Wrap Text
Reports Third 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 Third Quarter 2015 Results
- Q3 2015 Revenue and FEPS of $151.1 million and $0.57, a constant currency increase of 18% and 30%, respectively;
- Cash and equivalents of $111.0 million as of March 31, 2015 and operating cash flow of $49.3 million in Q3 2015.
JOHANNESBURG, May 8, 2015 – Net 1 UEPS Technologies, Inc. (Nasdaq: UEPS; JSE: NT1) today released results for the
third quarter of fiscal 2015.
Summary Financial Metrics
Three months ended March 31,
% change % change
2015 2014 in USD in ZAR
(All figures in USD ‘000s except per share data)
Revenue 151,121 138,126 9% 18%
GAAP net income 24,358 17,182 42% 53%
Fundamental net income (1) 26,519 21,688 22% 32%
GAAP earnings per share ($) 0.52 0.38 39% 50%
Fundamental earnings per share ($) (1) 0.57 0.47 21% 30%
Fully-diluted shares outstanding (‘000’s) 46,739 45,954 2% 2%
Average period USD1:ZAR exchange rate 11.74 10.87 8%
Nine months ended March 31,
% change % change
2015 2014 in USD in ZAR
(All figures in USD ‘000s except per share data)
Revenue 461,693 398,903 16% 25%
GAAP net income 70,821 41,527 71% 84%
Fundamental net income (1) 80,985 57,009 42% 54%
GAAP earnings per share ($) 1.51 0.91 67% 80%
Fundamental earnings per share ($) (1) 1.73 1.25 38% 50%
Fully-diluted shares outstanding (‘000’s) 46,907 45,997 2% 2%
Average period USD1:ZAR exchange rate 11.23 10.38 8%
(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 Q3 2015 and Q3 2014 results
- Unfavorable impact from the strengthening of the USD against the ZAR: The USD appreciated by 8% against the
ZAR during Q3 2015, which negatively impacted our reported results;
- Increased contribution by KSNET: Our results were positively impacted by growth in our Korean operations and a
refund of $1.7 million that had been paid several years ago in connection with industry-wide litigation that has now
been finalized;
- Increase in the number of SASSA grants paid: Our revenue and operating income have 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 Q3 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
“I continue to be very positive about the future of our Group as we continue to diversify our business activities to minimize
the risks that are intrinsic in customer concentration, government contracts and localized business conditions,” said Dr. Serge
Belamant, Chairman and CEO of Net1. “This was our overarching strategic objective and it is a testament of our staff’s
competence and dedication that we were able to achieve this goal whilst continuing to grow our revenue and profitability,” he
concluded.
“Our financial and operating performance, including the increased investment in our newer growth and international
initiatives, continues to track the strategic developments in our business,” said Herman Kotzé, Chief Financial Officer of
Net1. “We are increasing our expected fundamental earnings per share for fiscal 2015 to at least $2.38, assuming a constant
currency base of ZAR10.40/$1 and a share count of 46.5 million shares,” he concluded.
Update on SASSA tender process
As ordered by the South African Constitutional Court in its April 2014 ruling, SASSA initiated a new tender process for a
five-year contract relating to the payment of social grants by issuing an initial Request for Proposal (“RFP“) in October 2014.
Following a detailed analysis of the tender specifications, we concluded that the tender specifications were not sufficiently
clear regarding a number of critical points and failed to comply with the RFP requirements specified in the Court’s ruling
and, in November 2014, we applied to the Court for an order setting aside the RFP and directing SASSA to issue a corrected
RFP. Although the Court did not set aside the RFP, it did order SASSA to issue a draft amended RFP. SASSA issued
amended RFPs on two separate occasions (in December 2014 and February 2015). We continued to object to deficiencies in
the amended RFPs and made further applications to the Court setting forth our objections. In February 2015, SASSA applied
to the Court for an extension of time to address our objections.
In orders dated March 19 and 24, 2015, the Court ordered SASSA to effect further amendments to the RFP to address our
objections. The Court ordered that, absent further objections (1) SASSA must circulate a further amended draft RFP by April
17, 2015; (2) all bids must be submitted by May 17, 2015 and (3) SASSA shall award the new tender by October 15, 2015.
The Court’s April 2014 ruling does not require SASSA to award a new tender, though we expect that any decision not to
make an award would be subject to judicial review and scrutiny. On April 17, 2015, SASSA issued and circulated an
amended RFP to all prospective bidders. The amended RFP specifies that bidders must submit their proposals to SASSA on
or before May 18, 2015 and also states that no part of the contents of the RFP may be used, copied, disclosed or conveyed in
whole or in part to any party in any manner whatsoever other than for the purpose of the proposal.
We are currently analyzing the RFP to determine whether it is in the best interest of the Company to participate in the tender
process or to focus on our other financial services businesses without being a contractor to SASSA. We have not yet made a
final determination but expect to do so by the tender deadline. In any event, we cannot predict what the timing or ultimate
outcome of the tender process will be, or if a new tender award will be made at all after the process is complete.
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 $58.0 million in Q3 2015, up 1% compared with Q3 2014 in USD and up 9% 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 Q3 2015 and Q3
2014 was 23% and 16%, 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 Q3 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 Zazoo start-up costs in the UK and India related to the establishment of
payment solutions and transaction processing operations in these territories, 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 $38.3 million in
Q3 2015, up 9% compared with Q3 2014 in USD and 17% on a constant currency basis. Revenue increased primarily due to
higher transaction volume at KSNET during the third quarter of fiscal 2015. Operating income during Q3 2015 was higher
due to increase in revenue contribution from KSNET, but partially offset by Zazoo start-up costs in the UK and India.
Operating income and margin for the third quarter of fiscal 2015, was also positively impacted by a refund of approximately
$1.7 million that had been paid several years ago in connection with industry-wide litigation that has now been finalized.
Operating income margin for the third quarter of fiscal 2015 and 2014 was 17% and 13%, respectively, and was higher in
fiscal 2015 primarily due to the refund referred to above.
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 $66.8 million in Q3 2015, up 19% compared with Q3 2014 in USD and 28% on a constant currency
basis. Financial inclusion and applied technologies 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, more ad hoc terminal and card sales and, in ZAR, an increase in intersegment revenues. Smart
Life did not contribute to operating income in fiscal 2015 and 2014 due to the FSB suspension of its license. Segment
operating income margin in Q3 2015 and Q3 2014 was 27% and 29%, 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 March 31, 2015, we had cash and cash equivalents of $111.0 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 all of our core businesses, 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 Q3 2015 and 2014 were $6.3
million and $4.8 million, respectively, and have increased primarily due to the acquisition of more payment processing
terminals in South Korea and rollout of ATMs in South Africa.
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; as well as in fiscal 2015, a refund ( net of taxes) related to Korean industry-wide litigation that has now
been finalized. 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 Q3 2015 results on May 8, 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 May 31, 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 Nine months ended
March 31, March 31,
2015 2014 2015 2014
(In thousands, except per share data) (In thousands, except per share data)
REVENUE $ 151,121 $ 138,126 $ 461,693 $ 398,903
EXPENSE
Cost of goods sold, IT processing, servicing
and support 71,094 63,149 217,274 187,591
Selling, general and administration 38,001 40,586 118,122 121,916
Depreciation and amortization 10,060 10,442 30,391 30,245
OPERATING INCOME 31,966 23,949 95,906 59,151
INTEREST INCOME 4,211 3,438 11,888 9,993
INTEREST EXPENSE 941 1,734 3,360 5,712
INCOME BEFORE INCOME TAX EXPENSE 35,236 25,653 104,434 63,432
INCOME TAX EXPENSE 10,305 8,535 32,156 22,119
NET INCOME BEFORE EARNINGS FROM
EQUITY-ACCOUNTED INVESTMENTS 24,931 17,118 72,278 41,313
EARNINGS FROM EQUITY-ACCOUNTED
INVESTMENTS 65 52 233 202
NET INCOME 24,996 17,170 72,511 41,515
LESS (ADD) NET INCOME (LOSS)
ATTRIBUTABLE TO NON-CONTROLLING
INTEREST 638 (12) 1,690 (12)
NET INCOME ATTRIBUTABLE TO NET1 $ 24,358 $ 17,182 $ 70,821 $ 41,527
Net income per share, in United States dollars
Basic earnings attributable to Net1
shareholders $0.52 $0.38 $1.51 $0.91
Diluted earnings attributable to Net1
shareholders $0.52 $0.37 $1.51 $0.90
NET 1 UEPS TECHNOLOGIES, INC.
Unaudited Condensed Consolidated Balance Sheets
Unaudited (A)
March 31, June 30,
2015 2014
(In thousands, except share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 111,002 $ 58,672
Pre-funded social welfare grants receivable 2,853 4,809
Accounts receivable, net of allowances of – March: $2,347; June: $1,313 136,520 148,067
Finance loans receivable, net of allowances of – March: $4,707; June: $3,083 44,935 53,124
Inventory 12,095 10,785
Deferred income taxes 6,828 7,451
Total current assets before settlement assets 314,233 282,908
Settlement assets 651,615 725,987
Total current assets 965,848 1,008,895
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of –
March: $98,213; June: $91,422 48,395 47,797
EQUITY-ACCOUNTED INVESTMENTS 930 878
GOODWILL 169,433 186,576
INTANGIBLE ASSETS, net of accumulated amortization of – March: $82,546;
June: $78,781 51,665 68,514
OTHER LONG-TERM ASSETS, including reinsurance assets 35,781 38,285
TOTAL ASSETS 1,272,052 1,350,945
LIABILITIES 81,185
CURRENT LIABILITIES
Accounts payable 15,341 17,101
Other payables 41,087 42,257
Current portion of long-term borrowings - 14,789
Income taxes payable 10,215 7,676
Total current liabilities before settlement obligations 66,643 81,823
Settlement obligations 651,615 725,987
Total current liabilities 718,258 807,810
DEFERRED INCOME TAXES 11,841 15,522
LONG-TERM BORROWINGS 60,027 62,388
OTHER LONG-TERM LIABILITIES, including insurance policy liabilities 20,250 23,477
TOTAL LIABILITIES 810,376 909,197
COMMITMENTS AND CONTINGENCIES
EQUITY
COMMON STOCK
Authorized: 200,000,000 with $0.001 par value;
Issued and outstanding shares, net of treasury - March: 46,607,153; 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: March: -; June: - - -
ADDITIONAL PAID-IN-CAPITAL 213,264 202,401
TREASURY SHARES, AT COST: March: 18,057,228; June: 15,883,212 (214,520) (200,681)
ACCUMULATED OTHER COMPREHENSIVE LOSS (131,415) (82,741)
RETAINED EARNINGS 593,954 522,729
TOTAL NET1 EQUITY 461,347 441,771
NON-CONTROLLING INTEREST 329 (23)
TOTAL EQUITY 461,676 441,748
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,272,052 $ 1,350,945
(A) – Derived from audited financial statements
NET 1 UEPS TECHNOLOGIES, INC.
Unaudited Condensed Consolidated Statements of Cash Flows
Three months ended Nine months ended
March 31, March 31,
2015 2014 2015 2014
(In thousands) (In thousands)
Cash flows from operating activities
Net income $ 24,996 $ 17,170 $ 72,511 $ 41,515
Depreciation and amortization 10,060 10,442 30,391 30,245
Earnings from equity-accounted investments (65) (52) (233) (202)
Fair value adjustments (449) 110 (270) 49
Interest payable (23) 30 1,276 1,696
Profit on disposal of property, plant and equipment (64) (26) (295) (42)
Stock-based compensation charge 731 922 2,682 2,820
Facility fee amortized 36 79 170 657
Decrease (Increase) in accounts receivable, pre-
funded social welfare grants receivable and finance
loans receivable 3,379 (6,443) 5,534 (67,521)
(Increase) Decrease in inventory (26) 2,821 (2,771) 979
Increase (Decrease) in accounts payable and other
payables 4,735 2,656 (7,654) (10,895)
Increase in taxes payable 7,465 8,069 4,113 9,431
Decrease in deferred taxes (1,467) (1,141) (2,025) (3,019)
Net cash provided by operating activities 49,308 34,637 103,429 5,713
Cash flows from investing activities
Capital expenditures (6,307) (4,848) (24,822) (17,309)
Proceeds from disposal of property, plant and
equipment 163 123 777 2,124
Proceeds from sale of business - - 1,895 -
(Investment in equity in) Repayment of loan by
equity-accounted investment - (25) - (25)
Other investing activities - 571 (29) 570
Net change in settlement assets (188,315) (277,912) 10,283 (21,409)
Net cash used in investing activities (194,459) (282,091) (11,896) (36,049)
Cash flows from financing activities
Repayment of long-term borrowings - - (14,128) (87,008)
Long-term borrowings utilized 798 1,028 2,976 72,633
Acquisition of treasury stock - - (9,151) -
Sale of equity to non-controlling interest - - 1,407 -
Dividends paid to non-controlling interest (1,024) - (1,024) -
Proceeds from issue of common stock 791 88 1,780 88
Payment of facility fee - - - (872)
Proceeds from bank overdraft - - - 24,580
Repayment of bank overdraft - (23,335) - (23,335)
Acquisition of interests in KSNET - - - (1,968)
Net change in settlement obligations 188,315 277,912 (10,283) 21,409
Net cash provided (used in) by financing
activities 188,880 255,693 (28,423) 5,527
Effect of exchange rate changes on cash (3,708) 274 (10,780) 2,019
Net increase (decrease) in cash and cash
equivalents 40,021 8,513 52,330 (22,790)
Cash and cash equivalents – beginning of period 70,981 22,362 58,672 53,665
Cash and cash equivalents – end of period $ 111,002 $ 30,875 $ 111,002 $ 30,875
Net 1 UEPS Technologies, Inc.
Attachment A
Operating segment revenue, operating income and operating margin:
Three months ended March 31, 2015 and 2014 and December 31, 2014
Change – constant
Change - actual exchange rate(1)
Q3 ‘15 Q3 ‘15 Q3 ‘15 Q3 ‘15
vs vs vs vs
Key segmental data, in $ ’000, Q3 ‘15 Q3 ‘14 Q2 ‘15 Q3‘14 Q2 ‘15 Q3‘14 Q2 ‘15
Revenue:
South African transaction processing ........... $57,999 $57,397 $58,427 1% (1%) 9% 4%
International transaction processing ............. 38,311 35,245 40,466 9% (5%) 17% (1%)
Financial inclusion and applied
technologies .................................................. 66,830 56,226 67,531 19% (1%) 28% 4%
Subtotal: Operating segments .............. 163,140 148,868 166,424 10% (2%) 18% 3%
Intersegment eliminations .................... (12,019) (10,742) (12,293) 12% (2%) 21% 2%
Consolidated revenue ................... $151,121 $138,126 $154,131 9% (2%) 18% 3%
Operating income:
South African transaction processing ........... $13,218 $9,137 $12,883 45% 3% 56% 7%
International transaction processing ............. 6,579 4,642 5,743 42% 15% 53% 20%
Financial inclusion and applied
technologies .................................................. 17,906 16,459 17,827 9% 0% 17% 5%
Subtotal: Operating segments .............. 37,703 30,238 36,453 25% 3% 35% 8%
Corporate/Eliminations ........................ (5,737) (6,289) (5,638) (9%) 2% (1%) 6%
Consolidated operating income ... $31,966 $23,949 $30,815 33% 4% 44% 9%
Operating income margin (%)
South African transaction processing ........... 23% 16% 22%
International transaction processing ............. 17% 13% 14%
Financial inclusion and applied
technologies .................................................. 27% 29% 26%
Consolidated operating margin ............ 21% 17% 20%
(1) – This information shows what the change in these items would have been if the USD/ ZAR exchange rate that prevailed during
the third quarter of fiscal 2015 also prevailed during the third quarter of fiscal 2014 and the second quarter of fiscal 2015.
Nine months ended March 31, 2015 and 2014
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 ............................... 176,678 173,312 2% 10%
International transaction processing ................................. 121,981 110,524 10% 19%
Financial inclusion and applied technologies ................... 199,558 143,502 39% 50%
Subtotal: Operating segments .................................. 498,217 427,338 17% 26%
Intersegment eliminations ........................................ (36,524) (28,435) 28% 39%
Consolidated revenue ....................................... 461,693 398,903 16% 25%
Operating income:
South African transaction processing ............................... 39,740 22,726 75% 89%
International transaction processing ................................. 19,671 15,305 29% 39%
Financial inclusion and applied technologies ................... 53,340 42,559 25% 36%
Subtotal: Operating segments .................................. 112,751 80,590 40% 51%
Corporate/Eliminations ............................................ (16,845) (21,439) (21%) (15%)
Consolidated operating income ....................... 95,906 59,151 62% 75%
Operating income margin (%)
South African transaction processing ............................... 22% 13%
International transaction processing ................................. 16% 14%
Financial inclusion and applied technologies ................... 27% 30%
Overall operating margin ......................................... 21% 15%
(1) – This information shows what the change in these items would have been if the USD/ ZAR exchange rate that
prevailed during the year to date fiscal 2015 also prevailed during the year to date 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 March 31, 2015 and 2014
EPS, EPS,
Net income basic Net income basic
(USD’000) (USD) (ZAR’000) (ZAR)
2015 2014 2015 2014 2015 2014 2015 2014
GAAP................................................ 24,358 17,182 0.52 0.38 285,520 186,842 6.13 4.08
Intangible asset amortization, net. 2,743 3,443 32,164 37,431
Refund related to litigation
finalized in Korea, net .................. (1,354) - (15,899) -
Stock-based compensation charge 731 922 8,584 10,026
Facility fees for KSNET debt ...... 36 79 423 859
US government investigations-
related and US lawsuit expenses .. 5 62 59 674
Fundamental ...................... 26,519 21,688 0.57 0.47 310,851 235,832 6.68 5.15
Nine months ended March 31, 2015 and 2014
EPS, EPS,
Net income basic Net income basic
(USD’000) (USD) (ZAR’000) (ZAR)
2015 2014 2015 2014 2015 2014 2015 2014
GAAP................................................ 70,821 41,527 1.51 0.91 794,973 431,054 17.00 9.42
Intangible asset amortization, net. 8,525 9,385 95,694 97,414
Stock-based compensation charge 2,682 2,914 30,106 30,248
Refund related to litigation
finalized in Korea, net .................. (1,354) (15,199) -
Facility fees for KSNET debt ...... 170 657 1,908 6,820
US government investigations-
related and US lawsuit expenses .. 141 2,526 1,583 26,220
Fundamental ...................... 80,985 57,009 1.73 1.25 909,065 591,756 19.44 12.94
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 March 31, 2015 and 2014
2015 2014
Net income (USD’000).......................................................................................................... 24,358 17,182
Adjustments: ..........................................................................................................................
Profit on sale of property, plant and equipment ............................................................... (64) (26)
Tax effects on above ........................................................................................................ 18 7
Net income used to calculate headline earnings (USD’000) ................................................. 24,312 17,163
Weighted average number of shares used to calculate net income per share basic earnings
and headline earnings per share basic earnings (‘000) .......................................................... 46,561 45,776
Weighted average number of shares used to calculate net income per share diluted
earnings and headline earnings per share diluted earnings (‘000) ......................................... 46,739 45,954
Headline earnings per share:..................................................................................................
Basic, in USD .................................................................................................................. 0.52 0.37
Diluted, in USD ............................................................................................................... 0.52 0.37
Nine months ended March 31, 2015 and 2014
2015 2014
Net income (USD’000).......................................................................................................... 70,821 41,527
Adjustments: ..........................................................................................................................
Profit on sale of property, plant and equipment ............................................................... (295) (42)
Tax effects on above ........................................................................................................ 83 12
Net income used to calculate headline earnings (USD’000) ................................................. 70,609 41,497
Weighted average number of shares used to calculate net income per share basic earnings
and headline earnings per share basic earnings (‘000) .......................................................... 46,770 45,742
Weighted average number of shares used to calculate net income per share diluted
earnings and headline earnings per share diluted earnings (‘000) ......................................... 46,907 45,997
Headline earnings per share:..................................................................................................
Basic, in USD .................................................................................................................. 1.51 0.91
Diluted, in USD ............................................................................................................... 1.51 0.90
Calculation of the denominator for headline diluted earnings per share
Q3 ‘15 Q3 ‘14 F2015 F2014
Basic weighted-average common shares outstanding and unvested
restricted shares expected to vest under GAAP ............................. 46,561 45,776 46,770 45,742
Effect of dilutive securities under GAAP ................................. 178 178 137 255
Denominator for headline diluted earnings per share ............ 46,739 45,954 46,907 45,997
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
May 8, 2015
Sponsor:
Deutsche Securities (SA) Proprietary Limited
Date: 08/05/2015 08:44:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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