JOHANNESBURG, Oct. 27, 2011 /PRNewswire/ -- Net 1 UEPS
Technologies, Inc. (Nasdaq: UEPS; JSE: NT1) today announced results
for the three months ended September 30,
2011 ("1Q 2012"). Revenue for 1Q 2012 was $99.9 million, a year over year increase of 55%
in US dollars ("USD") and 49% in constant currency. During 1Q 2012,
net income under US generally accepted accounting principles
("GAAP") was $19.8 million versus
$7.4 million for the three months
ended September 30, 2010 ("1Q 2011").
GAAP earnings per share for 1Q 2012 was $0.44 versus $0.16
a year ago. Fundamental earnings per share for 1Q 2012 was
$0.44 compared to $0.36 in 1Q 2011, representing an increase of 23%
in USD and 17% in constant currency.
Summary Financial Metrics
|
|
|
Three months
ended September 30,
|
|
|
2011
|
2010
|
%
change
in
USD
|
%
change
in
ZAR
|
|
(All figures in USD '000s except
per share data)
|
|
|
|
|
Revenue
|
99,926
|
64,283
|
55%
|
49%
|
|
|
|
|
|
|
|
GAAP net income
|
19,768
|
7,429
|
166%
|
155%
|
|
|
|
|
|
|
|
Fundamental net income
(1)
|
19,883
|
16,527
|
20%
|
15%
|
|
|
|
|
|
|
|
GAAP earnings per share
($)
|
0.44
|
0.16
|
174%
|
163%
|
|
|
|
|
|
|
|
Fundamental earnings per share
($) (1)
|
0.44
|
0.36
|
23%
|
17%
|
|
|
|
|
|
|
|
Fully-diluted shares outstanding
('000's)
|
45,079
|
45,415
|
(1)%
|
|
|
|
|
|
|
|
|
Average period USD/ ZAR exchange
rate
|
7.09
|
7.41
|
(4)%
|
|
|
|
|
|
|
|
|
|
(1) Fundamental net income and earnings per share is GAAP net
income and earnings per share, as adjusted to exclude the
amortization of acquisition-related intangible assets, net of
deferred taxes, stock-based compensation charges and unusual
non-recurring items. The calculation of fundamental net income and
earnings per share for 1Q 2012 excludes a profit on the liquidation
of SmartSwitch Nigeria and amortization of facility fees related to
the incurrence of KSNET acquisition debt. The calculation of
fundamental net income and earnings per share for 1Q 2011 excludes
a net loss on a forward exchange contract and transaction related
costs.
The following factors impacted the comparability of our 1Q 2012
and 1Q 2011 results:
- Favorable impact from the weakness of the US
dollar: The US dollar depreciated by 4% compared to the ZAR
during 1Q 2012 compared to 1Q 2011 which positively impacted our
reported results;
- Inclusion of revenue contribution from KSNET at a lower
operating margin (before acquired intangible asset amortization)
than our legacy business: The inclusion of KSNET
contributed to an increase in revenues for fiscal 2012; however,
because KSNET has an operating margin (before acquired intangible
asset amortization) that is lower than our legacy businesses, it
reduced our overall operating margin. KSNET also contributed to the
increase in selling, general and administration and depreciation
and amortization expenses;
- Improved operating income and margins from hardware,
software and related technology sales segment: Operating
income and margins from our hardware, software and related
technology sales segment increased as a result of increased ad hoc
sales;
- Intangible asset amortization related to
acquisition: Our reported results for 1Q 2012 were
adversely impacted by additional intangible asset amortization
related to the acquisition of KSNET;
- Lower interest income and increased interest expense
resulting from KSNET acquisition: We paid the KSNET
purchase price with a combination of cash and long-term debt, which
reduced interest income and increased interest expense;
- Liquidation of SmartSwitch Nigeria: We recorded a
non-cash profit of $4.0 million on
the liquidation of SmartSwitch Nigeria; and
- Fiscal 2011 unrealized foreign exchange loss and
transaction-related expenses: During 1Q 2011, we
recognized, in selling, general and administration expense, an
unrealized foreign exchange loss of $2.6
million and incurred transaction-related expenses of
$3.4 million, primarily for the
acquisition of KSNET.
Comments and Outlook
"I am very pleased with our 1Q 2012 results and the start to our
fiscal year," said Dr. Serge
Belamant, Chairman and Chief Executive Officer of Net1.
"Several of our strategic actions and investments are beginning to
demonstrate tangible progress towards driving long-term growth,
including the refocusing of EasyPay toward higher-margin
value-added services, investments in KSNET to further penetrate the
small and mid-size market, as well as two healthcare processing
wins by XeoHealth in the US. SASSA's tender evaluation process is
still underway and we look forward to the outcome," he
concluded.
"As a result of our solid performance in 1Q 2012, we now expect
fundamental EPS of at least $1.60 for
the full year, assuming our existing contract with SASSA
remains in effect on the existing terms and conditions and on a
constant currency basis of ZAR 7.0 to
the Dollar," said Herman Kotze,
Chief Financial Officer of Net1.
Results of Operations by Segment and Liquidity
Our frequently asked questions and operating metrics will be
updated and posted on our website (www.net1.com).
South African transaction-based activities
Segment revenue was $49.9 million
in 1Q 2012, up 11% when compared with 1Q 2011 in USD and 6% on a
constant currency basis. In ZAR, the increase in revenue was
primarily due to modest growth under our pension and welfare
business and increased transaction volumes at MediKredit. Segment
operating income margin remained constant at 40% when compared to a
year ago. Excluding amortization of acquisition-related
intangibles, 1Q 2012 segment operating income margin was 43%, the
same when compared with 1Q 2011.
International transaction-based activities
KSNET is the largest contributor to this segment. XeoHealth
signed its first contract during 1Q 2012 and contributed to segment
revenue. Revenue was $30.3 million
and operating income margin was 2% in 1Q 2012. Excluding the
amortization of intangibles but including the start-up costs
related to Net1 Virtual Card and XeoHealth in the United States and MVC activities at Net1
UTA, operating income margin was 13%.
Smart card accounts
Segment revenue was $8.3 million
in 1Q 2012, up 4% compared with 1Q 2011 in USD and down 1% on a
constant currency basis. Operating income margin remained
consistent at 45%.
Financial services
Segment revenue was $2.1 million
in 1Q 2012, up 69% compared with 1Q 2011 in USD and 62% higher on a
constant currency basis, principally due to an increase in lending
activities. 1Q 2012 segment operating income margin was 67%
compared with 64% during 1Q 2011.
Hardware, software and related technology
sales
Segment revenue was $9.4 million
in 1Q 2012, down 3% compared with 1Q 2011 in USD and 7% lower on a
constant currency basis. The decrease in revenue was due to a lower
contribution from Net1 UTA and the increase in operating income was
due to an increase in higher margin ad hoc South African-based
contributor's hardware and software sales. The improvements
from the South African-based contributors during the quarter were
primarily due to orders which may not continue in future quarters.
Excluding amortization of all intangibles segment operating margin
was 22% compared to 0% during 1Q 2011.
Cash flow and liquidity
At September 30, 2011, we had cash
and cash equivalents of $102 million,
up from $95 million at June 30, 2011. The increase in cash was due to an
increase in operating activities. For 1Q 2012, we generated net
cash flow of $27.2 million from
operating activities, compared to $30.2
million in 1Q 2011. The decrease is attributable to a
reduction in interest income from lower cash balances and deposit
rates, increased interest expense on our Korean debt facilities and
higher tax payments. Excluding these items, operating income
increased due to increased activities across all of our operating
segments. Capital expenditures for 1Q 2012 and 2011 were
$4.5 million and $0.8 million, respectively. During 1Q 2012, we
repurchased $1.1 million of shares
under our $100 million authorization.
Use of Non-GAAP Measures
US securities laws require that when we publish any non-GAAP
measures, we disclose the reason for using the non-GAAP measure and
provide reconciliation to the directly comparable GAAP measure. The
presentation of fundamental net income and fundamental earnings per
share and headline earnings per share are non-GAAP measures.
Fundamental net income and fundamental earnings per
share
We calculate fundamental net income and earnings per share by
adjusting GAAP net income and earnings per share for the items
described in note 1 to the Summary Financial Metrics table above.
Management believes that the 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 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 loss (profit) on sale of property,
plant and equipment, net of related tax effects and the profit on
liquidation of SmartSwitch Nigeria. Attachment C presents the
reconciliation between our net income used to calculate earnings
per share basic and diluted and HEPS basic and diluted.
Conference Call
We will host a conference call to review 1Q 2012 results on
October 28, 2011, at 8:00 Eastern Time. To participate in the call,
dial 1-800-860-2442 (U.S. only), 1-866-605-3852 (Canada only), 0-800-917-7042 (U.K. only) or
0-800-200-648 (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
our 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 our website through November 18, 2011.
About Net1 (www.net1.com)
We are a leading provider of alternative payment systems that
leverage our Universal Electronic Payment System, or UEPS, to
facilitate biometrically secure real-time electronic transaction
processing to unbanked and under-banked populations of developing
economies around the world in an online or offline environment. In
addition to payments, UEPS can be used for banking, healthcare
management, payroll, remittances, voting and identification.
We operate market-leading payment processors in South Africa, Republic of Korea, Ghana and Iraq. In addition, our proprietary Mobile
Virtual Card technology offers secure mobile payments and banking
services in developed and emerging countries.
We have a primary listing on the Nasdaq and a secondary listing
on the JSE Limited.
Forward-Looking Statements
This announcement contains forward-looking statements that
involve known and unknown risks and uncertainties. A discussion of
various factors that cause our 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.
|
|
NET 1 UEPS
TECHNOLOGIES, INC.
|
|
Unaudited
Condensed Consolidated Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
September
30,
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
(In
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
REVENUE
|
|
$
|
99,926
|
$
|
64,283
|
|
|
|
|
|
|
|
|
|
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold, IT
processing, servicing and support
|
|
|
32,944
|
|
18,067
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administration
|
|
|
27,057
|
|
30,326
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
9,079
|
|
4,904
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
|
|
|
30,846
|
|
10,986
|
|
|
|
|
|
|
|
|
|
INTEREST INCOME
|
|
|
1,997
|
|
3,084
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE
|
|
|
2,616
|
|
248
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
|
30,227
|
|
13,822
|
|
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE
|
|
|
10,552
|
|
6,207
|
|
|
|
|
|
|
|
|
|
NET INCOME FROM CONTINUING
OPERATIONS BEFORE EARNINGS
(LOSS) FROM EQUITY-ACCOUNTED
INVESTMENTS
|
|
|
19,675
|
|
7,615
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) FROM
EQUITY-ACCOUNTED INVESTMENTS
|
|
|
85
|
|
(216)
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
19,760
|
|
7,399
|
|
|
|
|
|
|
|
|
|
ADD NET LOSS ATTRIBUTABLE TO
NON-CONTROLLING INTEREST
|
|
|
(8)
|
|
(30)
|
|
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE TO
NET1
|
|
$
|
19,768
|
$
|
7,429
|
|
|
|
|
|
|
|
|
|
Net income per share, in United
States dollars
|
|
|
|
|
|
|
Basic earnings attributable to
Net1 shareholders
|
|
|
$0.44
|
|
$0.16
|
|
Diluted earnings attributable to
Net1 shareholders
|
|
|
$0.44
|
|
$0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET 1 UEPS
TECHNOLOGIES, INC.
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
Unaudited
|
|
(A)
|
|
|
|
September
30,
|
|
June
30,
|
|
|
|
2011
|
|
2011
|
|
|
|
(In
thousands, except share data)
|
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
101,983
|
|
$
|
95,263
|
|
|
Pre-funded social welfare grants
receivable
|
|
1,695
|
|
|
4,579
|
|
|
Accounts receivable, net of
allowances of – September: $668; June: $728
|
|
78,172
|
|
|
82,780
|
|
|
Finance loans
receivable
|
|
7,709
|
|
|
8,141
|
|
|
Deferred expenditure on smart
cards
|
|
-
|
|
|
51
|
|
|
Inventory
|
|
5,781
|
|
|
6,725
|
|
|
Deferred income taxes
|
|
15,192
|
|
|
15,882
|
|
|
Total current assets
before settlement assets
|
|
210,532
|
|
|
213,421
|
|
|
Settlement
assets
|
|
159,542
|
|
|
186,668
|
|
|
Total current assets
|
|
370,074
|
|
|
400,089
|
|
PROPERTY, PLANT AND EQUIPMENT,
NET OF ACCUMULATED DEPRECIATION OF –
September: $46,910; June:
$50,007
|
|
32,409
|
|
|
35,807
|
|
EQUITY-ACCOUNTED
INVESTMENTS
|
|
1,639
|
|
|
1,860
|
|
GOODWILL
|
|
188,409
|
|
|
209,570
|
|
INTANGIBLE ASSETS, NET OF
ACCUMULATED AMORTIZATION OF –
September: $37,561; June:
$37,118
|
|
104,271
|
|
|
119,856
|
|
OTHER LONG-TERM ASSETS,
including reinsurance assets
|
|
39,900
|
|
|
14,463
|
|
TOTAL ASSETS
|
|
736,702
|
|
|
781,645
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
Accounts payable
|
|
11,123
|
|
|
11,360
|
|
|
Other payables
|
|
61,984
|
|
|
71,265
|
|
|
Current portion of long-term
borrowings
|
|
13,798
|
|
|
15,062
|
|
|
Income taxes payable
|
|
10,791
|
|
|
6,709
|
|
|
Total current liabilities
before settlement obligations
|
|
97,696
|
|
|
104,396
|
|
|
Settlement
obligations
|
|
159,542
|
|
|
186,668
|
|
|
Total current liabilities
|
|
257,238
|
|
|
291,064
|
|
DEFERRED INCOME TAXES
|
|
47,648
|
|
|
52,785
|
|
LONG-TERM BORROWINGS
|
|
97,009
|
|
|
110,504
|
|
OTHER LONG-TERM LIABILITIES,
including insurance policy liabilities
|
|
27,008
|
|
|
1,272
|
|
TOTAL LIABILITIES
|
|
428,903
|
|
|
455,625
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
NET1 EQUITY:
|
|
|
|
|
|
|
COMMON STOCK
|
|
|
|
|
|
|
|
Authorized: 200,000,000 with
$0.001 par value;
|
|
|
|
|
|
|
|
Issued and outstanding shares,
net of treasury - September: 45,002,304; June:
45,152,805
|
|
59
|
|
|
59
|
|
PREFERRED STOCK
|
|
|
|
|
|
|
|
Authorized shares: 50,000,000
with $0.001 par value;
|
|
|
|
|
|
|
|
Issued and outstanding shares,
net of treasury: 2011: -; 2010: -
|
|
-
|
|
|
-
|
|
ADDITIONAL
PAID-IN-CAPITAL
|
|
136,903
|
|
|
136,430
|
|
TREASURY SHARES, AT COST:
September: 13,455,090; June: 13,274,434
|
|
(175,823)
|
|
|
(174,694)
|
|
ACCUMULATED OTHER
COMPREHENSIVE LOSS
|
|
(71,257)
|
|
|
(33,779)
|
|
RETAINED
EARNINGS
|
|
414,758
|
|
|
394,990
|
|
TOTAL NET1
EQUITY
|
|
304,640
|
|
|
323,006
|
|
NON-CONTROLLING
INTEREST
|
|
3,159
|
|
|
3,014
|
|
TOTAL EQUITY
|
|
307,799
|
|
|
326,020
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
$
|
736,702
|
|
$
|
781,645
|
|
|
|
|
|
|
|
|
|
|
(A) – Derived from audited
financial statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET 1 UEPS
TECHNOLOGIES, INC.
|
|
Unaudited
Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
Three months
ended
|
|
|
|
September
30,
|
|
|
|
2011
|
|
2010
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
Cash flows from operating
activities
|
|
|
|
|
|
Net income
|
$
|
19,760
|
$
|
7,399
|
|
Depreciation and
amortization
|
|
9,079
|
|
4,904
|
|
Loss from equity-accounted
investments
|
|
(85)
|
|
216
|
|
Fair value
adjustments
|
|
(221)
|
|
(3,106)
|
|
Interest payable
|
|
1,662
|
|
73
|
|
Profit on disposal of property,
plant and equipment
|
|
(8)
|
|
(5)
|
|
Profit on liquidation of
SmartSwitch Nigeria
|
|
(3,994)
|
|
-
|
|
Realized loss on sale of
investments related to insurance business
|
|
25
|
|
-
|
|
Stock-based compensation
charge
|
|
496
|
|
1,438
|
|
Facility fee
amortized
|
|
116
|
|
-
|
|
Decrease in accounts
receivable, pre-funded social welfare
grants
receivable and finance
loans receivable
|
|
3,248
|
|
10,957
|
|
Decrease (Increase) in deferred
expenditure on smart cards
|
|
44
|
|
(2)
|
|
Increase in inventory
|
|
(319)
|
|
(2,102)
|
|
Increase in accounts payable and
other payables
|
|
331
|
|
6,025
|
|
(Decrease) Increase in taxes
payable
|
|
(3,607)
|
|
5,134
|
|
Increase (Decrease) in deferred
taxes
|
|
692
|
|
(773)
|
|
|
Net cash provided by operating
activities
|
|
27,219
|
|
30,158
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities
|
|
|
|
|
|
Capital expenditures
|
|
(4,466)
|
|
(768)
|
|
Proceeds from disposal of
property, plant and equipment
|
|
94
|
|
7
|
|
Acquisition of SmartLife, net of
cash acquired
|
|
(1,673)
|
|
-
|
|
Advance of loans to
equity-accounted investment
|
|
-
|
|
(375)
|
|
Repayment of loan by
equity-accounted investment
|
|
33
|
|
373
|
|
Purchase of investments related
to insurance business
|
|
(2,320)
|
|
-
|
|
Proceeds from maturity of
investments related to insurance business
|
|
2,321
|
|
-
|
|
Net change in settlement
assets
|
|
3,447
|
|
(15,544)
|
|
|
Net cash used in investing
activities
|
|
(2,564)
|
|
(16,307)
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
|
|
Loan portion related to
options
|
|
-
|
|
20
|
|
Acquisition of treasury
stock
|
|
(1,129)
|
|
-
|
|
Net change in settlement
obligations
|
|
(3,447)
|
|
15,544
|
|
|
Net cash (used in) generated
from financing activities
|
|
(4,576)
|
|
15,564
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes
on cash
|
|
(13,360)
|
|
17,004
|
|
|
|
|
|
|
|
Net increase in cash and cash
equivalents
|
|
6,719
|
|
46,419
|
|
|
|
|
|
|
|
Cash and cash equivalents –
beginning of period
|
|
95,264
|
|
153,742
|
|
|
|
|
|
|
|
Cash and cash equivalents – end
of period
|
$
|
101,983
|
$
|
200,161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net 1 UEPS
Technologies, Inc.
Attachment
A
Operating
segment revenue, operating income (loss) and operating
margin:
Three months
ended September 30, 2011 and 2010 and June 30, 2011
|
|
|
|
|
|
|
|
|
|
Change -
actual
|
Change –
constant
exchange
rate(1)
|
|
Key
segmental data, in '000, except margins
|
Q1
'12
|
|
Q1
'11
|
|
Q4
'11
|
Q1
'12
vs
Q1'11
|
Q1
'12
vs
Q4
'11
|
Q1
'12
vs
Q1
'11
|
Q1
'12
vs
Q4
'11
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
SA transaction-based
activities
|
$49,902
|
|
$44,889
|
|
$50,267
|
11%
|
(1)%
|
6%
|
3%
|
|
International
transaction-based activities
|
30,255
|
|
470
|
|
27,900
|
6,337%
|
8%
|
6,067%
|
13%
|
|
Smart card
accounts
|
8,252
|
|
7,970
|
|
8,623
|
4%
|
(4)%
|
(1)%
|
0%
|
|
Financial
services
|
2,111
|
|
1,250
|
|
2,278
|
69%
|
(7)%
|
62%
|
(3)%
|
|
Hardware, software and
related technology sales
|
9,406
|
|
9,704
|
|
8,300
|
(3)%
|
13%
|
(7)%
|
18%
|
|
Total
consolidated revenue
|
$99,926
|
|
$64,283
|
|
$97,368
|
55%
|
3%
|
49%
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
SA transaction-based
activities
|
$20,183
|
|
$17,748
|
|
$20,776
|
14%
|
(3)%
|
9%
|
1%
|
|
International
transaction-based activities
|
684
|
|
(708)
|
|
75
|
nm
|
812%
|
nm
|
850%
|
|
Operating income excluding
amortization
|
3,991
|
|
(708)
|
|
3,521
|
nm
|
13%
|
nm
|
18%
|
|
Amortization of intangible
assets
|
(3,307)
|
|
-
|
|
(3,446)
|
nm
|
(4)%
|
nm
|
0%
|
|
Smart card
accounts
|
3,750
|
|
3,622
|
|
3,919
|
4%
|
(4)%
|
(1)%
|
0%
|
|
Financial
services
|
1,411
|
|
797
|
|
1,634
|
77%
|
(14)%
|
70%
|
(10)%
|
|
Hardware, software and
related technology sales
|
1,937
|
|
(2,339)
|
|
(1,898)
|
nm
|
nm
|
nm
|
nm
|
|
Corporate/
Eliminations
|
2,881
|
|
(8,134)
|
|
2,087
|
nm
|
38%
|
nm
|
44%
|
|
Total
operating income
|
$30,846
|
|
$10,986
|
|
$26,593
|
181%
|
16%
|
169%
|
21%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income margin (%)
|
|
|
|
|
|
|
|
|
|
|
SA transaction-based
activities
|
40%
|
|
40%
|
|
41%
|
|
|
|
|
|
International
transaction-based activities
|
2%
|
|
(151)%
|
|
0%
|
|
|
|
|
|
International
transaction-based activities excluding amortization
|
13%
|
|
(151)%
|
|
13%
|
|
|
|
|
|
Smart card
accounts
|
45%
|
|
45%
|
|
45%
|
|
|
|
|
|
Financial
services
|
67%
|
|
64%
|
|
72%
|
|
|
|
|
|
Hardware, software and
related technology sales
|
21%
|
|
(24)%
|
|
(23)%
|
|
|
|
|
|
Overall operating
margin
|
31%
|
|
17%
|
|
27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) – This
information shows what the change in these items would have been if
the USD/ ZAR exchange rate that prevailed during 1Q 2012 also
prevailed during 1Q 2011 and 4Q 2011.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net 1 UEPS
Technologies, Inc.
Attachment
B
Reconciliation of GAAP net
income to fundamental net income:
Three months
ended September 30, 2011 and 2010
|
|
|
|
|
|
Net
Income
(USD'000)
|
EPS,
basic
(USD)
|
|
Net
Income
(ZAR'000)
|
EPS,
basic
(ZAR)
|
|
|
2011
|
2010
|
2011
|
2010
|
|
2011
|
2010
|
2011
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
19,768
|
7,429
|
44
|
16
|
|
140,232
|
55,014
|
311
|
121
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible
assets, net of tax
|
3,497
|
2,608
|
|
|
|
24,814
|
19,313
|
|
|
|
Stock-based compensation
charge
|
496
|
1,438
|
|
|
|
3,519
|
10,649
|
|
|
|
Loss on FEC, net of
tax
|
-
|
1,685
|
|
|
|
-
|
12,480
|
|
|
|
Facility fees for KSNET
debt
|
116
|
-
|
|
|
|
823
|
-
|
|
|
|
Profit on liquidation of
SmartSwitch Nigeria
|
(3,994)
|
-
|
|
|
|
(28,333)
|
-
|
|
|
|
Acquisition-related
costs.
|
-
|
3,367
|
|
|
|
-
|
24,934
|
|
|
|
Fundamental
|
19,883
|
16,527
|
44
|
36
|
|
141,055
|
122,390
|
313
|
270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net 1 UEPS
Technologies, Inc.
Attachment
C
Reconciliation of net income
used to calculate earnings per share basic and diluted and headline
earnings per share basic and diluted:
Three months
ended September 30, 2011 and 2010
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
Net income (USD'000)
|
19,768
|
|
7,429
|
|
Adjustments:
|
|
|
|
|
Profit on liquidation of
SmartSwitch Nigeria (USD'000)
|
(3,994)
|
|
-
|
|
Profit on sale of
property, plant and equipment (USD'000)
|
(8)
|
|
(5)
|
|
Tax effects on above
(USD'000)
|
3
|
|
2
|
|
|
|
|
|
|
Net income used to calculate
headline earnings (USD'000)
|
15,769
|
|
7,426
|
|
|
|
|
|
|
Weighted average number of
shares used to calculate net income per share basic
earnings and headline earnings
per share basic earnings ('000)
|
45,055
|
|
45,384
|
|
|
|
|
|
|
Weighted average number of
shares used to calculate net income per share diluted
earnings and headline earnings
per share diluted earnings ('000)
|
45,085
|
|
45,415
|
|
|
|
|
|
|
Headline earnings per
share:
|
|
|
|
|
Basic earnings – common
stock and linked units, in US cents
|
35
|
|
16
|
|
Diluted earnings – common
stock and linked units, in US cents
|
35
|
|
16
|
|
|
|
|
|
|
|
SOURCE Net 1 UEPS Technologies, Inc.