JOHANNESBURG, Aug. 23, 2012 /PRNewswire/ -- Net 1 UEPS
Technologies, Inc. (Nasdaq: UEPS; JSE: NT1) today announced results
for the fourth quarter and full-year fiscal 2012.
Summary
Financial Metrics
|
|
|
|
|
Three
months ended June 30,
|
|
2012
|
2011
|
%
change
in USD
|
%
change
in ZAR
|
(All
figures in USD '000s except per share data)
|
|
|
|
Revenue
|
107,616
|
97,368
|
11%
|
30%
|
|
|
|
|
|
GAAP net
(loss) income
|
(7,977)
|
6,832
|
(217%)
|
(238%)
|
|
|
|
|
|
Fundamental net income (1)
|
12,208
|
17,607
|
(31%)
|
(20%)
|
|
|
|
|
|
GAAP
(loss) earnings per share ($)
|
(0.17)
|
0.15
|
(216%)
|
(237%)
|
|
|
|
|
|
Fundamental earnings per share ($) (1)
|
0.27
|
0.39
|
(31%)
|
(21%)
|
|
|
|
|
|
Fully-diluted shares outstanding ('000's)
|
45,568
|
45,181
|
1%
|
|
|
|
|
|
|
Average
period USD/ ZAR exchange rate
|
8.03
|
6.81
|
18%
|
|
|
Fiscal
year ended June 30,
|
|
2012
|
2011
|
%
change
in USD
|
%
change
in ZAR
|
(All
figures in USD '000s except per share data)
|
|
|
|
Revenue
|
390,264
|
343,420
|
14%
|
25%
|
|
|
|
|
|
GAAP net
income
|
44,651
|
2,647
|
1,587%
|
1,761%
|
|
|
|
|
|
Fundamental net income (1)
|
64,094
|
68,932
|
(7%)
|
2%
|
|
|
|
|
|
GAAP
earnings per share ($)
|
0.99
|
0.06
|
1,586%
|
1,760%
|
|
|
|
|
|
Fundamental earnings per share ($) (1)
|
1.42
|
1.53
|
(7%)
|
2%
|
|
|
|
|
|
Fully-diluted shares outstanding ('000's)
|
45,246
|
45,231
|
-
|
|
|
|
|
|
|
Average
period USD/ ZAR exchange rate
|
7.72
|
7.00
|
10%
|
|
(1)
Fundamental net income and earnings per share is a non-GAAP measure
and is described below under "Use of Non-GAAP Measures—Fundamental
net income and fundamental earnings per share." See Attachment B
for a reconciliation of GAAP net income (loss) to fundamental net
income and earnings (loss) per share.
|
Factors impacting comparability of our Q4 2012 and Q4 2011
results
- Unfavorable impact from the strengthening of the US
dollar: The US dollar appreciated by 18% against the ZAR
during the fourth quarter of fiscal 2012 which negatively impacted
our reported results;
- Higher revenues and implementation costs paid as a result
of our new contract with SASSA: We commenced generating
fees under our new SASSA contract during Q4 2012 and incurred
additional implementation and staff costs of $9.1 million;
- Fair value charge resulting from issue of equity
instrument pursuant to BBBEE transaction: We recorded a
fair value charge of $14.2 million
related to our BBBEE transaction which negatively impacted our
reported results during Q4 2012; and
- Capital gain paid related to intercompany
transaction: We incurred a non-recurring capital gains tax
of $1.5 million resulting from an
intercompany capital transaction in South
Africa.
Comments and Outlook
"I am delighted with our overall performance this quarter as it
should demonstrate that the Company is now firmly on its way to
rekindling its previous appeal, as we overcome the challenges we
have faced over the last few years," said Dr. Serge Belamant, Chairman and Chief Executive
Officer of Net1. "All our business units, specifically those that
can have meaningful impact, including CPS, KSNET, VCC, MediKredit
and NUETS have a robust pipeline of new and existing opportunities,
which in turn should begin to deliver improving financial
contributions in the short-to-medium term. Our technology is well
placed to advance our business in many markets such as welfare
systems, mobile-based payments, claims adjudication, financial
inclusion and UEPS/EMV card issuing. I am bullish on the future
prospects of our Company and believe we have all the tools required
to create long-term value for our shareholders," he concluded.
"We expect our quarterly performance in fiscal 2013 to improve
sequentially as we progress through the year, although quarterly
results may still be lumpy given the timing and quantum of
investments and start up costs to be incurred to ensure the
implementation of our SASSA contract," said Herman Kotze, Chief Financial Officer of Net1.
"For fiscal year 2013, we expect fundamental earnings per share to
be at least $1.49, assuming the
constant currency base of ZAR
7.72/$1 and using our fiscal
2012 share count of 45 million shares. As always, fundamental
earnings exclude amortization of intangibles, stock-based charges
and unusual non-recurring items," he concluded.
Second phase of our new SASSA contract implementation
We successfully initiated the national grant payment process for
approximately 9.2 million beneficiaries on April 2, 2012 having commenced implementation
during Q3 2012. The implementation will be conducted in two phases.
The first phase involved issuing approximately 2.5 million
MasterCard-branded debit cards to beneficiaries that we did not
serve under our previous contract, in order to establish the
payment process to pay all social grants in the country. The second
phase commenced in early July 2012
and requires the re-registration of all 9.2 million grant
recipients.
During Q4 2012 we incurred direct implementation expenses of
approximately $9.1 million including
staff, travel, premises hire for enrollment, stationery, delivery
and advertising costs. We also incurred implementation related
capital expenditures of approximately $13.4
million during Q4 2012. We continue to anticipate cumulative
capital expenditures of $45 - $50
million tied to the implementation for our new national
contract.
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 $58.4 million
in Q4 2012, up 16% compared with Q4 2011 in USD and up 37% on a
constant currency basis. In ZAR, the increase in segment revenue
was largely due to higher SASSA-related fees resulting from the
payment of grants nationwide, more prepaid airtime sales resulting
primarily from the Eason acquisition and increased transaction
volumes in FIHRST. Segment operating income margin was 9% and 41%,
respectively, and declined primarily due to implementation costs
and the inclusion of increased low-margin prepaid airtime sales as
well as Eason intangible asset amortization. Excluding amortization
of acquisition-related intangibles, Q4 2012 segment operating
income margin was 12%, compared to 44% during Q4 2011.
International transaction-based activities
KSNET continues to contribute the majority of our revenues in
this operating segment. Segment revenue was $31.0 million in Q4 2012, up 11% compared with Q4
2011 in USD and 31% on a constant currency basis. Operating margin
for the segment is lower than most of our South African
transaction-based businesses and was negatively impacted by
start-up expenditures related to our XeoHealth launch in
the United States, MVC activities
at Net1 UTA and on-going losses at Net1 Virtual Card, but these
expenses were partially offset by revenue contributions from KSNET,
and to a lesser extent from XeoHealth and NUETS' initiative in
Iraq. Excluding the amortization
of intangibles but including the start-up costs referenced above,
Q4 2012 operating income margin was 10% compared to 13% during Q4
2011.
Smart card accounts
Segment revenue was $8.2 million
in Q4 2012, down 5% compared with Q4 2011 in USD but up 12% on a
constant currency basis, Q4 2012 segment operating income margin
was 28%, compared to 45% during Q4 2011. We have reduced our
pricing for smart card accounts after taking into consideration the
lower price and higher volumes of the new SASSA contract. The new
pricing, effective from April 1,
2012, reduced the average revenue from R5.50 to R4.00 and
the operating income margin from 45% to 29%.
Financial services
UEPS-based lending contributes the majority of the revenue and
operating income in this operating segment. Segment revenue was
$1.8 million in Q4 2012, down 22%
compared with Q4 2011 in USD and 8% lower on a constant currency
basis, principally due to a decrease in lending activities. Q4 2012
segment operating income margin was 54% compared with 72% during Q4
2011 and decreased primarily due to start-up expenditures incurred
by SmartLife.
Hardware, software and related technology
sales
Segment revenue was $8.2 million
in Q4 2012, down 1% compared with Q4 2011 in USD and 17% higher on
a constant currency basis. In constant currency, the increase in
revenue and operating income was due to improved software sales and
cost containment at Net1 UTA. Excluding amortization of all
intangibles, and the intangible asset impairment in Q4 2011,
segment operating income margin was 25% compared to an operating
loss margin of 23% during Q4 2011.
Cash flow and liquidity
At June 30, 2012, we had cash and
cash equivalents of $39 million, down
from $95 million at June 30, 2011. The decrease in cash was due to a
strengthening in the USD against the ZAR, the implementation of our
new SASSA contract, the repayment of principal under our KSNET debt
and the acquisition of SmartLife and the Eason prepaid electricity
and airtime business, offset by cash generated from operations and
a net settlement received from the former shareholders of KSNET.
For Q4 2012, net cash used by operating activities was $22.6 million, compared net cash generated of
$12.8 million in Q4 2011. Excluding
the impact of interest paid under our Korean debt, the decrease in
cash provided by operating activities resulted from significant
implementation costs related to our SASSA contract and, due to the
timing of the opening of the July
2012 pay cycle, as we did not have any significant amounts
due to non-prefunded merchants participating in our merchant
acquiring system as of June 30, 2012.
Capital expenditures for Q4 2012 and 2011 were $16 million and $6
million, respectively, and have increased primarily due to
acquisition of payment vehicles and other equipment for our new
SASSA contract and payment processing terminals in Korea.
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
Fundamental net income and earnings per share is GAAP net income
(loss) and earnings (loss) per share to adjusted for (1) the
amortization of acquisition-related intangible assets (net of
deferred taxes), (2) stock-based compensation charges and (3)
unusual non-recurring items, including the effects of a change in
South African tax law and the creation of a valuation allowance
related to foreign tax credits, equity instrument charge related to
our BBBEE transaction, capital gains taxes paid resulting from an
intercompany capital transaction in South
Africa, intangible asset impairments, amortization of KSNET
debt facility fees, restructuring charges, profit on liquidation of
SmartSwitch Nigeria and transaction-related costs. 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 (loss)
adjusted for the loss (profit) on sale of property, plant and
equipment, net of related tax effects, the loss attributable to the
sale of 10% of SmartLife, the profit on liquidation of SmartSwitch
Nigeria and the impairment of intangible assets. 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 Q4 2012 results on
August 24, 2012, 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 September 14, 2012.
About Net1 (www.net1.com)
Net1 is a leading provider of alternative payment systems that
leverage its 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.
Net1 operates market-leading payment processors in South Africa, Republic of Korea, Ghana and Iraq. In addition, Net1's proprietary Mobile
Virtual Card technology offers secure mobile payments and banking
services in developed and emerging countries while its MediKredit
and XeoHealth subsidiaries provide its proprietary 5010 and ICD-10
compliant real-time claims adjudication system.
Net1 has 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.
|
Consolidated Statements of
Operations
|
|
|
|
|
|
Three
months ended
|
|
Fiscal
year ended (A)
|
|
|
June
30,
|
|
|
June
30,
|
|
|
2012
|
|
2011
|
|
|
2012
|
|
2011
|
|
(In
thousands, except per share data)
|
|
(In
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
REVENUE
|
$
|
107,616
|
$
|
97,368
|
|
$
|
390,264
|
$
|
343,420
|
|
|
|
|
|
|
|
|
|
|
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold, IT processing, servicing and
support
|
|
41,395
|
|
33,307
|
|
|
141,000
|
|
109,858
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administration
|
|
45,107
|
|
27,985
|
|
|
137,404
|
|
119,692
|
|
|
|
|
|
|
|
|
|
|
Equity instrument issued pursuant to BBBEE
transaction
|
|
14,211
|
|
-
|
|
|
14,211
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
9,305
|
|
9,483
|
|
|
36,499
|
|
34,671
|
|
|
|
|
|
|
|
|
|
|
Impairment of intangibles
|
|
-
|
|
-
|
|
|
|
|
41,771
|
|
|
|
|
|
|
|
|
|
|
OPERATING
(LOSS) INCOME
|
|
(2,402)
|
|
26,593
|
|
|
61,150
|
|
37,428
|
|
|
|
|
|
|
|
|
|
|
INTEREST
INCOME
|
|
2,595
|
|
1,704
|
|
|
8,576
|
|
7,654
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
2,130
|
|
2,523
|
|
|
9,345
|
|
8,672
|
|
|
|
|
|
|
|
|
|
|
INCOME
(LOSS) BEFORE INCOME TAXES
|
|
(1,937)
|
|
25,774
|
|
|
60,381
|
|
36,410
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX
EXPENSE
|
|
6,151
|
|
19,085
|
|
|
15,936
|
|
33,525
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
INCOME FROM CONTINUING OPERATIONS BEFORE EARNINGS (LOSS) FROM
EQUITY-ACCOUNTED INVESTMENTS
|
|
(8,088)
|
|
6,689
|
|
|
44,445
|
|
2,885
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
(LOSS) FROM EQUITY-ACCOUNTED INVESTMENTS
|
|
120
|
|
170
|
|
|
220
|
|
(339)
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
INCOME
|
|
(7,968)
|
|
6,859
|
|
|
44,665
|
|
2,546
|
|
|
|
|
|
|
|
|
|
|
LESS (ADD)
NET INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING
INTEREST
|
|
9
|
|
27
|
|
|
14
|
|
(101)
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
INCOME ATTRIBUTABLE TO NET1
|
$
|
(7,977)
|
$
|
6,832
|
|
$
|
44,651
|
$
|
2,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income per share attributable to Net1 shareholders, in
United States dollars
|
|
|
|
|
|
|
|
|
|
Basic
|
|
($0.17)
|
|
$0.15
|
|
|
$0.99
|
|
$0.06
|
Diluted
|
|
($0.17)
|
|
$0.15
|
|
|
$0.99
|
|
$0.06
|
|
|
|
|
|
|
|
|
|
|
(A) –
Derived from audited financial statements
|
|
|
|
|
|
|
|
|
|
NET 1
UEPS TECHNOLOGIES, INC.
|
Condensed Consolidated Balance
Sheets
|
|
|
(A)
|
|
(A)
|
|
|
June
30,
|
|
June
30,
|
|
|
2012
|
|
2011
|
|
|
(In
thousands, except share data)
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
Cash and
cash equivalents
|
$
|
39,123
|
|
$
|
95,263
|
|
Pre-funded
social welfare grants receivable
|
|
9,684
|
|
|
4,579
|
|
Accounts
receivable, net
|
|
101,918
|
|
|
82,780
|
|
Finance
loans receivable
|
|
8,141
|
|
|
8,141
|
|
Deferred
expenditure on smart cards
|
|
4,587
|
|
|
51
|
|
Inventory
|
|
6,192
|
|
|
6,725
|
|
Deferred
income taxes
|
|
5,591
|
|
|
15,882
|
|
Total current assets before settlement
assets
|
|
175,236
|
|
|
213,421
|
|
Settlement
assets
|
|
409,166
|
|
|
186,668
|
|
Total current assets
|
|
584,402
|
|
|
400,089
|
PROPERTY,
PLANT AND EQUIPMENT, NET
|
|
52,616
|
|
|
35,807
|
EQUITY-ACCOUNTED INVESTMENTS
|
|
1,508
|
|
|
1,860
|
GOODWILL
|
|
182,737
|
|
|
209,570
|
INTANGIBLE
ASSETS, NET
|
|
93,930
|
|
|
119,856
|
OTHER
LONG-TERM ASSETS
|
|
40,700
|
|
|
14,463
|
TOTAL
ASSETS
|
|
955,893
|
|
|
781,645
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
Accounts
payable
|
|
13,172
|
|
|
11,360
|
|
Other
payables
|
|
42,157
|
|
|
71,265
|
|
Current
portion of long-term borrowings
|
|
14,019
|
|
|
15,062
|
|
Income
taxes payable
|
|
6,019
|
|
|
6,709
|
|
Total current liabilities before
settlement obligations
|
|
75,367
|
|
|
104,396
|
|
Settlement
obligations
|
|
409,166
|
|
|
186,668
|
|
Total current liabilities
|
|
484,533
|
|
|
291,064
|
DEFERRED
INCOME
TAXES
|
|
20,988
|
|
|
52,785
|
LONG-TERM
BORROWINGS
|
|
79,760
|
|
|
110,504
|
OTHER
LONG-TERM LIABILITIES
|
|
25,791
|
|
|
1,272
|
TOTAL
LIABILITIES
|
|
611,072
|
|
|
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 - June: 45,548,902; 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
|
|
153,360
|
|
|
136,430
|
TREASURY SHARES, AT COST: June: 13,455,090; June:
13,274,434
|
|
(175,823)
|
|
|
(174,694)
|
ACCUMULATED OTHER COMPREHENSIVE LOSS
|
|
(75,722)
|
|
|
(33,779)
|
RETAINED EARNINGS
|
|
439,641
|
|
|
394,990
|
TOTAL NET1 EQUITY
|
|
341,515
|
|
|
323,006
|
NON-CONTROLLING INTEREST
|
|
3,306
|
|
|
3,014
|
TOTAL
EQUITY
|
|
344,821
|
|
|
326,020
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
955,893
|
|
$
|
781,645
|
|
|
|
|
|
|
|
|
(A) –
Derived from audited financial statements
|
|
|
|
|
|
NET 1
UEPS TECHNOLOGIES, INC.
|
Condensed Consolidated Statements of Cash
Flows
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended
|
|
Fiscal
year ended
|
|
June
30,
|
|
June
30,
|
|
|
2012
|
|
2011
|
|
|
2012
|
|
2011
|
|
(In
thousands)
|
|
(In
thousands)
|
Cash
flows from operating activities
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(7,968)
|
$
|
6,859
|
|
$
|
44,665
|
$
|
2,546
|
Depreciation and amortization
|
|
9,305
|
|
9,483
|
|
|
36,499
|
|
34,671
|
Impairment
of intangible asset
|
|
-
|
|
-
|
|
|
-
|
|
41,771
|
(Earnings)
Loss from equity-accounted investments
|
|
(120)
|
|
(170)
|
|
|
(220)
|
|
339
|
Fair value
adjustment
|
|
(1,392)
|
|
73
|
|
|
(3,375)
|
|
728
|
Interest
payable
|
|
4,354
|
|
941
|
|
|
8,823
|
|
2,487
|
Facility
fee amortized
|
|
(126)
|
|
117
|
|
|
389
|
|
1,958
|
(Profit)
Loss on disposal of property, plant and equipment
|
|
(7)
|
|
-
|
|
|
(64)
|
|
(5)
|
Net loss
(profit) on sale of 10% of SmartLife (2012) and VinaPay
(2011)
|
|
-
|
|
5
|
|
|
81
|
|
(14)
|
Profit on
liquidation of subsidiary
|
|
-
|
|
(14)
|
|
|
(3,994)
|
|
-
|
Realized
loss on sale of SmartLife investments
|
|
-
|
|
-
|
|
|
25
|
|
-
|
Stock
compensation charge, net of forfeitures
|
|
893
|
|
-
|
|
|
2,775
|
|
1,720
|
Fair value
of BBBEE equity instrument granted
|
|
14,211
|
|
(2,873)
|
|
|
14,211
|
|
-
|
(Increase)
Decrease in accounts and finance loans receivable, and pre-funded
grants receivable
|
|
(16,653)
|
|
(576)
|
|
|
(31,974)
|
|
(3,568)
|
(Increase)
Decrease in deferred expenditure on smart cards
|
|
(4,484)
|
|
(5,640)
|
|
|
(4,554)
|
|
-
|
(Increase)
Decrease in inventory
|
|
(456)
|
|
452
|
|
|
(717)
|
|
289
|
Decrease
in accounts payable and other payables
|
|
(16,731)
|
|
1,242
|
|
|
(18,534)
|
|
(1,041)
|
Decrease
in taxes payable
|
|
(2,147)
|
|
(7,710)
|
|
|
(7,483)
|
|
(1,800)
|
Decrease
in deferred taxes
|
|
(1,257)
|
|
10,580
|
|
|
(16,147)
|
|
(13,858)
|
Net
cash (used in) provided by operating activities
|
|
(22,578)
|
|
12,769
|
|
|
20,406
|
|
66,223
|
|
|
|
|
|
|
|
|
|
|
Cash
flows from investing activities
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(15,702)
|
|
(5,595)
|
|
|
(39,167)
|
|
(15,053)
|
Proceeds
from disposal of property, plant and equipment
|
|
379
|
|
48
|
|
|
764
|
|
76
|
Acquisitions, net of cash acquired
|
|
-
|
|
-
|
|
|
(6,154)
|
|
-
|
Settlement
from former shareholders of KSNET
|
|
-
|
|
-
|
|
|
4,945
|
|
-
|
Acquisition of available-for-sale
securities
|
|
-
|
|
-
|
|
|
(948)
|
|
(230,225)
|
Purchase
of investments related to SmartLife
|
|
-
|
|
-
|
|
|
(2,320)
|
|
-
|
Proceeds
from maturity of investments related to SmartLife
|
|
-
|
|
-
|
|
|
2,321
|
|
-
|
Proceeds
from disposal of VinaPay
|
|
-
|
|
150
|
|
|
-
|
|
150
|
Acquisition of and advance of loans to
equity-accounted investments
|
|
-
|
|
-
|
|
|
-
|
|
(375)
|
Repayment
of loan by equity-accounted investment
|
|
29
|
|
35
|
|
|
122
|
|
475
|
Other
investing activities, net
|
|
(1)
|
|
35
|
|
|
(1)
|
|
35
|
Net change
in settlement assets
|
|
(381,062)
|
|
(38,980)
|
|
|
(252,101)
|
|
(78,768)
|
Net
cash used in investing activities
|
|
(396,357)
|
|
(44,307)
|
|
|
(292,539)
|
|
(323,685)
|
|
|
|
|
|
|
|
|
|
|
Cash
flows from financing activities
|
|
|
|
|
|
|
|
|
|
Long-term
borrowings (repaid) obtained
|
|
(7,145)
|
|
-
|
|
|
(19,172)
|
|
116,353
|
Acquisition of treasury stock
|
|
-
|
|
(1,023)
|
|
|
(1,129)
|
|
(1,023)
|
Proceeds
on sale of 10% of SmartLife
|
|
-
|
|
-
|
|
|
107
|
|
-
|
Loan
portion related to options
|
|
-
|
|
-
|
|
|
-
|
|
20
|
Payment of
facility fee
|
|
-
|
|
-
|
|
|
-
|
|
(3,088)
|
Repayment
of short-term borrowings
|
|
-
|
|
-
|
|
|
-
|
|
(6,705)
|
Repayment
of bank overdraft
|
|
-
|
|
(462)
|
|
|
-
|
|
(462)
|
Acquisition of remaining 19.9% of Net1 UTA
|
|
-
|
|
-
|
|
|
-
|
|
(594)
|
Net change
in settlement obligations
|
|
381,062
|
|
38,980
|
|
|
252,101
|
|
78,768
|
Net cash generated from financing
activities
|
|
373,917
|
|
37,495
|
|
|
231,907
|
|
183,269
|
Effect
of exchange rate changes on cash
|
|
(4,109)
|
|
416
|
|
|
(15,914)
|
|
15,714
|
Net
(decrease) increase in cash and cash equivalents
|
|
(49,127)
|
|
6,373
|
|
|
(56,140)
|
|
(58,479)
|
Cash
and cash equivalents – beginning of period
|
|
88,250
|
|
88,890
|
|
|
95,263
|
|
153,742
|
Cash
and cash equivalents – end of period
|
$
|
39,123
|
$
|
95,263
|
|
$
|
39,123
|
$
|
95,263
|
Net 1
UEPS Technologies, Inc.
Attachment A
Operating segment revenue, operating (loss) income
and operating margin:
Three
months ended June 30, 2012 and 2011 and March 31,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
- actual
|
Change
– constant
exchange rate(1)
|
Key
segmental data, in '000, except margins
|
Q4
'12
|
|
Q4
'11
|
|
Q3
'12
|
Q4
'12
vs
Q4'11
|
Q4
'12
vs
Q3
'12
|
Q4
'12
vs
Q4
'11
|
Q4
'12
vs
Q3
'12
|
Revenue:
|
|
|
|
|
|
|
|
|
|
SA transaction-based activities
|
$58,434
|
|
$50,267
|
|
$46,423
|
16%
|
26%
|
37%
|
29%
|
International transaction-based activities
|
31,003
|
|
27,900
|
|
28,188
|
11%
|
10%
|
31%
|
13%
|
Smart card accounts
|
8,189
|
|
8,623
|
|
7,558
|
(5%)
|
8%
|
12%
|
11%
|
Financial services
|
1,777
|
|
2,278
|
|
2,289
|
(22%)
|
(22%)
|
(8%)
|
(21%)
|
Hardware, software and related technology
sales
|
8,213
|
|
8,300
|
|
6,206
|
(1%)
|
32%
|
17%
|
35%
|
Total consolidated revenue
|
$107,616
|
|
$97,368
|
|
$90,664
|
11%
|
19%
|
30%
|
21%
|
|
|
|
|
|
|
|
|
|
|
Consolidated operating (loss)
income:
|
|
|
|
|
|
|
|
|
|
SA transaction-based activities
|
$5,181
|
|
$20,776
|
|
$8,694
|
(75%)
|
(40%)
|
(71%)
|
(39%)
|
Operating income excluding amortization
|
6,809
|
|
22,241
|
|
10,452
|
(69%)
|
(35%)
|
(64%)
|
(33%)
|
Amortization of intangible assets
|
(1,628)
|
|
(1,465)
|
|
(1,758)
|
11%
|
(7%)
|
31%
|
(5%)
|
International transaction-based activities
|
137
|
|
75
|
|
195
|
83%
|
(30%)
|
116%
|
(28%)
|
Operating income excluding amortization
|
3,130
|
|
3,521
|
|
3,387
|
(11%)
|
(8%)
|
5%
|
(5%)
|
Amortization of intangible assets
|
(2,993)
|
|
(3,446)
|
|
(3,192)
|
(13%)
|
(6%)
|
2%
|
(4%)
|
Smart card accounts
|
2,333
|
|
3,919
|
|
3,435
|
(40%)
|
(32%)
|
(30%)
|
(31%)
|
Financial services
|
951
|
|
1,634
|
|
1,248
|
(42%)
|
(24%)
|
(31%)
|
(22%)
|
Hardware, software and related technology
sales
|
2,074
|
|
(1,898)
|
|
(1,301)
|
nm
|
nm
|
nm
|
nm
|
Operating income excluding amortization
|
2,164
|
|
(1,731)
|
|
(1,209)
|
nm
|
nm
|
nm
|
nm
|
Amortization of intangible assets
|
(90)
|
|
(167)
|
|
(92)
|
(46%)
|
(2%)
|
(36%)
|
0%
|
Corporate/ Eliminations
|
(13,078)
|
|
2,087
|
|
207
|
nm
|
nm
|
nm
|
nm
|
Total operating (loss) income
|
$(2,402)
|
|
$26,593
|
|
$12,478
|
nm
|
nm
|
nm
|
nm
|
|
|
|
|
|
|
|
|
|
|
Operating income margin (%)
|
|
|
|
|
|
|
|
|
|
SA transaction-based activities
|
9%
|
|
41%
|
|
19%
|
|
|
|
|
International transaction-based activities
|
0%
|
|
0%
|
|
1%
|
|
|
|
|
International transaction-based activities excluding
amortization
|
10%
|
|
13%
|
|
12%
|
|
|
|
|
Smart card accounts
|
29%
|
|
45%
|
|
45%
|
|
|
|
|
Financial services
|
54%
|
|
72%
|
|
55%
|
|
|
|
|
Hardware, software and related technology
sales
|
25%
|
|
(23%)
|
|
(21%)
|
|
|
|
|
Overall operating margin
|
(2%)
|
|
27%
|
|
14%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
– This information shows what the change in these items would have
been if the USD/ ZAR exchange rate that prevailed during Q4 2012
also prevailed during Q4 2011 and Q3 2012
|
Fiscal
year ended June 30, 2012 and 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
- actual
|
Change
–
constant exchange
rate(1)
|
Key
segmental data, in '000, except margins
|
F2012
|
|
F2011
|
|
F2012
vs
F2011
|
F2012
vs
F2011
|
Revenue:
|
|
|
|
|
|
|
SA transaction-based activities
|
$201,207
|
|
$189,206
|
|
6%
|
17%
|
International transaction-based activities
|
118,281
|
|
70,382
|
|
100%
|
100%
|
Smart card accounts
|
31,263
|
|
33,315
|
|
(6%)
|
4%
|
Financial services
|
8,121
|
|
7,350
|
|
10%
|
22%
|
Hardware, software and related technology
sales
|
31,392
|
|
43,167
|
|
(27%)
|
(20%)
|
Total consolidated revenue
|
$390,264
|
|
$343,420
|
|
14%
|
25%
|
|
|
|
|
|
|
|
Consolidated operating income
(loss):
|
|
|
|
|
|
|
SA transaction-based activities
|
$49,824
|
|
$75,668
|
|
(34%)
|
(27%)
|
Operating income excluding amortization
|
55,995
|
|
81,370
|
|
(31%)
|
(24%)
|
Amortization of intangible assets
|
(6,171)
|
|
(5,702)
|
|
8%
|
19%
|
International transaction-based activities
|
1,257
|
|
(220)
|
|
(671%)
|
(730%)
|
Operating income excluding amortization
|
14,272
|
|
8,382
|
|
70%
|
88%
|
Amortization of intangible assets
|
(13,015)
|
|
(8,602)
|
|
51%
|
67%
|
Smart card accounts
|
12,820
|
|
15,140
|
|
(15%)
|
(7%)
|
Financial services
|
4,636
|
|
4,999
|
|
(7%)
|
2%
|
Hardware, software and related technology
sales
|
3,619
|
|
(48,372)
|
|
(107%)
|
(108%)
|
Operating income excluding amortization
|
3,990
|
|
787
|
|
407%
|
459%
|
Impairment of intangible assets
|
-
|
|
(41,771)
|
|
nm
|
nm
|
Amortization of intangible assets
|
(371)
|
|
(7,388)
|
|
(95%)
|
(94%)
|
Corporate/ Eliminations
|
(11,006)
|
|
(9,787)
|
|
12%
|
24%
|
Total operating income
|
$61,150
|
|
$37,428
|
|
63%
|
80%
|
|
|
|
|
|
|
|
Operating income margin (%)
|
|
|
|
|
|
|
SA transaction-based activities
|
25%
|
|
40%
|
|
|
|
International transaction-based activities
|
1%
|
|
(0%)
|
|
|
|
International transaction-based activities excluding
amortization
|
12%
|
|
12%
|
|
|
|
Smart card accounts
|
41%
|
|
45%
|
|
|
|
Financial services
|
57%
|
|
68%
|
|
|
|
Hardware, software and related technology
sales
|
12%
|
|
(112%)
|
|
|
|
Overall operating margin
|
16%
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
(1)
– This information shows what the change in these items would have
been if the USD/ ZAR exchange rate that prevailed during fiscal
2012 also prevailed during fiscal 2011
|
Net 1
UEPS Technologies, Inc.
Attachment B
Reconciliation of GAAP net (loss) income and
(loss) earnings per share, basic, to fundamental net income and
earnings per share, basic:
Three
months ended June 30, 2012 and 2011
|
|
|
|
|
|
|
|
Net
(loss) income
(USD'000)
|
(L)EPS,
basic
(USD)
|
|
Net
(loss) income
(ZAR'000)
|
(L)EPS,
basic
(ZAR)
|
|
2012
|
2011
|
2012
|
2011
|
|
2012
|
2011
|
2012
|
2011
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
(7,977)
|
6,832
|
(0.17)
|
0.15
|
|
(64,078)
|
46,517
|
(1.41)
|
1.03
|
|
|
|
|
|
|
|
|
|
|
Intangible
asset amortization, net
|
3,532
|
3,646
|
|
|
|
28,381
|
24,828
|
|
|
Stock-based compensation charge
|
893
|
(2,873)
|
|
|
|
7,173
|
(19,561)
|
|
|
Facility
fees for KSNET debt
|
84
|
118
|
|
|
|
675
|
803
|
|
|
BBBEE
charge
|
14,211
|
-
|
|
|
|
112,066
|
-
|
|
|
Capital
taxes paid
|
1,465
|
|
|
|
|
11,768
|
|
|
|
Valuation
allowances
|
-
|
8,856
|
|
|
|
-
|
60,298
|
|
|
Restructuring charges at Net1UTA
|
-
|
637
|
|
|
|
-
|
4,337
|
|
|
Acquisition-related costs
|
-
|
391
|
|
|
|
-
|
2,664
|
|
|
Fundamental
|
12,208
|
17,607
|
0.27
|
0.39
|
|
95,985
|
119,886
|
2.11
|
2.66
|
|
|
|
|
|
|
|
|
|
|
Fiscal
year ended June 30, 2012 and 2011
|
|
|
|
|
|
|
|
|
|
|
Net
income
(USD'000)
|
EPS,
basic
(USD)
|
|
Net
Income
(
ZAR'000)
|
EPS,
basic
(ZAR)
|
|
2012
|
2011
|
2012
|
2011
|
|
2012
|
2011
|
2012
|
2011
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
44,651
|
2,647
|
0.99
|
0.06
|
|
344,643
|
18,518
|
7.63
|
0.41
|
|
|
|
|
|
|
|
|
|
|
Intangible
asset amortization, net
|
14,602
|
15,708
|
|
|
|
112,719
|
109,897
|
|
|
Stock-based compensation charge
|
2,775
|
1,717
|
|
|
|
21,419
|
12,012
|
|
|
Facility
fees for KSNET debt
|
389
|
1,953
|
|
|
|
3,003
|
13,664
|
|
|
Change in
tax law
|
(18,315)
|
-
|
|
|
|
(150,373)
|
-
|
|
|
BBBEE
charge
|
14,211
|
-
|
|
|
|
112,066
|
-
|
|
|
Valuation
allowances
|
8,232
|
8,856
|
|
|
|
67,588
|
61,958
|
|
|
Profit on
liquidation of subsidiary
|
(3,994)
|
-
|
|
|
|
(30,828)
|
-
|
|
|
Capital
taxes paid
|
1,465
|
-
|
|
|
|
11,308
|
-
|
|
|
Loss on
sale of 10% of SmartLife
|
78
|
-
|
|
|
|
602
|
-
|
|
|
Intangible
assets impairment, net
|
-
|
31,339
|
|
|
|
-
|
219,254
|
|
|
Acquisition-related costs
|
-
|
6,049
|
|
|
|
-
|
42,319
|
|
|
Restructuring charges at Net1UTA
|
-
|
777
|
|
|
|
-
|
5,436
|
|
|
Gain on
FEC, net
|
-
|
(114)
|
|
|
|
-
|
(798)
|
|
|
Fundamental
|
64,094
|
68,932
|
1.42
|
1.53
|
|
492,147
|
482,260
|
10.89
|
10.68
|
|
|
|
|
|
|
|
|
|
|
Net 1
UEPS Technologies, Inc.
Attachment C
Reconciliation of net income (loss) used to
calculate earnings (loss) per share basic and diluted and headline
earnings per share basic and diluted:
Three
months ended June 30, 2012 and 2011
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
Net (loss)
income (USD'000)
|
(7,977)
|
|
6,832
|
Adjustments:
|
|
|
|
(Profit) Loss on sale of property, plant and
equipment
|
(7)
|
|
5
|
Tax effects on above
|
2
|
|
(2)
|
|
|
|
|
Net (loss)
income used to calculate headline earnings (USD'000)
|
(7,982)
|
|
6,835
|
|
|
|
|
Weighted
average number of shares used to calculate net (loss) income
per share basic (loss) earnings and headline (loss) earnings
per share basic (loss) earnings ('000)
|
45,498
|
|
45,452
|
|
|
|
|
Weighted
average number of shares used to calculate net (loss) income per
share diluted (loss) earnings and headline (loss) earnings per
share diluted (loss) earnings ('000)
|
45,568
|
|
45,559
|
|
|
|
|
Headline
(loss) earnings per share:
|
|
|
|
Basic, in USD
|
(0.17)
|
|
0.15
|
Diluted, in USD
|
(0.17)
|
|
0.15
|
Fiscal
year ended June 30, 2012 and 2011
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
Net income
(USD'000)
|
44,651
|
|
2,647
|
Adjustments:
|
|
|
|
Profit on liquidation of subsidiary
|
(3,994)
|
|
-
|
Loss on sale of 10% of SmartLife
|
78
|
|
-
|
Intangible assets impairment
|
-
|
|
41,771
|
Profit on sale of property, plant and
equipment
|
(64)
|
|
(5)
|
Tax effects on above
|
18
|
|
(10,430)
|
|
|
|
|
Net income
used to calculate headline earnings (USD'000)
|
40,689
|
|
33,983
|
|
|
|
|
Weighted
average number of shares used to calculate net income per share
basic earnings and headline earnings per share basic earnings
('000)
|
45,186
|
|
45,175
|
|
|
|
|
Weighted
average number of shares used to calculate net income per share
diluted earnings and headline earnings per share diluted earnings
('000)
|
45,246
|
|
45,231
|
|
|
|
|
Headline
earnings per share:
|
|
|
|
Basic, in USD
|
0.90
|
|
0.75
|
Diluted, in USD
|
0.90
|
|
0.75
|
SOURCE Net 1 UEPS Technologies, Inc.