Net 1 UEPS Technologies, Inc. (Nasdaq:UEPS) (JSE:NT1) today
released results for the third quarter fiscal 2018.
- Q3 2018 revenue of $163 million, 10% higher in USD and
Fundamental EPS of $0.95 (including $0.52 fair value adjustment
related to Cell C investment);
- Q3 2018 cash flow from operations of $85.2 million;
- Reiterate FY 2018 constant currency FEPS guidance of at least
$1.61 per share, excluding any fair value adjustments.
Based on recent public statements by the
Minister for Social Development, the South African Post Office and
SASSA, we look forward to being released from the social grants
payment contract by the end of September 2018. This will allow us
to refocus our considerable skills and experience in delivering
commercially compelling services to the unbanked population of
South Africa and in other emerging countries. Our organic growth
developments, along with a number of new opportunities, will
enhance the group’s future prospects as we close out on the social
grants contract that has become a burden on the management and
financial resources of the group. We believe that we are already
the market leaders in terms of cost, scale and distribution in the
provision of bank accounts, credit and insurance products in the
market segments we serve, and we intend to further improve our
product offering and our unmatched ability as the “last mile”
service provider.
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Summary
Financial Metrics |
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|
|
|
Three months ended March 31, |
|
2018 |
|
2017 |
|
% change in USD |
|
% change in ZAR |
(All figures in USD
‘000s except per share data) |
|
|
|
|
|
|
|
|
|
|
Revenue |
162,721 |
|
147,944 |
|
10 |
% |
|
|
(1 |
%) |
|
|
|
|
|
|
|
GAAP net income |
3,009 |
|
18,392 |
|
(84 |
%) |
|
|
(85 |
%) |
|
|
|
|
|
|
|
Fundamental net income
(1) |
53,759 |
|
23,468 |
|
129 |
% |
|
|
109 |
% |
|
|
|
|
|
|
|
GAAP earnings per share
($) |
0.05 |
|
0.34 |
|
(84 |
%) |
|
|
(86 |
%) |
|
|
|
|
|
|
|
Fundamental earnings
per share ($) (1) |
0.95 |
|
0.43 |
|
121 |
% |
|
|
101 |
% |
|
|
|
|
|
|
|
Fully-diluted shares
outstanding (‘000’s) |
56,777 |
|
54,808 |
|
4 |
% |
|
|
|
|
|
|
|
|
|
Average period USD/ ZAR
exchange rate |
11.95 |
|
13.22 |
|
(10 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended March 31, |
|
2018 |
|
2017 |
|
% change in USD |
|
% change in ZAR |
(All figures in USD
‘000s except per share data) |
|
|
|
|
|
|
|
|
|
|
Revenue |
463,695 |
|
455,010 |
|
2 |
% |
|
|
(5 |
%) |
|
|
|
|
|
|
|
GAAP net income |
32,114 |
|
61,665 |
|
(48 |
%) |
|
|
(51 |
%) |
|
|
|
|
|
|
|
Fundamental net income
(1) |
100,656 |
|
71,859 |
|
40 |
% |
|
|
30 |
% |
|
|
|
|
|
|
|
GAAP earnings per share
($) |
0.57 |
|
1.15 |
|
(51 |
%) |
|
|
(55 |
%) |
|
|
|
|
|
|
|
Fundamental earnings
per share ($) (1) |
1.77 |
|
1.34 |
|
32 |
% |
|
|
23 |
% |
|
|
|
|
|
|
|
Fully-diluted shares
outstanding (‘000’s) |
56,842 |
|
53,088 |
|
7 |
% |
|
|
|
|
|
|
|
|
|
Average period USD/ ZAR
exchange rate |
12.89 |
|
13.77 |
|
(6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
(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. |
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|
|
|
|
|
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|
Factors impacting comparability of our
Q3 2018 and Q3 2017 results
- Growth in insurance and
lending businesses: Volume growth and operating
efficiencies in our insurance and lending businesses during Q3 2018
resulted in an improved contribution to our financial inclusion
revenue. However, operating income and operating margin during Q3
2018 was adversely impacted by investments to expand our financial
services offering;
- Ongoing contributions from
EasyPay Everywhere: EPE revenue and operating income
growth was driven primarily by the further expansion of our
customer base driven by our ATM infrastructure;
- Higher equity-accounted
earnings related to DNI and Bank Frick: The acquisition of
49% of DNI and 35% of Bank Frick positively impacted our reported
results by approximately $4.4 million, before amortization of
intangible assets, net of deferred taxes;
- Favorable impact from the
weakening of the U.S. dollar against South African Rand:
The U.S. dollar depreciated by 10% against the ZAR and 8% against
the KRW during Q3 2018, which positively impacted our reported
results;
- Higher revenue from
Masterpayment and severance payments: Masterpayment
contributed higher revenues as a result of an increase in
processing activities, particularly related to its crypto-currency
processing launched in December 2017, which was offset by severance
payments to two of its senior managers as a result of our mutual
agreement to terminate their employment;
- Non-cash impairment loss
related primarily to Masterpayment intangible assets: We
recorded an impairment loss of $19.9 million related to
Masterpayment and Masterpayment Financial Services goodwill;
- Indirect taxes refund in
Korea: We received a refund of indirect taxes of
approximately $2.5 million during Q3 2018 which positively impacted
our reported results;
- Regulatory changes in South
Korea pertaining to fees on card transactions: The impact
of changes to regulations governing the fees that may be charged on
card transactions continues to adversely impact our revenues and
operating income in South Korea as all parties in the payment
process adapt to the new laws and renegotiate their respective
positions in the marketplace;
- Lower net interest income
resulting from strategic investments: Interest income was
$1.8 million lower due to cash utilized for strategic investments.
Interest expense increased due to the South African lending
facility we obtained in August 2017 and March 2018 to partially
fund our investments.
“After years of uncertainty and litigation
relating to the social services contract held by our subsidiary
CPS, we now appear to have more clarity and are likely to be
relieved of our constitutional obligations by September 2018,
allowing us to dedicate all our energies, resources, products and
distribution towards our strategy of providing financial inclusion
services in South Africa and internationally,” said Herman Kotzé,
CEO of Net1. “We planned appropriately for this eventuality, and
the strides we have made and traction we have already gained, give
us increased confidence that Net1 has never been better positioned
to return to being a sustainable and profitable growth company on
an international scale,” he concluded.
“For fiscal 2018, we anticipate our fundamental
earnings per share to remain at least $1.61 per share excluding any
fair value adjustments and in excess of $2.00 per share including
fair value adjustments,” said Alex Smith, CFO of Net1. “Our
guidance assumes a constant currency base of ZAR 13.62/$1, a share
count of 56.6 million shares, and a tax rate of between 34%-36%.
For clarity, our guidance as always is on a constant currency
basis,” he concluded.
Increase in Cell C carrying
value
We have included the fair value adjustment in
respect of our Cell C investment within fundamental earnings per
share (under the line item “net unrealized income on asset
available for sale, net of tax” on Attachment B) as we believe that
the return on this significant investment made by the company needs
to be factored into an assessment of our overall performance. The
uplift in the fair value reflected in the Q3 results reflects the
improving operational performance of Cell C during the period since
our investment. On top of this investment return we are also
starting to see the introduction of new product sets developed
through collaboration between Cell C and Net 1 which should
contribute to our operational performance in future periods. We
will continue to provide guidance on fundamental earnings per share
excluding the fair value adjustments.
Supplemental Presentation for Q3 2018
Results
A supplemental presentation for Q3 2018 will be posted to the
Investor Relations page of our website – ir.net1.com one hour prior
to our earnings call on Friday, May 11, 2018.
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
Segment revenue was $73.5 million in Q3 2018, up
15% compared with Q3 2017 in USD, and 4% higher on a constant
currency basis. The increase in segment revenue was primarily due
to the continued growth in the number of EPE accounts as well as
higher transaction revenue as a result of increased usage of our
ATMs. Operating income decreased however, primarily due to an
increase in inter-segment charges, the impact of annual salary
increases granted to our South African employees in October 2017,
increases in goods and services purchased from third parties and
declining profitability at CPS given the fact that its monthly fee
per grant recipient has been fixed for the last six years. Our
operating income margin for Q3 2018 and 2017 was 17% and 24%,
respectively.
International transaction
processing
Segment revenue of $46.2 million grew modestly
during Q3 2018 compared with Q3 2017, due to an increase in
processing activities, particularly related to Masterpayment’s
crypto-currency processing launched in December 2017. Operating
income during Q3 2018 was adversely impacted by the impairment
loss, lower operating income generated in Korea as a result of the
impact on us of changes to regulations governing the fees that may
be charged on card transactions and severance payments to
Masterpayment managers, partially offset by an ad hoc refund of
indirect taxes of $2.5 million in Korea. Operating (loss) income
margin for Q3 2018 and 2017 was (32%) and 5%, respectively.
Excluding the Masterpayment impairment and the refund of indirect
taxes, segment operating income and margin were $2.4 million and 5%
respectively.
Financial inclusion and applied
technologies
Segment revenue was $59.6 million in Q3 2018, up
5% compared with Q3 2017 in USD and down 5% on a constant currency
basis. Financial inclusion and applied technologies revenue
decreased primarily due to fewer prepaid airtime and other value
added services sales, partially offset by increased volumes in our
insurance and lending businesses, and an increase in inter-segment
revenues. Operating income was also impacted by these factors as
well as an increase in the allowance for doubtful finance loans
receivable resulting from a commensurate increase in our lending
book.
Operating income margin for the Financial
inclusion and applied technologies segment was stable at 25% during
each of Q3 2018 and 2017, respectively, and was impacted by fewer
low margin prepaid product sales, improved revenues from our
insurance businesses and an increase in inter-segment revenues,
offset by annual salary increases granted to our South African
employees.
Corporate/eliminations
Our corporate expenses have decreased primarily
due to lower transaction-related expenditures and lower executive
compensation, which was partially offset by a modest increase in
ZAR denominated goods and services purchased from third parties and
directors’ fees.
Cash flow and liquidity
At March 31, 2018, our cash and cash equivalents
were $87.2 million and comprised mainly ZAR-denominated balances of
ZAR 528.3 million ($44.7 million), KRW-denominated balances of KRW
32.7 billion ($30.8 million), U.S. dollar-denominated balances of
$4.7 million, and other currency deposits, primarily Botswana pula,
of $7.0 million, all amounts translated at exchange rates
applicable as of March 31, 2018. The decrease in our cash balances
from June 30, 2017, was primarily due to our investments in
DNI, Bank Frick, Cell C and a $9.0 million listed note, scheduled
repayments of our South African long-term debt, unscheduled
repayment of Korean debt in full, growth in our South African
lending book, and capital expenditures, which were partially offset
by cash generated by most of our core businesses.
Excluding the impact of interest received,
interest paid under our Korean and South Africa debt and taxes, the
increase in operating cash flow relates primarily to the receipt of
certain working capital loans outstanding, offset partially by the
expansion of our South African lending book and weaker trading
activity. Capital expenditures for Q3 2018 and 2017 were $4.2
million and $1.9 million, respectively, and increased primarily due
to the acquisition of data processing computer equipment and
payment processing terminals in Korea and ATMs in South Africa. We
also paid approximately $11.1 million for an additional 5% interest
in Bank Frick, provided a $10.6 million (ZAR 126.0 million) loan to
DNI and paid $7.5 million (ZAR 89.3 million) for an additional 4%
interest in DNI. Finally, we made a scheduled South African debt
facility payment of $17.7 million (ZAR 187.5 million) and also
utilized this facility to fund our additional investment in DNI. We
also utilized $9.8 million of our overdraft facilities and repaid
$42.6 million of our European facilities.
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 the
amortization of acquisition-related intangible assets (net of
deferred taxes), the amortization of intangible assets (net of
deferred taxes) related to equity-accounted investments,
stock-based compensation charges (reversals), the amortization of
South African and Korean debt facility fees and unusual
non-recurring items, including costs related to acquisitions and
transactions consummated or ultimately not pursued.
Fundamental net income and earnings per share
for fiscal 2018 also includes the Cell C fair value adjustment (net
unrealized income on asset available for sale, net of tax), as well
as adjustments for an impairment loss, an allowance for doubtful
working capital finance receivables, refund of indirect taxes in
Korea, the impact of changes in tax laws in the U.S and a gain
realized on the sale of XeoHealth. Fundamental net income and
earnings per share for fiscal 2017 also includes adjustments for a
refund (net of taxes) related to Korean industry-wide litigation
and US government investigations-related 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.
We provide earnings guidance only on a non-GAAP
basis and do not provide a reconciliation of forward-looking
fundamental earnings per share guidance to the most directly
comparable GAAP financial measures because of the inherent
difficulty in forecasting and quantifying certain amounts that are
necessary for such reconciliation, the amounts of which, based on
past experience, could be material.
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 impairment loss and (profit) loss 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 these
results on May 11, 2018, 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 through June 2, 2018.
About Net1
(www.net1.com)
Net1 is a leading provider of alternative
payment systems that leverage its Universal Electronic Payment
System (“UEPS”) or utilize its proprietary mobile technologies.
The Company operates market-leading payment processors
in South Africa and the Republic of Korea. Net1 offers
debit, credit and prepaid processing and issuing services for Visa,
MasterCard, ChinaUnionPay, Alipay and WeChat across Asia-Pacific,
including China, Europe, Africa, and the United States.
UEPS permits the Company 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 enable 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’s mobile technologies include its
proprietary mobile payments solution - MVC, which offers secure
mobile-based payments, as well as mobile banking and prepaid
value-added services in developed and emerging countries.
Net1 has a primary listing on the 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 ChopraHead of Investor RelationsPhone: +1
917-767-6722Email: dchopra@net1.com
Media Relations Contact:
Bridget von HoldtBusiness Director –
Burson-Marsteller South AfricaPhone: +27-82-610-0650Email:
bridget.vonholdt@bm-africa.com
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|
|
|
Three months ended |
|
Nine months ended |
|
March 31, |
|
March 31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share data) |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
REVENUE |
$ |
|
162,721 |
|
$ |
|
147,944 |
|
$ |
|
463,695 |
|
$ |
|
455,010 |
|
|
|
|
|
|
|
|
|
|
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
goods sold, IT processing, servicing and support |
|
|
77,860 |
|
|
|
70,912 |
|
|
|
226,506 |
|
|
|
219,210 |
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration |
|
|
48,091 |
|
|
|
42,195 |
|
|
|
141,417 |
|
|
|
122,366 |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
9,341 |
|
|
|
10,290 |
|
|
|
27,030 |
|
|
|
31,117 |
|
|
|
|
|
|
|
|
|
|
Impairment loss |
|
|
19,865 |
|
|
|
- |
|
|
|
19,865 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME |
|
|
7,564 |
|
|
|
24,547 |
|
|
|
48,877 |
|
|
|
82,317 |
|
|
|
|
|
|
|
|
|
|
INTEREST INCOME |
|
|
5,154 |
|
|
|
5,124 |
|
|
|
14,903 |
|
|
|
14,489 |
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE |
|
|
2,426 |
|
|
|
467 |
|
|
|
6,872 |
|
|
|
1,773 |
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAX EXPENSE |
|
|
10,292 |
|
|
|
29,204 |
|
|
|
56,908 |
|
|
|
95,033 |
|
|
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE |
|
|
10,941 |
|
|
|
10,233 |
|
|
|
31,280 |
|
|
|
32,320 |
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME
BEFORE EARNINGS FROM EQUITY-ACCOUNTED INVESTMENTS |
|
|
(649 |
) |
|
|
18,971 |
|
|
|
25,628 |
|
|
|
62,713 |
|
|
|
|
|
|
|
|
|
|
EARNINGS FROM
EQUITY-ACCOUNTED INVESTMENTS |
|
|
3,960 |
|
|
|
45 |
|
|
|
7,389 |
|
|
|
778 |
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
|
3,311 |
|
|
|
19,016 |
|
|
|
33,017 |
|
|
|
63,491 |
|
|
|
|
|
|
|
|
|
|
LESS NET INCOME
ATTRIBUTABLE TO NON-CONTROLLING INTEREST |
|
|
302 |
|
|
|
624 |
|
|
|
903 |
|
|
|
1,826 |
|
|
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE
TO NET1 |
$ |
|
3,009 |
|
$ |
|
18,392 |
|
$ |
|
32,114 |
|
$ |
|
61,665 |
|
|
|
|
|
|
|
|
|
|
Net income per
share, in U.S. dollars |
|
|
|
|
|
|
|
|
|
Basic
earnings attributable to Net1 shareholders |
|
$ |
0.05 |
|
|
$ |
0.34 |
|
|
$ |
0.57 |
|
|
$ |
1.16 |
Diluted
earnings attributable to Net1 shareholders |
|
$ |
0.05 |
|
|
$ |
0.34 |
|
|
$ |
0.56 |
|
|
$ |
1.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET 1 UEPS TECHNOLOGIES, INC. |
Unaudited Condensed Consolidated Balance
Sheets |
|
Unaudited |
|
(A) |
|
March 31, |
|
June 30, |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
(In thousands, except share data) |
ASSETS |
CURRENT ASSETS |
|
|
|
|
|
Cash and
cash equivalents |
$ |
87,172 |
|
|
$ |
258,457 |
|
Pre-funded social welfare grants receivable |
|
4,643 |
|
|
|
2,322 |
|
Accounts
receivable, net of allowances of – March: $966; June: $1,255 |
|
120,664 |
|
|
|
111,429 |
|
Finance
loans receivable, net of allowances of – March: $17,622; June:
$7,469 |
|
76,916 |
|
|
|
80,177 |
|
Inventory |
|
11,808 |
|
|
|
8,020 |
|
Deferred
income taxes |
|
- |
|
|
|
5,330 |
|
Total
current assets before settlement assets |
|
301,203 |
|
|
|
465,735 |
|
Settlement assets |
|
394,138 |
|
|
|
640,455 |
|
Total
current assets |
|
695,341 |
|
|
|
1,106,190 |
|
PROPERTY, PLANT AND
EQUIPMENT, net of accumulated depreciation of – March: $145,163;
June: $120,212 |
|
31,592 |
|
|
|
39,411 |
|
EQUITY-ACCOUNTED
INVESTMENTS |
|
185,023 |
|
|
|
27,862 |
|
GOODWILL |
|
182,534 |
|
|
|
188,833 |
|
INTANGIBLE ASSETS, net
of accumulated amortization of – March: $126,533 ; June:
$108,907 |
|
31,428 |
|
|
|
38,764 |
|
DEFERRED INCOME
TAXES |
|
3,363 |
|
|
|
- |
|
OTHER LONG-TERM ASSETS,
including reinsurance assets |
|
271,185 |
|
|
|
49,696 |
|
TOTAL ASSETS |
|
1,400,466 |
|
|
|
1,450,756 |
|
|
|
|
|
|
|
LIABILITIES |
CURRENT
LIABILITIES |
|
|
|
|
|
Short-term credit facilities |
|
3,400 |
|
|
|
16,579 |
|
Accounts
payable |
|
16,995 |
|
|
|
15,136 |
|
Other
payables |
|
43,001 |
|
|
|
34,799 |
|
Current
portion of long-term borrowings |
|
56,446 |
|
|
|
8,738 |
|
Income
taxes payable |
|
14,502 |
|
|
|
5,607 |
|
Total
current liabilities before settlement obligations |
|
134,344 |
|
|
|
80,859 |
|
Settlement obligations |
|
394,138 |
|
|
|
640,455 |
|
Total
current liabilities |
|
528,482 |
|
|
|
721,314 |
|
DEFERRED INCOME
TAXES |
|
17,789 |
|
|
|
11,139 |
|
LONG-TERM
BORROWINGS |
|
19,008 |
|
|
|
7,501 |
|
OTHER LONG-TERM
LIABILITIES, including insurance policy liabilities |
|
2,901 |
|
|
|
2,795 |
|
TOTAL LIABILITIES |
|
568,180 |
|
|
|
742,749 |
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
REDEEMABLE COMMON
STOCK |
|
107,672 |
|
|
|
107,672 |
|
|
|
|
|
|
|
EQUITY |
COMMON
STOCK |
|
|
|
|
|
Authorized: 200,000,000 with $0.001 par value; |
|
|
|
|
|
Issued
and outstanding shares, net of treasury - March: 56,855,187; June:
56,369,737 |
|
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 |
|
275,536 |
|
|
|
273,733 |
|
TREASURY
SHARES, AT COST: March: 24,891,292; June: 24,891,292 |
|
(286,951 |
) |
|
|
(286,951 |
) |
ACCUMULATED OTHER COMPREHENSIVE LOSS |
|
(73,481 |
) |
|
|
(162,569 |
) |
RETAINED
EARNINGS |
|
805,390 |
|
|
|
773,276 |
|
TOTAL
NET1 EQUITY |
|
720,574 |
|
|
|
597,569 |
|
NON-CONTROLLING INTEREST |
|
4,040 |
|
|
|
2,766 |
|
TOTAL EQUITY |
|
724,614 |
|
|
|
600,335 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
1,400,466 |
|
|
$ |
1,450,756 |
|
|
|
|
|
|
|
|
(A) – Derived from
audited financial statements |
|
|
|
|
|
During Q2, 2018, we reclassified redeemable common
stock out of total equity because redeemable common stock is
required to be presented outside of permanent equity. We have
restated these amounts in our unaudited condensed consolidated
balance sheet as at June 30, 2017. Total equity has decreased by
approximately $107.7 million and we have presented the
approximately $107.7 million redeemable common stock outside of
permanent equity. This reclassification has no impact on the
Company’s previously reported consolidated income, comprehensive
income or cash flows. |
|
|
NET 1 UEPS TECHNOLOGIES, INC. |
Unaudited Condensed Consolidated Statements of
Cash Flows |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
March 31, |
|
March 31, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
Net
income |
$ |
3,311 |
|
|
$ |
19,016 |
|
|
$ |
33,017 |
|
|
$ |
63,491 |
|
Depreciation and amortization |
|
9,341 |
|
|
|
10,290 |
|
|
|
27,030 |
|
|
|
31,117 |
|
Earnings
from equity-accounted investments |
|
(3,960 |
) |
|
|
(45 |
) |
|
|
(7,389 |
) |
|
|
(778 |
) |
Interest on
Cedar Cellular note |
|
(587 |
) |
|
|
- |
|
|
|
(769 |
) |
|
|
- |
|
Fair value
adjustments |
|
(110 |
) |
|
|
(50 |
) |
|
|
(209 |
) |
|
|
(61 |
) |
Interest
payable |
|
(17 |
) |
|
|
75 |
|
|
|
(264 |
) |
|
|
84 |
|
Facility
fee amortized |
|
120 |
|
|
|
27 |
|
|
|
467 |
|
|
|
94 |
|
(Profit)
Loss on disposal of property, plant and equipment |
|
(50 |
) |
|
|
(98 |
) |
|
|
71 |
|
|
|
(571 |
) |
Profit on
disposal of business |
|
- |
|
|
|
- |
|
|
|
(463 |
) |
|
|
- |
|
Stock-based
compensation charge (reversal), net |
|
575 |
|
|
|
621 |
|
|
|
2,010 |
|
|
|
(68 |
) |
Dividends
received from equity-accounted investments |
|
1,946 |
|
|
|
- |
|
|
|
4,111 |
|
|
|
370 |
|
Impairment
loss |
|
19,865 |
|
|
|
- |
|
|
|
19,865 |
|
|
|
- |
|
Decrease
(Increase) in accounts receivable, pre-funded social welfare grants
receivable and finance loans receivable |
|
42,558 |
|
|
|
(16,612 |
) |
|
|
9,422 |
|
|
|
(2,261 |
) |
Decrease
(Increase) in inventory |
|
1,072 |
|
|
|
3,893 |
|
|
|
(2,776 |
) |
|
|
308 |
|
Increase
(Decrease) in accounts payable and other payables |
|
2,827 |
|
|
|
(1,486 |
) |
|
|
5,775 |
|
|
|
(4,386 |
) |
Decrease in
taxes payable |
|
9,007 |
|
|
|
6,678 |
|
|
|
8,091 |
|
|
|
5,819 |
|
Decrease in
deferred taxes |
|
(653 |
) |
|
|
(506 |
) |
|
|
(225 |
) |
|
|
(1,752 |
) |
Net cash provided by operating activities |
|
85,245 |
|
|
|
21,803 |
|
|
|
97,764 |
|
|
|
91,406 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
Capital
expenditures |
|
(4,225 |
) |
|
|
(1,949 |
) |
|
|
(7,801 |
) |
|
|
(8,498 |
) |
Proceeds
from disposal of property, plant and equipment |
|
160 |
|
|
|
330 |
|
|
|
575 |
|
|
|
1,344 |
|
Investment
in Cell C |
|
- |
|
|
|
- |
|
|
|
(151,003 |
) |
|
|
- |
|
Investment
in equity of equity-accounted investments |
|
(18,597 |
) |
|
|
- |
|
|
|
(132,335 |
) |
|
|
- |
|
Loans to
equity-accounted investments |
|
(10,635 |
) |
|
|
(2,000 |
) |
|
|
(10,635 |
) |
|
|
(12,044 |
) |
Acquisition
of held to maturity investment |
|
- |
|
|
|
- |
|
|
|
(9,000 |
) |
|
|
- |
|
Investment
in MobiKwik |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(15,347 |
) |
Acquisitions, net of cash acquired |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,651 |
) |
Other
investing activities |
|
- |
|
|
|
- |
|
|
|
(154 |
) |
|
|
- |
|
Net change
in settlement assets |
|
43,222 |
|
|
|
(165,945 |
) |
|
|
280,390 |
|
|
|
54,827 |
|
Net cash provided by (used in) investing
activities |
|
9,925 |
|
|
|
(169,564 |
) |
|
|
(29,963 |
) |
|
|
15,631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
Long-term
borrowings utilized |
|
17,726 |
|
|
|
274 |
|
|
|
113,157 |
|
|
|
521 |
|
Repayment
of long-term borrowings |
|
(15,826 |
) |
|
|
- |
|
|
|
(60,967 |
) |
|
|
(28,493 |
) |
Repayment
from bank overdraft |
|
(42,650 |
) |
|
|
- |
|
|
|
(56,993 |
) |
|
|
- |
|
Proceeds of
bank overdraft |
|
9,802 |
|
|
|
- |
|
|
|
42,372 |
|
|
|
- |
|
Guarantee
fee paid |
|
(202 |
) |
|
|
- |
|
|
|
(754 |
) |
|
|
(1,145 |
) |
Proceeds
from issue of common stock |
|
- |
|
|
|
45,629 |
|
|
|
- |
|
|
|
45,629 |
|
Acquisition
of treasury stock |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(32,081 |
) |
Dividends
paid to non-controlling interest |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(613 |
) |
Net change
in settlement obligations |
|
(43,222 |
) |
|
|
165,955 |
|
|
|
(280,390 |
) |
|
|
(54,817 |
) |
Net cash (used in) provided by financing
activities |
|
(74,372 |
) |
|
|
211,858 |
|
|
|
(243,575 |
) |
|
|
(70,999 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash |
|
1,478 |
|
|
|
4,719 |
|
|
|
4,489 |
|
|
|
8,025 |
|
Net
increase (decrease) in cash, cash equivalents and restricted
cash |
|
22,276 |
|
|
|
68,816 |
|
|
|
(171,285 |
) |
|
|
44,063 |
|
Cash, cash equivalents and restricted cash – beginning of
period |
|
64,896 |
|
|
|
198,891 |
|
|
|
258,457 |
|
|
|
223,644 |
|
Cash, cash equivalents and restricted cash – end of period
(1) |
$ |
87,172 |
|
|
$ |
267,707 |
|
|
$ |
87,172 |
|
|
$ |
267,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Cash, cash equivalents and restricted cash as of
March 31, 2017, includes restricted cash of approximately $44.7
million related to the guarantee issued by FirstRand Bank Limited
(acting through its Rand Merchant Bank division). This cash was
placed into an escrow account and was considered restricted as to
use and therefore was classified as restricted cash. The
restriction lapsed upon expiry of the guarantee. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net 1 UEPS Technologies, Inc. |
|
Attachment A |
|
Operating segment revenue, operating income
and operating margin: |
|
Three months ended March 31, 2018 and 2017 and
December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change - actual |
|
Change – constant exchange
rate(1) |
Key segmental data, in ’000, except margins |
Q3 ‘18 |
|
Q3 ‘17 |
|
Q2 ‘18 |
|
Q3 ‘18vsQ3‘17 |
|
Q3 ‘18vsQ2 ‘18 |
|
Q3 ‘18vsQ3‘17 |
|
Q3 ‘18vsQ2‘18 |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South African
transaction processing |
$ |
73,508 |
|
|
$ |
63,967 |
|
|
$ |
64,148 |
|
|
15 |
% |
|
15 |
% |
|
4 |
% |
|
0 |
% |
International
transaction processing |
|
46,240 |
|
|
|
41,514 |
|
|
|
44,185 |
|
|
11 |
% |
|
5 |
% |
|
1 |
% |
|
(9 |
%) |
Financial inclusion and
applied technologies |
|
59,574 |
|
|
|
56,881 |
|
|
|
54,131 |
|
|
5 |
% |
|
10 |
% |
|
(5 |
%) |
|
(4 |
%) |
Subtotal:
Operating segments |
|
179,322 |
|
|
|
162,362 |
|
|
|
162,464 |
|
|
10 |
% |
|
10 |
% |
|
(0 |
%) |
|
(4 |
%) |
Intersegment eliminations |
|
(16,601 |
) |
|
|
(14,418 |
) |
|
|
(14,048 |
) |
|
15 |
% |
|
18 |
% |
|
4 |
% |
|
3 |
% |
Consolidated revenue |
$ |
162,721 |
|
|
$ |
147,944 |
|
|
$ |
148,416 |
|
|
10 |
% |
|
10 |
% |
|
(1 |
%) |
|
(4 |
%) |
|
|
|
|
|
|
|
|
|
|
Operating
income (loss): |
|
|
|
|
|
|
|
|
|
South African
transaction processing |
$ |
12,719 |
|
|
$ |
15,531 |
|
|
$ |
13,470 |
|
|
(18 |
%) |
|
(6 |
%) |
|
(26 |
%) |
|
(17 |
%) |
International
transaction processing |
|
(14,892 |
) |
|
|
1,968 |
|
|
|
(4,991 |
) |
|
(857 |
%) |
|
198 |
% |
|
(784 |
%) |
|
161 |
% |
Financial inclusion and
applied technologies |
|
14,968 |
|
|
|
14,064 |
|
|
|
12,737 |
|
|
6 |
% |
|
18 |
% |
|
(4 |
%) |
|
3 |
% |
Subtotal:
Operating segments |
|
12,795 |
|
|
|
31,563 |
|
|
|
21,216 |
|
|
(59 |
%) |
|
(40 |
%) |
|
(63 |
%) |
|
(47 |
%) |
Corporate/Eliminations |
|
(5,231 |
) |
|
|
(7,016 |
) |
|
|
(4,909 |
) |
|
(25 |
%) |
|
7 |
% |
|
(33 |
%) |
|
(7 |
%) |
Consolidated operating income |
$ |
7,564 |
|
|
$ |
24,547 |
|
|
$ |
16,307 |
|
|
(69 |
%) |
|
(54 |
%) |
|
(72 |
%) |
|
(59 |
%) |
|
|
|
|
|
|
|
|
|
|
Operating
income margin (%) |
|
|
|
|
|
|
|
|
|
South African
transaction processing |
|
17 |
% |
|
|
24 |
% |
|
|
21 |
% |
|
|
|
|
International
transaction processing |
|
(32 |
%) |
|
|
5 |
% |
|
|
(11 |
%) |
|
|
|
|
Financial inclusion and
applied technologies |
|
25 |
% |
|
|
25 |
% |
|
|
24 |
% |
|
|
|
|
Consolidated operating margin |
|
5 |
% |
|
|
17 |
% |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) – This information shows what the change in
these items would have been if the USD/ ZAR exchange rate that
prevailed during the Q3 2018 also prevailed during Q3 2017 and Q2
2018. |
|
|
|
|
|
|
|
|
|
Nine months ended March 31, 2018 and
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Change - actual |
|
Change – constant exchange
rate(1) |
Key segmental data, in ’000, except margins |
F2018 |
|
F2017 |
|
F2018vsF2017 |
|
F2018vsF2017 |
Revenue: |
|
|
|
|
|
|
South African
transaction processing |
$ |
204,093 |
|
|
$ |
181,397 |
|
|
13 |
% |
|
5 |
% |
International
transaction processing |
|
136,447 |
|
|
|
131,704 |
|
|
4 |
% |
|
(3 |
%) |
Financial inclusion and
applied technologies |
|
168,018 |
|
|
|
179,681 |
|
|
(6 |
%) |
|
(12 |
%) |
Subtotal:
Operating segments |
|
508,558 |
|
|
|
492,782 |
|
|
3 |
% |
|
(3 |
%) |
Intersegment eliminations |
|
(44,863 |
) |
|
|
(37,772 |
) |
|
19 |
% |
|
11 |
% |
Consolidated revenue |
$ |
463,695 |
|
|
$ |
455,010 |
|
|
2 |
% |
|
(5 |
%) |
|
|
|
|
|
|
|
Operating
income: |
|
|
|
|
|
|
South African
transaction processing |
$ |
38,521 |
|
|
$ |
44,451 |
|
|
(13 |
%) |
|
(19 |
%) |
International
transaction processing |
|
(14,567 |
) |
|
|
11,689 |
|
|
(225 |
%) |
|
(217 |
%) |
Financial inclusion and
applied technologies |
|
41,625 |
|
|
|
43,354 |
|
|
(4 |
%) |
|
(10 |
%) |
Subtotal:
Operating segments |
|
65,579 |
|
|
|
99,494 |
|
|
(34 |
%) |
|
(38 |
%) |
Corporate/Eliminations |
|
(16,702 |
) |
|
|
(17,177 |
) |
|
(3 |
%) |
|
(9 |
%) |
Consolidated operating income |
$ |
48,877 |
|
|
$ |
82,317 |
|
|
(41 |
%) |
|
(44 |
%) |
|
|
|
|
|
|
|
Operating
income margin (%) |
|
|
|
|
|
|
South African
transaction processing |
|
19 |
% |
|
|
25 |
% |
|
|
|
International
transaction processing |
|
(11 |
%) |
|
|
9 |
% |
|
|
|
Financial inclusion and
applied technologies |
|
25 |
% |
|
|
24 |
% |
|
|
|
Overall
operating margin |
|
11 |
% |
|
|
18 |
% |
|
|
|
|
|
|
|
|
|
|
(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 of fiscal 2018 also prevailed
during the year to date of fiscal 2017. |
|
|
|
Earnings from equity-accounted
investments: |
|
The table
below presents the relative earnings (loss) from our
equity-accounted investments: |
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2018 |
|
Q3 2017 |
|
% change |
|
F2018 |
|
F2017 |
|
% change |
DNI |
$ |
3,291 |
|
|
$ |
- |
|
nm |
|
|
$ |
5,202 |
|
|
$ |
- |
|
|
nm |
|
Share of
net income |
|
3,628 |
|
|
|
- |
|
nm |
|
|
|
6,868 |
|
|
|
- |
|
|
nm |
|
Amortization of intangible assets, net of deferred tax |
|
(337 |
) |
|
|
- |
|
nm |
|
|
|
(1,666 |
) |
|
|
- |
|
|
nm |
|
Bank Frick |
|
653 |
|
|
|
- |
|
nm |
|
|
|
975 |
|
|
|
- |
|
|
nm |
|
Share of
net income |
|
747 |
|
|
|
- |
|
nm |
|
|
|
1,234 |
|
|
|
- |
|
|
nm |
|
Amortization of intangible assets, net of deferred tax |
|
(94 |
) |
|
|
- |
|
nm |
|
|
|
(259 |
) |
|
|
- |
|
|
nm |
|
Finbond |
|
- |
|
|
|
- |
|
nm |
|
|
|
1,101 |
|
|
|
930 |
|
|
18% |
|
Other |
|
16 |
|
|
|
45 |
|
(64%) |
|
|
|
111 |
|
|
|
(152 |
) |
|
(173%) |
|
Earnings
from equity-accounted investments |
$ |
3,960 |
|
|
$ |
45 |
|
nm |
|
|
$ |
7,389 |
|
|
$ |
778 |
|
|
850% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2018 and
2017 |
|
|
|
|
|
|
|
Net
income(USD’000) |
|
EPS,
basic(USD) |
|
Net income
(ZAR’000) |
|
EPS, basic
(ZAR) |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
3,009 |
|
|
18,392 |
|
0.05 |
|
0.34 |
|
35,951 |
|
|
243,190 |
|
0.63 |
|
4.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
unrealized income on asset available for sale, net of tax |
29,366 |
|
|
- |
|
|
|
|
|
350,863 |
|
|
- |
|
|
|
|
Impairment loss |
19,865 |
|
|
- |
|
|
|
|
|
237,345 |
|
|
- |
|
|
|
|
Intangible asset amortization, net |
2,268 |
|
|
2,772 |
|
|
|
|
|
27,096 |
|
|
36,653 |
|
|
|
|
Refund
related to litigation finalized in Korea, net |
(1,985 |
) |
|
- |
|
|
|
|
|
(23,717 |
) |
|
- |
|
|
|
|
Stock-based compensation charge |
575 |
|
|
621 |
|
|
|
|
|
6,870 |
|
|
8,211 |
|
|
|
|
Intangible asset amortization, net related to equity-accounted
investments |
431 |
|
|
- |
|
|
|
|
|
10,701 |
|
|
- |
|
|
|
|
Facility
fees for debt |
120 |
|
|
27 |
|
|
|
|
|
1,434 |
|
|
357 |
|
|
|
|
Transaction costs |
110 |
|
|
1,439 |
|
|
|
|
|
1,314 |
|
|
19,027 |
|
|
|
|
US
government investigations-related and US lawsuit expenses |
- |
|
|
217 |
|
|
|
|
|
- |
|
|
2,869 |
|
|
|
|
Fundamental |
53,759 |
|
|
23,468 |
|
0.95 |
|
0.43 |
|
647,857 |
|
|
310,307 |
|
11.40 |
|
5.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended March 31, 2018 and
2017 |
|
|
|
|
|
|
|
Net
income(USD’000) |
|
EPS,
basic(USD) |
|
Net income
(ZAR’000) |
|
EPS, basic
(ZAR) |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
32,114 |
|
|
61,665 |
|
|
0.57 |
|
1.15 |
|
414,058 |
|
|
849,009 |
|
|
7.29 |
|
15.82 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
unrealized income on asset available for sale, net of tax |
29,366 |
|
|
- |
|
|
|
|
|
|
378,628 |
|
|
- |
|
|
|
|
|
Impairment loss |
19,865 |
|
|
- |
|
|
|
|
|
|
256,128 |
|
|
- |
|
|
|
|
|
Non-recurring Mastertrading allowance for doubtful accounts |
7,803 |
|
|
- |
|
|
|
|
|
|
100,607 |
|
|
- |
|
|
|
|
|
Intangible asset amortization, net |
6,644 |
|
|
7,637 |
|
|
|
|
|
|
85,666 |
|
|
105,124 |
|
|
|
|
|
Transaction costs |
2,050 |
|
|
2,928 |
|
|
|
|
|
|
26,432 |
|
|
40,313 |
|
|
|
|
|
Stock-based compensation charge |
2,010 |
|
|
(68 |
) |
|
|
|
|
|
25,916 |
|
|
(936 |
) |
|
|
|
|
Refund of
Korean indirect taxes |
(1,985 |
) |
|
- |
|
|
|
|
|
|
(25,593 |
) |
|
- |
|
|
|
|
|
Intangible asset amortization, net related to equity-accounted
investments |
1,925 |
|
|
- |
|
|
|
|
|
|
17,835 |
|
|
- |
|
|
|
|
|
Change in
US tax rate |
860 |
|
|
- |
|
|
|
|
|
|
11,088 |
|
|
- |
|
|
|
|
|
Profit on
sale of Xeo |
(463 |
) |
|
- |
|
|
|
|
|
|
(5,970 |
) |
|
- |
|
|
|
|
|
Facility
fees for debt |
467 |
|
|
94 |
|
|
|
|
|
|
6,021 |
|
|
1,294 |
|
|
|
|
|
Refund
related to litigation finalized in Korea, net |
- |
|
|
(643 |
) |
|
|
|
|
|
- |
|
|
(8,853 |
) |
|
|
|
|
US
government investigations-related and US lawsuit expenses |
- |
|
|
246 |
|
|
|
|
|
|
- |
|
|
3,387 |
|
|
|
|
|
Fundamental |
100,656 |
|
|
71,859 |
|
|
1.77 |
|
1.34 |
|
1,290,816 |
|
|
989,338 |
|
|
22.73 |
|
18.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2018 and
2017 |
|
|
2018 |
|
2017 |
|
|
|
|
Net income
(USD’000) |
3,009 |
|
|
18,392 |
|
Adjustments: |
|
|
|
Impairment loss |
19,865 |
|
|
- |
|
Profit on
sale of property, plant and equipment |
(50 |
) |
|
(98 |
) |
Tax
effects on above |
14 |
|
|
27 |
|
|
|
|
|
Net income used to
calculate headline earnings (USD’000) |
22,838 |
|
|
18,321 |
|
|
|
|
|
Weighted average number
of shares used to calculate net income per share basic earnings and
headline earnings per share basic earnings (‘000) |
56,716 |
|
|
54,639 |
|
|
|
|
|
Weighted average number
of shares used to calculate net income per share diluted earnings
and headline earnings per share diluted earnings (‘000) |
56,777 |
|
|
54,808 |
|
|
|
|
|
Headline earnings per
share: |
|
|
|
Basic, in
USD |
0.40 |
|
|
0.34 |
|
Diluted,
in USD |
0.40 |
|
|
0.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended March 31, 2018 and 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
2017 |
|
|
|
|
Net income
(USD’000) |
32,114 |
|
|
61,665 |
|
Adjustments: |
|
|
|
Impairment loss |
19,865 |
|
|
- |
|
Profit on
sale of business |
(463 |
) |
|
- |
|
Profit on
sale of property, plant and equipment |
(50 |
) |
|
(571 |
) |
Tax
effects on above |
14 |
|
|
160 |
|
|
|
|
|
Net income used to
calculate headline earnings (USD’000) |
51,480 |
|
|
61,254 |
|
|
|
|
|
Weighted average number
of shares used to calculate net income per share basic earnings and
headline earnings per share basic earnings (‘000) |
56,788 |
|
|
52,961 |
|
|
|
|
|
Weighted average number
of shares used to calculate net income per share diluted earnings
and headline earnings per share diluted earnings (‘000) |
56,842 |
|
|
53,088 |
|
|
|
|
|
Headline earnings per
share: |
|
|
|
Basic, in
USD |
0.91 |
|
|
1.16 |
|
Diluted,
in USD |
0.91 |
|
|
1.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of the denominator for headline diluted
earnings per share |
|
|
|
|
|
|
|
|
|
Q3 ‘18 |
|
Q3 ‘17 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
Basic
weighted-average common shares outstanding and unvested restricted
shares expected to vest under GAAP |
56,716 |
|
54,639 |
|
56,788 |
|
52,961 |
Effect of
dilutive securities under GAAP |
61 |
|
169 |
|
54 |
|
127 |
Denominator for headline diluted earnings per share |
56,777 |
|
54,808 |
|
56,842 |
|
53,088 |
|
|
|
|
|
|
|
|
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.
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