Net 1 UEPS Technologies, Inc. (Nasdaq: UEPS; JSE: NT1) today
released preliminary unaudited results for the fourth quarter and
full-year fiscal 2018.
We are pleased to report another successful
quarter and fiscal year as we embark upon our transition to a
stable and growing business, no longer dependent on our SASSA
contract in South Africa. Fiscal 2018 was a turbulent year, and one
where we have positioned our company for future growth through our
strategic investments and the realignment of our vast payment
infrastructure servicing the rural communities in South Africa. We
achieved this result despite the deferral of significant revenue
related to Q4 activities under our SASSA contract, until we receive
pricing confirmation from the Constitutional Court.
Fiscal 2018 highlights include:
- Revenue of $612.9 million, and Fundamental EPS of $2.00 ($1.56
excluding fair value adjustments);
- Adjusted EBITDA of $127.2 million;
- Added 0.9 million new EPE accounts. Total accounts as of June
30 were 2.9 million; and
- Spent $291.5 million on strategic investments and acquisitions,
including Cell C, DNI and Bank Frick.
Q4 2018 highlights include:
- Revenue of $149.2 million and Fundamental EPS of $0.22 ($0.29
excluding fair value adjustments);
- Adjusted EBITDA of $24.3 million;
- EPE account growth in the quarter of 0.4 million, to a total of
2.9 million at June 30; and
- Stabilization in South Korea and repositioning of the
International Payments Group.
Investment portfolio performance:
- Our preliminary results include our share of DNI’s net income
for 11 months of ZAR 258.4 million, which was well ahead of its
budget and our previously reported guidance for DNI;
- Cell C reported double-digit service revenue and EBITDA growth
in the six months ended June 30, 2018;
- Bank Frick continues to rapidly expand its operations, carrying
forward the momentum from last year; and
- Finbond generated revenue and net income of $161.9 million (66%
increase) and $19.2 million (98% increase) for its fiscal year
ended February 28, 2018.
We achieved the aforementioned results despite
CPS revenue declining 81% year-over-year in the fourth quarter, as
a result of the declining number of grant recipients we paid during
the phase-out period of our SASSA contract, which is scheduled to
terminate on September 30, 2018.
Looking ahead, and as we have said previously,
we expect FY2019 to be both a transitional and a transformational
year. While there is still considerable near-term uncertainty in
our South African consumer related businesses, which includes EPE
and other commercial banking accounts, as well as financial
inclusion and lifestyle products, we are confident the strategy
that we have implemented over the last few years will yield returns
for our shareholders.
“It is with great excitement that we are
counting down the days to the end of our SASSA contract on
September 30, 2018,” said Herman Kotzé, CEO of Net1. “While many
investors have been concerned that the end of this relationship
would severely impact our other South African businesses, I can
happily point to our solid Q4 we achieved despite a nearly 80%
decline at CPS, as well as our guidance for fiscal 2019.
Furthermore, the elimination of the negative impact that this
contract has had on our business, management’s time and shareholder
value, should provide a meaningful lift to product refinement and
R&D going forward. We see many opportunities as we look ahead
to the next several years. We expect to demonstrate our
capabilities as a strong financial technology and services business
with the proven ability to be the last mile provider of
transacting, value added and financial services to the
under-serviced individuals and businesses in our markets,
regardless of their location. I am confident that our deep
understanding and expertise in the areas of off-line payment
systems, biometrics and blockchain applications will be leveraged
to affirm our status as an innovative global fintech business,” he
concluded.
Preliminary Summary Financial Metrics
|
Fiscal year ended June 30, |
|
|
2018 |
|
2017 |
|
% change in USD |
|
% change in ZAR |
|
(All figures in USD
‘000s except per share data) |
|
|
|
|
|
|
|
|
Revenue |
612,889 |
|
610,066 |
|
0% |
|
(6%) |
|
|
|
|
|
|
|
|
GAAP operating
income |
58,949 |
|
97,043 |
|
(39%) |
|
(43%) |
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1) |
127,155 |
|
150,018 |
|
(15%) |
|
(21%) |
|
|
|
|
|
|
|
|
GAAP net income |
39,150 |
|
72,954 |
|
(46%) |
|
(50%) |
|
|
|
|
|
|
|
|
Fundamental net income
(1) |
113,823 |
|
94,721 |
|
20% |
|
12% |
|
|
|
|
|
|
|
|
GAAP earnings per share
($) |
0.69 |
|
1.34 |
|
(48%) |
|
(52%) |
|
|
|
|
|
|
|
|
Fundamental earnings
per share ($) (1) |
2.00 |
|
1.74 |
|
15% |
|
8% |
|
|
|
|
|
|
|
|
Fully-diluted shares
outstanding (‘000’s) |
56,858 |
|
54,648 |
|
4% |
|
|
|
|
|
|
|
|
|
Average period USD/ ZAR
exchange rate |
12.70 |
|
13.62 |
|
(7%) |
|
|
|
|
|
Three months ended June 30, |
|
|
2018 |
|
2017 |
|
% change in USD |
|
% change in ZAR |
|
(All figures in USD
‘000s except per share data) |
|
|
|
|
|
|
|
Revenue |
149,194 |
|
155,056 |
|
(4%) |
|
(16%) |
|
|
|
|
|
|
|
|
GAAP operating
income |
10,072 |
|
14,726 |
|
(32%) |
|
(41%) |
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1) |
24,301 |
|
35,143 |
|
(31%) |
|
(40%) |
|
|
|
|
|
|
|
|
GAAP net income |
7,036 |
|
11,289 |
|
(38%) |
|
(46%) |
|
|
|
|
|
|
|
|
Fundamental net income
(1) |
12,687 |
|
23,185 |
|
(45%) |
|
(48%) |
|
|
|
|
|
|
|
|
GAAP earnings per share
($) |
0.12 |
|
0.20 |
|
(37%) |
|
(46%) |
|
|
|
|
|
|
|
|
Fundamental earnings
per share ($) (1) |
0.22 |
|
0.41 |
|
(46%) |
|
(48%) |
|
|
|
|
|
|
|
|
Fully-diluted shares
outstanding (‘000’s) |
56,816 |
|
57,249 |
|
(1%) |
|
|
|
|
|
|
|
|
|
Average period USD/ ZAR
exchange rate |
11.45 |
|
13.19 |
|
(13%) |
|
|
(1) Adjusted EBITDA, fundamental net income and
earnings per share are non-GAAP measures and are described below
under “Use of Non-GAAP Measures—EBITDA and Adjusted EBITDA, and
—Fundamental net income and fundamental earnings per share.” See
Attachment B for a reconciliation of GAAP operating income to
EBITDA and Adjusted EBITDA, and GAAP net income to fundamental net
income and earnings per share.
Fiscal 2019 guidance
For fiscal year 2019, we are establishing an
initial guidance for FEPS of at least $1.05. This guidance is based
on the following expectations:
- EPE accounts remain stable at 2.5 million and at current
Average Revenue Per User (“ARPU”);
- DNI revenue and earnings growth of 10%;
- South Korea full year results consistent with 2018;
- No contribution for CPS for the full year; and
- A constant currency base of ZAR 12.70/$1, 56.8 million shares
and a tax rate of 35%.
Factors impacting comparability of our
Q4 2018 and Q4 2017 results
- Growth in non-CPS South African transaction processing
businesses: Higher volumes, transaction and fee income due
to the increased utilization by our customers of both the National
Payment System and our own distribution networks (including ATMs)
during Q4 2018, resulted in improved contribution to our processing
revenue;
- Ongoing contributions from EasyPay Everywhere:
EPE revenue and operating income growth was driven primarily by the
expansion of our customer base over the last year and increased
utilization of our ATM infrastructure;
- Higher equity-accounted earnings and re-measurement
loss: Finbond and our investment in DNI positively
impacted our reported results by approximately $6.9 million, before
amortization of intangible assets, net of deferred taxes. The
acquisition of DNI also resulted in a non-cash $4.6 million loss on
re-measurement of the previously held equity interest following the
consolidation of its business into our financial statements on June
30, 2018;
- Decline of CPS revenue and operating income due to the
expiration of our SASSA contract: CPS revenue and
operating income declined significantly due to 82% fewer grant
recipients paid by CPS, being only those recipients paid at cash
pay points as per the Constitutional Court order of March 23, 2018.
We have not recognized the additional revenue per recipient
recommended by South Africa’s National Treasury as the amounts have
not yet been confirmed by the Constitutional Court. As a result,
CPS incurred a significant operating loss during Q4 2018;
- Favorable impact from the weakening of the U.S. dollar
against the South African Rand: The U.S. dollar
depreciated 13% against the ZAR and 5% against the KRW during Q4
2018 compared with Q4 2017, which positively impacted our reported
results;
- Regulatory changes in South Korea pertaining to fees on
card transactions: The regulatory reduction in fees that
may be charged on card transactions that came into effect in
October 2017 continued to adversely impact our revenues and
operating income in South Korea as all parties in the payment
process adapt to the new laws and renegotiate their respective
positions in the marketplace; and
- Lower net interest income resulting from strategic
investments: Net interest income was $3.8 million lower
due to cash utilized for strategic investments. Interest expense
increased due to the South African lending facilities we obtained
in August 2017 and March 2018 to partially fund our
investments.
Preliminary results of Operations by
Segment and Liquidity
Our operating metrics will be updated and posted
on our website at
http://ir.net1.com/phoenix.zhtml?c=73876&p=irol-IRHome.
South African transaction
processing
Segment revenue was $64.0 million in Q4 2018,
down 6% compared with Q4 2017 in USD, and 18% lower on a constant
currency basis. The decrease in segment revenue was primarily due
to a significant decline in the number of social welfare grants
billed at the old contract rate as the Constitutional Court has not
yet issued an order on National Treasury’s price recommendation.
The resulting segment revenue decline was partially offset by
higher EPE related transaction revenue and increased inter-segment
transaction processing activities. Operating income decreased,
primarily as result of the fees earned from SASSA for paying grant
recipients remaining on the current pricing terms, which is not
sufficient to cover CPS’ fixed costs and resulted in an operating
loss in CPS for Q4 2018. Our operating income margin for Q4 2018
and 2017 was 6.7% and 21.9%, respectively.
International transaction
processing
Segment revenue of $43.6 million in Q4 2018 was
down 3% compared with Q4 2017 due to a lower contribution from
KSNET. Operating income during Q4 2018 was higher than Q4 2017
because last year’s results include a $3.8 million allowance for
doubtful finance loans receivable. Excluding this allowance, Q4
2018 is lower than the comparative period and was adversely
impacted by lower operating income generated in South Korea as a
result of the regulations governing the fees that may be charged on
card transactions and lower contributions from the other
international businesses as we restructured various units to
consolidate them under the International Payments Group. Operating
income margin for Q4 2018 and 2017 was 4.8% and 4.5%,
respectively.
Financial inclusion and applied
technologies
Segment revenue was $53.9 million in Q4 2018,
down 4% compared with Q4 2017 in USD and down 17% on a constant
currency basis. Financial inclusion and applied technologies
revenue and operating income decreased primarily due to fewer
prepaid airtime and other value added services sales, lower volumes
in our lending business as we tightened lending criteria and fewer
inter-segment revenues, partially offset by growth in insurance
products and monthly account fees charged to our customers.
Operating income margin for the Financial
inclusion and applied technologies segment was 25.5% in Q4 2018
compared with 25.7% in Q4 2017, respectively, and has reduced
primarily due to a decrease in inter-segment revenues and
inflationary cost pressures, and partially offset by fewer
low-margin prepaid product sales and higher monthly account fee
income.
Corporate/eliminations
Our corporate expenses have decreased primarily
due to fewer transaction costs and lower intangible asset
amortization during Q4 2018. In addition, Q4 2018 included a $4.6
million non-cash loss on re-measurement of DNI as a result of its
consolidation into our financial statements and Q4 2017 included
the costs associated with the separation of our former chief
executive officer from us, comprised of an $8.0 million separation
payment and a $1.6 million stock-based compensation charge.
Cash flow and liquidity
At June 30, 2018, our cash and cash equivalents
were $90.1 million and comprised mainly ZAR-denominated balances of
ZAR 648.8 million ($47.3 million), KRW-denominated balances of KRW
32.8 billion ($29.5 million), U.S. dollar-denominated balances of
$6.3 million, and other currency deposits, primarily Botswana pula,
of $7.0 million, all amounts translated at exchange rates
applicable as of June 30, 2018. The decrease in our cash balances
from June 30, 2017, was primarily due to our investments in
DNI, Bank Frick, Cell C and a $9 million listed note totaling
$291.5 million, scheduled repayments of our South African long-term
debt, unscheduled repayment of our South Korean debt in full,
repayment of our short-term facilities, growth in our South African
lending book, and capital expenditures, which was partially offset
by cash generated by our core businesses and new South African
long-term facilities.
Excluding the impact of interest received,
interest paid under our South Korean and South African debt and
taxes, the increase in operating cash flow relates primarily to the
receipt of certain working capital loans outstanding, offset
partially by the expansion of our South African lending book and
weaker trading activity. Capital expenditures for Q4 2018 and 2017
were $1.9 million and $2.7 million, respectively, and decreased
primarily due to the acquisition of fewer payment processing
terminals in South Korea, partially offset by an increase in ATM
and vehicle acquisitions in South Africa. We also paid
approximately $9.2 million for an additional 6% interest in DNI and
received $9.2 million related to the loan repayment from DNI.
Finally, we made a scheduled South African debt facility payment of
$16.1 million (ZAR 213.8 million) and repaid $3.4 million of our
United States overdraft facilities.
Supplemental Presentation for Q4 2018
Results
A supplemental presentation for preliminary Q4
2018 will be posted to the Investor Relations page of our website
at –
http://ir.net1.com/phoenix.zhtml?c=73876&p=irol-presentations -
one hour prior to our earnings call on Thursday, August 30,
2018.
Use of Non-GAAP Measures
US 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 directly
comparable GAAP measures. The presentation of EBITDA, adjusted
EBITDA, fundamental net income and fundamental earnings per share
and headline earnings per share are non-GAAP measures.
EBITDA and Adjusted EBITDA
Earnings before interest, tax, depreciation and
amortization (“EBITDA”) is GAAP operating income adjusted for
depreciation and amortization and impairment losses. Adjusted
EBITDA is EBITDA adjusted for costs related to acquisitions and
transactions consummated or ultimately not pursued. Fiscal 2018
also includes adjustments for an allowance for doubtful working
capital finance receivables, the non-cash re-measurement loss
related to the acquisition of DNI, a refund of indirect taxes in
South Korea and a gain realized on the sale of XeoHealth. Fiscal
2017 also includes adjustments for costs paid and stock-based
compensation charges incurred related to the separation of our
former chief executive officer from our company, and stock-based
compensation reversals.
Fundamental net income and fundamental earnings per
share
Fundamental net income and earnings per share is
GAAP net income and earnings per share adjusted for the
amortization of acquisition-related intangible assets (net of
deferred taxes), the amortization of intangible assets (net of
deferred taxes) related to equity-accounted investments,
stock-based compensation charges and reversals, the amortization of
South African and South Korean debt facility fees, an impairment
loss and unusual non-recurring items, including costs related to
acquisitions and transactions consummated or ultimately not
pursued.
Fundamental net income and earnings per share
for fiscal 2018 includes the Cell C fair value adjustment (net
unrealized income on asset available for sale, net of tax), as well
as adjustments for the non-cash re-measurement loss related to the
acquisition of DNI, an impairment loss, an allowance for doubtful
working capital finance receivables, a refund of indirect taxes in
South Korea, the impact of changes in tax laws in the U.S and a
gain realized on the sale of XeoHealth. Fundamental net income and
earnings per share for fiscal 2017 also includes separation costs
(net of taxes) paid to our former chief executive officer,
adjustments for a refund (net of taxes) related to South Korean
industry-wide litigation and US government investigations-related
expenses.
We provide earnings guidance only on a non-GAAP
basis and do not provide a reconciliation of forward-looking
fundamental earnings per share guidance to the most directly
comparable GAAP financial measures because of the inherent
difficulty in forecasting and quantifying certain amounts that are
necessary for such reconciliation, the amounts of which, based on
past experience, could be material.
Management believes that the EBITDA, adjusted
EBITDA, fundamental net income and earnings per share metric
enhances its own evaluation, as well as an investor’s
understanding, of our financial performance. Attachment B presents
the reconciliation between GAAP operating income and EBITDA and
adjusted EBITDA; and GAAP and fundamental net income and earnings
per share.
Headline earnings per share (“HEPS”)
The inclusion of HEPS in this press release is a
requirement of our listing on the JSE. HEPS basic and diluted is
calculated using net income which has been determined based on
GAAP. Accordingly, this may differ to the headline 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.
HEPS basic and diluted is calculated as GAAP net
income adjusted for the impairment loss, loss on the acquisition of
DNI and (profit) loss on sale of property, plant and equipment.
Attachment C presents the reconciliation between our net income
used to calculate earnings per share basic and diluted and HEPS
basic and diluted and the calculation of the denominator for
headline diluted earnings per share.
Conference Call
We will host a conference call to review these
results on August 30, 2018, at 8:00 a.m. Eastern Time. To
participate in the call, dial 1-508-924-4326 (US and Canada),
0333-300-1418 (U.K. only) or 010-201-6800 (South Africa only) ten
minutes prior to the start of the call. Callers should request
“Net1 call” upon dial-in. The call will also be webcast on the Net1
homepage, www.net1.com. Please click on the webcast link at least
ten minutes prior to the call. A webcast of the call will be
available for replay on the Net1 website through September 22,
2018.
About Net1
Net1 is a leading provider of transaction
processing services, financial inclusion products and services and
secure payment technology. Net1 operates market-leading payment
processors in South Africa and the Republic of Korea.
Net1 offers debit, credit and prepaid processing and issuing
services for all major payment networks. In South Africa, Net1
provides innovative low-cost financial inclusion products,
including banking, lending and insurance, and is a leading
distributor of mobile subscriber starter packs for Cell C, a South
African mobile network operator. Net1 leverages its strategic
equity investments in Finbond and Bank Frick (both regulated
banks), and Cell C to introduce products to new customers and
geographies. Net1 has a primary listing on NASDAQ (NasdaqGS: UEPS)
and a secondary listing on the Johannesburg Stock Exchange (JSE:
NT1). Visit www.net1.com for additional information about Net1.
Forward-Looking Statements
This announcement contains forward-looking
statements that involve known and unknown risks and uncertainties,
including statements concerning our preliminary financial results
for our fourth quarter and full year ended June 30, 2018. The
preliminary financial results for our fourth quarter and full year
2018 included in this press release represent the most current
information available to management. Our actual results, when
disclosed in our Form 10-K, may differ from these preliminary
results as a result of the completion of our financial closing
procedures, final adjustments, completion of the review by our
independent registered public accounting firm and other
developments that may arise between now and the disclosure of the
final results. A discussion of various factors that may cause our
preliminary actual results, levels of activity, performance or
achievements to differ materially from those expressed in such
forward-looking statements are included in our filings with the
Securities and Exchange Commission. We undertake no obligation to
revise any of these statements to reflect future events.
Investor Relations Contact:
Dhruv ChopraHead of Investor RelationsPhone: +1
917-767-6722Email: dchopra@net1.com
Media Relations Contact:
Bridget von HoldtBusiness Director –
Burson-Marsteller South AfricaPhone: +27-82-610-0650Email:
bridget.vonholdt@bm-africa.com
NET 1 UEPS TECHNOLOGIES, INC. |
|
Preliminary Unaudited Consolidated Statements
of Operations |
|
|
|
|
|
Unaudited |
|
|
|
Three months ended |
|
Year ended |
|
June 30, |
|
June 30, |
|
|
2018 |
|
|
|
2017 |
|
|
2018 (A) |
|
2017 (B) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share data) |
|
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
REVENUE |
$ |
149,194 |
|
|
$ |
155,056 |
|
|
$ |
612,889 |
|
|
$ |
610,066 |
|
|
|
|
|
|
|
|
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
goods sold, IT processing, servicing and support |
|
78,030 |
|
|
|
73,173 |
|
|
|
304,536 |
|
|
|
292,383 |
|
|
|
|
|
|
|
|
Selling,
general and administration |
|
51,586 |
|
|
|
56,896 |
|
|
|
193,003 |
|
|
|
179,262 |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
8,454 |
|
|
|
10,261 |
|
|
|
35,484 |
|
|
|
41,378 |
|
|
|
|
|
|
|
|
Impairment loss |
|
1,052 |
|
|
|
- |
|
|
|
20,917 |
|
|
|
- |
|
|
|
|
|
|
|
|
OPERATING INCOME |
|
10,072 |
|
|
|
14,726 |
|
|
|
58,949 |
|
|
|
97,043 |
|
|
|
|
|
|
|
|
INTEREST INCOME |
|
2,982 |
|
|
|
6,408 |
|
|
|
17,885 |
|
|
|
20,897 |
|
|
|
|
|
|
|
|
INTEREST EXPENSE |
|
2,069 |
|
|
|
1,711 |
|
|
|
8,941 |
|
|
|
3,484 |
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAX EXPENSE |
|
10,985 |
|
|
|
19,423 |
|
|
|
67,893 |
|
|
|
114,456 |
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE |
|
10,073 |
|
|
|
10,152 |
|
|
|
41,353 |
|
|
|
42,472 |
|
|
|
|
|
|
|
|
NET INCOME BEFORE
EARNINGS FROM EQUITY-ACCOUNTED INVESTMENTS |
|
912 |
|
|
|
9,271 |
|
|
|
26,540 |
|
|
|
71,984 |
|
|
|
|
|
|
|
|
EARNINGS FROM
EQUITY-ACCOUNTED INVESTMENTS |
|
4,341 |
|
|
|
1,886 |
|
|
|
11,730 |
|
|
|
2,664 |
|
|
|
|
|
|
|
|
NET INCOME |
|
5,253 |
|
|
|
11,157 |
|
|
|
38,270 |
|
|
|
74,648 |
|
|
|
|
|
|
|
|
LESS NET INCOME
ATTRIBUTABLE TO NON-CONTROLLING INTEREST |
|
(1,783) |
|
|
|
(132) |
|
|
|
(880) |
|
|
|
1,694 |
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE
TO NET1 |
$ |
7,036 |
|
|
$ |
11,289 |
|
|
$ |
39,150 |
|
|
$ |
72,954 |
|
|
|
|
|
|
|
|
Net income per
share, in U.S. dollars |
|
|
|
|
|
|
|
Basic
earnings attributable to Net1 shareholders |
$ |
0.12 |
|
|
$ |
0.20 |
|
|
$ |
0.69 |
|
|
$ |
1.34 |
Diluted
earnings attributable to Net1 shareholders |
$ |
0.12 |
|
|
$ |
0.20 |
|
|
$ |
0.69 |
|
|
$ |
1.33 |
|
|
|
|
|
|
|
|
(A) –
Unaudited |
|
|
|
|
|
|
|
(B) –
Derived from audited financial statements |
|
|
|
|
|
|
|
NET 1 UEPS TECHNOLOGIES, INC. |
Preliminary Unaudited Consolidated Balance
Sheets |
|
Unaudited |
|
(A) (R) |
|
June 30, |
|
June 30, |
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
(In thousands, except share data) |
ASSETS |
CURRENT ASSETS |
|
|
|
|
|
Cash and
cash equivalents |
$ |
90,054 |
|
|
$ |
258,457 |
|
Pre-funded social welfare grants receivable |
|
2,965 |
|
|
|
2,322 |
|
Accounts
receivable, net of allowances of – June: $1,101; June: $1,255 |
|
109,683 |
|
|
|
111,429 |
|
Finance
loans receivable, net of allowances of – June: $16,403; June:
$7,469 |
|
62,205 |
|
|
|
80,177 |
|
Inventory |
|
12,887 |
|
|
|
8,020 |
|
Deferred
income taxes |
|
- |
|
|
|
5,330 |
|
Total
current assets before settlement assets |
|
277,794 |
|
|
|
465,735 |
|
Settlement assets |
|
149,047 |
|
|
|
640,455 |
|
Total
current assets |
|
426,841 |
|
|
|
1,106,190 |
|
PROPERTY, PLANT AND
EQUIPMENT, net of accumulated depreciation of – June: $129,185;
June: $120,212 |
|
27,054 |
|
|
|
39,411 |
|
EQUITY-ACCOUNTED
INVESTMENTS |
|
88,331 |
|
|
|
27,862 |
|
GOODWILL |
|
283,240 |
|
|
|
188,833 |
|
INTANGIBLE ASSETS, net
of accumulated amortization of – June: $121,466 ; June:
$108,907 |
|
131,132 |
|
|
|
38,764 |
|
DEFERRED INCOME
TAXES |
|
6,312 |
|
|
|
- |
|
OTHER LONG-TERM ASSETS,
including reinsurance assets |
|
256,380 |
|
|
|
49,696 |
|
TOTAL ASSETS |
|
1,219,290 |
|
|
|
1,450,756 |
|
|
|
|
|
|
|
LIABILITIES |
CURRENT
LIABILITIES |
|
|
|
|
|
Short-term credit facilities |
|
- |
|
|
|
16,579 |
|
Accounts
payable |
|
35,055 |
|
|
|
15,136 |
|
Other
payables |
|
47,994 |
|
|
|
34,799 |
|
Current
portion of long-term borrowings |
|
44,695 |
|
|
|
8,738 |
|
Income
taxes payable |
|
5,742 |
|
|
|
5,607 |
|
Total
current liabilities before settlement obligations |
|
133,486 |
|
|
|
80,859 |
|
Settlement obligations |
|
149,047 |
|
|
|
640,455 |
|
Total
current liabilities |
|
282,533 |
|
|
|
721,314 |
|
DEFERRED INCOME
TAXES |
|
46,606 |
|
|
|
11,139 |
|
LONG-TERM
BORROWINGS |
|
5,469 |
|
|
|
7,501 |
|
OTHER LONG-TERM
LIABILITIES, including insurance policy liabilities |
|
38,580 |
|
|
|
2,795 |
|
TOTAL LIABILITIES |
|
373,188 |
|
|
|
742,749 |
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
REDEEMABLE COMMON
STOCK |
|
107,672 |
|
|
|
107,672 |
|
|
|
|
|
|
|
EQUITY |
COMMON
STOCK |
|
|
|
|
|
Authorized: 200,000,000 with $0.001 par value; |
|
|
|
|
|
Issued and outstanding shares, net of treasury - June:
56,685,925; June: 56,369,737 |
|
80 |
|
|
|
80 |
|
PREFERRED
STOCK |
|
|
|
|
|
Authorized shares: 50,000,000 with $0.001 par value; |
|
|
|
|
|
Issued
and outstanding shares, net of treasury: June: -; June: - |
|
- |
|
|
|
- |
|
ADDITIONAL PAID-IN-CAPITAL |
|
276,201 |
|
|
|
273,733 |
|
TREASURY
SHARES, AT COST: June: 24,891,292; June: 24,891,292 |
|
(286,951 |
) |
|
|
(286,951 |
) |
ACCUMULATED OTHER COMPREHENSIVE LOSS |
|
(159,237 |
) |
|
|
(162,569 |
) |
RETAINED
EARNINGS |
|
812,426 |
|
|
|
773,276 |
|
TOTAL
NET1 EQUITY |
|
642,519 |
|
|
|
597,569 |
|
NON-CONTROLLING INTEREST |
|
95,911 |
|
|
|
2,766 |
|
TOTAL EQUITY |
|
738,430 |
|
|
|
600,335 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
1,219,290 |
|
|
$ |
1,450,756 |
|
|
|
|
|
|
|
|
(A) – Derived from
audited financial statements |
|
|
|
|
|
(R) During Q2, 2018, we reclassified redeemable common
stock out of total equity because redeemable common stock is
required to be presented outside of permanent equity. We have
restated these amounts in our audited consolidated balance sheet as
at June 30, 2017. Total equity has decreased by approximately
$107.7 million and we have presented the approximately $107.7
million redeemable common stock outside of permanent equity. This
reclassification has no impact on the Company’s previously reported
consolidated income, comprehensive income or cash flows. |
NET 1 UEPS TECHNOLOGIES, INC. |
Preliminary Unaudited Consolidated Statements
of Cash Flows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
Three months ended |
|
|
Year ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2018 |
|
|
2017 |
|
|
|
2018 (A) |
|
|
|
2017 (B) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Net
income |
$ |
5,253 |
|
$ |
11,157 |
|
|
$ |
38,270 |
|
$ |
74,648 |
|
Adjustments
to reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
8,454 |
|
|
10,261 |
|
|
|
35,484 |
|
|
41,378 |
|
Earnings from equity-accounted investments |
|
(4,341) |
|
|
(1,886) |
|
|
|
(11,730) |
|
|
(2,664) |
|
Interest on Cedar Cellular note |
|
(587) |
|
|
- |
|
|
|
(769) |
|
|
- |
|
Fair value adjustment |
|
584 |
|
|
(239) |
|
|
|
(212) |
|
|
(300) |
|
Interest payable |
|
118 |
|
|
(64) |
|
|
|
(146) |
|
|
20 |
|
Facility fee amortized |
|
122 |
|
|
1,232 |
|
|
|
589 |
|
|
1,326 |
|
Loss on fair value of DNI |
|
4,614 |
|
|
- |
|
|
|
4,614 |
|
|
- |
|
(Profit) Loss on disposal of property, plant and equipment |
|
(31) |
|
|
(68) |
|
|
|
40 |
|
|
(639) |
|
Profit on disposal of business |
|
- |
|
|
- |
|
|
|
(463) |
|
|
- |
|
Stock compensation charge, net of forfeitures |
|
597 |
|
|
2,050 |
|
|
|
2,607 |
|
|
1,982 |
|
Dividends received from equity accounted investments |
|
- |
|
|
817 |
|
|
|
4,111 |
|
|
1,187 |
|
Impairment loss |
|
1,052 |
|
|
- |
|
|
|
20,917 |
|
|
- |
|
Decrease (Increase) in accounts and finance loans receivable,
and pre-funded grants receivable |
|
21,968 |
|
|
(13,506) |
|
|
|
31,390 |
|
|
(15,767) |
|
Decrease (Increase) in inventory |
|
255 |
|
|
2,717 |
|
|
|
(2,521) |
|
|
3,025 |
|
Increase (Decrease) in accounts payable and other payables |
|
4,820 |
|
|
(2,075) |
|
|
|
10,595 |
|
|
(6,461) |
|
(Decrease) Increase in taxes payable |
|
(6,954) |
|
|
(6,173) |
|
|
|
1,137 |
|
|
(354) |
|
(Decrease) Increase in deferred taxes |
|
(1,083) |
|
|
1,532 |
|
|
|
(1,308) |
|
|
(220) |
|
Net cash provided by operating activities |
|
34,841 |
|
|
5,755 |
|
|
|
132,605 |
|
|
97,161 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
(1,848) |
|
|
(2,697) |
|
|
|
(9,649) |
|
|
(11,195) |
|
Proceeds from disposal of property, plant and equipment |
|
83 |
|
|
238 |
|
|
|
658 |
|
|
1,592 |
|
Investment in Cell C |
|
- |
|
|
- |
|
|
|
(151,003) |
|
|
- |
|
Investment in equity of equity-accounted investments |
|
- |
|
|
- |
|
|
|
(133,335) |
|
|
- |
|
Loans to equity-accounted investments |
|
(1,000) |
|
|
- |
|
|
|
(10,635) |
|
|
(12,044) |
|
Repayment of loans by equity-accounted investments |
|
9,180 |
|
|
- |
|
|
|
9,180 |
|
|
- |
|
Acquisition of held to maturity investment |
|
- |
|
|
- |
|
|
|
(9,000) |
|
|
- |
|
Acquisitions, net of cash acquired |
|
(6,202) |
|
|
- |
|
|
|
(6,202) |
|
|
(4,651) |
|
Investment in MobiKwik |
|
- |
|
|
(10,488) |
|
|
|
- |
|
|
(25,835) |
|
Other investing activities, net |
|
(207) |
|
|
- |
|
|
|
(361) |
|
|
- |
|
Net change in settlement assets |
|
210,405 |
|
|
(116,755) |
|
|
|
490,795 |
|
|
(61,938) |
|
Net cash provided by (used in) investing
activities |
|
210,411 |
|
|
(129,702) |
|
|
|
180,448 |
|
|
(114,071) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
Long-term borrowings utilized |
|
- |
|
|
279 |
|
|
|
113,157 |
|
|
800 |
|
Repayment of long-term borrowings |
|
(16,095) |
|
|
(8,825) |
|
|
|
(77,062) |
|
|
(37,318) |
|
Repayment of bank overdraft |
|
(5,932) |
|
|
- |
|
|
|
(62,925) |
|
|
- |
|
Proceeds from bank overdraft |
|
2,528 |
|
|
16,176 |
|
|
|
44,900 |
|
|
16,176 |
|
Payment of guarantee fee |
|
- |
|
|
- |
|
|
|
(754) |
|
|
(1,145) |
|
Proceeds from issue of common stock |
|
- |
|
|
2,250 |
|
|
|
- |
|
|
47,879 |
|
Acquisition of treasury stock |
|
- |
|
|
(13,713) |
|
|
|
- |
|
|
(45,794) |
|
Dividends paid to non-controlling interest |
|
- |
|
|
(1,454) |
|
|
|
- |
|
|
(2,067) |
|
Net change in settlement obligations |
|
(210,405) |
|
|
116,755 |
|
|
|
(490,795) |
|
|
61,938 |
|
Net cash (used in) provided by financing
activities |
|
(229,904) |
|
|
111,468 |
|
|
|
(473,479) |
|
|
40,469 |
|
|
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash |
|
(12,466) |
|
|
3,229 |
|
|
|
(7,977) |
|
|
11,254 |
|
Net
(decrease) increase in cash and cash equivalents |
|
2,882 |
|
|
(9,250) |
|
|
|
(168,403) |
|
|
34,813 |
|
Cash, cash equivalents and restricted cash – beginning of
period |
|
87,172 |
|
|
267,707 |
|
|
|
258,457 |
|
|
223,644 |
|
Cash and cash equivalents – end of period |
$ |
90,054 |
|
$ |
258,457 |
|
|
$ |
90,054 |
|
$ |
258,457 |
|
|
|
|
|
|
|
|
|
|
|
(A) –
Unaudited |
|
|
|
|
|
|
|
|
|
(B) –
Derived from audited financial statements |
|
|
|
|
|
|
|
|
|
Net 1 UEPS Technologies, Inc.
Attachment A
Preliminary Operating segment revenue,
operating income and operating margin:
Three months ended June 30, 2018 and
2017 and March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Change - actual |
|
Change – constant exchange
rate(1) |
|
Key segmental data, in ’000, except margins |
Q4 ‘18 |
|
Q4 ‘17 |
|
Q3 ‘18 |
|
Q4
‘18vsQ4‘17 |
|
Q4 ‘18vsQ3
‘18 |
|
Q4
‘18vsQ4‘17 |
|
Q4 ‘18vsQ3
‘18 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South African
transaction processing |
$63,954 |
|
|
$67,747 |
|
|
$73,508 |
|
|
(6%) |
|
(13%) |
|
(18%) |
|
(17%) |
|
International
transaction processing |
|
43,580 |
|
|
|
45,025 |
|
|
|
46,240 |
|
|
(3%) |
|
(6%) |
|
(16%) |
|
(10%) |
|
Financial inclusion and
applied technologies |
|
53,888 |
|
|
|
56,220 |
|
|
|
59,574 |
|
|
(4%) |
|
(10%) |
|
(17%) |
|
(13%) |
|
Subtotal:
Operating segments |
|
161,422 |
|
|
|
168,992 |
|
|
|
179,322 |
|
|
(4%) |
|
(10%) |
|
(17%) |
|
(14%) |
|
Intersegment eliminations |
|
(12,228) |
|
|
|
(13,936) |
|
|
|
(16,601) |
|
|
(12%) |
|
(26%) |
|
(24%) |
|
(29%) |
|
Consolidated revenue |
$149,194 |
|
|
$155,056 |
|
|
$162,721 |
|
|
(4%) |
|
(8%) |
|
(16%) |
|
(12%) |
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss): |
|
|
|
|
|
|
|
|
|
South African
transaction processing |
$4,275 |
|
|
$14,858 |
|
|
$12,719 |
|
|
(71%) |
|
(66%) |
|
(75%) |
|
(68%) |
|
International
transaction processing |
|
2,089 |
|
|
|
2,016 |
|
|
|
(14,892) |
|
|
4% |
|
(114%) |
|
(10%) |
|
(113%) |
|
Financial inclusion and
applied technologies |
|
13,747 |
|
|
|
14,431 |
|
|
|
14,968 |
|
|
(5%) |
|
(8%) |
|
(17%) |
|
(12%) |
|
Subtotal:
Operating segments |
|
20,111 |
|
|
|
31,305 |
|
|
|
12,795 |
|
|
(36%) |
|
57% |
|
(44%) |
|
51% |
|
Corporate/Eliminations |
|
(10,039) |
|
|
|
(16,579) |
|
|
|
(5,231) |
|
|
(39%) |
|
92% |
|
(47%) |
|
84% |
|
Consolidated operating income |
$10,072 |
|
|
$14,726 |
|
|
$7,564 |
|
|
(32%) |
|
33% |
|
(41%) |
|
28% |
|
|
|
|
|
|
|
|
|
|
|
Operating
income margin (%) |
|
|
|
|
|
|
|
|
|
South African
transaction processing |
|
6.7% |
|
|
|
21.9% |
|
|
|
17.3% |
|
|
|
|
|
International
transaction processing |
|
4.8% |
|
|
|
4.5% |
|
|
|
(32.2%) |
|
|
|
|
|
Financial inclusion and
applied technologies |
|
25.5% |
|
|
|
25.7% |
|
|
|
25.1% |
|
|
|
|
|
Consolidated operating margin |
|
6.8% |
|
|
|
9.5% |
|
|
|
4.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) – This information shows what the change in
these items would have been if the USD/ ZAR exchange rate that
prevailed during the Q4 2018 also prevailed during Q4 2017 and Q3
2018. |
Fiscal year ended June 30, 2018 and
2017
|
|
|
|
|
Change - actual |
|
Change – constant exchange
rate(1) |
|
Key segmental data, in ’000, except margins |
F2018 |
|
F2017 |
|
F2018vsF2017 |
|
F2018vsF2017 |
|
Revenue: |
|
|
|
|
|
|
|
|
South African
transaction processing |
$268,047 |
|
|
$249,144 |
|
|
8% |
|
0% |
|
International
transaction processing |
|
180,027 |
|
|
|
176,729 |
|
|
2% |
|
(5%) |
|
Financial inclusion and
applied technologies |
|
221,906 |
|
|
|
235,901 |
|
|
(6%) |
|
(12%) |
|
Subtotal:
Operating segments |
|
669,980 |
|
|
|
661,774 |
|
|
1% |
|
(6%) |
|
Intersegment eliminations |
|
(57,091) |
|
|
|
(51,708) |
|
|
10% |
|
3% |
|
Consolidated revenue |
$612,889 |
|
|
$610,066 |
|
|
0% |
|
(6%) |
|
|
|
|
|
|
|
|
Operating
income: |
|
|
|
|
|
|
South African
transaction processing |
$42,796 |
|
|
$59,309 |
|
|
(28%) |
|
(33%) |
|
International
transaction processing |
|
(12,478) |
|
|
|
13,705 |
|
|
(191%) |
|
(185%) |
|
Financial inclusion and
applied technologies |
|
55,372 |
|
|
|
57,785 |
|
|
(4%) |
|
(11%) |
|
Subtotal:
Operating segments |
|
85,690 |
|
|
|
130,799 |
|
|
(34%) |
|
(39%) |
|
Corporate/Eliminations |
|
(26,741) |
|
|
|
(33,756) |
|
|
(21%) |
|
(26%) |
|
Consolidated operating income |
$58,949 |
|
|
$97,043 |
|
|
(39%) |
|
(43%) |
|
|
|
|
|
|
|
|
Operating
income margin (%) |
|
|
|
|
|
|
South African
transaction processing |
|
16.0% |
|
|
|
23.8% |
|
|
|
|
International
transaction processing |
|
(6.9%) |
|
|
|
7.8% |
|
|
|
|
Financial inclusion and
applied technologies |
|
25.0% |
|
|
|
24.5% |
|
|
|
|
Overall
operating margin |
|
9.6% |
|
|
|
15.9% |
|
|
|
|
|
|
|
|
|
|
|
(1) – This information shows what the change in
these items would have been if the USD/ ZAR exchange rate that
prevailed during fiscal 2018 also prevailed during fiscal
2017. |
Earnings from equity-accounted
investments:
The table below presents the relative earnings
(loss) from our equity-accounted investments:
|
Q4 2018 |
|
Q4 2017 |
|
% change |
|
|
F2018 |
|
|
F2017 |
|
% change |
|
DNI |
$1,803 |
|
|
|
$- |
|
nm |
|
$7,005 |
|
|
|
$- |
|
nm |
|
Share of
net income |
|
2,642 |
|
|
|
- |
|
nm |
|
|
9,510 |
|
|
|
- |
|
nm |
|
Amortization of intangible assets, net of deferred tax |
|
(839) |
|
|
|
- |
|
nm |
|
|
(2,505) |
|
|
|
- |
|
nm |
|
Bank Frick |
|
(1,581) |
|
|
|
- |
|
nm |
|
|
(606) |
|
|
|
- |
|
nm |
|
Share of
net income |
|
(1,033) |
|
|
|
- |
|
nm |
|
|
201 |
|
|
|
- |
|
nm |
|
Amortization of intangible assets, net of deferred tax |
|
(144) |
|
|
|
- |
|
nm |
|
|
(403) |
|
|
|
- |
|
nm |
|
Other |
|
(404) |
|
|
|
- |
|
nm |
|
|
(404) |
|
|
|
- |
|
nm |
|
Finbond |
|
4,226 |
|
|
|
1,573 |
|
nm |
|
|
5,327 |
|
|
|
2,503 |
|
113% |
|
Other |
|
(107) |
|
|
|
313 |
|
(134%) |
|
|
4 |
|
|
|
161 |
|
(98%) |
|
Earnings
from equity-accounted investments |
$4,341 |
|
|
$1,886 |
|
130% |
|
$11,730 |
|
|
$2,664 |
|
340% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net 1 UEPS Technologies,
Inc.
Attachment B
Reconciliation of preliminary GAAP
operating income to EBITDA and Adjusted EBITDA:
Three months and year ended June 30,
2018 and 2017
|
Three months ended June
30, |
|
Year endedJune
30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
Operating income -
GAAP |
10,072 |
|
14,726 |
|
58,949 |
|
97,043 |
|
|
|
|
|
|
|
|
Depreciation and amortization |
8,454 |
|
10,261 |
|
35,484 |
|
41,378 |
Impairment loss |
1,052 |
|
- |
|
20,917 |
|
- |
EBITDA |
19,578 |
|
24,987 |
|
115,350 |
|
138,421 |
Non-recurring Mastertrading allowance for doubtful accounts |
- |
|
- |
|
7,803 |
|
- |
Loss
resulting from acquisition of DNI |
4,614 |
|
- |
|
4,614 |
|
- |
Transaction costs |
109 |
|
586 |
|
2,396 |
|
3,347 |
Refund of
South Korean indirect taxes |
- |
|
- |
|
(2,545 |
) |
- |
Profit on
sale of Xeo |
- |
|
- |
|
(463 |
) |
- |
Former
CEO separation payment, |
- |
|
8,000 |
|
- |
|
8,000 |
Stock-based compensation charge related to former CEO and
reversals |
- |
|
1,570 |
|
- |
|
250 |
Adjusted EBITDA |
24,301 |
|
35,143 |
|
127,155 |
|
150,018 |
|
|
|
|
|
|
|
|
Reconciliation of preliminary GAAP net
income and earnings per share, basic, to fundamental net income and
earnings per share, basic:
Three months ended June 30, 2018 and
2017
|
Net
income(USD’000) |
|
EPS,
basic(USD) |
|
Net income
(ZAR’000) |
|
EPS, basic
(ZAR) |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
7,036 |
|
11,289 |
|
0.12 |
|
0.20 |
|
80,532 |
|
148,879 |
|
1.42 |
|
2.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
unrealized income on asset available for sale, net of tax |
(4,167) |
|
- |
|
|
|
|
|
(47,694) |
|
- |
|
|
|
|
Loss
resulting from acquisition of DNI |
4,614 |
|
- |
|
|
|
|
|
63,332 |
|
- |
|
|
|
|
Intangible asset amortization, net |
2,261 |
|
2,776 |
|
|
|
|
|
25,883 |
|
36,620 |
|
|
|
|
Impairment loss |
1,052 |
|
- |
|
|
|
|
|
14,442 |
|
- |
|
|
|
|
Stock-based compensation charge |
597 |
|
2,050 |
|
|
|
|
|
6,833 |
|
27,036 |
|
|
|
|
Intangible asset amortization, net related to equity-accounted
investments |
983 |
|
- |
|
|
|
|
|
11,251 |
|
- |
|
|
|
|
Facility
fees for debt |
122 |
|
1,238 |
|
|
|
|
|
1,396 |
|
16,329 |
|
|
|
|
Transaction costs |
189 |
|
586 |
|
|
|
|
|
2,163 |
|
7,728 |
|
|
|
|
Former
CEO separation payment, net of tax |
- |
|
5,200 |
|
|
|
|
|
- |
|
68,578 |
|
|
|
|
US
government investigations-related and US lawsuit expenses |
- |
|
46 |
|
|
|
|
|
- |
|
607 |
|
|
|
|
Fundamental |
12,687 |
|
23,185 |
|
0.22 |
|
0.41 |
|
158,138 |
|
305,777 |
|
2.78 |
|
5.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal year ended June 30, 2018 and 2017
|
Net
income(USD’000) |
|
EPS,
basic(USD) |
|
Net income
(ZAR’000) |
|
EPS, basic
(ZAR) |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
39,150 |
|
72,954 |
|
0.69 |
|
1.34 |
|
497,014 |
|
993,504 |
|
8.75 |
|
18.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
unrealized income on asset available for sale, net of
tax |
25,199 |
|
- |
|
|
|
|
|
319,904 |
|
- |
|
|
|
|
Impairment loss |
20,917 |
|
- |
|
|
|
|
|
265,543 |
|
- |
|
|
|
|
Non-recurring Mastertrading allowance for doubtful
accounts |
7,803 |
|
- |
|
|
|
|
|
99,060 |
|
- |
|
|
|
|
Intangible asset amortization, net |
9,385 |
|
10,491 |
|
|
|
|
|
119,126 |
|
142,857 |
|
|
|
|
Loss
resulting from acquisition of DNI |
4,614 |
|
- |
|
|
|
|
|
63,332 |
|
- |
|
|
|
|
Transaction costs |
2,239 |
|
3,347 |
|
|
|
|
|
28,424 |
|
45,580 |
|
|
|
|
Stock-based compensation charge |
2,607 |
|
1,982 |
|
|
|
|
|
33,096 |
|
26,991 |
|
|
|
|
Refund of
South Korean indirect taxes |
(1,985) |
|
- |
|
|
|
|
|
(25,200) |
|
- |
|
|
|
|
Intangible asset amortization, net related to equity-accounted
investments |
2,908 |
|
- |
|
|
|
|
|
36,917 |
|
- |
|
|
|
|
Change in
US tax rate |
860 |
|
- |
|
|
|
|
|
10,918 |
|
- |
|
|
|
|
Profit on
sale of Xeo |
(463) |
|
- |
|
|
|
|
|
(5,878) |
|
- |
|
|
|
|
Facility
fees for debt |
589 |
|
1,294 |
|
|
|
|
|
7,477 |
|
17,621 |
|
|
|
|
Former
CEO separation payment, net of tax |
- |
|
5,200 |
|
|
|
|
|
- |
|
70,814 |
|
|
|
|
Refund
related to litigation finalized in South Korea, net |
- |
|
(643) |
|
|
|
|
|
- |
|
(8,756) |
|
|
|
|
US
government investigations-related and US lawsuit
expenses |
- |
|
96 |
|
|
|
|
|
- |
|
1,307 |
|
|
|
|
Fundamental |
113,823 |
|
94,721 |
|
2.00 |
|
1.74 |
|
1,449,733 |
|
1,289,918 |
|
25.52 |
|
23.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net 1 UEPS Technologies, Inc.
Attachment C
Reconciliation of preliminary net income
used to calculate earnings per share basic and diluted and headline
earnings per share basic and diluted:
Three months ended June 30, 2018 and
2017
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
Net income
(USD’000) |
7,036 |
|
|
|
11,289 |
|
Adjustments: |
|
|
|
|
Re-measurement loss resulting from acquisition of DNI |
4,614 |
|
|
|
- |
|
Impairment loss |
1,052 |
|
|
|
- |
|
Profit on
sale of property, plant and equipment |
(31) |
|
|
|
(68) |
|
Tax
effects on above |
9 |
|
|
|
19 |
|
|
|
|
|
|
Net income used to
calculate headline earnings (USD’000) |
12,680 |
|
|
|
11,240 |
|
|
|
|
|
|
Weighted average number
of shares used to calculate net income per share basic earnings and
headline earnings per share basic earnings (‘000) |
56,773 |
|
|
|
57,196 |
|
|
|
|
|
|
Weighted average number
of shares used to calculate net income per share diluted earnings
and headline earnings per share diluted earnings (‘000) |
56,816 |
|
|
|
57,249 |
|
|
|
|
|
|
Headline earnings per
share: |
|
|
|
|
Basic, in
USD |
0.22 |
|
|
|
0.20 |
|
Diluted,
in USD |
0.22 |
|
|
|
0.20 |
|
Fiscal year ended June 30, 2018 and
2017
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
Net income
(USD’000) |
39,150 |
|
|
72,954 |
|
Adjustments: |
|
|
|
Impairment loss |
20,917 |
|
|
- |
|
Re-measurement loss resulting from acquisition of DNI |
4,614 |
|
|
- |
|
Profit on
sale of business |
(463) |
|
|
- |
|
Loss
(Profit) on sale of property, plant and equipment |
40 |
|
|
(639) |
|
Tax
effects on above |
(11) |
|
|
179 |
|
|
|
|
|
Net income used to
calculate headline earnings (USD’000) |
64,247 |
|
|
72,494 |
|
|
|
|
|
Weighted average number
of shares used to calculate net income per share basic earnings and
headline earnings per share basic earnings (‘000) |
56,807 |
|
|
54,539 |
|
|
|
|
|
Weighted average number
of shares used to calculate net income per share diluted earnings
and headline earnings per share diluted earnings (‘000) |
56,858 |
|
|
54,648 |
|
|
|
|
|
Headline earnings per
share: |
|
|
|
Basic, in
USD |
1.13 |
|
|
1.33 |
|
Diluted,
in USD |
1.13 |
|
|
1.33 |
|
Calculation of the denominator for headline diluted
earnings per share
|
Q4 ‘18 |
|
Q4 ‘17 |
|
F2018 |
|
F2017 |
|
|
|
|
|
|
|
|
Basic
weighted-average common shares outstanding and unvested restricted
shares expected to vest under GAAP |
56,773 |
|
57,196 |
|
56,807 |
|
54,539 |
Effect of
dilutive securities under GAAP |
43 |
|
53 |
|
51 |
|
109 |
Denominator for headline diluted earnings per share |
56,816 |
|
57,249 |
|
56,858 |
|
54,648 |
|
|
|
|
|
|
|
|
Weighted average number of shares used to
calculate headline earnings per share diluted represent 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 earnings per share diluted
because we do not use the two-class method to calculate headline
earnings per share diluted.
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