SMART Global Holdings Reports Fourth Quarter and Full Year

NEWARK, Calif., Oct. 04, 2018 (GLOBE NEWSWIRE) -- SMART Global Holdings, Inc. (“SMART”) (NASDAQ: SGH), parent company of SMART Modular Technologies, Inc., today reported financial results for the fourth quarter and full year fiscal 2018 ended August 31, 2018.

Fourth Quarter Fiscal 2018 Highlights:

Net sales of $374.0 million, 68% higher than year ago quarter
GAAP operating income of $45.0 million
GAAP net income of $29.7 million
Adjusted EBITDA of $51.0 million
GAAP diluted EPS of $1.28
Non-GAAP diluted EPS of $1.72

Full Year Fiscal 2018 Highlights:

Net sales of $1.3 billion, 69% higher than prior fiscal year
GAAP operating income of $170.2 million
GAAP net income of $119.5 million
Adjusted EBITDA of $195.5 million
GAAP diluted EPS of $5.17
Non-GAAP diluted EPS of $6.36

“We completed fiscal 2018 with another great quarter, including the closing of our acquisition of Penguin Computing,” commented Ajay Shah, Chairman and Chief Executive Officer. “In addition, we closed our first full fiscal year as a public company with record revenues that crossed the $1 billion mark. Driving this performance was strength in our Specialty Memory business which had a very strong quarter and earned new NVDIMM and VLP RDIMM design wins at major Storage and Server customers. We also had design wins for our ruggedized SSD products and our Embedded Data Cache product in the Industrial Automation market. Brazil continued its strong performance and added many new memory products for PC, server and smartphone applications as well as a new polymer cell-based battery product for smartphones.”

“Our new Specialty Compute and Storage Solutions business led by Penguin Computing performed well in its first quarter as part of SGH. During the quarter we won a number of key contracts with agencies within the Department of Energy (DoE), contractors to the Department of Defense (DoD) and with a number of other enterprise customers for our HPC and AI cluster products.”

“We continue to be focused on growing all our lines of business over the new fiscal year,” concluded Mr. Shah.

Quarterly Financial Results	GAAP ⁽¹⁾							Non-GAAP ⁽²⁾
(In millions, except per share amounts)	Q4 FY18		Q3 FY18		Q4 FY17			Q4 FY18		Q3 FY18		Q4 FY17
Net sales	$	374.0	$	335.5	$	223.0		$	374.0	$	335.5	$	223.0
Gross profit	$	82.7	$	78.1	$	48.0		$	83.8	$	78.5	$	48.2
Operating income	$	45.0	$	48.7	$	20.6		$	51.8	$	53.8	$	25.4
Net income (loss)	$	29.7	$	31.9	$	(10.2	)	$	40.0	$	43.0	$	16.5
Diluted earnings (loss) per share (EPS)⁽³⁾	$	1.28	$	1.37	$	(0.48	)	$	1.72	$	1.84	$	0.75

Annual Financial Results		GAAP ⁽¹⁾					Non-GAAP ⁽²⁾
(In millions, except per share amounts)		FY18		FY17			FY18		FY17
Net sales		$	1,288.8	$	761.3		$	1,288.8	$	761.3
Gross profit		$	291.6	$	162.3		$	293.6	$	162.9
Operating income		$	170.2	$	53.9		$	188.8	$	71.2
Net income (loss)		$	119.5	$	(7.8	)	$	147.0	$	36.3
Diluted earnings (loss) per share (EPS)⁽³⁾		$	5.17	$	(0.49	)	$	6.36	$	2.25

(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)	We exclude foreign currency gains/losses from our non-GAAP diluted EPS as we believe this non-GAAP financial measure is a more relevant indicator of our core operating results. This change is reflected for all the periods presented in this release.

Other Highlights
SMART appointed an additional independent director, Bryan Ingram, Senior Vice President and General Manager of the Wireless Semiconductor Division of Broadcom Inc., to its board of directors and its Compensation Committee.

Business Outlook
The following statements are based upon management's current expectations for the first quarter of fiscal 2019 ending November 30, 2018. These statements are forward-looking, and actual results may differ materially. SMART undertakes no obligation to update these statements.

Net Sales - GAAP / Non-GAAP	$375 to $390 million
Gross Margin - GAAP / Non-GAAP	22% to 23%
Diluted EPS - GAAP	$1.49 to $1.54

Share-based compensation per share	$0.16
Intangible amortization per share	$0.04
Acquisition costs per share	$0.05

Diluted EPS - Non-GAAP	$1.74 to $1.79

Expected diluted share count	23.2 million

Conference Call Details
SMART will host a conference call today for analysts and investors at 1:30 p.m. Pacific time, 4:30 p.m. Eastern time. Dial-in US toll free +1-866-487-6452 using access code 9390108.

A replay of the conference call will be available for one week following today’s call through the Events section of the SMART website at www.smartgh.com or by calling US toll free +1-855-859-2056; Passcode: 9390108.

Forward-Looking Statements
This release contains, and statements made during the above-referenced conference call will contain "forward-looking statements" including among other things, statements regarding future events and the future financial performance of SMART (including the business outlook for the next fiscal quarter) and statements regarding growth drivers in SMART’s industries and markets. These statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including but not limited to: business and economic conditions and growth trends in the technology industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; changes in currency exchange rates; overall information technology spending; appropriations for government spending; the success of our strategic initiatives including additional investments in new products, additional capacity and acquisitions; the DRAM market and the temporary and volatile nature of pricing trends; deterioration in customer relationships; production or manufacturing difficulties; competitive factors; technological changes; difficulties with or delays in the introduction of new products; slowing or contraction of growth in the memory market in Brazil; reduction in or termination of local content requirements in Brazil; changes to applicable tax regimes or rates; prices for the end products of our customers; fluctuations in material costs and availability; strikes or labor disputes; deterioration in or loss of relations with any of our limited number of key vendors; changes in the availability of supply of materials, components or memory products; the inability of Penguin Computing to obtain and retain security clearances to expand its government business; and other factors and risks detailed in SMART’s filings with the Securities and Exchange Commission. Such factors and risks as outlined above and in such filings may not constitute all factors and risks that could cause actual results of SMART to be materially different from the historical results and/or from any future results or outcomes expressed or implied by such forward-looking statements. SMART and its subsidiaries operate in a continually changing business environment and new factors emerge from time to time. SMART cannot predict such factors, nor can it assess the impact, if any, from such factors on SMART or its subsidiaries’ results. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements should not be relied upon as a prediction of actual results. These forward-looking statements are made as of today, and SMART does not intend, and has no obligation, to update or revise any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release, except as required by law.

Non-GAAP Information
Certain non-GAAP financial measures are contained in this press release or will be discussed on our conference call, including non-GAAP gross profit, non-GAAP operating income, Adjusted EBITDA, non-GAAP net income, non-GAAP net income per diluted share, non-GAAP diluted EPS excluding foreign currency gains (losses). We define Adjusted EBITDA as GAAP net income plus net interest expense, income tax expense, depreciation and amortization expense, stock-based compensation expense, acquisition-related expenses, restructuring charges, amortization of non-cash debt discount related to warrants, non-cash charges in connection with refinancing, and other infrequent or unusual items. Adjusted EBITDA is not a measure of financial performance calculated in accordance with U.S. GAAP and should be viewed as a supplement to, not a substitute for, our results of operations presented on the basis of U.S. GAAP. Adjusted EBITDA also does not purport to represent cash flow provided by, or used in, operating activities in accordance with U.S. GAAP and should not be used as a measure of liquidity.

The non-GAAP financial results presented herein exclude stock-based compensation expense, intangible amortization expense, acquisition-related expenses, amortization of non-cash debt discount related to warrants, non-cash charges in connection with refinancing and, with respect to non-GAAP diluted EPS, foreign currency gains (losses). These non-GAAP financial measures are provided to enhance the user's overall understanding of our financial performance. By excluding these charges, as well as any related tax effects, our non-GAAP results provide information to management and investors that is useful in assessing SMART's core operating performance and in evaluating and comparing our results of operations on a consistent basis from period to period. These non-GAAP financial measures are also used by management to evaluate financial results, to plan and forecast future periods, and to assess performance of certain executives for compensation purposes. The presentation of this additional information is not meant to be a substitute for the corresponding financial measures prepared in accordance with U.S. GAAP. In addition, these measures may not be used similarly by other companies and therefore may not be comparable between companies.

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

About SMART Global Holdings
The SMART family of companies are global leaders in specialty memory, storage and hybrid solutions serving the electronics industry with standard and custom products for over 25 years. SMART delivers components, modules and solutions to a broad customer base, including OEMs in computing, networking, communications, storage, mobile and industrial markets. With the addition of Penguin Computing and the creation of a new business unit, SMART Specialty Compute & Storage Solutions (SCSS), SMART has expanded its serviceable markets into areas requiring specialized computing platforms in artificial intelligence and machine learning, advanced modeling and high performance computing. Customers rely on SMART as a strategic supplier with custom designs, product quality, technical support, a global footprint, and the ability to provide locally manufactured products in multiple geographies. See www.smartgh.com, www.smartm.com, www.smarth.com, www.smartsscs.com and www.penguincomputing.com for more information.


SMART Global Holdings, Inc.
and Subsidiaries
Consolidated Statements of Income
(In thousands, except per share data)

			Three Months Ended									Fiscal Year Ended
			August 31, 2018			May 25, 2018			August 25, 2017			August 31, 2018			August 25, 2017
Net sales:
	Brazil		$	198,624		$	232,742		$	134,765		$	797,849		$	398,175
	Specialty Memory			122,820			102,735			88,254			438,446			363,116
	Specialty Compute and Storage Solutions			52,526			—			—			52,526			—
		Total net sales		373,970			335,477			223,019			1,288,821			761,291
Cost of sales ⁽¹⁾⁽²⁾				291,291			257,423			175,011			997,235			599,041
	Gross profit			82,679			78,054			48,008			291,586			162,250
Operating expenses:
	Research and development ^{(1) (2)}			11,659			9,763			9,718			39,824			38,160
	Selling, general and administrative^{(1) (2)}			29,039			19,597			17,722			84,541			66,759
	Change in estimated fair value of acquisition-related
		contingent consideration		(3,000	)		—			—			(3,000	)		—
	Management advisory fees			—			—			—			—			3,000
	Restructuring			—			—			—			—			457
		Total operating expenses		37,698			29,360			27,440			121,365			108,376

		Income from operations		44,981			48,694			20,568			170,221			53,874
Other income (expense):
	Interest expense, net			(6,217	)		(4,098	)		(6,132	)		(19,144	)		(29,204	)
	Other income (expense), net			(5,987	)		(7,145	)		(20,887	)		(13,299	)		(22,551	)
		Total other expense		(12,204	)		(11,243	)		(27,019	)		(32,443	)		(51,755	)
		Income (loss) before income taxes		32,777			37,451			(6,451	)		137,778			2,119
Provision for income taxes				3,059			5,505			3,758			18,315			9,914
		Net income (loss)	$	29,718		$	31,946		$	(10,209	)	$	119,463		$	(7,795	)

Earnings (loss) per share:
	Basic		$	1.33		$	1.44		$	(0.48	)	$	5.42		$	(0.49	)
	Diluted		$	1.28		$	1.37		$	(0.48	)	$	5.17		$	(0.49	)

Shares used in computing earnings (loss) per share:
	Basic			22,383			22,206			21,435			22,051			15,785
	Diluted			23,270			23,306			21,435			23,119			15,785

(1) Includes share-based compensation expense as follows:
	Cost of sales		$	475		$	414		$	192		$	1,334		$	636
	Research and development			572			325			232			1,459			655
	Selling, general and administrative			2,911			2,558			1,407			7,764			4,073
		Total stock-based compensation expense	$	3,958		$	3,297		$	1,831		$	10,557		$	5,364

(2) Includes amortization of intangible assets expense as follows:
	Cost of sales		$	7		$	—		$	—		$	7		$	—
	Research and development			252			245			1,225			987			4,897
	Selling, general and administrative			2,144			976			1,746			5,136			7,042
		Total amortization expense	$	2,403		$	1,221		$	2,971		$	6,130		$	11,939


SMART Global Holdings, Inc.
and Subsidiaries
Reconciliation of Non-GAAP Financial Measures to GAAP Results
(In thousands, except per share data)

			Three Months Ended									Fiscal Year Ended
			August 31, 2018			May 25, 2018			August 25, 2017			August 31, 2018			August 25, 2017
Reconciliation of gross profit:
GAAP gross profit			$	82,679		$	78,054		$	48,008		$	291,586		$	162,250
	GAAP gross margin			22.1	%		23.3	%		21.5	%		22.6	%		21.3	%

Add: Share-based compensation included in cost of sales				475			414			192			1,334			636
Add: Intangible amortization included in cost of sales				7			—			—			7			—
Add: Purchase accounting adjustment				631			—			—			631			—

Non-GAAP gross profit			$	83,792		$	78,468		$	48,200		$	293,558		$	162,886
	Non-GAAP gross margin			22.4	%		23.4	%		21.6	%		22.8	%		21.4	%

Reconciliation of operating expenses:
GAAP operating expenses			$	37,698		$	29,360		$	27,440		$	121,365		$	108,376

Less: Share-based compensation expense included in opex
	Research and development			572			325			232			1,459			655
	Selling, general and administrative			2,911			2,558			1,407			7,764			4,073
		Total		3,483			2,883			1,639			9,223			4,728

Less: Amortization of intangible assets included in opex
	Research and development			252			245			1,225			987			4,897
	Selling, general and administrative			2,144			976			1,746			5,136			7,042
		Total		2,396			1,221			2,971			6,123			11,939

Less: S-1 related costs				—			—			—			813			—
Less: Acquisition-related expenses				2,844			591			—			3,435			—
Less: Contingent consideration fair value adjustment				(3,000	)		—			—			(3,000	)		—

Non-GAAP operating expenses			$	31,975		$	24,665		$	22,830		$	104,771		$	91,709

Reconciliation of income from operations:
GAAP income from operations			$	44,981		$	48,694		$	20,568		$	170,221		$	53,874
	GAAP operating margin			12.0	%		14.5	%		9.2	%		13.2	%		7.1	%

Add: Share-based compensation expense				3,958			3,297			1,831			10,557			5,364
Add: Amortization of intangible assets				2,403			1,221			2,971			6,130			11,939
Add: Purchase accounting adjustment				631			—			—			631			—
Add: S-1 related costs				—			—			—			813			—
Add: Acquisition-related expenses				2,844			591			—			3,435			—
Less: Contingent consideration fair value adjustment				(3,000	)		—			—			(3,000	)		—

Non-GAAP income from operations			$	51,817		$	53,803		$	25,370		$	188,787		$	71,177
	Non-GAAP operating margin			13.9	%		16.0	%		11.4	%		14.6	%		9.3	%

Reconciliation of income before income taxes:
GAAP income before income taxes			$	32,777		$	37,451		$	(6,451	)	$	137,778		$	2,119
Add: Share-based compensation expense				3,958			3,297			1,831			10,557			5,364
Add: Amortization of intangible assets				2,403			1,221			2,971			6,130			11,939
Add: Purchase accounting adjustment				631			—			—			631			—
Add: S-1 related costs				—			—			—			813			—
Add: Acquisition-related expenses				2,844			591			—			3,435			—
Less: Contingent consideration fair value adjustment				(3,000	)		—			—			(3,000	)		—
Less: Loss on early debt repayment				—			—			6,743			—			6,743
Less: Amortization of debt discount related to warrants				—			—			1,214			—			5,127
Less: Loss on extinguishment of LT debt				—			—			15,194			—			16,579
Add: Foreign currency (gains) losses				5,968			6,932			(1,032	)		13,227			(285	)

Non-GAAP income before income taxes			$	45,581		$	49,492		$	20,470		$	169,571		$	47,586


SMART Global Holdings, Inc.
and Subsidiaries
Reconciliation of Non-GAAP Financial Measures to GAAP Results
(In thousands, except per share data)

		Three Months Ended									Fiscal Year Ended
		August 31, 2018			May 25, 2018			August 25, 2017			August 31, 2018			August 25, 2017
Reconciliation of provision for income taxes:
GAAP provision for income taxes		$	3,059		$	5,505		$	3,758		$	18,315		$	9,914
	GAAP effective tax rate		9.3	%		14.7	%		-58.3	%		13.3	%		467.9	%

Tax effect of adjustments to GAAP results			(2,529	)		(1,025	)		(214	)		(4,273	)		(1,367	)

Non-GAAP provision for income taxes		$	5,588		$	6,530		$	3,972		$	22,588		$	11,281
	Non-GAAP effective tax rate		12.3	%		13.2	%		19.4	%		13.3	%		23.7	%

Reconciliation of net income and earnings per share (diluted):
GAAP net income (loss)		$	29,718		$	31,946		$	(10,209	)	$	119,463		$	(7,795	)

Adjustments to GAAP net income:
	Share-based compensation		3,958			3,297			1,831			10,557			5,364
	Amortization of intangible assets		2,403			1,221			2,971			6,130			11,939
	Purchase accounting adjustment		631			—			—			631			—
	S-1 related costs		—			—			—			813			—
	Acquisition-related expenses		2,844			591			—			3,435			—
	Contingent consideration fair value adjustment		(3,000	)		—			—			(3,000	)		—
	Loss on early debt repayment		—			—			6,743			—			6,743
	Amortization of debt discount related to warrants		—			—			1,214			—			5,127
	Loss on extinguishment of LT debt		—			—			15,194			—			16,579
	Foreign currency (gains) losses		5,968			6,932			(1,032	)		13,227			(285	)
	Tax effect of items excluded from non-GAAP results		(2,529	)		(1,025	)		(214	)		(4,273	)		(1,367	)

Non-GAAP net income		$	39,993		$	42,962		$	16,498		$	146,983		$	36,305

Shares used in computing earnings per share (diluted)			23,270			23,306			22,011			23,119			16,171

Non-GAAP earnings per share (diluted)		$	1.72		$	1.84		$	0.75		$	6.36		$	2.25

GAAP income (loss) per share (diluted)		$	1.28		$	1.37		$	(0.48	)	$	5.17		$	(0.49	)


SMART Global Holdings, Inc.
and Subsidiaries
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA
(In thousands)

		Three Months Ended								Fiscal Year Ended
		August 31, 2018			May 25, 2018		August 25, 2017			August 31, 2018			August 25, 2017

GAAP net income (loss)		$	29,718		$	31,946	$	(10,209	)	$	119,463		$	(7,795	)

	Share-based compensation expense		3,958			3,297		1,831		$	10,557			5,364
	Amortization of intangible assets		2,403			1,221		2,971			6,130			11,939
	Interest expense, net		6,217			4,098		6,132			19,144			29,204
	Provision for income tax		3,059			5,505		3,758			18,315			9,914
	Depreciation		5,124			4,806		4,869			20,052			21,300
	S-1 related costs		—			—		—			813			—
	Investment advisory fees		—			—		—			—			540
	Restructuring		—			—		—			—			457
	Obsolete inventory related to restructuring		—			—		—			—			372
	Management advisory fees		—			—		—			—			3,000
	Debt extension costs⁽¹⁾		—			—		—			—			1,745
	Loss on early debt repayment⁽²⁾		—			—		6,743			—			6,743
	Loss on extinguishment of LT debt⁽³⁾		—			—		15,194			—			16,579
	Purchase accounting adjustment⁽⁴⁾		631			—		—			631			—
	Acquisition-related expenses⁽⁴⁾		2,844			591		—			3,435			25
	Contingent consideration fair value adjustment⁽⁴⁾		(3,000	)		—		—			(3,000	)		—

	Adjusted EBITDA	$	50,954		$	51,464	$	31,289		$	195,540		$	99,387

	(1) Debt extension costs consist of $1.7 million associated with the amendment of our senior secured term loan and revolving credit facility in November 2016.
	(2) Loss on early payment of term loan for principal amount of $61.1 million in June 2017 related to IPO.
	(3) Consists of $15.2 million loss on extinguishment of long-term debt for principal payment of $151.0 and $1.4 million loss on a February 2017 extinguishment.
	(4) Amounts in FY18 related to acquisition of Penguin Computing in June 2018.


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

			August 31,			August 25,
				2018			2017
Assets
Current assets:
	Cash and cash equivalents		$	31,375		$	22,436
	Accounts receivable, net			237,212			183,303
	Inventories			221,419			127,135
	Prepaid expenses and other current assets			32,043			14,115
		Total current assets		522,049			346,989
Property and equipment, net				56,615			55,182
Other noncurrent assets				22,449			26,728
Intangible assets, net				26,255			5,107
Goodwill				45,394			46,022
		Total assets	$	672,762		$	480,028
Liabilities and Shareholders’ Equity
Current liabilities:
	Accounts payable		$	223,186		$	189,717
	Accrued liabilities			45,190			27,316
	Current portion of long-term debt			27,409			22,841
		Total current liabilities		295,785			239,874
Long-term debt				184,190			154,450
Other long-term liabilities				5,659			3,308
		Total liabilities	$	485,634		$	397,632
Shareholders’ equity:
	Ordinary shares			678			653
	Additional paid-in capital			250,191			232,162
	Accumulated other comprehensive loss			(175,995	)		(143,210	)
	Retained earnings			112,254			(7,209	)
		Total shareholders’ equity		187,128			82,396
		Total liabilities and shareholders’ equity	$	672,762		$	480,028


SMART Global Holdings, Inc.
and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)

						Three Months Ended									Fiscal Year Ended
						August 31, 2018			May 25, 2018			August 25, 2017			August 31, 2018			August 25, 2017
Cash flows from operating activities:
	Net income (loss)					$	29,718		$	31,946		$	(10,209	)	$	119,463		$	(7,795	)
	Adjustments to reconcile net income (loss) to net cash
		provided by (used in) operating activities:
			Depreciation and amortization				7,526			6,028			7,839			26,182			33,238
			Share-based compensation				3,958			3,297			1,831			10,557			5,364
			Provision for doubtful accounts receivable and sales returns				(73	)		(80	)		(82	)		(86	)		(51	)
			Deferred income tax benefit				(1,444	)		(422	)		(1,194	)		(2,820	)		(2,389	)
			(Gain) loss on disposal of property and equipment				461			(14	)		223			691			352
			Write off of long-term asset				—			250			—			250			—
			Extinguishment loss on long-term debt				—			—			15,194			—			16,580
			Loss on early debt payment				—			—			6,744			—			6,744
			Amortization of debt discounts and issuance costs				807			714			1,807			2,972			8,231
			Change in fair value of contingent consideration				(3,000	)		—			—			(3,000	)		—
			Changes in operating assets and liabilities:
				Accounts receivable			31,409			(45,799	)		(6,910	)		(55,297	)		(40,426	)
				Inventories			(14,495	)		(6,384	)		9,333			(42,435	)		(21,851	)
				Prepaid expenses and other assets			(5,241	)		(5,186	)		(799	)		(8,736	)		(58	)
				Accounts payable			(66,331	)		46,532			(22,407	)		17,548			(10,608	)
				Accrued expenses and other liabilities			7,321			(2,545	)		4,639			2,618			11,736
					Net cash provided by (used in) operating activities		(9,384	)		28,337			6,009			67,907			(933	)
Cash flows from investing activities:
	Capital expenditures and deposits on equipment						(7,487	)		(7,794	)		(7,499	)		(25,738	)		(18,678	)
	Proceeds from sale of property and equipment						204			35			184			305			651
	Acquisition of business, net of cash acquired						(42,316	)		—			—			(42,316	)		—
					Net cash used in investing activities		(49,599	)		(7,759	)		(7,315	)		(67,749	)		(18,027	)
Cash flows from financing activities:
	Long-term debt payment						(5,865	)		(6,093	)		(2,009	)		(24,267	)		(19,698	)
	Early payment of long-term debt						—			—			(61,127	)		—			(61,127	)
	Payment for extinguishment of long-term debt						—			—			(151,008	)		—			(151,946	)
	Proceeds from issuance of long-term debt, net of costs paid						59,365			—			156,962			59,365			156,962
	Fees paid for revolving line of credit refinancing						—			—			(3,167	)		(768	)		(3,167	)
	Issuance of ordinary shares from an initial public offering,
		net of underwriting commissions					—			—			63,507			—			63,507
	Payment of costs related to initial public offering						—			—			(949	)		(1,591	)		(1,149	)
	Proceeds from borrowings under revolving line of credit						134,500			69,000			119,500			412,000			457,750
	Repayments of borrowings under revolving line of credit						(166,789	)		(69,000	)		(119,500	)		(444,289	)		(457,750	)
	Proceeds from issuance of ordinary shares from share option exercises						1,324			1,993			58			7,494			406
	Tax payments due upon issuance of ordinary shares for release of
		restricted stock units					—			—			(763	)		—			(763	)
					Net cash provided by (used) in financing activities		22,535			(4,100	)		1,504			7,944			(16,975	)

	Effect of exchange rate changes on cash and cash equivalents						3,328			(3,799	)		(103	)		837			(263	)

					Net increase (decrease) in cash and cash equivalents		(33,120	)		12,679			95			8,939			(36,198	)

Cash and cash equivalents at beginning of period							64,495			51,816			22,341			22,436			58,634

Cash and cash equivalents at end of period						$	31,375		$	64,495		$	22,436		$	31,375		$	22,436

Investor Contact:
Suzanne Schmidt
Investor Relations for SMART Global Holdings, Inc.
(510) 360-8596
ir@smartm.com

SMART Global Holdings Reports Fourth Quarter and Full Year Fiscal 2018 Financial Results