Form 8-K NET 1 UEPS TECHNOLOGIES For: May 06

May 6, 2021 4:09 PM EDT

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Exhibit 99.1

Net 1 Reports Third Quarter 2021 Results

JOHANNESBURG, May 6, 2021 - Net 1 UEPS Technologies, Inc. (Nasdaq: UEPS; JSE: NT1) today released results for the third fiscal quarter ended March 31, 2021.

Recent Developments:

  • Net increase of approximately 27,000 EasyPay Everywhere (EPE) account holders;
  • Non-cash increase of $10.8 million, before tax effect, in the fair value of investment in MobiKwik;
  • Sale of entire interest in Bank Frick for $30 million;
  • Reduction of IPG operating loss from $3.2 million in Q2, 2021, to $1.2 million in Q3, 2021, excluding the impact of the $3.6 million once-off payment to terminate all arrangements with Bank Frick and settle all related liabilities, of which $1.4 million and 2.2 million was expensed during Q2, 2021 and Q3, 2021, respectively;
  • At March 31, 2021, unrestricted cash of $208 million and no debt;
  • Revenue of $28.8 million, a  decrease of 17% from Q3 2020;
  • Operating loss of $(14.3) million;
  • GAAP EPS of $(0.11) and Fundamental EPS of $(0.24); and
  • Adjusted EBITDA loss of $(12.8) million, flat compared to Q2 2021.

"We have made a lot of operational progress over the past quarter in exiting our loss-making European operations and preparing the South African operations for significant account growth," said Alex Smith, Net1's interim CEO and CFO. "We are making progress in our mission of driving financial inclusion for the underserved market having recently hired a new dynamic, highly accomplished and experienced CEO of Net1 Southern Africa, Lincoln Mali, who is well respected and experienced in the South African financial services and banking industry. Our new strategy, mission and leadership has also enabled us to attract some amazing new talent among the senior management ranks," he concluded.

Summary Financial Metrics

      Q3 2021     Q3 2020     Q2 2021    

Q3 '21 vs

Q3 '20

 

Q3 '21 vs

Q2 '21

 

Q3 '21 vs

Q3 '20

 

Q3 '21 vs

Q2 '21

 
           

(as

restated)(1)

       
(All figures in USD '000s except per share data)   USD '000's
(except per share data)
    % change in USD     % change in ZAR  
Revenue   28,828     34,614     32,305     (17%)     (11%)     (19%)     (14%)  
                                             
GAAP operating loss   (14,292 )   (14,212 )   (15,205 )   1%     (6%)     (2%)     (9%)  
                                             
Adjusted EBITDA (loss)(2)   (12,823 )   (6,423 )   (12,792 )   100%     0%     94%     (3%)  
                                             
GAAP (loss) earnings per share ($)   (0.11 )   (0.61 )   (0.08 )   (82%)     38%     (82%)     33%  
  Continuing   (0.11 )   (0.85 )   (0.08 )   (87%)     38%     (87%)     33%  
  Discontinued   -     0.24     -     nm     nm     nm     nm  
                                             
Fundamental loss per share ($)(2)   (0.24 )   (0.11 )   (0.24 )   118%     -     112%     (3%)  
                                             
Fully-diluted shares outstanding ('000's)   56,921     56,803     56,641     0%     0%     nm     nm  
                                             
Average period USD/ ZAR exchange rate   14.96     15.37     15.47     (3%)     (3%)     nm     nm  



 

 

F2021

 

F2020

 

F2021 vs  F2020

 

F2021 vs  F2020

 

 

 

 

(as

restated)(1)

 

 

(All figures in USD '000s except per share data)

USD '000's

(except per share data)

% change in USD

 

% change in ZAR

Revenue

96,269

 

119,748

 

(20%)

 

(19%)

 

 

 

 

 

 

 

 

 

GAAP operating loss

(40,272)

 

(31,068)

 

30%

 

31%

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (loss)(2)

(35,438)

 

(17,399)

 

104%

 

106%

 

 

 

 

 

 

 

 

 

GAAP (loss) earnings per share ($)

(0.70)

 

(0.69)

 

1%

 

2%

 

Continuing

(0.70)

 

(1.03)

 

(32%)

 

(31%)

 

Discontinued

-

 

0.34

 

nm

 

nm

 

 

 

 

 

 

 

 

 

Fundamental loss per share ($)(2)

(0.71)

 

(0.22)

 

223%

 

226%

 

 

 

 

 

 

 

 

 

Fully-diluted shares outstanding ('000's)

56,895

 

56,646

 

0%

 

nm

 

 

 

 

 

 

 

 

 

Average period USD/ ZAR exchange rate

16.12

 

15.96

 

1%

 

nm

(1) 2020 has been restated to correct an error with respect to the recognition of certain revenue and related cost of goods sold, IT processing, servicing and support. The financial information for the three and nine months ended March 31, 2020, has been restated with the effect of decreasing revenue by $1.9 million and $5.3 million, respectively. Refer to Note 1 to our unaudited condensed consolidated financial statements.

(2) Adjusted EBITDA (loss), fundamental loss and fundamental loss per share are non-GAAP measures and are described below under "Use of Non-GAAP Measures-EBITDA and Adjusted EBITDA, and -Fundamental net (loss) income and fundamental (loss) earnings per share." See Attachment B for a reconciliation of GAAP operating loss to EBITDA (loss) and Adjusted EBITDA (loss), and GAAP net loss to fundamental net loss and loss per share.

Business update related to COVID-19 pandemic

The COVID-19 pandemic did not impact our South African operations as severely during the three and nine months ended March 31, 2021, compared to the last four months of the year ended June 30, 2020. South Africa has been at an adjusted Level 1 since March 1, 2021. On December 28, 2020, the country moved back to Level 3 restrictions which remained in place through to February 28, 2021. South Africa operates with a five-level COVID-19 alert system, with Level 1 being the least restrictive and Level 5 being the most restrictive. The country went into lockdown (Level 5) towards the end of March 2020 and gradually eased restrictions for the remainder of the 2020 calendar year (to Level 4 from May 1, to Level 3 from June 1, to Level 2 from August 18 and to Level 1 from September 21). The increase at the end of December 2020 back to Level 3 was in response to a second wave of infections, which was more severe than the first wave. The South Africa government commenced its vaccination program in early calendar 2021, with a stated goal of vaccinating 67% of the South African population by the end of calendar year. With the winter months approaching, there are concerns over the potential for a third wave, particularly as there have been several delays in the vaccination program to date.

Factors impacting comparability of our Q3 2021 and Q3 2020 results

 Lower revenue: Our revenues decreased 19% in ZAR primarily due to fewer prepaid airtime and hardware sales and lower account fee revenue;

 Ongoing operating losses: Operating costs are largely in line with the prior period in ZAR due to the largely fixed cost nature of the cost base. As a result, we continue to experience operating losses because of depressed revenues;

 Once-off termination payment: During Q3 2021, we made a payment of $3.6 million to the Frick Family Foundation to terminate all existing arrangements with Bank Frick and settle all liabilities related to IPG's activities with Bank Frick;

 Non-cash increase in fair value of MobiKwik: We recorded a non-cash fair value gain during Q3 2021 of $10.8 million related to the change in fair value of MobiKwik; and

 Foreign exchange movements: The U.S. dollar was 3% weaker against the ZAR during Q3 2021, which impacted our reported results.

Results of Operations by Segment and Liquidity

Processing

Segment revenue, excluding IPG, was $18.7 million in Q3 2021, down  13% compared with Q3 2020 and down  7% compared with Q2 2021 on a constant currency basis. Excluding IPG, segment revenue decreased primarily due to fewer prepaid airtime sales and a reduction in volume-driven transaction fees. Excluding IPG, Processing's operating loss has been impacted by lower revenue and by an increase in transaction-based costs. Our revenue for Q3 2020 was adversely impacted by ZAR 8.2 million ($0.5 million) as a result of the COVID-19 pandemic as we were unable to charge certain cash withdrawal fees to customers as a result of the lockdown during the last few days of March 2020. Our operating loss for the Q3 2020 also includes the impact of the $6.4 million impairment losses. IPG's operating loss for the quarter primarily related to the closure of its operations, which is at an advanced stage, and we expect reduced operating losses and cash burn going forward. Our operating loss margin (calculated as operating (loss) income divided by revenue) for Q3 2021 and 2020 was  (57.7%) and  (56.1%), respectively. Excluding IPG, our operating loss margin for the Processing segment was  (39.9%) and  (44.1%) during the Q3 2021 and 2020, respectively. Excluding the impairment losses, our operating loss and operating loss margin for the Processing segment was $6.1 million and  (27.4%), respectively, during Q3 2020.


Financial services

Segment revenue was $10.2 million in Q3 2021, down  15% on a constant currency basis compared with Q3 2020 and up from $9.7 million compared to Q2 2021. Segment revenue decreased due to lower account fee revenue and a modest reduction in lending revenue, whilst insurance revenues increased compared to the prior period. The increase in operating loss is primarily due to the lower account fee revenue and the increase in insurance-related claims experienced this quarter attributed to the second wave of the pandemic. Our operating loss margin for the Q3 2021 and 2020 was  (20.7%) and  (14.6%), respectively.

Technology

Segment revenue was $2.0 million in Q3 2021, down  51%, compared with Q3 2020, and down  57% compared with Q2 2021 on a constant currency basis. Segment revenue decreased significantly due to fewer hardware sales from one product line compared to the prior period, though partially offset by increases in other hardware product lines. Operating income for Q3 2021 was directly impacted by the lower revenue compared with fiscal 2020. Our operating income margin for the Technology segment was  6.5% and  23.4% during Q3 2021 and 2020, respectively.

Corporate/eliminations

Our corporate expenses for fiscal 2020 includes a $0.7 million impairment loss and net unrealized foreign exchange gains of $1.9 million compared with net unrealized foreign exchange gains of $0.6 million recorded in fiscal 2021.

Cash flow and liquidity

At March 31, 2021, our cash and cash equivalents were $207.8 million and comprised of U.S. dollar-denominated balances of $171.2 million, ZAR-denominated balances of ZAR 0.5 billion ($34.1 million), and other currency deposits, primarily Botswana pula, of $2.4 million, all amounts translated at exchange rates applicable as of March 31, 2021. The decrease in our unrestricted cash balances from June 30, 2020, was primarily due to the payment of Federal income taxes, weak trading activities and an increase in our lending book, which was partially offset by the receipt of the outstanding proceeds related to the sale of our Korean business, receipt of proceeds related to the disposal of Bank Frick and the receipt of the outstanding loan related to the disposal of our remaining interest in DNI.

Excluding the impact of income taxes, cash used in operating activities during Q3 2021 was impacted by the cash losses incurred by the majority of our continuing operations. Net cash used in operating activities during Q3 2020 includes the contribution from our Korean operations for January and February 2020. Capital expenditures for Q3 2021 and 2020 were $0.6 million and $1.0 million, respectively.

Conference Call

We will host a conference call to review these results on May 7, 2021, 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.

Participants are now able to pre-register for the May 7, 2021, conference call by navigating to https://www.diamondpass.net/ 9167989. Participants utilizing this pre-registration service will receive their dial-in number upon registration.

Use of Non-GAAP Measures

U.S. securities laws require that when we publish any non-GAAP measures, we disclose the reason for using these non-GAAP measures and provide reconciliations to the most directly comparable GAAP measures. The presentation of EBITDA, adjusted EBITDA, fundamental net (loss) income and fundamental (loss) earnings per share and headline (loss) earnings per share are non-GAAP measures.

EBITDA and adjusted EBITDA

Earnings before interest, tax, depreciation and amortization ("EBITDA") is GAAP operating (loss) income adjusted for depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for costs related to acquisitions and transactions consummated or ultimately not pursued.

 


Fundamental net (loss) income and fundamental (loss) earnings per share

Fundamental net (loss) income and (loss) earnings per share is GAAP net (loss) income and (loss) earnings per share adjusted for the amortization of acquisition-related intangible assets (net of deferred taxes), stock-based compensation charges, and unusual non-recurring items, including costs related to acquisitions and transactions consummated or ultimately not pursued.

Fundamental net (loss) income and (loss) earnings per share for fiscal 2021 also includes adjustments related to changes in the fair value of equity securities, loss on disposal of equity-accounted investments, impairment losses related to our equity-accounted investment and the deferred tax liability reversal related to the impairment of the equity-accounted investment, and fiscal 2020 also includes an adjustment for the impairment losses related to our equity-accounted investments, the gain related to the disposal of Net1 Korea, the gain related to the disposal of FIHRST, interest related to SASSA implementation costs refund.

Management believes that the EBITDA, adjusted EBITDA, fundamental net (loss) income and (loss) earnings per share metrics enhance its own evaluation, as well as an investor's understanding, of our financial performance. Attachment B presents the reconciliation between GAAP operating income and EBITDA and adjusted EBITDA; and GAAP net (loss) income and (loss) earnings per share and fundamental net (loss) income and (loss) earnings per share.

Headline (loss) earnings per share ("H(L)EPS")

The inclusion of H(L)EPS in this press release is a requirement of our listing on the JSE. H(L)EPS basic and diluted is calculated using net (loss) income which has been determined based on GAAP. Accordingly, this may differ to the headline (loss) 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.

H(L)EPS basic and diluted is calculated as GAAP net (loss) income adjusted for the impairment losses related to our equity-accounted investments, loss on disposal of equity-accounted investments, the gain related to the disposal of Net1 Korea. gain on disposal of FIHRST, and (profit) loss on sale of property, plant and equipment. Attachment C presents the reconciliation between our net (loss) income used to calculate (loss) earnings per share basic and diluted and HE(L)PS basic and diluted and the calculation of the denominator for headline diluted (loss) earnings per share.

About Net1

Net1 is a South African-focused financial technology company with a presence in Africa and Asia. Net1 utilizes its proprietary banking and payment technology to distribute low-cost financial and value-added services to underserved consumers and small businesses. The Company also provides transaction processing services, including being a payment processor and bill payment platform in South Africa. Net1 leverages its strategic investments in banks, telecom and mobile payment technology companies to further expand its product offerings or to enter new markets.

Net1 has a primary listing on NASDAQ (NasdaqGS: UEPS) and a secondary listing on the Johannesburg Stock Exchange (JSE: NT1). Visit www.net1.com for additional information about Net1.

Forward-Looking Statements

This announcement contains forward-looking statements that involve known and unknown risks and uncertainties. A discussion of various factors that may 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:
Dara Dierks

Managing Director - ICR

Email: net1IR@icrinc.com

Media Relations Contact:

Bridget von Holdt

Business Director - BCW

Phone: +27-82-610-0650

Email: Bridget.vonholdt@bcw-global.com



NET 1 UEPS TECHNOLOGIES, INC.

Unaudited Condensed Consolidated Statements of Operations

 

 

 

 

 

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

 

 

 

 

 

 

March 31,

 

March 31,

 

 

 

 

 

 

 

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

 

 

(as

restated)(A)

 

 

 

(as

restated)(A)

 

 

 

 

 

 

 

 

(In thousands)

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUE

 

$

28,828

 

$

34,614

 

$

96,269

 

$

119,748

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold, IT processing, servicing and support

 

 

23,096

 

 

23,883

 

 

73,895

 

 

81,335

 

Selling, general and administration

 

 

18,892

 

 

17,454

 

 

59,517

 

 

59,494

 

Depreciation and amortization

 

 

1,132

 

 

1,153

 

 

3,129

 

 

3,651

 

Impairment loss

 

 

-

 

 

6,336

 

 

-

 

 

6,336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING LOSS

 

 

(14,292)

 

 

(14,212)

 

 

(40,272)

 

 

(31,068)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHANGE IN FAIR VALUE OF EQUITY SECURITIES

 

 

10,814

 

 

-

 

 

25,942

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAIN ON DISPOSAL OF FIHRST

 

 

-

 

 

-

 

 

-

 

 

9,743

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS ON DISPOSAL OF EQUITY-ACCOUNTED INVESTMENT - BANK FRICK

 

 

472

 

 

-

 

 

472

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS ON DISPOSAL OF EQUITY-ACCOUNTED INVESTMENT

 

 

-

 

 

-

 

 

13

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST INCOME

 

 

606

 

 

570

 

 

1,934

 

 

2,015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE

 

 

744

 

 

1,886

 

 

2,168

 

 

6,362

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS BEFORE INCOME TAX EXPENSE

 

 

(4,088)

 

 

(15,528)

 

 

(15,049)

 

 

(25,672)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX EXPENSE

 

 

2,171

 

 

640

 

 

4,549

 

 

2,317

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS BEFORE EARNINGS (LOSS) FROM EQUITY-ACCOUNTED INVESTMENTS

 

 

(6,259)

 

 

(16,168)

 

 

(19,598)

 

 

(27,989)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS (LOSS) FROM EQUITY-ACCOUNTED INVESTMENTS

 

 

55

 

 

(32,193)

 

 

(20,098)

 

 

(30,624)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS FROM CONTINUING OPERATIONS

 

 

(6,204)

 

 

(48,361)

 

 

(39,696)

 

 

(58,613)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME FROM DISCONTINUED OPERATIONS

 

 

-

 

 

747

 

 

-

 

 

6,402

GAIN FROM DISPOSAL OF DISCONTINUED OPERATION, net of tax

 

 

-

 

 

12,733

 

 

-

 

 

12,733

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS

 

 

(6,204)

 

 

(34,881)

 

 

(39,696)

 

 

(39,478)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME ATTRIBUTABLE TO NET1

 

 

(6,204)

 

 

(34,881)

 

 

(39,696)

 

 

(39,478)

 

Continuing

 

 

(6,204)

 

 

(48,361)

 

 

(39,696)

 

 

(58,613)

 

Discontinued

 

$

-

 

$

13,480

 

$

-

 

$

19,135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) earnings per share, in United States dollars:

 

 

 

 

 

 

 

 

 

 

 

 

Basic (loss) earnings attributable to Net1 shareholders

 

$

(0.11)

 

$

(0.61)

 

$

(0.70)

 

$

(0.69)

 

Continuing

 

$

(0.11)

 

$

(0.85)

 

$

(0.70)

 

$

(1.03)

 

Discontinued

 

$

-

 

$

0.24

 

$

-

 

$

0.34

Diluted (loss) earnings attributable to Net1 shareholders

 

$

(0.11)

 

$

(0.61)

 

$

(0.70)

 

$

(0.69)

 

Continuing

 

$

(0.11)

 

$

(0.85)

 

$

(0.70)

 

$

(1.03)

 

Discontinued

 

$

-

 

$

0.24

 

$

-

 

$

0.34

(A) 2020 has been restated to correct an error with respect to the recognition of certain revenue and related cost of goods sold, IT processing, servicing and support. The financial information for the three and nine months ended March 31, 2020, has been restated with the effect of decreasing revenue by $1.9 million and $5.3 million, respectively.


NET 1 UEPS TECHNOLOGIES, INC.

Unaudited Consolidated Balance Sheets

 

 

 

 

 

 

Unaudited

 

(A)

 

 

 

 

 

 

March 31,

 

June 30,

 

 

 

 

 

 

2021

 

2020

 

 

 

 

 

 

(In thousands, except share data)

 

 

 

 

 

ASSETS

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

Cash and cash equivalents

$

207,814

 

$

217,671

 

Restricted cash

 

19,016

 

 

14,814

 

Accounts receivable, net of allowance of - March: $428; June: $253 and other receivables

 

26,488

 

 

43,068

 

Finance loans receivable, net of allowance of - March: $2,289; June: $7,658

 

20,599

 

 

15,879

 

Inventory

 

20,267

 

 

19,860

 

 

Total current assets before settlement assets

 

294,184

 

 

311,292

 

 

 

Settlement assets

 

2,054

 

 

8,014

 

 

 

 

Total current assets

 

296,238

 

 

319,306

PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of - March: $36,296; June: $29,524

 

8,079

 

 

6,656

OPERATING LEASE RIGHT-OF-USE

 

4,870

 

 

5,395

EQUITY-ACCOUNTED INVESTMENTS

 

19,857

 

 

65,836

GOODWILL

 

28,141

 

 

24,169

INTANGIBLE ASSETS, net of accumulated amortization of - March: $29,835; June: $27,325

 

437

 

 

612

DEFERRED INCOME TAXES

 

383

 

 

358

OTHER LONG-TERM ASSETS, including reinsurance assets

 

58,447

 

 

31,346

TOTAL ASSETS

 

416,452

 

 

453,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

Short-term credit facilities for ATM funding

 

11,395

 

 

14,814

 

Accounts payable

 

6,785

 

 

6,287

 

Other payables

 

23,224

 

 

23,779

 

Operating lease liability - current

 

2,945

 

 

2,251

 

Income taxes payable

 

797

 

 

16,157

 

 

Total current liabilities before settlement obligations

 

45,146

 

 

63,288

 

 

 

Settlement obligations

 

2,054

 

 

8,015

 

 

 

 

Total current liabilities

 

47,200

 

 

71,303

DEFERRED INCOME TAXES

 

5,517

 

 

1,859

OPERATING LEASE LIABILITY - LONG TERM

 

2,111

 

 

3,312

OTHER LONG-TERM LIABILITIES, including insurance policy liabilities

 

2,240

 

 

2,012

TOTAL LIABILITIES

 

57,068

 

 

78,486

COMMITMENTS AND CONTINGENCIES

 

-

 

 

-

REDEEMABLE COMMON STOCK

 

84,979

 

 

84,979

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

NET1 EQUITY:

 

 

 

 

 

COMMON STOCK

 

 

 

 

 

 

Authorized: 200,000,000 with $0.001 par value;

 

 

 

 

 

 

Issued and outstanding shares, net of treasury: March: $56,626,060; June: $57,118,925

 

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

 

302,476

 

 

301,489

TREASURY SHARES, AT COST: March: $24,891,292; June: $24,891,292

 

(286,951)

 

 

(286,951)

ACCUMULATED OTHER COMPREHENSIVE LOSS

 

(146,174)

 

 

(169,075)

RETAINED EARNINGS

 

404,974

 

 

444,670

TOTAL NET1 EQUITY

 

274,405

 

 

290,213

NON-CONTROLLING INTEREST

 

-

 

 

-

TOTAL EQUITY

 

274,405

 

 

290,213

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND SHAREHOLDERS' EQUITY

$

416,452

 

$

453,678

(A) Derived from audited consolidated financial statements.

 


NET 1 UEPS TECHNOLOGIES, INC.

Unaudited Condensed Consolidated Statements of Cash Flows

 

 

 

Unaudited

 

Unaudited

 

 

 

Three months ended

 

Nine months ended

 

 

 

March 31,

 

March 31,

 

 

 

2021

 

2020

 

2021

 

2020

 

 

 

(In thousands)

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(6,204)

 

$

(34,881)

 

$

(39,696)

 

$

(39,478)

 

Depreciation and amortization

 

1,132

 

 

3,157

 

 

3,129

 

 

12,303

 

Impairment loss

 

-

 

 

6,336

 

 

-

 

 

6,336

 

Movement in allowance for doubtful accounts receivable

 

299

 

 

277

 

 

913

 

 

360

 

(Earnings) Loss from equity-accounted investments

 

(55)

 

 

32,193

 

 

20,098

 

 

30,624

 

Movement in allowance for doubtful loans

 

-

 

 

99

 

 

739

 

 

719

 

Change in fair value of equity securities

 

(10,814)

 

 

-

 

 

(25,942)

 

 

-

 

Fair value adjustment related to financial liabilities

 

(475)

 

 

(987)

 

 

1,201

 

 

(753)

 

Interest payable

 

(25)

 

 

597

 

 

(46)

 

 

1,755

 

Gain on disposal of Net1 Korea

 

-

 

 

(12,733)

 

 

-

 

 

(12,733)

 

Gain on disposal of FIHRST

 

-

 

 

-

 

 

-

 

 

(9,743)

 

Loss on disposal of equity-accounted investment - Bank Frick

 

472

 

 

-

 

 

472

 

 

-

 

Loss on disposal of equity-accounted investment

 

-

 

 

-

 

 

13

 

 

-

 

(Profit) Loss on disposal of property, plant and equipment

 

(142)

 

 

108

 

 

600

 

 

(95)

 

Stock-based compensation charge

 

245

 

 

347

 

 

876

 

 

1,170

 

Dividends received from equity accounted investments

 

-

 

 

677

 

 

125

 

 

2,125

 

Decrease in accounts receivable and finance loans receivable

 

5,786

 

 

10,596

 

 

4,230

 

 

13,697

 

Decrease (Increase) in inventory

 

428

 

 

(5,041)

 

 

2,642

 

 

(18,036)

 

Decrease in accounts payable and other payables

 

(894)

 

 

(4,396)

 

 

(4,393)

 

 

(4,660)

 

Decrease in taxes payable

 

(160)

 

 

(131)

 

 

(15,498)

 

 

(1,087)

 

Increase (Decrease) in deferred taxes

 

2,153

 

 

(413)

 

 

424

 

 

(618)

 

 

Net cash used in operating activities

 

(8,254)

 

 

(4,195)

 

 

(50,113)

 

 

(18,114)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

(649)

 

 

(1,042)

 

 

(3,947)

 

 

(4,493)

Proceeds from disposal of property, plant and equipment

 

254

 

 

59

 

 

345

 

 

362

Proceeds from disposal of equity-accounted investment - Bank Frick 

 

18,568

 

 

-

 

 

18,568

 

 

-

Proceeds from disposal of Net1 Korea, net of cash disposed

 

-

 

 

192,619

 

 

20,114

 

 

192,619

Transaction costs paid related to disposal of Net1 Korea

 

-

 

 

(7,458)

 

 

-

 

 

(7,458)

Proceeds from disposal of DNI as equity-accounted investment

 

-

 

 

-

 

 

6,010

 

 

-

Proceeds from disposal of FIHRST, net of cash disposed

 

-

 

 

-

 

 

-

 

 

10,895

Investment in equity-accounted investments

 

-

 

 

(1,250)

 

 

-

 

 

(2,500)

Loan to equity-accounted investment

 

-

 

 

(99)

 

 

(1,238)

 

 

(711)

Repayment of loans by equity-accounted investments

 

-

 

 

-

 

 

134

 

 

4,268

Net change in settlement assets

 

745

 

 

864

 

 

6,190

 

 

(9,274)

 

Net cash provided by investing activities

 

18,918

 

 

183,693

 

 

46,176

 

 

183,708

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

Proceeds from bank overdraft

 

55,280

 

 

193,723

 

 

261,759

 

 

585,273

Repayment of bank overdraft

 

(103,195)

 

 

(226,699)

 

 

(268,303)

 

 

(605,253)

Proceeds from issue of shares

 

35

 

 

-

 

 

53

 

 

-

Proceeds from disgorgement of shareholders' short-swing profits

 

-

 

 

-

 

 

124

 

 

-

Long-term borrowings utilized

 

-

 

 

-

 

 

-

 

 

14,798

Repayment of long-term borrowings

 

-

 

 

-

 

 

-

 

 

(11,313)

Guarantee fee

 

-

 

 

-

 

 

-

 

 

(148)

Finance lease capital repayments

 

-

 

 

(17)

 

 

-

 

 

(69)

Net change in settlement obligations

 

(745)

 

 

(864)

 

 

(6,190)

 

 

9,274

 

Net cash used in financing activities

 

(48,625)

 

 

(33,857)

 

 

(12,557)

 

 

(7,438)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

(2,263)

 

 

(20,060)

 

 

10,839

 

 

(19,007)

Net (decrease) increase in cash, cash equivalents and restricted cash

 

(40,224)

 

 

125,581

 

 

(5,655)

 

 

139,149

Cash, cash equivalents and restricted cash - beginning of period

 

267,054

 

 

135,079

 

 

232,485

 

 

121,511

Cash, cash equivalents and restricted cash - end of period

$

226,830

 

$

260,660

 

$

226,830

 

$

260,660



Net 1 UEPS Technologies, Inc.

Attachment A

Operating segment revenue, operating (loss) income and operating (loss) margin:

Three months ended March 31, 2021 and 2020 and December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change -

actual

Change -

constant

exchange rate(1)

 

 

 

 

 

 

 

 

Q3 '21

 

Q3 '20

 

Q2 '21

Q3 '21

vs

Q3 '20

Q3 '21

vs

Q2 '21

Q3 '21

vs

Q3 '20

Q3 '21

vs

Q2 '21

Key segmental data, in '000, except margins

 

 

 

(as

restated)(A)

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Processing

 

$

18,747

 

$

22,078

 

$

19,990

(15%)

(6%)

(17%)

(9%)

 

 

IPG

 

 

6

 

 

1,164

 

 

478

(99%)

(99%)

(99%)

(99%)

 

 

All Other

 

 

18,741

 

 

20,914

 

 

19,512

(10%)

(4%)

(13%)

(7%)

 

Financial services

 

 

10,192

 

 

11,683

 

 

9,709

(13%)

5%

(15%)

2%

 

Technology

 

 

2,026

 

 

4,040

 

 

4,609

(50%)

(56%)

(51%)

(57%)

 

 

 

Subtotal: Operating segments

 

 

30,965

 

 

37,801

 

 

34,308

(18%)

(10%)

(20%)

(13%)

 

 

 

Intersegment eliminations

 

 

(2,137)

 

 

(3,187)

 

 

(2,003)

(33%)

7%

(35%)

3%

 

 

 

 

Consolidated revenue

 

$

28,828

 

$

34,614

 

$

32,305

(17%)

(11%)

(19%)

(14%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Processing

 

$

(10,816)

 

$

(12,394)

 

$

(10,381)

(13%)

4%

(15%)

1%

 

 

IPG

 

 

(3,332)

 

 

(3,175)

 

 

(4,647)

5%

(28%)

2%

(31%)

 

 

All Other

 

 

(7,484)

 

 

(9,219)

 

 

(5,734)

(19%)

31%

(21%)

26%

 

Financial services

 

 

(2,111)

 

 

(1,701)

 

 

(1,071)

24%

97%

21%

91%

 

Technology

 

 

131

 

 

945

 

 

1,078

(86%)

(88%)

(87%)

(88%)

 

 

 

Subtotal: Operating segments

 

 

(12,796)

 

 

(13,150)

 

 

(10,374)

(3%)

23%

(5%)

19%

 

 

 

Corporate/Eliminations

 

 

(1,496)

 

 

(1,062)

 

 

(4,831)

41%

(69%)

37%

(70%)

 

 

 

 

 

Consolidated operating (loss) income

 

$

(14,292)

 

$

(14,212)

 

$

(15,205)

1%

(6%)

(2%)

(9%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income margin (%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Processing

 

 

(57.7%)

 

 

(56.1%)

 

 

(51.9%)

 

 

 

 

 

 

IPG

 

 

nm

 

 

(272.8%)

 

 

(972.2%)

 

 

 

 

 

 

All Other

 

 

(39.9%)

 

 

(44.1%)

 

 

(29.4%)

 

 

 

 

 

Financial services

 

 

(20.7%)

 

 

(14.6%)

 

 

(11.0%)

 

 

 

 

 

Technology

 

 

6.5%

 

 

23.4%

 

 

23.4%

 

 

 

 

 

 

 

Consolidated operating margin

 

 

(49.6%)

 

 

(41.1%)

 

 

(47.1%)

 

 

 

 

(A) - 2020 has been restated to correct an error with respect to the recognition of certain revenue and related cost of goods sold, IT processing, servicing and support.

(1) - This information shows what the change in these items would have been if the USD/ ZAR exchange rate that prevailed during Q3 2021 also prevailed during Q3 2020 and Q2 2021.


Nine months ended March 31, 2021 and 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change -

actual

Change -

constant

exchange rate(1)

 

 

 

 

 

 

 

 

F2021

 

F2020

 

F2021

vs

F2020

F2021

vs

F2020

Key segmental data, in '000, except margins

 

 

 

(as

restated)(A)

 

Revenue:

 

 

 

 

 

 

 

 

 

 

Processing

 

$

61,243

 

$

75,395

 

(19%)

(18%)

 

 

IPG

 

 

1,693

 

 

2,389

 

(29%)

(28%)

 

 

All other

 

 

59,550

 

 

73,006

 

(18%)

(18%)

 

Financial services

 

 

28,166

 

 

38,119

 

(26%)

(25%)

 

Technology

 

 

12,846

 

 

16,139

 

(20%)

(20%)

 

 

 

Subtotal: Operating segments

 

 

102,255

 

 

129,653

 

(21%)

(20%)

 

 

 

Intersegment eliminations

 

 

(5,986)

 

 

(9,905)

 

(40%)

(39%)

 

 

 

 

Consolidated revenue

 

 

96,269

 

 

119,748

 

(20%)

(19%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income:

 

 

 

 

 

 

 

 

 

 

Processing

 

$

(28,498)

 

$

(23,747)

 

20%

21%

 

 

IPG

 

 

(10,751)

 

 

(8,068)

 

33%

nm

 

 

All other

 

 

(17,747)

 

 

(15,679)

 

13%

nm

 

Financial services

 

 

(5,554)

 

 

(2,605)

 

113%

115%

 

Technology

 

 

2,984

 

 

2,679

 

11%

12%

 

 

 

Subtotal: Operating segments

 

 

(31,068)

 

 

(23,673)

 

31%

33%

 

 

 

Corporate/Eliminations

 

 

(9,204)

 

 

(7,395)

 

24%

26%

 

 

 

 

 

Consolidated operating (loss) income

 

 

(40,272)

 

 

(31,068)

 

30%

31%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income margin (%)

 

 

 

 

 

 

 

 

 

 

Processing

 

 

(46.5%)

 

 

(31.5%)

 

 

 

 

 

IPG

 

 

(635.0%)

 

 

(337.7%)

 

 

 

 

 

All other

 

 

(29.8%)

 

 

(21.5%)

 

 

 

 

Financial services

 

 

(19.7%)

 

 

(6.8%)

 

 

 

 

Technology

 

 

23.2%

 

 

16.6%

 

 

 

 

 

 

Consolidated operating margin

 

 

(41.8%)

 

 

(25.9%)

 

 

 

(A) - 2020 has been restated to correct an error with respect to the recognition of certain revenue and related cost of goods sold, IT processing, servicing and support.

(1) - This information shows what the change in these items would have been if the USD/ ZAR exchange rate that prevailed during fiscal 2021 also prevailed during fiscal 2020.


Earnings (Loss) from equity-accounted investments:

The table below presents the relative earnings (loss) from our equity-accounted investments:

 

 

 

Q3 2021

 

 

Q3 2020

 

% change

 

 

F2021

 

 

F2020

 

% change

Bank Frick

 

177

 

 

(18,393)

 

nm

 

 

1,156

 

 

(17,924)

 

nm

 

Share of net income

 

177

 

 

15

 

1,080%

 

 

1,156

 

 

770

 

50%

 

Amortization of intangible assets, net of deferred tax

 

-

 

 

(147)

 

nm

 

 

-

 

 

(433)

 

nm

 

Impairment

 

-

 

 

(18,261)

 

nm

 

 

-

 

 

(18,261)

 

nm

DNI

$

-

 

$

(10,852)

 

nm

 

$

-

 

$

(9,744)

 

nm

 

Share of net income

 

-

 

 

1,563

 

nm

 

 

-

 

 

4,676

 

nm

 

Amortization of intangible assets, net of deferred tax

 

-

 

 

(419)

 

nm

 

 

-

 

 

(1,350)

 

nm

 

Impairment

 

-

 

 

(11,996)

 

nm

 

 

-

 

 

(13,070)

 

nm

Finbond

 

-

 

 

-

 

nm

 

 

(20,267)

 

 

491

 

nm

 

Share of net (loss) income

 

-

 

 

-

 

nm

 

 

(2,617)

 

 

491

 

nm

 

Impairment

 

-

 

 

-

 

nm

 

 

(17,650)

 

 

-

 

nm

Other

 

(122)

 

 

(2,948)

 

(96%)

 

 

(987)

 

 

(3,447)

 

(71%)

 

Share of net loss

 

(122)

 

 

(448)

 

(73%)

 

 

(439)

 

 

(947)

 

(54%)

 

Impairment

 

-

 

 

(2,500)

 

nm

 

 

(548)

 

 

(2,500)

 

(78%)

 

Earnings (Loss) from equity-accounted investments

$

55

 

$

(32,193)

 

nm

 

$

(20,098)

 

$

(30,624)

 

(34%)



Net 1 UEPS Technologies, Inc.

Attachment B

Reconciliation of GAAP operating loss to EBITDA loss and adjusted EBITDA loss:

Three and nine months ended March 31, 2021 and 2020

 

 

 

 

 

Three months ended

March 31,

 

Nine months ended

March 31,

 

 

 

 

 

2021

 

2020

 

2021

 

2020

Operating loss - GAAP

(14,292)

 

(14,212)

 

(40,272)

 

(31,068)

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

1,132

 

1,153

 

3,129

 

3,651

 

Impairment loss

-

 

6,336

 

-

 

6,336

 

 

Negative EBITDA

(13,160)

 

(6,723)

 

(37,143)

 

(21,081)

 

 

 

Transaction costs

337

 

300

 

1,705

 

3,682

 

 

 

 

Adjusted EBITDA loss

(12,823)

 

(6,423)

 

(35,438)

 

(17,399)

Reconciliation of GAAP net loss and loss per share, basic, to fundamental net loss and loss per share, basic:

Three months ended March 31, 2021 and 2020

 

Net (loss) income

(USD '000)

 

(L)PS, basic

(USD)

 

Net (loss) income

(ZAR '000)

 

(L)PS, basic

(ZAR)

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

GAAP

(6,204)

 

(34,881)

 

(0.11)

 

(0.61)

 

(92,796)

 

(536,006)

 

(1.64)

 

(9.43)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of equity securities, net

(8,543)

 

-

 

 

 

 

 

(127,783)

 

-

 

 

 

 

Loss on disposal of equity-accounted investment - Bank Frick

472

 

-

 

 

 

 

 

7,060

 

-

 

 

 

 

Stock-based compensation charge

245

 

347

 

 

 

 

 

3,665

 

5,332

 

 

 

 

Intangible asset amortization, net

66

 

983

 

 

 

 

 

990

 

15,112

 

 

 

 

Impairment of equity method investment

-

 

32,277

 

 

 

 

 

-

 

495,990

 

 

 

 

Gain on discontinued operation

-

 

(12,733)

 

 

 

 

 

-

 

(195,664)

 

 

 

 

Impairment loss

-

 

6,336

 

 

 

 

 

-

 

97,363

 

 

 

 

Intangible asset amortization, net related to equity accounted investments

-

 

566

 

 

 

 

 

-

 

8,698

 

 

 

 

Interest related to SASSA implementation costs refund

-

 

509

 

 

 

 

 

-

 

7,822

 

 

 

 

Transaction costs

337

 

300

 

 

 

 

 

5,041

 

4,610

 

 

 

 

Fundamental

(13,627)

 

(6,296)

 

(0.24)

 

(0.11)

 

(203,823)

 

(96,743)

 

(3.60)

 

(1.70)



Nine months ended March 31, 2021 and 2020

 

Net (loss) income

(USD '000)

 

(L) EPS, basic

(USD)

 

Net (loss) income

(ZAR '000)

 

(L)EPS, basic

(ZAR)

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

GAAP

(39,696)

 

(39,478)

 

(0.70)

 

(0.69)

 

(639,798)

 

(630,053)

 

(11.27)

 

(11.12)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of equity method investments

18,198

 

32,084

 

 

 

 

 

281,729

 

512,048

 

 

 

 

Reversal of deferred taxes related to impairment of equity method investment

(1,353)

 

-

 

 

 

 

 

(22,633)

 

-

 

 

 

 

Change in fair value of equity securities, net

(20,494)

 

-

 

 

 

 

 

(330,313)

 

-

 

 

 

 

Transaction costs

1,705

 

2,876

 

 

 

 

 

27,480

 

45,900

 

 

 

 

Stock-based compensation charge

876

 

1,170

 

 

 

 

 

14,119

 

18,673

 

 

 

 

Loss on disposal of equity-accounted investment - Bank Frick

472

 

-

 

 

 

 

 

7,607

 

-

 

 

 

 

Intangible asset amortization, net

184

 

3,768

 

 

 

 

 

2,971

 

60,123

 

 

 

 

Gain on discontinued operation

-

 

(12,733)

 

 

 

 

 

-

 

(203,214)

 

 

 

 

Gain on disposal of FIHRST

-

 

(9,743)

 

 

 

 

 

-

 

(155,494)

 

 

 

 

Impairment loss

-

 

6,336

 

 

 

 

 

-

 

101,120

 

 

 

 

Intangible asset amortization, net related to equity accounted investments

-

 

1,783

 

 

 

 

 

-

 

28,456

 

 

 

 

Interest related to SASSA implementation costs refund

-

 

1,498

 

 

 

 

 

-

 

23,909

 

 

 

 

Fundamental

(40,095)

 

(12,439)

 

(0.71)

 

(0.22)

 

(658,628)

 

(198,532)

 

(11.60)

 

(3.50)



Net 1 UEPS Technologies, Inc.

Attachment C

Reconciliation of net loss used to calculate loss per share basic and diluted and headline loss per share basic and diluted:

Three months ended March 31, 2021 and 2020

 

 

2021

 

2020

 

 

 

 

 

 

 

Net loss (USD'000)

(6,204)

 

(34,881)

 

Adjustments:

 

 

 

 

 

Loss on disposal of equity-accounted investment - Bank Frick

430

 

-

 

 

Impairment of equity method investments

-

 

32,757

 

 

Gain on disposal of discontinued operation

-

 

(21,377)

 

 

Impairment loss

-

 

6,336

 

 

(Profit) Loss on sale of property, plant and equipment

(142)

 

108

 

 

Tax effects on above

40

 

(30)

 

 

 

 

 

 

 

Net loss used to calculate headline loss (USD'000)

(5,876)

 

(17,087)

 

 

 

 

 

 

 

Weighted average number of shares used to calculate net loss per share basic loss and headline loss per share basic loss ('000)

56,646

 

56,803

 

 

 

 

 

 

 

Weighted average number of shares used to calculate net loss per share diluted loss and headline loss per share diluted loss ('000)

56,921

 

56,803

 

 

 

 

 

 

 

Headline loss per share:

 

 

 

 

 

Basic, in USD

(0.10)

 

(0.30)

 

 

Diluted, in USD

(0.10)

 

(0.30)

 

Nine months ended March 31, 2021 and 2020

 

 

2021

 

2020

 

 

 

 

 

 

 

Net loss (USD'000)

(39,696)

 

(39,478)

 

Adjustments:

 

 

 

 

 

Impairment of equity method investments

18,198

 

33,831

 

 

Loss on disposal of equity-accounted investment - Bank Frick

430

 

-

 

 

Gain on disposal of discontinued operation

-

 

(21,377)

 

 

Gain on disposal of FIHRST

-

 

(9,607)

 

 

Impairment loss

-

 

6,336

 

 

Loss (Profit) on sale of property, plant and equipment

600

 

(95)

 

 

Tax effects on above

(1,521)

 

27

 

 

 

 

 

 

 

Net loss used to calculate headline loss (USD'000)

(21,989)

 

(30,363)

 

 

 

 

 

 

 

Weighted average number of shares used to calculate net loss per share basic loss and headline loss per share basic loss ('000)

56,803

 

56,646

 

 

 

 

 

 

 

Weighted average number of shares used to calculate net loss per share diluted loss and headline loss per share diluted loss ('000)

56,895

 

56,646

 

 

 

 

 

 

 

Headline loss per share:

 

 

 

 

 

Basic, in USD

(0.39)

 

(0.54)

 

 

Diluted, in USD

(0.39)

 

(0.54)

 

Calculation of the denominator for headline diluted loss per share

 

 

 

Q3 2021

 

Q3 2020

 

F2021

 

F2020

 

 

 

 

 

 

 

 

 

 

Basic weighted-average common shares outstanding and unvested restricted shares expected to vest under GAAP

56,646

 

56,803

 

56,803

 

56,646

 

Effect of dilutive securities under GAAP

275

 

-

 

92

 

-

 

 

Denominator for headline diluted loss per share

56,921

 

56,803

 

56,895

 

56,646

Weighted average number of shares used to calculate headline diluted loss per share represents 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 diluted loss per share because we do not use the two-class method to calculate headline diluted loss per share.




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