Net 1 UEPS Technologies, Inc. Announces 2009 Fourth Quarter and Year End Results
Thu Aug 27, 4:05 PMJOHANNESBURG, Aug. 27 /PRNewswire-FirstCall/ -- Net1 UEPS Technologies, Inc. ("Net1" or the "Company") (Nasdaq: UEPS; JSE: NT1) today announced results for the three months and year ended June 30, 2009. Revenue during 4Q 2009 was $61.6 million, a year over year decline of 1% in US dollars ("USD") but an increase of 5% in constant currency. Earnings per share under US generally accepted accounting principles ("GAAP") in 4Q 2009 was $0.33 versus $0.38 a year ago, a decline of 13% in USD and 8% in constant currency. 4Q 2009 fundamental earnings per share was $0.38 compared to $0.41 in the 4Q 2008, representing a decline of 7% in USD and 2% in constant currency.
Summary Financial Metrics
Three months ended June 30,
---------------------------
2009 2008 % change % change
in USD in ZAR
---- ---- --------- ---------
(All figures in USD '000s
except per share data)
Revenue 61,621 62,231 (1)% 5%
GAAP net income 18,216 21,482 (15)% (10)%
Fundamental net income(1) 20,967 23,423 (10)% (5)%
GAAP earnings per share ($) 0.33 0.38 (13)% (8)%
Fundamental earnings per
share ($)(1) 0.38 0.41 (7)% (2)%
Fully diluted shares
outstanding ('000's) 54,993 57,612 (5)%
Average period USD/ZAR
exchange rate 8.26 7.80 6%
Year ended June 30,
-------------------
2009 2008 % change % change
in USD in ZAR
---- ---- --------- ---------
(All figures in USD '000s
except per share data)
Revenue 246,822 254,056 -3% 19%
GAAP net income 86,601 86,695 0% 22%
Fundamental net income(1) 82,504 88,821 -7% 14%
GAAP earnings per share ($) 1.55 1.52 2% 25%
Fundamental earnings per
share ($) (1) 1.47 1.55 -5% 16%
Fully diluted shares outstanding
('000's) 56,140 57,635 -3%
Average period USD/ZAR exchange
rate 8.94 7.29 23%
(1) Fundamental net income and earnings per share is GAAP net income and earnings per share excluding the amortization of acquisition-related intangible assets, net of deferred taxes, and stock-based compensation charges. In addition, the effects of the change in the Company's fully distributed tax rate from 35.45% to 34.55% in fiscal 2009 (and from 36.89% to 35.45% in fiscal 2008), JSE listing costs, a bank facility fee, an impairment of goodwill, the profit on sale of the Company's traditional microlending business and a foreign exchange gain, net of tax, related to a short-term investment, are excluded in calculating fundamental net income and earnings per share.
The following factors had significant impact on the comparability of our 2009 fourth quarter results to last year:
-- Reporting currency fluctuations: the South African Rand
("ZAR"), which is the Company's functional currency,
depreciated 9% against the USD, the Company's reporting currency,
based on the average exchange rates during the fourth quarter of 2009
compared to last year, which adversely affected reported revenue and net
income;
-- Tax comparison: Fourth quarter 2008 results were favorably impacted by
a reduction in the Company's fully-distributed tax rate, which
became effective in the third quarter of 2008.
-- Additional revenues from BGS acquisition seasonal impact: 2009 includes
$5.8 million in revenue with minimal operating income contribution from
BGS, which the Company did not own during fiscal 2008. In fiscal 2009,
the majority of BGS' earnings were generated during the second
quarter;
-- BGS intangible amortization: Fourth quarter 2009 includes $2.3 million
intangible amortization expense related to the BGS acquisition;
-- Ghana implementation in 2008: Fourth quarter 2008 results were favorably
impacted by $5.0 million in revenue which the Company recorded from the
implementation phase of its UEPS technology in Ghana; and
-- Stock-based compensation: The Company recorded a higher stock-based
compensation charge in fourth quarter 2009 compared to the prior year.
Comments and Outlook
"Our results demonstrate the strength of our business model and the power of our technology, allowing us to take advantage of the difficult global economic environment," said Dr. Serge Belamant, Chairman and Chief Executive Officer of Net1. "Despite our fourth quarter results being adversely impacted by the timing differences between our new pricing structure with SASSA, which was effective April 1, 2009, and the elimination of our pre-funding requirements effective May 1, 2009, we managed to grow our transaction-based activities while maintaining margins, and we remain an integral social welfare distribution supplier to the South African government. We are well-positioned to continue expanding the number of people using our technology and the breadth of services we provide in South Africa as well as other global markets. I remain confident that we will continue to deliver sustainable growth for all of our stake holders," he concluded.
"For fiscal year 2010, we expect to achieve constant currency fundamental earnings per share growth of at least 20%," said Herman Kotze, Chief Financial Officer of Net1. "While our South African pension and welfare business should generate modest growth, given our new contract with SASSA, we expect EasyPay, and new country implementations to be more meaningful contributors to earnings growth in fiscal 2010," he concluded.
Results of operations
Net1's frequently asked questions will be posted on the Company's website (www.net1.com).
Transaction-based activities
Transaction-based activities revenue was $39.2 million, up 3% from 4Q 2008 in US dollars and 9% higher on a constant currency basis. Pension and welfare revenue was modestly lower due to the Company's re-negotiated contract with SASSA which took effect April 1, 2009, but this reduction was offset by continued growth at EasyPay and the merchant processing business. Operating margin for the Transaction-based activities segment was 58%, similar to 4Q 2008. Excluding amortization of intangibles for EasyPay, segment operating margin was 60% in 4Q 2009.
Smart card accounts
Smart card account revenue of $7.6 million declined 10% year-over-year in US Dollars and 4% on a constant currency basis. Operating margin for the segment remained consistent at 45%.
Financial services
Financial services revenue of $0.9 million, was down 56% from 4Q 2008 in US Dollars and 53% lower on a constant currency basis, principally due to the divestiture of the Company's traditional microlending business in 3Q 2009. Operating margin for the segment however, improved significantly to 32% from 27% in 4Q 2008 as a result of the sale of this low-margin business.
Hardware and software
Hardware and software revenue of $13.9 million increased 1% year-over-year in US Dollars and 7% on a constant currency basis. The increase was due primarily to revenue contributions by BGS of $5.8 million in 4Q 2009, which was partially offset by lower contractual revenue from the Company's Ghana contract. Operating loss for the segment was 20% in 4Q 2009 compared to an operating margin of 15% in the year ago quarter, due to high margin sales to Ghana in the prior year and high intangible asset amortization related to the BGS acquisition. Excluding amortization of all intangibles, segment operating margin was 3%.
Cash flow and liquidity
At June 30, 2009, the Company had cash and equivalents of $221 million, up from $121 million at March 31, 2009. For 4Q 2009 and fiscal 2009, the Company generated operating cash flow of $88.8 million and $106.8 million, compared to $29 million and $119 million in 4Q 2008 and fiscal 2008, respectively.
Share Repurchase Program and Repurchase of Brait Shares
During fiscal 2009, the Company repurchased approximately $41 million in stock out of its $50 million authorization, including $16 million in 4Q 2009. In addition, after the close of the 2009 fiscal year, the Company repurchased all Company shares held by Brait SA and its investment affiliates for ZAR 105.98 ($13.50) per share, for an aggregate repurchase price of ZAR 977 million, or $124.5 million. The buyback of Brait's 9,221,526 shares represented 16.9% of the Company's then outstanding shares.
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
Under GAAP, the Company is required to fair value all intangible assets on the date of the acquisition and amortize these intangible assets over their expected useful lives. In addition, under GAAP, the Company is required to measure the fair value of options and other stock-based awards, and recognize a stock-based compensation charge over the requisite service period. The Company's GAAP net income and earnings per share for the three months and year ended June 30, 2009 and 2008, include amortization of intangibles and stock-based compensation, as well as JSE listing costs, a bank facility fee, an impairment of goodwill, the profit on sale of the Company's traditional microlending business and a foreign exchange gain, net of tax, related to a short-term investment. Finally, the effect of the change in the fully distributed tax rate from 35.45% to 34.55% in July 2008 is included in the net income and earnings per share for the year ended June 30, 2009 and the effect of the change in the fully distributed tax rate from 36.89% to 35.45% in January 2008 is included in the Company's net income and earnings per share for the year ended June 30, 2008. The Company excludes all of the above- mentioned amounts when calculating fundamental net income and earnings per share, because management believes that these adjustments enhance its own evaluation, as well as an investor's understanding, of the Company's 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 US 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 of goodwill, the profit on the sale of the Company's traditional microlending business and loss (profit) on sale of property, plant and equipment, net of related tax effects. Attachment C presents the reconciliation between our net income used to calculate earnings per share basic and diluted and HEPS basic and diluted.
Conference Call
Net1 will host a conference call to review fourth quarter results on August 28, 2009, at 8:00 a.m. Eastern Time. To participate in the call, dial 1-800-860-2442 (US only), 1-866-519-5086 (Canada only), 0-800-917-7042 (UK only) or 0-800-200-648 (South Africa only) five 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 10 minutes prior to the call. A webcast of the call will be available for replay on the Net1 website through September 18, 2009.
About Net1 (www.net1.com)
Net1 provides its universal electronic payment system, or UEPS, as an alternative payment system for the unbanked and under-banked populations of developing economies. Our market leading system enables the estimated four billion people who generally have limited or no access to a bank account, to enter affordably into electronic transactions with each other, government agencies, employers, merchants and other financial service providers. Our universal electronic payment system, or UEPS, uses smart cards that operate in real-time but offline, unlike traditional payment systems offered by major banking institutions that require immediate access through a communications network to a centralized computer. This offline capability means that users of the Net1 system can enter into transactions at any time with other card holders even in the most remote areas so long as a portable offline smart card reader is available. In addition to payments and purchases, UEPS can be used for banking, healthcare management, international money transfers, voting and identification.
The Company also focuses on the development and provision of secure transaction technology, solutions and services. The Company's core competencies around secure online transaction processing, cryptography and integrated circuit card (chip/smart card) technologies are principally applied to electronic commerce transactions in the telecommunications, banking, retail, energy and utilities market sectors. Additionally, through our majority-owned subsidiary, BGS Smartcard System AG ("BGS") based in Austria, the Company implements, develops and integrates smart card-based offline and online financial transaction systems in cooperation with banks, enterprises and government authorities in Russia and the other members of the Commonwealth of Independent States.
Net1 has a primary listing on the Nasdaq and a secondary listing on the JSE Limited.
Forward-Looking Statements
This announcement contains forward-looking statements that involve known and unknown risks and uncertainties. A discussion of various factors that cause the Company's actual results, levels of activity, performance or achievements to differ materially from those expressed in such forward-looking statements are included in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to revise any of these statements to reflect future circumstances or the occurrence of unanticipated events.
NET 1 UEPS TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
for the years ended June 30, 2009 and 2008
Three months ended Year ended
------------------ ----------
June 30, June 30,
-------- --------
2009 2008 2009 2008
---- ---- ---- ----
(In thousands, except (In thousands, except
per share data) per share data)
REVENUE $61,621 $62,231 $246,822 $254,056
EXPENSE
Cost of goods sold,
IT processing,
servicing and support 18,455 15,653 70,091 67,486
Selling, general and
administration 16,752 16,447 64,833 65,362
Depreciation and
amortization 5,132 2,527 17,082 10,822
PROFIT ON SALE OF
MICROLENDING BUSINESS 1,197 - 455 -
IMPAIRMENT OF GOODWILL - - 1,836 -
----- ----- ------ ------
OPERATING INCOME 22,479 27,604 93,435 110,386
FOREIGN EXCHANGE GAIN
RELATED TO SHORT-TERM
INVESTMENT - - 26,657 -
INTEREST INCOME, net 3,238 4,870 10,828 15,722
----- ----- ------ ------
INCOME BEFORE INCOME TAXES 25,717 32,474 130,920 126,108
INCOME TAX EXPENSE 7,300 11,376 42,744 39,192
----- ------ ------ ------
NET INCOME FROM CONTINUING
OPERATIONS BEFORE MINORITY
INTEREST AND LOSS FROM
EQUITY-ACCOUNTED
INVESTMENTS 18,417 21,098 88,176 86,916
MINORITY INTEREST 124 (619) 701 (815)
LOSS FROM EQUITY-ACCOUNTED
INVESTMENTS (77) (235) (874) (1,036)
--- ---- ---- ------
NET INCOME $18,216 $21,482 $86,601 $86,695
------- ------- ------- -------
Net income per share
Basic earnings, in cents
- common stock and
linked units 33.2 37.5 1.55 1.52
Diluted earnings, in cents
- common stock and
linked units 33.1 37.3 1.54 1.50
NET 1 UEPS TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
as of June 30, 2009 and 2008
2009 2008
---- ----
(In thousands, except share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $220,786 $272,475
Pre-funded social welfare grants receivable 4,930 35,434
Accounts receivable, net 42,475 21,797
Finance loans receivable, net 2,563 4,301
Deferred expenditure on smart cards 8 78
Inventory 7,250 6,052
Deferred income taxes 12,282 5,597
------ -----
Total current assets 290,294 345,734
OTHER LONG-TERM ASSETS, including available for
sale securities 7,147 207
PROPERTY, PLANT AND EQUIPMENT, net 7,376 6,291
EQUITY-ACCOUNTED INVESTMENTS 2,583 2,685
GOODWILL 116,197 76,938
INTANGIBLE ASSETS, net 75,890 22,216
------ -----
TOTAL ASSETS 499,487 454,071
------- -------
LIABILITIES
CURRENT LIABILITIES
Bank overdraft - -
Accounts payable 5,481 4,909
Other payables 61,454 57,432
Income taxes payable 10,874 14,162
------ ------
Total current liabilities 77,809 76,503
DEFERRED INCOME TAXES 41,737 33,474
INTEREST BEARING LIABILITIES - outside
shareholders loans 4,185 3,766
COMMITMENTS AND CONTINGENCIES - -
--- ---
TOTAL LIABILITIES 123,731 113,743
------- -------
MINORITY INTERESTS 2,539 -
SHAREHOLDERS' EQUITY
COMMON STOCK
Authorized shares: 200,000,000 with $0.001
par value; Issued and outstanding shares:
2009: 58,434,003; 2008: 53,423,552 59 52
SPECIAL CONVERTIBLE PREFERRED STOCK
Authorized shares: 50,000,000 with $0.001 par
value; Issued and outstanding shares:
2009: -; 2008: 4,882,429 - 5
B CLASS PREFERENCE SHARES
Authorized shares: 330,000,000 with $0.001 par
value; Issued and outstanding shares (net of
shares held by the Company): 2009: -;
2008: 35,975,818 - 6
ADDITIONAL PAID-IN CAPITAL 126,914 119,283
TREASURY SHARES, AT COST: 2009: 3,927,516;
2008: 306,269 (48,637) (7,950)
ACCUMULATED OTHER COMPREHENSIVE LOSS (58,472) (37,820)
RETAINED EARNINGS 353,353 266,752
------- -------
TOTAL SHAREHOLDERS' EQUITY 373,217 340,328
------- -------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $499,487 $454,071
-------- --------
NET 1 UEPS TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
for the years ended June 30, 2009 and 2008
2009 2008
---- ----
(In thousands)
Cash flows from operating activities
Net income $86,601 $86,695
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 17,082 10,822
Loss (earnings) from equity-accounted
investments 874 1,036
Fair value adjustment (4,402) (269)
Interest payable 425 434
Facility fee amortized 1,100 -
Loss (Profit) on disposal of property, plant
and equipment 85 (110)
Loss on disposal of equity-accounted investment - -
Profit on disposal of business (455) -
Minority interest 701 (815)
Stock compensation charge, net of forfeitures 5,026 3,971
Impairment of goodwill 1,836 -
Decrease (Increase) in accounts receivable,
pre-funded social welfare grants receivable
and finance loans receivable 14,639 (9,983)
Decrease in deferred expenditure on smart cards 50 416
Increase in inventory (81) (1,138)
(Decrease) Increase in accounts payable and
other payables (8,788) 24,353
(Decrease) Increase in taxes payable (3,339) 1,369
(Decrease) Increase in deferred taxes (4,586) 1,979
------ -----
Net cash provided by operating activities 106,768 118,760
------- -------
Cash flows from investing activities
Capital expenditures (4,770) (3,563)
Proceeds from disposal of property, plant and
equipment 159 160
Acquisition of available for sale securities (3,422) -
Proceeds from disposal of equity-accounted
investment - -
Long-term receivables and loan to
equity-accounted investment repaid - -
Acquisition of BGS, net of cash acquired (97,992) -
Acquisition of RMT, net of cash acquired (1,381) -
Acquisition of Prism Holdings Limited and
remaining 25.1% of EasyPay, net of cash
acquired - -
Acquisition of and advance of loans to
equity-accounted investments (450) (500)
---- ----
Net cash used in investing activities (107,856) (3,903)
-------- ------
Cash flows from financing activities
Proceeds from issue of common stock 271 2,845
Acquisition of treasury stock (Note 18) (39,412) -
Proceeds from short-term loan facility 110,000
Repayment of short-term loan facility (110,000)
Payment of facility fee (1,100)
Proceeds from bank overdraft 2,843 1,462
Repayment of bank overdraft (2,850) (1,443)
Proceeds from interest bearing liabilities - -
--- ---
Net cash (used in) provided by financing
activities (40,248) 2,864
------- -----
Effect of exchange rate changes on cash (10,353) (16,973)
------- -------
Net (decrease) increase in cash and cash
equivalents (51,689) 100,748
Cash and cash equivalents -- beginning of year 272,475 171,727
------- -------
Cash and cash equivalents at end of year $220,786 $272,475
======== ========
Net 1 UEPS Technologies, Inc.
Attachment A
Operating segment revenue, operating income and operating margin for the three months ended June 30, 2009 and 2008:
Three months ended June 30, 2009 and 2008
Q4 '09 Q4 '08 Change
------ ------ ------
In Constant
USD USD In USD Currency(1)
--- --- ------ -----------
Key segmental data, in
'000, except margins
Revenue:
Transaction-based
activities 39,240 38,035 3% 9%
Smart card accounts 7,619 8,445 (10)% (4)%
Financial services 859 1,934 (56)% (53)%
Hardware, software and
related technology sales 13,903 13,817 1% 7%
------ ------
Total consolidated
revenue 61,621 62,231 (1)% 5%
------ ------
Consolidated operating
income (loss):
Transaction-based
activities 22,580 21,912 3% 9%
Smart card accounts 3,463 3,840 (10)% (5)%
Financial services 1,470 524 181% 197%
Hardware, software and
related technology
sales (2,731) 2,123 (229)% (236)%
Corporate/Eliminations (2,303) (795) 190% 207%
------ ----
Total operating
income 22,479 27,604 (19)% (14)%
------ ------
Operating income margin (%)
Transaction-based
activities 58% 58%
Smart card accounts 45% 45%
Financial services 171% 27%
Hardware, software and
related technology
sales (20)% 15%
Overall operating
margin 36% 44%
(1) - This information shows what the change in these items would have
been if the USD/ ZAR exchange rate that prevailed during the
fourth quarter of fiscal 2009 also prevailed during the fourth
quarter of fiscal 2008.
Operating segment revenue, operating income and operating margin for the year ended June 30, 2009 and 2008:
Year ended June 30, 2009 and 2008
2009 2008 Change
---- ---- ------
In Constant
USD USD In USD Currency(1)
Key segmental data, in '000, --- --- ------ -----------
except margins
Revenue:
Transaction-based
activities 148,399 153,444 (3)% 19%
Smart card accounts 29,576 35,914 (18)% 1%
Financial services 5,430 8,251 (34)% (19)%
Hardware, software and
related technology sales 63,417 56,447 12% 38%
------ ------
Total consolidated
revenue 246,822 254,056 (3)% 19%
------- -------
Consolidated operating income
(loss):
Transaction-based
activities 83,509 84,229 (1)% 22%
Smart card accounts 13,442 16,325 (18)% 1%
Financial services (34) 1,935 (102)% (102)%
Hardware, software and
related technology sales 5,498 11,708 (53)% (42)%
Corporate/Eliminations (8,980) (3,811) 136% 189%
------ ------
Total operating income 93,435 110,386 (15)% 4%
------ -------
Operating income margin (%)
Transaction-based
activities 56% 55%
Smart card accounts 45% 45%
Financial services (1)% 23%
Hardware, software and
related technology sales 9% 21%
Overall operating margin 38% 43%
(1) - This information shows what the change in these items would have
been if the USD/ ZAR exchange rate that prevailed during fiscal
2009 also prevailed during fiscal 2008.
Net 1 UEPS Technologies, Inc.
Attachment B
Reconciliation of GAAP net income to fundamental net income:
Three months ended June 30, 2009 and 2008
Net Income EPS, basic
(USD '000) (USD cents)
------------ ----------
2009 2008 2009 2008
---- ---- ---- ----
GAAP 18,216 21,482 33 38
Amortization of intangible assets(1) 2,857 830
Customer relationships 3,089 337
Software and unpatented technology 804 852
Trademarks 82 87
Deferred tax benefit (1,118) (446)
------- ----
Stock-based charge(2) 1,158 1,111
Profit on sale of microlending
business (1,197) -
Change in tax rate (3) (67) -
Fundamental 20,967 23,423 38 41
------ ------
Net Income EPS, basic
(ZAR '000) (ZAR cents)
---------- -----------
2009 2008 2009 2008
---- ---- ---- ----
GAAP 150,414 167,551 274 293
Amortization of intangible assets(1) 23,592 6,476
Customer relationships 25,506 2,630
Software and unpatented technology 6,642 6,642
Trademarks 679 679
Deferred tax benefit (9,235) (3,475)
Stock-based charge(2) 9,562 8,665
Profit on sale of microlending
business (9,884) -
Change in tax rate (3) (553) -
Fundamental 173,131 182,692 316 319
------- -------
(1) Amortization of acquisition related intangibles, net of deferred tax
benefit:
(2) Includes stock-based compensation charges.
(3) Represents the effect of the change in United States tax rate from
34% to 35% during the fourth quarter of fiscal 2009.
Twelve months ended June 30, 2009 and 2008
Net Income EPS, basic
(USD '000) (USD cents)
----------- ---------
2009 2008 2009 2008
---- ---- ---- ----
GAAP 86,601 86,695 155 152
Amortization of intangible assets(1) 8,871 3,552
Customer relationships 9,110 1,443
Software and unpatented technology 2,972 3,644
Trademarks 304 372
Deferred tax benefit (3,515) (1,907)
Stock-based charge(2) 5,026 3,971
JSE listing costs 495 -
Facility fee 1,100 -
Foreign exchange gain related to a
short-term investment, net of
tax of $6,028 (17,447) -
Profit on sale of microlending
business (455) -
Impairment of goodwill 1,836 -
Change in tax rate (3) (3,523) (5,397)
Fundamental 82,504 88,821 147 155
------ ------
Net income EPS, basic
(ZAR '000) (ZAR cents)
----------- ---------
2009 2008 2009 2008
---- ---- ---- ----
GAAP 774,187 632,050 1,384 1,106
Amortization of intangible assets(1) 79,314 25,902
Customer relationships 81,450 10,520
Software and unpatented technology 26,569 26,569
Trademarks 2,715 2,715
Deferred tax benefit (31,420) (13,902)
Stock-based charge(2) 44,931 28,951
JSE listing costs 4,425 -
Facility fee 9,834 -
Foreign exchange gain related to a
short-term investment, net of
tax of $6,028 (155,971) -
Profit on sale of microlending
business (4,068) -
Impairment of goodwill 16,413 -
Change in tax rate (3) (31,493) (38,484)
Fundamental 737,572 648,419 1,318 1,134
------- -------
(1) Amortization of Prism, EasyPay and BGS intangibles, net of deferred
tax benefit:
(2) Includes stock-based compensation charges.
(3) Represents the effect of the change in the fully distributed tax
rate from 35.45% to 34.55% in fiscal 2009 and 36.89% to 35.45%
during fiscal 2008.
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 June 30, 2009 and 2008
2009 2008
---- ----
Net income (USD '000) 18,216 21,482
Adjustments:
Profit on sale of microlending business (1,197) -
Loss (Profit) on sale of property, plant and
equipment (USD '000) 76 (1)
Tax effects on above (USD '000) (26) -
Net income used to calculate headline earnings
(USD '000) 17,069 21,481
------ ------
Weighted average number of shares used to calculate
net income per share basic earnings and headline
earnings per share basic earnings ('000) 54,800 57,237
Weighted average number of shares used to calculate
net income per share diluted earnings and headline
earnings per share diluted earnings ('000) 54,993 57,612
Headline earnings per share:
Basic earnings - common stock and linked units, in
US cents 31 38
Diluted earnings - common stock and linked units,
in US cents 31 37
Year ended June 30, 2009 and 2008
2009 2008
---- ----
Net income (USD '000) 86,601 86,695
Adjustments:
Profit on sale of microlending business (455) -
Impairment of goodwill 1,836 -
Loss (Profit) on sale of property, plant and
equipment (USD '000) 85 (110)
Tax effects on above (USD '000) (29) 39
Net income used to calculate headline earnings
(USD '000) 88,038 86,624
------ ------
Weighted average number of shares used to calculate
net income per share basic earnings and headline
earnings per share basic earnings ('000) 55,953 57,156
Weighted average number of shares used to calculate
net income per share diluted earnings and headline
earnings per share diluted earnings ('000) 56,140 57,635
Headline earnings per share:
Basic earnings - common stock and linked units, in
US cents 157 152
Diluted earnings - common stock and linked units,
in US cents 157 150
SOURCE Net 1 UEPS Technologies, Inc.
158.94 (1.43%)
