Exhibit 99.1

Press Release

FOR IMMEDIATE RELEASE

 

SMART Global Holdings Reports

Fourth Quarter and Full Year Fiscal 2018 Financial Results

 

NEWARK, CA – October 4, 2018 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 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" table 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 or www.smartsscs.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 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

 

$

29,718

 

 

$

31,946

 

 

$

(10,209

)

 

$

119,463

 

 

$

(7,795

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings 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 per-share calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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: Amortization of intangible assets

 

 

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 (continued)

(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: