Wrap Text
Net1 files amended 2018 10-K with SEC, no change to equity, total assets and FEPS
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")
Net1 files amended 2018 10-K with SEC, no change to equity, total assets and FEPS
JOHANNESBURG, December 7, 2018 – Net1 (Nasdaq: UEPS; JSE: NT1) today announced that it has filed an amended
Form 10-K with the United States Securities and Exchange Commission (“SEC”) which contains restated financial
statements for its year ended June 30, 2018. The Company has released its amended annual report for the effects disclosed in
the SENS filing made on November 9, 2018. The Company has updated its 2018 annual report to reflect this restatement and
has posted an amended 2018 annual report to its website, which is available at
http://ir.net1.com/phoenix.zhtml?c=73876&p=irol-reportsAnnual.
Use of Non-GAAP Measures
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 (loss) 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 impairment loss, loss on the acquisition of DNI
and (profit) loss on sale of property, plant and equipment. Attachment B 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.
About Net1
Net1 is a leading provider of transaction processing services, financial inclusion products and services and secure payment
technology. Net1 operates market-leading payment processors in South Africa and the Republic of Korea. Net1 offers debit,
credit and prepaid processing and issuing services for all major payment networks. In South Africa, Net1 provides innovative
low-cost financial inclusion products, including banking, lending and insurance, and is a leading distributor of mobile
subscriber starter packs for Cell C, a South African mobile network operator. Net1 leverages its strategic equity investments
in Finbond and Bank Frick (both regulated banks), and Cell C to introduce products to new customers and geographies. 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 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
Media Relations Contact:
Bridget von Holdt
Business Director – BCW
Phone: +27-82-610-0650
Email: bridget.vonholdt@bm-africa.com
Net 1 UEPS Technologies, Inc.
Attachment A
Reconciliation of net income used to calculate earnings per share basic and diluted and headline earnings per share
basic and diluted:
Year ended June 30, 2018, including by fiscal quarter
2018 Q4 Q3 Q2 Q1
Net income (USD’000)......................................................................... 64,349 2,869 32,375 9,622 19,483
Adjustments: .........................................................................................
Impairment loss............................................................................... 20,917 1,052 19,865 - -
Re-measurement loss resulting from acquisition of DNI ................ 4,614 4,614 - - -
Profit on sale of business ................................................................ (463) - - (463) -
Loss (Profit) on sale of property, plant and equipment ................... 40 (31) (50) 16 105
Tax effects on above ....................................................................... (11) 8 14 (4) (29)
Net income used to calculate headline earnings (USD’000) ................ 89,446 8,512 52,204 9,171 19,559
Weighted average number of shares used to calculate net income per
share basic earnings and headline earnings per share basic earnings
(‘000) .................................................................................................... 56,807 56,773 56,716 56,755 57,196
Weighted average number of shares used to calculate net income per
share diluted earnings and headline earnings per share diluted
earnings (‘000) ..................................................................................... 56,858 56,816 56,777 56,807 57,243
Headline earnings per share:.................................................................
Basic, in USD ................................................................................. 1.57 0.15 0.92 0.16 0.34
Diluted, in USD .............................................................................. 1.57 0.15 0.92 0.16 0.34
Calculation of the denominator for headline diluted (loss) earnings per share
2018 Q4 Q3 Q2 Q1
Basic weighted-average common shares outstanding and unvested
restricted shares expected to vest under GAAP ............................. 56,807 56,773 56,716 56,755 57,196
Effect of dilutive securities under GAAP ................................. 51 43 61 52 47
Denominator for headline diluted earnings per share ............ 56,858 56,816 56,777 56,807 57,243
Weighted average number of shares used to calculate headline (loss) 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 (loss) earnings per share
diluted because we do not use the two-class method to calculate headline earnings per share diluted.
Johannesburg
December 7, 2018
Sponsor:
Rand Merchant Bank, a division of FirstRand Bank Limited
Date: 07/12/2018 07:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.