SOURCE: Net 1 UEPS Technologies Inc.

Net 1 UEPS Technologies Inc.

February 05, 2015 18:22 ET

Net 1 UEPS Technologies, Inc. Reports Second Quarter 2015 Results

Q2 2015 Revenue and FEPS of $154.1 Million and $0.57, a Constant Currency Increase of 24% and 56% Respectively

JOHANNESBURG, SOUTH AFRICA--(Marketwired - February 05, 2015) - Net 1 UEPS Technologies, Inc. (NASDAQ: UEPS) (JSE: NT1) today released results for the second quarter of fiscal 2015.

                
Summary Financial Metrics               
   
   Three months ended December 31,  
         % change   % change  
   2014  2013  in USD   in ZAR  
(All figures in USD '000s except per share data)               
Revenue  154,131  137,283  12 % 24 %
GAAP net income  22,374  12,749  75 % 94 %
Fundamental net income (1)  26,400  18,398  43 % 58 %
GAAP earnings per share ($)  0.48  0.28  73 % 91 %
Fundamental earnings per share ($) (1)  0.57  0.40  43 % 56 %
Fully-diluted shares outstanding ('000's)  46,644  46,176  2 %    
Average period USD/ ZAR exchange rate  11.22  10.16  10 %    
   
   Six months ended December 31,  
         % change   % change  
   2014  2013  in USD   in ZAR  
(All figures in USD '000s except per share data)               
Revenue  310,572  260,777  19 % 30 %
GAAP net income  46,463  24,345  91 % 108 %
Fundamental net income (1)  54,522  35,174  55 % 69 %
GAAP earnings per share ($)  0.99  0.53  86 % 102 %
Fundamental earnings per share ($) (1)  1.16  0.77  51 % 65 %
Fully-diluted shares outstanding ('000's)  46,990  45,919  2 %    
Average period USD/ ZAR exchange rate  10.97  10.08  9 %    
           
           

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

Factors impacting comparability of our Q2 2015 and Q2 2014 results

  • Unfavorable impact from the strengthening of the USD against the ZAR: The USD appreciated by 10% against the ZAR during the second quarter of fiscal 2015, which negatively impacted our reported results;
  • Increased contribution by KSNET: Our results were positively impacted by growth in our Korean operations;
  • Increase in the number of SASSA grants paid: Our revenue and operating income has increased as a result of the higher number of SASSA UEPS/EMV cardholders paid during fiscal 2015 compared with 2014; and
  • Continued growth in financial inclusion services: We continued to grow our financial inclusion services offerings during the second quarter of fiscal 2015, which has resulted in higher revenues and operating income from more sales of low-margin prepaid airtime and UEPS-based lending.

Comments and Outlook

"Our operational and financial performance once again speaks for itself as we continue to deliver meaningful growth in revenue and earnings," said Dr. Serge Belamant, Chairman and CEO of Net1. "Our prospects and pipeline are extremely exciting, particularly as they reflect opportunities in the mobile space, which is the payment paradigm of the future. We are globalizing, we have the technology, we have the dedicated staff, we have the financial resources and we have the passion. Carpe Diem! I believe that our efforts, innovations and lateral thinking will be noticed and appreciated by the market and enhance shareholder value," he concluded.

"I am thrilled with the sustained top and bottom line growth generated by our core businesses," said Herman Kotzé, Chief Financial Officer of Net1. "Given our strategic and operational momentum, for fiscal 2015, we now expect fundamental earnings per share of at least $2.28, assuming a constant currency base of ZAR10.40/$1 and a share count of 46.5 million shares," he concluded.

Results of Operations by Segment and Liquidity

Our operating metrics will be updated and posted on our website (www.net1.com).

South African transaction processing

The South African transaction processing segment consists mainly of pension and welfare benefit distribution services provided to the South African government, and transaction processing for retailers, utilities, medical-related claim service customers and banks.

Segment revenue was $58.4 million in Q2 2015, down 1% compared with Q2 2014 in USD and up 10% on a constant currency basis. In ZAR, the increase in segment revenues was primarily due to more low-margin transaction fees generated from beneficiaries using the South African National Payment System and more intersegment transaction processing activities. In addition, revenue from the distribution of social welfare grants grew modestly during the year and was in-line with the increase in unique welfare cardholder recipients, net of removal of invalid and fraudulent beneficiaries, partially offset by the loss of MediKredit revenue as a result of the sale of that business. Segment operating income margin in Q2 2015 and Q2 2014 was 22% and 12%, respectively, and has increased primarily due to more higher-margin intersegment transaction processing activities, the elimination of MediKredit losses and an increase in the number of beneficiaries paid in Q2 2015.

International transaction processing

The International transaction processing segment consists mainly of payment processing services for merchants and card issuers in South Korea. The segment also includes transaction processing of UEPS-enabled smartcards in Botswana and transaction processing of medical-related claims in the United States.

KSNET contributes the majority of our revenues and operating income in this segment. Segment revenue was $40.5 million in Q2 2015, up 7% compared with Q2 2014 in USD and 18% on a constant currency basis. Revenue and operating income increased primarily due to higher transaction volume at KSNET during Q2 2015. However, operating income for Q2 2015, was adversely impacted by ad hoc incentives provided to staff due to the strong operating performance of KSNET during calendar 2014. Segment operating income margin during each of Q2 2015 and Q2 2014 was 14%, respectively.

Financial inclusion and applied technologies

The Financial inclusion and applied technologies segment includes our smart card accounts, lending and life insurance businesses. This segment also includes the economics from merchants and card holders using our merchant acquiring system, the sale of prepaid products (electricity and airtime) and the sale of hardware and software.

Segment revenue was $67.5 million in Q2 2015, up 34% compared with Q2 2014 in USD and 48% on a constant currency basis. Revenue and operating income increased primarily due to higher prepaid airtime sales driven by the rollout of our prepaid airtime product, an increase in the number of UEPS-based loans as we rolled out our product nationally, and, in ZAR, an increase in intersegment revenues. Smart Life did not contribute to operating income in Q2 2015 and 2014 due to the FSB suspension of its license.

Operating income margin for the Financial inclusion and applied technologies segment was 26% during each of the second quarter of fiscal 2015 and 2014, respectively.

Corporate/eliminations

Corporate/eliminations generally includes acquisition-related intangible asset amortization; expenditure related to compliance with the Sarbanes-Oxley Act of 2002; non-employee directors' fees; employee and executive bonuses; stock-based compensation; legal fees; audit fees; directors and officers insurance premiums; telecommunications expenses; property- related expenditures including utilities, rental, security and maintenance; and elimination entries.

The decrease in our corporate expenses was primarily due to lower US government investigations-related and US lawsuit expenses, audit fees and other corporate head office-related expenses.

Cash flow and liquidity

At December 31, 2014, we had cash and cash equivalents of $71.0 million, up from $58.7 million at June 30, 2014. The increase in our cash balances from June 30, 2014, was primarily due to the expansion of our all of our core businesses during the quarter, and to a lesser extent due to the cash conservation resulting from the sale of loss-incurring businesses, offset by provisional tax payments and the scheduled Korean debt repayment in October 2014.

Excluding the impact of interest received, interest paid under our Korean debt and taxes, the increase in cash from operating activities resulted from improved trading activity during fiscal 2015. Capital expenditures for Q2 2015 and 2014 were $9.1 million and $6.8 million, respectively, and have increased primarily due to the acquisition of more payment processing terminals in South Korea.

Use of Non-GAAP Measures

US securities laws require that when we publish any non-GAAP measures, we disclose the reason for using the non-GAAP measure and provide reconciliation to the directly comparable GAAP measure. The presentation of fundamental net income and fundamental earnings per share and headline earnings per share are non-GAAP measures.

Fundamental net income and fundamental earnings per share

Fundamental net income and earnings per share is GAAP net income and earnings per share adjusted for (1) the amortization of acquisition-related intangible assets (net of deferred taxes), (2) stock-based compensation charges and (3) unusual non- recurring items, including the amortization of KSNET debt facility fees and US government investigations-related and US lawsuit expenses. Management believes that the fundamental net income and earnings per share metric enhances its own evaluation, as well as an investor's understanding, of our financial performance. Attachment B presents the reconciliation between GAAP and fundamental net income and earnings per share.

Headline earnings per share ("HEPS")

The inclusion of HEPS in this press release is a requirement of our listing on the JSE. HEPS basic and diluted is calculated using net income which has been determined based on GAAP. Accordingly, this may differ to the headline earnings per share calculation of other companies listed on the JSE as these companies may report their financial results under a different financial reporting framework, including but not limited to, International Financial Reporting Standards.

HEPS basic and diluted is calculated as GAAP net income adjusted for the profit on sale of property, plant and equipment. Attachment C presents the reconciliation between our net income used to calculate earnings per share basic and diluted and HEPS basic and diluted and the calculation of the denominator for headline diluted earnings per share.

Conference Call

We will host a conference call to review Q2 2015 results on February 6, 2015, at 8:00 Eastern Time. To participate in the call, dial 1-855-481-5362 (US and Canada), 0808-162-4061 (U.K. only) or 0-800-200-648 (South Africa only) ten minutes prior to the start of the call. Callers should request "Net1 call" upon dial-in. The call will also be webcast on the Net1 homepage, www.net1.com. Please click on the webcast link at least ten minutes prior to the call. A webcast of the call will be available for replay on the Net1 website through March 1, 2015.

About Net1 (www.net1.com)

Net1 is a leading provider of alternative payment systems that leverage its Universal Electronic Payment System ("UEPS"), to facilitate biometrically secure, real-time electronic transaction processing to unbanked and under-banked populations of developing economies around the world in an online or offline environment. Net1's UEPS/EMV solution is interoperable with global EMV standards that seamlessly permit access to all the UEPS functionality in a traditional EMV environment. In addition to payments, UEPS can be used for banking, healthcare management, payroll, remittances, voting and identification.

Net1 operates market-leading payment processors in South Africa and the Republic of Korea. In addition, Net1's proprietary MVC technology offers secure mobile payments and banking services in developed and emerging countries.

Net1 has a primary listing on NASDAQ and a secondary listing on the Johannesburg Stock Exchange.

Forward-Looking Statements

This announcement contains forward-looking statements that involve known and unknown risks and uncertainties. A discussion of various factors that cause our actual results, levels of activity, performance or achievements to differ materially from those expressed in such forward-looking statements are included in our filings with the Securities and Exchange Commission. We undertake no obligation to revise any of these statements to reflect future events.

 
NET 1 UEPS TECHNOLOGIES, INC.
Unaudited Condensed Consolidated Statements of Operations
   Three months ended  Six months ended
   December 31,  December 31,
   2014  2013  2014  2013
   (In thousands, except per share data)  (In thousands, except per share data)
 
REVENUE  $154,131  $137,283  $310,572  $260,777
 
EXPENSE                
 
 Cost of goods sold, IT processing, servicing and support   71,774   67,883   146,180   124,442
 
 Selling, general and administration   41,385   40,824   80,121   81,330
 
 Depreciation and amortization   10,157   9,774   20,331   19,803
 
OPERATING INCOME   30,815   18,802   63,940   35,202
 
INTEREST INCOME   3,587   3,236   7,677   6,555
 
INTEREST EXPENSE   1,107   2,226   2,419   3,978
 
INCOME BEFORE INCOME TAX EXPENSE   33,295   19,812   69,198   37,779
 
INCOME TAX EXPENSE   10,203   7,099   21,851   13,584
 
NET INCOME BEFORE EARNINGS FROM EQUITY-ACCOUNTED INVESTMENTS   23,092   12,713   47,347   24,195
 
EARNINGS FROM EQUITY-ACCOUNTED INVESTMENTS   76   47   168   150
 
NET INCOME   23,168   12,760   47,515   24,345
 
LESS NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST   794   11   1,052   -
 
NET INCOME ATTRIBUTABLE TO NET1  $22,374  $12,749  $46,463  $24,345
 
Net income per share, in United States dollars                
 Basic earnings attributable to Net1 shareholders   $0.48   $0.28   $0.99   $0.53
 Diluted earnings attributable to Net1 shareholders   $0.48   $0.28   $0.99   $0.53
              
              
 
NET 1 UEPS TECHNOLOGIES, INC.
Unaudited Condensed Consolidated Balance Sheets
 
   Unaudited  (A)
   December 31,  June 30,
   2014  2014
   (In thousands, except share data)
ASSETS        
CURRENT ASSETS        
 Cash and cash equivalents  $70,981  $58,672
 Pre-funded social welfare grants receivable   6,254   4,809
 Accounts receivable, net of allowances of - December: $2,175; June: $1,313   128,338   148,067
 Finance loans receivable, net of allowances of - December: $4,403; June: $3,083   60,309   53,124
 Inventory   12,501   10,785
 Deferred income taxes   6,286   7,451
  Total current assets before settlement assets   284,669   282,908
   Settlement assets   480,962   725,987
    Total current assets   765,631   1,008,895
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of -        
December: $94,376; June: $91,422   49,361   47,797
EQUITY-ACCOUNTED INVESTMENTS   954   878
GOODWILL   172,237   186,576
INTANGIBLE ASSETS, net of accumulated amortization of - December: $80,189; June: $78,781   55,884   68,514
OTHER LONG-TERM ASSETS, including reinsurance assets   35,426   38,285
 TOTAL ASSETS   1,079,493   1,350,945
LIABILITIES        
CURRENT LIABILITIES        
 Accounts payable   15,838   17,101
 Other payables   39,263   42,257
 Current portion of long-term borrowings   -   14,789
 Income taxes payable   3,094   7,676
  Total current liabilities before settlement obligations   58,195   81,823
   Settlement obligations   480,962   725,987
    Total current liabilities   539,157   807,810
DEFERRED INCOME TAXES   12,676   15,522
LONG-TERM BORROWINGS   59,698   62,388
OTHER LONG-TERM LIABILITIES, including insurance policy liabilities   20,831   23,477
 TOTAL LIABILITIES   632,362   909,197
EQUITY        
 COMMON STOCK        
   Authorized: 200,000,000 with $0.001 par value; Issued and outstanding shares, net of treasury - December: 46,547,153; June: 47,819,299   
64
  
63
 PREFERRED STOCK        
   Authorized shares: 50,000,000 with $0.001 par value; Issued and outstanding shares, net of treasury: December: -; June: -   
-
  
-
 ADDITIONAL PAID-IN-CAPITAL   211,743   202,401
 TREASURY SHARES, AT COST: December: 18,057,228; June: 15,883,212   (214,520)   (200,681)
 ACCUMULATED OTHER COMPREHENSIVE LOSS   (120,504)   (82,741)
 RETAINED EARNINGS   569,596   522,729
  TOTAL NET1 EQUITY   446,379   441,771
  NON-CONTROLLING INTEREST   752   (23)
   TOTAL EQUITY   447,131   441,748
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  $1,079,493  $1,350,945
       
       

(A) - Derived from audited financial statements

 
NET 1 UEPS TECHNOLOGIES, INC.
 Unaudited Condensed Consolidated Statements of Cash Flows
 
   Three months ended  Six months ended
   December 31,  December 31,
   2014  2013  2014  2013
   (In thousands)  (In thousands)   
Cash flows from operating activities                
Net income  $23,168  $12,760  $47,515  $24,345
Depreciation and amortization   10,157   9,774   20,331   19,803
Earnings from equity-accounted investments   (76)   (47)   (168)   (150)
Fair value adjustments   (234)   72   179   (61)
Interest payable   140   694   1,299   1,666
Profit on disposal of property, plant and equipment   (109)   (15)   (231)   (16)
Stock-based compensation charge   1,035   968   1,951   1,898
Facility fee amortized   52   509   134   578
Increase in accounts receivable, pre-funded social welfare grants receivable and finance loans receivable   
(7,315)
  
(37,977)
  
2,155
  
(61,078)
Increase in inventory   (622)   (2,853)   (2,745)   (1,842)
Decrease in accounts payable and other payables   (1,456)   (4,883)   (12,389)   (13,551)
(Decrease) increase in taxes payable   (9,963)   (5,559)   (3,352)   1,362
Decrease in deferred taxes   (168)   (691)   (558)   (1,878)
 Net cash provided (used in ) by operating activities   14,609   (27,248)   54,121   (28,924)
Cash flows from investing activities                
Capital expenditures   (9,137)   (6,845)   (18,515)   (12,461)
Proceeds from disposal of property, plant and equipment   373   1,953   614   2,001
Proceeds from sale of business   -   -   1,895   -
Other investing activities   (29)   -   (29)   (1)
Net change in settlement assets   241,652   204,730   198,598   256,503
 Net cash provided by investing activities   232,859   199,838   182,563   246,042
Cash flows from financing activities                
Repayment of long-term borrowings   (14,128)   (87,008)   (14,128)   (87,008)
Long-term borrowings utilized   1,081   -   2,178   -
Acquisition of treasury stock   -   -   (9,151)   -
Sale of equity to non-controlling interest   -   -   1,407   -
Proceeds from issue of common stock   -   -   989   -
Long-term borrowings obtained   -   71,605   -   71,605
Payment of facility fee   -   (872)   -   (872)
Proceeds from bank overdraft   -   24,580   -   24,580
Acquisition of interests in KSNET   -   (1,968)   -   (1,968)
Net change in settlement obligations   (241,652)   (204,730)   (198,598)   (256,503)
 Net cash used in by financing activities   (254,699)   (198,393)   (217,303)   (250,166)
Effect of exchange rate changes on cash   (2,973)   495   (7,072)   1,745
Net (decrease) increase in cash and cash equivalents   (10,204)   (25,308)   12,309   (31,303)
Cash and cash equivalents - beginning of period   81,185   47,670   58,672   53,665
Cash and cash equivalents - end of period  $70,981  $22,362  $70,981  $22,362
 
See Notes to Unaudited Condensed Consolidated Financial Statements            
          
          

Net 1 UEPS Technologies, Inc.

Attachment A

Operating segment revenue, operating income and operating margin:

 Three months ended December 31, 2014 and 2013 and June 30, 2014

           
        Change - actual Change - constant exchange rate(1)
Key segmental data, in $'000, Q2 '15 Q2 '14 Q1 '15 Q2 '15 vs
Q2 '14
 Q2 '15 vs
Q1 '15
 Q2 '15 vs
Q2 '14
 Q2 '15 vs
Q1 '15
Revenue:              
South African transaction processing $58,427 $58,754 $60,252 (1%) (3%) 10% 1%
International transaction processing 40,466 37,738 43,204 7% (6%) 18% (2%)
Financial inclusion and applied technologies 67,531 50,480 65,197 34% 4% 48% 8%
 Subtotal: Operating segments 166,424 146,972 168,653 13% (1%) 25% 3%
 Intersegment eliminations (12,293) (9,689) (12,212) 27% 1% 40% 5%
  Consolidated revenue $154,131 $137,283 $156,441 12% (1%) 24% 3%
               
Operating income:              
South African transaction processing $12,883 $7,128 $13,639 81% (6%) 100% (1%)
International transaction processing 5,743 5,139 7,349 12% (22%) 23% (18%)
Financial inclusion and applied technologies 17,827 13,265 17,607 34% 1% 48% 6%
 Subtotal: Operating segments 36,453 25,532 38,595 43% (6%) 58% (1%)
 Corporate/Eliminations (5,638) (6,730) (5,470) (16%) 3% (7%) 8%
  Consolidated operating income $30,815 $18,802 $33,125 64% (7%) 81% (3%)
               
Operating income margin (%)              
South African transaction processing 22% 12% 23%        
International transaction processing 14% 14% 17%        
Financial inclusion and applied technologies 26% 26% 27%        
 Consolidated operating margin 20% 14% 21%        
               
               

(1) - This information shows what the change in these items would have been if the USD/ ZAR exchange rate that prevailed during the second quarter of fiscal 2015 also prevailed during the second quarter of fiscal 2014 and the first quarter of fiscal 2015.

                  
Six months ended December 31, 2014 and 2013                 
   
               Change -  
               constant  
           Change -   exchange  
           actual   rate(1)  
           F2015   F2015  
           vs   vs  
Key segmental data, in '000, except margins  F2015   F2014   F2014   F2014  
Revenue:                 
South African transaction processing  118,679   115,915   2 % 11 %
International transaction processing  83,670   75,279   11 % 21 %
Financial inclusion and applied technologies  132,728   87,276   52 % 65 %
 Subtotal: Operating segments  335,077   278,470   20 % 31 %
 Intersegment eliminations  (24,505 ) (17,693 ) 39 % 51 %
  Consolidated revenue  310,572   260,777   19 % 30 %
   
Operating income:                 
South African transaction processing  26,522   13,589   95 % 112 %
International transaction processing  13,092   10,663   23 % 34 %
Financial inclusion and applied technologies  35,434   26,100   36 % 48 %
 Subtotal: Operating segments  75,048   50,352   49 % 62 %
 Corporate/Eliminations  (11,108 ) (15,150 ) (27 %) (20 %)
  Consolidated operating income  63,940   35,202   82 % 98 %
   
Operating income margin (%)                 
South African transaction processing  22 % 12 %        
International transaction processing  16 % 14 %        
Financial inclusion and applied technologies  27 % 30 %        
 Overall operating margin  21 % 13 %        
              
              

(1) - This information shows what the change in these items would have been if the USD/ ZAR exchange rate that prevailed during the first half of fiscal 2015 also prevailed during the first half of fiscal 2014.

Net 1 UEPS Technologies, Inc.

Attachment B

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

Three months ended December 31, 2014 and 2013

                   
         EPS,        EPS,
   Net income  basic  Net income  basic
   (USD'000)  (USD)  (ZAR'000)  (ZAR)
   2014  2013  2014  2013  2014  2013  2014  2013
 
GAAP  22,374  12,749  0.48  0.28  250,737  129,519  5.39  2.83
 
 Intangible asset amortization, net.  2,930  3,104        32,827  31,530      
 Stock-based compensation charge  1,035  968        11,616  9,834      
 Facility fees for KSNET debt  52  509        584  5,171      
 US government investigations-                        
 related and US lawsuit expenses  9  1,068        101  10,850      
  Fundamental  26,400  18,398  0.57  0.40  295,865  186,904  6.36  4.08
 
 
Six months ended December 31, 2014 and 2013                     
 
         EPS,        EPS,
   Net income  basic  Net income  basic
   (USD'000)  (USD)  (ZAR'000)  (ZAR)
   2014  2013  2014  2013  2014  2013  2014  2013
 
GAAP  46,463  24,345  0.99  0.53  509,644  245,417  10.87  5.37
 
 Intangible asset amortization, net.  5,838  5,889        64,036  59,367      
 Stock-based compensation charge  1,951  1,898        21,400  19,134      
 Facility fees for KSNET debt  134  578        1,470  5,827      
 US government investigations-                        
 related and US lawsuit expenses  136  2,464        1,492  24,839      
  Fundamental  54,522  35,174  1.16  0.77  598,042  354,584  12.76  7.75
                 
                 

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 December 31, 2014 and 2013      
 
   2014  2013
 
Net income (USD'000)  22,374  12,749
Adjustments:      
 Profit on sale of property, plant and equipment  (109)  (15)
 Tax effects on above  31  4
Net income used to calculate headline earnings (USD'000)  22,296  12,738
Weighted average number of shares used to calculate net income per share basic earnings and headline earnings per share basic earnings ('000)  
46,519
 
45,776
Weighted average number of shares used to calculate net income per share diluted earnings and headline earnings per share diluted earnings ('000)  
46,644
 
46,176
Headline earnings per share:      
 Basic, in USD  0.48  0.28
 Diluted, in USD  0.48  0.28
 
Six months ended December 31, 2014 and 2013      
 
   2014  2013
 
Net income (USD'000)  46,463  24,345
Adjustments:      
 Profit on sale of property, plant and equipment  (231)  (16)
 Tax effects on above  65  4
Net income used to calculate headline earnings (USD'000)  46,297  24,333
Weighted average number of shares used to calculate net income per share basic earnings and headline earnings per share basic earnings ('000)  
46,873
 
45,725
Weighted average number of shares used to calculate net income per share diluted earnings and headline earnings per share diluted earnings ('000)  
46,990
 
45,919
Headline earnings per share:      
  Basic, in USD  0.99  0.53
  Diluted, in USD  0.99  0.52
     
     
          
Calculation of the denominator for headline diluted earnings per share   
 
   Q2 '15  Q2 '14  F2015  F2014
 
 Basic weighted-average common shares outstanding and unvested restricted shares expected to vest under GAAP  46,519  45,776  46,873  45,725
  Effect of dilutive securities under GAAP  125  400  117  194
   Denominator for headline diluted earnings per share  46,644  46,176  46,990  45,919
         
         
         

Weighted average number of shares used to calculate headline earnings per share diluted represent the denominator for basic weighted-average common shares outstanding and unvested restricted shares expected to vest plus the effect of dilutive securities under GAAP. We use this number of fully-diluted shares outstanding to calculate headline earnings per share diluted because we do not use the two-class method to calculate headline earnings per share diluted.

Contact Information

  • Investor Relations Contact:
    Dhruv Chopra
    Head of Investor Relations
    Phone: +1 917-767-6722
    Email: dchopra@net1.com