Lesaka Technologies, Inc. (“Lesaka” or the “Company”)
(NasdaqGS:LSAK; JSE: LSK) today provides financial guidance for the
year ended June 30, 2023 (“FY23”) and clarifies that its shelf
registration statement on Form S-3 filed on September 9, 2022 with
the United States Securities and Exchange Commission (“SEC”) was
the routine renewal of its previously effective registration
statement on Form S-3, which expired in December 2021.
Financial Guidance for FY23
On September 9, 2022, Lesaka published financial
results for the year ended June 30, 2022 (“FY22”). The Company
would like to reiterate several key components of its results
reported for FY22 and provide financial guidance for FY23.
Lesaka reported revenue of $222.6 million and an
Adjusted EBITDA loss1 of $18.6 million for FY22. The Adjusted
EBITDA loss1 of $18.6 million included $3.0 million of stock-based
compensation costs. The Adjusted EBITDA loss1, before stock-based
compensation costs, is $15.6 million. Going forward Adjusted EBITDA
loss1 will be reported after adjusting for (excluding) stock-based
compensation costs.
The Company expects the following ranges for
FY23:
- Revenue for the group between $565
million and $600 million
- Adjusted EBITDA for the group
between $31 million and $34 million
- Merchant business segment Adjusted
EBITDA between $31 million and $33 million, this guidance
comprises:
- Strong fundamentals that underpin
the growth of Connect remain unchanged.
- FY22 revenue in the pre-existing
Lesaka Merchant business benefited from large one-off sales during
the year, due to a catch up on back-order fulfilment in the POS
division as a result of the global chip shortage.
- Consumer business segment Adjusted
EBITDA between $8 million and $10 million
- Corporate/Eliminations2 expected at
approximately $2.5 million per quarter
This guidance reflects the Company’s estimates
as of September 19, 2022 and is based on an exchange rate of
ZAR15.50 to $1.
- Adjusted EBITDA before stock-based compensation costs is a loss
of $15.6 million for FY22.Adjusted EBITDA income (loss), is a
non-GAAP measures and is described below under “Use of Non-GAAP
Measures.
- Excludes any potential once-off costs.
Management has provided its outlook regarding
Adjusted EBITDA which is a non-GAAP financial measure and excludes
certain charges. Management has not reconciled this non-GAAP
financial measure to the corresponding GAAP financial measure
because guidance for the various reconciling items is not provided.
Management is unable to provide guidance for these reconciling
items because they cannot determine their probable significance, as
certain items are outside of the company's control and cannot be
reasonably predicted since these items could vary significantly
from period to period. Accordingly, reconciliations to the
corresponding GAAP financial measure is not available without
unreasonable effort.
Shelf registration statement on Form S-3
filed on September 9, 2022
Lesaka’s shelf registration statement on Form
S-3 filed on September 9, 2022 with the SEC was the routine renewal
of its previously effective registration statement on Form S-3,
which expired in December 2021. The Company has no immediate plans
to offer or sell any securities under this shelf registration
statement to the public. However, the Company felt it was prudent
to file the shelf registration statement as a matter of standard
corporate governance to respond to future financing and business
opportunities.
The shelf registration statement relating to
these securities has been filed with the SEC but has not yet become
effective. These securities may not be sold nor may offers to buy
be accepted prior to the time the registration statement becomes
effective. This press release shall not constitute an offer to sell
or a solicitation of an offer to buy, nor shall there be any sale
of these securities in any jurisdiction in which an offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such jurisdiction. Any
offering of the securities covered under the shelf registration
statement will be made solely by means of a prospectus and an
accompanying prospectus supplement relating to that offering.
About Lesaka
(www.lesakatech.com)
Lesaka Technologies, (Lesaka™) is a South
African Fintech company that utilizes its proprietary banking and
payment technologies to deliver superior financial services
solutions to merchants (B2B) and consumers (B2C) in Southern
Africa. Lesaka’s mission is to drive true financial inclusion for
both merchant and consumer markets through offering affordable
financial services to previously underserved sectors of the
economy. Lesaka offers cash management solutions, growth capital,
card acquiring, bill payment technologies and value-added services
to formal and informal retail merchants as well as banking,
lending, and insurance solutions to consumers across Southern
Africa. The Lesaka journey originally began as “Net1” in 1997 and
later rebranded to Lesaka (2022), with the acquisition of Connect.
As Lesaka, the business continues to grow its systems and
capabilities to deliver meaningful fintech-enabled, innovative
solutions for South Africa’s merchant and consumer markets.
Lesaka has a primary listing on NASDAQ
(NasdaqGS: LSAK) and a secondary listing on the Johannesburg Stock
Exchange (JSE: LSK). Visit www.lesakatech.com for additional
information about Lesaka Technologies (Lesaka ™).
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 and
Adjusted EBITDA 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,
stock-based compensation costs and transactions consummated or
ultimately not pursued.
Reconciliation of GAAP operating loss to
EBITDA loss and Adjusted EBITDA loss:
Three and twelve months ended June 30,
2022 and 2021
|
|
|
|
|
Three months ended June
30, |
|
Year ended June 30, |
|
|
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Operating
loss - GAAP |
$ |
(10,122 |
) |
|
$ |
(13,600 |
) |
|
$ |
(40,195 |
) |
|
$ |
(53,872 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
5,491 |
|
|
|
1,218 |
|
|
|
7,575 |
|
|
|
4,347 |
|
|
|
Operating loss
before depreciation and amortization |
|
(4,631 |
) |
|
|
(12,382 |
) |
|
|
(32,620 |
) |
|
|
(49,525 |
) |
|
|
|
Legacy processing
adjustments |
|
1,629 |
|
|
|
- |
|
|
|
1,629 |
|
|
|
- |
|
|
|
|
Reorganization
costs |
|
- |
|
|
|
- |
|
|
|
5,894 |
|
|
|
- |
|
|
|
|
Allowance for
doubtful EMI loans receivable |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,739 |
|
|
|
|
Transaction
costs |
|
4,339 |
|
|
|
337 |
|
|
|
6,460 |
|
|
|
1,879 |
|
|
|
|
|
Adjusted EBITDA loss |
$ |
1,337 |
|
|
$ |
(12,045 |
) |
|
$ |
(18,637 |
) |
|
$ |
(42,907 |
) |
Forward Looking Statements
This press release contains certain statements
that may be considered forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and such statements are subject to the safe harbor created by those
sections and the Private Securities Litigation Reform Act of 1995,
as amended. Such statements may be identified by their use of terms
or phrases such as “expects,” “estimates,” “projects,” “believes,”
“anticipates,” “plans,” “could,” “would,” “may,” “will,” “intends,”
“outlook,” “focus,” “seek,” “potential,” “mission,” “continue,”
“goal,” “target,” “objective,” derivations thereof, and similar
terms and phrases. Forward-looking statements are based upon the
current beliefs and expectations of our management and are
inherently subject to risks and uncertainties, some of which cannot
be predicted or quantified, which could cause future events and
actual results to differ materially from those set forth in,
contemplated by, or underlying the forward-looking statements. In
this press release, statements relating to future financial results
and future financing and business opportunities are forward-looking
statements. Additional information concerning factors that could
cause actual events or results to differ materially from those in
any forward-looking statement is contained in the company’s Form
10-K for the fiscal year ended June 30, 2022, as filed with the
SEC, as well as other documents the Company has filed or will file
with the SEC. The Company assumes no obligation to update the
information in this press release, to revise any forward-looking
statements or to update the reasons actual results could differ
materially from those anticipated in forward-looking
statements.
Investor Relations Contact:
Phillipe WelthagenEmail :
phillipe.welthagen@lesakatech.com
ICREmail: LesakaIR@icrinc.com
Media Relations Contact:Janine
Bester GertzenEmail:
Janine@thenielsennetwork.com
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