0.26
)
$
(0.38
)
$
(0.55
)
$
(0.64
)
$
(0.45
)
Diluted earnings (loss) per share:
Continuing operations
$
(0.26
)
$
(0.23
)
$
(0.68
)
$
(0.49
)
$
(0.76
)
Discontinued operations
—
(0.15
)
0.13
(0.15
)
0.31
$
(0.26
)
$
(0.38
)
$
(0.55
)
$
(0.64
)
$
(0.45
)
Shares used in per share calculations:
Basic
52,031
52,068
49,116
52,050
49,039
Diluted
52,031
52,068
49,116
52,050
49,039
SMART Global Holdings, Inc.
Reconciliation of GAAP to Non-GAAP
Measures
(In thousands)
(Unaudited)
Three Months Ended
Six Months Ended
March 1, 2024
December 1,
2023
February 24,
2023
March 1, 2024
February 24,
2023
GAAP gross profit
$
81,934
$
82,850
$
111,008
$
164,784
$
223,106
Share-based compensation expense
1,691
1,815
1,308
3,506
2,950
Amortization of acquisition-related
intangibles
5,894
5,944
6,615
11,838
13,081
Flow-through of inventory step up
—
—
—
—
2,599
Cost of sales-related restructure
216
668
5,552
884
5,552
Non-GAAP gross profit
$
89,735
$
91,277
$
124,483
$
181,012
$
247,288
GAAP gross margin
28.8
%
30.2
%
28.6
%
29.5
%
28.6
%
Effect of adjustments
2.7
%
3.1
%
3.5
%
2.9
%
3.1
%
Non-GAAP gross margin
31.5
%
33.3
%
32.1
%
32.4
%
31.7
%
GAAP operating expenses
$
85,246
$
81,545
$
113,085
$
166,791
$
210,336
Share-based compensation expense
(8,948
)
(9,155
)
(8,723
)
(18,103
)
(17,062
)
Amortization of acquisition-related
intangibles
(3,857
)
(4,064
)
(4,200
)
(7,921
)
(8,592
)
Diligence, acquisition and integration
expense
(5,885
)
(789
)
(2,824
)
(6,674
)
(9,556
)
Impairment of goodwill
—
—
(17,558
)
—
(17,558
)
Change in fair value of contingent
consideration
—
—
(6,400
)
—
(10,100
)
Restructure charge
(3,335
)
(2,939
)
(3,781
)
(6,274
)
(5,552
)
Other
—
—
(900
)
—
(1,800
)
Non-GAAP operating expenses
$
63,221
$
64,598
$
68,699
$
127,819
$
140,116
GAAP operating income (loss)
$
(3,312
)
$
1,305
$
(2,077
)
$
(2,007
)
$
12,770
Share-based compensation expense
10,639
10,970
10,031
21,609
20,012
Amortization of acquisition-related
intangibles
9,751
10,008
10,815
19,759
21,673
Flow-through of inventory step up
—
—
—
—
2,599
Cost of sales-related restructure
216
668
5,552
884
5,552
Diligence, acquisition and integration
expense
5,885
789
2,824
6,674
9,556
Impairment of goodwill
—
—
17,558
—
17,558
Change in fair value of contingent
consideration
—
—
6,400
—
10,100
Restructure charge
3,335
2,939
3,781
6,274
5,552
Other
—
—
900
—
1,800
Non-GAAP operating income
$
26,514
$
26,679
$
55,784
$
53,193
$
107,172
SMART Global Holdings, Inc.
Reconciliation of GAAP to Non-GAAP
Measures
(In thousands, except per share
amounts)
(Unaudited)
Three Months Ended
Six Months Ended
March 1, 2024
December 1,
2023
February 24,
2023
March 1, 2024
February 24,
2023
GAAP net income (loss) attributable to
SGH
$
(13,620
)
$
(11,773
)
$
(33,396
)
$
(25,393
)
$
(37,335
)
Share-based compensation expense
10,639
10,970
10,031
21,609
20,012
Amortization of acquisition-related
intangibles
9,751
10,008
10,815
19,759
21,673
Flow-through of inventory step up
—
—
—
—
2,599
Cost of sales-related restructure
216
668
5,552
884
5,552
Diligence, acquisition and integration
expense
5,885
789
2,824
6,674
9,556
Impairment of goodwill
—
—
17,558
—
17,558
Change in fair value of contingent
consideration
—
—
6,400
—
10,100
Restructure charge
3,335
2,939
3,781
6,274
5,552
Amortization of debt discount and other
costs
968
1,042
1,048
2,010
2,117
Loss (gain) on extinguishment or
prepayment of debt
325
—
16,691
325
15,924
Foreign currency (gains) losses
182
(546
)
165
(364
)
(355
)
Other
—
—
900
—
1,800
Income tax effects
(3,540
)
(1,559
)
811
(5,099
)
5,791
Non-GAAP net income attributable to
SGH
$
14,141
$
12,538
$
43,180
$
26,679
$
80,544
Weighted-average shares outstanding -
Diluted:
GAAP weighted-average shares
outstanding
52,031
52,068
49,116
52,050
49,039
Adjustment for dilutive securities and
capped calls
1,043
1,213
726
1,128
777
Non-GAAP weighted-average shares
outstanding
53,074
53,281
49,842
53,178
49,816
Diluted earnings (loss) per share from
continuing operations:
GAAP diluted earnings (loss) per share
$
(0.26
)
$
(0.23
)
$
(0.68
)
$
(0.49
)
$
(0.76
)
Effect of adjustments
0.53
0.47
1.55
0.99
2.38
Non-GAAP diluted earnings per share
$
0.27
$
0.24
$
0.87
$
0.50
$
1.62
Net income (loss) attributable to
SGH
$
(13,620
)
$
(11,773
)
$
(33,396
)
$
(25,393
)
$
(37,335
)
Interest expense, net
7,249
9,559
9,430
16,808
17,924
Income tax provision (benefit)
2,198
3,534
8,149
5,732
19,471
Depreciation expense and amortization of
intangible assets
17,156
17,654
17,199
34,810
34,248
Share-based compensation expense
10,639
10,970
10,031
21,609
20,012
Flow-through of inventory step up
—
—
—
—
2,599
Cost of sales-related restructure
216
668
5,552
884
5,552
Diligence, acquisition and integration
expense
5,885
789
2,824
6,674
9,556
Impairment of goodwill
—
—
17,558
—
17,558
Change in fair value of contingent
consideration
—
—
6,400
—
10,100
Restructure charge
3,335
2,939
3,781
6,274
5,552
Loss on extinguishment of debt
325
—
16,691
325
15,924
Other
—
—
900
—
1,800
Adjusted EBITDA
$
33,383
$
34,340
$
65,119
$
67,723
$
122,961
SMART Global Holdings, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
As of
March 1, 2024
August 25, 2023
Assets
Cash and cash equivalents
$
442,329
$
365,563
Short-term investments
23,439
25,251
Accounts receivable, net
169,718
219,247
Inventories
172,763
174,977
Other current assets
76,481
51,790
Current assets of discontinued
operations
—
70,574
Total current assets
884,730
907,402
Property and equipment, net
109,516
118,734
Operating lease right-of-use assets
62,529
68,444
Intangible assets, net
140,923
160,185
Goodwill
161,958
161,958
Deferred tax assets
73,914
74,085
Other noncurrent assets
83,884
15,150
Total assets
$
1,517,454
$
1,505,958
Liabilities and Equity
Accounts payable and accrued expenses
$
182,021
$
182,035
Current debt
—
35,618
Deferred revenue
37,228
48,096
Other current liabilities
48,710
32,731
Acquisition-related contingent
consideration
—
50,000
Current liabilities of discontinued
operations
—
77,770
Total current liabilities
267,959
426,250
Long-term debt
740,663
754,820
Noncurrent operating lease liabilities
62,585
66,407
Other noncurrent liabilities
34,743
29,248
Total liabilities
1,105,950
1,276,725
Commitments and contingencies
SMART Global Holdings shareholders’
equity:
Ordinary shares
1,769
1,726
Additional paid-in capital
502,560
476,703
Retained earnings
48,916
82,457
Treasury shares
(148,309
)
(132,447
)
Accumulated other comprehensive income
(loss)
106
(205,964
)
Total SGH shareholders’ equity
405,042
222,475
Noncontrolling interest in subsidiary
6,462
6,758
Total equity
411,504
229,233
Total liabilities and equity
$
1,517,454
$
1,505,958
SMART Global Holdings, Inc.
Consolidated Statements of Cash
Flows
(In thousands)
(Unaudited)
Three Months Ended
Six Months Ended
March 1, 2024
December 1,
2023
February 24,
2023
March 1, 2024
February 24,
2023
Cash flows from operating
activities
Net income (loss)
$
(13,007
)
$
(19,360
)
$
(26,786
)
$
(32,367
)
$
(21,462
)
Net income (loss) from discontinued
operations
—
(8,148
)
6,177
(8,148
)
15,108
Net income (loss) from continuing
operations
(13,007
)
(11,212
)
(32,963
)
(24,219
)
(36,570
)
Adjustments to reconcile net income (loss)
from continuing operations to cash provided by (used for) operating
activities
Depreciation expense and amortization of
intangible assets
17,156
17,654
17,199
34,810
34,248
Amortization of debt discount and issuance
costs
968
1,042
1,048
2,010
2,117
Share-based compensation expense
10,639
10,970
10,031
21,609
20,012
Impairment of goodwill
—
—
17,558
—
17,558
Change in fair value of contingent
consideration
—
—
6,400
—
10,100
(Gain) loss on extinguishment or
prepayment of debt
325
—
16,691
325
15,924
Deferred income taxes, net
476
(282
)
(88
)
194
1,630
Other
(208
)
664
3,759
456
4,116
Changes in operating assets and
liabilities:
Accounts receivable
872
48,658
48,936
49,530
172,033
Inventories
35,678
(33,464
)
112,287
2,214
10,240
Other assets
(23,229
)
2,102
(3,065
)
(21,127
)
(9,893
)
Accounts payable and accrued expenses and
other liabilities
(22,587
)
23,581
(119,996
)
994
(174,745
)
Payment of acquisition-related contingent
consideration
(29,000
)
—
—
(29,000
)
(73,724
)
Net cash provided by (used for) operating
activities from continuing operations
(21,917
)
59,713
77,797
37,796
(6,954
)
Net cash provided by (used for) operating
activities from discontinued operations
—
(28,235
)
22,738
(28,235
)
33,504
Net cash provided by (used for) operating
activities
(21,917
)
31,478
100,535
9,561
26,550
Cash flows from investing
activities
Capital expenditures and deposits on
equipment
(5,204
)
(4,648
)
(11,699
)
(9,852
)
(19,690
)
Acquisition of business, net of cash
acquired
—
—
(2,800
)
—
(213,073
)
Proceeds from maturities of investment
securities
12,290
9,665
—
21,955
—
Purchases of held-to-maturity investment
securities
(11,034
)
(8,469
)
—
(19,503
)
—
Other
(558
)
(188
)
1,998
(746
)
239
Net cash used for investing activities
from continuing operations
(4,506
)
(3,640
)
(12,501
)
(8,146
)
(232,524
)
Net cash provided by (used for) investing
activities from discontinued operations
—
118,938
(852
)
118,938
(4,472
)
Net cash provided by (used for) investing
activities
$
(4,506
)
$
115,298
$
(13,353
)
$
110,792
$
(236,996
)
SMART Global Holdings, Inc.
Consolidated Statements of Cash Flows,
Continued
(In thousands)
(Unaudited)
Three Months Ended
Six Months Ended
March 1, 2024
December 1,
2023
February 24,
2023
March 1, 2024
February 24,
2023
Cash flows from financing
activities
Proceeds from debt
$
—
$
—
$
—
$
—
$
295,287
Proceeds from issuance of ordinary
shares
792
3,455
308
4,247
4,250
Payment of acquisition-related contingent
consideration
(21,000
)
—
—
(21,000
)
(28,100
)
Payments to acquire ordinary shares
(2,732
)
(13,130
)
(11,564
)
(15,862
)
(16,223
)
Repayments of debt
(37,211
)
(14,423
)
(3,605
)
(51,634
)
(7,211
)
Payment of premium in connection with
convertible note exchange
—
—
(14,141
)
—
(14,141
)
Net cash paid for settlement and purchase
of Capped Calls
—
—
(4,304
)
—
(4,304
)
Distribution to noncontrolling
interest
—
(1,470
)
(2,009
)
(1,470
)
(2,009
)
Other
(1
)
(582
)
(4,289
)
(583
)
(5,077
)
Net cash provided by (used for) financing
activities from continuing operations
(60,152
)
(26,150
)
(39,604
)
(86,302
)
222,472
Net cash used for financing activities
from discontinued operations
—
(606
)
(27
)
(606
)
(124
)
Net cash provided by (used for) financing
activities
(60,152
)
(26,756
)
(39,631
)
(86,908
)
222,348
Effect of changes in currency exchange
rates
(155
)
(1,025
)
1,712
(1,180
)
1,917
Net increase (decrease) in cash and cash
equivalents
(86,730
)
118,995
49,263
32,265
13,819
Cash and cash equivalents at beginning of
period
529,059
410,064
327,621
410,064
363,065
Cash and cash equivalents at end of
period
$
442,329
$
529,059
$
376,884
$
442,329
$
376,884
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240409844086/en/
Investor Contact: Suzanne Schmidt Investor Relations
+1-510-360-8596 ir@sghcorp.com
PR Contact: Valerie Sassani VP of Marketing and
Communications +1-510-941-8921 pr@sghcorp.com
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