Net 1 UEPS Technologies, Inc. (Nasdaq: UEPS; JSE: NT1) today
released results for the third fiscal quarter ended March 31, 2022.
Highlights:
- Revenue increased to $35.2 million,
up 27% in rand terms and 22% in dollar terms, underpinned by
stronger merchant revenue;
- After normalizing for $5.9 million
of once off restructuring fees, Segment Adjusted EBITDA (before
corporate/eliminations) improved to $0.3 million income from a
$10.7 million loss in the comparable quarter, driven by increased
revenue in our merchant segment and continued execution on cost
saving initiatives;
- Over $19.2 million (ZAR 300
million) in annualized Project Spring savings targeted in 2023
financial year;
- GAAP EPS improved 48% to $(0.06)
and Fundamental EPS improved 79% to $(0.05);
- Connect Group acquisition closed
post quarter end on April 14, 2022; and
- Shareholders vote in favor of Net1
changing its name to Lesaka Technologies, Inc.
Lesaka Group CEO Chris Meyer notes: “We are
encouraged by the results we achieved this quarter, with a marked
improvement in our performance, positively influenced by the
recovery in our merchant division and delivery on the turnaround in
our consumer financial services division. Notably, we launched our
new brand identity, Lesaka, which authentically represents our
commitment to the local communities we serve and our mission of
improving lives by driving widespread financial inclusion. Having
successfully completed the transformational Connect Group
acquisition, our combined unique ecosystem, positively positions us
to provide innovative essential financial services to previously
underserved consumers and merchants across Southern Africa and to
benefit from secular growth opportunities especially in the high
growth informal merchant market.”
Summary Financial Metrics
Three months ended
|
Three months ended |
|
|
|
|
|
|
|
|
|
Mar 31,2022 |
|
Mar 31,2021 |
|
Dec 31,2021 |
|
Q3 ’22 vsQ3 ’21 |
|
Q3 ’22 vsQ2 ’22 |
|
Q3 ’22 vsQ3 ’21 |
|
Q3 ’22 vsQ2 ’22 |
(All figures in
USD ‘000s except per share data) |
USD ‘000’s(except per share
data) |
|
% change in USD |
|
% change in ZAR |
Revenue |
35,202 |
|
|
28,828 |
|
|
31,114 |
|
|
22 |
% |
|
13 |
% |
|
27 |
% |
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
loss |
(9,421 |
) |
|
(14,292 |
) |
|
(9,427 |
) |
|
(34 |
%) |
|
(0 |
%) |
|
(31 |
%) |
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
loss(1) |
(2,870 |
) |
|
(12,823 |
) |
|
(7,059 |
) |
|
(78 |
%) |
|
(59 |
%) |
|
(77 |
%) |
|
(59 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss per
share ($) |
(0.06 |
) |
|
(0.11 |
) |
|
(0.22 |
) |
|
(48 |
%) |
|
(73 |
%) |
|
(45 |
%) |
|
(73 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fundamental loss
per share ($)(1) |
(0.05 |
) |
|
(0.24 |
) |
|
(0.13 |
) |
|
(79 |
%) |
|
(62 |
%) |
|
(78 |
%) |
|
(61 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully-diluted
shares outstanding (‘000’s) |
57,791 |
|
|
56,921 |
|
|
57,204 |
|
|
2 |
% |
|
1 |
% |
|
n/a |
|
|
n/a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average period USD
/ ZAR exchange rate |
15.61 |
|
|
14.96 |
|
|
15.38 |
|
|
4 |
% |
|
2 |
% |
|
n/a |
|
|
n/a |
|
Nine months ended
|
Nine months ended |
|
|
|
|
|
|
|
Mar 31,2022 |
|
Mar 31,2021 |
|
F2022 vsF2021 |
|
F2022 vsF2021 |
(All figures in
USD ‘000s except per share data) |
USD ‘000’s (except per share
data) |
% changein USD |
|
% changein ZAR |
Revenue |
100,820 |
|
|
96,269 |
|
|
5 |
% |
|
(3 |
%) |
|
|
|
|
|
|
|
|
GAAP operating
loss |
(30,073 |
) |
|
(40,272 |
) |
|
(25 |
%) |
|
(31 |
%) |
|
|
|
|
|
|
|
|
Adjusted EBITDA
loss(1) |
(20,016 |
) |
|
(34,699 |
) |
|
(42 |
%) |
|
(46 |
%) |
|
|
|
|
|
|
|
|
GAAP loss per
share ($) |
(0.50 |
) |
|
(0.70 |
) |
|
(28 |
%) |
|
(33 |
%) |
|
|
|
|
|
|
|
|
Fundamental loss
per share ($)(1) |
(0.40 |
) |
|
(0.69 |
) |
|
(42 |
%) |
|
(46 |
%) |
|
|
|
|
|
|
|
|
|
Fully-diluted
shares outstanding (‘000’s) |
57,322 |
|
|
56,895 |
|
|
1 |
% |
|
n/a |
|
|
|
|
|
|
|
|
|
|
Average period USD
/ ZAR exchange rate |
14.99 |
|
|
16.12 |
|
|
(7 |
%) |
|
n/a |
|
(1) 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 and loss per share.
Factors impacting comparability of our
Q3 2022 and Q3 2021 results
- Higher revenue:
Our revenues increased 27% in ZAR primarily due to an increase in
hardware sales, an increase in merchant transaction processing
fees, and moderate increases in lending and insurance revenues,
which was partially offset by lower prepaid airtime sales;
- Lower operating
losses: Operating losses decreased, delivering an
improvement of 31% in ZAR compared with the prior period primarily
due to an increase in revenue, the closure of the loss-making IPG
operations and the implementation of various cost reduction
initiatives in our Consumer business. During the quarter, we
recorded a reorganization charge of $5.9 million related to the
retrenchment process we commenced in January 2022; and
- Foreign exchange
movements: The U.S. dollar was 4% stronger against the ZAR
during the third quarter of fiscal 2022, which impacted our
reported results.
Results of Operations by Segment and
Liquidity
Consumer
Segment revenue was $16.4 million in Q3 2022, up
6% compared with Q3 2021, and flat compared with Q2 2022 on a
constant currency basis. Segment revenue increased primarily due to
higher lending and insurance revenues and moderately higher account
holder fees. We embarked on a retrenchment process during Q3 2022
and recorded an expense of $5.9 million which is included in the
Segment EBITDA loss. Segment EBITDA loss has decreased primarily
due to the implementation of various cost reduction initiatives.
Our EBITDA loss margin (calculated as EBITDA loss divided by
revenue) for Q3 2022 and 2021 was (41.8%) and (46.9%),
respectively.
The table below presents EBITDA for our Consumer
operating segment and illustrates EBITDA for Q3 2022 including and
excluding the reorganization costs:
|
In United States dollars |
|
In South African Rand |
|
Three months ended March 31, |
|
Three months ended March 31, |
Operating
Segment |
2022USD ’000 |
|
2021USD ’000 |
|
% change |
|
2022ZAR ’000 |
|
2021ZAR ’000 |
|
% change |
EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
Consumer |
(6,866 |
) |
|
(7,610 |
) |
|
(10 |
%) |
|
(107,191 |
) |
|
(113,827 |
) |
|
(6 |
%) |
Reorganization costs |
5,852 |
|
|
- |
|
|
nm |
|
|
91,361 |
|
|
- |
|
|
nm |
|
Consumer excluding reorganization costs |
(1,014 |
) |
|
(7,610 |
) |
|
(87 |
%) |
|
(15,830 |
) |
|
(113,827 |
) |
|
(86 |
%) |
EBITDA margin: |
|
|
|
|
|
|
|
|
|
|
|
Consumer |
(42 |
%) |
|
(47 |
%) |
|
|
|
(42 |
%) |
|
(47 |
%) |
|
|
Consumer excluding reorganization costs |
(6 |
%) |
|
(47 |
%) |
|
|
|
(6 |
%) |
|
(47 |
%) |
|
|
Merchant
Segment revenue was $18.5 million in Q3 2022, up
58% compared with Q3 2021 and up 33% compared to Q2 2022 on a
constant currency basis. Segment revenue increased year on year due
to an increase in hardware sales and processing fees, which was
partially offset by fewer prepaid airtime sales. The increase in
segment EBITDA is primarily due to the increase in hardware sales.
Our EBITDA margin for Q3 2022 and 2021 was 6.9% and 2.2%,
respectively.
Other
Other includes the activities of IPG in fiscal
2021 and our other business outside South Africa, principally
Botswana.
Segment revenue decreased due to lower revenue
following the closure of IPG in fiscal 2021. We recorded an EBITDA
contribution during the third quarter of fiscal 2022 following the
closure of our loss-making activities performed through IPG.
Corporate/Eliminations
Our corporate expenses generally include
acquisition-related intangible asset amortization; expenses
incurred related to corporate actions; expenditures related to
compliance with the Sarbanes-Oxley Act of 2002; non-employee
directors’ fees; certain employee and executive bonuses;
stock-based compensation; legal fees; audit fees; directors and
officer’s insurance premiums; elimination entries; and from fiscal
2022 our group CEO’s compensation.
Our corporate expenses for fiscal 2022 increased
compared with the prior period due to higher employee costs, an
increase in director and officer’s insurance premiums, and higher
stock-based compensation charges. Fiscal 2021 includes an
unrealized foreign exchange gain of $0.6 million which also impacts
comparability. Our corporate expenses for fiscal 2022 includes
transaction related expenses of $0.1 million (ZAR 1.8 million)
related to the Connect Group acquisition. We expect to incur
additional expenses related to the Connect Group transaction in Q4
2022.
Cash flow and liquidity
At March 31, 2022, our cash and cash equivalents
were $183.7 million and comprised of U.S. dollar-denominated
balances of $11.3 million, ZAR-denominated balances of ZAR 2.5
billion ($169.9 million), and other currency deposits, primarily
Botswana pula, of $2.4 million, all amounts translated at exchange
rates applicable as of March 31, 2022. The decrease in our
unrestricted cash balances from June 30, 2021 was primarily due to
utilization of cash reserves to fund our operations and payment of
reorganization costs, which was partially offset by the receipt of
$7.5 million related to the sale of Bank Frick in fiscal 2021 and a
$3.7 million gain on foreign currency options.
Adopting a new brand and
identity
As we embarked on creating a world class
financial technology platform and repositioning ourselves for
growth, it became evident we required a new identity that would
resonate with our customers and employees. It was important for our
new identity to authentically express our commitment to the local
communities we serve and our ambition to drive financial inclusion
by giving ordinary people and small businesses access to essential
financial services.
For thousands of years livestock have been seen
as a symbol of security, community and wealth and protecting one’s
livestock was central to preserving the dignity and pride of a
community. To ensure the best possible protection, an enclosure
commonly known as a “kraal” in South Africa, was built in the
center of the community. A kraal is seen as the social and economic
heart of a village and only the most reliable people are entrusted
with its care and protection. The word Lesaka means Kraal in
Setswana and Sesotho, two of South Africa’s official languages, and
it was agreed by our shareholders that the existing company name
Net1, should change to Lesaka, which aptly represents our new group
and its vision.
As Lesaka, we are on a mission to build
and protect the financial wellbeing of our communities and our
intention is to protect the vulnerable and underserved, by
providing widespread access to essential financial
services.
Changing our name will mean that our
tickers will change to LSAK on the NasdaqGS and LSK on the JSE,
effective May 18, 2022.
Webcast and Conference Call
Net1 will host a webcast and conference call to
review results on May 11, 2022, at 8:00 a.m. Eastern Time.
Participants now have the option to
either:
- Watch the live results presentation
by webcast using the webcast link below; or
- Listen to an audio only broadcast
of the results, using the conference call information below.
Webcast information:The results
webcast can be accessed by using the following webcast
link:https://78449.themediaframe.com/links/net1220510.html.
Participants who want to submit their questions real-time will be
able to do so utilizing the question functionality included in this
link.
Conference call information:The
conference call can be accessed either through pre-registering for
the call or dialing in real time. Participants will be given the
opportunity to ask their questions through the conference call
facility.
Pre-register:Participants can
pre-register for the May 11, 2022, conference call by using the
following link:
https://services.choruscall.za.com/DiamondPassRegistration/register?confirmationNumber=5271444&linkSecurityString=adee45774.
Participants utilizing this pre-registration service will receive
their dial-in number and unique pin upon registration.
Real time dial in:For those
participants who do not pre-register, you can dial +1 508 924 4326
(US and Canada), +44 333 300 1418 (U.K. only) or +27 11 535
3600 (South Africa only) ten minutes prior to the start of the
call. Callers should request “Net1 call” upon dial-in.
A replay of the results presentation webcast
will be available on the Net1 investor relations website.
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.
Operating income before depreciation and amortization
and adjusted EBITDA
Operating income before depreciation and
amortization is GAAP operating (loss) income adjusted for
depreciation and amortization. Adjusted EBITDA is earnings before
interest, tax, depreciation and amortization (“EBITDA”), adjusted
for unusual non-recurring items, costs related to acquisitions and
transactions consummated or ultimately not pursued.
Fundamental net loss and fundamental loss per
share
Fundamental net loss and loss per share is GAAP
net loss and loss 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 and loss per share for
fiscal 2022 also includes adjustments for a gain related to fair
value adjustments in respect of currency options, reorganization
costs incurred, a gain on disposal of equity securities and a loss
on disposal of equity-accounted investments.
Fundamental net loss and loss per share for
fiscal 2021 also includes adjustments related to changes in the
fair value of equity securities, loss on disposal of
equity-accounted investments, impairment losses related to an
equity-accounted investment and the deferred tax liability reversal
related to the impairment of the equity-accounted investment.
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 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 H(L)EPS basic and diluted and the
calculation of the denominator for headline diluted (loss) earnings
per share.
About Net1
Net1 is a leading South African financial
technology company that utilizes its proprietary banking and
payment technology to deliver financial services to consumers (B2C)
and merchants (B2B) in Southern Africa. Net1’s mission is to drive
true financial inclusion for both consumers and merchants through
offering affordable financial services to the previously
underserved sectors of the economy. Net1 offers banking, lending
and insurance products to consumers and cash management solutions,
bill payment technology, value added services, growth capital and
card acquiring solutions to formal and informal Southern African
retail merchants.
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:Partner – ICR Email:
net1IR@icrinc.com
Media Relations Contact:Janine Bester
GertzenEmail: Janine@thenielsennetwork.com
|
|
|
|
|
|
|
NET 1 UEPS TECHNOLOGIES, INC. |
Unaudited Condensed Consolidated Statements of
Operations |
|
|
|
|
|
|
|
|
|
Unaudited |
|
Unaudited |
|
|
Three months ended |
|
Nine months ended |
|
|
March 31, |
|
March 31, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE |
|
$ |
35,202 |
|
|
$ |
28,828 |
|
|
$ |
100,820 |
|
|
$ |
96,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold, IT processing, servicing and support |
|
|
23,008 |
|
|
|
23,096 |
|
|
|
67,795 |
|
|
|
73,895 |
|
Selling, general and administration |
|
|
15,184 |
|
|
|
18,892 |
|
|
|
53,372 |
|
|
|
59,517 |
|
Depreciation and amortization |
|
|
463 |
|
|
|
1,132 |
|
|
|
2,084 |
|
|
|
3,129 |
|
Reorganization costs |
|
|
5,852 |
|
|
|
- |
|
|
|
5,852 |
|
|
|
- |
|
Transaction costs related to Connect Group acquisition |
|
|
116 |
|
|
|
- |
|
|
|
1,790 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
LOSS |
|
|
(9,421 |
) |
|
|
(14,292 |
) |
|
|
(30,073 |
) |
|
|
(40,272 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
CHANGE IN FAIR
VALUE OF EQUITY SECURITIES |
|
|
- |
|
|
|
10,814 |
|
|
|
- |
|
|
|
25,942 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAIN RELATED TO
FAIR VALUE ADJUSTMENT TO CURRENCY OPTIONS |
|
|
6,120 |
|
|
|
- |
|
|
|
3,691 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS ON DISPOSAL
OF EQUITY-ACCOUNTED INVESTMENT |
|
|
346 |
|
|
|
- |
|
|
|
346 |
|
|
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAIN ON DISPOSAL
OF EQUITY SECURITIES |
|
|
720 |
|
|
|
- |
|
|
|
720 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS ON DISPOSAL
OF EQUITY-ACCOUNTED INVESTMENT - BANK FRICK |
|
|
- |
|
|
|
472 |
|
|
|
- |
|
|
|
472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
INCOME |
|
|
761 |
|
|
|
606 |
|
|
|
1,463 |
|
|
|
1,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE |
|
|
691 |
|
|
|
744 |
|
|
|
2,272 |
|
|
|
2,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAX EXPENSE |
|
|
(2,857 |
) |
|
|
(4,088 |
) |
|
|
(26,817 |
) |
|
|
(15,049 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX
EXPENSE |
|
|
470 |
|
|
|
2,171 |
|
|
|
754 |
|
|
|
4,549 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS BEFORE
EARNINGS (LOSS) FROM EQUITY-ACCOUNTED INVESTMENTS |
|
|
(3,327 |
) |
|
|
(6,259 |
) |
|
|
(27,571 |
) |
|
|
(19,598 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS)
FROM EQUITY-ACCOUNTED INVESTMENTS |
|
|
- |
|
|
|
55 |
|
|
|
(1,156 |
) |
|
|
(20,098 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
ATTRIBUTABLE TO NET1 |
|
|
(3,327 |
) |
|
|
(6,204 |
) |
|
|
(28,727 |
) |
|
|
(39,696 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
per share, in United States dollars: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss
attributable to Net1 shareholders |
|
$ |
(0.06 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.50 |
) |
|
$ |
(0.70 |
) |
Diluted loss
attributable to Net1 shareholders |
|
$ |
(0.06 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.50 |
) |
|
$ |
(0.70 |
) |
NET 1 UEPS TECHNOLOGIES, INC. |
Unaudited Condensed Consolidated Balance
Sheets |
|
|
|
|
|
Unaudited |
|
(A) |
|
March 31, |
|
June 30, |
|
2022 |
|
2021 |
|
(In thousands, except share data) |
ASSETS |
|
|
|
|
|
CURRENT
ASSETS |
|
|
|
|
|
Cash and cash equivalents |
$ |
183,712 |
|
|
$ |
198,572 |
|
Restricted cash |
|
56,336 |
|
|
|
25,193 |
|
Accounts receivable, net of allowance of - March: $454; June: $267
and other receivables |
|
24,435 |
|
|
|
26,583 |
|
Finance loans receivable, net of allowance of - March: $2,466;
June: $2,349 |
|
22,196 |
|
|
|
21,142 |
|
Inventory |
|
22,104 |
|
|
|
22,361 |
|
Total current assets before settlement assets |
|
308,783 |
|
|
|
293,851 |
|
Settlement assets |
|
364 |
|
|
|
466 |
|
Total current assets |
|
309,147 |
|
|
|
294,317 |
|
|
|
|
|
|
|
|
|
PROPERTY, PLANT
AND EQUIPMENT, net of accumulated depreciation of - March: $37,708;
June: $38,535 |
|
5,851 |
|
|
|
7,492 |
|
OPERATING LEASE
RIGHT-OF-USE |
|
3,375 |
|
|
|
4,519 |
|
EQUITY-ACCOUNTED
INVESTMENTS |
|
7,275 |
|
|
|
10,004 |
|
GOODWILL |
|
28,661 |
|
|
|
29,153 |
|
INTANGIBLE ASSETS,
net of accumulated amortization of - March: $14,388; June:
$16,403 |
|
298 |
|
|
|
357 |
|
DEFERRED INCOME
TAXES |
|
1,066 |
|
|
|
622 |
|
OTHER LONG-TERM
ASSETS, including reinsurance assets |
|
77,992 |
|
|
|
81,866 |
|
TOTAL
ASSETS |
|
433,665 |
|
|
|
428,330 |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
|
Short-term credit facilities for ATM funding |
|
45,678 |
|
|
|
14,245 |
|
Accounts payable |
|
5,102 |
|
|
|
7,113 |
|
Other payables |
|
27,187 |
|
|
|
27,588 |
|
Operating lease liability - current |
|
2,232 |
|
|
|
2,822 |
|
Income taxes payable |
|
695 |
|
|
|
256 |
|
Total current liabilities before settlement obligations |
|
80,894 |
|
|
|
52,024 |
|
Settlement obligations |
|
364 |
|
|
|
466 |
|
Total current liabilities |
|
81,258 |
|
|
|
52,490 |
|
DEFERRED INCOME
TAXES |
|
10,408 |
|
|
|
10,415 |
|
OPERATING LEASE
LIABILITY - LONG TERM |
|
1,345 |
|
|
|
1,890 |
|
OTHER LONG-TERM
LIABILITIES, including insurance policy liabilities |
|
2,695 |
|
|
|
2,576 |
|
TOTAL
LIABILITIES |
|
95,706 |
|
|
|
67,371 |
|
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: March: 57,921,062;
June: 56,716,620 |
|
80 |
|
|
|
80 |
|
PREFERRED
STOCK |
|
|
|
|
|
Authorized shares: 50,000,000 with $0.001 par value; |
|
|
|
|
|
Issued and outstanding shares, net of treasury: March: -; June:
- |
|
- |
|
|
|
- |
|
ADDITIONAL
PAID-IN-CAPITAL |
|
304,430 |
|
|
|
301,959 |
|
TREASURY SHARES,
AT COST: March: 24,891,292; June: 24,891,292 |
|
(286,951 |
) |
|
|
(286,951 |
) |
ACCUMULATED OTHER
COMPREHENSIVE LOSS |
|
(142,465 |
) |
|
|
(145,721 |
) |
RETAINED
EARNINGS |
|
377,886 |
|
|
|
406,613 |
|
TOTAL NET1
EQUITY |
|
252,980 |
|
|
|
275,980 |
|
NON-CONTROLLING
INTEREST |
|
- |
|
|
|
- |
|
TOTAL
EQUITY |
|
252,980 |
|
|
|
275,980 |
|
|
|
|
|
|
|
TOTAL
LIABILITIES, REDEEMABLE COMMON STOCK AND SHAREHOLDERS’
EQUITY |
$ |
433,665 |
|
|
$ |
428,330 |
|
(A) Derived from audited consolidated financial statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET 1 UEPS TECHNOLOGIES, INC. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
|
|
|
|
|
|
|
|
Unaudited |
|
Unaudited |
|
Three months ended |
|
Nine months ended |
|
March 31, |
|
March 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from operating activities |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(3,327 |
) |
|
$ |
(6,204 |
) |
|
$ |
(28,727 |
) |
|
$ |
(39,696 |
) |
Depreciation and amortization |
|
463 |
|
|
|
1,132 |
|
|
|
2,084 |
|
|
|
3,129 |
|
Impairment loss |
|
(27 |
) |
|
|
- |
|
|
|
198 |
|
|
|
- |
|
Movement in allowance for doubtful accounts receivable |
|
91 |
|
|
|
299 |
|
|
|
1,217 |
|
|
|
913 |
|
Interest payable |
|
(97 |
) |
|
|
(25 |
) |
|
|
(199 |
) |
|
|
(46 |
) |
Unrealized (gain) loss related to fair value adjustment to currency
options |
|
(2,391 |
) |
|
|
- |
|
|
|
38 |
|
|
|
- |
|
Fair value adjustment related to financial liabilities |
|
(152 |
) |
|
|
(475 |
) |
|
|
(476 |
) |
|
|
1,201 |
|
Gain on disposal of equity securities |
|
(720 |
) |
|
|
- |
|
|
|
(720 |
) |
|
|
- |
|
Loss on disposal of equity-accounted investment |
|
346 |
|
|
|
- |
|
|
|
346 |
|
|
|
13 |
|
Loss on disposal of equity-accounted investment - Bank Frick |
|
- |
|
|
|
472 |
|
|
|
- |
|
|
|
472 |
|
(Earnings) Loss from equity-accounted investments |
|
- |
|
|
|
(55 |
) |
|
|
1,156 |
|
|
|
20,098 |
|
Movement in allowance for doubtful loans |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
739 |
|
Change in fair value of equity securities |
|
- |
|
|
|
(10,814 |
) |
|
|
- |
|
|
|
(25,942 |
) |
(Profit) Loss on disposal of property, plant and equipment |
|
(1,077 |
) |
|
|
(142 |
) |
|
|
(2,598 |
) |
|
|
600 |
|
Stock-based compensation charge |
|
614 |
|
|
|
245 |
|
|
|
1,711 |
|
|
|
876 |
|
Dividends received from equity accounted investments |
|
- |
|
|
|
- |
|
|
|
137 |
|
|
|
125 |
|
(Increase) Decrease in accounts receivable and finance loans
receivable |
|
(687 |
) |
|
|
5,786 |
|
|
|
(2,966 |
) |
|
|
4,230 |
|
(Increase) Decrease in inventory |
|
(181 |
) |
|
|
428 |
|
|
|
(27 |
) |
|
|
2,642 |
|
(Decrease) Increase in accounts payable and other payables |
|
(1,913 |
) |
|
|
(894 |
) |
|
|
(1,668 |
) |
|
|
(4,393 |
) |
Increase (Decrease) in taxes payable |
|
395 |
|
|
|
(160 |
) |
|
|
444 |
|
|
|
(15,498 |
) |
(Decrease) Increase in deferred taxes |
|
(112 |
) |
|
|
2,153 |
|
|
|
(458 |
) |
|
|
424 |
|
Net cash used in operating activities |
|
(8,775 |
) |
|
|
(8,254 |
) |
|
|
(30,508 |
) |
|
|
(50,113 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from investing activities |
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
(834 |
) |
|
|
(649 |
) |
|
|
(1,721 |
) |
|
|
(3,947 |
) |
Proceeds from disposal of property, plant and equipment |
|
1,538 |
|
|
|
254 |
|
|
|
3,529 |
|
|
|
345 |
|
Proceeds from disposal of equity securities |
|
720 |
|
|
|
- |
|
|
|
720 |
|
|
|
- |
|
Proceeds from disposal of equity-accounted investment |
|
819 |
|
|
|
- |
|
|
|
819 |
|
|
|
- |
|
Proceeds from disposal of equity-accounted investment - Bank
Frick |
|
- |
|
|
|
18,568 |
|
|
|
7,500 |
|
|
|
18,568 |
|
Proceeds from disposal of Net1 Korea, net of cash disposed |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
20,114 |
|
Proceeds from disposal of DNI as equity-accounted investment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6,010 |
|
Loan to equity-accounted investment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,238 |
) |
Repayment of loans by equity-accounted investments |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
134 |
|
Net change in settlement assets |
|
5 |
|
|
|
745 |
|
|
|
102 |
|
|
|
6,190 |
|
Net cash provided by investing activities |
|
2,248 |
|
|
|
18,918 |
|
|
|
10,949 |
|
|
|
46,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities |
|
|
|
|
|
|
|
|
|
|
|
Proceeds from bank overdraft |
|
95,048 |
|
|
|
55,280 |
|
|
|
406,398 |
|
|
|
261,759 |
|
Repayment of bank overdraft |
|
(100,832 |
) |
|
|
(103,195 |
) |
|
|
(372,508 |
) |
|
|
(268,303 |
) |
Proceeds from issue of shares |
|
20 |
|
|
|
35 |
|
|
|
759 |
|
|
|
53 |
|
Proceeds from disgorgement of shareholders' short-swing
profits |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
124 |
|
Net change in settlement obligations |
|
(5 |
) |
|
|
(745 |
) |
|
|
(102 |
) |
|
|
(6,190 |
) |
Net cash (used in) provided by financing
activities |
|
(5,769 |
) |
|
|
(48,625 |
) |
|
|
34,547 |
|
|
|
(12,557 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash |
|
12,200 |
|
|
|
(2,263 |
) |
|
|
1,295 |
|
|
|
10,839 |
|
Net
(decrease) increase in cash, cash equivalents and restricted
cash |
|
(96 |
) |
|
|
(40,224 |
) |
|
|
16,283 |
|
|
|
(5,655 |
) |
Cash, cash
equivalents and restricted cash – beginning of period |
|
240,144 |
|
|
|
267,054 |
|
|
|
223,765 |
|
|
|
232,485 |
|
Cash, cash
equivalents and restricted cash – end of period |
$ |
240,048 |
|
|
$ |
226,830 |
|
|
$ |
240,048 |
|
|
$ |
226,830 |
|
Net 1 UEPS Technologies, Inc.
Attachment A
Operating segment revenue, operating
(loss) income and operating (loss) margin:
Three months ended March 31, 2022 and
2021 and June 30, 2021
|
|
Three months ended |
Change - actual |
Change
–constantexchange rate(2) |
Key
segmental data, in ’000, except margins |
|
Mar 31,2022 |
|
Mar 31,2021 |
|
Dec 31,2021 |
Q3 '22vsQ3
'21 |
Q3 '22vsQ2
'22 |
Q3 '22vsQ3
'21 |
Q3 '22vsQ2
'22 |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
$ |
16,429 |
|
|
$ |
16,236 |
|
|
$ |
16,639 |
|
1 |
% |
(1 |
%) |
6 |
% |
0 |
% |
Merchant |
|
|
18,478 |
|
|
|
12,171 |
|
|
|
14,102 |
|
52 |
% |
31 |
% |
58 |
% |
33 |
% |
Other |
|
|
397 |
|
|
|
421 |
|
|
|
396 |
|
(6 |
%) |
0 |
% |
(2 |
%) |
2 |
% |
Subtotal: Operating segments |
|
|
35,304 |
|
|
|
28,828 |
|
|
|
31,137 |
|
22 |
% |
13 |
% |
28 |
% |
15 |
% |
Intersegment eliminations |
|
|
(102 |
) |
|
|
- |
|
|
|
(23 |
) |
nm |
|
343 |
% |
nm |
|
350 |
% |
Consolidated revenue |
|
$ |
35,202 |
|
|
$ |
28,828 |
|
|
$ |
31,114 |
|
22 |
% |
13 |
% |
27 |
% |
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer(1) |
|
$ |
(6,866 |
) |
|
$ |
(7,610 |
) |
|
$ |
(4,551 |
) |
(10 |
%) |
51 |
% |
(6 |
%) |
53 |
% |
Merchant |
|
|
1,271 |
|
|
|
273 |
|
|
|
795 |
|
366 |
% |
60 |
% |
386 |
% |
62 |
% |
Other |
|
|
87 |
|
|
|
(3,315 |
) |
|
|
123 |
|
nm |
|
(29 |
%) |
nm |
|
(28 |
%) |
Total Segment Adjusted EBITDA |
|
|
(5,508 |
) |
|
|
(10,652 |
) |
|
|
(3,633 |
) |
(48 |
%) |
52 |
% |
(46 |
%) |
54 |
% |
Corporate/Eliminations |
|
|
(2,560 |
) |
|
|
(1,404 |
) |
|
|
(4,235 |
) |
82 |
% |
(40 |
%) |
90 |
% |
(39 |
%) |
Subtotal |
|
|
(8,068 |
) |
|
|
(12,056 |
) |
|
|
(7,868 |
) |
(33 |
%) |
3 |
% |
nm |
|
nm |
|
Less: Lease adjustments |
|
|
890 |
|
|
|
1,104 |
|
|
|
833 |
|
(19 |
%) |
7 |
% |
nm |
|
nm |
|
Less: Depreciation and amortization |
|
|
463 |
|
|
|
1,132 |
|
|
|
726 |
|
(59 |
%) |
(36 |
%) |
nm |
|
nm |
|
Consolidated operating loss |
|
$ |
(9,421 |
) |
|
$ |
(14,292 |
) |
|
$ |
(9,427 |
) |
(34 |
%) |
(0 |
%) |
(31 |
%) |
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Adjusted EBITDA (loss) margin (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
|
(41.8 |
%) |
|
|
(46.9 |
%) |
|
|
(27.4 |
%) |
|
|
|
|
|
|
Merchant |
|
|
6.9 |
% |
|
|
2.2 |
% |
|
|
5.6 |
% |
|
|
|
|
|
|
Other |
|
|
21.9 |
% |
|
|
(787.4 |
%) |
|
|
31.1 |
% |
|
|
|
|
Consolidated EBITDA (loss) margin |
|
|
(26.8 |
%) |
|
|
(49.6 |
%) |
|
|
(30.3 |
%) |
|
|
|
|
(1) – Consumer Segment Adjusted
EBITDA for Q3 2022, includes reorganization costs of $5.9
million.(2) – This information shows what the
change in these items would have been if the USD/ ZAR exchange rate
that prevailed during Q3 2022 also prevailed during Q3 2021 and Q2
2022.
Nine months ended March 31, 2022 and
2021
|
|
|
|
|
|
|
|
|
|
Change - actual |
Change
–constantexchangerate(2) |
|
|
|
|
|
|
|
|
Nine months ended March 31, |
|
F2021 vs |
F2021 vs |
Key segmental data, in ’000, except margins |
|
2021 |
|
2020 |
|
F2020 |
F2020 |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
$ |
50,232 |
|
|
$ |
47,867 |
|
|
5 |
% |
(2 |
%) |
Merchant |
|
|
49,652 |
|
|
|
45,623 |
|
|
9 |
% |
1 |
% |
Other |
|
|
1,220 |
|
|
|
2,855 |
|
|
(57 |
%) |
(60 |
%) |
Subtotal: Operating segments |
|
|
101,104 |
|
|
|
96,345 |
|
|
5 |
% |
(2 |
%) |
Intersegment eliminations |
|
|
(284 |
) |
|
|
(76 |
) |
|
274 |
% |
247 |
% |
Consolidated revenue |
|
$ |
100,820 |
|
|
$ |
96,269 |
|
|
5 |
% |
(3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer(1) |
|
$ |
(20,871 |
) |
|
$ |
(19,395 |
) |
|
8 |
% |
0 |
% |
Merchant |
|
|
3,951 |
|
|
|
4,471 |
|
|
(12 |
%) |
(18 |
%) |
Other |
|
|
353 |
|
|
|
(10,285 |
) |
|
nm |
|
nm |
|
Total Segment Adjusted EBITDA |
|
|
(16,567 |
) |
|
|
(25,209 |
) |
|
(34 |
%) |
(39 |
%) |
Corporate/Eliminations |
|
|
(8,775 |
) |
|
|
(8,943 |
) |
|
(2 |
%) |
(9 |
%) |
Subtotal |
|
|
(25,342 |
) |
|
|
(34,152 |
) |
|
(26 |
%) |
nm |
|
Less: Lease adjustments |
|
|
2,647 |
|
|
|
2,991 |
|
|
(12 |
%) |
nm |
|
Less: Depreciation and amortization |
|
|
2,084 |
|
|
|
3,129 |
|
|
(33 |
%) |
nm |
|
Consolidated operating loss |
|
$ |
(30,073 |
) |
|
$ |
(40,272 |
) |
|
(25 |
%) |
(31 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Adjusted EBITDA (loss) margin (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
|
(41.5 |
%) |
|
|
(40.5 |
%) |
|
|
|
|
|
Merchant |
|
|
8.0 |
% |
|
|
9.8 |
% |
|
|
|
|
|
Other |
|
|
28.9 |
% |
|
|
(360.2 |
%) |
|
|
|
|
|
Consolidated EBITDA (loss) margin |
|
|
(29.8 |
%) |
|
|
(41.8 |
%) |
|
|
|
|
|
(1) – Consumer Segment Adjusted
EBITDA for fiscal 2022, includes reorganization costs of $5.9
million.(2) – This information shows what the
change in these items would have been if the USD/ ZAR exchange rate
that prevailed during the year to date fiscal 2022 also prevailed
during the year to date fiscal 2021.
Earnings (Loss) from equity-accounted
investments:
The table below presents the relative earnings
(loss) from our equity-accounted investments:
|
Three months ended March 31, |
|
|
Nine months ended March 31, |
|
|
2022 |
|
|
2021 |
|
|
%change |
|
|
2022 |
|
|
|
2021 |
|
|
%change |
Bank Frick |
$ |
- |
|
$ |
177 |
|
|
nm |
|
$ |
- |
|
|
$ |
1,156 |
|
|
nm |
Share of net income |
|
- |
|
|
177 |
|
|
nm |
|
|
- |
|
|
|
1,156 |
|
|
nm |
Finbond |
|
- |
|
|
- |
|
|
nm |
|
|
(1,156 |
) |
|
|
(20,267 |
) |
|
(94 |
%) |
Share of net loss |
|
- |
|
|
- |
|
|
nm |
|
|
(1,156 |
) |
|
|
(2,617 |
) |
|
(56 |
%) |
Impairment |
|
- |
|
|
- |
|
|
nm |
|
|
- |
|
|
|
(17,650 |
) |
|
nm |
Other |
|
- |
|
|
(122 |
) |
|
nm |
|
|
- |
|
|
|
(987 |
) |
|
nm |
Share of net loss |
|
- |
|
|
(122 |
) |
|
nm |
|
|
- |
|
|
|
(439 |
) |
|
nm |
Impairment |
|
- |
|
|
- |
|
|
nm |
|
|
- |
|
|
|
(548 |
) |
|
nm |
Earnings (Loss) from equity-accounted
investments |
$ |
- |
|
$ |
55 |
|
|
nm |
|
$ |
(1,156 |
) |
|
$ |
(20,098 |
) |
|
(94 |
%) |
Net 1 UEPS Technologies,
Inc.
Attachment B
Reconciliation of GAAP operating loss to
EBITDA loss and adjusted EBITDA loss:
Three and nine months ended March 31,
2022 and 2021
|
Three months ended March 31, |
|
Nine months ended March 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Operating loss - GAAP |
$ |
(9,421 |
) |
|
$ |
(14,292 |
) |
|
$ |
(30,073 |
) |
|
$ |
(40,272 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
463 |
|
|
|
1,132 |
|
|
|
2,084 |
|
|
|
3,129 |
|
Operating loss before depreciation and amortization |
|
(8,958 |
) |
|
|
(13,160 |
) |
|
|
(27,989 |
) |
|
|
(37,143 |
) |
Reorganization costs |
|
5,852 |
|
|
|
- |
|
|
|
5,852 |
|
|
|
- |
|
Allowance for doubtful EMI loans receivable |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
739 |
|
Transaction costs |
|
236 |
|
|
|
337 |
|
|
|
2,121 |
|
|
|
1,705 |
|
Adjusted EBITDA loss |
$ |
(2,870 |
) |
|
$ |
(12,823 |
) |
|
$ |
(20,016 |
) |
|
$ |
(34,699 |
) |
Reconciliation of GAAP net loss and loss
per share, basic, to fundamental net loss and loss per share,
basic:
Three months ended March 31, 2022 and
2021
|
Net (loss) income(USD '000) |
|
(L)PS, basic (USD) |
|
Net (loss) income(ZAR '000) |
|
(L)PS, basic (ZAR) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
GAAP |
(3,327 |
) |
|
(6,204 |
) |
|
(0.06 |
) |
|
(0.11 |
) |
|
(51,940 |
) |
|
(92,796 |
) |
|
(0.90 |
) |
|
(1.63 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain related to fair value
adjustment to currency options |
(6,120 |
) |
|
- |
|
|
|
|
|
|
(95,545 |
) |
|
- |
|
|
|
|
|
Reorganization costs, net of
tax |
5,852 |
|
|
- |
|
|
|
|
|
|
91,361 |
|
|
- |
|
|
|
|
|
Transaction costs |
236 |
|
|
337 |
|
|
|
|
|
|
3,684 |
|
|
5,041 |
|
|
|
|
|
Stock-based compensation
charge |
614 |
|
|
245 |
|
|
|
|
|
|
9,586 |
|
|
3,665 |
|
|
|
|
|
Gain on disposal of equity
securities |
(720 |
) |
|
- |
|
|
|
|
|
|
(11,241 |
) |
|
- |
|
|
|
|
|
Loss on sale of
equity-accounted investment |
346 |
|
|
- |
|
|
|
|
|
|
5,402 |
|
|
- |
|
|
|
|
|
Intangible asset amortization,
net |
11 |
|
|
66 |
|
|
|
|
|
|
184 |
|
|
990 |
|
|
|
|
|
Change in fair value of equity
securities, net |
- |
|
|
(8,543 |
) |
|
|
|
|
|
- |
|
|
(127,783 |
) |
|
|
|
|
Loss on disposal of
equity-accounted investment - Bank Frick |
- |
|
|
472 |
|
|
|
|
|
|
- |
|
|
7,060 |
|
|
|
|
|
Fundamental |
(3,108 |
) |
|
(13,627 |
) |
|
(0.05 |
) |
|
(0.24 |
) |
|
(48,509 |
) |
|
(203,823 |
) |
|
(0.84 |
) |
|
(3.60 |
) |
Nine months ended March 31, 2022 and
2021
|
Net (loss) income (USD '000) |
|
(L) EPS, basic (USD) |
|
Net (loss) income (ZAR '000) |
|
(L)EPS, basic (ZAR) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
GAAP |
(28,727 |
) |
|
(39,696 |
) |
|
(0.50 |
) |
|
(0.70 |
) |
|
(430,545 |
) |
|
(639,798 |
) |
|
(7.51 |
) |
|
(11.27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reorganization costs, net of
tax |
5,852 |
|
|
- |
|
|
|
|
|
|
87,706 |
|
|
- |
|
|
|
|
|
Gain related to fair value
adjustment to currency options |
(3,691 |
) |
|
- |
|
|
|
|
|
|
(55,319 |
) |
|
- |
|
|
|
|
|
Transaction costs |
2,120 |
|
|
1,705 |
|
|
|
|
|
|
31,774 |
|
|
27,480 |
|
|
|
|
|
Stock-based compensation
charge |
1,711 |
|
|
876 |
|
|
|
|
|
|
25,644 |
|
|
14,119 |
|
|
|
|
|
Gain on disposal of equity
securities |
(720 |
) |
|
- |
|
|
|
|
|
|
(10,791 |
) |
|
- |
|
|
|
|
|
Loss on sale of
equity-accounted investment |
346 |
|
|
13 |
|
|
|
|
|
|
5,186 |
|
|
210 |
|
|
|
|
|
Intangible asset amortization,
net |
38 |
|
|
184 |
|
|
|
|
|
|
551 |
|
|
2,971 |
|
|
|
|
|
Change in fair value of equity
securities, net |
- |
|
|
(20,494 |
) |
|
|
|
|
|
- |
|
|
(330,313 |
) |
|
|
|
|
Impairment of equity method
investments |
- |
|
|
18,198 |
|
|
|
|
|
|
- |
|
|
281,729 |
|
|
|
|
|
Reversal of deferred taxes
related to impairment of equity method investment |
- |
|
|
(1,353 |
) |
|
|
|
|
|
- |
|
|
(22,633 |
) |
|
|
|
|
Allowance for doubtful EMI
loans receivable |
- |
|
|
739 |
|
|
|
|
|
|
- |
|
|
11,911 |
|
|
|
|
|
Loss on disposal of
equity-accounted investment - Bank Frick |
- |
|
|
472 |
|
|
|
|
|
|
- |
|
|
7,607 |
|
|
|
|
|
Fundamental |
(23,071 |
) |
|
(39,356 |
) |
|
(0.40 |
) |
|
(0.69 |
) |
|
(345,794 |
) |
|
(646,717 |
) |
|
(6.03 |
) |
|
(11.39 |
) |
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 March 31, 2022 and
2021
|
|
2022 |
|
2021 |
|
|
|
|
|
Net loss (USD’000) |
|
(3,327 |
) |
|
(6,204 |
) |
Adjustments: |
|
|
|
|
Gain on disposal of equity securities |
|
(720 |
) |
|
- |
|
Loss on sale of equity-accounted investment |
|
346 |
|
|
- |
|
Loss on disposal of equity-accounted investment - Bank Frick |
|
- |
|
|
430 |
|
Impairment loss |
|
(27 |
) |
|
- |
|
Profit on sale of property, plant and equipment |
|
(1,077 |
) |
|
(142 |
) |
Tax effects on above |
|
302 |
|
|
40 |
|
Net loss used to calculate
headline loss (USD’000) |
|
(4,503 |
) |
|
(5,876 |
) |
Weighted average number of
shares used to calculate net loss per share basic loss and headline
loss per share basic loss (‘000) |
|
57,791 |
|
|
56,646 |
|
Weighted average number of
shares used to calculate net loss per share diluted loss and
headline loss per share diluted loss (‘000) |
|
57,791 |
|
|
56,921 |
|
Headline loss per share: |
|
|
|
|
Basic, in USD |
|
(0.08 |
) |
|
(0.10 |
) |
Diluted, in USD |
|
(0.08 |
) |
|
(0.10 |
) |
Nine months ended March 31, 2022 and
2021
|
|
2022 |
|
2021 |
|
|
|
|
|
Net loss (USD’000) |
|
(28,727 |
) |
|
(39,696 |
) |
Adjustments: |
|
|
|
|
Gain on disposal of equity securities |
|
(720 |
) |
|
- |
|
Loss on sale of equity-accounted investment |
|
346 |
|
|
- |
|
Impairment loss |
|
198 |
|
|
- |
|
Impairment of equity method investments |
|
- |
|
|
18,198 |
|
Loss on disposal of equity-accounted investment - Bank Frick |
|
- |
|
|
430 |
|
Impairment loss |
|
198 |
|
|
- |
|
(Profit) Loss on sale of property, plant and equipment |
|
(2,598 |
) |
|
600 |
|
Tax effects on above |
|
727 |
|
|
(1,521 |
) |
Net loss used to calculate
headline loss (USD’000) |
|
(30,774 |
) |
|
(21,989 |
) |
Weighted average number of
shares used to calculate net loss per share basic loss and headline
loss per share basic loss (‘000) |
|
57,322 |
|
|
56,803 |
|
Weighted average number of
shares used to calculate net loss per share diluted loss and
headline loss per share diluted loss (‘000) |
|
57,322 |
|
|
56,895 |
|
Headline loss per share: |
|
|
|
|
Basic, in USD |
|
(0.54 |
) |
|
(0.39 |
) |
Diluted, in USD |
|
(0.54 |
) |
|
(0.39 |
) |
Calculation of the denominator for headline diluted loss
per share
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
Basic weighted-average common
shares outstanding and unvested restricted shares expected to vest
under GAAP |
57,791 |
|
56,646 |
|
57,322 |
|
56,803 |
Effect of dilutive securities under GAAP |
- |
|
275 |
|
- |
|
92 |
Denominator for headline diluted loss per share |
57,791 |
|
56,921 |
|
57,322 |
|
56,895 |
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.
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