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): August
20, 2015
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)
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 August 20, 2015, we issued a press release setting forth our
financial results for the fourth quarter and year ended June 30, 2015. 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.
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NET 1 UEPS TECHNOLOGIES, INC.
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Date: August 20, 2015 |
By: |
/s/
Serge C.P. Belamant |
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Dr. Serge C.P. Belamant |
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Chief Executive Officer and Chairman of |
|
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the Board |
Exhibit 99.1
Net 1 UEPS Technologies, Inc. Reports Fourth Quarter and
Full Year 2015 Results
|
Q4 2015 Revenue and FEPS of $164 million and
$0.58, a constant currency increase after adjusting for the SASSA
recovery in 2014, of 22% and 30%, respectively; |
|
Strategic investments in Hong Kong and
Nigeria-based businesses and ZAZOO partnerships with Funifi and BitX;
and |
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Cash and equivalents of $117.6 million as of
June 30, 2015, and operating cash flow of $31.8 million in Q4 2015.
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JOHANNESBURG, August 20, 2015 Net 1 UEPS Technologies, Inc.
(Nasdaq: UEPS; JSE: NT1) today released results for the fourth quarter and
full-year fiscal 2015.
Summary Financial Metrics
|
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Three months ended June 30, |
|
|
|
|
|
|
|
|
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% change |
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% change |
|
|
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2015 |
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2014 |
|
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in USD |
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in ZAR |
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(All figures in USD 000s except per share
data) |
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|
|
|
|
|
|
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Revenue |
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164,286 |
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182,753 |
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(10% |
) |
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4% |
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Revenue excluding SASSA
recovery(1)(2) |
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164,286 |
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156,118 |
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5% |
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22% |
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GAAP net income |
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23,914 |
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28,584 |
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(16% |
) |
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(3% |
) |
Fundamental net income(1) |
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27,233 |
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44,362 |
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(39% |
) |
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(29% |
) |
Fundamental net income excluding SASSA recovery(1) |
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27,233 |
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25,185 |
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8% |
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24% |
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GAAP earnings per share ($) |
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0.51 |
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0.59 |
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(13% |
) |
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1% |
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Fundamental earnings per
share ($)(1) |
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0.58 |
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0.91 |
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(36% |
) |
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(26% |
) |
Fundamental earnings per
share excluding SASSA recovery(1) |
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0.58 |
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0.52 |
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12% |
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30% |
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Fully-diluted shares
outstanding (000s) |
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46,944 |
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48,855 |
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(4% |
) |
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(4% |
) |
Average period USD/ ZAR exchange rate |
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12.04 |
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10.42 |
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16% |
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Year ended June 30, |
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% change |
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% change |
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2015 |
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2014 |
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in USD |
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in ZAR |
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(All figures in USD 000s except per share
data) |
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Revenue |
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625,979 |
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581,656 |
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8% |
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18% |
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Revenue excluding SASSA
recovery(1)(2) |
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625,979 |
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555,021 |
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13% |
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24% |
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GAAP net income |
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94,735 |
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70,111 |
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35% |
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49% |
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Fundamental net income(1) |
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108,205 |
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101,343 |
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7% |
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17% |
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Fundamental net income excluding SASSA recovery(1) |
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108,205 |
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82,166 |
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32% |
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45% |
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GAAP earnings per share ($) |
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2.03 |
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1.51 |
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34% |
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48% |
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Fundamental earnings per
share ($)(1) |
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2.32 |
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2.18 |
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6% |
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17% |
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Fundamental earnings per
share excluding SASSA recovery(1) |
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2.32 |
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1.77 |
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31% |
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44% |
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Fully-diluted shares
outstanding (000s) |
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46,913 |
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46,603 |
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1% |
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1% |
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Average period USD/ ZAR exchange rate |
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11.43 |
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10.40 |
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10% |
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(1) Revenue excluding SASSA recovery, Fundamental
net income, Fundamental net income excluding SASSA recovery, Fundamental
earnings per share and Fundamental earnings per share excluding SASSA recovery
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.
(2) Revenue excluding SASSA recovery is Revenue
earned during 2014 less approximately $26.6 million received from SASSA related
to the recovery of additional implementation costs incurred during the
beneficiary re-registration process in fiscal 2012 and 2013
Factors impacting comparability of our Q4 2015 and Q4 2014
results
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Unfavorable impact from the strengthening
of the US dollar against the ZAR: The US dollar appreciated by 16%
against the ZAR during Q4 2015, which negatively impacted our reported
results; |
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Higher revenue resulting from an increase
in low-margin prepaid airtime and electricity sales: Our revenue
has increased as a result of the growth of our prepaid electricity and
prepaid airtime offering during Q4 2015, with prepaid airtime having lower
margins compared with our other South African businesses; |
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Increased contribution by KSNET:
Our results were positively impacted by growth in our South Korean
operations; |
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Growth in financial services: The
expansion of our financial services offering resulted in higher
year-over-year revenue and operating income from UEPS-based lending during
Q4 2015; |
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Ad hoc hardware sales in fiscal 2015:
We sold more terminals and cards during Q4 2015 as a result of ad
hoc orders received from our customers; |
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$26.6 million recovery of expenses and
2014 implementation costs: In Q4 2014, we received approximately
$26.6 million, or approximately $19.1 million, net of tax, from SASSA
related to the recovery of additional implementation costs incurred during
the beneficiary re-registration process in fiscal 2012 and 2013; and
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Fair value charge resulting from issue of
equity instruments pursuant to BEE transactions: The fair value
non- cash charge of $11.3 million related to our BEE transactions
adversely impacted our reported results during Q4 2014.
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Comments and Outlook
I am thrilled with our 2015 performance as we were able to
execute on our strategy extremely well. The continued local and international
interest we receive as a result of our proven ability to implement state of the
art, functional and robust solutions that allow for the financial inclusion of
all citizens, as well as our card and mobile centric solutions that can be
provided individually or in unison, provides us with a bespoke end-to-end
financial technology solution relevant to both developed and developing world
economies, said Dr. Belamant, Chairman and CEO. Our ZAZOO initiative is
gaining momentum as demonstrated by its financial performance, and its latest
agreements with companies such as Uber, Microsoft, and BitX and our investment
in T24. ZAZOOs pipeline has numerous other deals and it is well positioned to
grow exponentially over a short period of time. We also believe that our entry
into Nigeria via our investment in One Credit provides us the opportunity to
deploy our entire solution in this vast, under-penetrated and profitable
economy, he concluded.
Our financial and operating performance, including the
increased investment in our newer growth and international initiatives,
continues to track the strategic developments in our business, said Herman
Kotzé, Chief Financial Officer of Net1. We expect to sustain the momentum in
our business and continue our product, client and geographic diversification,
and for fiscal 2016 anticipate our fundamental earnings per share to be at least
$2.57, assuming an updated constant currency base of ZAR11.43/ $1 and a share
count of 46.7 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
Segment revenue was $59.8 million in Q4 2015, down 32% compared
with Q4 2014 in USD and down 22% on a constant currency basis. In ZAR, revenue
increased 12% in fiscal 2015 compared to fiscal 2014 (after excluding the impact
of the recovery in fiscal 2014 of implementation costs related to our SASSA
contract). The increase in segment revenues, exclusive of such recovery, was
primarily due to more low-margin transaction fees generated from beneficiaries
using the South African National Payment System and more inter-segment
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, offset by the loss of MediKredit revenue as a result
of the sale of that business.
Segment operating income margin was 19% and 44%, respectively,
and decreased primarily due to the recovery of SASSA implementation costs in
2014. Segment operating income margin excluding the recovery of implementation
costs was 20% for Q4 2014.
International transaction
processing
Segment revenue was $42.6 million in Q4 2015, up 1% compared
with Q4 2014 in USD and 17% on a constant currency basis. Revenue increased
primarily due to increased transaction processing activities in South Korea
during Q4 2015. Operating income during the year to date fiscal 2015 was higher
due to increase in revenue contribution from KSNET, but partially offset by
ZAZOO start-up costs in the UK and India. Segment operating income margin in Q4
2015 and Q4 2014 was 17% and 16%, respectively.
Financial inclusion and applied
technologies
Segment revenue was $73.0 million in Q4 2015, up 14% compared
with Q4 2014 in USD and 32% on a constant currency basis. Financial inclusion
and applied technologies 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, more ad hoc terminal and card sales and, in ZAR, an increase
in intersegment revenues. Smart Life did not contribute to operating income in
fiscal 2015 and 2014 due to the FSB suspension of its license. Smart Life
resumed operating activities in early fiscal 2016, following the upliftment of
suspension of its license by the FSB. Segment operating income margin was 27%
and 28%, respectively, and decreased primarily as a result of more low-margin
prepaid airtime and hardware sales.
Corporate/eliminations
The decrease in our corporate expenses in Q4 2015 resulted
primarily from the non-cash charge related to the equity instruments issued
pursuant to our BEE transactions in Q4 2014 and lower US government
investigation and US lawsuit expenses, partially offset by increases in general
corporate audit fees, executive emoluments and other corporate head
office-related expenses.
Cash flow and liquidity
At June 30, 2015, we had cash and cash equivalents of $117.6
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 all of our
core businesses, and to a lesser extent, to the cash conservation resulting from
the sale of loss-incurring businesses, offset by provisional tax payments,
investments, capital expenditures 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. During fiscal 2015,
we paid interest of $3.6 million under our South Korean debt facility. Capital
expenditures for Q4 2015 and 2014 were $11.6 million and $6.6 million,
respectively, and have increased primarily due to the acquisition of more
payment processing terminals in South Korea and ATMs in South Africa.
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; as well as in fiscal 2015, a
refund (net of taxes) related to Korean industry-wide litigation that has now
been finalized and in fiscal 2014, the equity instruments charged related to our
December 2014 BEE transactions, transaction-related costs and the net loss on
deconsolidation of subsidiaries and business, net of tax.
Fundamental net income excluding SASSA recovery and fundamental
earnings per share excluding SASSA recovery is Fundamental net income and
earnings per share less the recovery received from SASSA in 2014 of $19.2
million, after taxes.
Management believes that the fundamental net income and
earnings per share, as well as the fundamental net income and earnings per share
excluding SASSA recovery, metrics enhances its own evaluation, as well as an
investors understanding, of our financial performance.
Attachment B presents the reconciliation between GAAP net
income and earnings per share, basic, to fundamental net income and earnings per
share, basic and to fundamental net income and earnings per share, basic
excluding recovery from SASSA.
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, and, in fiscal
2014, the net loss on deconsolidation of subsidiaries and asset group, net of
related tax effects. 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 Q4 2015 results on
August 21, 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 September 13, 2015.
Fiscal 2016 earnings call dates
We expect to host quarterly conference calls to review our
fiscal 2016 quarterly results in accordance with the schedule provided in the
table below:
Conference call
to review quarter ended: |
|
Tentative date |
September 30, 2015 (Q1, 2016) |
|
November 6, 2015 |
December 31, 2015 (Q2, 2016) |
|
February 5, 2016 |
March 31, 2016 (Q3, 2016) |
|
May 6, 2016 |
June 30, 2016 (Q4, 2016) |
|
August 26, 2016 |
The dates provided above are tentative and we will confirm the
final dates and dial-in details closer to the quarterly conference call date.
About Net1 (www.net1.com)
Net1 is a leading provider of alternative payment systems that
leverage its Universal Electronic Payment System (UEPS) or utilize its
proprietary mobile technologies. The Company operates market-leading payment
processors in South Africa and the Republic of Korea.
UEPS permits the Company 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. Net1s UEPS/EMV solution is interoperable with global EMV standards
that seamlessly enable 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.
Net1s mobile technologies include its proprietary mobile
payments solution - MVC, which offers secure mobile-based payments, as well as
mobile banking and prepaid value-added services in developed and emerging
countries. The Company intends to deploy its varied mobile solutions through its
ZAZOO business unit, which is an aggregation of innovative technology companies
and is based in the United Kingdom.
Net1 has a primary listing on the 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.
Consolidated
Statements of Operations
|
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Unaudited |
|
|
(A) |
|
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Three months ended |
|
|
Year ended |
|
|
|
June 30, |
|
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|
|
|
June 30, |
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|
|
2015 |
|
|
2014 |
|
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2015 |
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2014 |
|
|
|
(In thousands, except
per share data) |
|
|
(In thousands, except
per share data) |
|
REVENUE |
$ |
164,286 |
|
$ |
182,753 |
|
$ |
625,979 |
|
$ |
581,656 |
|
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of goods sold, IT processing, servicing and support |
|
80,582 |
|
|
72,641 |
|
|
297,856 |
|
|
260,232 |
|
Selling,
general and administration |
|
40,797 |
|
|
46,156 |
|
|
158,919 |
|
|
168,072 |
|
Equity
instruments issued pursuant to BEE transactions |
|
- |
|
|
11,268 |
|
|
- |
|
|
11,268 |
|
Depreciation and amortization |
|
10,294 |
|
|
10,041 |
|
|
40,685 |
|
|
40,286 |
|
OPERATING INCOME |
|
32,613 |
|
|
42,647 |
|
|
128,519 |
|
|
101,798 |
|
INTEREST INCOME |
|
4,467 |
|
|
4,824 |
|
|
16,355 |
|
|
14,817 |
|
INTEREST EXPENSE |
|
1,096 |
|
|
1,761 |
|
|
4,456 |
|
|
7,473 |
|
INCOME BEFORE INCOME TAX EXPENSE |
|
35,984 |
|
|
45,710 |
|
|
140,418 |
|
|
109,142 |
|
INCOME TAX EXPENSE |
|
11,980 |
|
|
17,260 |
|
|
44,136 |
|
|
39,379 |
|
NET INCOME BEFORE EARNINGS FROM
EQUITY-ACCOUNTED INVESTMENTS |
|
24,004 |
|
|
28,450 |
|
|
96,282 |
|
|
69,763 |
|
EARNINGS FROM
EQUITY-ACCOUNTED
INVESTMENTS |
|
219 |
|
|
96 |
|
|
452 |
|
|
298 |
|
NET INCOME |
|
24,223 |
|
|
28,546 |
|
|
96,734 |
|
|
70,061 |
|
LESS (ADD): NET INCOME (LOSS)
ATTRIBUTABLE TO NON-CONTROLLING
INTEREST |
|
309 |
|
|
(38 |
) |
|
1,999 |
|
|
(50 |
) |
NET INCOME ATTRIBUTABLE TO NET1 |
$ |
23,914 |
|
$ |
28,584 |
|
$ |
94,735 |
|
$ |
70,111 |
|
Net income per share, in
United States dollars |
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings attributable to Net1 shareholders |
$ |
0.51 |
|
$ |
0.59 |
|
$ |
2.03 |
|
$ |
1.51 |
|
Diluted
earnings attributable to Net1 shareholders |
$ |
0.51 |
|
$ |
0.59 |
|
$ |
2.02 |
|
$ |
1.50 |
|
(A) Derived from audited financial statements
NET 1 UEPS TECHNOLOGIES, INC.
Consolidated Balance
Sheets
|
|
(A) |
|
|
(A) |
|
|
|
June
30, |
|
|
June
30, |
|
|
|
2015 |
|
|
2014 |
|
|
|
(In thousands, except share data) |
|
ASSETS |
|
CURRENT ASSETS |
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
117,583
|
|
$ |
58,672 |
|
Pre-funded social welfare grants receivable |
|
2,306 |
|
|
4,809 |
|
Accounts
receivable, net of allowances |
|
148,768 |
|
|
148,067 |
|
Finance
loans receivable, net of allowances |
|
40,373 |
|
|
53,124 |
|
Inventory
|
|
12,979 |
|
|
10,785 |
|
Deferred
income taxes |
|
7,298 |
|
|
7,451 |
|
Total current assets before settlement assets |
|
329,307 |
|
|
282,908 |
|
Settlement assets |
|
661,916 |
|
|
725,987 |
|
Total
current assets |
|
991,223 |
|
|
1,008,895 |
|
PROPERTY, PLANT AND
EQUIPMENT, net |
|
52,320 |
|
|
47,797 |
|
EQUITY-ACCOUNTED INVESTMENTS
|
|
14,329 |
|
|
878 |
|
GOODWILL |
|
166,437 |
|
|
186,576 |
|
INTANGIBLE ASSETS, net |
|
47,124 |
|
|
68,514 |
|
OTHER LONG-TERM ASSETS,
including reinsurance assets |
|
14,997 |
|
|
38,285 |
|
TOTAL
ASSETS |
|
1,286,430 |
|
|
1,350,945 |
|
LIABILITIES |
|
CURRENT LIABILITIES |
|
|
|
|
|
|
Accounts
payable |
|
21,453 |
|
|
17,101 |
|
Other
payables |
|
45,595 |
|
|
42,257 |
|
Current
portion of long-term borrowings |
|
8,863 |
|
|
14,789 |
|
Income
taxes payable |
|
6,287 |
|
|
7,676 |
|
Total current liabilities before settlement
obligations |
|
82,198 |
|
|
81,823 |
|
Settlement
obligations |
|
661,916 |
|
|
725,987 |
|
Total
current liabilities |
|
744,114 |
|
|
807,810 |
|
DEFERRED INCOME TAXES |
|
10,564 |
|
|
15,522 |
|
LONG-TERM BORROWINGS |
|
50,762 |
|
|
62,388 |
|
OTHER LONG-TERM LIABILITIES,
including insurance policy liabilities |
|
2,205 |
|
|
23,477 |
|
TOTAL
LIABILITIES |
|
807,645 |
|
|
909,197 |
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
EQUITY |
|
COMMON
STOCK |
|
|
|
|
|
|
Authorized:
200,000,000 with $0.001 par
value; Issued
and outstanding shares, net of treasury - 2015:46,679,565;
2014: 47,819,299
|
|
64 |
|
|
63 |
|
PREFERRED
STOCK |
|
|
|
|
|
|
Authorized
shares: 50,000,000 with $0.001 par
value; Issued
and outstanding shares, net of treasury: 2015: -; 2014: - |
|
- |
|
|
- |
|
ADDITIONAL PAID-IN-CAPITAL |
|
213,896 |
|
|
202,401 |
|
TREASURY
SHARES, AT COST: 2015: 18,057,228; 2014: 15,883,212 |
|
(214,520 |
) |
|
(200,681 |
) |
ACCUMULATED OTHER COMPREHENSIVE LOSS |
|
(139,181 |
) |
|
(82,741 |
) |
RETAINED
EARNINGS |
|
617,868 |
|
|
522,729 |
|
TOTAL NET1 EQUITY |
|
478,127 |
|
|
441,771 |
|
NON-CONTROLLING INTEREST |
|
658 |
|
|
(23 |
) |
TOTAL EQUITY |
|
478,785 |
|
|
441,748 |
|
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
$ |
1,286,430 |
|
$ |
1,350,945 |
|
(A) Derived from audited financial statements
NET 1 UEPS TECHNOLOGIES, INC.
Consolidated
Statements of Cash Flows
|
|
Unaudited |
|
|
A |
|
|
|
Three months ended |
|
|
Year ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
|
(In thousands) |
|
|
(In thousands) |
|
Cash flows from operating
activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
24,223 |
|
$ |
28,546 |
|
$ |
96,734 |
|
$ |
70,061 |
|
Adjustments to reconcile net
income to net cash
provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
10,294 |
|
|
10,041 |
|
|
40,685 |
|
|
40,286 |
|
Earnings
from equity-accounted investments |
|
(219 |
) |
|
(96 |
) |
|
(452 |
) |
|
(298 |
) |
Fair value adjustment |
|
518 |
|
|
(104 |
) |
|
248 |
|
|
(55 |
) |
Interest
payable |
|
7 |
|
|
404 |
|
|
1,283 |
|
|
2,100 |
|
Facility fee amortized |
|
38 |
|
|
81 |
|
|
208 |
|
|
738 |
|
Profit on
disposal of property, plant and equipment |
|
(1 |
) |
|
(392 |
) |
|
(296 |
) |
|
(434 |
) |
Profit on
deconsolidation of subsidiaries and business |
|
- |
|
|
55 |
|
|
- |
|
|
55 |
|
Stock
compensation charge, net of forfeitures |
|
513 |
|
|
898 |
|
|
3,195 |
|
|
3,718 |
|
Fair value of BEE equity
instruments granted |
|
- |
|
|
11,268 |
|
|
- |
|
|
11,268 |
|
(Increase) Decrease in accounts and finance
loans receivable, and
pre-funded grants
receivable |
|
(4,135 |
) |
|
(33,926 |
) |
|
1,399 |
|
|
(101,447 |
) |
(Increase) Decrease in
inventory |
|
(1,075 |
) |
|
(199 |
) |
|
(3,846 |
) |
|
780 |
|
Increase (Decrease) in accounts payable and other payables |
|
6,804 |
|
|
23,566 |
|
|
(850 |
) |
|
12,671 |
|
(Decrease) Increase in
taxes payable |
|
(3,507 |
) |
|
(3,908 |
) |
|
606 |
|
|
5,523 |
|
Decrease
in deferred taxes |
|
(1,631 |
) |
|
(4,802 |
) |
|
(3,656 |
) |
|
(7,821 |
) |
Net cash provided by operating activities |
|
31,829 |
|
|
31,432 |
|
|
135,258 |
|
|
37,145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
(11,614 |
) |
|
(6,597 |
) |
|
(36,436 |
) |
|
(23,906 |
) |
Proceeds from disposal of
property, plant and equipment |
|
80 |
|
|
866 |
|
|
857 |
|
|
2,990 |
|
Net cash outflow from sale of MediKredit |
|
- |
|
|
(669 |
) |
|
- |
|
|
(669 |
) |
Proceeds from sale of
business |
|
- |
|
|
186 |
|
|
1,895 |
|
|
186 |
|
(Acquisition of equity of)/ capital
reduction/ repayment of loan by equity-accounted investment |
|
(13,200 |
) |
|
564 |
|
|
(13,200 |
) |
|
539 |
|
Other investing activities,
net |
|
- |
|
|
- |
|
|
(29 |
) |
|
570 |
|
Net change in settlement assets |
|
(22,853 |
) |
|
20,059 |
|
|
(12,570 |
) |
|
(1,350 |
) |
Net
cash (used in) provided by investing activities |
|
(47,587 |
) |
|
14,409 |
|
|
(59,483 |
) |
|
(21,640 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of long-term
borrowings |
|
- |
|
|
- |
|
|
(14,128 |
) |
|
(87,008 |
) |
Long-term borrowings obtained |
|
789 |
|
|
1,044 |
|
|
3,765 |
|
|
73,677 |
|
Acquisition of treasury stock |
|
- |
|
|
- |
|
|
(9,151 |
) |
|
- |
|
Sale of equity to non-controlling interest |
|
- |
|
|
- |
|
|
1,407 |
|
|
- |
|
Dividends paid to
non-controlling interest |
|
- |
|
|
- |
|
|
(1,024 |
) |
|
- |
|
Proceeds from issue of common stock |
|
265 |
|
|
110 |
|
|
2,045 |
|
|
198 |
|
Payment of facility fee |
|
- |
|
|
- |
|
|
- |
|
|
(872 |
) |
Proceeds from bank overdraft |
|
- |
|
|
- |
|
|
- |
|
|
24,580 |
|
Repayment of bank overdraft |
|
- |
|
|
- |
|
|
- |
|
|
(23,335 |
) |
Acquisition of interests in KSNET |
|
- |
|
|
- |
|
|
- |
|
|
(1,968 |
) |
Net change in settlement
obligations |
|
22,853 |
|
|
(20,059 |
) |
|
12,570 |
|
|
1,350 |
|
Net
cash provided by (used in) financing activities |
|
23,907 |
|
|
(18,905 |
) |
|
(4,516 |
) |
|
(13,378 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash |
|
(1,568 |
) |
|
861 |
|
|
(12,348 |
) |
|
2,880 |
|
Net increase in cash and cash
equivalents |
|
6,581 |
|
|
27,797 |
|
|
58,911 |
|
|
5,007 |
|
Cash and cash equivalents
beginning of year |
|
111,002 |
|
|
30,875 |
|
|
58,672 |
|
|
53,665 |
|
Cash and cash equivalents at end of
year |
$ |
117,583 |
|
$ |
58,672 |
|
$ |
117,583 |
|
$ |
58,672 |
|
(A) Derived from audited financial statements
Net 1 UEPS Technologies, Inc.
Attachment A
Operating segment revenue, operating income and operating
margin:
Three months ended June 30, 2015 and 2014 and March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
constant |
|
|
|
|
|
|
|
|
|
|
|
|
Change - actual |
|
|
exchange
rate(1) |
|
|
|
|
|
|
|
|
|
|
|
|
Q4 15 |
|
|
Q4 15 |
|
|
Q4 15 |
|
|
Q4 15 |
|
|
|
|
|
|
|
|
|
|
|
|
vs |
|
|
vs |
|
|
vs |
|
|
vs |
|
Key segmental data, in $ 000,
|
|
Q4 15 |
|
|
Q4 14 |
|
|
Q3 15 |
|
|
Q414 |
|
|
Q3 15 |
|
|
Q414 |
|
|
Q3 15 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South African transaction processing |
$ |
59,774 |
|
$ |
88,265 |
|
$ |
57,999 |
|
|
(32% |
) |
|
3% |
|
|
(22% |
) |
|
6% |
|
International transaction
processing |
|
42,573 |
|
|
42,201 |
|
|
38,311 |
|
|
1% |
|
|
11% |
|
|
17% |
|
|
14% |
|
Financial inclusion and applied technologies
|
|
73,042 |
|
|
64,093 |
|
|
66,830 |
|
|
14% |
|
|
9% |
|
|
32% |
|
|
12% |
|
Subtotal: Operating segments |
|
175,389 |
|
|
194,559 |
|
|
163,140 |
|
|
(10% |
) |
|
8% |
|
|
4% |
|
|
10% |
|
Intersegment eliminations |
|
(11,103 |
) |
|
(11,806 |
) |
|
(12,019 |
) |
|
(6% |
) |
|
(8% |
) |
|
9% |
|
|
(5% |
) |
Consolidated
revenue |
$ |
164,286 |
|
$ |
182,753 |
|
$ |
151,121 |
|
|
(10% |
) |
|
9% |
|
|
4% |
|
|
12% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South African transaction processing |
$ |
11,268 |
|
$ |
38,675 |
|
$ |
13,218 |
|
|
(71% |
) |
|
(15% |
) |
|
(66% |
) |
|
(13% |
) |
International transaction
processing |
|
7,134 |
|
|
6,647 |
|
|
6,579 |
|
|
7% |
|
|
8% |
|
|
24% |
|
|
11% |
|
Financial inclusion and applied technologies
|
|
19,385 |
|
|
18,126 |
|
|
17,906 |
|
|
7% |
|
|
8% |
|
|
24% |
|
|
11% |
|
Subtotal: Operating segments |
|
37,787 |
|
|
63,448 |
|
|
37,703 |
|
|
(40% |
) |
|
0% |
|
|
(31% |
) |
|
3% |
|
Corporate/Eliminations |
|
(5,174 |
) |
|
(20,801 |
) |
|
(5,737 |
) |
|
(75% |
) |
|
(10% |
) |
|
(71% |
) |
|
(7% |
) |
Consolidated operating income |
$ |
32,613 |
|
$ |
42,647 |
|
$ |
31,966 |
|
|
(24% |
) |
|
2% |
|
|
(12% |
) |
|
5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income margin
(%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South African transaction processing |
|
19% |
|
|
44% |
|
|
23% |
|
|
|
|
|
|
|
|
|
|
|
|
|
International transaction
processing |
|
17% |
|
|
16% |
|
|
17% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial inclusion and applied technologies
|
|
27% |
|
|
28% |
|
|
27% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated operating margin |
|
20% |
|
|
23% |
|
|
21% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) This information shows what the change in these
items would have been if the USD/ ZAR exchange rate that prevailed during the
fourth quarter of fiscal 2015 also prevailed during the fourth quarter of fiscal
2014 and the third quarter of fiscal 2015.
Year ended June 30, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
constant |
|
|
|
|
|
|
|
|
|
Change - |
|
|
exchange |
|
|
|
|
|
|
|
|
|
actual |
|
|
rate(1) |
|
|
|
|
|
|
|
|
|
F2015 |
|
|
F2015 |
|
|
|
|
|
|
|
|
|
vs |
|
|
vs |
|
Key segmental data, in 000, except
margins |
|
F2015 |
|
|
F2014 |
|
|
F2015 |
|
|
F2015 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
South African transaction processing |
|
236,452 |
|
|
261,577 |
|
|
(10% |
) |
|
(1% |
) |
International transaction
processing |
|
164,554 |
|
|
152,725 |
|
|
8% |
|
|
18% |
|
Financial inclusion and applied technologies
|
|
272,600 |
|
|
207,595 |
|
|
31% |
|
|
44% |
|
Subtotal: Operating segments |
|
673,606 |
|
|
621,897 |
|
|
8% |
|
|
19% |
|
Intersegment eliminations |
|
(47,627 |
) |
|
(40,241 |
) |
|
18% |
|
|
30% |
|
Consolidated
revenue |
|
625,979 |
|
|
581,656 |
|
|
8% |
|
|
18% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss): |
|
|
|
|
|
|
|
|
|
|
|
|
South African transaction processing |
|
51,008 |
|
|
61,401 |
|
|
(17% |
) |
|
(9% |
) |
International transaction
processing |
|
26,805 |
|
|
21,952 |
|
|
22% |
|
|
34% |
|
Financial inclusion and applied technologies
|
|
72,725 |
|
|
60,685 |
|
|
20% |
|
|
32% |
|
Subtotal: Operating segments |
|
150,538 |
|
|
144,038 |
|
|
5% |
|
|
15% |
|
Corporate/Eliminations |
|
(22,019 |
) |
|
(42,240 |
) |
|
(48% |
) |
|
(43% |
) |
Consolidated operating income |
|
128,519 |
|
|
101,798 |
|
|
26% |
|
|
39% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income margin
(%) |
|
|
|
|
|
|
|
|
|
|
|
|
South African transaction processing |
|
22% |
|
|
23% |
|
|
|
|
|
|
|
International transaction
processing |
|
16% |
|
|
14% |
|
|
|
|
|
|
|
Financial inclusion and applied technologies
|
|
27% |
|
|
29% |
|
|
|
|
|
|
|
Overall operating margin |
|
21% |
|
|
18% |
|
|
|
|
|
|
|
(1) This information shows what the change in these
items would have been if the USD/ ZAR exchange rate that prevailed during fiscal
2015 also prevailed during 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 and to
fundamental net income and earnings per share, basic excluding recovery from
SASSA:
Three months ended June 30, 2015 and 2014
|
|
|
|
|
EPS, |
|
|
|
|
|
|
|
|
EPS, |
|
|
|
Net income |
|
|
basic |
|
|
Net income |
|
|
basic |
|
|
|
(USD000) |
|
|
(USD) |
|
|
(ZAR000) |
|
|
(ZAR) |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
23,914 |
|
|
28,584 |
|
|
0.51 |
|
|
0.59 |
|
|
288,035 |
|
|
297,897 |
|
|
6.18 |
|
|
6.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset amortization, net . |
|
2,751 |
|
|
2,960 |
|
|
|
|
|
|
|
|
33,131 |
|
|
30,842 |
|
|
|
|
|
|
|
Stock-based compensation charge |
|
513 |
|
|
898 |
|
|
|
|
|
|
|
|
6,179 |
|
|
9,359 |
|
|
|
|
|
|
|
Facility fees for KSNET debt |
|
38 |
|
|
79 |
|
|
|
|
|
|
|
|
458 |
|
|
823 |
|
|
|
|
|
|
|
US government investigations-
related and US lawsuit expenses |
|
17 |
|
|
53 |
|
|
|
|
|
|
|
|
205 |
|
|
552 |
|
|
|
|
|
|
|
BEE equity instruments charge |
|
- |
|
|
11,268 |
|
|
|
|
|
|
|
|
- |
|
|
118,740 |
|
|
|
|
|
|
|
Net loss on deconsolidation
of
subsidiaries and business, net of
tax |
|
- |
|
|
443 |
|
|
|
|
|
|
|
|
- |
|
|
4,617 |
|
|
|
|
|
|
|
Transaction-related costs |
|
- |
|
|
77 |
|
|
|
|
|
|
|
|
- |
|
|
802 |
|
|
|
|
|
|
|
Fundamental |
|
27,233 |
|
|
44,362 |
|
|
0.58 |
|
|
0.91 |
|
|
328,008 |
|
|
463,632 |
|
|
7.04 |
|
|
9.52 |
|
Recovery from SASSA, net of tax . |
|
- |
|
|
19,177 |
|
|
|
|
|
|
|
|
- |
|
|
199,861 |
|
|
|
|
|
|
|
Fundamental
excluding
recovery from SASSA,
net of tax |
|
27,233 |
|
|
25,185 |
|
|
0.58 |
|
|
0.52 |
|
|
328,008 |
|
|
263,771 |
|
|
7.04 |
|
|
5.42 |
|
Year ended June 30, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS, |
|
|
|
Net income |
|
|
EPS, basic |
|
|
Net income |
|
|
basic |
|
|
|
(USD000) |
|
|
(USD) |
|
|
(ZAR000) |
|
|
(ZAR) |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
94,735 |
|
|
70,111 |
|
|
2.03 |
|
|
1.51 |
|
|
1,082,584 |
|
|
728,916 |
|
|
23.17 |
|
|
15.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset amortization, net . |
|
11,263 |
|
|
12,490 |
|
|
|
|
|
|
|
|
128,708 |
|
|
129,846 |
|
|
|
|
|
|
|
Stock-based compensation charge |
|
3,195 |
|
|
3,718 |
|
|
|
|
|
|
|
|
36,511 |
|
|
38,655 |
|
|
|
|
|
|
|
Refund for KSNET litigation |
|
(1,354 |
) |
|
- |
|
|
|
|
|
|
|
|
(15,473 |
) |
|
- |
|
|
|
|
|
|
|
Facility fees for KSNET debt |
|
208 |
|
|
657 |
|
|
|
|
|
|
|
|
2,377 |
|
|
6,831 |
|
|
|
|
|
|
|
US government investigations-
related and US lawsuit expenses |
|
158 |
|
|
2,579 |
|
|
|
|
|
|
|
|
1,806 |
|
|
26,813 |
|
|
|
|
|
|
|
BEE equity instruments charge |
|
- |
|
|
11,268 |
|
|
|
|
|
|
|
|
- |
|
|
118,740 |
|
|
|
|
|
|
|
Net loss on deconsolidation
of
subsidiaries and business, net of
tax |
|
- |
|
|
443 |
|
|
|
|
|
|
|
|
- |
|
|
4,606 |
|
|
|
|
|
|
|
Transaction-related costs |
|
- |
|
|
77 |
|
|
|
|
|
|
|
|
- |
|
|
806 |
|
|
|
|
|
|
|
Fundamental |
|
108,205 |
|
|
101,343 |
|
|
2.32 |
|
|
2.18 |
|
|
1,236,513 |
|
|
1,055,213 |
|
|
26.46 |
|
|
22.70 |
|
Recovery from SASSA, net of tax . |
|
- |
|
|
19,177 |
|
|
|
|
|
|
|
|
- |
|
|
199,861 |
|
|
|
|
|
|
|
Fundamental
excluding
recovery from SASSA, net of
tax |
|
108,205 |
|
|
82,166 |
|
|
2.32 |
|
|
1.77 |
|
|
1,236,513 |
|
|
855,352 |
|
|
26.46 |
|
|
18.40 |
|
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 June 30, 2015 and 2014
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
|
|
Net income (USD000) |
|
23,914 |
|
|
28,584 |
|
Adjustments: |
|
|
|
|
|
|
Profit on
sale of property, plant and equipment |
|
(1 |
) |
|
(392 |
) |
Loss on deconsolidation
of subsidiaries and business |
|
- |
|
|
55 |
|
Tax
effects on above |
|
- |
|
|
(287 |
) |
Net income used to calculate headline
earnings (USD000) |
|
23,913 |
|
|
27,960 |
|
Weighted average number of
shares used to calculate net income per share basic earnings
and headline
earnings per share basic earnings (000) |
|
46,620 |
|
|
48,695 |
|
Weighted average number of shares used to
calculate net income per share diluted
earnings and headline earnings per
share diluted earnings (000) |
|
46,944 |
|
|
48,855 |
|
Headline earnings per share:
|
|
|
|
|
|
|
Basic, in USD |
|
0.51 |
|
|
0.57 |
|
Diluted,
in USD |
|
0.51 |
|
|
0.57 |
|
Year ended June 30, 2015 and 2014
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
|
|
Net income (USD000) |
|
94,735 |
|
|
70,111 |
|
Adjustments: |
|
|
|
|
|
|
Profit on
sale of property, plant and equipment |
|
(296 |
) |
|
(434 |
) |
Loss on deconsolidation
of subsidiaries and business |
|
- |
|
|
55 |
|
Tax
effects on above |
|
83 |
|
|
(276 |
) |
Net income used to calculate headline
earnings (USD000) |
|
94,522 |
|
|
69,456 |
|
Weighted average number of
shares used to calculate net income per share basic earnings
and headline
earnings per share basic earnings (000) |
|
46,733 |
|
|
46,484 |
|
Weighted average number of shares used to
calculate net income per share diluted
earnings and headline earnings per
share diluted earnings (000) |
|
46,913 |
|
|
46,603 |
|
Headline earnings per share:
|
|
|
|
|
|
|
Basic, in USD |
|
2.02 |
|
|
1.49 |
|
Diluted,
in USD |
|
2.01 |
|
|
1.49 |
|
Calculation of the denominator for headline diluted earnings
per share
|
|
Q4 15 |
|
|
Q4 14 |
|
|
F2015 |
|
|
F2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average common
shares outstanding and unvested restricted shares expected to vest under
GAAP |
|
46,620 |
|
|
48,695 |
|
|
46,733 |
|
|
46,484 |
|
Effect of dilutive
securities under GAAP |
|
324 |
|
|
160 |
|
|
180 |
|
|
119 |
|
Denominator for headline diluted earnings per share |
|
46,944 |
|
|
48,855 |
|
|
46,913 |
|
|
46,603 |
|
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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Von Jun 2024 bis Jul 2024
Net 1 Ueps Technologies (NASDAQ:UEPS)
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Von Jul 2023 bis Jul 2024