Net 1 UEPS Technologies, Inc. (Nasdaq: UEPS; JSE: NT1) today
released results for the fourth quarter and year ended June 30,
2021.
Financial Highlights:
- Net increase of approximately
23,000 EasyPay Everywhere (EPE) account holders during Q4 2021, and
an additional 61,000 – combined – in July and August of 2021;
- Non-cash increase of $23.4 million
in Q4 2021, before tax effect, in the fair value of investment in
MobiKwik;
- At June 30, 2021, unrestricted cash
of $199 million and no debt;
- Revenue of $34.5 million in Q4
2021, an increase of 20% from Q3 2021;
- Operating loss of $(13.6) million
in Q4 2021;
- GAAP EPS of $0.03 and Fundamental
EPS loss of $(0.18) in Q4 2021; and
- Adjusted EBITDA loss of $8.2
million in Q4 2021, a $4.6 million improvement from Q3 2021
following the closure of IPG.
“Fiscal Year 2021 was a challenging year for Net
1, South Africa and the global economy - but it has also been a
productive period for the company,” said Chris Meyer, Group CEO of
Net 1. “Our core purpose is to improve people’s lives by bringing
financial inclusion to South Africa’s underserved consumers and
helping small businesses access the financial services they need to
prosper. We believe we have the right team, strategy, technology
and operations in place to position the Company to effectively
serve the large addressable market in South Africa and provide
growth for all stakeholders.”
Summary Financial Metrics
|
|
Q4 2021 |
|
Q4 2020 |
|
Q3 2021 |
|
Q4 ’21 vsQ4 ’20 |
|
Q4 ’21vsQ3 ’21 |
|
Q4 ’21 vsQ4 ’20 |
|
Q4 ’21 vsQ3 ’21 |
|
|
|
|
(as restated)(1) |
|
|
|
|
|
|
(All figures in
USD ‘000s except per share data) |
USD ‘000’s (except per share
data) |
|
% change in USD |
|
% change in ZAR |
|
Revenue |
34,517 |
|
|
24,551 |
|
|
28,828 |
|
|
41 |
% |
|
20 |
% |
|
15 |
% |
|
13 |
% |
GAAP operating
loss |
(13,600 |
) |
|
(13,180 |
) |
|
(14,292 |
) |
|
3 |
% |
|
(5 |
%) |
|
(15 |
%) |
|
(10 |
%) |
Adjusted EBITDA
(loss)(2) |
(8,208 |
) |
|
(11,868 |
) |
|
(12,823 |
) |
|
(31 |
%) |
|
(36 |
%) |
|
(43 |
%) |
|
(39 |
%) |
GAAP earnings
(loss) per share ($) |
0.03 |
|
|
(0.68 |
) |
|
(0.11 |
) |
|
nm |
|
nm |
|
nm |
|
nm |
Fundamental loss
per share ($)(2) |
(0.18 |
) |
|
(0.21 |
) |
|
(0.24 |
) |
|
(14 |
%) |
|
(25 |
%) |
|
(30 |
%) |
|
(29 |
%) |
Fully-diluted
shares outstanding (‘000’s) |
56,937 |
|
|
57,119 |
|
|
56,921 |
|
|
(0 |
%) |
|
0 |
% |
|
nm |
|
nm |
Average period
USD/ ZAR exchange rate |
14.17 |
|
|
17.28 |
|
|
14.96 |
|
|
(18 |
%) |
|
(5 |
%) |
|
nm |
|
nm |
|
|
F2021 |
|
F2020 |
|
F2021 vsF2020 |
|
F2021 vsF2020 |
|
|
|
|
(as restated)(1) |
|
|
(All figures in
USD ‘000s except per share data) |
USD ‘000’s (except per share
data) |
% changein USD |
|
% changein ZAR |
Revenue |
130,786 |
|
|
144,299 |
|
|
(9 |
%) |
|
(19 |
%) |
GAAP operating
loss |
(53,872 |
) |
|
(44,248 |
) |
|
22 |
% |
|
9 |
% |
Adjusted EBITDA
(loss)(2) |
(42,907 |
) |
|
(29,354 |
) |
|
46 |
% |
|
31 |
% |
GAAP earnings
(loss) per share ($) |
(0.67 |
) |
|
(1.37 |
) |
|
(51 |
%) |
|
(56 |
%) |
|
Continuing |
(0.67 |
) |
|
(1.70 |
) |
|
(61 |
%) |
|
(65 |
%) |
|
Discontinued |
- |
|
|
0.33 |
|
|
nm |
|
nm |
Fundamental loss
per share ($)(2) |
(0.87 |
) |
|
(1.02 |
) |
|
(15 |
%) |
|
(24 |
%) |
Fully-diluted
shares outstanding (‘000’s) |
56,898 |
|
|
56,764 |
|
|
0 |
% |
|
nm |
Average period
USD/ ZAR exchange rate |
15.72 |
|
|
17.57 |
|
|
(11 |
%) |
|
nm |
(1) 2020 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 twelve months ended June 30, 2020,
has been restated with the effect of decreasing revenue by $1.4
million and $6.7 million, respectively. Refer to Note 1 to our
audited 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
income (loss) to fundamental net loss and loss per share.
Business update related to COVID-19 pandemic
Our business has been, and continues to be,
impacted by government restrictions and quarantines related to
COVID-19. 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. South Africa is currently at adjusted Level
2, and was at adjusted Level 3 until September 12, 2021, which had
a limited impact on our businesses during Q4 2021. The South
African government commenced its vaccination program in early
calendar 2021, with a stated goal of vaccinating 67% of the South
African population by the end of the calendar year.
Factors impacting comparability of our
Q4 2021 and Q4 2020 results
- Higher revenue:
Our revenues increased 15% in ZAR primarily due to higher
volume-driven transaction fees lending revenues and hardware sales,
which were partially offset by fewer prepaid airtime sales;
- Ongoing operating
losses: Operating loss is comparable with Q4 2020, however
with different components. Q4 2021 includes a $4.0 million
allowance for doubtful loans receivable from equity-accounted
investments and no IPG losses, whilst, Q4 2020 operating losses
included the effects of pandemic-related government restrictions in
South Africa and an inventory adjustment of $1.3 million as well as
IPG losses of $4.3 million.
- Non-cash increase in fair
value of MobiKwik: We recorded a non-cash fair value gain
during Q4 2021 of $23.4 million related to the change in fair value
of MobiKwik; and
- Foreign exchange
movements: The U.S. dollar was 18.0% weaker against the
ZAR during Q4 2021, which impacted our reported results.
Results of Operations by Segment and
Liquidity
Processing
Segment revenue, excluding IPG, was $21.2
million in Q4 2021, up 12% compared with Q4 2020 and up 7% compared
with Q3 2021 on a constant currency basis. Excluding IPG, segment
revenue increased primarily due to an increase in volume-driven
transaction fees due to lower trading activity in Q4, 2020,
following government-imposed lockdown restrictions, which was
partially offset by fewer prepaid airtime sales and a reduction in
volume-driven transaction fees. Excluding IPG, Processing’s
operating loss for Q4 2021, has been impacted by an increase in
transaction-based and employee costs, which was partially offset by
the lower cost of prepaid airtime sales. Q4 2020 also includes a
$1.3 million inventory write-down related to Cell C prepaid
airtime. Our operating loss margin (calculated as operating (loss)
income divided by revenue) for Q4 2021 and 2020 was (27.3%) and
(61.6%), respectively. Excluding IPG, our operating loss margin for
the Processing segment was (27.4%) and (37.6%) during Q4 2021 and
2020, respectively. Excluding the Cell C prepaid airtime
write-down, our operating loss and operating loss margin for the
Processing segment was $(8.8) million and (53.6%), respectively,
during Q4 2020.
Financial services
Segment revenue was $10.8 million in Q4 2021, up
1% on a constant currency basis compared with both Q4 2020 and Q3
2021. Segment revenue was affected by higher lending revenue, which
was partially offset by lower account fees. The increase in
operating loss is primarily due to the lower account fee revenue
and the increase in insurance-related claims experienced this
quarter attributed to the second wave of the pandemic. Our
operating loss margin for Q4 2021 and 2020 was (26.5%) and (11.6%),
respectively.
Technology
Segment revenue was $4.9 million in Q4 2021, up
108%, compared with Q4 2020, and up 129% compared with Q3 2021 on a
constant currency basis. Segment revenue increased due to a higher
volume of hardware sales from one product line compared to the
prior period. The operating loss for Q4 2021 was impacted by
various non-trading adjustments. Our operating (loss) income margin
for the Technology segment was (7.3%) and 7.0% for Q4 2021 and
2020, respectively.
Corporate/eliminations
Our corporate expenses for Q4 2021 were higher
than Q4 2020 primarily due to an allowance for doubtful loans
receivables of $4.0 million, which was partially offset by the net
reversal of stock-based compensation charges of $0.5 million.
Cash flow and liquidity
At June 30, 2021, our cash and cash equivalents
were $198.6 million and comprised of U.S. dollar-denominated
balances of $169.8 million, ZAR-denominated balances of ZAR 0.4
billion ($26.5 million), and other currency deposits, primarily
Botswana pula, of $2.3 million, all amounts translated at exchange
rates applicable as of June 30, 2021. 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, receipt of proceeds related to the disposal of our
interest in Bank Frick 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 Q4 2021 was impacted by the cash
losses incurred by our operations. Capital expenditures for Q4 2021
and 2020 were $0.3 million and $1.4 million, respectively.
Conference Call
We will host a conference call to review these
results on September 14, 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 September 14, 2021, conference call by
navigating to
https://www.diamondpass.net/9817456.
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 and allowances for doubtful
loans to equity-accounted investments.
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 allowance for
doubtful loans to equity-accounted investments, 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 (net of
deferred tax), loss on disposal of equity-accounted investments,
impairment losses related to our equity-accounted investments and
the deferred tax liability reversal related to the impairment of
the equity-accounted investment, and fiscal 2020 also includes an
termination fee paid to cancel the Bank Frick option, impairment
losses related to our equity-accounted investments, the gain
related to the disposal of our Korean business, the gain related to
the disposal of FIHRST, the loss related to the deconsolidation of
CPS, and interest related to SASSA implementation costs refund.
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, loss on disposal of equity-accounted
investments, the gain related to the disposal of our Korean
business, the 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 leading financial technology company
that utilizes its proprietary banking and payment technology to
deliver on its mission of financial inclusion through the
distribution of low-cost financial and value-added services to
underserved consumers and small businesses in Southern Africa,
which represents a significant segment of these economies. The
Company also provides transaction processing services, including
being a payment processor and bill payment platform in South
Africa. Net1 leverages its strategic investments 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
HoldtCo-Market Leader | MD – BCWPhone: +27-82-610-0650Email:
Bridget.vonholdt@bcw-global.com
NET 1 UEPS TECHNOLOGIES, INC. |
Condensed Consolidated Statements of
Operations |
|
|
|
|
|
|
|
|
Unaudited |
|
(A) |
|
|
|
|
|
|
|
|
Three months ended |
|
Year ended |
|
|
|
|
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
(as restated)(R) |
|
|
|
(as restated)(R) |
|
|
|
|
|
|
|
|
(In thousands) |
|
(In thousands) |
REVENUE |
|
$ |
34,517 |
|
|
$ |
24,551 |
|
|
$ |
130,786 |
|
|
$ |
144,299 |
|
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold, IT processing, servicing and support |
|
|
22,353 |
|
|
|
20,973 |
|
|
|
96,248 |
|
|
|
102,308 |
|
|
Selling, general
and administration |
|
|
24,546 |
|
|
|
15,762 |
|
|
|
84,063 |
|
|
|
75,256 |
|
|
Depreciation and
amortization |
|
|
1,218 |
|
|
|
996 |
|
|
|
4,347 |
|
|
|
4,647 |
|
|
Impairment
loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6,336 |
|
OPERATING
LOSS |
|
|
(13,600 |
) |
|
|
(13,180 |
) |
|
|
(53,872 |
) |
|
|
(44,248 |
) |
CHANGE IN FAIR
VALUE OF EQUITY SECURITIES |
|
|
23,362 |
|
|
|
- |
|
|
|
49,304 |
|
|
|
- |
|
LOSS ON DISPOSAL
OF EQUITY-ACCOUNTED INVESTMENT - BANK FRICK |
|
|
- |
|
|
|
- |
|
|
|
472 |
|
|
|
- |
|
LOSS ON DISPOSAL
OF EQUITY-ACCOUNTED INVESTMENT |
|
|
- |
|
|
|
- |
|
|
|
13 |
|
|
|
- |
|
GAIN ON DISPOSAL
OF FIHRST |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
9,743 |
|
LOSS ON DISPOSAL
OF DNI |
|
|
- |
|
|
|
1,010 |
|
|
|
- |
|
|
|
1,010 |
|
LOSS ON
DECONSOLIDATION OF CPS |
|
|
- |
|
|
|
7,148 |
|
|
|
- |
|
|
|
7,148 |
|
TERMINATION FEE
PAID TO BANK FRICK |
|
|
- |
|
|
|
17,517 |
|
|
|
- |
|
|
|
17,517 |
|
INTEREST
INCOME |
|
|
482 |
|
|
|
790 |
|
|
|
2,416 |
|
|
|
2,805 |
|
INTEREST
EXPENSE |
|
|
814 |
|
|
|
1,279 |
|
|
|
2,982 |
|
|
|
7,641 |
|
NET INCOME (LOSS)
BEFORE INCOME TAX EXPENSE |
|
|
9,430 |
|
|
|
(39,344 |
) |
|
|
(5,619 |
) |
|
|
(65,016 |
) |
INCOME TAX
EXPENSE |
|
|
3,011 |
|
|
|
339 |
|
|
|
7,560 |
|
|
|
2,656 |
|
NET INCOME (LOSS)
BEFORE (LOSS) EARNINGS FROM EQUITY-ACCOUNTED INVESTMENTS |
|
|
6,419 |
|
|
|
(39,683 |
) |
|
|
(13,179 |
) |
|
|
(67,672 |
) |
(LOSS) EARNINGS
FROM EQUITY-ACCOUNTED INVESTMENTS |
|
|
(4,780 |
) |
|
|
1,082 |
|
|
|
(24,878 |
) |
|
|
(29,542 |
) |
NET INCOME (LOSS)
FROM CONTINUING OPERATIONS |
|
|
1,639 |
|
|
|
(38,601 |
) |
|
|
(38,057 |
) |
|
|
(97,214 |
) |
NET INCOME FROM
DISCONTINUED OPERATIONS |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6,402 |
|
(LOSS) GAIN FROM
DISPOSAL OF DISCONTINUED OPERATION, net of tax |
|
|
- |
|
|
|
(279 |
) |
|
|
- |
|
|
|
12,454 |
|
NET INCOME
(LOSS) |
|
|
1,639 |
|
|
|
(38,880 |
) |
|
|
(38,057 |
) |
|
|
(78,358 |
) |
NET INCOME (LOSS)
ATTRIBUTABLE TO NET1 |
|
|
1,639 |
|
|
|
(38,880 |
) |
|
|
(38,057 |
) |
|
|
(78,358 |
) |
|
Continuing |
|
|
1,639 |
|
|
|
(38,601 |
) |
|
|
(38,057 |
) |
|
|
(97,214 |
) |
|
Discontinued |
|
$ |
- |
|
|
$ |
(279 |
) |
|
$ |
- |
|
|
$ |
18,856 |
|
Net
earnings (loss) per share, in United States dollars: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) attributable to Net1 shareholders |
|
$ |
0.03 |
|
|
$ |
(0.68 |
) |
|
$ |
(0.67 |
) |
|
$ |
(1.37 |
) |
|
Continuing |
|
$ |
0.03 |
|
|
$ |
(0.68 |
) |
|
$ |
(0.67 |
) |
|
$ |
(1.70 |
) |
|
Discontinued |
|
$ |
- |
|
|
$ |
(0.00 |
) |
|
$ |
- |
|
|
$ |
0.33 |
|
Diluted earnings
(loss) attributable to Net1 shareholders |
|
$ |
0.03 |
|
|
$ |
(0.69 |
) |
|
$ |
(0.67 |
) |
|
$ |
(1.37 |
) |
|
Continuing |
|
$ |
0.03 |
|
|
$ |
(0.69 |
) |
|
$ |
(0.67 |
) |
|
$ |
(1.70 |
) |
|
Discontinued |
|
$ |
- |
|
|
$ |
(0.00 |
) |
|
$ |
- |
|
|
$ |
0.33 |
|
(R) 2020 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 twelve months ended June 30, 2020, has been restated
with the effect of decreasing revenue by $1.4 million and $6.7
million, respectively.(A) Derived from audited consolidated
financial statements.
NET 1 UEPS TECHNOLOGIES, INC. |
Consolidated Balance Sheets |
|
|
|
|
|
|
(A) |
|
(A) |
|
|
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
2021 |
|
2020 |
|
|
|
|
|
|
(In thousands, except share data) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
CURRENT
ASSETS |
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
198,572 |
|
|
$ |
217,671 |
|
|
Restricted
cash |
|
25,193 |
|
|
|
14,814 |
|
|
Accounts
receivable, net of allowance of - 2021: $267; 2020: $253 and other
receivables |
|
26,583 |
|
|
|
43,068 |
|
|
Finance loans
receivable, net of allowance of - 2021: $2,349; 2020: $7,658 |
|
21,142 |
|
|
|
15,879 |
|
|
Inventory |
|
22,361 |
|
|
|
19,860 |
|
|
|
Total current
assets before settlement assets |
|
293,851 |
|
|
|
311,292 |
|
|
|
|
Settlement
assets |
|
466 |
|
|
|
8,014 |
|
|
|
|
|
Total current assets |
|
294,317 |
|
|
|
319,306 |
|
PROPERTY, PLANT
AND EQUIPMENT, net of accumulated depreciation of - 2021: $38,535;
2020: $29,524 |
|
7,492 |
|
|
|
6,656 |
|
OPERATING LEASE
RIGHT-OF-USE |
|
4,519 |
|
|
|
5,395 |
|
EQUITY-ACCOUNTED
INVESTMENTS |
|
10,004 |
|
|
|
65,836 |
|
GOODWILL |
|
29,153 |
|
|
|
24,169 |
|
INTANGIBLE ASSETS,
net of accumulated amortization of - 2021: $16,403; 2020:
$27,325 |
|
357 |
|
|
|
612 |
|
DEFERRED INCOME
TAXES |
|
622 |
|
|
|
358 |
|
OTHER LONG-TERM
ASSETS, including reinsurance assets |
|
81,866 |
|
|
|
31,346 |
|
TOTAL
ASSETS |
|
428,330 |
|
|
|
453,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
|
|
Short-term credit
facilities for ATM funding |
|
14,245 |
|
|
|
14,814 |
|
|
Accounts
payable |
|
7,113 |
|
|
|
6,287 |
|
|
Other
payables |
|
27,588 |
|
|
|
23,779 |
|
|
Operating lease
liability - current |
|
2,822 |
|
|
|
2,251 |
|
|
Income taxes
payable |
|
256 |
|
|
|
16,157 |
|
|
|
Total current
liabilities before settlement obligations |
|
52,024 |
|
|
|
63,288 |
|
|
|
|
Settlement
obligations |
|
466 |
|
|
|
8,015 |
|
|
|
|
|
Total current
liabilities |
|
52,490 |
|
|
|
71,303 |
|
DEFERRED INCOME
TAXES |
|
10,415 |
|
|
|
1,859 |
|
OPERATING LEASE
LIABILITY - LONG TERM |
|
1,890 |
|
|
|
3,312 |
|
OTHER LONG-TERM
LIABILITIES, including insurance policy liabilities |
|
2,576 |
|
|
|
2,012 |
|
TOTAL
LIABILITIES |
|
67,371 |
|
|
|
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: 2021: $56,716,620; 2020:
$57,118,925 |
|
80 |
|
|
|
80 |
|
PREFERRED
STOCK |
|
|
|
|
|
|
Authorized shares:
50,000,000 with $0.001 par value; |
|
|
|
|
|
|
Issued and
outstanding shares, net of treasury: 2021: -; 2020: - |
|
- |
|
|
|
- |
|
ADDITIONAL
PAID-IN-CAPITAL |
|
301,959 |
|
|
|
301,489 |
|
TREASURY SHARES,
AT COST: 2021: $24,891,292; 2020: $24,891,292 |
|
(286,951 |
) |
|
|
(286,951 |
) |
ACCUMULATED OTHER
COMPREHENSIVE LOSS |
|
(145,721 |
) |
|
|
(169,075 |
) |
RETAINED
EARNINGS |
|
406,613 |
|
|
|
444,670 |
|
TOTAL NET1
EQUITY |
|
275,980 |
|
|
|
290,213 |
|
NON-CONTROLLING
INTEREST |
|
- |
|
|
|
- |
|
TOTAL
EQUITY |
|
275,980 |
|
|
|
290,213 |
|
TOTAL
LIABILITIES, REDEEMABLE COMMON STOCK AND SHAREHOLDERS’
EQUITY |
$ |
428,330 |
|
|
$ |
453,678 |
|
(A) Derived from audited consolidated financial statements.
NET 1 UEPS TECHNOLOGIES, INC. |
Consolidated Statements of Cash Flows |
|
|
|
Unaudited |
|
(A) |
|
|
|
Three months ended |
|
Year ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
$ |
1,639 |
|
|
$ |
(38,880 |
) |
|
$ |
(38,057 |
) |
|
$ |
(78,358 |
) |
|
Depreciation and
amortization |
|
1,218 |
|
|
|
996 |
|
|
|
4,347 |
|
|
|
13,299 |
|
|
Impairment
loss |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6,336 |
|
|
Movement in
allowance for doubtful accounts receivable |
|
(803 |
) |
|
|
383 |
|
|
|
110 |
|
|
|
743 |
|
|
Loss (Earnings)
from equity-accounted investments |
|
4,780 |
|
|
|
(1,082 |
) |
|
|
24,878 |
|
|
|
29,542 |
|
|
Movement in
allowance for doubtful loans |
|
4,000 |
|
|
|
316 |
|
|
|
4,739 |
|
|
|
1,035 |
|
|
Inventory net
realizable value adjustment |
|
- |
|
|
|
1,298 |
|
|
|
- |
|
|
|
1,298 |
|
|
Change in fair
value of equity securities |
|
(23,362 |
) |
|
|
- |
|
|
|
(49,304 |
) |
|
|
- |
|
|
Fair value
adjustment related to financial liabilities |
|
(361 |
) |
|
|
413 |
|
|
|
840 |
|
|
|
(340 |
) |
|
Interest
payable |
|
45 |
|
|
|
3 |
|
|
|
(1 |
) |
|
|
1,758 |
|
|
Loss on disposal
of equity-accounted investment - Bank Frick |
|
- |
|
|
|
- |
|
|
|
472 |
|
|
|
- |
|
|
Loss on disposal
of equity-accounted investment |
|
- |
|
|
|
- |
|
|
|
13 |
|
|
|
- |
|
|
Gain on disposal
of Net1 Korea |
|
- |
|
|
|
279 |
|
|
|
- |
|
|
|
(12,454 |
) |
|
Gain on disposal
of FIHRST |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(9,743 |
) |
|
Loss on
deconsolidation of CPS |
|
- |
|
|
|
7,148 |
|
|
|
- |
|
|
|
7,148 |
|
|
Loss on disposal
of equity-accounted investment - DNI |
|
- |
|
|
|
1,010 |
|
|
|
- |
|
|
|
1,010 |
|
|
(Profit) Loss on
disposal of property, plant and equipment |
|
(120 |
) |
|
|
(32 |
) |
|
|
480 |
|
|
|
(127 |
) |
|
Stock-based
compensation charge, net |
|
(532 |
) |
|
|
558 |
|
|
|
344 |
|
|
|
1,728 |
|
|
Dividends received
from equity accounted investments |
|
69 |
|
|
|
1,424 |
|
|
|
194 |
|
|
|
3,549 |
|
|
(Increase)
Decrease in accounts receivable and finance loans receivable |
|
(479 |
) |
|
|
(4,879 |
) |
|
|
3,751 |
|
|
|
8,818 |
|
|
(Increase)
Decrease in inventory |
|
(1,363 |
) |
|
|
(1,292 |
) |
|
|
1,279 |
|
|
|
(19,328 |
) |
|
Increase
(Decrease) in accounts payable and other payables |
|
4,058 |
|
|
|
4,521 |
|
|
|
(335 |
) |
|
|
(139 |
) |
|
Decrease in taxes
payable |
|
(1,712 |
) |
|
|
(340 |
) |
|
|
(17,210 |
) |
|
|
(1,427 |
) |
|
Increase
(Decrease) in deferred taxes |
|
4,665 |
|
|
|
225 |
|
|
|
5,089 |
|
|
|
(393 |
) |
|
|
Net cash used in operating activities |
|
(8,258 |
) |
|
|
(27,931 |
) |
|
|
(58,371 |
) |
|
|
(46,045 |
) |
Cash flows
from investing activities |
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures |
|
(338 |
) |
|
|
(1,445 |
) |
|
|
(4,285 |
) |
|
|
(5,938 |
) |
Proceeds from
disposal of property, plant and equipment |
|
226 |
|
|
|
216 |
|
|
|
571 |
|
|
|
578 |
|
Proceeds from
disposal of equity-accounted investment - Bank Frick |
|
- |
|
|
|
- |
|
|
|
18,568 |
|
|
|
- |
|
Proceeds from
disposal of Net1 Korea, net of cash disposed |
|
- |
|
|
|
- |
|
|
|
20,114 |
|
|
|
192,619 |
|
Transaction costs
paid related to disposal of Net1 Korea |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(7,458 |
) |
Proceeds from
disposal of DNI as equity-accounted investment |
|
- |
|
|
|
42,477 |
|
|
|
6,010 |
|
|
|
42,477 |
|
Transaction costs
paid related to disposal of DNI as equity-accounted investment |
|
- |
|
|
|
(1,010 |
) |
|
|
- |
|
|
|
(1,010 |
) |
Proceeds from
disposal of FIHRST, net of cash disposed |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
10,895 |
|
Deconsolidation of
CPS - cash disposed |
|
- |
|
|
|
(328 |
) |
|
|
- |
|
|
|
(328 |
) |
Investment in
equity-accounted investments |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,500 |
) |
Loan to
equity-accounted investment |
|
- |
|
|
|
(519 |
) |
|
|
(1,238 |
) |
|
|
(1,230 |
) |
Repayment of loans
by equity-accounted investments |
|
- |
|
|
|
- |
|
|
|
134 |
|
|
|
4,268 |
|
Net change in
settlement assets |
|
1,711 |
|
|
|
18 |
|
|
|
7,901 |
|
|
|
(9,256 |
) |
|
Net cash
provided by investing activities |
|
1,599 |
|
|
|
39,409 |
|
|
|
47,775 |
|
|
|
223,117 |
|
Cash flows
from financing activities |
|
|
|
|
|
|
|
|
|
|
|
Proceeds from bank
overdraft |
|
98,324 |
|
|
|
104,490 |
|
|
|
360,083 |
|
|
|
689,763 |
|
Repayment of bank
overdraft |
|
(97,137 |
) |
|
|
(142,682 |
) |
|
|
(365,440 |
) |
|
|
(747,935 |
) |
Proceeds from
issue of shares |
|
- |
|
|
|
- |
|
|
|
53 |
|
|
|
- |
|
Proceeds from
disgorgement of shareholders' short-swing profits |
|
- |
|
|
|
- |
|
|
|
124 |
|
|
|
- |
|
Long-term
borrowings utilized |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
14,798 |
|
Repayment of
long-term borrowings |
|
- |
|
|
|
(3,190 |
) |
|
|
- |
|
|
|
(14,503 |
) |
Guarantee fee |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(148 |
) |
Finance lease
capital repayments |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(69 |
) |
Net change in
settlement obligations |
|
(1,711 |
) |
|
|
(18 |
) |
|
|
(7,901 |
) |
|
|
9,256 |
|
|
Net cash
used in financing activities |
|
(524 |
) |
|
|
(41,400 |
) |
|
|
(13,081 |
) |
|
|
(48,838 |
) |
Effect of exchange
rate changes on cash |
|
4,118 |
|
|
|
1,747 |
|
|
|
14,957 |
|
|
|
(17,260 |
) |
Net
decrease in cash, cash equivalents and restricted
cash |
|
(3,065 |
) |
|
|
(28,175 |
) |
|
|
(8,720 |
) |
|
|
110,974 |
|
Cash, cash
equivalents and restricted cash – beginning of period |
|
226,830 |
|
|
|
260,660 |
|
|
|
232,485 |
|
|
|
121,511 |
|
Cash, cash
equivalents and restricted cash – end of period |
$ |
223,765 |
|
|
$ |
232,485 |
|
|
$ |
223,765 |
|
|
$ |
232,485 |
|
(A) Derived from audited consolidated financial
statements.
Net 1 UEPS Technologies, Inc.
Attachment A
Operating segment revenue, operating
(loss) income and operating (loss) margin:
Three months ended June 30, 2021 and
2020 and March 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change - actual |
Change –constantexchange
rate(1) |
|
|
|
|
|
|
|
|
Q4 '21 |
|
Q4 '20 |
|
Q3 '21 |
Q4 '21 vs Q4
'20 |
Q4 '21 vs Q3
'21 |
Q4 '21 vs Q4
'20 |
Q4 '21 vs Q3
'21 |
Key segmental data, in ’000, except margins |
|
|
|
(as restated)(A) |
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing |
|
$ |
21,192 |
|
|
$ |
16,391 |
|
|
$ |
18,747 |
|
29 |
% |
13 |
% |
6 |
% |
7 |
% |
|
|
All Other |
|
|
21,192 |
|
|
|
15,470 |
|
|
|
18,741 |
|
37 |
% |
13 |
% |
12 |
% |
7 |
% |
|
|
IPG |
|
|
- |
|
|
|
921 |
|
|
|
6 |
|
nm |
nm |
nm |
nm |
|
Financial
services |
|
|
10,830 |
|
|
|
8,751 |
|
|
|
10,192 |
|
24 |
% |
6 |
% |
1 |
% |
1 |
% |
|
Technology |
|
|
4,905 |
|
|
|
1,932 |
|
|
|
2,026 |
|
154 |
% |
142 |
% |
108 |
% |
129 |
% |
|
|
|
Subtotal:
Operating segments |
|
|
36,927 |
|
|
|
27,074 |
|
|
|
30,965 |
|
36 |
% |
19 |
% |
12 |
% |
13 |
% |
|
|
|
Intersegment
eliminations |
|
|
(2,410 |
) |
|
|
(2,523 |
) |
|
|
(2,137 |
) |
(4 |
%) |
13 |
% |
(22 |
%) |
7 |
% |
|
|
|
|
Consolidated revenue |
|
$ |
34,517 |
|
|
$ |
24,551 |
|
|
$ |
28,828 |
|
41 |
% |
20 |
% |
15 |
% |
13 |
% |
Operating
(loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing |
|
$ |
(5,785 |
) |
|
$ |
(10,089 |
) |
|
$ |
(10,816 |
) |
(43 |
%) |
(47 |
%) |
(53 |
%) |
(49 |
%) |
|
|
All Other |
|
|
(5,809 |
) |
|
|
(5,809 |
) |
|
|
(7,484 |
) |
- |
|
(22 |
%) |
(18 |
%) |
(26 |
%) |
|
|
IPG |
|
|
24 |
|
|
|
(4,280 |
) |
|
|
(3,332 |
) |
nm |
nm |
nm |
nm |
|
Financial
services |
|
|
(2,875 |
) |
|
|
(1,016 |
) |
|
|
(2,111 |
) |
183 |
% |
36 |
% |
132 |
% |
29 |
% |
|
Technology |
|
|
(357 |
) |
|
|
136 |
|
|
|
131 |
|
nm |
nm |
nm |
nm |
|
|
|
Subtotal:
Operating segments |
|
|
(9,017 |
) |
|
|
(10,969 |
) |
|
|
(12,796 |
) |
(18 |
%) |
(30 |
%) |
(33 |
%) |
(33 |
%) |
|
|
|
Corporate/Eliminations |
|
|
(4,583 |
) |
|
|
(2,211 |
) |
|
|
(1,496 |
) |
107 |
% |
206 |
% |
70 |
% |
190 |
% |
|
|
|
|
|
Consolidated operating loss |
|
$ |
(13,600 |
) |
|
$ |
(13,180 |
) |
|
$ |
(14,292 |
) |
3 |
% |
(5 |
%) |
(15 |
%) |
(10 |
%) |
Operating
(loss) income margin (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing |
|
|
(27.3 |
%) |
|
|
(61.6 |
%) |
|
|
(57.7 |
%) |
|
|
|
|
|
|
IPG |
|
|
(27.4 |
%) |
|
|
(37.6 |
%) |
|
|
(39.9 |
%) |
|
|
|
|
|
|
All Other |
|
|
- |
|
|
|
(464.7 |
%) |
|
|
nm |
|
|
|
|
|
Financial
services |
|
|
(26.5 |
%) |
|
|
(11.6 |
%) |
|
|
(20.7 |
%) |
|
|
|
|
|
Technology |
|
|
(7.3 |
%) |
|
|
7.0 |
% |
|
|
6.5 |
% |
|
|
|
|
|
|
|
Consolidated operating margin |
|
|
(39.4 |
%) |
|
|
(53.7 |
%) |
|
|
(49.6 |
%) |
|
|
|
|
(A) – 2020 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 Q4 2021 also prevailed during
Q4 2020 and Q3 2021.
Twelve months ended June 30, 2021 and
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change - actual |
Change – constant exchange
rate(1) |
|
|
|
|
|
|
|
|
F2021 |
|
F2020 |
|
F2021
vsF2020 |
F2021 vs
F2020 |
Key segmental data, in ’000, except margins |
|
|
|
(as restated)(A) |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
Processing |
|
$ |
82,435 |
|
|
$ |
91,786 |
|
|
(10 |
%) |
(20 |
%) |
|
|
All other |
|
|
80,742 |
|
|
|
88,476 |
|
|
(9 |
%) |
(18 |
%) |
|
|
IPG |
|
|
1,693 |
|
|
|
3,310 |
|
|
(49 |
%) |
(54 |
%) |
|
Financial
services |
|
|
38,996 |
|
|
|
46,870 |
|
|
(17 |
%) |
(26 |
%) |
|
Technology |
|
|
17,751 |
|
|
|
18,071 |
|
|
(2 |
%) |
(12 |
%) |
|
|
|
Subtotal:
Operating segments |
|
|
139,182 |
|
|
|
156,727 |
|
|
(11 |
%) |
(21 |
%) |
|
|
|
Intersegment
eliminations |
|
|
(8,396 |
) |
|
|
(12,428 |
) |
|
(32 |
%) |
(40 |
%) |
|
|
|
|
Consolidated revenue |
|
|
130,786 |
|
|
|
144,299 |
|
|
(9 |
%) |
(19 |
%) |
Operating
(loss) income: |
|
|
|
|
|
|
|
|
|
|
Processing |
|
$ |
(34,283 |
) |
|
$ |
(33,836 |
) |
|
1 |
% |
(9 |
%) |
|
|
IPG |
|
|
(23,556 |
) |
|
|
(21,488 |
) |
|
10 |
% |
nm |
|
|
All other |
|
|
(10,727 |
) |
|
|
(12,348 |
) |
|
(13 |
%) |
nm |
|
Financial
services |
|
|
(8,429 |
) |
|
|
(3,621 |
) |
|
133 |
% |
108 |
% |
|
Technology |
|
|
2,627 |
|
|
|
2,815 |
|
|
(7 |
%) |
(17 |
%) |
|
|
|
Subtotal:
Operating segments |
|
|
(40,085 |
) |
|
|
(34,642 |
) |
|
16 |
% |
4 |
% |
|
|
|
Corporate/Eliminations |
|
|
(13,787 |
) |
|
|
(9,606 |
) |
|
44 |
% |
28 |
% |
|
|
|
|
|
Consolidated operating loss |
|
|
(53,872 |
) |
|
|
(44,248 |
) |
|
22 |
% |
9 |
% |
Operating
(loss) income margin (%) |
|
|
|
|
|
|
|
|
|
|
Processing |
|
|
(41.6 |
%) |
|
|
(36.9 |
%) |
|
|
|
|
|
All other |
|
|
(29.2 |
%) |
|
|
(24.3 |
%) |
|
|
|
|
|
IPG |
|
|
(633.6 |
%) |
|
|
(373.1 |
%) |
|
|
|
|
Financial
services |
|
|
(21.6 |
%) |
|
|
(7.7 |
%) |
|
|
|
|
Technology |
|
|
14.8 |
% |
|
|
15.6 |
% |
|
|
|
|
|
|
Consolidated operating margin |
|
|
(41.2 |
%) |
|
|
(30.7 |
%) |
|
|
|
(A) – 2020 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 (loss) earnings
from our equity-accounted investments:
|
|
|
Q4 2021 |
|
|
Q4 2020 |
|
% change |
|
|
F2021 |
|
|
F2020 |
|
% change |
Finbond |
$ |
(1,742 |
) |
|
$ |
1,349 |
|
|
nm |
|
$ |
(22,009 |
) |
|
$ |
1,840 |
|
|
nm |
|
Share of net (loss)
income |
|
(1,742 |
) |
|
|
1,349 |
|
|
nm |
|
|
(4,359 |
) |
|
|
1,840 |
|
|
nm |
|
Impairment |
|
- |
|
|
|
- |
|
|
nm |
|
|
(17,650 |
) |
|
|
- |
|
|
nm |
Bank Frick |
|
- |
|
|
|
651 |
|
|
nm |
|
|
1,156 |
|
|
|
(17,273 |
) |
|
nm |
|
Share of net income |
|
- |
|
|
|
651 |
|
|
nm |
|
|
1,156 |
|
|
|
1,421 |
|
|
(19 |
%) |
|
Amortization of intangible
assets, net of deferred tax |
|
- |
|
|
|
- |
|
|
nm |
|
|
- |
|
|
|
(433 |
) |
|
nm |
|
Impairment |
|
- |
|
|
|
- |
|
|
nm |
|
|
- |
|
|
|
(18,261 |
) |
|
nm |
DNI |
|
- |
|
|
|
- |
|
|
nm |
|
|
- |
|
|
|
(9,744 |
) |
|
nm |
|
Share of net income |
|
- |
|
|
|
- |
|
|
nm |
|
|
- |
|
|
|
4,676 |
|
|
nm |
|
Amortization of intangible
assets, net of deferred tax |
|
- |
|
|
|
- |
|
|
nm |
|
|
- |
|
|
|
(1,350 |
) |
|
nm |
|
Impairment |
|
- |
|
|
|
- |
|
|
nm |
|
|
- |
|
|
|
(13,070 |
) |
|
nm |
Other |
|
(3,038 |
) |
|
|
(918 |
) |
|
231 |
% |
|
|
(4,025 |
) |
|
|
(4,365 |
) |
|
(8 |
%) |
|
Share of net loss |
|
(92 |
) |
|
|
(918 |
) |
|
(90 |
%) |
|
|
(531 |
) |
|
|
(1,865 |
) |
|
(72 |
%) |
|
Impairment |
|
(2,946 |
) |
|
|
- |
|
|
nm |
|
|
(3,494 |
) |
|
|
(2,500 |
) |
|
40 |
% |
|
(Loss) Earnings from
equity-accounted investments |
$ |
(4,780 |
) |
|
$ |
1,082 |
|
|
nm |
|
$ |
(24,878 |
) |
|
$ |
(29,542 |
) |
|
(16 |
%) |
Net 1 UEPS Technologies,
Inc.
Attachment B
Reconciliation of GAAP operating loss to
EBITDA (loss) and adjusted EBITDA (loss):
Three months ended June, 30, 2021 and
2021, and March 31, 2021; and twelve months ended June 30, 2021 and
2020
|
|
|
|
|
|
|
|
|
Year ended June 30, |
|
|
|
|
|
|
|
Q4 2021 |
|
Q4 2020 |
|
Q3 2021 |
|
2021 |
|
2020 |
Operating
loss - GAAP |
(13,600 |
) |
|
(13,180 |
) |
|
(14,292 |
) |
|
(53,872 |
) |
|
(44,248 |
) |
|
Depreciation and
amortization |
1,218 |
|
|
996 |
|
|
1,132 |
|
|
4,347 |
|
|
4,647 |
|
|
Impairment
loss |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
6,336 |
|
|
|
Negative
EBITDA |
(12,382 |
) |
|
(12,184 |
) |
|
(13,160 |
) |
|
(49,525 |
) |
|
(33,265 |
) |
|
|
|
Allowance for
doubtful loans receivables from equity-accounted investments |
4,000 |
|
|
316 |
|
|
- |
|
|
4,739 |
|
|
1,035 |
|
|
|
|
Transaction
costs |
174 |
|
|
- |
|
|
337 |
|
|
1,879 |
|
|
2,876 |
|
|
|
|
|
Adjusted EBITDA loss |
(8,208 |
) |
|
(11,868 |
) |
|
(12,823 |
) |
|
(42,907 |
) |
|
(29,354 |
) |
Reconciliation of GAAP net income (loss)
and earnings (loss) per share, basic, to fundamental net loss and
loss per share, basic:
Three months ended June 30, 2021 and
2020
|
Net income (loss)(USD '000) |
|
E(L)PS, basic (USD) |
|
Net income (loss)(ZAR '000) |
|
E(L)PS, basic (ZAR) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
GAAP |
1,639 |
|
|
(38,880 |
) |
|
0.03 |
|
|
(0.68 |
) |
|
23,223 |
|
|
(671,885 |
) |
|
0.41 |
|
|
(11.76 |
) |
Change in fair value of equity
securities, net |
(18,456 |
) |
|
- |
|
|
|
|
|
|
(261,497 |
) |
|
- |
|
|
|
|
|
Allowance for doubtful EMI
loans receivable |
4,000 |
|
|
316 |
|
|
|
|
|
|
56,675 |
|
|
5,461 |
|
|
|
|
|
Impairment of equity method
investment |
2,946 |
|
|
- |
|
|
|
|
|
|
41,741 |
|
|
- |
|
|
|
|
|
Stock-based compensation
charge |
(532 |
) |
|
558 |
|
|
|
|
|
|
(7,538 |
) |
|
9,643 |
|
|
|
|
|
Transaction costs |
174 |
|
|
- |
|
|
|
|
|
|
2,465 |
|
|
- |
|
|
|
|
|
Intangible asset amortization,
net |
70 |
|
|
58 |
|
|
|
|
|
|
990 |
|
|
990 |
|
|
|
|
|
Termination fee paid to cancel
Bank Frick option |
- |
|
|
17,517 |
|
|
|
|
|
|
- |
|
|
302,711 |
|
|
|
|
|
Loss on deconsolidation of
CPS |
- |
|
|
7,148 |
|
|
|
|
|
|
- |
|
|
123,525 |
|
|
|
|
|
Loss on sale of DNI |
- |
|
|
1,010 |
|
|
|
|
|
|
- |
|
|
17,454 |
|
|
|
|
|
Interest related to SASSA
implementation costs refund |
- |
|
|
298 |
|
|
|
|
|
|
- |
|
|
5,156 |
|
|
|
|
|
Fundamental |
(10,159 |
) |
|
(11,975 |
) |
|
(0.18 |
) |
|
(0.21 |
) |
|
(143,941 |
) |
|
(206,945 |
) |
|
(2.54 |
) |
|
(3.62 |
) |
Twelve months ended June 30, 2021 and
2020
|
Net (loss) income (USD '000) |
|
(L)EPS, basic (USD) |
|
Net (loss) income (ZAR '000) |
|
(L)EPS, basic (ZAR) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
GAAP |
(38,057 |
) |
|
(78,358 |
) |
|
(0.67 |
) |
|
(1.38 |
) |
|
(598,111 |
) |
|
(1,376,640 |
) |
|
(10.54 |
) |
|
(24.25 |
) |
Change in fair value of equity
securities, net |
(38,950 |
) |
|
- |
|
|
|
|
|
|
(612,149 |
) |
|
- |
|
|
|
|
|
Impairment of equity method
investments |
21,144 |
|
|
32,084 |
|
|
|
|
|
|
327,140 |
|
|
563,672 |
|
|
|
|
|
Allowance for doubtful EMI
loans receivable |
4,739 |
|
|
1,035 |
|
|
|
|
|
|
74,479 |
|
|
18,184 |
|
|
|
|
|
Transaction costs |
1,879 |
|
|
2,876 |
|
|
|
|
|
|
29,531 |
|
|
50,527 |
|
|
|
|
|
Reversal of deferred taxes
relatedto impairment of equity methodinvestment |
(1,353 |
) |
|
- |
|
|
|
|
|
|
(22,633 |
) |
|
- |
|
|
|
|
|
Loss on disposal of
equity-accountedinvestment - Bank Frick |
472 |
|
|
- |
|
|
|
|
|
|
7,418 |
|
|
- |
|
|
|
|
|
Stock-based compensation
charge |
344 |
|
|
2,607 |
|
|
|
|
|
|
5,406 |
|
|
45,801 |
|
|
|
|
|
Intangible asset amortization,
net |
253 |
|
|
3,805 |
|
|
|
|
|
|
3,961 |
|
|
66,835 |
|
|
|
|
|
Loss on sale of equity method
investment |
13 |
|
|
- |
|
|
|
|
|
|
204 |
|
|
- |
|
|
|
|
|
Termination fee paid to cancel
Bank Frick option |
- |
|
|
(17,517 |
) |
|
|
|
|
|
- |
|
|
(307,749 |
) |
|
|
|
|
Gain on discontinued
operation |
- |
|
|
(12,454 |
) |
|
|
|
|
|
- |
|
|
(218,799 |
) |
|
|
|
|
Gain on disposal of
FIHRST |
- |
|
|
(9,743 |
) |
|
|
|
|
|
- |
|
|
(171,171 |
) |
|
|
|
|
Loss on deconsolidation of
CPS |
- |
|
|
7,148 |
|
|
|
|
|
|
- |
|
|
125,580 |
|
|
|
|
|
Impairment loss |
- |
|
|
6,336 |
|
|
|
|
|
|
- |
|
|
111,314 |
|
|
|
|
|
Intangible asset amortization,
netrelated to equity accountedinvestments |
- |
|
|
1,783 |
|
|
|
|
|
|
- |
|
|
31,325 |
|
|
|
|
|
Interest related to
SASSAimplementation costs refund |
- |
|
|
1,361 |
|
|
|
|
|
|
- |
|
|
23,909 |
|
|
|
|
|
Loss on sale of DNI |
- |
|
|
1,010 |
|
|
|
|
|
|
- |
|
|
17,744 |
|
|
|
|
|
Fundamental |
(49,516 |
) |
|
(58,027 |
) |
|
(0.87 |
) |
|
(1.02 |
) |
|
(784,754 |
) |
|
(1,019,468 |
) |
|
(13.82 |
) |
|
(17.96 |
) |
Net 1 UEPS Technologies, Inc.
Attachment C
Reconciliation of net income (loss) used
to calculate earnings (loss) per share basic and diluted and
headline loss per share basic and diluted:
Three months ended June 30, 2021 and
2020
|
|
2021 |
|
2020 |
|
|
|
|
|
Net income (loss)
(USD’000) |
1,639 |
|
|
(38,880 |
) |
Adjustments: |
|
|
|
|
Impairment of equity method investments |
2,946 |
|
|
- |
|
|
Loss on deconsolidation of
CPS |
- |
|
|
7,148 |
|
|
Loss on sale of DNI |
- |
|
|
1,010 |
|
|
Profit on sale of property,
plant and equipment |
(120 |
) |
|
(32 |
) |
|
Tax effects on above |
34 |
|
|
9 |
|
Net income (loss)
used to calculate headline loss (USD’000) |
4,499 |
|
|
(30,745 |
) |
Weighted average
number of shares used to calculate net earnings (loss) per share
basic loss and headline earnings (loss) per share basic loss
(‘000) |
56,678 |
|
|
57,119 |
|
Weighted average
number of shares used to calculate net loss per share diluted
(earnings) loss and headline (earnings) loss per share diluted loss
(‘000) |
56,937 |
|
|
57,119 |
|
Headline earnings
(loss) per share: |
|
|
|
|
Basic, in USD |
0.08 |
|
|
(0.54 |
) |
|
Diluted, in USD |
0.08 |
|
|
(0.54 |
) |
Twelve months ended June 30, 2021 and
2020
|
|
2021 |
|
2020 |
Net loss
(USD’000) |
(38,057 |
) |
|
(78,358 |
) |
Adjustments: |
|
|
|
|
Impairment of equity method investments |
21,144 |
|
|
33,831 |
|
|
Loss on disposal of
equity-accounted investment - Bank Frick |
430 |
|
|
- |
|
|
Gain on disposal of
discontinued operation |
- |
|
|
(12,454 |
) |
|
Gain on disposal of
FIHRST |
- |
|
|
(9,743 |
) |
|
Impairment loss |
- |
|
|
6,336 |
|
|
Loss on deconsolidation of
CPS |
- |
|
|
7,148 |
|
|
Loss on sale of DNI |
- |
|
|
1,010 |
|
|
Loss (Profit) on sale of
property, plant and equipment |
480 |
|
|
(127 |
) |
|
Tax effects on above |
(134 |
) |
|
36 |
|
Net loss used to
calculate headline loss (USD’000) |
(16,137 |
) |
|
(52,321 |
) |
Weighted average
number of shares used to calculate net loss per share basic loss
and headline loss per share basic loss (‘000) |
56,765 |
|
|
56,764 |
|
Weighted average
number of shares used to calculate net loss per share diluted loss
and headline loss per share diluted loss (‘000) |
56,898 |
|
|
56,764 |
|
Headline loss per
share: |
|
|
|
|
Basic, in USD |
(0.28 |
) |
|
(0.92 |
) |
|
Diluted, in USD |
(0.28 |
) |
|
(0.92 |
) |
Calculation of the denominator for headline diluted loss
per share
|
|
|
Q4 2021 |
|
Q4 2020 |
|
F2021 |
|
F2020 |
Basic
weighted-average common shares outstanding and unvested restricted
shares expected to vest under GAAP |
56,678 |
|
57,119 |
|
56,765 |
|
56,764 |
|
Effect of dilutive
securities under GAAP |
259 |
|
- |
|
133 |
|
- |
|
|
Denominator for headline
diluted loss per share |
56,937 |
|
57,119 |
|
56,898 |
|
56,764 |
Weighted average number of shares used to
calculate headline diluted earnings (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 earnings (loss)
per share because we do not use the two-class method to calculate
headline diluted (earnings) loss per share.
Grafico Azioni Net 1 Ueps Technologies (NASDAQ:UEPS)
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Grafico Azioni Net 1 Ueps Technologies (NASDAQ:UEPS)
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