Net 1 UEPS Technologies, Inc. (Nasdaq: UEPS; JSE: NT1) today
released results for the second fiscal quarter ended December 31,
2020.
Q2 2021 Highlights and Recent Developments:
- Net increase of 44,000 EasyPay
Everywhere (EPE) account holders, the first quarterly increase in
eight quarters;
- IPG exit process at an advanced
stage, which should result in reduced operating losses and cash
burn going forward;
- Non-cash increase of $15.1 million,
before tax effect, in the fair value of investment in
MobiKwik;
- Sale of entire interest in Bank
Frick after quarter-end;
- At December 31, 2020, unrestricted
cash of $206 million and no debt;
- Revenue of $32.3 million, a
constant currency decrease of 12% from Q2 2020, and a decrease of
15% from Q1 2021;
- Operating loss of $(15.2)
million;
- GAAP EPS of $(0.08) and Fundamental
EPS of $(0.24); and
- Adjusted EBITDA loss of $(12.8)
million, a sequential increase from a loss of $(10.8) million in Q1
2021.
“We have made strong operational progress this
quarter, which should result in improved financial performance
going forward. In South Africa, our consumer bank account offering,
EasyPay Everywhere, added approximately 44,000 net accounts during
the quarter - the first quarterly increase in eight quarters,” said
Alex Smith, Net1’s interim CEO and CFO. “In addition, we saw
another sequential increase in the utilization of our ATM
infrastructure. Internationally, we made significant progress on
the exit from IPG. While once-off closure costs from IPG have
impacted this quarter’s results, the operational losses and cash
burn should reduce materially going forward due to the decisive
actions taken this quarter. We are actively working to resolve our
Investment Company Act status in order for us to effect a partial
return of capital as soon as we are able to do so. We are fully
focused on executing our strategy to grow Net1 into the leading
fintech business in South Africa.”
Summary Financial Metrics
|
|
Q2
2021 |
|
Q2
2020 |
|
Q1
2021 |
|
Q2 ’21
vs |
|
Q2 ’21
vs |
|
Q2 ’21
vs |
|
Q2 ’21
vs |
|
|
|
|
(as restated)(1) |
|
(as restated)(1) |
|
Q2 ’20 |
|
Q1 ’21 |
|
Q2 ’20 |
|
Q1 ’21 |
|
|
|
|
|
|
|
|
|
|
|
(All figures
in USD ‘000s except per share data) |
|
USD
‘000’s |
|
|
|
|
|
|
|
|
|
|
(except per share data) |
|
% change in USD |
|
% change in ZAR |
Revenue |
32,305 |
|
|
38,918 |
|
|
35,136 |
|
|
(17 |
%) |
|
(8 |
%) |
|
(12 |
%) |
|
(15 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating loss |
(15,205 |
) |
|
(10,420 |
) |
|
(10,775 |
) |
|
46 |
% |
|
41 |
% |
|
55 |
% |
|
30 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (loss)(2) |
(12,792 |
) |
|
(7,476 |
) |
|
(9,822 |
) |
|
71 |
% |
|
30 |
% |
|
81 |
% |
|
20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP (loss) earnings per share ($) |
(0.08 |
) |
|
- |
|
|
(0.51 |
) |
|
nm |
|
|
(84 |
%) |
|
nm |
|
|
(86 |
%) |
Continuing |
(0.08 |
) |
|
(0.05 |
) |
|
(0.51 |
) |
|
60 |
% |
|
(84 |
%) |
|
69 |
% |
|
(86 |
%) |
Discontinued |
- |
|
|
0.05 |
|
|
- |
|
|
nm |
|
|
nm |
|
|
nm |
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fundamental loss per share ($)(2) |
(0.24 |
) |
|
(0.10 |
) |
|
(0.23 |
) |
|
140 |
% |
|
4 |
% |
|
154 |
% |
|
(4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully-diluted shares outstanding (‘000’s) |
56,641 |
|
|
56,568 |
|
|
57,119 |
|
|
0 |
% |
|
(1 |
%) |
|
nm |
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average period USD/ ZAR exchange rate |
15.47 |
|
|
14.60 |
|
|
16.77 |
|
|
6 |
% |
|
-8 |
% |
|
nm |
|
|
nm |
|
|
|
F2021 |
|
F2020 |
|
F2021 vs |
|
F2021 vs |
|
|
|
|
(as restated)(1) |
|
F2020 |
|
F2020 |
|
|
|
|
|
|
(All figures in
USD ‘000s except per share data) |
USD ‘000’s (except per share
data) |
|
% change in USD |
|
% change in ZAR |
Revenue |
67,441 |
|
|
85,134 |
|
|
(21 |
%) |
|
(9 |
%) |
|
|
|
|
|
|
|
|
|
GAAP operating
loss |
(25,980 |
) |
|
(16,856 |
) |
|
54 |
% |
|
76 |
% |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(loss)(2) |
(22,614 |
) |
|
(11,782 |
) |
|
92 |
% |
|
119 |
% |
|
|
|
|
|
|
|
|
|
GAAP (loss)
earnings per share ($) |
(0.59 |
) |
|
(0.08 |
) |
|
638 |
% |
|
743 |
% |
|
Continuing |
(0.59 |
) |
|
(0.18 |
) |
|
228 |
% |
|
275 |
% |
|
Discontinued |
- |
|
|
0.10 |
|
|
nm |
|
|
nm |
|
|
|
|
|
|
|
|
|
|
Fundamental loss
per share ($)(2) |
(0.47 |
) |
|
(0.12 |
) |
|
292 |
% |
|
348 |
% |
|
|
|
|
|
|
|
|
|
Fully-diluted
shares outstanding (‘000’s) |
56,880 |
|
|
56,568 |
|
|
1 |
% |
|
nm |
|
|
|
|
|
|
|
|
|
|
|
Average period
USD/ ZAR exchange rate |
16.47 |
|
|
14.40 |
|
|
14 |
% |
|
nm |
|
(1) 2019 has been restated to correct an error
with respect to the recognition of certain revenue and related cost
of goods sold, IT processing, servicing and support. The financial
information for the three and six months ended December 31, 2019,
has been restated with the effect of decreasing revenue by $1.6
million and $3.4 million, respectively. Refer to Note 1 to our
unaudited condensed consolidated financial statements.
(2) Adjusted EBITDA (loss), fundamental loss and
fundamental loss per share are non-GAAP measures and are described
below under “Use of Non-GAAP Measures—EBITDA and Adjusted EBITDA,
and —Fundamental net (loss) income and fundamental (loss) earnings
per share.” See Attachment B for a reconciliation of GAAP operating
loss to EBITDA (loss) and Adjusted EBITDA (loss), and GAAP net loss
to fundamental net (loss) income and (loss) earnings per share.
Business update related to COVID-19 pandemic
The COVID-19 pandemic did not impact our South
African operations as severely during the three and six months
ended December 31, 2020, compared to the last four months of the
year ended June 30, 2020. However, on December 28, 2020, the
country moved back to Level 3 restrictions which remain in place at
the date of this report. South Africa operates with a five-level
COVID-19 alert system, with Level 1 being the least restrictive and
Level 5 being the most restrictive. The country went into lockdown
(Level 5) towards the end of March 2020 and gradually eased
restrictions for the remainder of the 2020 calendar year (to Level
4 from May 1, to Level 3 from June 1, to Level 2 from August 18 and
to Level 1 from September 21). The increase at the end of December
2020 back to Level 3 was in response to a second wave of
infections, which has been more severe than the first wave. While
all our businesses continue to operate, we have increased
preventive measures and it is unclear to what extent business
activity levels will be affected. We have already seen an increase
in claims in our life insurance business, which we believe is
linked to the second wave and there is a risk of increased credit
losses in our micro lending business as a result of increased
mortality rates. Over the course of the pandemic to date, it is
estimated that 2.2 million jobs have been lost in South Africa.
Factors impacting comparability of our
Q2 2021 and Q2 2020 results
- Lower revenue: Our
revenues decreased 12% in ZAR primarily due to fewer prepaid
airtime sales and lower account fee revenue;
- Ongoing operating
losses: Operating costs are largely in line with the prior
period in ZAR due to the largely fixed cost nature of the costs
base. As a result, we continue to experience operating losses as a
result of depressed revenues; and
- Adverse foreign exchange
movements: The U.S. dollar was 6% stronger against the ZAR
during the second quarter of fiscal 2021, which adversely impacted
our reported results.
Results of Operations by Segment and
Liquidity
Processing
Segment revenue, excluding IPG, was $19.5
million in Q2 2021, down 16%, compared with Q2 2020 and Q1 2021 on
a constant currency basis. Excluding IPG, segment revenue decreased
primarily due to fewer prepaid airtime sales and a modest reduction
in volume-driven transaction fees. Excluding IPG, Processing
operating loss has been impacted by lower revenue and by an
increase in transaction-based costs. IPG incurred an operating loss
but is in the process of being closed down. Our operating loss
margin for Q2 2021 and 2020 was (51.9%) and (23.4%), respectively.
Excluding IPG, our operating loss margin for the Processing segment
was (29.4%) and (11.9%) during Q2 2021 and 2020, respectively.
Financial services
Segment revenue was $9.7 million in Q2 2021,
down 16% on a constant currency basis compared with Q2 2020 and up
from $8.3 million compared to Q1 2020. Segment revenue decreased
due to lower account fee revenue whilst lending and insurance
revenues increased modestly, in ZAR, compared to the prior period.
The reduction in operating loss is primarily due to an improvement
of operating margin on certain products offered. Our operating loss
margin for Q2 fiscal 2021 and 2020 was (11.0%) and (10.2%),
respectively.
Technology
Segment revenue was $4.6 million in Q2 2021,
flat on a constant currency basis compared with Q2 2020 but lower
than the $6.2 million in Q1 2021 due to lower hardware sales.
Operating income for Q2 2021 improved compared with fiscal 2020 due
to improved margins on various product lines within the segment.
Our operating income margin for the Technology segment was 23.4%
and 12.0% during the second quarter of fiscal 2021 and 2020,
respectively.
Corporate/eliminations
Our corporate expenses increased primarily due
to an allowance on doubtful loans receivable from equity-accounted
investments created during the second quarter of fiscal 2021, and
higher legal and consulting fees, which were partially offset by
lower audit fees.
Cash flow and liquidity
At December 31, 2020, our cash and cash
equivalents were $206.3 million and comprised U.S.
dollar-denominated balances of $156.8 million, ZAR-denominated
balances of ZAR 0.7 billion ($45.5 million), and other currency
deposits, primarily Botswana pula, of $3.9 million, all amounts
translated at exchange rates applicable as of December 31, 2020.
The decrease in our unrestricted cash balances from June 30, 2020,
was primarily due to the payment of Federal income taxes, weak
trading activities and an increase in our lending book, which was
partially offset by the receipt of the outstanding proceeds related
to the sale of our Korean business and the receipt of the
outstanding loan related to the disposal of our remaining interest
in DNI.
Excluding the impact of income taxes, cash used
in operating activities during the second quarter of fiscal 2021
was impacted by the cash losses incurred by the majority of our
continuing operations and an unwind in our lending book. Net cash
used in operating activities during the second quarter of fiscal
2020 includes the contribution from our Korean operations. Capital
expenditures for Q2 2021 and 2020 were $3.0 million and $0.8
million, respectively.
Conference Call
We will host a conference call to review these
results on February 5, 2021, at 8:00 a.m. Eastern Time. To
participate in the call, dial 1-508-924-4326 (US and Canada),
0333-300-1418 (U.K. only) or 010-201-6800 (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.
Participants are now able to
pre-register for the February 5, 2021, conference call by
navigating to
https://www.diamondpass.net/5478772.
Participants utilizing this pre-registration service will receive
their dial-in number upon registration.
Use of Non-GAAP Measures
U.S. securities laws require that when we
publish any non-GAAP measures, we disclose the reason for using
these non-GAAP measures and provide reconciliations to the most
directly comparable GAAP measures. The presentation of EBITDA,
adjusted EBITDA, fundamental net (loss) income and fundamental
(loss) earnings per share and headline (loss) earnings per share
are non-GAAP measures.
EBITDA and adjusted EBITDA
Earnings before interest, tax, depreciation and
amortization (“EBITDA”) is GAAP operating (loss) income adjusted
for depreciation and amortization. Adjusted EBITDA is EBITDA
adjusted for costs related to acquisitions and transactions
consummated or ultimately not pursued.
Fundamental net (loss) income and fundamental (loss)
earnings per share
Fundamental net (loss) income and (loss)
earnings per share is GAAP net (loss) income and (loss) earnings
per share adjusted for the amortization of acquisition-related
intangible assets (net of deferred taxes), stock-based compensation
charges, and unusual non-recurring items, including costs related
to acquisitions and transactions consummated or ultimately not
pursued.
Fundamental net (loss) income and (loss)
earnings per share for fiscal 2021 also includes adjustments
related to changes in the fair value of equity securities,
impairment losses related to our equity-accounted investment and
the deferred tax liability reversal related to the impairment of
the equity-accounted investment, and fiscal 2020 also includes the
gain on disposal of FIHRST, amortization of intangible assets (net
of deferred taxes) related to equity-accounted investments.
Management believes that the EBITDA, adjusted
EBITDA, fundamental net (loss) income and (loss) earnings per share
metrics enhance its own evaluation, as well as an investor’s
understanding, of our financial performance. Attachment B presents
the reconciliation between GAAP operating income and EBITDA and
adjusted EBITDA; and GAAP net (loss) income and (loss) earnings per
share and fundamental net (loss) income and (loss) earnings per
share.
Headline (loss) earnings per share
(“H(L)EPS”)
The inclusion of H(L)EPS in this press release
is a requirement of our listing on the JSE. H(L)EPS basic and
diluted is calculated using net (loss) income which has been
determined based on GAAP. Accordingly, this may differ to the
headline (loss) 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.
H(L)EPS basic and diluted is calculated as GAAP
net (loss) income adjusted for the impairment losses related to our
equity-accounted investments, gain on disposal of FIHRST, and
(profit) loss on sale of property, plant and equipment. Attachment
C presents the reconciliation between our net (loss) income used to
calculate (loss) earnings per share basic and diluted and HE(L)PS
basic and diluted and the calculation of the denominator for
headline diluted (loss) earnings per share.
About Net1
Net1 is a South African-focused financial
technology company with a presence in Africa, Asia and Europe. Net1
utilizes its proprietary banking and payment technology to
distribute low-cost financial and value-added services to
underserved consumers and small businesses. The Company also
provides transaction processing services, including being a payment
processor and bill payment platform in South Africa. Net1 leverages
its strategic investments in banks, telecom and mobile payment
technology companies to further expand its product offerings or to
enter new markets.
Net1 has a primary listing on NASDAQ (NasdaqGS:
UEPS) and a secondary listing on the Johannesburg Stock Exchange
(JSE: NT1). Visit www.net1.com for additional information about
Net1.
Forward-Looking Statements
This announcement contains forward-looking
statements that involve known and unknown risks and uncertainties.
A discussion of various factors that may 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:Dara Dierks Managing
Director – ICR Email: net1IR@icrinc.com
Media Relations Contact:Bridget
von HoldtBusiness Director – BCWPhone: +27-82-610-0650Email:
Bridget.vonholdt@bcw-global.com
NET 1 UEPS TECHNOLOGIES, INC. |
Unaudited Condensed Consolidated Statements of
Operations |
|
|
|
|
|
|
|
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
(as restated)(A) |
|
|
|
(as restated)(A) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE |
|
$ |
32,305 |
|
|
$ |
38,918 |
|
|
$ |
67,441 |
|
|
$ |
85,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold, IT processing, servicing and support |
|
|
24,339 |
|
|
|
26,746 |
|
|
|
50,799 |
|
|
|
57,452 |
|
|
Selling, general
and administration |
|
|
22,097 |
|
|
|
21,418 |
|
|
|
40,625 |
|
|
|
42,040 |
|
|
Depreciation and
amortization |
|
|
1,074 |
|
|
|
1,174 |
|
|
|
1,997 |
|
|
|
2,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
LOSS |
|
|
(15,205 |
) |
|
|
(10,420 |
) |
|
|
(25,980 |
) |
|
|
(16,856 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHANGE IN FAIR
VALUE OF EQUITY SECURITIES |
|
|
15,128 |
|
|
|
- |
|
|
|
15,128 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAIN ON DISPOSAL
OF FIHRST |
|
|
- |
|
|
|
9,743 |
|
|
|
- |
|
|
|
9,743 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS ON DISPOSAL
OF EQUITY-ACCOUNTED INVESTMENT |
|
|
13 |
|
|
|
- |
|
|
|
13 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
INCOME |
|
|
717 |
|
|
|
1,082 |
|
|
|
1,328 |
|
|
|
1,445 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE |
|
|
677 |
|
|
|
3,129 |
|
|
|
1,424 |
|
|
|
4,476 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS)
BEFORE INCOME TAX EXPENSE |
|
|
(50 |
) |
|
|
(2,724 |
) |
|
|
(10,961 |
) |
|
|
(10,144 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX
EXPENSE |
|
|
3,468 |
|
|
|
707 |
|
|
|
2,378 |
|
|
|
1,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS BEFORE
(LOSS) EARNINGS FROM EQUITY-ACCOUNTED INVESTMENTS |
|
|
(3,518 |
) |
|
|
(3,431 |
) |
|
|
(13,339 |
) |
|
|
(11,821 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) EARNINGS
FROM EQUITY-ACCOUNTED INVESTMENTS |
|
|
(1,016 |
) |
|
|
506 |
|
|
|
(20,153 |
) |
|
|
1,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS FROM
CONTINUING OPERATIONS |
|
|
(4,534 |
) |
|
|
(2,925 |
) |
|
|
(33,492 |
) |
|
|
(10,252 |
) |
NET INCOME FROM
DISCONTINUED OPERATIONS |
|
|
- |
|
|
|
2,720 |
|
|
|
- |
|
|
|
5,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
|
(4,534 |
) |
|
|
(205 |
) |
|
|
(33,492 |
) |
|
|
(4,597 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO NET1 |
|
|
(4,534 |
) |
|
|
(205 |
) |
|
|
(33,492 |
) |
|
|
(4,597 |
) |
|
Continuing |
|
|
(4,534 |
) |
|
|
(2,925 |
) |
|
|
(33,492 |
) |
|
|
(10,252 |
) |
|
Discontinued |
|
$ |
- |
|
|
$ |
2,720 |
|
|
$ |
- |
|
|
$ |
5,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
earnings per share, in United States dollars: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss)
earnings attributable to Net1 shareholders |
|
$ |
(0.08 |
) |
|
$ |
- |
|
|
$ |
(0.59 |
) |
|
$ |
(0.08 |
) |
|
Continuing |
|
$ |
(0.08 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.59 |
) |
|
$ |
(0.18 |
) |
|
Discontinued |
|
$ |
- |
|
|
$ |
0.05 |
|
|
$ |
- |
|
|
$ |
0.10 |
|
Diluted (loss)
earnings attributable to Net1 shareholders |
|
$ |
(0.08 |
) |
|
$ |
- |
|
|
$ |
(0.59 |
) |
|
$ |
(0.08 |
) |
|
Continuing |
|
$ |
(0.08 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.59 |
) |
|
$ |
(0.18 |
) |
|
Discontinued |
|
$ |
- |
|
|
$ |
0.05 |
|
|
$ |
- |
|
|
$ |
0.10 |
|
(A) 2019 has been restated to correct an error with respect to
the recognition of certain revenue and related cost of goods sold,
IT processing, servicing and support. The financial information for
the three and six months ended December 31, 2019, has been restated
with the effect of decreasing revenue by $1.6 million and $3.4
million, respectively.
NET 1 UEPS TECHNOLOGIES, INC. |
Unaudited Consolidated Balance Sheets |
|
|
|
|
|
|
Unaudited |
|
(A) |
|
|
|
|
|
|
December 31, |
|
June 30, |
|
|
|
|
|
|
2020 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except share data) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
CURRENT
ASSETS |
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
206,251 |
|
|
$ |
217,671 |
|
|
Restricted
cash |
|
60,803 |
|
|
|
14,814 |
|
|
Accounts
receivable, net of allowance of - December: $359; June: $253 and
other receivables |
|
24,447 |
|
|
|
43,068 |
|
|
Finance loans
receivable, net of allowance of - December: $2,397; June:
$7,658 |
|
21,620 |
|
|
|
15,879 |
|
|
Inventory |
|
20,939 |
|
|
|
19,860 |
|
|
|
Total current
assets before settlement assets |
|
334,060 |
|
|
|
311,292 |
|
|
|
|
Settlement
assets |
|
2,814 |
|
|
|
8,014 |
|
|
|
|
|
Total current assets |
|
336,874 |
|
|
|
319,306 |
|
PROPERTY, PLANT
AND EQUIPMENT, net of accumulated depreciation of - December:
$35,954; June: $29,524 |
|
8,687 |
|
|
|
6,656 |
|
OPERATING LEASE
RIGHT-OF-USE |
|
5,112 |
|
|
|
5,395 |
|
EQUITY-ACCOUNTED
INVESTMENTS |
|
53,126 |
|
|
|
65,836 |
|
GOODWILL |
|
28,455 |
|
|
|
24,169 |
|
INTANGIBLE ASSETS,
net of accumulated amortization of - December: $29,922; June:
$27,325 |
|
536 |
|
|
|
612 |
|
DEFERRED INCOME
TAXES |
|
281 |
|
|
|
358 |
|
OTHER LONG-TERM
ASSETS, including reinsurance assets |
|
43,907 |
|
|
|
31,346 |
|
TOTAL
ASSETS |
|
476,978 |
|
|
|
453,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
|
|
Short-term credit
facilities for ATM funding |
|
60,803 |
|
|
|
14,814 |
|
|
Accounts
payable |
|
6,109 |
|
|
|
6,287 |
|
|
Other
payables |
|
25,066 |
|
|
|
23,779 |
|
|
Operating lease
liability - current |
|
2,585 |
|
|
|
2,251 |
|
|
Income taxes
payable |
|
984 |
|
|
|
16,157 |
|
|
|
Total current
liabilities before settlement obligations |
|
95,547 |
|
|
|
63,288 |
|
|
|
|
Settlement
obligations |
|
2,814 |
|
|
|
8,015 |
|
|
|
|
|
Total current
liabilities |
|
98,361 |
|
|
|
71,303 |
|
DEFERRED INCOME
TAXES |
|
3,262 |
|
|
|
1,859 |
|
OPERATING LEASE
LIABILITY - LONG TERM |
|
2,715 |
|
|
|
3,312 |
|
OTHER LONG-TERM
LIABILITIES, including insurance policy liabilities |
|
2,400 |
|
|
|
2,012 |
|
TOTAL
LIABILITIES |
|
106,738 |
|
|
|
78,486 |
|
COMMITMENTS AND
CONTINGENCIES |
|
- |
|
|
|
- |
|
REDEEMABLE COMMON
STOCK |
|
84,979 |
|
|
|
84,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
NET1 EQUITY: |
|
|
|
|
|
COMMON STOCK |
|
|
|
|
|
|
Authorized:
200,000,000 with $0.001 par value; |
|
|
|
|
|
|
Issued and
outstanding shares, net of treasury: December: $56,614,559; June:
$57,118,925 |
|
80 |
|
|
|
80 |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
302,196 |
|
|
|
301,489 |
|
TREASURY SHARES,
AT COST: December: $24,891,292; June: $24,891,292 |
|
(286,951 |
) |
|
|
(286,951 |
) |
ACCUMULATED OTHER
COMPREHENSIVE LOSS |
|
(141,242 |
) |
|
|
(169,075 |
) |
RETAINED
EARNINGS |
|
411,178 |
|
|
|
444,670 |
|
TOTAL NET1
EQUITY |
|
285,261 |
|
|
|
290,213 |
|
NON-CONTROLLING
INTEREST |
|
- |
|
|
|
- |
|
TOTAL
EQUITY |
|
285,261 |
|
|
|
290,213 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES, REDEEMABLE COMMON STOCK AND SHAREHOLDERS’
EQUITY |
$ |
476,978 |
|
|
$ |
453,678 |
|
(A) Derived from audited consolidated financial statements.
NET 1 UEPS TECHNOLOGIES, INC. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
|
|
|
Unaudited |
|
Unaudited |
|
|
|
Three months ended |
|
Six months ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(4,534 |
) |
|
$ |
(205 |
) |
|
$ |
(33,492 |
) |
|
$ |
(4,597 |
) |
|
Depreciation and
amortization |
|
1,074 |
|
|
|
4,381 |
|
|
|
1,997 |
|
|
|
9,146 |
|
|
Movement in
allowance for doubtful accounts receivable |
|
100 |
|
|
|
(429 |
) |
|
|
614 |
|
|
|
83 |
|
|
Loss (Earnings)
from equity-accounted investments |
|
1,016 |
|
|
|
(506 |
) |
|
|
20,153 |
|
|
|
(1,569 |
) |
|
Movement in
allowance for doubtful loans |
|
661 |
|
|
|
620 |
|
|
|
739 |
|
|
|
620 |
|
|
Change in fair
value of equity securities |
|
(15,128 |
) |
|
|
- |
|
|
|
(15,128 |
) |
|
|
- |
|
|
Fair value
adjustment related to financial liabilities |
|
790 |
|
|
|
147 |
|
|
|
1,676 |
|
|
|
234 |
|
|
Interest
payable |
|
42 |
|
|
|
526 |
|
|
|
(21 |
) |
|
|
1,158 |
|
|
Gain on disposal
of FIHRST |
|
- |
|
|
|
(9,743 |
) |
|
|
- |
|
|
|
(9,743 |
) |
|
Loss on disposal
of equity-accounted investment |
|
13 |
|
|
|
- |
|
|
|
13 |
|
|
|
- |
|
|
Loss (Profit) on
disposal of property, plant and equipment |
|
752 |
|
|
|
(49 |
) |
|
|
742 |
|
|
|
(203 |
) |
|
Stock-based
compensation charge |
|
232 |
|
|
|
436 |
|
|
|
631 |
|
|
|
823 |
|
|
Dividends received
from equity accounted investments |
|
68 |
|
|
|
380 |
|
|
|
125 |
|
|
|
1,448 |
|
|
Decrease in
accounts receivable and finance loans receivable |
|
6,559 |
|
|
|
8,767 |
|
|
|
(1,556 |
) |
|
|
3,101 |
|
|
Increase in
inventory |
|
(145 |
) |
|
|
(682 |
) |
|
|
2,214 |
|
|
|
(12,995 |
) |
|
(Decrease)
Increase in accounts payable and other payables |
|
(3,084 |
) |
|
|
3,132 |
|
|
|
(3,499 |
) |
|
|
(264 |
) |
|
(Decrease)
Increase in taxes payable |
|
(421 |
) |
|
|
(2,244 |
) |
|
|
(15,338 |
) |
|
|
(956 |
) |
|
Increase
(Decrease) in deferred taxes |
|
26 |
|
|
|
(117 |
) |
|
|
(1,729 |
) |
|
|
(205 |
) |
|
|
Net cash (used in) provided by operating
activities |
|
(11,979 |
) |
|
|
4,414 |
|
|
|
(41,859 |
) |
|
|
(13,919 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from investing activities |
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures |
|
(3,023 |
) |
|
|
(827 |
) |
|
|
(3,298 |
) |
|
|
(3,451 |
) |
Proceeds from
disposal of property, plant and equipment |
|
75 |
|
|
|
90 |
|
|
|
91 |
|
|
|
303 |
|
Proceeds from
disposal of Net1 Korea, net of cash disposed |
|
- |
|
|
|
- |
|
|
|
20,114 |
|
|
|
- |
|
Proceeds from
disposal of DNI as equity-accounted investment |
|
5,815 |
|
|
|
- |
|
|
|
6,144 |
|
|
|
- |
|
Proceeds from
disposal of subsidiaries, net of cash disposed |
|
- |
|
|
|
10,895 |
|
|
|
- |
|
|
|
10,895 |
|
Investment in
equity-accounted investments |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,250 |
) |
Loan to
equity-accounted investment |
|
(1,160 |
) |
|
|
(612 |
) |
|
|
(1,238 |
) |
|
|
(612 |
) |
Repayment of loans
by equity-accounted investments |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,268 |
|
Net change in
settlement assets |
|
1,377 |
|
|
|
3,371 |
|
|
|
5,445 |
|
|
|
(10,138 |
) |
|
Net cash
provided by investing activities |
|
3,084 |
|
|
|
12,917 |
|
|
|
27,258 |
|
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities |
|
|
|
|
|
|
|
|
|
|
|
Proceeds from bank
overdraft |
|
137,333 |
|
|
|
207,876 |
|
|
|
206,479 |
|
|
|
391,550 |
|
Repayment of bank
overdraft |
|
(88,258 |
) |
|
|
(193,725 |
) |
|
|
(165,108 |
) |
|
|
(378,554 |
) |
Proceeds from
issue of shares |
|
18 |
|
|
|
- |
|
|
|
18 |
|
|
|
- |
|
Proceeds from
disgorgement of shareholders' short-swing profits |
|
26 |
|
|
|
- |
|
|
|
124 |
|
|
|
- |
|
Long-term
borrowings utilized |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
14,798 |
|
Repayment of
long-term borrowings |
|
- |
|
|
|
(11,313 |
) |
|
|
- |
|
|
|
(11,313 |
) |
Guarantee fee |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(148 |
) |
Finance lease
capital repayments |
|
- |
|
|
|
(26 |
) |
|
|
- |
|
|
|
(52 |
) |
Net change in
settlement obligations |
|
(1,377 |
) |
|
|
(3,371 |
) |
|
|
(5,445 |
) |
|
|
10,138 |
|
|
Net cash
provided by (used in) financing activities |
|
47,742 |
|
|
|
(559 |
) |
|
|
36,068 |
|
|
|
26,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash |
|
12,296 |
|
|
|
7,508 |
|
|
|
13,102 |
|
|
|
1,053 |
|
Net
increase in cash, cash equivalents and restricted
cash |
|
51,143 |
|
|
|
24,280 |
|
|
|
34,569 |
|
|
|
13,568 |
|
Cash, cash
equivalents and restricted cash – beginning of period |
|
215,911 |
|
|
|
110,799 |
|
|
|
232,485 |
|
|
|
121,511 |
|
Cash, cash
equivalents and restricted cash – end of period |
$ |
267,054 |
|
|
$ |
135,079 |
|
|
$ |
267,054 |
|
|
$ |
135,079 |
|
Net 1 UEPS Technologies, Inc.
Attachment A
Operating segment revenue, operating
(loss) income and operating (loss) margin:
Three months ended December 31, 2020 and
2019 and September 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change - actual |
Change – constant exchange
rate(1) |
|
|
|
|
|
|
|
|
Q2 '21 |
|
Q2 '20 |
|
Q1 '21 |
Q2 '21 vs |
Q2 '21 vs |
Q2 '21 vs |
Q2 '21 vs |
Key segmental data, in ’000, except margins |
|
|
|
(as restated)(A) |
|
(as restated)(A) |
Q2 '20 |
Q1 '21 |
Q2 '20 |
Q1 '21 |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing |
|
$ |
19,990 |
|
|
$ |
25,022 |
|
|
$ |
22,506 |
|
(20 |
%) |
(11 |
%) |
(15 |
%) |
(18 |
%) |
|
|
IPG |
|
|
478 |
|
|
|
432 |
|
|
|
1,209 |
|
11 |
% |
(60 |
%) |
17 |
% |
(64 |
%) |
|
|
All Other |
|
|
19,512 |
|
|
|
24,590 |
|
|
|
21,297 |
|
(21 |
%) |
(8 |
%) |
(16 |
%) |
(16 |
%) |
|
Financial
services |
|
|
9,709 |
|
|
|
12,268 |
|
|
|
8,265 |
|
(21 |
%) |
17 |
% |
(16 |
%) |
8 |
% |
|
Technology |
|
|
4,609 |
|
|
|
4,890 |
|
|
|
6,211 |
|
(6 |
%) |
(26 |
%) |
(0 |
%) |
(32 |
%) |
|
|
|
Subtotal:
Operating segments |
|
|
34,308 |
|
|
|
42,180 |
|
|
|
36,982 |
|
(19 |
%) |
(7 |
%) |
(14 |
%) |
(14 |
%) |
|
|
|
Intersegment
eliminations |
|
|
(2,003 |
) |
|
|
(3,262 |
) |
|
|
(1,846 |
) |
(39 |
%) |
9 |
% |
(35 |
%) |
0 |
% |
|
|
|
|
Consolidated revenue |
|
$ |
32,305 |
|
|
$ |
38,918 |
|
|
$ |
35,136 |
|
(17 |
%) |
(8 |
%) |
(12 |
%) |
(15 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing |
|
$ |
(10,381 |
) |
|
$ |
(5,848 |
) |
|
$ |
(7,301 |
) |
78 |
% |
42 |
% |
88 |
% |
31 |
% |
|
|
IPG |
|
|
(4,647 |
) |
|
|
(2,920 |
) |
|
|
(2,772 |
) |
59 |
% |
68 |
% |
69 |
% |
55 |
% |
|
|
All Other |
|
|
(5,734 |
) |
|
|
(2,928 |
) |
|
|
(4,529 |
) |
96 |
% |
27 |
% |
107 |
% |
17 |
% |
|
Financial
services |
|
|
(1,071 |
) |
|
|
(1,249 |
) |
|
|
(2,372 |
) |
(14 |
%) |
(55 |
%) |
(9 |
%) |
(58 |
%) |
|
Technology |
|
|
1,078 |
|
|
|
589 |
|
|
|
1,775 |
|
83 |
% |
(39 |
%) |
94 |
% |
(44 |
%) |
|
|
|
Subtotal:
Operating segments |
|
|
(10,374 |
) |
|
|
(6,508 |
) |
|
|
(7,898 |
) |
59 |
% |
31 |
% |
69 |
% |
21 |
% |
|
|
|
Corporate/Eliminations |
|
|
(4,831 |
) |
|
|
(3,912 |
) |
|
|
(2,877 |
) |
23 |
% |
68 |
% |
31 |
% |
55 |
% |
|
|
|
|
|
Consolidated operating (loss) income |
|
$ |
(15,205 |
) |
|
$ |
(10,420 |
) |
|
$ |
(10,775 |
) |
46 |
% |
41 |
% |
55 |
% |
30 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) income margin (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing |
|
|
(51.9 |
%) |
|
|
(23.4 |
%) |
|
|
(32.4 |
%) |
|
|
|
|
|
|
IPG |
|
|
(972.2 |
%) |
|
|
(675.9 |
%) |
|
|
(229.3 |
%) |
|
|
|
|
|
|
All Other |
|
|
(29.4 |
%) |
|
|
(11.9 |
%) |
|
|
(21.3 |
%) |
|
|
|
|
|
Financial
services |
|
|
(11.0 |
%) |
|
|
(10.2 |
%) |
|
|
(28.7 |
%) |
|
|
|
|
|
Technology |
|
|
23.4 |
% |
|
|
12.0 |
% |
|
|
28.6 |
% |
|
|
|
|
|
|
|
Consolidated operating margin |
|
|
(47.1 |
%) |
|
|
(26.8 |
%) |
|
|
(30.7 |
%) |
|
|
|
|
(A) – 2019 has been restated to
correct an error with respect to the recognition of certain revenue
and related cost of goods sold, IT processing, servicing and
support.
(1) – This information shows
what the change in these items would have been if the USD/ ZAR
exchange rate that prevailed during Q2 2021 also prevailed during
Q2 2020 and Q1 2021.
Six months ended December 31, 2020 and
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change - actual |
Change – constant exchange
rate(1) |
|
|
|
|
|
|
|
|
F2021 |
|
F2020 |
|
F2021 vs |
F2021 vs |
Key segmental data, in ’000, except margins |
|
|
|
(as restated)(A) |
|
F2020 |
F2020 |
Revenue: |
|
|
|
|
|
|
|
|
|
|
Processing |
|
$ |
42,496 |
|
|
$ |
53,317 |
|
|
(20 |
%) |
(9 |
%) |
|
|
IPG |
|
|
1,687 |
|
|
|
1,225 |
|
|
38 |
% |
57 |
% |
|
|
All other |
|
|
40,809 |
|
|
|
52,092 |
|
|
(22 |
%) |
(10 |
%) |
|
Financial
services |
|
|
17,974 |
|
|
|
26,436 |
|
|
(32 |
%) |
(22 |
%) |
|
Technology |
|
|
10,820 |
|
|
|
12,099 |
|
|
(11 |
%) |
2 |
% |
|
|
|
Subtotal:
Operating segments |
|
|
71,290 |
|
|
|
91,852 |
|
|
(22 |
%) |
(11 |
%) |
|
|
|
Intersegment
eliminations |
|
|
(3,849 |
) |
|
|
(6,718 |
) |
|
(43 |
%) |
(34 |
%) |
|
|
|
|
Consolidated revenue |
|
|
67,441 |
|
|
|
85,134 |
|
|
(21 |
%) |
(9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) income: |
|
|
|
|
|
|
|
|
|
|
Processing |
|
$ |
(17,682 |
) |
|
$ |
(11,353 |
) |
|
56 |
% |
78 |
% |
|
|
IPG |
|
|
(7,419 |
) |
|
|
(4,893 |
) |
|
52 |
% |
nm |
|
|
|
All other |
|
|
(10,263 |
) |
|
|
(6,460 |
) |
|
59 |
% |
nm |
|
|
Financial
services |
|
|
(3,443 |
) |
|
|
(904 |
) |
|
281 |
% |
335 |
% |
|
Technology |
|
|
2,853 |
|
|
|
1,734 |
|
|
65 |
% |
88 |
% |
|
|
|
Subtotal:
Operating segments |
|
|
(18,272 |
) |
|
|
(10,523 |
) |
|
74 |
% |
99 |
% |
|
|
|
Corporate/Eliminations |
|
|
(7,708 |
) |
|
|
(6,333 |
) |
|
22 |
% |
39 |
% |
|
|
|
|
|
Consolidated operating (loss) income |
|
|
(25,980 |
) |
|
|
(16,856 |
) |
|
54 |
% |
76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) income margin (%) |
|
|
|
|
|
|
|
|
|
|
Processing |
|
|
(41.6 |
%) |
|
|
(21.3 |
%) |
|
|
|
|
|
IPG |
|
|
(439.8 |
%) |
|
|
(399.4 |
%) |
|
|
|
|
|
All other |
|
|
(25.1 |
%) |
|
|
(12.4 |
%) |
|
|
|
|
Financial
services |
|
|
(19.2 |
%) |
|
|
(3.4 |
%) |
|
|
|
|
Technology |
|
|
26.4 |
% |
|
|
14.3 |
% |
|
|
|
|
|
|
Consolidated operating margin |
|
|
(38.5 |
%) |
|
|
(19.8 |
%) |
|
|
|
(A) – 2019 has been restated to
correct an error with respect to the recognition of certain revenue
and related cost of goods sold, IT processing, servicing and
support.
(1) – This information shows
what the change in these items would have been if the USD/ ZAR
exchange rate that prevailed during fiscal 2021 also prevailed
during fiscal 2020.
(Loss) Earnings from equity-accounted
investments:
The table below presents the relative (loss)
earnings from our equity-accounted investments:
|
|
|
Q2 2021 |
|
|
Q2 2020 |
|
% change |
|
|
F2021 |
|
|
F2020 |
|
% change |
Bank Frick |
|
498 |
|
|
|
494 |
|
|
1 |
% |
|
|
979 |
|
|
|
469 |
|
|
109 |
% |
|
Share of net income |
|
498 |
|
|
|
636 |
|
|
(22 |
%) |
|
|
979 |
|
|
|
755 |
|
|
30 |
% |
|
Amortization of intangible
assets, net of deferred tax |
|
- |
|
|
|
(142 |
) |
|
nm |
|
|
|
- |
|
|
|
(286 |
) |
|
nm |
|
DNI |
$ |
- |
|
|
$ |
380 |
|
|
nm |
|
|
$ |
- |
|
|
$ |
1,108 |
|
|
nm |
|
|
Share of net income |
|
- |
|
|
|
1,650 |
|
|
nm |
|
|
|
- |
|
|
|
3,113 |
|
|
nm |
|
|
Amortization of intangible
assets, net of deferred tax |
|
- |
|
|
|
(465 |
) |
|
nm |
|
|
|
- |
|
|
|
(931 |
) |
|
nm |
|
|
Impairment |
|
- |
|
|
|
(805 |
) |
|
nm |
|
|
|
- |
|
|
|
(1,074 |
) |
|
nm |
|
Finbond |
|
(806 |
) |
|
|
- |
|
|
nm |
|
|
|
(20,267 |
) |
|
|
491 |
|
|
nm |
|
|
Share of net (loss)
income |
|
- |
|
|
|
- |
|
|
nm |
|
|
|
(2,617 |
) |
|
|
491 |
|
|
nm |
|
|
Impairment |
|
(806 |
) |
|
|
- |
|
|
nm |
|
|
|
(17,650 |
) |
|
|
- |
|
|
nm |
|
Other |
|
(708 |
) |
|
|
(368 |
) |
|
92 |
% |
|
|
(865 |
) |
|
|
(499 |
) |
|
73 |
% |
|
Share of net loss |
|
(160 |
) |
|
|
(368 |
) |
|
(57 |
%) |
|
|
(317 |
) |
|
|
(499 |
) |
|
(36 |
%) |
|
Impairment |
|
(548 |
) |
|
|
- |
|
|
nm |
|
|
|
(548 |
) |
|
|
- |
|
|
nm |
|
|
(Loss) earnings from
equity-accounted investments |
$ |
(1,016 |
) |
|
$ |
506 |
|
|
nm |
|
|
$ |
(20,153 |
) |
|
$ |
1,569 |
|
|
nm |
|
Net 1 UEPS Technologies,
Inc.
Attachment B
Reconciliation of GAAP operating loss to
EBITDA loss and adjusted EBITDA loss:
Three and six months ended December 31,
2020 and 2019
|
|
|
|
|
Three months ended December 31, |
|
Six months ended December 31, |
|
|
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Operating
loss - GAAP |
(15,205 |
) |
|
(10,420 |
) |
|
(25,980 |
) |
|
(16,856 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
1,074 |
|
|
1,174 |
|
|
1,997 |
|
|
2,498 |
|
|
|
Negative
EBITDA |
(14,131 |
) |
|
(9,246 |
) |
|
(23,983 |
) |
|
(14,358 |
) |
|
|
|
Transaction
costs |
1,339 |
|
|
1,770 |
|
|
1,369 |
|
|
2,576 |
|
|
|
|
|
Adjusted EBITDA
(loss) |
(12,792 |
) |
|
(7,476 |
) |
|
(22,614 |
) |
|
(11,782 |
) |
Reconciliation of GAAP net loss and loss
per share, basic, to fundamental net loss and loss per share,
basic:
Three months ended December 31, 2020 and
2019
|
Net (loss) income(USD '000) |
|
(L)PS, basic (USD) |
|
Net (loss) income(ZAR '000) |
|
(L)PS, basic (ZAR) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
GAAP |
(4,534 |
) |
|
(205 |
) |
|
(0.08 |
) |
|
- |
|
|
(70,119 |
) |
|
(2,993 |
) |
|
(1.24 |
) |
|
(0.05 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of equity
securities, net |
(11,951 |
) |
|
- |
|
|
|
|
|
|
(184,828 |
) |
|
- |
|
|
|
|
|
Impairment of equity method
investment |
1,354 |
|
|
- |
|
|
|
|
|
|
19,850 |
|
|
- |
|
|
|
|
|
Stock-based compensation
charge |
232 |
|
|
436 |
|
|
|
|
|
|
3,588 |
|
|
6,367 |
|
|
|
|
|
Transaction costs |
1,339 |
|
|
1,770 |
|
|
|
|
|
|
20,708 |
|
|
25,846 |
|
|
|
|
|
Intangible asset amortization,
net |
64 |
|
|
1,437 |
|
|
|
|
|
|
990 |
|
|
20,972 |
|
|
|
|
|
Loss on disposal of DNI |
13 |
|
|
- |
|
|
|
|
|
|
201 |
|
|
- |
|
|
|
|
|
Gain on disposal of
FIHRST |
- |
|
|
(9,743 |
) |
|
|
|
|
|
- |
|
|
(142,269 |
) |
|
|
|
|
Intangible asset amortization,
net related to equity accounted investments |
- |
|
|
607 |
|
|
|
|
|
|
- |
|
|
8,864 |
|
|
|
|
|
Fundamental |
(13,483 |
) |
|
(5,698 |
) |
|
(0.24 |
) |
|
(0.10 |
) |
|
(209,610 |
) |
|
(83,213 |
) |
|
(3.70 |
) |
|
(1.47 |
) |
Six months ended December 31, 2020 and
2019
|
Net (Loss) Income (USD '000) |
|
(L) EPS, basic (USD) |
|
Net (Loss) Income (ZAR '000) |
|
(L)EPS, basic (ZAR) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
GAAP |
(33,492 |
) |
|
(4,597 |
) |
|
(0.59 |
) |
|
(0.08 |
) |
|
(551,530 |
) |
|
(66,206 |
) |
|
(9.70 |
) |
|
(1.17 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of equity method
investments |
18,198 |
|
|
- |
|
|
|
|
|
|
301,579 |
|
|
- |
|
|
|
|
|
Reversal of deferred taxes
related to impairment of equity method investment |
(1,353 |
) |
|
- |
|
|
|
|
|
|
(22,633 |
) |
|
- |
|
|
|
|
|
Change in fair value of equity
securities, net |
(11,951 |
) |
|
- |
|
|
|
|
|
|
(196,805 |
) |
|
- |
|
|
|
|
|
Stock-based compensation
charge |
631 |
|
|
823 |
|
|
|
|
|
|
10,391 |
|
|
11,853 |
|
|
|
|
|
Transaction costs |
1,369 |
|
|
2,576 |
|
|
|
|
|
|
22,544 |
|
|
37,100 |
|
|
|
|
|
Loss on disposal of DNI |
13 |
|
|
- |
|
|
|
|
|
|
214 |
|
|
- |
|
|
|
|
|
Intangible asset amortization,
net |
121 |
|
|
2,838 |
|
|
|
|
|
|
1,980 |
|
|
40,863 |
|
|
|
|
|
Gain on disposal of
FIHRST |
- |
|
|
(9,743 |
) |
|
|
|
|
|
- |
|
|
(140,322 |
) |
|
|
|
|
Intangible asset amortization,
net related to equity accounted investments |
- |
|
|
1,217 |
|
|
|
|
|
|
- |
|
|
17,528 |
|
|
|
|
|
Fundamental |
(26,464 |
) |
|
(6,886 |
) |
|
(0.47 |
) |
|
(0.12 |
) |
|
(434,260 |
) |
|
(99,184 |
) |
|
(7.63 |
) |
|
(1.75 |
) |
Net 1 UEPS Technologies, Inc.
Attachment C
Reconciliation of net loss used to
calculate loss per share basic and diluted and headline loss per
share basic and diluted:
Three months ended December 31, 2020 and
2019
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
Net loss
(USD’000) |
(4,534 |
) |
|
(205 |
) |
Adjustments: |
|
|
|
|
Impairment of equity method
investments |
1,354 |
|
|
- |
|
|
Loss on disposal of
equity-accounted investment |
13 |
|
|
- |
|
|
Gain on disposal of
FIHRST |
- |
|
|
(9,743 |
) |
|
Loss (Profit) on sale of
property, plant and equipment |
752 |
|
|
(49 |
) |
|
Tax effects on above |
(211 |
) |
|
14 |
|
|
|
|
|
|
Net loss used to
calculate headline loss (USD’000) |
(2,626 |
) |
|
(9,983 |
) |
|
|
|
|
|
Weighted average
number of shares used to calculate net loss per share basic loss
and headline loss per share basic loss (‘000) |
56,641 |
|
|
56,568 |
|
|
|
|
|
|
Weighted average
number of shares used to calculate net loss per share diluted loss
and headline loss per share diluted loss (‘000) |
56,641 |
|
|
56,568 |
|
|
|
|
|
|
Headline loss per
share: |
|
|
|
|
Basic, in USD |
(0.05 |
) |
|
(0.18 |
) |
|
Diluted, in USD |
(0.05 |
) |
|
(0.18 |
) |
Six months ended December 31, 2020 and
2019
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
Net loss
(USD’000) |
(33,492 |
) |
|
(4,597 |
) |
Adjustments: |
|
|
|
|
Impairment of equity method
investments |
18,198 |
|
|
- |
|
|
Gain on disposal of
FIHRST |
- |
|
|
(9,743 |
) |
|
Loss (Profit) on sale of
property, plant and equipment |
742 |
|
|
(203 |
) |
|
Tax effects on above |
(1,561 |
) |
|
57 |
|
|
|
|
|
|
Net loss used to
calculate headline loss (USD’000) |
(16,100 |
) |
|
(14,486 |
) |
|
|
|
|
|
Weighted average
number of shares used to calculate net loss per share basic loss
and headline loss per share basic loss (‘000) |
56,880 |
|
|
56,568 |
|
|
|
|
|
|
Weighted average
number of shares used to calculate net loss per share diluted loss
and headline loss per share diluted loss (‘000) |
56,880 |
|
|
56,568 |
|
|
|
|
|
|
Headline loss per
share: |
|
|
|
|
Basic, in USD |
(0.28 |
) |
|
(0.26 |
) |
|
Diluted, in USD |
(0.28 |
) |
|
(0.26 |
) |
Calculation of the denominator for headline diluted loss
per share
|
|
|
Q2 2021 |
|
Q2 2020 |
|
F2021 |
|
F2020 |
|
|
|
|
|
|
|
|
|
|
Basic
weighted-average common shares outstanding and unvested restricted
shares expected to vest under GAAP |
56,641 |
|
56,568 |
|
56,880 |
|
56,568 |
|
|
Denominator for headline
diluted loss per share |
56,641 |
|
56,568 |
|
56,880 |
|
56,568 |
Weighted average number of shares used to
calculate headline diluted loss per share represents 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 diluted loss per share
because we do not use the two-class method to calculate headline
diluted loss per share.
Net 1 Ueps Technologies (NASDAQ:UEPS)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Net 1 Ueps Technologies (NASDAQ:UEPS)
Historical Stock Chart
Von Jul 2023 bis Jul 2024