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): February 5,
2015
NET 1 UEPS TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
Florida |
000-31203 |
98-0171860 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.)
|
President Place, 4th Floor, Cnr. Jan
Smuts Avenue and Bolton Road
Rosebank, Johannesburg, South Africa
(Address of principal executive
offices)
(ZIP Code)
Registrants 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 February 5, 2015, we issued a press release setting forth
our financial results for the second quarter ended December 31, 2014. A copy of
the press release is attached as Exhibit 99.1.
Item 9.01. Financial Statements and 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: February 5, 2015 |
By: /s/ Serge Belamant |
|
Dr. Serge C.P.
Belamant |
|
Chief Executive
Officer and Chairman of |
|
the Board
|
Exhibit 99.1
Net 1 UEPS
Technologies, Inc. Reports Second Quarter 2015 Results
- Q2 2015 Revenue and FEPS of $154.1 million and $0.57, a constant
currency increase of 24% and 56% respectively.
JOHANNESBURG, February 5, 2015 Net 1 UEPS Technologies, Inc.
(Nasdaq: UEPS; JSE: NT1) today released results for the second quarter of fiscal
2015.
Summary Financial Metrics
|
|
Three months ended December 31, |
|
|
|
|
|
|
|
|
|
% change |
|
|
% change |
|
|
|
2014 |
|
|
2013 |
|
|
in USD |
|
|
in ZAR |
|
(All figures in USD 000s except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
154,131 |
|
|
137,283 |
|
|
12% |
|
|
24% |
|
GAAP net income |
|
22,374 |
|
|
12,749 |
|
|
75% |
|
|
94% |
|
Fundamental net income (1) |
|
26,400 |
|
|
18,398 |
|
|
43% |
|
|
58% |
|
GAAP earnings per share ($) |
|
0.48 |
|
|
0.28 |
|
|
73% |
|
|
91% |
|
Fundamental earnings per share ($) (1) |
|
0.57 |
|
|
0.40 |
|
|
43% |
|
|
56% |
|
Fully-diluted shares outstanding (000s) |
|
46,644 |
|
|
46,176 |
|
|
2% |
|
|
|
|
Average period USD/ ZAR exchange rate |
|
11.22 |
|
|
10.16 |
|
|
10% |
|
|
|
|
|
|
Six months ended December 31, |
|
|
|
|
|
|
|
|
|
% change |
|
|
% change |
|
|
|
2014 |
|
|
2013 |
|
|
in USD |
|
|
in ZAR |
|
(All figures in USD 000s except per
share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
310,572 |
|
|
260,777 |
|
|
19% |
|
|
30% |
|
GAAP net income |
|
46,463 |
|
|
24,345 |
|
|
91% |
|
|
108% |
|
Fundamental net income (1) |
|
54,522 |
|
|
35,174 |
|
|
55% |
|
|
69% |
|
GAAP earnings per share ($) |
|
0.99 |
|
|
0.53 |
|
|
86% |
|
|
102% |
|
Fundamental earnings per share ($) (1) |
|
1.16 |
|
|
0.77 |
|
|
51% |
|
|
65% |
|
Fully-diluted shares outstanding (000s)
|
|
46,990 |
|
|
45,919 |
|
|
2% |
|
|
|
|
Average period USD/ ZAR exchange rate |
|
10.97 |
|
|
10.08 |
|
|
9% |
|
|
|
|
(1) Fundamental net income and earnings per share are
non-GAAP measures and are described below under Use of Non-GAAP
MeasuresFundamental 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 Q2 2015 and Q2 2014
results
- Unfavorable impact from the strengthening of the USD against the
ZAR: The USD appreciated by 10% against the ZAR during the second
quarter of fiscal 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 of SASSA grants paid: Our revenue and
operating income has increased as a result of the higher number of SASSA
UEPS/EMV cardholders paid during fiscal 2015 compared with 2014; and
- Continued growth in financial inclusion services: We
continued to grow our financial inclusion services offerings during the second
quarter of fiscal 2015, which has resulted in higher revenues and operating
income from more sales of low-margin prepaid airtime and UEPS-based lending.
Comments and Outlook
Our operational and financial performance once again speaks
for itself as we continue to deliver meaningful growth in revenue and earnings,
said Dr. Serge Belamant, Chairman and CEO of Net1. Our prospects and pipeline
are extremely exciting, particularly as they reflect opportunities in the mobile
space, which is the payment paradigm of the future. We are globalizing, we have
the technology, we have the dedicated staff, we have the financial resources and
we have the passion. Carpe Diem! I believe that our efforts, innovations and
lateral thinking will be noticed and appreciated by the market and enhance
shareholder value, he concluded.
I am thrilled with the sustained top and bottom line growth
generated by our core businesses, said Herman Kotz, Chief Financial Officer of
Net1. Given our strategic and operational momentum, for fiscal 2015, we now
expect fundamental earnings per share of at least $2.28, assuming a constant
currency base of ZAR10.40/ $1 and a share count of 46.5 million shares, he
concluded.
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 $58.4 million in Q2 2015, down 1% compared
with Q2 2014 in USD and up 10% 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 Q2 2015 and Q2 2014 was 22% and 12%, 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 Q2 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 $40.5 million in Q2 2015, up 7%
compared with Q2 2014 in USD and 18% on a constant currency basis. Revenue and
operating income increased primarily due to higher transaction volume at KSNET
during Q2 2015. However, operating income for Q2 2015, was adversely impacted by
ad hoc incentives provided to staff due to the strong operating performance of
KSNET during calendar 2014. Segment operating income margin during each of Q2
2015 and Q2 2014 was 14%, 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 $67.5 million in Q2 2015, up 34% compared
with Q2 2014 in USD and 48% 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, in ZAR, an increase in
intersegment revenues. Smart Life did not contribute to operating income in Q2
2015 and 2014 due to the FSB suspension of its license.
Operating income margin for the Financial inclusion and applied
technologies segment was 26% during each of the second quarter of fiscal 2015
and 2014, respectively.
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.
Cash flow and liquidity
At December 31, 2014, we had cash and cash equivalents of $71.0
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, offset by
provisional tax payments and the scheduled Korean debt repayment in October
2014.
Excluding the impact of interest received, interest paid under
our Korean debt and taxes, the increase in cash from operating activities
resulted from improved trading activity during fiscal 2015. Capital expenditures
for Q2 2015 and 2014 were $9.1 million and $6.8 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 investors 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
We will host a conference call to review Q2 2015 results on
February 6, 2015, at 8:00 Eastern Time. 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 March 1, 2015.
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 |
|
|
Six months ended
|
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
|
(In thousands, except per share data) |
|
|
(In thousands, except per share data) |
|
REVENUE |
$ |
154,131
|
|
$ |
137,283 |
|
$ |
310,572
|
|
$ |
260,777 |
|
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
goods sold, IT processing,
servicing and
support |
|
71,774 |
|
|
67,883 |
|
|
146,180 |
|
|
124,442 |
|
Selling, general and administration |
|
41,385 |
|
|
40,824 |
|
|
80,121 |
|
|
81,330 |
|
Depreciation and amortization |
|
10,157 |
|
|
9,774 |
|
|
20,331 |
|
|
19,803 |
|
OPERATING INCOME |
|
30,815 |
|
|
18,802 |
|
|
63,940 |
|
|
35,202 |
|
INTEREST INCOME |
|
3,587 |
|
|
3,236 |
|
|
7,677 |
|
|
6,555 |
|
INTEREST EXPENSE |
|
1,107 |
|
|
2,226 |
|
|
2,419 |
|
|
3,978 |
|
INCOME BEFORE INCOME TAX
EXPENSE |
|
33,295 |
|
|
19,812 |
|
|
69,198 |
|
|
37,779 |
|
INCOME TAX EXPENSE |
|
10,203 |
|
|
7,099 |
|
|
21,851 |
|
|
13,584 |
|
NET INCOME BEFORE EARNINGS
FROM EQUITY-ACCOUNTED INVESTMENTS |
|
23,092 |
|
|
12,713 |
|
|
47,347 |
|
|
24,195 |
|
EARNINGS FROM
EQUITY-ACCOUNTED INVESTMENTS |
|
76 |
|
|
47 |
|
|
168 |
|
|
150 |
|
NET INCOME |
|
23,168 |
|
|
12,760 |
|
|
47,515 |
|
|
24,345 |
|
LESS NET INCOME ATTRIBUTABLE
TO |
|
|
|
|
|
|
|
|
|
|
|
|
NON-CONTROLLING INTEREST |
|
794 |
|
|
11 |
|
|
1,052 |
|
|
- |
|
NET INCOME ATTRIBUTABLE TO
NET1 |
$ |
22,374
|
|
$ |
12,749 |
|
$ |
46,463
|
|
$ |
24,345 |
|
Net income per share, in
United States dollars |
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings attributable to Net1
shareholders
|
$ |
0.48 |
|
$ |
0.28 |
|
$ |
0.99 |
|
$ |
0.53 |
|
Diluted
earnings attributable to
Net1 shareholders
|
$ |
0.48 |
|
$ |
0.28 |
|
$ |
0.99 |
|
$ |
0.53 |
|
NET 1 UEPS TECHNOLOGIES, INC.
Unaudited Condensed Consolidated Balance Sheets
|
|
Unaudited |
|
|
(A) |
|
|
|
December 31, |
|
|
June 30, |
|
|
|
2014 |
|
|
2014 |
|
|
|
(In thousands,
except share data) |
|
ASSETS |
|
CURRENT ASSETS |
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
70,981 |
|
$ |
58,672 |
|
Pre-funded social welfare
grants receivable |
|
6,254 |
|
|
4,809 |
|
Accounts
receivable, net of allowances of December: $2,175; June: $1,313 |
|
128,338 |
|
|
148,067 |
|
Finance loans receivable,
net of allowances of December: $4,403; June: $3,083 |
|
60,309 |
|
|
53,124 |
|
Inventory
|
|
12,501 |
|
|
10,785 |
|
Deferred income taxes |
|
6,286 |
|
|
7,451 |
|
Total current assets before settlement assets |
|
284,669 |
|
|
282,908 |
|
Settlement assets |
|
480,962 |
|
|
725,987 |
|
Total current assets |
|
765,631 |
|
|
1,008,895 |
|
PROPERTY, PLANT AND EQUIPMENT, net of
accumulated depreciation of December: $94,376; June: $91,422 |
|
49,361 |
|
|
47,797 |
|
EQUITY-ACCOUNTED INVESTMENTS
|
|
954 |
|
|
878 |
|
GOODWILL |
|
172,237 |
|
|
186,576 |
|
INTANGIBLE ASSETS,
net of accumulated amortization of December: $80,189; June: $78,781
|
|
55,884
|
|
|
68,514
|
|
|
OTHER LONG-TERM ASSETS,
including reinsurance assets |
|
35,426 |
|
|
38,285 |
|
TOTAL ASSETS |
|
1,079,493 |
|
|
1,350,945 |
|
LIABILITIES |
|
CURRENT LIABILITIES |
|
|
|
|
|
|
Accounts
payable |
|
15,838 |
|
|
17,101 |
|
Other payables |
|
39,263 |
|
|
42,257 |
|
Current
portion of long-term borrowings |
|
- |
|
|
14,789 |
|
Income taxes payable |
|
3,094 |
|
|
7,676 |
|
Total current liabilities before settlement
obligations |
|
58,195 |
|
|
81,823 |
|
Settlement obligations |
|
480,962 |
|
|
725,987 |
|
Total current liabilities |
|
539,157 |
|
|
807,810 |
|
DEFERRED INCOME TAXES |
|
12,676 |
|
|
15,522 |
|
LONG-TERM BORROWINGS |
|
59,698 |
|
|
62,388 |
|
OTHER LONG-TERM LIABILITIES, including
insurance policy liabilities |
|
20,831 |
|
|
23,477 |
|
TOTAL
LIABILITIES |
|
632,362 |
|
|
909,197 |
|
EQUITY |
|
COMMON
STOCK Authorized:
200,000,000 with $0.001 par
value; Issued
and outstanding shares, net of treasury - December:
46,547,153; 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: December: -; June: - |
|
- |
|
|
- |
|
ADDITIONAL PAID-IN-CAPITAL |
|
211,743 |
|
|
202,401 |
|
TREASURY SHARES, AT COST:
December: 18,057,228; June: 15,883,212 |
|
(214,520 |
) |
|
(200,681 |
) |
ACCUMULATED OTHER COMPREHENSIVE LOSS |
|
(120,504 |
) |
|
(82,741 |
) |
RETAINED EARNINGS |
|
569,596 |
|
|
522,729 |
|
TOTAL NET1 EQUITY |
|
446,379 |
|
|
441,771 |
|
NON-CONTROLLING INTEREST |
|
752 |
|
|
(23 |
) |
TOTAL EQUITY |
|
447,131 |
|
|
441,748 |
|
TOTAL
LIABILITIES AND SHAREHOLDERS EQUITY |
$ |
1,079,493 |
|
$ |
1,350,945 |
|
(A) Derived from audited financial statements
NET 1 UEPS TECHNOLOGIES, INC.
Unaudited Condensed Consolidated Statements of Cash Flows
|
|
Three months ended |
|
|
Six months ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
|
(In thousands)
|
|
|
(In thousands)
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
23,168 |
|
$ |
12,760 |
|
$ |
47,515 |
|
$ |
24,345 |
|
Depreciation and amortization |
|
10,157 |
|
|
9,774 |
|
|
20,331 |
|
|
19,803 |
|
Earnings from
equity-accounted investments |
|
(76 |
) |
|
(47 |
) |
|
(168 |
) |
|
(150 |
) |
Fair value adjustments |
|
(234 |
) |
|
72 |
|
|
179 |
|
|
(61 |
) |
Interest payable |
|
140 |
|
|
694 |
|
|
1,299 |
|
|
1,666 |
|
Profit on disposal of property, plant and
equipment |
|
(109 |
) |
|
(15 |
) |
|
(231 |
) |
|
(16 |
) |
Stock-based compensation
charge |
|
1,035 |
|
|
968 |
|
|
1,951 |
|
|
1,898 |
|
Facility fee amortized |
|
52 |
|
|
509 |
|
|
134 |
|
|
578 |
|
Increase in accounts
receivable, pre-funded social welfare grants receivable and finance
loans receivable |
|
(7,315 |
) |
|
(37,977 |
) |
|
2,155 |
|
|
(61,078 |
) |
Increase in inventory |
|
(622 |
) |
|
(2,853 |
) |
|
(2,745 |
) |
|
(1,842 |
) |
Decrease in accounts payable
and other payables |
|
(1,456 |
) |
|
(4,883 |
) |
|
(12,389 |
) |
|
(13,551 |
) |
(Decrease) increase in taxes payable |
|
(9,963 |
) |
|
(5,559 |
) |
|
(3,352 |
) |
|
1,362 |
|
Decrease in deferred taxes
|
|
(168 |
) |
|
(691 |
) |
|
(558 |
) |
|
(1,878 |
) |
Net cash provided (used
in ) by operating activities |
|
14,609 |
|
|
(27,248 |
) |
|
54,121 |
|
|
(28,924 |
) |
Cash flows from investing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
(9,137 |
) |
|
(6,845 |
) |
|
(18,515 |
) |
|
(12,461 |
) |
Proceeds from disposal of
property, plant and equipment |
|
373 |
|
|
1,953 |
|
|
614 |
|
|
2,001 |
|
Proceeds from sale of business |
|
- |
|
|
- |
|
|
1,895 |
|
|
- |
|
Other investing activities
|
|
(29 |
) |
|
- |
|
|
(29 |
) |
|
(1 |
) |
Net change in settlement assets |
|
241,652 |
|
|
204,730 |
|
|
198,598 |
|
|
256,503 |
|
Net
cash provided by investing activities |
|
232,859 |
|
|
199,838 |
|
|
182,563 |
|
|
246,042 |
|
Cash flows from financing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of long-term
borrowings |
|
(14,128 |
) |
|
(87,008 |
) |
|
(14,128 |
) |
|
(87,008 |
) |
Long-term borrowings utilized |
|
1,081 |
|
|
- |
|
|
2,178 |
|
|
- |
|
Acquisition of treasury stock
|
|
- |
|
|
- |
|
|
(9,151 |
) |
|
- |
|
Sale of equity to non-controlling interest
|
|
- |
|
|
- |
|
|
1,407 |
|
|
- |
|
Proceeds from issue of common
stock |
|
- |
|
|
- |
|
|
989 |
|
|
- |
|
Long-term borrowings obtained |
|
- |
|
|
71,605 |
|
|
- |
|
|
71,605 |
|
Payment of facility fee |
|
- |
|
|
(872 |
) |
|
- |
|
|
(872 |
) |
Proceeds from bank overdraft |
|
- |
|
|
24,580 |
|
|
- |
|
|
24,580 |
|
Acquisition of interests in
KSNET |
|
- |
|
|
(1,968 |
) |
|
- |
|
|
(1,968 |
) |
Net change in settlement obligations |
|
(241,652 |
) |
|
(204,730 |
) |
|
(198,598 |
) |
|
(256,503 |
) |
Net cash used
in by financing activities |
|
(254,699 |
) |
|
(198,393 |
) |
|
(217,303 |
) |
|
(250,166 |
) |
Effect of exchange rate changes on cash |
|
(2,973 |
) |
|
495 |
|
|
(7,072 |
) |
|
1,745 |
|
Net (decrease) increase in
cash and cash equivalents |
|
(10,204 |
) |
|
(25,308 |
) |
|
12,309 |
|
|
(31,303 |
) |
Cash and cash equivalents beginning of
period |
|
81,185 |
|
|
47,670 |
|
|
58,672 |
|
|
53,665 |
|
Cash and cash equivalents
end of period |
$ |
70,981 |
|
$ |
22,362 |
|
$ |
70,981 |
|
$ |
22,362 |
|
See Notes to Unaudited Condensed Consolidated Financial
Statements
Net 1 UEPS Technologies, Inc.
Attachment A
Operating segment revenue, operating income and operating
margin:
Three months ended December 31, 2014 and 2013 and June 30,
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
constant |
|
|
|
|
|
|
|
|
|
|
|
|
Change - actual |
|
|
exchange
rate(1) |
|
|
|
|
|
|
|
|
|
|
|
|
Q2 15 |
|
|
Q2 15 |
|
|
Q2 15 |
|
|
Q2 15 |
|
|
|
|
|
|
|
|
|
|
|
|
vs |
|
|
vs |
|
|
vs |
|
|
vs |
|
Key segmental data,
in $ 000, |
|
Q2 15 |
|
|
Q2 14 |
|
|
Q1 15 |
|
|
Q214 |
|
|
Q1 15 |
|
|
Q214 |
|
|
Q1 15 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South African
transaction processing |
$ |
58,427 |
|
$ |
58,754 |
|
$ |
60,252 |
|
|
(1% |
)
|
|
(3% |
)
|
|
10% |
|
|
1% |
|
International transaction
processing |
|
40,466 |
|
|
37,738 |
|
|
43,204 |
|
|
7% |
|
|
(6% |
) |
|
18% |
|
|
(2% |
) |
Financial
inclusion and applied technologies |
|
67,531 |
|
|
50,480 |
|
|
65,197 |
|
|
34% |
|
|
4% |
|
|
48% |
|
|
8% |
|
Subtotal: Operating segments |
|
166,424 |
|
|
146,972 |
|
|
168,653 |
|
|
13% |
|
|
(1% |
) |
|
25% |
|
|
3% |
|
Intersegment eliminations |
|
(12,293 |
)
|
|
(9,689 |
)
|
|
(12,212 |
)
|
|
27% |
|
|
1% |
|
|
40% |
|
|
5% |
|
Consolidated revenue |
$ |
154,131 |
|
$ |
137,283 |
|
$ |
156,441 |
|
|
12% |
|
|
(1% |
) |
|
24% |
|
|
3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South African
transaction processing |
$ |
12,883 |
|
$ |
7,128 |
|
$ |
13,639 |
|
|
81% |
|
|
(6% |
)
|
|
100% |
|
|
(1% |
)
|
International transaction
processing |
|
5,743 |
|
|
5,139 |
|
|
7,349 |
|
|
12% |
|
|
(22% |
) |
|
23% |
|
|
(18% |
) |
Financial
inclusion and applied technologies |
|
17,827 |
|
|
13,265 |
|
|
17,607 |
|
|
34% |
|
|
1% |
|
|
48% |
|
|
6% |
|
Subtotal: Operating segments |
|
36,453 |
|
|
25,532 |
|
|
38,595 |
|
|
43% |
|
|
(6% |
) |
|
58% |
|
|
(1% |
) |
Corporate/Eliminations |
|
(5,638 |
)
|
|
(6,730 |
)
|
|
(5,470 |
)
|
|
(16% |
)
|
|
3% |
|
|
(7% |
)
|
|
8% |
|
Consolidated operating income |
$ |
30,815 |
|
$ |
18,802 |
|
$ |
33,125 |
|
|
64% |
|
|
(7% |
) |
|
81% |
|
|
(3% |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income margin
(%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South African
transaction processing |
|
22% |
|
|
12% |
|
|
23% |
|
|
|
|
|
|
|
|
|
|
|
|
|
International transaction
processing |
|
14% |
|
|
14% |
|
|
17% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
inclusion and applied technologies |
|
26% |
|
|
26% |
|
|
27% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated operating margin |
|
20% |
|
|
14% |
|
|
21% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) This information shows what the change in these
items would have been if the USD/ ZAR exchange rate that prevailed during the
second quarter of fiscal 2015 also prevailed during the second quarter of fiscal
2014 and the first quarter of fiscal 2015.
Six months ended December 31, 2014 and 2013
|
|
|
|
|
|
|
|
|
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
constant |
|
|
|
|
|
|
|
|
|
Change - |
|
|
exchange |
|
|
|
|
|
|
|
|
|
actual |
|
|
rate(1) |
|
|
|
|
|
|
|
|
|
F2015 |
|
|
F2015 |
|
|
|
|
|
|
|
|
|
vs |
|
|
vs |
|
Key segmental data, in 000, except
margins |
|
F2015 |
|
|
F2014 |
|
|
F2014 |
|
|
F2014 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
South African transaction
processing |
|
118,679 |
|
|
115,915 |
|
|
2% |
|
|
11% |
|
International transaction processing |
|
83,670 |
|
|
75,279 |
|
|
11% |
|
|
21% |
|
Financial inclusion and
applied technologies |
|
132,728 |
|
|
87,276 |
|
|
52% |
|
|
65% |
|
Subtotal:
Operating segments |
|
335,077 |
|
|
278,470 |
|
|
20% |
|
|
31% |
|
Intersegment eliminations |
|
(24,505 |
) |
|
(17,693 |
) |
|
39% |
|
|
51% |
|
Consolidated revenue |
|
310,572 |
|
|
260,777 |
|
|
19% |
|
|
30% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
South African transaction
processing |
|
26,522 |
|
|
13,589 |
|
|
95% |
|
|
112% |
|
International transaction processing |
|
13,092 |
|
|
10,663 |
|
|
23% |
|
|
34% |
|
Financial inclusion and
applied technologies |
|
35,434 |
|
|
26,100 |
|
|
36% |
|
|
48% |
|
Subtotal:
Operating segments |
|
75,048 |
|
|
50,352 |
|
|
49% |
|
|
62% |
|
Corporate/Eliminations |
|
(11,108 |
) |
|
(15,150 |
) |
|
(27% |
) |
|
(20% |
) |
Consolidated operating income |
|
63,940 |
|
|
35,202 |
|
|
82% |
|
|
98% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income margin (%) |
|
|
|
|
|
|
|
|
|
|
|
|
South African transaction
processing |
|
22% |
|
|
12% |
|
|
|
|
|
|
|
International transaction processing |
|
16% |
|
|
14% |
|
|
|
|
|
|
|
Financial inclusion and
applied technologies |
|
27% |
|
|
30% |
|
|
|
|
|
|
|
Overall
operating margin |
|
21% |
|
|
13% |
|
|
|
|
|
|
|
(1) This information shows what the change in these
items would have been if the USD/ ZAR exchange rate that prevailed during the
first half of fiscal 2015 also prevailed during the first half 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 December 31, 2014 and 2013
|
|
|
|
|
|
|
|
EPS,
|
|
|
|
|
|
|
|
|
EPS,
|
|
|
|
Net income
|
|
|
basic
|
|
|
Net income
|
|
|
basic
|
|
|
|
(USD000) |
|
|
(USD) |
|
|
(ZAR000) |
|
|
(ZAR) |
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
22,374 |
|
|
12,749 |
|
|
0.48 |
|
|
0.28 |
|
|
250,737
|
|
|
129,519
|
|
|
5.39 |
|
|
2.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset amortization, net . |
|
2,930 |
|
|
3,104 |
|
|
|
|
|
|
|
|
32,827 |
|
|
31,530 |
|
|
|
|
|
|
|
Stock-based compensation
charge |
|
1,035 |
|
|
968 |
|
|
|
|
|
|
|
|
11,616 |
|
|
9,834 |
|
|
|
|
|
|
|
Facility
fees for KSNET debt |
|
52 |
|
|
509 |
|
|
|
|
|
|
|
|
584 |
|
|
5,171 |
|
|
|
|
|
|
|
US government
investigations- related and US
lawsuit expenses |
|
9 |
|
|
1,068 |
|
|
|
|
|
|
|
|
101 |
|
|
10,850 |
|
|
|
|
|
|
|
Fundamental |
|
26,400 |
|
|
18,398 |
|
|
0.57 |
|
|
0.40 |
|
|
295,865 |
|
|
186,904 |
|
|
6.36 |
|
|
4.08 |
|
Six months ended December 31, 2014 and 2013
|
|
|
|
|
|
|
|
EPS,
|
|
|
|
|
|
|
|
|
EPS,
|
|
|
|
Net income
|
|
|
basic
|
|
|
Net income
|
|
|
basic
|
|
|
|
(USD000) |
|
|
(USD) |
|
|
(ZAR000) |
|
|
(ZAR) |
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
46,463 |
|
|
24,345 |
|
|
0.99 |
|
|
0.53 |
|
|
509,644
|
|
|
245,417
|
|
|
10.87 |
|
|
5.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset amortization, net . |
|
5,838 |
|
|
5,889 |
|
|
|
|
|
|
|
|
64,036 |
|
|
59,367 |
|
|
|
|
|
|
|
Stock-based compensation
charge |
|
1,951 |
|
|
1,898 |
|
|
|
|
|
|
|
|
21,400 |
|
|
19,134 |
|
|
|
|
|
|
|
Facility
fees for KSNET debt |
|
134 |
|
|
578 |
|
|
|
|
|
|
|
|
1,470 |
|
|
5,827 |
|
|
|
|
|
|
|
US government
investigations- related and US lawsuit
expenses |
|
136 |
|
|
2,464 |
|
|
|
|
|
|
|
|
1,492 |
|
|
24,839 |
|
|
|
|
|
|
|
Fundamental |
|
54,522 |
|
|
35,174 |
|
|
1.16 |
|
|
0.77 |
|
|
598,042 |
|
|
354,584 |
|
|
12.76 |
|
|
7.75 |
|
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 December 31, 2014 and 2013
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
Net income (USD000) |
|
22,374 |
|
|
12,749 |
|
Adjustments: |
|
|
|
|
|
|
Profit on
sale of property, plant and equipment |
|
(109 |
) |
|
(15 |
) |
Tax effects on above |
|
31 |
|
|
4 |
|
|
|
|
|
|
|
|
Net income used to calculate headline
earnings (USD000) |
|
22,296 |
|
|
12,738 |
|
Weighted average number of
shares used to calculate net income per share basic earnings and
headline earnings per share basic earnings (000) |
|
46,519 |
|
|
45,776 |
|
Weighted average number of shares used to
calculate net income per share diluted earnings and headline earnings
per share diluted earnings (000) |
|
46,644 |
|
|
46,176 |
|
Headline earnings per share:
|
|
|
|
|
|
|
Basic, in USD |
|
0.48 |
|
|
0.28 |
|
Diluted,
in USD |
|
0.48 |
|
|
0.28 |
|
Six months ended December 31, 2014 and 2013
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
Net income (USD000) |
|
46,463 |
|
|
24,345 |
|
Adjustments: |
|
|
|
|
|
|
Profit on sale of
property, plant and equipment |
|
(231 |
) |
|
(16 |
) |
Tax effects on above |
|
65
|
|
|
4 |
|
|
|
|
|
|
|
|
Net income used to calculate headline earnings (USD000)
|
|
46,297 |
|
|
24,333 |
|
Weighted average number of shares used to
calculate net income per share basic earnings and headline earnings
per share basic earnings (000) |
|
46,873 |
|
|
45,725 |
|
Weighted average number of shares used to calculate net
income per share diluted earnings and headline earnings per share
diluted earnings (000) |
|
46,990 |
|
|
45,919 |
|
Headline earnings per share: |
|
|
|
|
|
|
Basic, in USD |
|
0.99 |
|
|
0.53 |
|
Diluted, in USD |
|
0.99 |
|
|
0.52 |
|
Calculation of the denominator for headline diluted earnings
per share
|
|
Q2 15 |
|
|
Q2 14 |
|
|
F2015 |
|
|
F2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average common
shares outstanding and unvested restricted shares expected to vest
under GAAP |
|
46,519 |
|
|
45,776 |
|
|
46,873 |
|
|
45,725 |
|
Effect of dilutive
securities under GAAP |
|
125 |
|
|
400 |
|
|
117 |
|
|
194 |
|
Denominator for headline diluted earnings per share |
|
46,644 |
|
|
46,176 |
|
|
46,990 |
|
|
45,919 |
|
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.
Net 1 Ueps Technologies (NASDAQ:UEPS)
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Net 1 Ueps Technologies (NASDAQ:UEPS)
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Von Okt 2023 bis Okt 2024