| Fri 28 Aug 2009, 9:40 | | NT1 - Net 1 UEPS Technologies Inc. - Announces 2009 fourth quarter and year end |
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NT1
NT1
NT1 - Net 1 UEPS Technologies, Inc. - Announces 2009 fourth quarter and year end
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. Announces 2009 Fourth Quarter and Year End Results
JOHANNESBURG, August 27, 2009 - 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 ($) (1) 0.38 0.41 (7)% (2)%
Fully diluted shares outstanding 54,993 57,612 (5)%
(`000`s)
Average period USD/ ZAR exchange rate 8.26 7.80 6%
Year ended June 30,
2009 2008 % %
change change
in USD in ZAR
(All figures in USD `000s except per
share data)
Revenue 246,822 254,056 -3% 19%
GAAP net income 86,601 86,695 0% 22%
Fundamental net income (1) 82,504 88,821 -7% 14%
GAAP earnings per share ($) 1.55 1.52 2% 25%
Fundamental earnings per share ($) (1) 1.47 1.55 -5% 16%
Fully diluted shares outstanding 56,140 57,635 -3%
(`000`s)
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.
Investor Relations Contact:
Dhruv Chopra
Vice President of Investor Relations
Phone: +1-212-626-6675
Email: dchopra@net1.com
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, (In thousands, except
except per share per share data)
data)
REVENUE $61,621 $ 62,231 $246,822 $ 254,056
EXPENSE
Cost of goods sold, IT 18,455 15,653 70,091 67,486
processing, servicing and
support
Selling, general and 16,752 16,447 64,833 65,362
administration
Depreciation and 5,132 2,527 17,082 10,822
amortization
PROFIT ON SALE OF 1,197 - 455 -
MICROLENDING BUSINESS
IMPAIRMENT OF GOODWILL - - 1,836 -
OPERATING INCOME 22,479 27,604 93,435 110,386
FOREIGN EXCHANGE GAIN - - 26,657 -
RELATED TO SHORT-TERM
INVESTMENT
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 18,417 21,098 88,176 86,916
OPERATIONS BEFORE MINORITY
INTEREST AND LOSS FROM
EQUITY-ACCOUNTED INVESTMENTS
MINORITY INTEREST 124 (619) 701 (815)
LOSS FROM EQUITY-ACCOUNTED (77) (235) (874) (1,036)
INVESTMENTS
NET INCOME $ 18,216 $ 21,482 $ 86,601 $ 86,695
Net income per share
Basic earnings, in cents - 33.2 37.5 1.55 1.52
common stock and linked
units
Diluted earnings, in cents - 33.1 37.3 1.54 1.50
common stock and linked
units
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 4,930 35,434
receivable
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 7,147 207
for sale securities
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 4,185 3,766
shareholders loans
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: 59 52
58,434,003; 2008: 53,423,552
SPECIAL CONVERTIBLE PREFERRED STOCK
Authorized shares: 50,000,000 with $0.001
par value;
Issued and outstanding shares: 2009: -; - 5
2008: 4,882,429
B CLASS PREFERENCE SHARES
Authorized shares: 330,000,000 with
$0.001 par value;
Issued and outstanding shares (net of - 6
shares held by the Company): 2009: -;
2008: 35,975,818
ADDITIONAL PAID-IN CAPITAL 126,914 119,283
TREASURY SHARES, AT COST: 2009: 3,927,516; (48,637) (7,950)
2008: 306,269
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 874 1,036
investments
Fair value adjustment (4,402) (269)
Interest payable 425 434
Facility fee amortized 1,100 -
Loss (Profit) on disposal of property, plant 85 (110)
and equipment
Loss on disposal of equity-accounted - -
investment
Profit on disposal of business (455) -
Minority interest 701 (815)
Stock compensation charge, net of 5,026 3,971
forfeitures
Impairment of goodwill 1,836 -
Decrease (Increase) in accounts receivable, 14,639 (9,983)
pre-funded social welfare grants receivable
and finance loans receivable
Decrease in deferred expenditure on smart 50 416
cards
Increase in inventory (81) (1,138)
(Decrease) Increase in accounts payable and (8,788) 24,353
other payables
(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 159 160
and equipment
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 (450) (500)
equity-accounted investments
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 (40,248) 2,864
activities
Effect of exchange rate changes on cash (10,353) (16,973)
Net (decrease) increase in cash and cash (51,689) 100,748
equivalents
Cash and cash equivalents - beginning of 272,475 171,727
year
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
Key segmental data, in `000, USD USD In USD In Constant
except margins Currency(1)
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 13,903 13,817 1% 7%
related technology sales
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 (2,731) 2,123 (229)% (236)%
related technology sales
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 (20)% 15%
related technology sales
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
Key segmental data, in USD USD In USD In Constant
`000, except margins Currency(1)
Revenue:
Transaction-based 148,399 153,444 (3)% 19%
activities
Smart card accounts 29,576 35,914 (18)% 1%
Financial services 5,430 8,251 (34)% (19)%
Hardware, software and 63,417 56,447 12% 38%
related technology sales
Total consolidated revenue 246,822 254,056 (3)% 19%
Consolidated operating
income (loss):
Transaction-based 83,509 84,229 (1)% 22%
activities
Smart card accounts 13,442 16,325 (18)% 1%
Financial services (34) 1,935 (102)% (102)%
Hardware, software and 5,498 11,708 (53)% (42)%
related technology sales
Corporate/ Eliminations (8,980) (3,811) 136% 189%
Total operating income 93,435 110,386 (15)% 4%
Operating income margin
(%)
Transaction-based 56% 55%
activities
Smart card accounts 45% 45%
Financial services (1)% 23%
Hardware, software and 9% 21%
related technology sales
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 Net Income EPS, basic
(USD `000) (USD (ZAR `000) (ZAR cents)
cents)
2009 2008 2009 2008 2009 2008 2009 2008
GAAP 18,216 21,482 33 38 150,414 167,551 274 293
Amortization 2,857 830 23,592 6,476
of
intangible
assets(1)
Customer 3,089 337 25,506 2,630
relation-
ships
Software 804 852 6,642 6,642
and
unpatented
Technology
Trademarks 82 87 679 679
Deferred (1,118) (446) (9,235) (3,475)
tax
benefit
Stock-based 1,158 1,111 9,562 8,665
charge(2)
Profit on (1,197) - (9,884) -
sale of
microlending
business
Change in (67) - (553) -
tax rate (3)
Fundamental 20,967 23,423 38 41 173,131 182,692 316 319
(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, Net income EPS, basic
(USD`000) basic (ZAR`000) (ZAR cents)
(USD
cents)
2009 2008 2009 2008 2009 2008 2009 2008
GAAP 86,601 86,695 155 152 774,187 632,050 1,384 1,106
Amorti- 8,871 3,552 79,314 25,902
zation of
intangible
assets(1)
Customer 9,110 1,443 81,450 10,520
relation-
ships
Software 2,972 3,644 26,569 26,569
and
unpaten-
ted Tech-
nology
Trade- 304 372 2,715 2,715
marks
Deferred (3,515) (1,907) (31,420) (13,902)
tax
benefit
Stock- 5,026 3,971 44,931 28,951
based
charge(2)
JSE 495 - 4,425 -
listing
costs
Facility 1,100 - 9,834 -
fee
Foreign (17,447) - (155,971) -
exchange
gain
related to
a short-
term
investment
, net of
tax of
$6,028
Profit on (455) - (4,068) -
sale of
microlen-
ding
business
Impairment 1,836 - 16,413 -
of
goodwill
Change in (3,523) (5,397) (31,493) (38,484)
tax rate
(3)
Fundamen- 82,504 88,821 147 155 737,572 648,419 1,318 1,134
tal
(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 76 (1)
equipment (USD`000)
Tax effects on above (USD`000) (26) -
Net income used to calculate headline 17,069 21,481
earnings (USD`000)
Weighted average number of shares used to 54,800 57,237
calculate net income per share basic earnings
and headline earnings per share basic
earnings (`000)
Weighted average number of shares used to 54,993 57,612
calculate net income per share diluted
earnings and headline earnings per share
diluted earnings (`000)
Headline earnings per share:
Basic earnings - common stock and linked 31 38
units, in US cents
Diluted earnings - common stock and linked 31 37
units, in US cents
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 85 (110)
equipment (USD`000)
Tax effects on above (USD`000) (29) 39
Net income used to calculate headline 88,038 86,624
earnings (USD`000)
Weighted average number of shares used to 55,953 57,156
calculate net income per share basic earnings
and headline earnings per share basic
earnings (`000)
Weighted average number of shares used to 56,140 57,635
calculate net income per share diluted
earnings and headline earnings per share
diluted earnings (`000)
Headline earnings per share:
Basic earnings - common stock and linked 157 152
units, in US cents
Diluted earnings - common stock and linked 157 150
units, in US cents
28 August 2009
Johannesburg
Sponsor to Net1:
Deutsche Securities (SA) (Proprietary) Limited
Date: 28/08/2009 09:40:01 Produced by the JSE SENS Department.
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