Net 1 UEPS Technologies, Inc. (Nasdaq: UEPS; JSE: NT1) today
released results for the third fiscal quarter ended March 31, 2021.
Recent Developments:
- Net increase of approximately
27,000 EasyPay Everywhere (EPE) account holders;
- Non-cash increase of $10.8 million,
before tax effect, in the fair value of investment in
MobiKwik;
- Sale of entire interest in Bank
Frick for $30 million;
- Reduction of IPG operating loss
from $3.2 million in Q2, 2021, to $1.2 million in Q3, 2021,
excluding the impact of the $3.6 million once-off payment to
terminate all arrangements with Bank Frick and settle all related
liabilities, of which $1.4 million and 2.2 million was expensed
during Q2, 2021 and Q3, 2021, respectively;
- At March 31, 2021, unrestricted
cash of $208 million and no debt;
- Revenue of $28.8 million, a
decrease of 17% from Q3 2020;
- Operating loss of $(14.3)
million;
- GAAP EPS of $(0.11) and Fundamental
EPS of $(0.24); and
- Adjusted EBITDA loss of $(12.8)
million, flat compared to Q2 2021.
“We have made a lot of operational progress over
the past quarter in exiting our loss-making European operations and
preparing the South African operations for significant account
growth,” said Alex Smith, Net1’s interim CEO and CFO. “We are
making progress in our mission of driving financial inclusion for
the underserved market having recently hired a new dynamic, highly
accomplished and experienced CEO of Net1 Southern Africa, Lincoln
Mali, who is well respected and experienced in the South African
financial services and banking industry. Our new strategy, mission
and leadership has also enabled us to attract some amazing new
talent among the senior management ranks,” he concluded.
Summary Financial Metrics
|
Q3 2021 |
|
|
Q3 2020 |
|
|
Q2 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(asrestated)(1) |
|
|
|
|
|
Q3 ’21 vsQ3 ’20 |
|
Q3 ’21 vsQ2 ’21 |
|
Q3 ’21 vsQ3 ’20 |
|
Q3 ’21 vsQ2 ’21 |
|
|
|
|
|
|
(All figures in
USD ‘000s except per share data) |
USD ‘000’s (except per share data) |
|
% change in USD |
|
% change in ZAR |
Revenue |
28,828 |
|
|
34,614 |
|
|
32,305 |
|
|
(17%) |
|
(11%) |
|
(19%) |
|
(14%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
loss |
(14,292 |
) |
|
(14,212 |
) |
|
(15,205 |
) |
|
1% |
|
(6%) |
|
(2%) |
|
(9%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(loss)(2) |
(12,823 |
) |
|
(6,423 |
) |
|
(12,792 |
) |
|
100% |
|
0% |
|
94% |
|
(3%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP (loss)
earnings per share ($) |
(0.11 |
) |
|
(0.61 |
) |
|
(0.08 |
) |
|
(82%) |
|
38% |
|
(82%) |
|
33% |
Continuing |
(0.11 |
) |
|
(0.85 |
) |
|
(0.08 |
) |
|
(87%) |
|
38% |
|
(87%) |
|
33% |
Discontinued |
- |
|
|
0.24 |
|
|
- |
|
|
nm |
|
nm |
|
nm |
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fundamental loss
per share ($)(2) |
(0.24 |
) |
|
(0.11 |
) |
|
(0.24 |
) |
|
118% |
|
- |
|
112% |
|
(3%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully-diluted
shares outstanding (‘000’s) |
56,921 |
|
|
56,803 |
|
|
56,641 |
|
|
0% |
|
0% |
|
nm |
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average period
USD/ ZAR exchange rate |
14.96 |
|
|
15.37 |
|
|
15.47 |
|
|
(3%) |
|
(3%) |
|
nm |
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F2021 |
|
F2020(asrestated)(1) |
|
F2021 vsF2020 |
|
F2021 vsF2020 |
|
|
|
|
|
|
|
|
|
|
(All figures in
USD ‘000s except per share data) |
USD ‘000’s (except per share
data) |
% changein USD |
|
% changein ZAR |
Revenue |
96,269 |
|
|
119,748 |
|
|
(20%) |
|
|
(19%) |
|
|
|
|
|
|
|
|
|
|
GAAP operating
loss |
(40,272 |
) |
|
(31,068 |
) |
|
30% |
|
|
31% |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(loss)(2) |
(35,438 |
) |
|
(17,399 |
) |
|
104% |
|
|
106% |
|
|
|
|
|
|
|
|
|
|
GAAP (loss)
earnings per share ($) |
(0.70 |
) |
|
(0.69 |
) |
|
1% |
|
|
2% |
|
Continuing |
|
(0.70 |
) |
|
(1.03 |
) |
|
(32%) |
|
|
(31%) |
|
Discontinued |
|
- |
|
|
0.34 |
|
|
nm |
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
Fundamental loss
per share ($)(2) |
(0.71 |
) |
|
(0.22 |
) |
|
223% |
|
|
226% |
|
|
|
|
|
|
|
|
|
|
|
|
Fully-diluted
shares outstanding (‘000’s) |
56,895 |
|
|
56,646 |
|
|
0% |
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
Average period
USD/ ZAR exchange rate |
16.12 |
|
|
15.96 |
|
|
1% |
|
|
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 nine months ended March 31, 2020, has
been restated with the effect of decreasing revenue by $1.9 million
and $5.3 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 and loss 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 nine months
ended March 31, 2021, compared to the last four months of the year
ended June 30, 2020. South Africa has been at an adjusted Level 1
since March 1, 2021. On December 28, 2020, the country moved back
to Level 3 restrictions which remained in place through to February
28, 2021. 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 was
more severe than the first wave. The South Africa 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 calendar year. With the winter months approaching, there
are concerns over the potential for a third wave, particularly as
there have been several delays in the vaccination program to
date.
Factors impacting comparability of our
Q3 2021 and Q3 2020 results
- Lower revenue: Our
revenues decreased 19% in ZAR primarily due to fewer prepaid
airtime and hardware 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 cost
base. As a result, we continue to experience operating losses
because of depressed revenues;
- Once-off termination
payment: During Q3 2021, we made a payment of $3.6 million
to the Frick Family Foundation to terminate all existing
arrangements with Bank Frick and settle all liabilities related to
IPG’s activities with Bank Frick;
- Non-cash increase in fair
value of MobiKwik: We recorded a non-cash fair value gain
during Q3 2021 of $10.8 million related to the change in fair value
of MobiKwik; and
- Foreign exchange
movements: The U.S. dollar was 3% weaker against the ZAR
during Q3 2021, which impacted our reported results.
Results of Operations by Segment and
Liquidity
Processing
Segment revenue, excluding IPG, was $18.7
million in Q3 2021, down 13% compared with Q3 2020 and down 7%
compared with Q2 2021 on a constant currency basis. Excluding IPG,
segment revenue decreased primarily due to fewer prepaid airtime
sales and a reduction in volume-driven transaction fees. Excluding
IPG, Processing’s operating loss has been impacted by lower revenue
and by an increase in transaction-based costs. Our revenue for Q3
2020 was adversely impacted by ZAR 8.2 million ($0.5 million) as a
result of the COVID-19 pandemic as we were unable to charge certain
cash withdrawal fees to customers as a result of the lockdown
during the last few days of March 2020. Our operating loss for the
Q3 2020 also includes the impact of the $6.4 million impairment
losses. IPG’s operating loss for the quarter primarily related to
the closure of its operations, which is at an advanced stage, and
we expect reduced operating losses and cash burn going forward. Our
operating loss margin (calculated as operating (loss) income
divided by revenue) for Q3 2021 and 2020 was (57.7%) and (56.1%),
respectively. Excluding IPG, our operating loss margin for the
Processing segment was (39.9%) and (44.1%) during the Q3 2021 and
2020, respectively. Excluding the impairment losses, our operating
loss and operating loss margin for the Processing segment was $6.1
million and (27.4%), respectively, during Q3 2020.
Financial services
Segment revenue was $10.2 million in Q3 2021,
down 15% on a constant currency basis compared with Q3 2020 and up
from $9.7 million compared to Q2 2021. Segment revenue decreased
due to lower account fee revenue and a modest reduction in lending
revenue, whilst insurance revenues increased compared to the prior
period. 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 the Q3 2021 and 2020
was (20.7%) and (14.6%), respectively.
Technology
Segment revenue was $2.0 million in Q3 2021,
down 51%, compared with Q3 2020, and down 57% compared with Q2 2021
on a constant currency basis. Segment revenue decreased
significantly due to fewer hardware sales from one product line
compared to the prior period, though partially offset by increases
in other hardware product lines. Operating income for Q3 2021 was
directly impacted by the lower revenue compared with fiscal 2020.
Our operating income margin for the Technology segment was 6.5% and
23.4% during Q3 2021 and 2020, respectively.
Corporate/eliminations
Our corporate expenses for fiscal 2020 includes
a $0.7 million impairment loss and net unrealized foreign exchange
gains of $1.9 million compared with net unrealized foreign exchange
gains of $0.6 million recorded in fiscal 2021.
Cash flow and liquidity
At March 31, 2021, our cash and cash equivalents
were $207.8 million and comprised of U.S. dollar-denominated
balances of $171.2 million, ZAR-denominated balances of ZAR 0.5
billion ($34.1 million), and other currency deposits, primarily
Botswana pula, of $2.4 million, all amounts translated at exchange
rates applicable as of March 31, 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
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 Q3 2021 was impacted by the cash
losses incurred by the majority of our continuing operations. Net
cash used in operating activities during Q3 2020 includes the
contribution from our Korean operations for January and February
2020. Capital expenditures for Q3 2021 and 2020 were $0.6 million
and $1.0 million, respectively.
Conference Call
We will host a conference call to review these
results on May 7, 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 May 7, 2021, conference call by navigating to
https://www.diamondpass.net/9167989. 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, loss on
disposal of equity-accounted investments, 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 an adjustment for the
impairment losses related to our equity-accounted investments, the
gain related to the disposal of Net1 Korea, the gain related to the
disposal of FIHRST, 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 Net1 Korea. 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 and Asia. 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 |
|
Nine months ended |
|
|
March 31, |
|
March 31, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
(asrestated)(A) |
|
|
|
(asrestated)(A) |
|
|
|
|
|
|
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE |
|
$ |
28,828 |
|
|
$ |
34,614 |
|
|
$ |
96,269 |
|
|
$ |
119,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold, IT processing, servicing and support |
|
|
23,096 |
|
|
|
23,883 |
|
|
|
73,895 |
|
|
|
81,335 |
|
Selling, general and administration |
|
|
18,892 |
|
|
|
17,454 |
|
|
|
59,517 |
|
|
|
59,494 |
|
Depreciation and amortization |
|
|
1,132 |
|
|
|
1,153 |
|
|
|
3,129 |
|
|
|
3,651 |
|
Impairment loss |
|
|
- |
|
|
|
6,336 |
|
|
|
- |
|
|
|
6,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
LOSS |
|
|
(14,292 |
) |
|
|
(14,212 |
) |
|
|
(40,272 |
) |
|
|
(31,068 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
CHANGE IN FAIR
VALUE OF EQUITY SECURITIES |
|
|
10,814 |
|
|
|
- |
|
|
|
25,942 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAIN ON DISPOSAL
OF FIHRST |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
9,743 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS ON DISPOSAL
OF EQUITY-ACCOUNTED INVESTMENT - BANK FRICK |
|
|
472 |
|
|
|
- |
|
|
|
472 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS ON DISPOSAL
OF EQUITY-ACCOUNTED INVESTMENT |
|
|
- |
|
|
|
- |
|
|
|
13 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
INCOME |
|
|
606 |
|
|
|
570 |
|
|
|
1,934 |
|
|
|
2,015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE |
|
|
744 |
|
|
|
1,886 |
|
|
|
2,168 |
|
|
|
6,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAX EXPENSE |
|
|
(4,088 |
) |
|
|
(15,528 |
) |
|
|
(15,049 |
) |
|
|
(25,672 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX
EXPENSE |
|
|
2,171 |
|
|
|
640 |
|
|
|
4,549 |
|
|
|
2,317 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS BEFORE
EARNINGS (LOSS) FROM EQUITY-ACCOUNTED INVESTMENTS |
|
|
(6,259 |
) |
|
|
(16,168 |
) |
|
|
(19,598 |
) |
|
|
(27,989 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS)
FROM EQUITY-ACCOUNTED INVESTMENTS |
|
|
55 |
|
|
|
(32,193 |
) |
|
|
(20,098 |
) |
|
|
(30,624 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS FROM
CONTINUING OPERATIONS |
|
|
(6,204 |
) |
|
|
(48,361 |
) |
|
|
(39,696 |
) |
|
|
(58,613 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME FROM
DISCONTINUED OPERATIONS |
|
|
- |
|
|
|
747 |
|
|
|
- |
|
|
|
6,402 |
|
GAIN FROM DISPOSAL
OF DISCONTINUED OPERATION, net of tax |
|
|
- |
|
|
|
12,733 |
|
|
|
- |
|
|
|
12,733 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
|
(6,204 |
) |
|
|
(34,881 |
) |
|
|
(39,696 |
) |
|
|
(39,478 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO NET1 |
|
|
(6,204 |
) |
|
|
(34,881 |
) |
|
|
(39,696 |
) |
|
|
(39,478 |
) |
Continuing |
|
|
(6,204 |
) |
|
|
(48,361 |
) |
|
|
(39,696 |
) |
|
|
(58,613 |
) |
Discontinued |
|
$ |
- |
|
|
$ |
13,480 |
|
|
$ |
- |
|
|
$ |
19,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
earnings per share, in United States dollars: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss)
earnings attributable to Net1 shareholders |
|
$ |
(0.11 |
) |
|
$ |
(0.61 |
) |
|
$ |
(0.70 |
) |
|
$ |
(0.69 |
) |
Continuing |
|
$ |
(0.11 |
) |
|
$ |
(0.85 |
) |
|
$ |
(0.70 |
) |
|
$ |
(1.03 |
) |
Discontinued |
|
$ |
- |
|
|
$ |
0.24 |
|
|
$ |
- |
|
|
$ |
0.34 |
|
Diluted (loss)
earnings attributable to Net1 shareholders |
|
$ |
(0.11 |
) |
|
$ |
(0.61 |
) |
|
$ |
(0.70 |
) |
|
$ |
(0.69 |
) |
Continuing |
|
$ |
(0.11 |
) |
|
$ |
(0.85 |
) |
|
$ |
(0.70 |
) |
|
$ |
(1.03 |
) |
Discontinued |
|
$ |
- |
|
|
$ |
0.24 |
|
|
$ |
- |
|
|
$ |
0.34 |
|
(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. The financial information for
the three and nine months ended March 31, 2020, has been restated
with the effect of decreasing revenue by $1.9 million and $5.3
million, respectively.
|
NET 1 UEPS TECHNOLOGIES, INC. |
Unaudited Consolidated Balance Sheets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited |
|
(A) |
|
|
|
|
|
|
March 31, |
|
June 30, |
|
|
|
|
|
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except share data) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
CURRENT
ASSETS |
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
207,814 |
|
|
$ |
217,671 |
|
|
Restricted
cash |
|
19,016 |
|
|
|
14,814 |
|
|
Accounts
receivable, net of allowance of - March: $428; June: $253 and other
receivables |
|
26,488 |
|
|
|
43,068 |
|
|
Finance loans
receivable, net of allowance of - March: $2,289; June: $7,658 |
|
20,599 |
|
|
|
15,879 |
|
|
Inventory |
|
20,267 |
|
|
|
19,860 |
|
|
|
Total current
assets before settlement assets |
|
294,184 |
|
|
|
311,292 |
|
|
|
|
Settlement
assets |
|
2,054 |
|
|
|
8,014 |
|
|
|
|
|
Total current assets |
|
296,238 |
|
|
|
319,306 |
|
PROPERTY, PLANT
AND EQUIPMENT, net of accumulated depreciation of - March: $36,296;
June: $29,524 |
|
8,079 |
|
|
|
6,656 |
|
OPERATING LEASE
RIGHT-OF-USE |
|
4,870 |
|
|
|
5,395 |
|
EQUITY-ACCOUNTED
INVESTMENTS |
|
19,857 |
|
|
|
65,836 |
|
GOODWILL |
|
28,141 |
|
|
|
24,169 |
|
INTANGIBLE ASSETS,
net of accumulated amortization of - March: $29,835; June:
$27,325 |
|
437 |
|
|
|
612 |
|
DEFERRED INCOME
TAXES |
|
383 |
|
|
|
358 |
|
OTHER LONG-TERM
ASSETS, including reinsurance assets |
|
58,447 |
|
|
|
31,346 |
|
TOTAL
ASSETS |
|
416,452 |
|
|
|
453,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
|
|
Short-term credit
facilities for ATM funding |
|
11,395 |
|
|
|
14,814 |
|
|
Accounts
payable |
|
6,785 |
|
|
|
6,287 |
|
|
Other
payables |
|
23,224 |
|
|
|
23,779 |
|
|
Operating lease
liability - current |
|
2,945 |
|
|
|
2,251 |
|
|
Income taxes
payable |
|
797 |
|
|
|
16,157 |
|
|
|
Total current
liabilities before settlement obligations |
|
45,146 |
|
|
|
63,288 |
|
|
|
|
Settlement
obligations |
|
2,054 |
|
|
|
8,015 |
|
|
|
|
|
Total current
liabilities |
|
47,200 |
|
|
|
71,303 |
|
DEFERRED INCOME
TAXES |
|
5,517 |
|
|
|
1,859 |
|
OPERATING LEASE
LIABILITY - LONG TERM |
|
2,111 |
|
|
|
3,312 |
|
OTHER LONG-TERM
LIABILITIES, including insurance policy liabilities |
|
2,240 |
|
|
|
2,012 |
|
TOTAL
LIABILITIES |
|
57,068 |
|
|
|
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: March: $56,626,060; 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: March: -; June: - |
|
- |
|
|
|
- |
|
ADDITIONAL
PAID-IN-CAPITAL |
|
302,476 |
|
|
|
301,489 |
|
TREASURY SHARES,
AT COST: March: $24,891,292; June: $24,891,292 |
|
(286,951 |
) |
|
|
(286,951 |
) |
ACCUMULATED OTHER
COMPREHENSIVE LOSS |
|
(146,174 |
) |
|
|
(169,075 |
) |
RETAINED
EARNINGS |
|
404,974 |
|
|
|
444,670 |
|
TOTAL NET1
EQUITY |
|
274,405 |
|
|
|
290,213 |
|
NON-CONTROLLING
INTEREST |
|
- |
|
|
|
- |
|
TOTAL
EQUITY |
|
274,405 |
|
|
|
290,213 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES, REDEEMABLE COMMON STOCK AND SHAREHOLDERS’
EQUITY |
$ |
416,452 |
|
|
$ |
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 |
|
Nine months ended |
|
|
|
March 31, |
|
March 31, |
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(6,204 |
) |
|
$ |
(34,881 |
) |
|
$ |
(39,696 |
) |
|
$ |
(39,478 |
) |
|
Depreciation and
amortization |
|
1,132 |
|
|
|
3,157 |
|
|
|
3,129 |
|
|
|
12,303 |
|
|
Impairment
loss |
|
- |
|
|
|
6,336 |
|
|
|
- |
|
|
|
6,336 |
|
|
Movement in
allowance for doubtful accounts receivable |
|
299 |
|
|
|
277 |
|
|
|
913 |
|
|
|
360 |
|
|
(Earnings) Loss
from equity-accounted investments |
|
(55 |
) |
|
|
32,193 |
|
|
|
20,098 |
|
|
|
30,624 |
|
|
Movement in
allowance for doubtful loans |
|
- |
|
|
|
99 |
|
|
|
739 |
|
|
|
719 |
|
|
Change in fair
value of equity securities |
|
(10,814 |
) |
|
|
- |
|
|
|
(25,942 |
) |
|
|
- |
|
|
Fair value
adjustment related to financial liabilities |
|
(475 |
) |
|
|
(987 |
) |
|
|
1,201 |
|
|
|
(753 |
) |
|
Interest
payable |
|
(25 |
) |
|
|
597 |
|
|
|
(46 |
) |
|
|
1,755 |
|
|
Gain on disposal
of Net1 Korea |
|
- |
|
|
|
(12,733 |
) |
|
|
- |
|
|
|
(12,733 |
) |
|
Gain on disposal
of FIHRST |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(9,743 |
) |
|
Loss on disposal
of equity-accounted investment - Bank Frick |
|
472 |
|
|
|
- |
|
|
|
472 |
|
|
|
- |
|
|
Loss on disposal
of equity-accounted investment |
|
- |
|
|
|
- |
|
|
|
13 |
|
|
|
- |
|
|
(Profit) Loss on
disposal of property, plant and equipment |
|
(142 |
) |
|
|
108 |
|
|
|
600 |
|
|
|
(95 |
) |
|
Stock-based
compensation charge |
|
245 |
|
|
|
347 |
|
|
|
876 |
|
|
|
1,170 |
|
|
Dividends received
from equity accounted investments |
|
- |
|
|
|
677 |
|
|
|
125 |
|
|
|
2,125 |
|
|
Decrease in
accounts receivable and finance loans receivable |
|
5,786 |
|
|
|
10,596 |
|
|
|
4,230 |
|
|
|
13,697 |
|
|
Decrease
(Increase) in inventory |
|
428 |
|
|
|
(5,041 |
) |
|
|
2,642 |
|
|
|
(18,036 |
) |
|
Decrease in
accounts payable and other payables |
|
(894 |
) |
|
|
(4,396 |
) |
|
|
(4,393 |
) |
|
|
(4,660 |
) |
|
Decrease in taxes
payable |
|
(160 |
) |
|
|
(131 |
) |
|
|
(15,498 |
) |
|
|
(1,087 |
) |
|
Increase
(Decrease) in deferred taxes |
|
2,153 |
|
|
|
(413 |
) |
|
|
424 |
|
|
|
(618 |
) |
|
|
Net cash used in operating activities |
|
(8,254 |
) |
|
|
(4,195 |
) |
|
|
(50,113 |
) |
|
|
(18,114 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from investing activities |
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures |
|
(649 |
) |
|
|
(1,042 |
) |
|
|
(3,947 |
) |
|
|
(4,493 |
) |
Proceeds from
disposal of property, plant and equipment |
|
254 |
|
|
|
59 |
|
|
|
345 |
|
|
|
362 |
|
Proceeds from
disposal of equity-accounted investment - Bank Frick |
|
18,568 |
|
|
|
- |
|
|
|
18,568 |
|
|
|
- |
|
Proceeds from
disposal of Net1 Korea, net of cash disposed |
|
- |
|
|
|
192,619 |
|
|
|
20,114 |
|
|
|
192,619 |
|
Transaction costs
paid related to disposal of Net1 Korea |
|
- |
|
|
|
(7,458 |
) |
|
|
- |
|
|
|
(7,458 |
) |
Proceeds from
disposal of DNI as equity-accounted investment |
|
- |
|
|
|
- |
|
|
|
6,010 |
|
|
|
- |
|
Proceeds from
disposal of FIHRST, net of cash disposed |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
10,895 |
|
Investment in
equity-accounted investments |
|
- |
|
|
|
(1,250 |
) |
|
|
- |
|
|
|
(2,500 |
) |
Loan to
equity-accounted investment |
|
- |
|
|
|
(99 |
) |
|
|
(1,238 |
) |
|
|
(711 |
) |
Repayment of loans
by equity-accounted investments |
|
- |
|
|
|
- |
|
|
|
134 |
|
|
|
4,268 |
|
Net change in
settlement assets |
|
745 |
|
|
|
864 |
|
|
|
6,190 |
|
|
|
(9,274 |
) |
|
Net cash
provided by investing activities |
|
18,918 |
|
|
|
183,693 |
|
|
|
46,176 |
|
|
|
183,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities |
|
|
|
|
|
|
|
|
|
|
|
Proceeds from bank
overdraft |
|
55,280 |
|
|
|
193,723 |
|
|
|
261,759 |
|
|
|
585,273 |
|
Repayment of bank
overdraft |
|
(103,195 |
) |
|
|
(226,699 |
) |
|
|
(268,303 |
) |
|
|
(605,253 |
) |
Proceeds from
issue of shares |
|
35 |
|
|
|
- |
|
|
|
53 |
|
|
|
- |
|
Proceeds from
disgorgement of shareholders' short-swing profits |
|
- |
|
|
|
- |
|
|
|
124 |
|
|
|
- |
|
Long-term
borrowings utilized |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
14,798 |
|
Repayment of
long-term borrowings |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(11,313 |
) |
Guarantee fee |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(148 |
) |
Finance lease
capital repayments |
|
- |
|
|
|
(17 |
) |
|
|
- |
|
|
|
(69 |
) |
Net change in
settlement obligations |
|
(745 |
) |
|
|
(864 |
) |
|
|
(6,190 |
) |
|
|
9,274 |
|
|
Net cash
used in financing activities |
|
(48,625 |
) |
|
|
(33,857 |
) |
|
|
(12,557 |
) |
|
|
(7,438 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash |
|
(2,263 |
) |
|
|
(20,060 |
) |
|
|
10,839 |
|
|
|
(19,007 |
) |
Net
(decrease) increase in cash, cash equivalents and restricted
cash |
|
(40,224 |
) |
|
|
125,581 |
|
|
|
(5,655 |
) |
|
|
139,149 |
|
Cash, cash
equivalents and restricted cash – beginning of period |
|
267,054 |
|
|
|
135,079 |
|
|
|
232,485 |
|
|
|
121,511 |
|
Cash, cash
equivalents and restricted cash – end of period |
$ |
226,830 |
|
|
$ |
260,660 |
|
|
$ |
226,830 |
|
|
$ |
260,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net 1 UEPS Technologies, Inc.
Attachment A
Operating segment revenue, operating
(loss) income and operating (loss) margin:
Three months ended March 31, 2021 and
2020 and December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change - actual |
Change –constantexchange
rate(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key
segmental data, in ’000, except margins |
|
Q3 '21 |
|
Q3 '20(asrestated)(A) |
|
Q2 '21 |
Q3 '21 vs Q3
'20 |
Q3 '21 vs Q2
'21 |
Q3 '21 vs Q3
'20 |
Q3 '21 vs Q2
'21 |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing |
|
$ |
18,747 |
|
|
$ |
22,078 |
|
|
$ |
19,990 |
|
(15 |
%) |
(6 |
%) |
(17 |
%) |
(9 |
%) |
|
|
IPG |
|
|
6 |
|
|
|
1,164 |
|
|
|
478 |
|
(99 |
%) |
(99 |
%) |
(99 |
%) |
(99 |
%) |
|
|
All Other |
|
|
18,741 |
|
|
|
20,914 |
|
|
|
19,512 |
|
(10 |
%) |
(4 |
%) |
(13 |
%) |
(7 |
%) |
|
Financial
services |
|
|
10,192 |
|
|
|
11,683 |
|
|
|
9,709 |
|
(13 |
%) |
5 |
% |
(15 |
%) |
2 |
% |
|
Technology |
|
|
2,026 |
|
|
|
4,040 |
|
|
|
4,609 |
|
(50 |
%) |
(56 |
%) |
(51 |
%) |
(57 |
%) |
|
|
|
Subtotal:
Operating segments |
|
|
30,965 |
|
|
|
37,801 |
|
|
|
34,308 |
|
(18 |
%) |
(10 |
%) |
(20 |
%) |
(13 |
%) |
|
|
|
Intersegment
eliminations |
|
|
(2,137 |
) |
|
|
(3,187 |
) |
|
|
(2,003 |
) |
(33 |
%) |
7 |
% |
(35 |
%) |
3 |
% |
|
|
|
|
Consolidated revenue |
|
$ |
28,828 |
|
|
$ |
34,614 |
|
|
$ |
32,305 |
|
(17 |
%) |
(11 |
%) |
(19 |
%) |
(14 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing |
|
$ |
(10,816 |
) |
|
$ |
(12,394 |
) |
|
$ |
(10,381 |
) |
(13 |
%) |
4 |
% |
(15 |
%) |
1 |
% |
|
|
IPG |
|
|
(3,332 |
) |
|
|
(3,175 |
) |
|
|
(4,647 |
) |
5 |
% |
(28 |
%) |
2 |
% |
(31 |
%) |
|
|
All Other |
|
|
(7,484 |
) |
|
|
(9,219 |
) |
|
|
(5,734 |
) |
(19 |
%) |
31 |
% |
(21 |
%) |
26 |
% |
|
Financial
services |
|
|
(2,111 |
) |
|
|
(1,701 |
) |
|
|
(1,071 |
) |
24 |
% |
97 |
% |
21 |
% |
91 |
% |
|
Technology |
|
|
131 |
|
|
|
945 |
|
|
|
1,078 |
|
(86 |
%) |
(88 |
%) |
(87 |
%) |
(88 |
%) |
|
|
|
Subtotal:
Operating segments |
|
|
(12,796 |
) |
|
|
(13,150 |
) |
|
|
(10,374 |
) |
(3 |
%) |
23 |
% |
(5 |
%) |
19 |
% |
|
|
|
Corporate/Eliminations |
|
|
(1,496 |
) |
|
|
(1,062 |
) |
|
|
(4,831 |
) |
41 |
% |
(69 |
%) |
37 |
% |
(70 |
%) |
|
|
|
|
|
Consolidated operating (loss) income |
|
$ |
(14,292 |
) |
|
$ |
(14,212 |
) |
|
$ |
(15,205 |
) |
1 |
% |
(6 |
%) |
(2 |
%) |
(9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) income margin (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing |
|
|
(57.7 |
%) |
|
|
(56.1 |
%) |
|
|
(51.9 |
%) |
|
|
|
|
|
|
IPG |
|
|
nm |
|
|
(272.8 |
%) |
|
|
(972.2 |
%) |
|
|
|
|
|
|
All Other |
|
|
(39.9 |
%) |
|
|
(44.1 |
%) |
|
|
(29.4 |
%) |
|
|
|
|
|
Financial
services |
|
|
(20.7 |
%) |
|
|
(14.6 |
%) |
|
|
(11.0 |
%) |
|
|
|
|
|
Technology |
|
|
6.5 |
% |
|
|
23.4 |
% |
|
|
23.4 |
% |
|
|
|
|
|
|
|
Consolidated operating margin |
|
|
(49.6 |
%) |
|
|
(41.1 |
%) |
|
|
(47.1 |
%) |
|
|
|
|
(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 Q3 2021 also prevailed during
Q3 2020 and Q2 2021.
Nine months ended March 31, 2021 and
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change -actual |
Change
–constantexchangerate(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F2021 |
|
F2020 |
|
F2021
vsF2020 |
F2021 vs
F2020 |
Key segmental data, in ’000, except margins |
|
|
|
(as restated)(A) |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
Processing |
|
$ |
61,243 |
|
|
$ |
75,395 |
|
|
(19%) |
|
(18%) |
|
|
|
IPG |
|
|
1,693 |
|
|
|
2,389 |
|
|
(29%) |
|
(28%) |
|
|
|
All other |
|
|
59,550 |
|
|
|
73,006 |
|
|
(18%) |
|
(18%) |
|
|
Financial
services |
|
|
28,166 |
|
|
|
38,119 |
|
|
(26%) |
|
(25%) |
|
|
Technology |
|
|
12,846 |
|
|
|
16,139 |
|
|
(20%) |
|
(20%) |
|
|
|
|
Subtotal:
Operating segments |
|
|
102,255 |
|
|
|
129,653 |
|
|
(21%) |
|
(20%) |
|
|
|
|
Intersegment
eliminations |
|
|
(5,986 |
) |
|
|
(9,905 |
) |
|
(40%) |
|
(39%) |
|
|
|
|
|
Consolidated revenue |
|
|
96,269 |
|
|
|
119,748 |
|
|
(20%) |
|
(19%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) income: |
|
|
|
|
|
|
|
|
|
|
Processing |
|
$ |
(28,498 |
) |
|
$ |
(23,747 |
) |
|
20% |
|
21% |
|
|
|
IPG |
|
|
(10,751 |
) |
|
|
(8,068 |
) |
|
33% |
|
nm |
|
|
|
All other |
|
|
(17,747 |
) |
|
|
(15,679 |
) |
|
13% |
|
nm |
|
|
Financial
services |
|
|
(5,554 |
) |
|
|
(2,605 |
) |
|
113% |
|
115% |
|
|
Technology |
|
|
2,984 |
|
|
|
2,679 |
|
|
11% |
|
12% |
|
|
|
|
Subtotal:
Operating segments |
|
|
(31,068 |
) |
|
|
(23,673 |
) |
|
31% |
|
33% |
|
|
|
|
Corporate/Eliminations |
|
|
(9,204 |
) |
|
|
(7,395 |
) |
|
24% |
|
26% |
|
|
|
|
|
|
Consolidated operating (loss) income |
|
|
(40,272 |
) |
|
|
(31,068 |
) |
|
30% |
|
31% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) income margin (%) |
|
|
|
|
|
|
|
|
|
|
Processing |
|
|
(46.5 |
%) |
|
|
(31.5 |
%) |
|
|
|
|
|
IPG |
|
|
(635.0 |
%) |
|
|
(337.7 |
%) |
|
|
|
|
|
All other |
|
|
(29.8 |
%) |
|
|
(21.5 |
%) |
|
|
|
|
Financial
services |
|
|
(19.7 |
%) |
|
|
(6.8 |
%) |
|
|
|
|
Technology |
|
|
23.2 |
% |
|
|
16.6 |
% |
|
|
|
|
|
|
Consolidated operating margin |
|
|
(41.8 |
%) |
|
|
(25.9 |
%) |
|
|
|
(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.
Earnings (Loss) from equity-accounted
investments:
The table below presents the relative earnings
(loss) from our equity-accounted investments:
|
|
|
Q3 2021 |
|
|
Q3 2020 |
|
%change |
|
|
F2021 |
|
|
F2020 |
|
%change |
Bank Frick |
|
177 |
|
|
|
(18,393 |
) |
|
nm |
|
|
1,156 |
|
|
|
(17,924 |
) |
|
nm |
|
Share of net income |
|
177 |
|
|
|
15 |
|
|
1,080% |
|
|
1,156 |
|
|
|
770 |
|
|
50% |
|
Amortization of intangible
assets, net of deferred tax |
|
- |
|
|
|
(147 |
) |
|
nm |
|
|
- |
|
|
|
(433 |
) |
|
nm |
|
Impairment |
|
- |
|
|
|
(18,261 |
) |
|
nm |
|
|
- |
|
|
|
(18,261 |
) |
|
nm |
DNI |
$ |
- |
|
|
$ |
(10,852 |
) |
|
nm |
|
$ |
- |
|
|
$ |
(9,744 |
) |
|
nm |
|
Share of net income |
|
- |
|
|
|
1,563 |
|
|
nm |
|
|
- |
|
|
|
4,676 |
|
|
nm |
|
Amortization of intangible
assets, net of deferred tax |
|
- |
|
|
|
(419 |
) |
|
nm |
|
|
- |
|
|
|
(1,350 |
) |
|
nm |
|
Impairment |
|
- |
|
|
|
(11,996 |
) |
|
nm |
|
|
- |
|
|
|
(13,070 |
) |
|
nm |
Finbond |
|
- |
|
|
|
- |
|
|
nm |
|
|
(20,267 |
) |
|
|
491 |
|
|
nm |
|
Share of net (loss)
income |
|
- |
|
|
|
- |
|
|
nm |
|
|
(2,617 |
) |
|
|
491 |
|
|
nm |
|
Impairment |
|
- |
|
|
|
- |
|
|
nm |
|
|
(17,650 |
) |
|
|
- |
|
|
nm |
Other |
|
(122 |
) |
|
|
(2,948 |
) |
|
(96%) |
|
|
(987 |
) |
|
|
(3,447 |
) |
|
(71%) |
|
Share of net loss |
|
(122 |
) |
|
|
(448 |
) |
|
(73%) |
|
|
(439 |
) |
|
|
(947 |
) |
|
(54%) |
|
Impairment |
|
- |
|
|
|
(2,500 |
) |
|
nm |
|
|
(548 |
) |
|
|
(2,500 |
) |
|
(78%) |
|
Earnings (Loss) from
equity-accounted investments |
$ |
55 |
|
|
$ |
(32,193 |
) |
|
nm |
|
$ |
(20,098 |
) |
|
$ |
(30,624 |
) |
|
(34%) |
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,
2021 and 2020
|
|
|
|
|
Three months endedMarch 31, |
|
Nine months endedMarch 31, |
|
|
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Operating
loss - GAAP |
(14,292 |
) |
|
(14,212 |
) |
|
(40,272 |
) |
|
(31,068 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
1,132 |
|
|
1,153 |
|
|
3,129 |
|
|
3,651 |
|
|
Impairment
loss |
- |
|
|
6,336 |
|
|
- |
|
|
6,336 |
|
|
|
Negative
EBITDA |
(13,160 |
) |
|
(6,723 |
) |
|
(37,143 |
) |
|
(21,081 |
) |
|
|
|
Transaction
costs |
337 |
|
|
300 |
|
|
1,705 |
|
|
3,682 |
|
|
|
|
|
Adjusted EBITDA loss |
(12,823 |
) |
|
(6,423 |
) |
|
(35,438 |
) |
|
(17,399 |
) |
Reconciliation of GAAP net loss and loss
per share, basic, to fundamental net loss and loss per share,
basic:
Three months ended March 31, 2021 and
2020
|
Net (loss) income(USD '000) |
|
(L)PS, basic (USD) |
|
Net (loss) income(ZAR '000) |
|
(L)PS, basic (ZAR) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
GAAP |
(6,204 |
) |
|
(34,881 |
) |
|
(0.11 |
) |
|
(0.61 |
) |
|
(92,796 |
) |
|
(536,006 |
) |
|
(1.64 |
) |
|
(9.43 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of equity
securities, net |
(8,543 |
) |
|
- |
|
|
|
|
|
|
(127,783 |
) |
|
- |
|
|
|
|
|
Loss on disposal of
equity-accounted investment - Bank Frick |
472 |
|
|
- |
|
|
|
|
|
|
7,060 |
|
|
- |
|
|
|
|
|
Stock-based compensation
charge |
245 |
|
|
347 |
|
|
|
|
|
|
3,665 |
|
|
5,332 |
|
|
|
|
|
Intangible asset amortization,
net |
66 |
|
|
983 |
|
|
|
|
|
|
990 |
|
|
15,112 |
|
|
|
|
|
Impairment of equity method
investment |
- |
|
|
32,277 |
|
|
|
|
|
|
- |
|
|
495,990 |
|
|
|
|
|
Gain on discontinued
operation |
- |
|
|
(12,733 |
) |
|
|
|
|
|
- |
|
|
(195,664 |
) |
|
|
|
|
Impairment loss |
- |
|
|
6,336 |
|
|
|
|
|
|
- |
|
|
97,363 |
|
|
|
|
|
Intangible asset amortization,
net related to equity accounted investments |
- |
|
|
566 |
|
|
|
|
|
|
- |
|
|
8,698 |
|
|
|
|
|
Interest related to SASSA
implementation costs refund |
- |
|
|
509 |
|
|
|
|
|
|
- |
|
|
7,822 |
|
|
|
|
|
Transaction costs |
337 |
|
|
300 |
|
|
|
|
|
|
5,041 |
|
|
4,610 |
|
|
|
|
|
Fundamental |
(13,627 |
) |
|
(6,296 |
) |
|
(0.24 |
) |
|
(0.11 |
) |
|
(203,823 |
) |
|
(96,743 |
) |
|
(3.60 |
) |
|
(1.70 |
) |
Nine months ended March 31, 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 |
(39,696 |
) |
|
(39,478 |
) |
|
(0.70 |
) |
|
(0.69 |
) |
|
(639,798 |
) |
|
(630,053 |
) |
|
(11.27 |
) |
|
(11.12 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of equity method
investments |
18,198 |
|
|
32,084 |
|
|
|
|
|
|
281,729 |
|
|
512,048 |
|
|
|
|
|
Reversal of deferred taxes
related to impairment of equity method investment |
(1,353 |
) |
|
- |
|
|
|
|
|
|
(22,633 |
) |
|
- |
|
|
|
|
|
Change in fair value of equity
securities, net |
(20,494 |
) |
|
- |
|
|
|
|
|
|
(330,313 |
) |
|
- |
|
|
|
|
|
Transaction costs |
1,705 |
|
|
2,876 |
|
|
|
|
|
|
27,480 |
|
|
45,900 |
|
|
|
|
|
Stock-based compensation
charge |
876 |
|
|
1,170 |
|
|
|
|
|
|
14,119 |
|
|
18,673 |
|
|
|
|
|
Loss on disposal of
equity-accounted investment - Bank Frick |
472 |
|
|
- |
|
|
|
|
|
|
7,607 |
|
|
- |
|
|
|
|
|
Intangible asset amortization,
net |
184 |
|
|
3,768 |
|
|
|
|
|
|
2,971 |
|
|
60,123 |
|
|
|
|
|
Gain on discontinued
operation |
- |
|
|
(12,733 |
) |
|
|
|
|
|
- |
|
|
(203,214 |
) |
|
|
|
|
Gain on disposal of
FIHRST |
- |
|
|
(9,743 |
) |
|
|
|
|
|
- |
|
|
(155,494 |
) |
|
|
|
|
Impairment loss |
- |
|
|
6,336 |
|
|
|
|
|
|
- |
|
|
101,120 |
|
|
|
|
|
Intangible asset amortization,
net related to equity accounted investments |
- |
|
|
1,783 |
|
|
|
|
|
|
- |
|
|
28,456 |
|
|
|
|
|
Interest related to SASSA
implementation costs refund |
- |
|
|
1,498 |
|
|
|
|
|
|
- |
|
|
23,909 |
|
|
|
|
|
Fundamental |
(40,095 |
) |
|
(12,439 |
) |
|
(0.71 |
) |
|
(0.22 |
) |
|
(658,628 |
) |
|
(198,532 |
) |
|
(11.60 |
) |
|
(3.50 |
) |
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, 2021 and
2020
|
|
2021 |
|
2020 |
|
|
|
|
|
|
|
Net loss
(USD’000) |
(6,204 |
) |
|
(34,881 |
) |
|
Adjustments: |
|
|
|
|
|
Loss on disposal of equity-accounted investment - Bank Frick |
430 |
|
|
- |
|
|
|
Impairment of equity method
investments |
- |
|
|
32,757 |
|
|
|
Gain on disposal of
discontinued operation |
- |
|
|
(21,377 |
) |
|
|
Impairment loss |
- |
|
|
6,336 |
|
|
|
(Profit) Loss on sale of
property, plant and equipment |
(142 |
) |
|
108 |
|
|
|
Tax effects on above |
40 |
|
|
(30 |
) |
|
|
|
|
|
|
|
Net loss used to
calculate headline loss (USD’000) |
(5,876 |
) |
|
(17,087 |
) |
|
|
|
|
|
|
|
Weighted average
number of shares used to calculate net loss per share basic loss
and headline loss per share basic loss (‘000) |
56,646 |
|
|
56,803 |
|
|
|
|
|
|
|
|
Weighted average
number of shares used to calculate net loss per share diluted loss
and headline loss per share diluted loss (‘000) |
56,921 |
|
|
56,803 |
|
|
|
|
|
|
|
|
Headline loss per
share: |
|
|
|
|
|
Basic, in USD |
(0.10 |
) |
|
(0.30 |
) |
|
|
Diluted, in USD |
(0.10 |
) |
|
(0.30 |
) |
|
Nine months ended March 31, 2021 and
2020
|
|
2021 |
|
2020 |
|
|
|
|
|
|
|
Net loss
(USD’000) |
(39,696 |
) |
|
(39,478 |
) |
|
Adjustments: |
|
|
|
|
|
Impairment of equity method investments |
18,198 |
|
|
33,831 |
|
|
|
Loss on disposal of
equity-accounted investment - Bank Frick |
430 |
|
|
- |
|
|
|
Gain on disposal of
discontinued operation |
- |
|
|
(21,377 |
) |
|
|
Gain on disposal of
FIHRST |
- |
|
|
(9,607 |
) |
|
|
Impairment loss |
- |
|
|
6,336 |
|
|
|
Loss (Profit) on sale of
property, plant and equipment |
600 |
|
|
(95 |
) |
|
|
Tax effects on above |
(1,521 |
) |
|
27 |
|
|
|
|
|
|
|
|
Net loss used to
calculate headline loss (USD’000) |
(21,989 |
) |
|
(30,363 |
) |
|
|
|
|
|
|
|
Weighted average
number of shares used to calculate net loss per share basic loss
and headline loss per share basic loss (‘000) |
56,803 |
|
|
56,646 |
|
|
|
|
|
|
|
|
Weighted average
number of shares used to calculate net loss per share diluted loss
and headline loss per share diluted loss (‘000) |
56,895 |
|
|
56,646 |
|
|
|
|
|
|
|
|
Headline loss per
share: |
|
|
|
|
|
Basic, in USD |
(0.39 |
) |
|
(0.54 |
) |
|
|
Diluted, in USD |
(0.39 |
) |
|
(0.54 |
) |
|
Calculation of the denominator for headline diluted loss
per share
|
|
|
Q3 2021 |
|
Q3 2020 |
|
F2021 |
|
F2020 |
|
|
|
|
|
|
|
|
|
|
Basic
weighted-average common shares outstanding and unvested restricted
shares expected to vest under GAAP |
56,646 |
|
56,803 |
|
56,803 |
|
56,646 |
|
Effect of dilutive
securities under GAAP |
275 |
|
- |
|
92 |
|
- |
|
|
Denominator for headline
diluted loss per share |
56,921 |
|
56,803 |
|
56,895 |
|
56,646 |
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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