Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today released
results for the third quarter ended March 31, 2023 (“Q3 2023”).
Performance Highlights for Q3 2023:
- Revenue of $134.0 million (ZAR 2.4
billion)1 in Q3 2023, compared to $35.2 million (ZAR 549.8
million)1 for the quarter ended March 31, 2022 (“Q3 2022”), with
the 381% increase largely as a result of the inclusion and
continued outperformance of the Connect Group (including Kazang)
and momentum in the successful turnaround of the Consumer
Division.
- Net loss attributable to Lesaka of
$5.8 million (ZAR 104.4 million)1 in Q3 2023, compared to $3.3
million (ZAR 51.9 million)1 in Q3 2022. Operating income (loss)
before PPA amortization and net interest, a non-GAAP measure and
reconciled in Attachment B, was income of $1.9 million (ZAR 34.0
million)1 in Q3 2023, compared to a loss of $9.4 million (ZAR 146.8
million)1 in Q3 2022, and excludes amortization of acquired
intangible assets of $3.7 million (ZAR 67.3 million) in Q3 2023,
compared with $0.015 million (ZAR 0.3 million) in Q3 2022.
- Group Adjusted EBITDA of $7.6
million (ZAR 137.1 million)1, within guidance, and a significant
improvement compared to the Q3 2022 reported Group Adjusted EBITDA
loss of $7.2 million (ZAR 112.7 million)1.
- Continued operating improvement
demonstrated by further narrowing the operating loss to $1.9
million (ZAR 33.2 million)1 in Q3 2023, representing an 81%
improvement from an operating loss of $9.4 million (ZAR 147.1
million)1 reported for Q3 2022.
- Continued outperformance from the
Merchant Division, exceeding guidance and delivering Segment
Adjusted EBITDA of $8.3 million (ZAR 148.7 million)1 in Q3 2023.
Growth and momentum are expected to continue as the Merchant
Division continues to extend its footprint across South Africa’s
widely untapped informal market.
- Successful turnaround of the
Consumer Division from a significant loss-making position into a
positive Segment Adjusted EBITDA contributor to the Group. The
Consumer Division reported a second consecutive quarter of
profitability delivering Segment Adjusted EBITDA of $1.6 million
(ZAR 29.6 million)1 in Q3 2023, compared to a loss, before the Q3
2022 reorganization costs, of $0.8 million (ZAR 13.5 million) 1 in
Q3 2022. With the divisional turnaround largely complete, the
Consumer Division is focused on more targeted interventions to grow
the EPE account base and enhance its loan and insurance cross-sell
initiatives.
- Continued momentum in achieving
positive net cash generated by operating activities2 of $7.4
million (ZAR 133.0 million) in Q3 2023, compared to an outflow of
$5.2 million (ZAR 81.3 million) in Q3 2022.
- Guidance for fiscal 2023
re-affirmed.
Lesaka Group CEO Chris Meyer
said: “Another quarter of growth and profitability for
Lesaka driven by the transformational acquisition of the Connect
Group in our Merchant Division and the successful turnaround in our
Consumer Division, despite the persistently challenging economic
environment. Lesaka is well positioned to benefit from the
exponential secular demand for innovative fintech solutions that
are transforming South Africa’s highly cash-driven informal
economy.
In our Merchant Division we are committed to
enabling small merchants to compete and grow by providing access to
innovative financial technology and value-creating solutions. In
our Consumer Division our mission is to improve the lives of South
Africa’s grant beneficiaries by providing affordable access to
essential financial services.
The continued digitalization of South Africa’s
informal economy serves as a durable catalyst for our business but
ultimately our success is built on the success of our
customers.”
- Translated at an average exchange
rate of ZAR 17.93 to $1 for Q3 2023, ZAR 15.61 to $1 for Q3 2022
and ZAR 17.52 to $1 for Q2 2023. The ZAR weakened 15% against the
U.S. dollar during Q3 2023 when compared to Q3 2022 and 2% when
compared to the prior sequential quarter (Q2 2023).
- Cash generated by operating
activities before working capital and net interest paid.
Summary Financial Metrics
Three months ended
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Three months ended |
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Mar 31, 2023 |
|
Mar 31, 2022 |
|
Dec 31, 2022 |
|
Q3 ’23 vs Q3 ’22 |
|
Q3 ’23 vs Q2 ’23 |
|
Q3 ’23 vs Q3 ’22 |
|
Q3 ’23 vs Q2 ’23 |
(All figures in
USD ‘000s except per share data) |
USD ‘000’s (except per share
data) |
|
% change in USD |
|
% change in ZAR |
Revenue |
133,968 |
|
|
35,202 |
|
|
136,068 |
|
|
281 |
% |
|
(2 |
%) |
|
337 |
% |
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
loss |
(1,853 |
) |
|
(9,421 |
) |
|
(2,192 |
) |
|
(80 |
%) |
|
(15 |
%) |
|
(77 |
%) |
|
(13 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to Lesaka |
(5,820 |
) |
|
(3,327 |
) |
|
(6,649 |
) |
|
75 |
% |
|
(12 |
%) |
|
101 |
% |
|
(10 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss per
share ($) |
(0.09 |
) |
|
(0.06 |
) |
|
(0.11 |
) |
|
58 |
% |
|
(14 |
%) |
|
82 |
% |
|
(12 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group Adjusted
EBITDA (loss)(1) |
7,646 |
|
|
(7,219 |
) |
|
7,442 |
|
|
nm |
|
|
3 |
% |
|
nm |
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fundamental loss
per share ($)(1) |
(0.02 |
) |
|
(0.05 |
) |
|
(0.01 |
) |
|
(60 |
%) |
|
100 |
% |
|
(54 |
%) |
|
105 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully-diluted
weighted average shares (‘000’s) |
63,854 |
|
|
57,791 |
|
|
62,763 |
|
|
10 |
% |
|
2 |
% |
|
n/a |
|
n/a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average period USD
/ ZAR exchange rate |
17.93 |
|
|
15.61 |
|
|
17.52 |
|
|
15 |
% |
|
2 |
% |
|
n/a |
|
n/a |
Nine months ended
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Nine months ended |
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F2023 vs F2022 |
|
F2023 vs F2022 |
|
|
Mar 31, 2023 |
|
Mar 31, 2022 |
|
|
(All figures in
USD ‘000s except per share data) |
USD ‘000’s (except per share
data) |
% change in USD |
|
% change in ZAR |
Revenue |
394,822 |
|
|
100,820 |
|
|
292 |
% |
|
355 |
% |
|
|
|
|
|
|
|
|
|
GAAP operating
loss |
(8,716 |
) |
|
(30,073 |
) |
|
(71 |
%) |
|
(66 |
%) |
|
|
|
|
|
|
|
|
|
Net loss
attributable to Lesaka |
(23,165 |
) |
|
(28,727 |
) |
|
(19 |
%) |
|
(6 |
%) |
|
|
|
|
|
|
|
|
|
GAAP loss per
share ($) |
(0.37 |
) |
|
(0.50 |
) |
|
(27 |
%) |
|
(15 |
%) |
|
|
|
|
|
|
|
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|
Group Adjusted
EBITDA (loss)(1) |
19,287 |
|
|
(21,511 |
) |
|
nm |
|
|
nm |
|
|
|
|
|
|
|
|
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|
Fundamental loss
per share ($)(1) |
(0.11 |
) |
|
(0.40 |
) |
|
(73 |
%) |
|
(68 |
%) |
|
|
|
|
|
|
|
|
|
Fully-diluted
weighted average shares (‘000’s) |
62,913 |
|
|
57,322 |
|
|
10 |
% |
|
n/a |
|
|
|
|
|
|
|
|
|
Average period USD
/ ZAR exchange rate |
17.40 |
|
|
14.99 |
|
|
16 |
% |
|
n/a |
(1) Group Adjusted EBITDA (loss), fundamental
loss and fundamental loss per share are non-GAAP measures and are
described below under “Use of Non-GAAP Measures—Group Adjusted
EBITDA, and —Fundamental net loss and fundamental loss per share.”
See Attachment B for a reconciliation of GAAP net loss attributable
to Lesaka to Group Adjusted EBITDA loss, and GAAP net loss to
fundamental net loss and loss per share.
Factors Impacting Comparability of Q3
2023 and Q3 2022 Results
- Higher revenue:
Revenues increased 337% in ZAR, primarily due to the contribution
from the Connect Group (“Connect”) in our Merchant Division, and an
increase in account fees and insurance revenues in our Consumer
Division, which was partially offset by lower hardware sales
revenue in our POS hardware distribution business given the lumpy
nature of bulk sales.
- Lower operating
losses: Operating losses decreased, delivering an
improvement of 77% in ZAR compared with the Q3 2022 primarily due
to the contribution from Connect, and the implementation of various
cost reduction initiatives in the Consumer Division, which was
partially offset by an increase in acquisition related intangible
asset amortization.
- Higher net interest
charge: The net interest charge increased to ZAR 80.1
million from net interest received of ZAR 1.1 million due to the
additional borrowings incurred in order to fund the acquisition of
Connect as well as the debt acquired within the Connect Group
itself.
- Foreign exchange
movements: The U.S. dollar was 15% stronger against the
ZAR during Q3 2023 compared to Q3 2022, which negatively impacted
our U.S. dollar denominated reported results.
Results of Operations by Segment and
Liquidity
Our chief operating decision maker is our Group
Chief Executive Officer and he evaluates segment performance based
on segment earnings before interest, tax, depreciation and
amortization (“EBITDA”), adjusted for items mentioned in the next
sentence (“Segment Adjusted EBITDA”). We do not allocate once-off
items, stock-based compensation charges, certain lease charges,
depreciation and amortization, impairment of goodwill or other
intangible assets, other items (including gains or losses on
disposal of investments, fair value adjustments to equity
securities, fair value adjustments to currency options), interest
income, interest expense, income tax expense or loss from
equity-accounted investments to our reportable segments. See
Attachment B for a reconciliation of GAAP net income before tax to
Segment Adjusted EBITDA.
Merchant
Merchant Division revenue was $118.1 million in
Q3 2023, up 622% compared with Q3 2022 on a constant currency
basis. Segment revenue increased due to the contribution from
Connect, which was partially offset by lower hardware sales revenue
given the lumpy nature of bulk sales. The increase in EBITDA is
primarily due to the inclusion of Connect, which was partially
offset by lower hardware sales. Our EBITDA (loss) margin
(calculated as EBITDA (loss) divided by revenue) for Q3 2023 and
2022 was 7.0% and 7.6%, respectively.
Consumer
Consumer Division revenue was $15.9 million in
Q3 2023, 3% lower compared with Q3 2022 due to currency impacts. On
a constant currency basis Segment revenue increased 11% compared to
Q3 2022 and 5% compared to Q2 2023. Segment revenue increased
primarily due to higher insurance revenues, higher revenue from
account holder fees given the increase in number of accounts and
modest lending revenue growth. We embarked on a retrenchment
process during Q3 2022 and recorded an expense of $5.9 million
which is included in the EBITDA loss for that period. The cost
reduction initiatives we initiated in fiscal 2022 delivered a
significant reduction in the Consumer Division’s operating expenses
which resulted in a positive Segment Adjusted EBITDA contribution
compared with a Segment Adjusted EBITDA loss in Q3 2022.
Specifically, Q2 2022 included expenses associated with
discontinuing a mobile distribution network, and since then we have
streamlined our branch network through reductions in certain
expenses including employee-related costs, security, guarding and
premises costs. Our EBITDA margin for Q3 2023 and 2022 was 10.4%
and (40.9%), respectively.
Group costs
Our group costs for fiscal 2023 increased
compared with the prior period due to higher employee costs and an
increase in directors’ and officers’ insurance premiums. Group
costs primarily include employee related costs in relation to
employees specifically hired for group roles and costs related
directly to managing the US-listed entity; expenditures related to
compliance with the Sarbanes-Oxley Act of 2002; non-employee
directors’ fees; legal fees; group and US-listed related audit
fees; and directors’ and officers’ insurance premiums.
Cash flow and liquidity
As of March 31, 2023, our cash and cash
equivalents were $49.4 million and comprised of U.S.
dollar-denominated balances of $7.4 million, ZAR-denominated
balances of ZAR 713.4 million ($40.1 million), and other currency
deposits, primarily Botswana pula, of $1.9 million, with all
amounts translated at exchange rates applicable as of March 31,
2023. The increase in our unrestricted cash balances from June 30,
2022, was primarily due to the utilization of our available
borrowings and a positive contribution from Connect, which was
partially offset by the utilization of cash reserves to fund
certain scheduled repayments of borrowings, purchase ATMs and safe
assets, and to make an investment in working capital in our
Consumer and Merchant operations.
Outlook for FY 2023
While we report our financial results in USD, we measure our
operating performance in ZAR, and as such we provide our guidance
accordingly.
For the full fiscal year 2023, we are
reaffirming the total Group guidance provided on February 7, 2023
(except as otherwise noted below). We expect the following for the
year ended June 2023:
- Revenue between ZAR 8.7 billion and
ZAR 9.3 billion.
- Merchant Segment Adjusted EBITDA of
between ZAR 580 million and ZAR 595 million (previously between ZAR
550 million and ZAR 565 million).
- Consumer Segment Adjusted EBITDA of
between ZAR 65 million and ZAR 80 million (previously between ZAR
95 million and ZAR 110 million).
- Group costs normalized expected to
be between (ZAR 165 million) to (ZAR 150 million).
- Group Adjusted EBITDA of between
ZAR 480 million and ZAR 525 million.
Management has provided its outlook regarding
Merchant Segment Adjusted EBITDA, Consumer Segment Adjusted EBITDA,
Group costs normalized and Group Adjusted EBITDA, each which is a
non-GAAP financial measure and excludes certain charges. Management
has not reconciled these non-GAAP financial measures to the
corresponding GAAP financial measure because guidance for the
various reconciling items is not provided. Management is unable to
provide guidance for these reconciling items because they cannot
determine their probable significance, as certain items are outside
of the company's control and cannot be reasonably predicted since
these items could vary significantly from period to period.
Accordingly, reconciliations to the corresponding GAAP financial
measures is not available without unreasonable effort.
Earnings Presentation for Q3 2023
Results
Our earnings presentation for Q3 2023 will be posted to the
Investor Relations page of our website prior to our earnings
call.
Webcast and Conference Call
Lesaka will host a webcast and conference call to review results
on May 10, 2023, at 8:00 a.m. Eastern Time which is 2:00 p.m. South
Africa Standard Time (“SAST”). A replay of the results presentation
webcast will be available on the Lesaka investor relations website
following the conclusion of the live event.
Webcast Details
- The results webcast can be accessed by using the following
link: https://bit.ly/40ZGkQ3
- Webcast ID: 893 3353 7703
- Participants using the webcast will be able to ask questions by
raising their hand and then asking the question “live.”
Conference Call Dial-in:
- US Toll-Free: +1 386 347
5053 or +1 507 473 4847
- South Africa Toll-Free + 27 87 551
7702
- Participants using the conference
call dial-in will be unable to ask questions.
Use of Non-GAAP Measures
U.S. securities laws require that when we
publish any non-GAAP measures, we disclose the reason for using
these non-GAAP measures and provide reconciliations to the most
directly comparable GAAP measures. The presentation of EBITDA,
Group Adjusted EBITDA, Operating income (loss) before PPA
amortization and net interest, fundamental net (loss) income and
fundamental (loss) earnings per share and headline (loss) earnings
per share are non-GAAP measures.
Group Adjusted EBITDA
Group Adjusted EBITDA is earnings before
interest, tax, depreciation and amortization (“EBITDA”), as well as
adjustments for non-operational transactions (including disposal of
equity-accounted investments and unrealized loss on fair value
adjustments to currency options), stock-based compensation charges,
lease adjustments and once-off items. Lease adjustments reflect
lease charges and once-off items represents non-recurring expense
items, including costs related to acquisitions and transactions
consummated or ultimately not pursued.
Operating income (loss) before PPA amortization and net
interest
Operating income (loss) before PPA amortization
and net interest is operating loss adjusted for the amortization of
acquired intangible assets.
Fundamental net loss and fundamental loss per
share
Fundamental net loss and loss per share is GAAP
net loss and loss per share adjusted for the amortization of
acquisition-related intangible assets (net of deferred taxes),
stock-based compensation charges, and unusual non-recurring items,
including costs related to acquisitions and transactions
consummated or ultimately not pursued.
Fundamental net loss and loss per share for
fiscal 2023 also includes change in tax rate, a net gain on
disposal of equity-accounted investments, impairment losses related
to an equity-accounted investment and an adjustment for an
unrealized currency loss related to our non-core business which we
are in the process of winding down. Fundamental net loss and loss
per share for fiscal 2022 also includes adjustments for a gain
related to fair value adjustments in respect of currency options,
reorganization costs incurred, a gain on disposal of equity
securities and a loss on disposal of equity-accounted
investments.
Management believes that the operating income
before depreciation and amortization, Group Adjusted EBITDA,
fundamental net (loss) income and (loss) earnings per share metrics
enhance its own evaluation, as well as an investor’s understanding,
of our financial performance. Attachment B presents the
reconciliation between GAAP net loss attributable to Lesaka to
Group Adjusted EBITDA; and GAAP net (loss) income and (loss)
earnings per share and fundamental net (loss) income and (loss)
earnings per share.
Headline (loss) earnings per share
(“H(L)EPS”)
The inclusion of H(L)EPS in this press release
is a requirement of our listing on the JSE. H(L)EPS basic and
diluted is calculated using net (loss) income which has been
determined based on GAAP. Accordingly, this may differ to the
headline (loss) earnings per share calculation of other companies
listed on the JSE as these companies may report their financial
results under a different financial reporting framework, including
but not limited to, International Financial Reporting
Standards.
H(L)EPS basic and diluted is calculated as GAAP
net (loss) income adjusted for the impairment losses related to our
equity-accounted investments and (profit) loss on sale of property,
plant and equipment. Attachment C presents the reconciliation
between our net (loss) income used to calculate (loss) earnings per
share basic and diluted and H(L)EPS basic and diluted and the
calculation of the denominator for headline diluted (loss) earnings
per share.
Change in accountants for fiscal 2024 as
a result of South African mandatory audit firm
rotation
KPMG Inc. (“KPMG”) in South
Africa has been engaged as our certifying accountant beginning July
1, 2023, the first day of our 2024 fiscal year in compliance with
South African mandatory audit firm rotation rules. Deloitte &
Touche in South Africa (“Deloitte”), our current
independent registered public accounting firm, will be dismissed
effective upon the completion of Deloitte's audit of our
consolidated financial statements for the year ended June 30, 2023.
Our Audit Committee embarked on a competitive bidding process to
identify, evaluate and appoint a new independent accountant as its
certifying accountant in South Africa to audit our consolidated
annual financial statements for the year ended June 30, 2024.
Deloitte and KPMG are both registered with the Public Company
Accounting Oversight Board in the US, and both are also registered
with the Independent Regulatory Board for Auditors
(“IRBA”), the South African auditor regulator. As
prescribed by the IRBA, public interest entities with auditors
registered with the IRBA are required to comply with mandatory
audit firm rotation requirements which limits the period for which
a registered auditor can serve as a company’s auditor to no more
than 10 years. We are therefore required to comply with these
mandatory audit firm rotation rules which necessitates a change to
our certifying accountants for the year ended June 30, 2024.
About Lesaka (www.lesakatech.com)
Lesaka Technologies, (Lesaka™) is a South
African Fintech company that utilizes its proprietary banking and
payment technologies to deliver superior financial services
solutions to merchants (B2B) and consumers (B2C) in Southern
Africa. Lesaka’s mission is to drive true financial inclusion for
both merchant and consumer markets through offering affordable
financial services to previously underserved sectors of the
economy. Lesaka offers cash management solutions, growth capital,
card acquiring, bill payment technologies and value-added services
to formal and informal retail merchants as well as banking,
lending, and insurance solutions to consumers across Southern
Africa. The Lesaka journey originally began as “Net1” in 1997 and
later rebranded to Lesaka (2022), with the acquisition of Connect.
As Lesaka, the business continues to grow its systems and
capabilities to deliver meaningful fintech-enabled, innovative
solutions for South Africa’s merchant and consumer markets.
Lesaka has a primary listing on NASDAQ
(NasdaqGS: LSAK) and a secondary listing on the Johannesburg Stock
Exchange (JSE: LSK). Visit www.lesakatech.com for additional
information about Lesaka Technologies (Lesaka ™).
Forward-Looking Statements
This press release contains certain statements
that may be considered forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and such statements are subject to the safe harbor created by those
sections and the Private Securities Litigation Reform Act of 1995,
as amended. Such statements may be identified by their use of terms
or phrases such as “expects,” “estimates,” “projects,” “believes,”
“anticipates,” “plans,” “could,” “would,” “may,” “will,” “intends,”
“outlook,” “focus,” “seek,” “potential,” “mission,” “continue,”
“goal,” “target,” “objective,” derivations thereof, and similar
terms and phrases. Forward-looking statements are based upon the
current beliefs and expectations of our management and are
inherently subject to risks and uncertainties, some of which cannot
be predicted or quantified, which could cause future events and
actual results to differ materially from those set forth in,
contemplated by, or underlying the forward-looking statements. In
this press release, statements relating to future financial results
and future financing and business opportunities are forward-looking
statements. Additional information concerning factors that could
cause actual events or results to differ materially from those in
any forward-looking statement is contained in the company's Form
10-K for the fiscal year ended June 30, 2022, as filed with the
SEC, as well as other documents we have filed or will file with the
SEC. We assume no obligation to update the information in this
press release, to revise any forward-looking statements or to
update the reasons actual results could differ materially from
those anticipated in forward-looking statements.
Investor Relations Contact:Phillipe
WelthagenEmail: phillipe.welthagen@lesakatech.comMobile: +27 84 512
5393
FNK IR:Rob Fink / Matt Chesler, CFAEmail:
lsak@fnkir.com
Media Relations Contact:Janine Bester
GertzenEmail: Janine@thenielsennetwork.com
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LESAKA TECHNOLOGIES, INC. |
Unaudited Condensed Consolidated Statements of
Operations |
|
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|
Unaudited |
|
Unaudited |
|
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Three months ended |
|
Nine months ended |
|
|
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|
March 31, |
|
March 31, |
|
|
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|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
REVENUE |
|
$ |
133,968 |
|
|
$ |
35,202 |
|
|
$ |
394,822 |
|
|
$ |
100,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold, IT processing, servicing and support |
|
|
105,299 |
|
|
|
23,008 |
|
|
|
314,651 |
|
|
|
67,795 |
|
|
Selling, general
and administration |
|
|
24,547 |
|
|
|
15,142 |
|
|
|
70,995 |
|
|
|
53,330 |
|
|
Depreciation and
amortization |
|
|
5,975 |
|
|
|
463 |
|
|
|
17,892 |
|
|
|
2,084 |
|
|
Reorganization
costs(1) |
|
|
- |
|
|
|
5,894 |
|
|
|
- |
|
|
|
5,894 |
|
|
Transaction costs
related to Connect Group acquisition |
|
|
- |
|
|
|
116 |
|
|
|
- |
|
|
|
1,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
LOSS |
|
|
(1,853 |
) |
|
|
(9,421 |
) |
|
|
(8,716 |
) |
|
|
(30,073 |
) |
GAIN RELATED TO
FAIR VALUE ADJUSTMENT TO CURRENCY OPTIONS |
|
|
- |
|
|
|
6,120 |
|
|
|
- |
|
|
|
3,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS ON DISPOSAL
OF EQUITY-ACCOUNTED INVESTMENT |
|
|
329 |
|
|
|
346 |
|
|
|
193 |
|
|
|
346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAIN ON DISPOSAL
OF EQUITY SECURITIES |
|
|
- |
|
|
|
(720 |
) |
|
|
- |
|
|
|
720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
INCOME |
|
|
469 |
|
|
|
761 |
|
|
|
1,269 |
|
|
|
1,463 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE |
|
|
4,984 |
|
|
|
691 |
|
|
|
13,408 |
|
|
|
2,272 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAX (BENEFIT) EXPENSE |
|
|
(6,697 |
) |
|
|
(2,857 |
) |
|
|
(21,048 |
) |
|
|
(26,817 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX
(BENEFIT) EXPENSE |
|
|
(860 |
) |
|
|
470 |
|
|
|
(465 |
) |
|
|
754 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS BEFORE
EARNINGS (LOSS) FROM EQUITY-ACCOUNTED INVESTMENTS |
|
|
(5,837 |
) |
|
|
(3,327 |
) |
|
|
(20,583 |
) |
|
|
(27,571 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS)
FROM EQUITY-ACCOUNTED INVESTMENTS |
|
|
17 |
|
|
|
- |
|
|
|
(2,582 |
) |
|
|
(1,156 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
ATTRIBUTABLE TO LESAKA |
|
|
(5,820 |
) |
|
|
(3,327 |
) |
|
|
(23,165 |
) |
|
|
(28,727 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
per share, in United States dollars: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss
attributable to Lesaka shareholders |
|
$ |
(0.09 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.50 |
) |
Diluted loss
attributable to Lesaka shareholders |
|
$ |
(0.09 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.50 |
) |
(1)
Reorganization costs have been increased by $42,000 and selling,
general and administration has been decreased by $42,000 during the
three and nine months ended March 31, 2022, to adjust for a
misallocation between the two captions. |
|
LESAKA TECHNOLOGIES, INC. |
Unaudited Condensed Consolidated Balance
Sheets |
|
|
|
|
|
|
Unaudited |
|
(A) |
|
|
|
|
|
|
March 31, |
|
June 30, |
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
(In thousands, except share data) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
CURRENT
ASSETS |
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
49,423 |
|
|
$ |
43,940 |
|
|
Restricted
cash |
|
37,849 |
|
|
|
60,860 |
|
|
Accounts
receivable, net of allowance of - March: $295; June: $509 and other
receivables |
|
34,325 |
|
|
|
28,898 |
|
|
Finance loans
receivable, net of allowance of - March: $3,406; June: $1,691 |
|
39,282 |
|
|
|
33,892 |
|
|
Inventory |
|
33,100 |
|
|
|
34,226 |
|
|
|
Total current
assets before settlement assets |
|
193,979 |
|
|
|
201,816 |
|
|
|
|
Settlement
assets |
|
15,852 |
|
|
|
15,916 |
|
|
|
|
|
Total current assets |
|
209,831 |
|
|
|
217,732 |
|
PROPERTY, PLANT
AND EQUIPMENT, net of accumulated depreciation of - March: $37,220;
June: $35,249 |
|
28,589 |
|
|
|
24,599 |
|
OPERATING LEASE
RIGHT-OF-USE |
|
5,400 |
|
|
|
7,146 |
|
EQUITY-ACCOUNTED
INVESTMENTS |
|
4,695 |
|
|
|
5,861 |
|
GOODWILL |
|
148,971 |
|
|
|
162,657 |
|
INTANGIBLE ASSETS,
net of accumulated amortization of - March: $28,142; June:
$16,390 |
|
132,350 |
|
|
|
156,702 |
|
DEFERRED INCOME
TAXES |
|
8,672 |
|
|
|
3,776 |
|
OTHER LONG-TERM
ASSETS, including reinsurance assets |
|
78,069 |
|
|
|
78,092 |
|
TOTAL
ASSETS |
|
616,577 |
|
|
|
656,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
|
|
Short-term credit
facilities for ATM funding |
|
37,731 |
|
|
|
51,338 |
|
|
Short-term credit
facilities |
|
16,930 |
|
|
|
14,880 |
|
|
Accounts
payable |
|
22,780 |
|
|
|
18,572 |
|
|
Other
payables |
|
31,501 |
|
|
|
34,362 |
|
|
Operating lease
liability - current |
|
1,779 |
|
|
|
2,498 |
|
|
Current portion of
long-term borrowings |
|
3,515 |
|
|
|
6,804 |
|
|
Income taxes
payable |
|
3,468 |
|
|
|
2,140 |
|
|
|
Total current
liabilities before settlement obligations |
|
117,704 |
|
|
|
130,594 |
|
|
|
|
Settlement
obligations |
|
15,054 |
|
|
|
15,276 |
|
|
|
|
|
Total current
liabilities |
|
132,758 |
|
|
|
145,870 |
|
DEFERRED INCOME
TAXES |
|
49,992 |
|
|
|
54,211 |
|
OPERATING LEASE
LIABILITY - LONG TERM |
|
3,785 |
|
|
|
4,827 |
|
LONG-TERM
BORROWINGS |
|
147,198 |
|
|
|
134,842 |
|
OTHER LONG-TERM
LIABILITIES, including insurance policy liabilities |
|
2,450 |
|
|
|
2,466 |
|
TOTAL
LIABILITIES |
|
336,183 |
|
|
|
342,216 |
|
REDEEMABLE COMMON
STOCK |
|
79,429 |
|
|
|
79,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
LESAKA
EQUITY: |
|
|
|
|
|
COMMON STOCK |
|
|
|
|
|
|
Authorized:
200,000,000 with $0.001 par value; |
|
|
|
|
|
|
Issued and
outstanding shares, net of treasury: March: 63,743,900; June:
62,324,321 |
|
83 |
|
|
|
83 |
|
PREFERRED
STOCK |
|
|
|
|
|
|
Authorized shares:
50,000,000 with $0.001 par value; |
|
|
|
|
|
|
Issued and
outstanding shares, net of treasury: March: -; June: - |
|
- |
|
|
|
- |
|
ADDITIONAL
PAID-IN-CAPITAL |
|
334,286 |
|
|
|
327,891 |
|
TREASURY SHARES,
AT COST: March: 24,994,799; June: 24,891,292 |
|
(287,422 |
) |
|
|
(286,951 |
) |
ACCUMULATED OTHER
COMPREHENSIVE LOSS |
|
(185,554 |
) |
|
|
(168,840 |
) |
RETAINED
EARNINGS |
|
339,572 |
|
|
|
362,737 |
|
TOTAL LESAKA
EQUITY |
|
200,965 |
|
|
|
234,920 |
|
NON-CONTROLLING
INTEREST |
|
- |
|
|
|
- |
|
TOTAL
EQUITY |
|
200,965 |
|
|
|
234,920 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES, REDEEMABLE COMMON STOCK AND SHAREHOLDERS’
EQUITY |
$ |
616,577 |
|
|
$ |
656,565 |
|
(A) Derived from audited consolidated financial statements.
|
LESAKA TECHNOLOGIES, INC. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
|
|
|
Unaudited |
|
Unaudited |
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
March 31, |
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(5,820 |
) |
|
$ |
(3,327 |
) |
|
$ |
(23,165 |
) |
|
$ |
(28,727 |
) |
|
Depreciation and
amortization |
|
5,975 |
|
|
|
463 |
|
|
|
17,892 |
|
|
|
2,084 |
|
|
Movement in
allowance for doubtful accounts receivable |
|
1,638 |
|
|
|
91 |
|
|
|
4,167 |
|
|
|
1,217 |
|
|
Movement in
interest payable |
|
1,827 |
|
|
|
(97 |
) |
|
|
3,289 |
|
|
|
(199 |
) |
|
Unrealized loss
related to fair value adjustment to currency options |
|
- |
|
|
|
(2,391 |
) |
|
|
- |
|
|
|
38 |
|
|
Fair value
adjustment related to financial liabilities |
|
(21 |
) |
|
|
(152 |
) |
|
|
123 |
|
|
|
(476 |
) |
|
Gain on disposal
of equity securities |
|
- |
|
|
|
(720 |
) |
|
|
- |
|
|
|
(720 |
) |
|
Loss (Gain) on
disposal of equity-accounted investments |
|
329 |
|
|
|
346 |
|
|
|
193 |
|
|
|
346 |
|
|
(Earnings) Loss
from equity-accounted investments |
|
(17 |
) |
|
|
- |
|
|
|
2,582 |
|
|
|
1,156 |
|
|
Profit on disposal
of property, plant and equipment |
|
(145 |
) |
|
|
(1,104 |
) |
|
|
(466 |
) |
|
|
(2,400 |
) |
|
Facility fee
amortized |
|
198 |
|
|
|
- |
|
|
|
643 |
|
|
|
- |
|
|
Stock-based
compensation charge |
|
1,644 |
|
|
|
614 |
|
|
|
5,955 |
|
|
|
1,711 |
|
|
Dividends received
from equity accounted investments |
|
- |
|
|
|
- |
|
|
|
21 |
|
|
|
137 |
|
|
Increase in
accounts receivable |
|
(7,620 |
) |
|
|
(1,956 |
) |
|
|
(8,601 |
) |
|
|
(790 |
) |
|
(Increase)
Decrease in finance loans receivable |
|
(2,507 |
) |
|
|
1,269 |
|
|
|
(11,318 |
) |
|
|
(2,176 |
) |
|
Increase in
inventory |
|
(297 |
) |
|
|
(181 |
) |
|
|
(1,769 |
) |
|
|
(27 |
) |
|
(Decrease)
Increase in accounts payable and other payables |
|
1,030 |
|
|
|
(1,913 |
) |
|
|
5,421 |
|
|
|
(1,668 |
) |
|
Increase in taxes
payable |
|
1,349 |
|
|
|
395 |
|
|
|
1,478 |
|
|
|
444 |
|
|
Decrease in
deferred taxes |
|
(2,670 |
) |
|
|
(112 |
) |
|
|
(5,792 |
) |
|
|
(458 |
) |
|
|
Net cash used in operating activities |
|
(5,107 |
) |
|
|
(8,775 |
) |
|
|
(9,347 |
) |
|
|
(30,508 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures |
|
(4,717 |
) |
|
|
(834 |
) |
|
|
(13,210 |
) |
|
|
(1,721 |
) |
|
Proceeds from
disposal of property, plant and equipment |
|
394 |
|
|
|
1,538 |
|
|
|
1,156 |
|
|
|
3,529 |
|
|
Proceeds from
disposal of equity-accounted investment |
|
254 |
|
|
|
819 |
|
|
|
645 |
|
|
|
819 |
|
|
Acquisition of
intangible assets |
|
(125 |
) |
|
|
- |
|
|
|
(245 |
) |
|
|
- |
|
|
Loan to
equity-accounted investment |
|
- |
|
|
|
- |
|
|
|
(112 |
) |
|
|
- |
|
|
Repayment of loans
by equity-accounted investments |
|
- |
|
|
|
- |
|
|
|
112 |
|
|
|
- |
|
|
Proceeds from
disposal of equity securities |
|
- |
|
|
|
720 |
|
|
|
- |
|
|
|
720 |
|
|
Proceeds from
disposal of equity-accounted investment - Bank Frick |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
7,500 |
|
|
Net change in
settlement assets |
|
11,043 |
|
|
|
5 |
|
|
|
(972 |
) |
|
|
102 |
|
|
|
Net cash provided
(used in) by investing activities |
|
6,849 |
|
|
|
2,248 |
|
|
|
(12,626 |
) |
|
|
10,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from bank
overdraft |
|
128,196 |
|
|
|
95,048 |
|
|
|
441,488 |
|
|
|
406,398 |
|
|
Repayment of bank
overdraft |
|
(135,986 |
) |
|
|
(100,832 |
) |
|
|
(448,288 |
) |
|
|
(372,508 |
) |
|
Long-term
borrowings utilized |
|
12,868 |
|
|
|
- |
|
|
|
23,010 |
|
|
|
- |
|
|
Repayment of
long-term borrowings |
|
(2,024 |
) |
|
|
- |
|
|
|
(5,292 |
) |
|
|
- |
|
|
Guarantee fee |
|
- |
|
|
|
- |
|
|
|
(100 |
) |
|
|
- |
|
|
Proceeds from
issue of shares |
|
114 |
|
|
|
20 |
|
|
|
447 |
|
|
|
759 |
|
|
Acquisition of
treasury stock |
|
(178 |
) |
|
|
- |
|
|
|
(471 |
) |
|
|
|
|
Net change in
settlement obligations |
|
(10,761 |
) |
|
|
(5 |
) |
|
|
807 |
|
|
|
(102 |
) |
|
|
Net cash (used in)
provided by financing activities |
|
(7,771 |
) |
|
|
(5,769 |
) |
|
|
11,601 |
|
|
|
34,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash |
|
(3,475 |
) |
|
|
12,200 |
|
|
|
(7,156 |
) |
|
|
1,295 |
|
Net
(decrease) increase in cash, cash equivalents and restricted
cash |
|
(9,504 |
) |
|
|
(96 |
) |
|
|
(17,528 |
) |
|
|
16,283 |
|
Cash, cash
equivalents and restricted cash – beginning of period |
|
96,776 |
|
|
|
240,144 |
|
|
|
104,800 |
|
|
|
223,765 |
|
Cash, cash
equivalents and restricted cash – end of period |
$ |
87,272 |
|
|
$ |
240,048 |
|
|
$ |
87,272 |
|
|
$ |
240,048 |
|
Lesaka Technologies, Inc.
Attachment A
Operating segment revenue, operating
(loss) income and operating (loss) margin:
Three months ended March 31, 2023, and
2022 and December 31, 2022
|
|
|
|
|
|
|
|
Three months ended |
Change - actual |
Change – constant exchange
rate(1) |
|
|
|
|
|
|
|
|
Mar 31, 2023 |
|
Mar 31, 2022 |
|
Dec 31, 2022 |
Q3 ’23vsQ3 ’22 |
Q3 ’23vsQ2 ’23 |
Q3 ’23vsQ3 ’22 |
Q3 ’23vsQ2 ’23 |
Key segmental data, in ’000, except margins |
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchant |
|
$ |
118,092 |
|
|
$ |
18,785 |
|
|
$ |
120,634 |
|
529 |
% |
(2 |
%) |
622 |
% |
0 |
% |
|
Consumer |
|
|
15,876 |
|
|
|
16,429 |
|
|
|
15,434 |
|
(3 |
%) |
3 |
% |
11 |
% |
5 |
% |
|
|
|
Subtotal:
Operating segments |
|
|
133,968 |
|
|
|
35,214 |
|
|
|
136,068 |
|
280 |
% |
(2 |
%) |
337 |
% |
1 |
% |
|
|
|
Intersegment
eliminations |
|
|
- |
|
|
|
(12 |
) |
|
|
- |
|
nm |
|
nm |
|
nm |
|
nm |
|
|
|
|
|
Consolidated revenue |
|
$ |
133,968 |
|
|
$ |
35,202 |
|
|
$ |
136,068 |
|
281 |
% |
(2 |
%) |
337 |
% |
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchant |
|
$ |
8,290 |
|
|
$ |
1,427 |
|
|
$ |
9,120 |
|
481 |
% |
(9 |
%) |
567 |
% |
(7 |
%) |
|
Consumer |
|
|
1,649 |
|
|
|
(6,717 |
) |
|
|
578 |
|
nm |
|
185 |
% |
nm |
|
192 |
% |
|
|
Total Segment
EBITDA |
|
|
9,939 |
|
|
|
(5,290 |
) |
|
|
9,698 |
|
nm |
|
2 |
% |
nm |
|
5 |
% |
|
|
Group costs |
|
|
(2,293 |
) |
|
|
(1,929 |
) |
|
|
(2,256 |
) |
19 |
% |
2 |
% |
37 |
% |
4 |
% |
|
|
|
Group Adjusted
EBITDA |
|
|
7,646 |
|
|
|
(7,219 |
) |
|
|
7,442 |
|
nm |
|
3 |
% |
nm |
|
5 |
% |
|
|
|
|
Once-off
items |
|
|
(1,184 |
) |
|
|
(235 |
) |
|
|
(119 |
) |
404 |
% |
895 |
% |
479 |
% |
919 |
% |
|
|
|
|
Stock-based
compensation charges |
|
|
(1,644 |
) |
|
|
(614 |
) |
|
|
(2,849 |
) |
168 |
% |
(42 |
%) |
208 |
% |
(41 |
%) |
|
|
|
|
Lease
adjustments |
|
|
(696 |
) |
|
|
(890 |
) |
|
|
(747 |
) |
(22 |
%) |
(7 |
%) |
(10 |
%) |
(5 |
%) |
|
|
|
|
Depreciation and
amortization(2) |
|
|
(5,975 |
) |
|
|
(463 |
) |
|
|
(5,919 |
) |
1,190 |
% |
1 |
% |
1,382 |
% |
3 |
% |
|
|
|
|
|
Consolidated operating loss |
|
$ |
(1,853 |
) |
|
$ |
(9,421 |
) |
|
$ |
(2,192 |
) |
(80 |
%) |
(15 |
%) |
(77 |
%) |
(13 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Adjusted EBITDA (loss) margin (%) |
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
|
7.0 |
% |
|
|
7.6 |
% |
|
|
7.6 |
% |
|
|
|
|
|
Merchant |
|
|
10.4 |
% |
|
|
(40.9 |
%) |
|
|
3.7 |
% |
|
|
|
|
|
|
Group
Adjusted EBITDA (loss) margin |
|
|
5.7 |
% |
|
|
(20.5 |
%) |
|
|
5.5 |
% |
|
|
|
|
(1) – This information shows
what the change in these items would have been if the USD/ ZAR
exchange rate that prevailed during Q3 2023 also prevailed during
Q3 2022 and Q2 2023.(2) – Depreciation and
amortization for the three months ended March 31, 2023 and 2022,
and December 31, 2022, includes amortization of acquiring
intangible assets of $3,789; $15 and $3,842, respectively.
Nine months ended March 31, 2023 and
2022
|
|
|
|
|
|
|
|
Nine months ended
March 31, |
|
Change - actual |
Change – constant exchange
rate(1) |
|
|
|
|
|
|
|
|
|
F2023
vsF2022 |
F2023
vsF2022 |
Key segmental data, in ’000, except margins |
|
2023 |
|
|
2022 |
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
Merchant |
|
$ |
348,508 |
|
|
$ |
50,600 |
|
|
589 |
% |
700 |
% |
|
Consumer |
|
|
46,314 |
|
|
|
50,232 |
|
|
(8 |
%) |
7 |
% |
|
|
|
Subtotal:
Operating segments |
|
|
394,822 |
|
|
|
100,832 |
|
|
292 |
% |
355 |
% |
|
|
|
Intersegment
eliminations |
|
|
- |
|
|
|
(12 |
) |
|
nm |
|
nm |
|
|
|
|
|
Consolidated revenue |
|
$ |
394,822 |
|
|
$ |
100,820 |
|
|
292 |
% |
355 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
Merchant |
|
$ |
25,303 |
|
|
$ |
4,506 |
|
|
462 |
% |
552 |
% |
|
Consumer |
|
|
833 |
|
|
|
(20,439 |
) |
|
nm |
|
nm |
|
|
|
Total Segment
EBITDA |
|
|
26,136 |
|
|
|
(15,933 |
) |
|
nm |
|
nm |
|
|
|
Group costs |
|
|
(6,849 |
) |
|
|
(5,578 |
) |
|
23 |
% |
43 |
% |
|
|
|
Group Adjusted
EBITDA |
|
|
19,287 |
|
|
|
(21,511 |
) |
|
nm |
|
nm |
|
|
|
|
|
Once-off
items |
|
|
(1,901 |
) |
|
|
(2,120 |
) |
|
(10 |
%) |
4 |
% |
|
|
|
|
Stock-based
compensation charges |
|
|
(5,955 |
) |
|
|
(1,711 |
) |
|
248 |
% |
304 |
% |
|
|
|
|
Lease
adjustments |
|
|
(2,255 |
) |
|
|
(2,647 |
) |
|
(15 |
%) |
(1 |
%) |
|
|
|
|
Depreciation and
amortization(2) |
|
|
(17,892 |
) |
|
|
(2,084 |
) |
|
759 |
% |
897 |
% |
|
|
|
|
|
Consolidated operating loss |
|
$ |
(8,716 |
) |
|
$ |
(30,073 |
) |
|
(71 |
%) |
(66 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Adjusted EBITDA (loss) margin (%) |
|
|
|
|
|
|
|
|
|
|
Merchant |
|
|
7.3 |
% |
|
|
8.9 |
% |
|
|
|
|
Consumer |
|
|
1.8 |
% |
|
|
(40.7 |
%) |
|
|
|
|
|
Group
Adjusted EBITDA (loss) margin |
|
|
4.9 |
% |
|
|
(21.3 |
%) |
|
|
|
(1) – This information shows
what the change in these items would have been if the USD/ ZAR
exchange rate that prevailed during the year to date fiscal 2023
also prevailed during the year to date fiscal
2022.(2) – Depreciation and amortization for the
nine months ended March 31, 2023 and 2022, includes amortization of
acquiring intangible assets of $11,559 and $126, respectively.
Earnings (Loss) from equity-accounted
investments:
The table below presents the relative earnings
(loss) from our equity-accounted investments:
|
|
Three months ended March 31, |
|
|
Nine months ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
%change |
|
|
2023 |
|
|
|
2022 |
|
|
%change |
Finbond |
$ |
- |
|
$ |
- |
|
nm |
|
|
(2,631 |
) |
|
|
(1,156 |
) |
|
128 |
% |
|
Share of net loss |
|
- |
|
|
- |
|
nm |
|
|
(1,521 |
) |
|
|
(1,156 |
) |
|
32 |
% |
|
Impairment |
|
- |
|
|
- |
|
nm |
|
|
(1,110 |
) |
|
|
- |
|
|
nm |
|
Other |
|
17 |
|
|
- |
|
nm |
|
|
49 |
|
|
|
- |
|
|
nm |
|
|
Share of net income |
|
17 |
|
|
- |
|
nm |
|
|
49 |
|
|
|
- |
|
|
nm |
|
|
Earnings (Loss) from equity-accounted
investments |
$ |
17 |
|
$ |
- |
|
nm |
|
$ |
(2,582 |
) |
|
$ |
(1,156 |
) |
|
123 |
% |
Lesaka Technologies, Inc.
Attachment B
Reconciliation of GAAP loss attributable
to Lesaka to Group Adjusted EBITDA loss:
Three and nine months ended March 31,
2023 and 2022
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
|
|
|
|
March 31 |
|
March 31 |
|
December 31 |
|
March 31 |
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
Loss
attributable to Lesaka - GAAP |
$ |
(5,820 |
) |
|
$ |
(3,327 |
) |
|
$ |
(6,649 |
) |
|
$ |
(23,165 |
) |
|
$ |
(28,727 |
) |
|
(Earnings) loss
from equity accounted investments |
|
(17 |
) |
|
|
- |
|
|
|
(18 |
) |
|
|
2,582 |
|
|
|
1,156 |
|
|
Net loss before
(earnings) loss from equity-accounted investments |
|
(5,837 |
) |
|
|
(3,327 |
) |
|
|
(6,667 |
) |
|
|
(20,583 |
) |
|
|
(27,571 |
) |
|
Income tax
expense |
|
(860 |
) |
|
|
470 |
|
|
|
364 |
|
|
|
(465 |
) |
|
|
754 |
|
|
Loss before income
tax expense |
|
(6,697 |
) |
|
|
(2,857 |
) |
|
|
(6,303 |
) |
|
|
(21,048 |
) |
|
|
(26,817 |
) |
|
Interest
expense |
|
4,984 |
|
|
|
691 |
|
|
|
4,388 |
|
|
|
13,408 |
|
|
|
2,272 |
|
|
Interest
income |
|
(469 |
) |
|
|
(761 |
) |
|
|
(389 |
) |
|
|
(1,269 |
) |
|
|
(1,463 |
) |
|
Gain on disposal
of equity securities |
|
- |
|
|
|
(720 |
) |
|
|
- |
|
|
|
- |
|
|
|
(720 |
) |
|
Net loss (gain) on
disposal of equity-accounted investment |
|
329 |
|
|
|
346 |
|
|
|
112 |
|
|
|
193 |
|
|
|
346 |
|
|
Gain related to
fair value adjustment to currency options |
|
- |
|
|
|
(6,120 |
) |
|
|
- |
|
|
|
- |
|
|
|
(3,691 |
) |
|
|
Operating
loss |
|
(1,853 |
) |
|
|
(9,421 |
) |
|
|
(2,192 |
) |
|
|
(8,716 |
) |
|
|
(30,073 |
) |
|
|
|
PPA amortization
(Amortization of acquired intangible assets) |
|
3,789 |
|
|
|
15 |
|
|
|
3,842 |
|
|
|
11,559 |
|
|
|
126 |
|
|
|
|
|
Operating
income (loss) before PPA amortization and net interest
(Non-GAAP) |
|
1,936 |
|
|
|
(9,406 |
) |
|
|
1,650 |
|
|
|
2,843 |
|
|
|
(29,947 |
) |
|
|
|
|
PPA amortization
(Amortization of acquired intangible assets) |
|
(3,789 |
) |
|
|
(15 |
) |
|
|
(3,842 |
) |
|
|
(11,559 |
) |
|
|
(126 |
) |
|
|
|
|
Depreciation and
amortization |
|
5,975 |
|
|
|
463 |
|
|
|
5,919 |
|
|
|
17,892 |
|
|
|
2,084 |
|
|
|
|
|
Stock-based
compensation charges |
|
1,644 |
|
|
|
614 |
|
|
|
2,849 |
|
|
|
5,955 |
|
|
|
1,711 |
|
|
|
|
|
Lease
adjustments |
|
696 |
|
|
|
890 |
|
|
|
747 |
|
|
|
2,255 |
|
|
|
2,647 |
|
|
|
|
|
Once-off
items |
|
1,184 |
|
|
|
235 |
|
|
|
119 |
|
|
|
1,901 |
|
|
|
2,120 |
|
|
|
|
|
|
Group
Adjusted EBITDA - Non-GAAP |
|
7,646 |
|
|
|
(7,219 |
) |
|
|
7,442 |
|
|
|
19,287 |
|
|
|
(21,511 |
) |
|
|
|
|
|
|
Group costs |
|
2,293 |
|
|
|
1,929 |
|
|
|
2,256 |
|
|
|
6,849 |
|
|
|
5,578 |
|
|
|
|
|
|
|
Segment Adjusted EBITDA -
measure of segment performance |
|
9,939 |
|
|
|
(5,290 |
) |
|
|
9,698 |
|
|
|
26,136 |
|
|
|
(15,933 |
) |
|
|
|
|
|
|
Merchant |
|
8,290 |
|
|
|
1,427 |
|
|
|
9,120 |
|
|
|
25,303 |
|
|
|
4,506 |
|
|
|
|
|
|
|
Consumer |
|
1,649 |
|
|
|
(6,717 |
) |
|
|
578 |
|
|
|
833 |
|
|
|
(20,439 |
) |
Reconciliation of GAAP net loss and loss
per share, basic, to fundamental net loss and loss per share,
basic:
Three months ended March 31, 2023 and
2022
|
Net (loss) income(USD '000) |
|
(L)PS, basic (USD) |
|
Net (loss) income(ZAR '000) |
|
(L)PS, basic (ZAR) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
GAAP |
(5,820 |
) |
|
(3,327 |
) |
|
(0.09 |
) |
|
(0.06 |
) |
|
(104,363 |
) |
|
(51,940 |
) |
|
(1.64 |
) |
|
(0.89 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
charge |
1,644 |
|
|
614 |
|
|
|
|
|
|
29,480 |
|
|
9,586 |
|
|
|
|
|
Intangible asset amortization,
net |
2,701 |
|
|
11 |
|
|
|
|
|
|
48,434 |
|
|
184 |
|
|
|
|
|
Change in tax rate |
(1,299 |
) |
|
- |
|
|
|
|
|
|
(23,293 |
) |
|
- |
|
|
|
|
|
Transaction costs |
374 |
|
|
236 |
|
|
|
|
|
|
6,706 |
|
|
3,684 |
|
|
|
|
|
Net loss on disposal of
equity-accounted investments |
329 |
|
|
346 |
|
|
|
|
|
|
5,900 |
|
|
5,402 |
|
|
|
|
|
Other |
810 |
|
|
- |
|
|
|
|
|
|
14,525 |
|
|
- |
|
|
|
|
|
Gain related to fair value
adjustment to currency options |
- |
|
|
(6,120 |
) |
|
|
|
|
|
- |
|
|
(95,545 |
) |
|
|
|
|
Reorganization costs, net of
tax |
- |
|
|
5,894 |
|
|
|
|
|
|
- |
|
|
91,361 |
|
|
|
|
|
Gain on disposal of equity
securities |
- |
|
|
(720 |
) |
|
|
|
|
|
- |
|
|
(11,241 |
) |
|
|
|
|
Fundamental |
(1,261 |
) |
|
(3,066 |
) |
|
(0.02 |
) |
|
(0.05 |
) |
|
(22,611 |
) |
|
(48,509 |
) |
|
(0.35 |
) |
|
(0.84 |
) |
Nine months ended March 31, 2023 and
2022
|
Net (loss) income (USD '000) |
|
(L) EPS, basic (USD) |
|
Net (loss) income (ZAR '000) |
|
(L)EPS, basic (ZAR) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
GAAP |
(23,165 |
) |
|
(28,727 |
) |
|
(0.37 |
) |
|
(0.50 |
) |
|
(403,156 |
) |
|
(430,545 |
) |
|
(6.32 |
) |
|
(7.51 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reorganization costs, net of
tax |
- |
|
|
5,894 |
|
|
|
|
|
|
- |
|
|
87,706 |
|
|
|
|
|
Stock-based compensation
charge |
5,955 |
|
|
1,711 |
|
|
|
|
|
|
103,639 |
|
|
25,644 |
|
|
|
|
|
Intangible asset amortization,
net |
8,374 |
|
|
38 |
|
|
|
|
|
|
147,311 |
|
|
551 |
|
|
|
|
|
Impairment of equity method
investments |
1,110 |
|
|
- |
|
|
|
|
|
|
19,318 |
|
|
- |
|
|
|
|
|
Change in tax rate |
(1,299 |
) |
|
- |
|
|
|
|
|
|
(22,607 |
) |
|
- |
|
|
|
|
|
Non core international -
unrealized currency loss |
395 |
|
|
- |
|
|
|
|
|
|
6,874 |
|
|
- |
|
|
|
|
|
Transaction costs |
696 |
|
|
2,120 |
|
|
|
|
|
|
12,113 |
|
|
31,774 |
|
|
|
|
|
Net loss on disposal of
equity-accounted investments |
193 |
|
|
346 |
|
|
|
|
|
|
3,359 |
|
|
5,186 |
|
|
|
|
|
Other |
810 |
|
|
- |
|
|
|
|
|
|
14,097 |
|
|
- |
|
|
|
|
|
Gain related to fair value
adjustment to currency options |
- |
|
|
(3,691 |
) |
|
|
|
|
|
- |
|
|
(55,319 |
) |
|
|
|
|
Gain on disposal of equity
securities |
- |
|
|
(720 |
) |
|
|
|
|
|
- |
|
|
(10,791 |
) |
|
|
|
|
Fundamental |
(6,931 |
) |
|
(23,029 |
) |
|
(0.11 |
) |
|
(0.40 |
) |
|
(119,052 |
) |
|
(345,794 |
) |
|
(1.87 |
) |
|
(6.03 |
) |
Lesaka Technologies, Inc.
Attachment C
Reconciliation of net loss used to
calculate loss per share basic and diluted and headline loss per
share basic and diluted:
Three months ended March 31, 2023 and
2022
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
Net loss
(USD’000) |
(5,820 |
) |
|
(3,327 |
) |
Adjustments: |
|
|
|
|
Gain on disposal of equity
securities |
- |
|
|
(720 |
) |
|
Net loss on sale of
equity-accounted investments |
329 |
|
|
346 |
|
|
Profit on sale of property,
plant and equipment |
(145 |
) |
|
(1,104 |
) |
|
Tax effects on above |
41 |
|
|
302 |
|
|
|
|
|
|
Net loss used to
calculate headline loss (USD’000) |
(5,595 |
) |
|
(4,503 |
) |
|
|
|
|
|
Weighted average
number of shares used to calculate net loss per share basic loss
and headline loss per share basic loss (‘000) |
63,854 |
|
|
57,791 |
|
|
|
|
|
|
Weighted average
number of shares used to calculate net loss per share diluted loss
and headline loss per share diluted loss (‘000) |
63,854 |
|
|
57,791 |
|
|
|
|
|
|
Headline loss per
share: |
|
|
|
|
Basic, in USD |
(0.09 |
) |
|
(0.08 |
) |
|
Diluted, in USD |
(0.09 |
) |
|
(0.08 |
) |
Nine months ended March 31, 2023 and
2022
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
Net loss
(USD’000) |
(23,165 |
) |
|
(28,727 |
) |
Adjustments: |
|
|
|
|
Gain on disposal of equity
securities |
- |
|
|
(720 |
) |
|
Impairment of equity method
investments |
1,110 |
|
|
- |
|
|
Net gain on sale of
equity-accounted investment |
193 |
|
|
346 |
|
|
Profit on sale of property,
plant and equipment |
(466 |
) |
|
(2,400 |
) |
|
Tax effects on above |
130 |
|
|
727 |
|
|
|
|
|
|
Net loss used to
calculate headline loss (USD’000) |
(22,198 |
) |
|
(30,774 |
) |
|
|
|
|
|
Weighted average
number of shares used to calculate net loss per share basic loss
and headline loss per share basic loss (‘000) |
62,913 |
|
|
57,322 |
|
|
|
|
|
|
Weighted average
number of shares used to calculate net loss per share diluted loss
and headline loss per share diluted loss (‘000) |
62,913 |
|
|
57,322 |
|
|
|
|
|
|
Headline loss per
share: |
|
|
|
|
Basic, in USD |
(0.35 |
) |
|
(0.54 |
) |
|
Diluted, in USD |
(0.35 |
) |
|
(0.54 |
) |
Calculation of the denominator for headline diluted loss
per share
|
|
|
Three months endedMarch 31, |
|
Nine months endedMarch 31, |
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
Basic
weighted-average common shares outstanding and unvested restricted
shares expected to vest under GAAP |
63,854 |
|
57,791 |
|
62,913 |
|
57,322 |
|
|
Denominator for headline
diluted loss per share |
63,854 |
|
57,791 |
|
62,913 |
|
57,322 |
Weighted average number of shares used to
calculate headline diluted loss per share represents the
denominator for basic weighted-average common shares outstanding
and unvested restricted shares expected to vest plus the effect of
dilutive securities under GAAP. We use this number of fully-diluted
shares outstanding to calculate headline diluted loss per share
because we do not use the two-class method to calculate headline
diluted loss per share.
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