SGH Reports Fourth Quarter and Full Year Fiscal 2021 Financial Results

Rhea-AI Summary

SMART Global Holdings, Inc. (SGH) reported record revenue for Q4 and FY21, with net sales reaching $467.7 million, a 57% increase year-over-year. GAAP EPS surged 160% to $0.78, while non-GAAP EPS climbed 163% to $2.16. For the fiscal year, total net sales were $1.5 billion, a 34% rise, with GAAP EPS of $0.83 compared to a loss last year. The outlook for Q1 FY22 estimates net sales between $440 and $480 million and diluted EPS of $1.20 ± $0.20, reflecting SGH’s growth trajectory.

Positive

• Record quarterly net sales of $467.7 million, up 57% year-over-year.
• GAAP EPS increased by 160% to $0.78 in Q4 FY21.
• Non-GAAP EPS rose 163% to $2.16 in Q4 FY21.
• Fiscal 2021 net sales totaled $1.5 billion, a 34% increase compared to prior year.

Negative

• GAAP gross margin at 25.2%, only a modest increase of 620 basis points, indicating potential margin pressure.
• Quarterly operating income at $31.7 million is a decline from $66.6 million in non-GAAP terms.

Record Quarterly and Annual Revenue with Strong Performance Across all Businesses

MILPITAS, Calif.--(BUSINESS WIRE)-- 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

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211012006131/en/

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.

FAQ

What were SMART Global Holdings' Q4 FY21 financial results?

In Q4 FY21, SGH reported net sales of $467.7 million, up 57% year-over-year, with a GAAP EPS of $0.78, a 160% increase.

How did SGH perform in fiscal year 2021?

SGH achieved a record net sales of $1.5 billion in fiscal 2021, a 34% increase from the previous year, and a GAAP EPS of $0.83.

What is SGH's financial outlook for Q1 FY22?

SGH anticipates net sales between $440 million and $480 million and diluted EPS of $1.20 ± $0.20 for Q1 FY22.