UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date of Report (Date of earliest event reported): November 6,
2014
NET 1 UEPS TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
| Florida |
000-31203 |
98-0171860 |
| (State or other jurisdiction |
(Commission |
(IRS Employer |
| of incorporation) |
File Number) |
Identification No.) |
| President Place, 4th
Floor, Cnr. Jan Smuts Avenue and Bolton Road |
| Rosebank, Johannesburg, South Africa
|
|
(Address of principal executive offices)
|
(ZIP Code) |
Registrant’s telephone number, including area code:
011-27-11-343-2000
Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a -12)
[ ] Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))
[ ] Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))
Item 2.02. Results of Operations and Financial Condition.
The following information is furnished pursuant to Item 2.02,
“Results of Operations and Financial Condition”.
On November 6, 2014, we issued a press release setting forth
our financial results for the first quarter ended September 30, 2014. A copy of
the press release is attached as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
SIGNATURES
Pursuant to the requirements of
the Securities Exchange Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned hereunto duly authorized.
| |
NET 1 UEPS TECHNOLOGIES, INC. |
| |
|
| |
|
| Date: November 6, 2014 |
By: /s/ Serge Belamant |
| |
Dr. Serge C.P.
Belamant |
| |
Chief Executive
Officer and Chairman of |
| |
the Board
|
Net 1 UEPS Technologies, Inc. Reports First Quarter 2015
Results
- Q1 2015 Revenue and FEPS of $156.4 million and $0.60, a constant
currency increase of 36% and 74% respectively.
- SASSA has issued RFP for five-year contract related to payment of
social welfare grants.
JOHANNESBURG, November 6, 2014 – Net 1 UEPS Technologies, Inc.
(Nasdaq: UEPS; JSE: NT1) today released results for the first quarter of fiscal
2015.
Summary Financial Metrics
| |
|
Three months ended September 30, |
|
| |
|
|
|
|
|
|
|
% change |
|
|
% change |
|
| |
|
2014 |
|
|
2013 |
|
|
in USD |
|
|
in ZAR |
|
| (All figures in USD ‘000s except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
156,441 |
|
|
123,494 |
|
|
27% |
|
|
36% |
|
| GAAP net income |
|
24,089 |
|
|
11,596 |
|
|
108% |
|
|
123% |
|
| Fundamental net income (1) |
|
28,155 |
|
|
16,823 |
|
|
67% |
|
|
80% |
|
| GAAP earnings per share ($) |
|
0.51 |
|
|
0.25 |
|
|
101% |
|
|
116% |
|
| Fundamental earnings per share ($) (1) |
|
0.60 |
|
|
0.37 |
|
|
62% |
|
|
74% |
|
| Fully-diluted shares outstanding (‘000’s) |
|
47,335 |
|
|
45,801 |
|
|
4% |
|
|
|
|
| Average period USD/ ZAR exchange rate |
|
10.76 |
|
|
10.00 |
|
|
8% |
|
|
|
|
(1) Fundamental net income and earnings per share are non-GAAP
measures and are 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 to fundamental net income and earnings per
share.
Factors impacting comparability of our Q1 2015 and Q1 2014
results
- Unfavorable impact from the strengthening of the US dollar against
the ZAR: The US dollar appreciated by 7% against the ZAR during Q1
2015, which negatively impacted our reported results;
- Increased contribution by KSNET: Our results were positively
impacted by growth in our Korean operations;
- Increase in the number SASSA grants paid: Our revenue and
operating income has increased as a result of the higher number of SASSA
UEPS/EMV cardholders paid during Q1 2015 compared with Q1 2014; and
- Continued growth in financial inclusion services: We
continued to grow our financial inclusion services offerings during Q1 2015,
which has result in higher revenues and operating income from more sales of
low-margin prepaid airtime and UEPS-based lending.
Comments and Outlook
"Our superb results for Q1 2015, once again reflect our continued focus on growing our existing businesses and implementing carefully selected new initiatives," said Dr. Serge Belamant, Chairman and CEO of Net1. "We achieved these results despite using significant management bandwidth to repel our detractors' attempts to disrupt our business, while at the same time preparing for the new SASSA tender," he concluded.
"We are pleased with the sustained momentum of our quarterly operating results, which underpins our fiscal 2015 targets," said Herman Kotze, Chief Financial Officer of Net1. "For fiscal 2015, we now expect fundamental earnings per share of at least $2.14, assuming a constant currency base of ZAR10.40/$1 and a share count of 46.5 million shares," he concluded.
SASSA issues Request for Proposal for five-year contract
relating to the payment of social grants
As ordered by the South African Constitutional Court in its
April 2014 ruling, SASSA has initiated a new tender process for a five-year
contract relating to the payment of social grants. SASSA issued a request for
proposals on October 22, 2014. Bidders are required to submit proposals by
December 12, 2014. We cannot predict with certainty what the timing or ultimate
outcome of the tender process will be, or if a new tender award will be made at
all after the process is complete. We intend to participate in the new
tender.
Results of Operations by Segment and Liquidity
Our operating metrics will be updated and posted on our website
(www.net1.com).
South African transaction processing
The South African transaction processing segment consists
mainly of pension and welfare benefit distribution services provided to the
South African government, and transaction processing for retailers, utilities,
medical-related claim service customers and banks.
Segment revenue was $60.3 million in Q1 2015, up 5% compared
with Q1 2014 in USD and up 13% on a constant currency basis. In ZAR, the
increase in segment revenues was primarily due to more low-margin transaction
fees generated from beneficiaries using the South African National Payment
System and more intersegment transaction processing activities. In addition,
revenue from the distribution of social welfare grants grew modestly during the
year and was in-line with the increase in unique welfare cardholder recipients,
net of removal of invalid and fraudulent beneficiaries, partially offset by the
loss of MediKredit revenue as a result of the sale of that business. Segment
operating income margin in Q1 2015 and Q1 2014 was 23% and 11%, respectively,
and has increased primarily due to more higher-margin intersegment transaction
processing activities, the elimination of MediKredit losses and an increase in
the number of beneficiaries paid in fiscal 2015.
International transaction processing
The International transaction processing segment consists
mainly of payment processing services for merchants and card issuers in South
Korea. The segment also includes transaction processing of UEPS-enabled
smartcards in Botswana and transaction processing of medical-related claims in
the United States.
KSNET contributes the majority of our revenues and operating
income in this segment. Segment revenue was $43.2 million in Q1 2015, up 15%
compared with Q1 2014 in USD and 24% on a constant currency basis. Revenue and
operating income increased primarily due to higher transaction volume at KSNET
during Q1 2015. Segment operating income margin in Q1 2015 and Q1 2014 was 17%
and 15%, respectively.
Financial inclusion and applied technologies
The Financial inclusion and applied technologies segment
includes our smart card accounts, lending and life insurance businesses. This
segment also includes the economics from merchants and card holders using our
merchant acquiring system, the sale of prepaid products (electricity and
airtime) and the sale of hardware and software.
Segment revenue was $65.2 million in Q1 2015, up 77% compared
with Q1 2014 in USD and 91% on a constant currency basis. Revenue and operating
income increased primarily due to higher prepaid airtime sales driven by the
rollout of our prepaid airtime product, an increase in the number of UEPS-based
loans as we rolled out our product nationally and an increase in intersegment
revenues, offset by lower ad hoc terminal and smart card sales. Q1 2014
operating income includes expenses related to the national roll-out of our
UEPS-based lending offering and the establishment of the allowance for doubtful
finance loans in Q1 2014. Smart Life did not contribute to operating income in
Q1 2015 and 2014 due to the FSB suspension of its license.
Notwithstanding the national roll-out expenses incurred in
fiscal 2014, operating income margin for the Financial inclusion and applied
technologies segment decreased to 27% from 35%, primarily as a result of more
low-margin prepaid airtime and the sale of competitively priced financial
inclusion products to address the needs of the broader market.
Corporate/eliminations
Corporate/eliminations generally includes acquisition-related
intangible asset amortization; expenditure related to compliance with the
Sarbanes-Oxley Act of 2002; non-employee directors’ fees; employee and executive
bonuses; stock-based compensation; legal fees; audit fees; directors and
officers insurance premiums; telecommunications expenses; property-related
expenditures including utilities, rental, security and maintenance; and
elimination entries.
The decrease in our corporate expenses was primarily due to
lower US government investigations-related and US lawsuit expenses, audit fees
and other corporate head office-related expenses, which was partially offset by
increases in acquisition-related intangible asset amortization.
Cash flow and liquidity
At September 30, 2014, we had cash and cash equivalents of
$81.2 million, up from $58.7 million at June 30, 2014. The increase in our cash
balances from June 30, 2014, was primarily due to the expansion of our all of
our core businesses during the quarter, and to a lesser extent due to the cash
conservation resulting from the sale of loss incurring businesses.
Excluding the impact of interest received, interest paid under
our Korean debt and taxes presented in the table below, the increase in cash
from operating activities resulted from improved trading activity during fiscal
2015. Capital expenditures for Q1 2015 and 2014 were $9.4 million and $5.6
million, respectively, and have increased primarily due to the acquisition of
more payment processing terminals in South 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 and earnings per share 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
amortization of KSNET debt facility fees and US government
investigations-related and US lawsuit expenses. 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 profit 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
To participate in the call, dial 1-855-481-5362 (US and
Canada), 0808-162-4061 (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 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
November 30, 2014.
About Net1 (www.net1.com)
Net1 is a leading provider of alternative payment systems that
leverage its Universal Electronic Payment System (“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. Net1's UEPS/EMV solution is interoperable with
global EMV standards that seamlessly permit access to all the UEPS functionality
in a traditional EMV 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
and the Republic of Korea. In addition, Net1's proprietary MVC technology offers
secure mobile payments and banking services in developed and emerging countries.
Net1 has a primary listing on NASDAQ and a secondary listing on
the Johannesburg Stock Exchange.
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.
Investor Relations Contact:
Dhruv Chopra
Head of
Investor Relations
Phone: +1 917-767-6722
Email: dchopra@net1.com
NET 1 UEPS TECHNOLOGIES, INC.
Unaudited Condensed
Consolidated Statements of Operations
| |
|
Three months ended |
|
| |
|
September 30, |
|
| |
|
2014 |
|
|
2013 |
|
| |
|
(In thousands, except
per share data) |
|
| REVENUE |
$ |
156,441
|
|
$ |
123,494
|
|
| EXPENSE |
|
|
|
|
|
|
|
Cost of goods sold, IT processing, servicing and support |
|
74,406 |
|
|
56,559 |
|
| Selling,
general and administration |
|
38,736 |
|
|
40,506 |
|
|
Depreciation and amortization |
|
10,174 |
|
|
10,029 |
|
| OPERATING INCOME |
|
33,125 |
|
|
16,400 |
|
| INTEREST INCOME |
|
4,090 |
|
|
3,319 |
|
| INTEREST EXPENSE |
|
1,312 |
|
|
1,752 |
|
| INCOME BEFORE INCOME TAX
EXPENSE |
|
35,903 |
|
|
17,967 |
|
| INCOME TAX EXPENSE |
|
11,648 |
|
|
6,485 |
|
| NET INCOME BEFORE EARNINGS
FROM EQUITY-ACCOUNTED |
|
|
|
|
|
|
| INVESTMENTS |
|
24,255 |
|
|
11,482 |
|
| EARNINGS FROM
EQUITY-ACCOUNTED INVESTMENTS |
|
92 |
|
|
103 |
|
| NET INCOME |
|
24,347 |
|
|
11,585 |
|
| LESS (ADD) NET (INCOME) LOSS
ATTRIBUTABLE TO NON- |
|
|
|
|
|
|
| CONTROLLING INTEREST |
|
258 |
|
|
(11 |
) |
| NET INCOME ATTRIBUTABLE TO
NET1 |
$ |
24,089 |
|
$ |
11,596 |
|
| Net income per share, in United States
dollars |
|
|
|
|
|
|
|
Basic earnings attributable to Net1 shareholders |
$ |
0.51 |
|
$ |
0.25 |
|
| Diluted
earnings attributable to Net1 shareholders |
$ |
0.51 |
|
$ |
0.25 |
|
NET 1 UEPS TECHNOLOGIES, INC.
Unaudited Condensed
Consolidated Balance Sheets
| |
|
Unaudited |
|
|
(A) |
|
| |
|
September 30, |
|
|
June 30, |
|
| |
|
2014 |
|
|
2014 |
|
| |
|
(In thousands, except
share data) |
|
| ASSETS |
|
| CURRENT ASSETS |
|
|
|
|
|
|
| Cash and cash equivalents
|
$ |
81,185 |
|
$ |
58,672 |
|
|
Pre-funded social welfare grants receivable |
|
4,863 |
|
|
4,809 |
|
| Accounts receivable, net
of allowances of – September: $2,075; June: $1,313 |
|
136,701 |
|
|
148,067 |
|
| Finance
loans receivable, net of allowances of – September: $3,136; June: $3,083
|
|
53,884 |
|
|
53,124 |
|
| Inventory |
|
12,200 |
|
|
10,785 |
|
| Deferred
income taxes |
|
7,045 |
|
|
7,451 |
|
|
Total current assets before settlement assets |
|
295,878 |
|
|
282,908 |
|
|
Settlement assets |
|
724,279 |
|
|
725,987 |
|
|
Total
current assets |
|
1,020,157 |
|
|
1,008,895 |
|
| PROPERTY, PLANT AND
EQUIPMENT, net of accumulated depreciation of – |
|
|
|
|
|
|
| September: $92,753; June: $91,422 |
|
48,739 |
|
|
47,797 |
|
| EQUITY-ACCOUNTED INVESTMENTS
|
|
934 |
|
|
878 |
|
| GOODWILL |
|
179,003 |
|
|
186,576 |
|
| INTANGIBLE ASSETS, net of
accumulated amortization of – September: $79,458; June: $78,781 |
|
62,148 |
|
|
68,514 |
|
| OTHER LONG-TERM ASSETS, including reinsurance
assets |
|
36,533 |
|
|
38,285 |
|
| TOTAL
ASSETS |
|
1,347,514 |
|
|
1,350,945 |
|
| LIABILITIES
|
|
| CURRENT LIABILITIES |
|
|
|
|
|
|
| Accounts payable |
|
14,941 |
|
|
17,101 |
|
| Other
payables |
|
43,346 |
|
|
42,257 |
|
| Current portion of
long-term borrowings |
|
14,276 |
|
|
14,789 |
|
| Income
taxes payable |
|
13,581 |
|
|
7,676 |
|
|
Total current liabilities before settlement obligations |
|
86,144 |
|
|
81,823 |
|
| Settlement obligations |
|
724,279 |
|
|
725,987 |
|
|
Total
current liabilities |
|
810,423 |
|
|
807,810 |
|
| DEFERRED INCOME TAXES |
|
14,078 |
|
|
15,522 |
|
| LONG-TERM BORROWINGS |
|
61,288 |
|
|
62,388 |
|
| OTHER LONG-TERM LIABILITIES,
including insurance policy liabilities |
|
22,396 |
|
|
23,477 |
|
| TOTAL LIABILITIES
|
|
908,185 |
|
|
909,197 |
|
| COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
| EQUITY |
|
| COMMON
STOCK |
|
|
|
|
|
|
| Authorized:
200,000,000 with $0.001 par value; Issued and outstanding shares, net of
treasury - September: 46,475,623; June: 47,819,299 |
|
64 |
|
|
63 |
|
| PREFERRED
STOCK |
|
|
|
|
|
|
|
Authorized shares: 50,000,000 with $0.001 par value;
|
|
|
|
|
|
|
|
Issued and outstanding shares, net of
treasury: September: -; June: - |
|
- |
|
|
- |
|
| ADDITIONAL
PAID-IN-CAPITAL |
|
210,708 |
|
|
202,401 |
|
| TREASURY
SHARES, AT COST: September: 18,057,228; June: 15,883,212 |
|
(214,520 |
)
|
|
(200,681 |
)
|
| ACCUMULATED OTHER
COMPREHENSIVE LOSS |
|
(104,126 |
) |
|
(82,741 |
) |
| RETAINED
EARNINGS |
|
547,222 |
|
|
522,729 |
|
|
TOTAL NET1 EQUITY |
|
439,348 |
|
|
441,771 |
|
|
NON-CONTROLLING INTEREST |
|
(19 |
)
|
|
(23 |
)
|
|
TOTAL EQUITY |
|
439,329 |
|
|
441,748 |
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
1,347,514 |
|
$ |
1,350,945 |
|
(A) – Derived from audited financial statements
NET 1 UEPS TECHNOLOGIES, INC.
Unaudited Condensed
Consolidated Statements of Cash Flows
| |
|
Three months ended |
|
| |
|
September 30, |
|
| |
|
2014 |
|
|
2013 |
|
| |
|
(In thousands) |
|
|
Cash flows from operating
activities |
|
|
|
|
|
|
|
Net income |
$ |
24,347 |
|
$ |
11,585 |
|
|
Depreciation and amortization
|
|
10,174 |
|
|
10,029 |
|
|
Earnings from equity-accounted investments
|
|
(92 |
) |
|
(103 |
) |
|
Fair value adjustments |
|
413 |
|
|
(133 |
)
|
|
Interest payable |
|
1,159 |
|
|
972 |
|
|
Profit on disposal of plant
and equipment |
|
(122 |
)
|
|
(1 |
)
|
|
Stock-based compensation charge |
|
916 |
|
|
930 |
|
|
Facility fee amortized |
|
82 |
|
|
69 |
|
|
Decrease (Increase) in accounts receivable,
pre-funded social welfare grants receivable |
|
|
|
|
|
|
|
and finance loans receivable
|
|
9,470 |
|
|
(23,101 |
)
|
|
(Increase) Decrease in inventory |
|
(2,123 |
) |
|
1,011 |
|
|
Decrease in accounts payable
and other payables |
|
(10,933 |
)
|
|
(8,668 |
)
|
|
Increase in taxes payable |
|
6,611 |
|
|
6,921 |
|
|
Decrease in deferred taxes
|
|
(390 |
)
|
|
(1,187 |
)
|
|
Net cash provided by (used
in) operating activities |
|
39,512 |
|
|
(1,676 |
) |
|
Cash flows from investing
activities |
|
|
|
|
|
|
|
Capital expenditures |
|
(9,378 |
) |
|
(5,616 |
) |
|
Proceeds from disposal of
property, plant and equipment |
|
241 |
|
|
48 |
|
|
Proceeds from sale of business |
|
1,895 |
|
|
- |
|
|
Other investing activities,
net |
|
- |
|
|
(1 |
)
|
|
Net change in settlement assets |
|
(43,054 |
) |
|
51,773 |
|
|
Net cash
(used in) provided by investing activities |
|
(50,296 |
)
|
|
46,204 |
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
Acquisition of treasury stock
|
|
(9,151 |
)
|
|
- |
|
|
Sale of equity to non-controlling interest
|
|
1,407 |
|
|
- |
|
|
Long-term borrowings utilized
|
|
1,097 |
|
|
- |
|
|
Proceeds from issue of common stock |
|
989 |
|
|
- |
|
|
Net change in settlement
obligations |
|
43,054 |
|
|
(51,773 |
)
|
|
Net cash provided by (used
in) financing activities |
|
37,396 |
|
|
(51,773 |
) |
|
Effect of exchange rate
changes on cash |
|
(4,099 |
)
|
|
1,250 |
|
|
Net increase (decrease) in cash and cash
equivalents |
|
22,513 |
|
|
(5,995 |
) |
|
Cash and cash equivalents
– beginning of period |
|
58,672 |
|
|
53,665 |
|
|
Cash and cash equivalents – end of
period |
$ |
81,185 |
|
$ |
47,670 |
|
Net 1 UEPS Technologies, Inc.
Attachment A
Operating segment revenue, operating income and operating margin:
Three months ended September 30, 2014 and 2013 and June 30, 2014
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change –
constant |
|
| |
|
|
|
|
|
|
|
|
|
|
Change - actual |
|
|
exchange rate(1) |
|
| |
|
|
|
|
|
|
|
|
|
|
Q1 ‘15 |
|
|
Q1 ‘15 |
|
|
Q1 ‘15 |
|
|
Q1 ‘15 |
|
| |
|
|
|
|
|
|
|
|
|
|
vs |
|
|
vs |
|
|
vs |
|
|
vs |
|
|
Key segmental data, in $
’000, Revenue: |
|
Q1 ‘15 |
|
|
Q1 ‘14 |
|
|
Q4 ‘14 |
|
|
Q1‘14 |
|
|
Q4 ‘14 |
|
|
Q1‘14 |
|
|
Q4 ‘14 |
|
|
South African transaction processing |
$ |
60,252 |
|
$ |
57,161 |
|
$ |
88,265 |
|
|
5% |
|
|
(32% |
) |
|
13% |
|
|
(30% |
) |
|
International transaction
processing |
|
43,204 |
|
|
37,541 |
|
|
42,201 |
|
|
15% |
|
|
2% |
|
|
24% |
|
|
6% |
|
|
Financial inclusion and applied technologies
|
|
65,197 |
|
|
36,796 |
|
|
64,093 |
|
|
77% |
|
|
2% |
|
|
91% |
|
|
5% |
|
|
Subtotal: Operating segments |
|
168,653 |
|
|
131,498 |
|
|
194,559 |
|
|
28% |
|
|
(13% |
)
|
|
38% |
|
|
(11% |
)
|
|
Intersegment eliminations |
|
(12,212 |
) |
|
(8,004 |
) |
|
(11,806 |
) |
|
53% |
|
|
3% |
|
|
64% |
|
|
7% |
|
|
Consolidated
revenue |
$ |
156,441 |
|
$ |
123,494 |
|
$ |
182,753 |
|
|
27% |
|
|
(14% |
)
|
|
36% |
|
|
(12% |
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South African transaction processing |
$ |
13,639 |
|
$ |
6,461 |
|
$ |
38,675 |
|
|
111% |
|
|
(65% |
) |
|
127% |
|
|
(64% |
) |
|
International transaction
processing |
|
7,349 |
|
|
5,524 |
|
|
6,647 |
|
|
33% |
|
|
11% |
|
|
43% |
|
|
14% |
|
|
Financial inclusion and applied technologies
|
|
17,607 |
|
|
12,835 |
|
|
18,126 |
|
|
37% |
|
|
(3% |
) |
|
48% |
|
|
0% |
|
|
Subtotal: Operating segments |
|
38,595 |
|
|
24,820 |
|
|
63,448 |
|
|
55% |
|
|
(39% |
)
|
|
67% |
|
|
(37% |
)
|
|
Corporate/Eliminations |
|
(5,470 |
) |
|
(8,420 |
) |
|
(20,801 |
) |
|
(35% |
) |
|
(74% |
) |
|
(30% |
) |
|
(73% |
) |
|
Consolidated operating income |
$ |
33,125 |
|
$ |
16,400 |
|
$ |
42,647 |
|
|
102% |
|
|
(22% |
)
|
|
117% |
|
|
(20% |
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income margin
(%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South African transaction processing |
|
23% |
|
|
11% |
|
|
44% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International transaction
processing |
|
17% |
|
|
15% |
|
|
16% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial inclusion and applied technologies
|
|
27% |
|
|
35% |
|
|
28% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated operating margin |
|
21% |
|
|
13% |
|
|
23% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) – This information shows what the change in these
items would have been if the USD/ ZAR exchange rate that prevailed during the
first quarter of fiscal 2015 also prevailed during the first quarter of fiscal
2014 and the fourth quarter of fiscal 2014.
Net 1 UEPS Technologies, Inc.
Attachment
B
Reconciliation of GAAP net income and earnings per share,
basic, to fundamental net income and earnings per share, basic:
Three months ended September 30, 2014 and 2013
| |
|
|
|
|
|
|
|
EPS,
|
|
|
|
|
|
|
|
|
EPS,
|
|
| |
|
Net income
|
|
|
basic
|
|
|
Net income
|
|
|
basic
|
|
| |
|
(USD’000)
|
|
|
(USD) |
|
|
(ZAR’000) |
|
|
(ZAR) |
|
| |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP
|
|
24,089
|
|
|
11,596
|
|
|
0.51 |
|
|
0.25 |
|
|
258,789
|
|
|
115,959
|
|
|
5.48
|
|
|
2.54
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset amortization, net . |
|
2,941 |
|
|
2,832 |
|
|
|
|
|
|
|
|
31,601 |
|
|
28,317 |
|
|
|
|
|
|
|
| Stock-based compensation
charge |
|
916 |
|
|
930 |
|
|
|
|
|
|
|
|
9,854 |
|
|
9,300 |
|
|
|
|
|
|
|
| Facility
fees for KSNET debt |
|
82 |
|
|
69 |
|
|
|
|
|
|
|
|
882 |
|
|
690 |
|
|
|
|
|
|
|
| US government investigations- related and US
lawsuit expenses |
|
127
|
|
|
1,396
|
|
|
|
|
|
|
|
|
1,366
|
|
|
13,960
|
|
|
|
|
|
|
|
|
Fundamental |
|
28,155 |
|
|
16,823 |
|
|
0.60 |
|
|
0.37 |
|
|
302,492 |
|
|
168,226 |
|
|
6.41
|
|
|
3.69
|
|
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, 2014 and 2013
| |
|
2014 |
|
|
2013 |
|
| |
|
|
|
|
|
|
|
Net income (USD’000) |
|
24,089 |
|
|
11,596 |
|
|
Adjustments: |
|
|
|
|
|
|
|
Profit on sale of
property, plant and equipment |
|
(122 |
) |
|
(1 |
) |
|
Tax effects on above |
|
34 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net income used to calculate headline earnings (USD’000)
|
|
24,001 |
|
|
11,595 |
|
|
Weighted average number of shares used to
calculate net income per share basic earnings and headline earnings per
share basic earnings (‘000) |
|
47,226 |
|
|
45,613 |
|
|
Weighted average number of shares used to calculate net
income per share diluted earnings and headline earnings per share diluted
earnings (‘000) |
|
47,335 |
|
|
45,801 |
|
|
Headline earnings per share: |
|
|
|
|
|
|
|
Basic, in USD |
|
0.51 |
|
|
0.25 |
|
|
Diluted, in USD |
|
0.51 |
|
|
0.25 |
|
Calculation of the denominator for headline diluted earnings
per share
| |
|
2014 |
|
|
2013 |
|
| |
|
|
|
|
|
|
|
Basic weighted-average common shares
outstanding and unvested restricted shares expected to vest under GAAP |
|
47,226 |
|
|
45,613 |
|
|
Effect of dilutive securities under
GAAP |
|
109
|
|
|
188
|
|
|
Denominator for headline diluted earnings per share |
|
47,335 |
|
|
45,801 |
|
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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