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
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 |
(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 5, 2015, we issued a press release setting forth
our financial results for the first quarter ended September 30, 2015. A copy of
the press release is attached as Exhibit 99.1.
Item 8.01. Other Events.
On November 5, 2015, the South African Social Security Agency
filed a progress report with the South African Constitutional Court
(“Constitutional Court”) setting out the relevant information on whether and
when it will be ready to assume the duty to pay grants itself. A copy of the
filing with the Constitutional Court is attached as Exhibit 99.2.
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: November 5, 2015 |
By: |
/s/ Serge C.P. Belamant |
| |
|
Dr. Serge C.P. Belamant |
|
|
Chief Executive Officer and
Chairman of the Board |
Exhibit 99.1
Net 1 UEPS Technologies, Inc. Reports First Quarter 2016
Results
JOHANNESBURG, November 5, 2015 – Net 1 UEPS Technologies, Inc.
(Nasdaq: UEPS; JSE: NT1) today released results for the first quarter of fiscal
2016.
-
Q1 2016 Revenue and FEPS of $154.5 million and $0.56, a constant
currency increase of 19% and 16% respectively.
-
More than 350,000 EPE cards issued and approximately 750 ATMs deployed
to October 2015; and
-
SASSA cancels tender process resulting in contract to March 2017, and
Court dismisses U.S. class action lawsuit.
Summary Financial Metrics
| |
|
Three months ended September 30, |
|
| |
|
|
|
|
|
|
|
% change |
|
|
% change |
|
| |
|
2015 |
|
|
2014 |
|
|
in USD |
|
|
in ZAR |
|
| (All figures in USD ‘000s except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
154,473 |
|
|
156,441 |
|
|
(1% |
) |
|
19% |
|
| GAAP net income |
|
23,020 |
|
|
24,089 |
|
|
(4% |
) |
|
15% |
|
| Fundamental net income (1) |
|
26,458 |
|
|
28,155 |
|
|
(6% |
) |
|
16% |
|
| GAAP earnings per share ($) |
|
0.49 |
|
|
0.51 |
|
|
(3% |
) |
|
17% |
|
| Fundamental earnings per share ($) (1) |
|
0.56 |
|
|
0.60 |
|
|
(7% |
) |
|
16% |
|
| Fully-diluted shares outstanding (‘000’s) |
|
47,080 |
|
|
47,335 |
|
|
(1% |
) |
|
|
|
| Average period USD/ ZAR exchange rate |
|
12.96 |
|
|
10.76 |
|
|
20% |
|
|
|
|
(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 2016 and Q1 2015
results
- Unfavorable impact from the strengthening of the U.S. dollar against
primary functional currencies: The U.S. dollar appreciated by 21%
against the ZAR and 13% against the KRW during Q1 2016, which negatively
impacted our reported results;
- Increased contribution by KSNET: Our results were positively
impacted by growth in our Korean operations;
- Continued growth in financial inclusion services: We
continued to grow our financial inclusion services offerings during Q12016
which has resulted in higher revenues and operating income, primarily from
more sales of low- margin prepaid airtime and an increase in transaction fees;
- Increase in the number of SASSA grants paid: Our revenue and
operating income have increased as a result of the higher number of SASSA
UEPS/EMV cardholders paid during Q1 2016 compared with Q1 2015;and
- Launch of EPE and Smart Life: During Q1 2016, we launched
our EPE and Smart Life offerings, which contributed to a marginal increase in
revenue in ZAR, as well as an associated increase in establishment costs.
Comments and Outlook
“In addition to the solid results that we have once again
achieved, the take-up of our strategic initiatives to date, such as EasyPay
Everywhere and ZAZOO, continues to validate our business strategy,” said Dr.
Serge Belamant, Chairman and CEO of Net1. “The pipeline for both our
card-centric and mobile-centric projects augurs well for the continued organic
growth of our business, and the resultant value creation for shareholders,” he
concluded.
“We achieved our great Q1 constant currency results despite the
resources committed for the roll-out of our EPE, Smart Life and ATM
initiatives,” said Herman Kotzé, Chief Financial Officer of Net1. “For fiscal
2016, we continue to expect fundamental earnings per share of at least $2.57,
assuming a constant currency base of ZAR11.43/ $1 and a share count of 46.7
million shares,” he concluded.
SASSA files progress report on the status of a new tender
process with the South African Constitutional Court
As a result of SASSA’s decision not to award the new tender,
and in accordance with the Constitutional Court’s order, SASSA filed a report
today setting out the relevant information on whether and when it will be ready
to assume the duty to pay grants itself. A full copy of the report is available
on our website (www.net1.com).
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 $55.6 million in Q1 2016, down 8% compared
with Q1 2015 in USD and up 11% on a constant currency basis. In ZAR, the
increase in segment revenue was primarily due to more low-margin transaction
fees generated from cardholders using the South African National Payment System
and an increase in the number of social welfare grants distributed, offset by
fewer inter-segment transaction processing activities. Our operating income
margin for Q1 2016 and 2015 was 24% and 23%, respectively, and has increased
primarily due to an increase in the number of beneficiaries paid in Q1 2016 and
a modest increase in the margin of transaction fees generated from cardholders
using the South African National Payment System.
International transaction
processing
Segment revenue was $41.2 million in Q1 2016, down 5% compared
with Q1 2015 in USD and up 15% on a constant currency basis. Revenue increased
in constant currency primarily due to higher transaction volume at KSNET during
Q1 2016. Operating income during the first fiscal quarter of 2016 was higher due
to increase in revenue contribution from KSNET and a positive contribution by
XeoHealth, but was partially offset by ongoing ZAZOO start-up costs in the UK
and India. Operating income margin for Q1 2016 and 2015 was 16% and 17%,
respectively.
Financial inclusion and applied
technologies
Segment revenue was $67.4 million in Q1 2016, up 3% compared
with Q1 2015 in USD and 24% on a constant currency basis. In ZAR, Financial
inclusion and applied technologies revenue and operating income increased
primarily due to higher prepaid airtime and other value-added services sales,
more ad hoc terminal and card sales and, in ZAR, an increase in inter-segment
revenues. Operating income for Q1 2016, was adversely impacted by establishment
costs for EPE and Smart Life. The South African National Credit Act, made
certain industry-wide amendments, which became effective March 13, 2015. These
amendments were introduced primarily to address over-indebtedness of South
African consumers and requires lenders to perform a stricter affordability
assessment. Compliance with the amended legislation had a modest impact on our
UEPS-based lending businesses in Q4 2015 and Q1 2016, but should moderate going
forward. Operating income margin for the Financial inclusion and applied
technologies segment was 25% and 27%, respectively, during Q1 2016 and 2015, and
has decreased primarily due to the sale of more low-margin prepaid airtime and
establishment costs for EPE and Smart Life.
Corporate/eliminations
In USD, our corporate expenses have decreased primarily due to
the impact of the stronger USD on goods and services procured in other
currencies, primarily the ZAR, and lower amortization costs, partially offset by
modest increases in USD denominated goods and services purchased from third
parties and directors’ fees.
Cash flow and liquidity
At September 30, 2015, we had cash and cash equivalents of
$125.6 million, up from $117.6 million at June 30, 2015. The increase in our
cash balances from June 30, 2015, was primarily due to the expansion of all of
our core businesses, offset by provisional tax payments, capital expenditures
and the strengthening of the U.S. dollar against our primary functional
currencies.
Excluding the impact of interest received, interest paid under
our Korean debt and taxes, the decrease in cash from operating activities
resulted from the timing of receipts of cash from customers. Capital
expenditures for Q1 2016 and 2015 were $10.7 million and $9.4 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. 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
We will host a conference call to review Q1 2016 results on
November 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 November 29, 2015.
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. Net1’s 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.
Net1’s 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. |
| Unaudited Condensed Consolidated Statements of
Operations |
| |
|
Three months ended |
|
| |
|
September 30, |
|
| |
|
2015 |
|
|
2014 |
|
| |
|
(In thousands, except per share
data) |
|
| REVENUE |
$ |
154,473 |
|
$ |
156,441 |
|
| EXPENSE |
|
|
|
|
|
|
| Cost of
goods sold, IT processing, servicing and support |
|
77,382 |
|
|
74,406 |
|
| Selling, general and
administration |
|
35,761 |
|
|
38,736 |
|
|
Depreciation and amortization |
|
10,115 |
|
|
10,174 |
|
| OPERATING INCOME |
|
31,215 |
|
|
33,125 |
|
| INTEREST INCOME |
|
4,275 |
|
|
4,090 |
|
| INTEREST EXPENSE |
|
974
|
|
|
1,312
|
|
| INCOME BEFORE INCOME TAX EXPENSE |
|
34,516 |
|
|
35,903 |
|
| INCOME TAX EXPENSE |
|
10,897 |
|
|
11,648 |
|
| NET INCOME BEFORE EARNINGS FROM
EQUITY-ACCOUNTED INVESTMENTS |
|
23,619 |
|
|
24,255 |
|
| EARNINGS FROM EQUITY-ACCOUNTED INVESTMENTS |
|
188
|
|
|
92
|
|
| NET INCOME |
|
23,807 |
|
|
24,347 |
|
| LESS NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST
|
|
787
|
|
|
258
|
|
| NET INCOME ATTRIBUTABLE TO NET1 |
$ |
23,020 |
|
$ |
24,089 |
|
| Net income per share, in United States dollars |
|
|
|
|
|
|
| Basic
earnings attributable to Net1 shareholders |
$ |
0.49 |
|
$ |
0.51 |
|
| Diluted earnings
attributable to Net1 shareholders |
$ |
0.49 |
|
$ |
0.51 |
|
| NET 1 UEPS TECHNOLOGIES, INC. |
| Unaudited Condensed Consolidated Balance Sheets
|
| |
|
Unaudited |
|
|
(A) |
|
| |
|
September 30, |
|
|
June 30, |
|
| |
|
2015 |
|
|
2015 |
|
| |
|
(In thousands, except share data) |
|
| ASSETS |
|
| CURRENT ASSETS |
|
|
|
|
|
|
| Cash and cash
equivalents |
$ |
125,610 |
|
$ |
117,583 |
|
| Pre-funded social welfare grants
receivable |
|
1,411 |
|
|
2,306 |
|
| Accounts receivable,
net of allowances of – September: $2,767; June: $1,956 |
|
153,453 |
|
|
148,768 |
|
| Finance loans receivable, net of
allowances of – September: $3,640; June: $4,227 |
|
33,921 |
|
|
40,373 |
|
| Inventory |
|
12,335 |
|
|
12,979 |
|
| Deferred income taxes |
|
6,829
|
|
|
7,298
|
|
|
Total current assets before settlement assets |
|
333,559 |
|
|
329,307 |
|
|
Settlement assets |
|
600,195 |
|
|
661,916 |
|
|
Total
current assets |
|
933,754 |
|
|
991,223 |
|
| PROPERTY, PLANT AND EQUIPMENT, net of accumulated
depreciation of – September: $92,145; June: $94,014 |
|
52,048 |
|
|
52,320 |
|
| EQUITY-ACCOUNTED INVESTMENTS |
|
14,342 |
|
|
14,329 |
|
| GOODWILL |
|
154,294 |
|
|
166,437 |
|
| INTANGIBLE ASSETS, net |
|
40,862 |
|
|
47,124 |
|
| OTHER LONG-TERM ASSETS, including reinsurance assets |
|
13,982 |
|
|
14,997 |
|
| TOTAL ASSETS |
|
1,209,282 |
|
|
1,286,430 |
|
| LIABILITIES |
|
| CURRENT LIABILITIES |
|
|
|
|
|
|
| Accounts payable |
|
15,527 |
|
|
21,453 |
|
| Other payables |
|
49,011 |
|
|
45,595 |
|
| Current portion of long-term borrowings
|
|
8,359 |
|
|
8,863 |
|
| Income taxes payable
|
|
12,848 |
|
|
6,287 |
|
| Total
current liabilities before settlement obligations |
|
85,745 |
|
|
82,198 |
|
| Settlement
obligations |
|
600,195 |
|
|
661,916 |
|
|
Total current liabilities
|
|
685,940 |
|
|
744,114 |
|
| DEFERRED INCOME TAXES |
|
9,169 |
|
|
10,564 |
|
| LONG-TERM BORROWINGS |
|
48,561 |
|
|
50,762 |
|
| OTHER LONG-TERM LIABILITIES, including
insurance policy liabilities |
|
2,178 |
|
|
2,205 |
|
| TOTAL LIABILITIES |
|
745,848 |
|
|
807,645 |
|
| COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
| EQUITY |
|
| COMMON STOCK |
|
|
|
|
|
|
| Authorized:
200,000,000 with $0.001 par value; Issued and outstanding shares, net of
treasury - September: 47,322,702; June: 46,679,565 |
|
64 |
|
|
64 |
|
| 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 |
|
218,384 |
|
|
213,896 |
|
| TREASURY SHARES, AT COST: September:
18,057,228; June: 18,057,228 |
|
(214,520 |
) |
|
(214,520 |
) |
| ACCUMULATED OTHER
COMPREHENSIVE LOSS |
|
(182,545 |
) |
|
(139,181 |
) |
| RETAINED EARNINGS |
|
640,888 |
|
|
617,868 |
|
|
TOTAL NET1 EQUITY |
|
462,271 |
|
|
478,127 |
|
|
NON-CONTROLLING INTEREST |
|
1,163
|
|
|
658
|
|
|
TOTAL EQUITY |
|
463,434 |
|
|
478,785 |
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
$ |
1,209,282 |
|
$ |
1,286,430 |
|
(A) – Derived from audited financial statements
| NET 1 UEPS TECHNOLOGIES, INC. |
| Unaudited Condensed Consolidated Statements of Cash
Flows |
| |
|
Three months ended |
|
| |
|
September 30, |
|
| |
|
2015 |
|
|
2014 |
|
| |
|
(In thousands) |
|
| Cash flows from operating activities
|
|
|
|
|
|
|
| Net income |
$ |
23,807 |
|
$ |
24,347 |
|
| Depreciation and amortization |
|
10,115 |
|
|
10,174 |
|
| Earnings from equity-accounted investments |
|
(188 |
) |
|
(92 |
) |
| Fair value adjustments |
|
1,433 |
|
|
413 |
|
| Interest payable |
|
709 |
|
|
1,159 |
|
| Profit on disposal of plant and equipment
|
|
(95 |
) |
|
(122 |
) |
| Stock-based compensation charge |
|
726 |
|
|
916 |
|
| Facility fee amortized |
|
34 |
|
|
82 |
|
| (Increase) Decrease in accounts receivable, pre-funded
social welfare grants receivable |
|
|
|
|
|
|
| and finance loans receivable |
|
(17,278 |
) |
|
9,470 |
|
| Increase in inventory |
|
(931 |
) |
|
(2,123 |
) |
| Increase (Decrease) in accounts payable and
other payables |
|
2,972 |
|
|
(10,933 |
) |
| Increase in taxes payable |
|
7,824 |
|
|
6,611 |
|
| Decrease in deferred taxes |
|
(1,026 |
) |
|
(390 |
) |
| Net cash provided by operating
activities |
|
28,102 |
|
|
39,512 |
|
| Cash flows from investing activities
|
|
|
|
|
|
|
| Capital expenditures |
|
(10,698 |
) |
|
(9,378 |
) |
| Proceeds from disposal of property, plant
and equipment |
|
348 |
|
|
241 |
|
| Proceeds from sale of business |
|
- |
|
|
1,895 |
|
| Net change in settlement assets |
|
(21,575 |
) |
|
(43,054 |
) |
| Net cash used in
investing activities |
|
(31,925 |
) |
|
(50,296 |
) |
| Cash flows from financing activities
|
|
|
|
|
|
|
| Proceeds from issue of common stock |
|
3,762 |
|
|
989 |
|
| Long-term borrowings utilized |
|
720 |
|
|
1,097 |
|
| Acquisition of treasury stock |
|
- |
|
|
(9,151 |
) |
| Sale of equity to non-controlling interest
|
|
- |
|
|
1,407 |
|
| Net change in settlement obligations |
|
21,575 |
|
|
43,054 |
|
| Net cash provided by
financing activities |
|
26,057 |
|
|
37,396 |
|
| Effect of exchange rate changes on cash |
|
(14,207 |
) |
|
(4,099 |
) |
| Net increase in cash and cash
equivalents |
|
8,027 |
|
|
22,513 |
|
| Cash and cash equivalents – beginning of period |
|
117,583 |
|
|
58,672 |
|
| Cash and cash equivalents – end of
period |
$ |
125,610 |
|
$ |
81,185 |
|
Net 1 UEPS Technologies, Inc.
|
Attachment A
|
Operating segment revenue, operating income and
operating margin:
|
| Three months ended September 30, 2015 and 2014 and June
30, 2015 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change – constant |
|
| |
|
|
|
|
|
|
|
|
|
|
Change - actual |
|
|
exchange rate(1) |
|
| |
|
|
|
|
|
|
|
|
|
|
Q1 ‘16 |
|
|
Q1 ‘16 |
|
|
Q1 ‘16 |
|
|
Q1 ‘16 |
|
| |
|
|
|
|
|
|
|
|
|
|
vs |
|
|
vs |
|
|
vs |
|
|
vs |
|
| Key segmental data, in $ ’000, |
|
Q1
‘16 |
|
|
Q1
‘15 |
|
|
Q4
‘15 |
|
|
Q1‘15 |
|
|
Q4
‘15 |
|
|
Q1‘15 |
|
|
Q4
‘15 |
|
| Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| South African transaction processing |
$ |
55,639 |
|
$ |
60,252 |
|
$ |
59,774 |
|
|
(8% |
) |
|
(7% |
) |
|
11% |
|
|
0% |
|
| International transaction processing |
|
41,229 |
|
|
43,204 |
|
|
42,573 |
|
|
(5% |
) |
|
(3% |
) |
|
15% |
|
|
4% |
|
| Financial inclusion and applied
technologies |
|
67,360 |
|
|
65,197 |
|
|
73,042 |
|
|
3% |
|
|
(8% |
) |
|
24% |
|
|
(1% |
) |
| Subtotal: Operating
segments |
|
164,228 |
|
|
168,653 |
|
|
175,389 |
|
|
(3% |
) |
|
(6% |
) |
|
17% |
|
|
1% |
|
|
Intersegment eliminations |
|
(9,755 |
) |
|
(12,212 |
) |
|
(11,103 |
) |
|
(20% |
) |
|
(12% |
) |
|
(4% |
) |
|
(5% |
) |
|
Consolidated revenue |
$ |
154,473 |
|
$ |
156,441 |
|
$ |
164,286 |
|
|
(1% |
) |
|
(6% |
) |
|
19% |
|
|
1% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| South African transaction processing |
$ |
13,511 |
|
$ |
13,639 |
|
$ |
11,268 |
|
|
(1% |
) |
|
20% |
|
|
19% |
|
|
29% |
|
| International transaction processing |
|
6,543 |
|
|
7,349 |
|
|
7,134 |
|
|
(11% |
) |
|
(8% |
) |
|
7% |
|
|
(1% |
) |
| Financial inclusion and applied
technologies |
|
16,554 |
|
|
17,607 |
|
|
19,385 |
|
|
(6% |
) |
|
(15% |
) |
|
13% |
|
|
(8% |
) |
| Subtotal: Operating
segments |
|
36,608 |
|
|
38,595 |
|
|
37,787 |
|
|
(5% |
) |
|
(3% |
) |
|
14% |
|
|
4% |
|
|
Corporate/Eliminations |
|
(5,393 |
) |
|
(5,470 |
) |
|
(5,174 |
) |
|
(1% |
) |
|
4% |
|
|
19% |
|
|
12% |
|
|
Consolidated operating income |
$ |
31,215
|
|
$ |
33,125
|
|
$ |
32,613
|
|
|
(6% |
) |
|
(4% |
) |
|
14% |
|
|
3% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income margin (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| South African transaction processing |
|
24% |
|
|
23% |
|
|
19% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| International transaction processing |
|
16% |
|
|
17% |
|
|
17% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financial inclusion and applied
technologies |
|
25% |
|
|
27% |
|
|
27% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated operating
margin |
|
20% |
|
|
21% |
|
|
20% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 2016 also prevailed during the first quarter of fiscal
2015 and the fourth quarter of fiscal 2015.
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, 2015 and 2014
|
| |
|
|
|
|
|
|
EPS, |
|
|
|
|
|
|
|
|
EPS, |
|
| |
Net income |
|
|
basic |
|
|
Net income |
|
|
basic |
|
| |
(USD’000) |
|
|
(USD) |
|
|
(ZAR’000) |
|
|
(ZAR) |
|
| |
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP |
23,020 |
|
|
24,089 |
|
|
0.49 |
|
|
0.51 |
|
|
298,300 |
|
|
258,789 |
|
|
6.36 |
|
|
5.48 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Intangible asset
amortization, net . |
2,554 |
|
|
2,941 |
|
|
|
|
|
|
|
|
39,886 |
|
|
31,601 |
|
|
|
|
|
|
|
| Stock-based compensation charge |
726 |
|
|
916 |
|
|
|
|
|
|
|
|
9,408 |
|
|
9,854 |
|
|
|
|
|
|
|
| Facility fees for KSNET
debt |
34 |
|
|
82 |
|
|
|
|
|
|
|
|
441 |
|
|
882 |
|
|
|
|
|
|
|
US government investigations-
related
and US lawsuit expenses |
124 |
|
|
127 |
|
|
|
|
|
|
|
|
1,607 |
|
|
1,366 |
|
|
|
|
|
|
|
|
Fundamental |
26,458 |
|
|
28,155 |
|
|
0.56 |
|
|
0.60 |
|
|
349,642 |
|
|
302,492 |
|
|
7.45 |
|
|
6.41 |
|
| 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, 2015 and 2014
|
| |
|
2015 |
|
|
2014 |
|
| |
|
|
|
|
|
|
| Net income (USD’000) |
|
23,020 |
|
|
24,089 |
|
| Adjustments: |
|
|
|
|
|
|
| Profit on sale of
property, plant and equipment |
|
(95 |
) |
|
(122 |
) |
| Tax effects on above |
|
27
|
|
|
34
|
|
| |
|
|
|
|
|
|
| Net income used to calculate headline earnings (USD’000)
|
|
22,952 |
|
|
24,001 |
|
Weighted average number of shares used to
calculate net income per share
basic earnings and headline earnings per
share basic earnings (‘000) |
|
46,620 |
|
|
47,226 |
|
Weighted average number of shares used to calculate net
income per share
diluted earnings and headline earnings per share diluted
earnings (‘000) |
|
47,080 |
|
|
47,335 |
|
| Headline earnings per share: |
|
|
|
|
|
|
| Basic, in USD |
|
0.49 |
|
|
0.51 |
|
| Diluted, in USD |
|
0.49 |
|
|
0.51 |
|
Calculation of the denominator for headline diluted earnings
per share
| |
|
2015 |
|
|
2014 |
|
| |
|
|
|
|
|
|
Basic weighted-average common shares
outstanding and unvested
restricted shares expected to vest under GAAP |
|
46,620 |
|
|
47,226 |
|
| Effect of dilutive securities under
GAAP |
|
460
|
|
|
109
|
|
|
Denominator for headline diluted earnings per share |
|
47,080 |
|
|
47,335 |
|
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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