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Net 1 UEPS Technologies, Inc. Reports Second Quarter 2015 Results
Net 1 UEPS Technologies, Inc.
Registered in the state of Florida, USA
(IRS Employer Identification No. 98-0171860)
Nasdaq share code: UEPS
JSE share code: NT1
ISIN: US64107N2062
(“Net1” or “the Company”)
Net 1 UEPS Technologies, Inc. Reports Second Quarter 2015 Results
• Q2 2015 Revenue and FEPS of $154.1 million and $0.57, a constant currency increase of 24% and 56% respectively.
JOHANNESBURG, February 6, 2015 – Net 1 UEPS Technologies, Inc. (Nasdaq: UEPS; JSE: NT1) today released results
for the second quarter of fiscal 2015.
Summary Financial Metrics
Three months ended December 31,
% change % change
2014 2013 in USD in ZAR
(All figures in USD ‘000s except per share data)
Revenue 154,131 137,283 12% 24%
GAAP net income 22,374 12,749 75% 94%
Fundamental net income (1) 26,400 18,398 43% 58%
GAAP earnings per share ($) 0.48 0.28 73% 91%
Fundamental earnings per share ($) (1) 0.57 0.40 43% 56%
Fully-diluted shares outstanding (‘000’s) 46,644 46,176 2%
Average period USD/ ZAR exchange rate 11.22 10.16 10%
Six months ended December 31,
% change % change
2014 2013 in USD in ZAR
(All figures in USD ‘000s except per share data)
Revenue 310,572 260,777 19% 30%
GAAP net income 46,463 24,345 91% 108%
Fundamental net income (1) 54,522 35,174 55% 69%
GAAP earnings per share ($) 0.99 0.53 86% 102%
Fundamental earnings per share ($) (1) 1.16 0.77 51% 65%
Fully-diluted shares outstanding (‘000’s) 46,990 45,919 2%
Average period USD/ ZAR exchange rate 10.97 10.08 9%
(1) Fundamental net income and earnings per share are non-GAAP measures and are described below under “Use of Non-GAAP
Measures—Fundamental net income and fundamental earnings per share.” See Attachment B for a reconciliation of GAAP net income to
fundamental net income and earnings per share.
Factors impacting comparability of our Q2 2015 and Q2 2014 results
• Unfavorable impact from the strengthening of the USD against the ZAR: The USD appreciated by 10% against
the ZAR during the second quarter of fiscal 2015, which negatively impacted our reported results;
• Increased contribution by KSNET: Our results were positively impacted by growth in our Korean operations;
• Increase in the number of SASSA grants paid: Our revenue and operating income has increased as a result of the
higher number of SASSA UEPS/EMV cardholders paid during fiscal 2015 compared with 2014; and
• Continued growth in financial inclusion services: We continued to grow our financial inclusion services offerings
during the second quarter of fiscal 2015, which has resulted in higher revenues and operating income from more
sales of low-margin prepaid airtime and UEPS-based lending.
Comments and Outlook
“Our operational and financial performance once again speaks for itself as we continue to deliver meaningful growth in
revenue and earnings,” said Dr. Serge Belamant, Chairman and CEO of Net1. “Our prospects and pipeline are extremely
exciting, particularly as they reflect opportunities in the mobile space, which is the payment paradigm of the future. We are
globalizing, we have the technology, we have the dedicated staff, we have the financial resources and we have the passion.
Carpe Diem! I believe that our efforts, innovations and lateral thinking will be noticed and appreciated by the market and
enhance shareholder value,” he concluded.
“I am thrilled with the sustained top and bottom line growth generated by our core businesses,” said Herman Kotzé, Chief
Financial Officer of Net1. “Given our strategic and operational momentum, for fiscal 2015, we now expect fundamental
earnings per share of at least $2.28, assuming a constant currency base of ZAR10.40/$1 and a share count of 46.5 million
shares,” he concluded.
Results of Operations by Segment and Liquidity
Our operating metrics will be updated and posted on our website (www.net1.com).
South African transaction processing
The South African transaction processing segment consists mainly of pension and welfare benefit distribution services
provided to the South African government, and transaction processing for retailers, utilities, medical-related claim service
customers and banks.
Segment revenue was $58.4 million in Q2 2015, down 1% compared with Q2 2014 in USD and up 10% on a constant
currency basis. In ZAR, the increase in segment revenues was primarily due to more low-margin transaction fees generated
from beneficiaries using the South African National Payment System and more intersegment transaction processing activities.
In addition, revenue from the distribution of social welfare grants grew modestly during the year and was in-line with the
increase in unique welfare cardholder recipients, net of removal of invalid and fraudulent beneficiaries, partially offset by the
loss of MediKredit revenue as a result of the sale of that business. Segment operating income margin in Q2 2015 and Q2
2014 was 22% and 12%, respectively, and has increased primarily due to more higher-margin intersegment transaction
processing activities, the elimination of MediKredit losses and an increase in the number of beneficiaries paid in Q2 2015.
International transaction processing
The International transaction processing segment consists mainly of payment processing services for merchants and card
issuers in South Korea. The segment also includes transaction processing of UEPS-enabled smartcards in Botswana and
transaction processing of medical-related claims in the United States.
KSNET contributes the majority of our revenues and operating income in this segment. Segment revenue was $40.5 million
in Q2 2015, up 7% compared with Q2 2014 in USD and 18% on a constant currency basis. Revenue and operating income
increased primarily due to higher transaction volume at KSNET during Q2 2015. However, operating income for Q2 2015,
was adversely impacted by ad hoc incentives provided to staff due to the strong operating performance of KSNET during
calendar 2014. Segment operating income margin during each of Q2 2015 and Q2 2014 was 14%, respectively.
Financial inclusion and applied technologies
The Financial inclusion and applied technologies segment includes our smart card accounts, lending and life insurance
businesses. This segment also includes the economics from merchants and card holders using our merchant acquiring system,
the sale of prepaid products (electricity and airtime) and the sale of hardware and software.
Segment revenue was $67.5 million in Q2 2015, up 34% compared with Q2 2014 in USD and 48% on a constant currency
basis. Revenue and operating income increased primarily due to higher prepaid airtime sales driven by the rollout of our
prepaid airtime product, an increase in the number of UEPS-based loans as we rolled out our product nationally, and, in ZAR,
an increase in intersegment revenues. Smart Life did not contribute to operating income in Q2 2015 and 2014 due to the FSB
suspension of its license.
Operating income margin for the Financial inclusion and applied technologies segment was 26% during each of the second
quarter of fiscal 2015 and 2014, respectively.
Corporate/eliminations
Corporate/eliminations generally includes acquisition-related intangible asset amortization; expenditure related to compliance
with the Sarbanes-Oxley Act of 2002; non-employee directors’ fees; employee and executive bonuses; stock-based
compensation; legal fees; audit fees; directors and officers insurance premiums; telecommunications expenses; property-
related expenditures including utilities, rental, security and maintenance; and elimination entries.
The decrease in our corporate expenses was primarily due to lower US government investigations-related and US lawsuit
expenses, audit fees and other corporate head office-related expenses.
Cash flow and liquidity
At December 31, 2014, we had cash and cash equivalents of $71.0 million, up from $58.7 million at June 30, 2014. The
increase in our cash balances from June 30, 2014, was primarily due to the expansion of our all of our core businesses during
the quarter, and to a lesser extent due to the cash conservation resulting from the sale of loss-incurring businesses, offset by
provisional tax payments and the scheduled Korean debt repayment in October 2014.
Excluding the impact of interest received, interest paid under our Korean debt and taxes, the increase in cash from operating
activities resulted from improved trading activity during fiscal 2015. Capital expenditures for Q2 2015 and 2014 were $9.1
million and $6.8 million, respectively, and have increased primarily due to the acquisition of more payment processing
terminals in South Korea.
Use of Non-GAAP Measures
US securities laws require that when we publish any non-GAAP measures, we disclose the reason for using the non-GAAP
measure and provide reconciliation to the directly comparable GAAP measure. The presentation of fundamental net income
and fundamental earnings per share and headline earnings per share are non-GAAP measures.
Fundamental net income and fundamental earnings per share
Fundamental net income and earnings per share is GAAP net income and earnings per share adjusted for (1) the amortization
of acquisition-related intangible assets (net of deferred taxes), (2) stock-based compensation charges and (3) unusual non-
recurring items, including the amortization of KSNET debt facility fees and US government investigations-related and US
lawsuit expenses. Management believes that the fundamental net income and earnings per share metric enhances its own
evaluation, as well as an investor’s understanding, of our financial performance. Attachment B presents the reconciliation
between GAAP and fundamental net income and earnings per share.
Headline earnings per share (“HEPS”)
The inclusion of HEPS in this press release is a requirement of our listing on the JSE. HEPS basic and diluted is calculated
using net income which has been determined based on GAAP. Accordingly, this may differ to the headline 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.
HEPS basic and diluted is calculated as GAAP net income adjusted for the profit on sale of property, plant and equipment.
Attachment C presents the reconciliation between our net income used to calculate earnings per share basic and diluted and
HEPS basic and diluted and the calculation of the denominator for headline diluted earnings per share.
Conference Call
We will host a conference call to review Q2 2015 results on February 6, 2015, at 8:00 Eastern Time. To participate in the call,
dial 1-855-481-5362 (US and Canada), 0808-162-4061 (U.K. only) or 0-800-200-648 (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 through March 1, 2015.
About Net1 (www.net1.com)
Net1 is a leading provider of alternative payment systems that leverage its Universal Electronic Payment System (“UEPS”),
to facilitate biometrically secure, real-time electronic transaction processing to unbanked and under-banked populations of
developing economies around the world in an online or offline environment. Net1's UEPS/EMV solution is interoperable
with global EMV standards that seamlessly permit access to all the UEPS functionality in a traditional EMV environment. In
addition to payments, UEPS can be used for banking, healthcare management, payroll, remittances, voting and identification.
Net1 operates market-leading payment processors in South Africa and the Republic of Korea. In addition, Net1's proprietary
MVC technology offers secure mobile payments and banking services in developed and emerging countries.
Net1 has a primary listing on NASDAQ and a secondary listing on the Johannesburg Stock Exchange.
Forward-Looking Statements
This announcement contains forward-looking statements that involve known and unknown risks and uncertainties. A
discussion of various factors that 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:
Dhruv Chopra
Head of Investor Relations
Phone: +1 917-767-6722
Email: dchopra@net1.com
NET 1 UEPS TECHNOLOGIES, INC.
Unaudited Condensed Consolidated Statements of Operations
Three months ended Six months ended
December 31, December 31,
2014 2013 2014 2013
(In thousands, except per share data) (In thousands, except per share data)
REVENUE $ 154,131 $ 137,283 $ 310,572 $ 260,777
EXPENSE
Cost of goods sold, IT processing, servicing
and support 71,774 67,883 146,180 124,442
Selling, general and administration 41,385 40,824 80,121 81,330
Depreciation and amortization 10,157 9,774 20,331 19,803
OPERATING INCOME 30,815 18,802 63,940 35,202
INTEREST INCOME 3,587 3,236 7,677 6,555
INTEREST EXPENSE 1,107 2,226 2,419 3,978
INCOME BEFORE INCOME TAX EXPENSE 33,295 19,812 69,198 37,779
INCOME TAX EXPENSE 10,203 7,099 21,851 13,584
NET INCOME BEFORE EARNINGS FROM
EQUITY-ACCOUNTED INVESTMENTS 23,092 12,713 47,347 24,195
EARNINGS FROM EQUITY-ACCOUNTED
INVESTMENTS 76 47 168 150
NET INCOME 23,168 12,760 47,515 24,345
LESS NET INCOME ATTRIBUTABLE TO
NON-CONTROLLING INTEREST 794 11 1,052 -
NET INCOME ATTRIBUTABLE TO NET1 $ 22,374 $ 12,749 $ 46,463 $ 24,345
Net income per share, in United States dollars
Basic earnings attributable to Net1
shareholders $0.48 $0.28 $0.99 $0.53
Diluted earnings attributable to Net1
shareholders $0.48 $0.28 $0.99 $0.53
NET 1 UEPS TECHNOLOGIES, INC.
Unaudited Condensed Consolidated Balance Sheets
Unaudited (A)
December 31, June 30,
2014 2014
(In thousands, except share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 70,981 $ 58,672
Pre-funded social welfare grants receivable 6,254 4,809
Accounts receivable, net of allowances of – December: $2,175; June: $1,313 128,338 148,067
Finance loans receivable, net of allowances of – December: $4,403; June: $3,083 60,309 53,124
Inventory 12,501 10,785
Deferred income taxes 6,286 7,451
Total current assets before settlement assets 284,669 282,908
Settlement assets 480,962 725,987
Total current assets 765,631 1,008,895
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of –
December: $94,376; June: $91,422 49,361 47,797
EQUITY-ACCOUNTED INVESTMENTS 954 878
GOODWILL 172,237 186,576
INTANGIBLE ASSETS, net of accumulated amortization of – December: $80,189;
June: $78,781 55,884 68,514
OTHER LONG-TERM ASSETS, including reinsurance assets 35,426 38,285
TOTAL ASSETS 1,079,493 1,350,945
LIABILITIES 81,185
CURRENT LIABILITIES
Accounts payable 15,838 17,101
Other payables 39,263 42,257
Current portion of long-term borrowings - 14,789
Income taxes payable 3,094 7,676
Total current liabilities before settlement obligations 58,195 81,823
Settlement obligations 480,962 725,987
Total current liabilities 539,157 807,810
DEFERRED INCOME TAXES 12,676 15,522
LONG-TERM BORROWINGS 59,698 62,388
OTHER LONG-TERM LIABILITIES, including insurance policy liabilities 20,831 23,477
TOTAL LIABILITIES 632,362 909,197
EQUITY
COMMON STOCK
Authorized: 200,000,000 with $0.001 par value;
Issued and outstanding shares, net of treasury - December: 46,547,153;
June: 47,819,299 64 63
PREFERRED STOCK
Authorized shares: 50,000,000 with $0.001 par value;
Issued and outstanding shares, net of treasury: December: -; June: - - -
ADDITIONAL PAID-IN-CAPITAL 211,743 202,401
TREASURY SHARES, AT COST: December: 18,057,228; June: 15,883,212 (214,520) (200,681)
ACCUMULATED OTHER COMPREHENSIVE LOSS (120,504) (82,741)
RETAINED EARNINGS 569,596 522,729
TOTAL NET1 EQUITY 446,379 441,771
NON-CONTROLLING INTEREST 752 (23)
TOTAL EQUITY 447,131 441,748
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,079,493 $ 1,350,945
(A) – Derived from audited financial statements
NET 1 UEPS TECHNOLOGIES, INC.
Unaudited Condensed Consolidated Statements of Cash Flows
Three months ended Six months ended
December 31, December 31,
2014 2013 2014 2013
(In thousands) (In thousands)
Cash flows from operating activities
Net income $ 23,168 $ 12,760 $ 47,515 $ 24,345
Depreciation and amortization 10,157 9,774 20,331 19,803
Earnings from equity-accounted investments (76) (47) (168) (150)
Fair value adjustments (234) 72 179 (61)
Interest payable 140 694 1,299 1,666
Profit on disposal of property, plant and equipment (109) (15) (231) (16)
Stock-based compensation charge 1,035 968 1,951 1,898
Facility fee amortized 52 509 134 578
Increase in accounts receivable, pre-funded social
welfare grants receivable and finance loans
receivable (7,315) (37,977) 2,155 (61,078)
Increase in inventory (622) (2,853) (2,745) (1,842)
Decrease in accounts payable and other payables (1,456) (4,883) (12,389) (13,551)
(Decrease) increase in taxes payable (9,963) (5,559) (3,352) 1,362
Decrease in deferred taxes (168) (691) (558) (1,878)
Net cash provided (used in ) by operating
activities 14,609 (27,248) 54,121 (28,924)
Cash flows from investing activities
Capital expenditures (9,137) (6,845) (18,515) (12,461)
Proceeds from disposal of property, plant and
equipment 373 1,953 614 2,001
Proceeds from sale of business - - 1,895 -
Other investing activities (29) - (29) (1)
Net change in settlement assets 241,652 204,730 198,598 256,503
Net cash provided by investing activities 232,859 199,838 182,563 246,042
Cash flows from financing activities
Repayment of long-term borrowings (14,128) (87,008) (14,128) (87,008)
Long-term borrowings utilized 1,081 - 2,178 -
Acquisition of treasury stock - - (9,151) -
Sale of equity to non-controlling interest - - 1,407 -
Proceeds from issue of common stock - - 989 -
Long-term borrowings obtained - 71,605 - 71,605
Payment of facility fee - (872) - (872)
Proceeds from bank overdraft - 24,580 - 24,580
Acquisition of interests in KSNET - (1,968) - (1,968)
Net change in settlement obligations (241,652) (204,730) (198,598) (256,503)
Net cash used in by financing activities (254,699) (198,393) (217,303) (250,166)
Effect of exchange rate changes on cash (2,973) 495 (7,072) 1,745
Net (decrease) increase in cash and cash
equivalents (10,204) (25,308) 12,309 (31,303)
Cash and cash equivalents – beginning of period 81,185 47,670 58,672 53,665
Cash and cash equivalents – end of period $ 70,981 $ 22,362 $ 70,981 $ 22,362
See Notes to Unaudited Condensed Consolidated Financial Statements
Net 1 UEPS Technologies, Inc.
Attachment A
Operating segment revenue, operating income and operating margin:
Three months ended December 31, 2014 and 2013 and June 30, 2014
Change – constant
Change - actual exchange rate(1)
Q2 ‘15 Q2 ‘15 Q2 ‘15 Q2 ‘15
vs vs vs vs
Key segmental data, in $ ’000, Q2 ‘15 Q2 ‘14 Q1 ‘15 Q2‘14 Q1 ‘15 Q2‘14 Q1 ‘15
Revenue:
South African transaction processing ........... $58,427 $58,754 $60,252 (1%) (3%) 10% 1%
International transaction processing ............. 40,466 37,738 43,204 7% (6%) 18% (2%)
Financial inclusion and applied
technologies .................................................. 67,531 50,480 65,197 34% 4% 48% 8%
Subtotal: Operating segments .............. 166,424 146,972 168,653 13% (1%) 25% 3%
Intersegment eliminations .................... (12,293) (9,689) (12,212) 27% 1% 40% 5%
Consolidated revenue ................... $154,131 $137,283 $156,441 12% (1%) 24% 3%
Operating income:
South African transaction processing ........... $12,883 $7,128 $13,639 81% (6%) 100% (1%)
International transaction processing ............. 5,743 5,139 7,349 12% (22%) 23% (18%)
Financial inclusion and applied
technologies .................................................. 17,827 13,265 17,607 34% 1% 48% 6%
Subtotal: Operating segments .............. 36,453 25,532 38,595 43% (6%) 58% (1%)
Corporate/Eliminations ........................ (5,638) (6,730) (5,470) (16%) 3% (7%) 8%
Consolidated operating income ... $30,815 $18,802 $33,125 64% (7%) 81% (3%)
Operating income margin (%)
South African transaction processing ........... 22% 12% 23%
International transaction processing ............. 14% 14% 17%
Financial inclusion and applied
technologies .................................................. 26% 26% 27%
Consolidated operating margin ............ 20% 14% 21%
(1) – This information shows what the change in these items would have been if the USD/ ZAR exchange rate that prevailed during
the second quarter of fiscal 2015 also prevailed during the second quarter of fiscal 2014 and the first quarter of fiscal 2015.
Six months ended December 31, 2014 and 2013
Change –
constant
Change - exchange
actual rate(1)
F2015 F2015
vs vs
Key segmental data, in ’000, except margins F2015 F2014 F2014 F2014
Revenue:
South African transaction processing ............................... 118,679 115,915 2% 11%
International transaction processing ................................. 83,670 75,279 11% 21%
Financial inclusion and applied technologies ................... 132,728 87,276 52% 65%
Subtotal: Operating segments .................................. 335,077 278,470 20% 31%
Intersegment eliminations ........................................ (24,505) (17,693) 39% 51%
Consolidated revenue ....................................... 310,572 260,777 19% 30%
Operating income:
South African transaction processing ............................... 26,522 13,589 95% 112%
International transaction processing ................................. 13,092 10,663 23% 34%
Financial inclusion and applied technologies ................... 35,434 26,100 36% 48%
Subtotal: Operating segments .................................. 75,048 50,352 49% 62%
Corporate/Eliminations ............................................ (11,108) (15,150) (27%) (20%)
Consolidated operating income ....................... 63,940 35,202 82% 98%
Operating income margin (%)
South African transaction processing ............................... 22% 12%
International transaction processing ................................. 16% 14%
Financial inclusion and applied technologies ................... 27% 30%
Overall operating margin ......................................... 21% 13%
(1) – This information shows what the change in these items would have been if the USD/ ZAR exchange rate that
prevailed during the first half of fiscal 2015 also prevailed during the first half of fiscal 2014.
Net 1 UEPS Technologies, Inc.
Attachment B
Reconciliation of GAAP net income and earnings per share, basic, to fundamental net income and earnings per share,
basic:
Three months ended December 31, 2014 and 2013
EPS, EPS,
Net income basic Net income basic
(USD’000) (USD) (ZAR’000) (ZAR)
2014 2013 2014 2013 2014 2013 2014 2013
GAAP................................................ 22,374 12,749 0.48 0.28 250,737 129,519 5.39 2.83
Intangible asset amortization, net. 2,930 3,104 32,827 31,530
Stock-based compensation charge 1,035 968 11,616 9,834
Facility fees for KSNET debt ...... 52 509 584 5,171
US government investigations-
related and US lawsuit expenses .. 9 1,068 101 10,850
Fundamental ...................... 26,400 18,398 0.57 0.40 295,865 186,904 6.36 4.08
Six months ended December 31, 2014 and 2013
EPS, EPS,
Net income basic Net income basic
(USD’000) (USD) (ZAR’000) (ZAR)
2014 2013 2014 2013 2014 2013 2014 2013
GAAP................................................ 46,463 24,345 0.99 0.53 509,644 245,417 10.87 5.37
Intangible asset amortization, net. 5,838 5,889 64,036 59,367
Stock-based compensation charge 1,951 1,898 21,400 19,134
Facility fees for KSNET debt ...... 134 578 1,470 5,827
US government investigations-
related and US lawsuit expenses .. 136 2,464 1,492 24,839
Fundamental ...................... 54,522 35,174 1.16 0.77 598,042 354,584 12.76 7.75
Net 1 UEPS Technologies, Inc.
Attachment C
Reconciliation of net income used to calculate earnings per share basic and diluted and headline earnings per share
basic and diluted:
Three months ended December 31, 2014 and 2013
2014 2013
Net income (USD’000).......................................................................................................... 22,374 12,749
Adjustments: ..........................................................................................................................
Profit on sale of property, plant and equipment ............................................................... (109) (15)
Tax effects on above ........................................................................................................ 31 4
Net income used to calculate headline earnings (USD’000) ................................................. 22,296 12,738
Weighted average number of shares used to calculate net income per share basic earnings
and headline earnings per share basic earnings (‘000) .......................................................... 46,519 45,776
Weighted average number of shares used to calculate net income per share diluted
earnings and headline earnings per share diluted earnings (‘000) ......................................... 46,644 46,176
Headline earnings per share:..................................................................................................
Basic, in USD .................................................................................................................. 0.48 0.28
Diluted, in USD ............................................................................................................... 0.48 0.28
Six months ended December 31, 2014 and 2013
2014 2013
Net income (USD’000).......................................................................................................... 46,463 24,345
Adjustments: ..........................................................................................................................
Profit on sale of property, plant and equipment ............................................................... (231) (16)
Tax effects on above ........................................................................................................ 65 4
Net income used to calculate headline earnings (USD’000) ................................................. 46,297 24,333
Weighted average number of shares used to calculate net income per share basic earnings
and headline earnings per share basic earnings (‘000) .......................................................... 46,873 45,725
Weighted average number of shares used to calculate net income per share diluted
earnings and headline earnings per share diluted earnings (‘000) ......................................... 46,990 45,919
Headline earnings per share:..................................................................................................
Basic, in USD .................................................................................................................. 0.99 0.53
Diluted, in USD ............................................................................................................... 0.99 0.52
Calculation of the denominator for headline diluted earnings per share
Q2 ‘15 Q2 ‘14 F2015 F2014
Basic weighted-average common shares outstanding and unvested
restricted shares expected to vest under GAAP ............................. 46,519 45,776 46,873 45,725
Effect of dilutive securities under GAAP ................................. 125 400 117 194
Denominator for headline diluted earnings per share ............ 46,644 46,176 46,990 45,919
Weighted average number of shares used to calculate headline earnings per share diluted represent 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 earnings per share
diluted because we do not use the two-class method to calculate headline earnings per share diluted.
Johannesburg
February 6, 2015
Sponsor:
Deutsche Securities (SA) Proprietary Limited
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