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Published: 2024-04-09 16:08:15 ET

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EX-99.1 2 sghq2-24form8xkxex991.htm EX-99.1 Document

Exhibit 99.1

Press Release

FOR IMMEDIATE RELEASE

SGH REPORTS SECOND QUARTER FISCAL 2024 FINANCIAL RESULTS

IPS revenue up 19 percent sequentially; total SGH revenue of $285 million

Milpitas, Calif. – April 9, 2024 – 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%

(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


Investor Contact:			PR Contact:
Suzanne Schmidt			Valerie Sassani
Investor Relations			VP of Marketing and Communications
+1-510-360-8596			+1-510-941-8921
ir@sghcorp.com			pr@sghcorp.com

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.