Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today released
results for the third quarter ended March 31, 2024 (“Q3 2024”).
Performance Highlights for Q3 2024:
- Revenue of $138.2 million (ZAR 2.6
billion)1 in Q3 2024, compared to $134.0 million (ZAR 2.4 billion)1
for the third quarter ended March 31, 2023 (“Q3 2023”), an increase
of 9% in South African Rand (“ZAR”).
- Operating income of $0.8 million
(ZAR 15.0 million) for the quarter, compared to an operating loss
of $1.9 million (ZAR 33.2 million) in Q3 2023.
- Net loss reduced to $4.0 million
(ZAR 76.4 million)1 compared to a $5.8 million (ZAR 104.4 million)1
in Q3 2023, representing a 27% improvement in ZAR. GAAP loss per
share improved 30% to $0.06 (ZAR R1.19)1.
- Group Adjusted EBITDA2 (a non-GAAP
measure) increased to $9.7 million (ZAR 183.3 million)1 for the
quarter, up 47% in ZAR compared to $7.0 million (ZAR 124.6
million)1 and exceeded the upper end of Q3 2024 guidance.
- Fundamental earnings per share (a
non-GAAP measure), positive for a second successive quarter,
increased to $0.02 (ZAR 0.45)1 compared to a fundamental loss per
share of $0.02 (ZAR 0.35)1 in Q3 2023.
- The Merchant Division reported
revenue of $121.0 million (R2.3 billion), an increase of 8% in ZAR,
compared to $118.1 million (ZAR 2.1 billion). Segment Adjusted
EBITDA increased to $8.4 million (ZAR 158.5 million) for the
quarter, a 7% increase in ZAR compared to Q3 2023.
- The Consumer Division reported
revenue of $17.9 million (ZAR 338.2 million), an increase of 19%
year-on-year in ZAR. Segment Adjusted EBITDA of $4.4 million (ZAR
82.3 million)1 in Q3 2024, a 178% increase in ZAR, compared to $1.6
million (ZAR 29.6 million) in Q3 2023.
- The Net debt to Group Adjusted
EBITDA2 ratio improved to 2.6 times compared to 2.9 times last
quarter (Q2 2024) and 4.2 times in Q3 2023.
- Revenue guidance for fiscal 2024 is
re-affirmed and Group Adjusted EBITDA guidance for fiscal 2024 has
been raised3 to between ZAR 685 million and ZAR 705 million.
Lesaka Group Chairman Ali
Mazanderani said, “I am pleased to report a continuation
of our strong and consistent performance. Adjusted EBITDA for the
quarter increased to R183 million, 47% growth year-on-year, and
Operating Income improved from a loss of R33 million in Q3 2023 to
a profit R15 million this quarter. Our net debt to Adjusted EBITDA
has reduced to 2.6 times from 4.2 times a year ago. We are excited
about the anticipated completion of the Adumo acquisition, we
believe it will facilitate an acceleration of our organic growth
story and cement Lesaka’s position as Southern Africa’s leading
Fintech.”
(1) Average exchange rates
applicable for the quarter: ZAR 18.88 to $1 for Q3 2024, ZAR 18.71
to $1 for Q2 2024, ZAR 17.93 to $1 for Q3 2023. The ZAR weakened
5.3% against the U.S. dollar during Q3 2024 when compared to Q3
2023 and 0.9% when compared to the prior sequential quarter (Q2
2024).(2) Non-GAAP measure. Lease expenses which
were previously excluded from the calculation of Group Adjusted
EBITDA have now been included in the calculation. This change is in
response to comments received from the staff of the SEC in March
2024 regarding our non-GAAP financial reporting. Comparative
information has been adjusted to conform with the updated
presentation. Net Debt to EBITDA ratio is calculated as net debt at
specific date divided by Annualized Group Adjusted
EBITDA.(3) Lease expenses, anticipated to be
approximately ZAR 55 million, were previously excluded from the
calculation of Group Adjusted EBITDA and the guidance included in
our Q2 2024 press release. On a comparable basis, the Group
Adjusted EBITDA guidance in our Q2 2024 press release would have
been between ZAR 625 million to ZAR 685 million after deducting ZAR
55 million of lease expenses.Summary Financial
Metrics
Three months ended
|
Three months ended |
|
|
|
|
|
|
|
|
|
Mar 31,2024 |
|
Mar 31,2023 |
|
Dec 31,2023 |
|
Q3 ’24 vs Q3 ’23 |
|
Q3 ’24 vs Q2 ’24 |
|
Q3 ’24 vs Q3 ’23 |
|
Q3 ’24 vs Q2 ’24 |
(All figures in
USD ‘000s except per share data) |
USD ‘000’s (except per share
data) |
|
% change in USD |
|
% change in ZAR |
Revenue |
138,194 |
|
|
133,968 |
|
|
143,893 |
|
|
3 |
% |
|
(4 |
%) |
|
9 |
% |
|
(3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income (loss) |
794 |
|
|
(1,853 |
) |
|
2,273 |
|
|
nm |
|
|
(65 |
%) |
|
nm |
|
|
(65 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to Lesaka |
(4,047 |
) |
|
(5,820 |
) |
|
(2,707 |
) |
|
(30 |
%) |
|
50 |
% |
|
(27 |
%) |
|
51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss per
share ($) |
(0.06 |
) |
|
(0.09 |
) |
|
(0.04 |
) |
|
(30 |
%) |
|
49 |
% |
|
(27 |
%) |
|
51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group Adjusted
EBITDA(1) |
9,703 |
|
|
6,950 |
|
|
8,952 |
|
|
40 |
% |
|
8 |
% |
|
47 |
% |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fundamental
earnings (loss) per share ($)(1) |
0.02 |
|
|
(0.02 |
) |
|
0.01 |
|
|
nm |
|
|
100 |
% |
|
nm |
|
|
102 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully-diluted
weighted average shares (‘000’s) |
63,805 |
|
|
63,854 |
|
|
63,805 |
|
|
(0 |
%) |
|
- |
|
|
n/a |
|
|
n/a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average period USD
/ ZAR exchange rate |
18.88 |
|
|
17.93 |
|
|
18.71 |
|
|
5 |
% |
|
1 |
% |
|
n/a |
|
|
n/a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
|
|
Nine months ended |
|
F2024 vs F2023 |
|
F2024 vs F2023 |
|
|
Mar 31, 2024 |
|
Mar 31, 2023 |
|
|
(All figures in
USD ‘000s except per share data) |
USD ‘000’s (except per share
data) |
% change in USD |
|
% change in ZAR |
Revenue |
418,176 |
|
|
394,822 |
|
|
6 |
% |
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income (loss) |
3,295 |
|
|
(8,716 |
) |
|
nm |
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to Lesaka |
(12,405 |
) |
|
(23,165 |
) |
|
(46 |
%) |
|
(42 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss per
share ($) |
(0.20 |
) |
|
(0.37 |
) |
|
(47 |
%) |
|
(42 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Group Adjusted
EBITDA(1) |
26,678 |
|
|
17,032 |
|
|
57 |
% |
|
69 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fundamental
earnings (loss) per share ($)(1) |
0.03 |
|
|
(0.11 |
) |
|
nm |
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully-diluted
weighted average shares (‘000’s) |
63,134 |
|
|
62,913 |
|
|
0 |
% |
|
n/a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average period USD
/ ZAR exchange rate |
18.76 |
|
|
17.40 |
|
|
8 |
% |
|
n/a |
|
(1) Group Adjusted EBITDA, fundamental earnings
(loss) and fundamental earnings (loss) per share are non-GAAP
measures and are described below under “Use of Non-GAAP
Measures—Group Adjusted EBITDA, and —Fundamental net earnings
(loss) and fundamental earnings (loss) per share.” See Attachment B
for a reconciliation of GAAP net loss attributable to Lesaka to
Group Adjusted EBITDA, and GAAP net loss to fundamental net
earnings (loss) and earnings (loss) per share.
Factors Impacting Comparability of Q3
2024 and Q3 2023 Results
- Higher revenue:
Our revenues increased 9% in ZAR, primarily due to an increase in
low margin prepaid airtime sales and other value-added services, as
well as higher transaction, insurance and lending revenues, which
was partially offset by lower hardware sales revenue in our POS
hardware distribution business given the lumpy nature of bulk
sales;
- Operating income
generated: Operating profitability continues to improve as
a result of the increase in the trading activity as noted above off
of a stable selling, general and administration base;
- Lower net interest
charge: The net interest charge decreased to $4.0 million
(ZAR 74.6 million) from $4.5 million (ZAR 81.0 million) primarily
due to higher interest rates; and
- Foreign exchange
movements: The U.S. dollar was 5% stronger against the ZAR
during Q3 2024 compared to the prior period, which adversely
impacted our U.S. dollar reported results.
Results of Operations by Segment and
Liquidity
Our chief operating decision maker was our Group
Chief Executive Officer through to February 29, 2024 and our
Executive Chairman from March 1, 2024, and each of them evaluated
segment performance based on segment earnings before interest, tax,
depreciation and amortization (“EBITDA”), adjusted for items
mentioned in the next sentence (“Segment Adjusted EBITDA”). We do
not allocate once-off items, stock-based compensation charges,
certain lease expenses, depreciation and amortization, impairment
of goodwill or other intangible assets, other items (including
gains or losses on disposal of investments, fair value adjustments
to equity securities, fair value adjustments to currency options),
interest income, interest expense, income tax expense or loss from
equity-accounted investments to our reportable segments. See
Attachment B for a reconciliation of GAAP net income before tax to
Group Adjusted EBITDA.
Merchant
Merchant Division revenue was $121.0 million in
Q3 2024, up 8% compared to Q3 2023 in ZAR. Segment revenue
increased due to the increase in prepaid airtime vouchers sold and
other value-added services provided, which was partially offset by
a lower number of hardware sales in our POS hardware distribution
business given the lumpy nature of bulk sales as well as lower
revenue generated from a decrease in certain valued-added services
transaction volumes processed (such as international money
transfers). In ZAR, the increase in Segment Adjusted EBITDA is
primarily due to the higher sales activity, which was partially
offset by lower hardware sales. Connect records a significant
proportion of its airtime sales in revenue (see further below) and
cost of sales, while only earning a relatively small margin. This
significantly depresses the Segment Adjusted EBITDA margins shown
by the business. Our Segment Adjusted EBITDA margin (calculated as
Segment Adjusted EBITDA divided by revenue) for Q3 2024 and Q3 2023
was 6.9% and 7.0%, respectively.
Consumer
Consumer Division revenue was $17.9 million in
Q3 2024, 19% higher in ZAR compared to Q3 2023. Segment revenue
increased primarily due to higher transaction fees generated from
the higher EPE account holders base, insurance premiums collected
and lending revenues following an increase in loan originations.
This increase in revenue has translated into improved
profitability, which was partially offset by higher
insurance-related claims and higher employee-related expenses and
the year-over-year impact of inflationary increases on certain
expenses. Our Segment Adjusted EBITDA margin for Q3 2024 and 2023
was 24.3% and 10.4%, respectively.
Group costs
Our group costs primarily include employee
related costs in relation to employees specifically hired for group
roles and costs related directly to managing the US-listed entity;
expenditures related to compliance with the Sarbanes-Oxley Act of
2002; non-employee directors’ fees; legal fees; group and US-listed
related audit fees; and directors’ and officers’ insurance
premiums. Our group costs for fiscal 2024 decreased modestly
compared with the prior period due to lower external audit, legal
fees and lower provision for executive bonuses, which was partially
offset by higher employee (base salary) costs, consulting fees and
travel expenses.
Cash flow and liquidity
As of March 31, 2024, our cash and cash
equivalents were $55.2 million and comprised of U.S.
dollar-denominated balances of $3.4 million, ZAR-denominated
balances of ZAR 942.2 million ($49.9 million), and other currency
deposits, primarily Botswana pula, of $2.0 million, all amounts
translated at exchange rates applicable as of March 31, 2024. The
increase in our unrestricted cash balances from June 30, 2023, was
primarily due to a positive contribution from our Merchant and
Consumer operations and utilization of our borrowings facilities to
fund certain components of our operations, which was partially
offset by the utilization of cash reserves to fund certain
scheduled and other repayments of our borrowings, purchase ATMs and
vaults, and to make an investment in working capital.
Outlook for the Fourth Quarter 2024 (“Q4
2024”) and Full Fiscal Year 2024 (“FY 2024”)
Lease expenses which were previously excluded
from the calculation of Group Adjusted EBITDA have now been
included in the calculation. This change is in response to comments
received from the staff of the SEC in March 2024 regarding our
non-GAAP financial reporting. Comparative information has been
adjusted to conform with the updated presentation.
While we report our financial results in USD, we measure our
operating performance in ZAR, and as such we provide our guidance
accordingly.
We re-affirm our revenue outlook for FY 2024. We
expect:
- Revenue between ZAR 10.7 billion
and ZAR 11.7 billion.
We raise* our Group Adjusted EBITDA outlook for
FY 2024. We expect:
- Group Adjusted EBITDA between ZAR
685 million and ZAR 705 million.
Our outlook provided does not include the impact
of the acquisition of Touchsides or any mergers and acquisitions
that we conclude.
*Lease expenses, which are anticipated to be
approximately ZAR 55 million and which were previously excluded
from the calculation of Group Adjusted EBITDA, have been included
in our raised Group Adjusted EBITDA guidance. On a comparable
basis, the Group Adjusted EBITDA guidance included in our Q2 2024
press release would have been between ZAR 625 million to ZAR 685
million after deducting the ZAR 55 million of lease expenses.
Management has provided its outlook regarding
Group Adjusted EBITDA, which is a non-GAAP financial measure and
excludes certain charges. Management has not reconciled this
non-GAAP financial measure to the corresponding GAAP financial
measure because guidance for the various reconciling items is not
provided. Management is unable to provide guidance for these
reconciling items because they cannot determine their probable
significance, as certain items are outside of the company's control
and cannot be reasonably predicted since these items could vary
significantly from period to period. Accordingly, reconciliations
to the corresponding GAAP financial measure is not available
without unreasonable effort.
Earnings Presentation for Q3 2024
Results
Our earnings presentation for Q3 2024 will be posted to the
Investor Relations page of our website prior to our earnings
call.
Webcast and Conference Call
Lesaka will host a webcast and conference call
to review results on May 9, 2024, at 8:00 a.m. Eastern Time which
is 2:00 p.m. South Africa Standard Time (“SAST”). A replay of the
results presentation webcast will be available on the Lesaka
investor relations website following the conclusion of the live
event.
Webcast Details
- Link to access the results webcast: https://bit.ly/3TSfxUD
- Webcast ID: 998 0150 9829
Participants using the webcast will be able to ask questions by
raising their hand and then asking the question “live.”
Conference Call Dial-in:
- US Toll-Free: +1 309 205 3325 or +1 312 626
6799
- South Africa Toll-Free: + 27 87 551 7702 or +27
21 426 8190
- Passcode: 998 0150 9829#
Participants using the conference call dial-in will be unable to
ask questions.
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 Group
Adjusted EBITDA, Group Adjusted EBITDA margin, fundamental net
(loss) income, fundamental (loss) earnings per share, and headline
(loss) earnings per share are non-GAAP measures.
Non-GAAP Measures
Group Adjusted EBITDA is net loss before
interest, taxes, depreciation and amortization, adjusted for
non-operational transactions (including loss on disposal of
equity-accounted investments), loss from equity-accounted
investments, stock-based compensation charges and once-off items.
Once-off items represents non-recurring expense items, including
costs related to acquisitions and transactions consummated or
ultimately not pursued. Group Adjusted EBITDA margin is Group
Adjusted EBITDA divided by revenue.
Fundamental net earnings (loss) and fundamental earnings
(loss) per share
Fundamental net earnings (loss) and earnings
(loss) per share is GAAP net loss and loss 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 earnings (loss) and earnings
(loss) per share for fiscal 2024 also includes an impairment loss
related to an equity-accounted investment, unrealized currency loss
related to our non-core business which we are in the process of
winding down and a reversal of allowance for doubtful loan
receivable. Fundamental net loss and loss per share for fiscal 2023
also includes change in tax rate, a net gain on disposal of
equity-accounted investments, impairment losses related to an
equity-accounted investment and an adjustment for an unrealized
currency loss related to our non-core business which we are in the
process of winding down.
Management believes that the Group Adjusted
EBITDA, fundamental net earnings (loss) and fundamental earnings
(loss) 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 net loss attributable to
Lesaka and these non-GAAP measures.
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 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 H(L)EPS basic and diluted and the
calculation of the denominator for headline diluted (loss) earnings
per share.
About Lesaka (www.lesakatech.com)
Lesaka Technologies, (Lesaka™) is a South
African Fintech company that utilizes its proprietary banking and
payment technologies to deliver superior financial services
solutions to merchants (B2B) and consumers (B2C) in Southern
Africa. Lesaka’s mission is to drive true financial inclusion for
both merchant and consumer markets through offering affordable
financial services to previously underserved sectors of the
economy. Lesaka offers cash management solutions, growth capital,
card acquiring, bill payment technologies and value-added services
to retail merchants as well as banking, lending, and insurance
solutions to consumers across Southern Africa.
Lesaka has a primary listing on NASDAQ
(NasdaqGS: LSAK) and a secondary listing on the Johannesburg Stock
Exchange (JSE: LSK). Visit www.lesakatech.com for additional
information about Lesaka Technologies (Lesaka™).
Forward-Looking Statements
This press release contains certain statements
that may be considered forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and such statements are subject to the safe harbor created by those
sections and the Private Securities Litigation Reform Act of 1995,
as amended. Such statements may be identified by their use of terms
or phrases such as “expects,” “estimates,” “projects,” “believes,”
“anticipates,” “plans,” “could,” “would,” “may,” “will,” “intends,”
“outlook,” “focus,” “seek,” “potential,” “mission,” “continue,”
“goal,” “target,” “objective,” derivations thereof, and similar
terms and phrases. Forward-looking statements are based upon the
current beliefs and expectations of our management and are
inherently subject to risks and uncertainties, some of which cannot
be predicted or quantified, which could cause future events and
actual results to differ materially from those set forth in,
contemplated by, or underlying the forward-looking statements. In
this press release, statements relating to future financial results
and future financing and business opportunities are forward-looking
statements. Additional information concerning factors that could
cause actual events or results to differ materially from those in
any forward-looking statement is contained in our Form 10-K for the
fiscal year ended June 30, 2023, as filed with the SEC, as well as
other documents we have filed or will file with the SEC. We assume
no obligation to update the information in this press release, to
revise any forward-looking statements or to update the reasons
actual results could differ materially from those anticipated in
forward-looking statements.
Investor Relations Contact:Phillipe
WelthagenEmail: phillipe.welthagen@lesakatech.comMobile: +27 84 512
5393
FNK IR:Rob Fink / Matt Chesler, CFAEmail:
lsak@fnkir.com
Media Relations Contact:Janine Bester
GertzenEmail: janine@thenielsennetwork.com
|
LESAKA TECHNOLOGIES, INC. |
Unaudited Condensed Consolidated Statements of
Operations |
|
|
Unaudited |
|
Unaudited |
|
|
Three months ended |
|
Nine months ended |
|
|
March 31, |
|
March 31, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE |
|
$ |
138,194 |
|
|
$ |
133,968 |
|
|
$ |
418,176 |
|
|
$ |
394,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold, IT processing, servicing and support |
|
|
107,854 |
|
|
|
105,299 |
|
|
|
329,610 |
|
|
|
314,651 |
|
Selling, general and administration |
|
|
23,124 |
|
|
|
24,547 |
|
|
|
67,146 |
|
|
|
70,995 |
|
Depreciation and amortization |
|
|
5,791 |
|
|
|
5,975 |
|
|
|
17,460 |
|
|
|
17,892 |
|
Transaction costs related to Adumo acquisition |
|
|
631 |
|
|
|
- |
|
|
|
665 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
(LOSS) |
|
|
794 |
|
|
|
(1,853 |
) |
|
|
3,295 |
|
|
|
(8,716 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
REVERSAL OF
ALLOWANCE FOR DOUBTFUL EMI LOAN RECEIVABLE |
|
|
- |
|
|
|
- |
|
|
|
250 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS ON DISPOSAL
OF EQUITY-ACCOUNTED INVESTMENT |
|
|
- |
|
|
|
329 |
|
|
|
- |
|
|
|
193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
INCOME |
|
|
628 |
|
|
|
469 |
|
|
|
1,562 |
|
|
|
1,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE |
|
|
4,581 |
|
|
|
4,984 |
|
|
|
14,312 |
|
|
|
13,408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAX EXPENSE (BENEFIT) |
|
|
(3,159 |
) |
|
|
(6,697 |
) |
|
|
(9,205 |
) |
|
|
(21,048 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE
(BENEFIT) |
|
|
931 |
|
|
|
(860 |
) |
|
|
1,881 |
|
|
|
(465 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS BEFORE
EARNINGS (LOSS) FROM EQUITY-ACCOUNTED INVESTMENTS |
|
|
(4,090 |
) |
|
|
(5,837 |
) |
|
|
(11,086 |
) |
|
|
(20,583 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS)
FROM EQUITY-ACCOUNTED INVESTMENTS |
|
|
43 |
|
|
|
17 |
|
|
|
(1,319 |
) |
|
|
(2,582 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
ATTRIBUTABLE TO LESAKA |
|
$ |
(4,047 |
) |
|
$ |
(5,820 |
) |
|
$ |
(12,405 |
) |
|
$ |
(23,165 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
per share, in United States dollars: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss
attributable to Lesaka shareholders |
|
$ |
(0.06 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.37 |
) |
Diluted loss
attributable to Lesaka shareholders |
|
$ |
(0.06 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.37 |
) |
|
LESAKA TECHNOLOGIES, INC. |
Unaudited Condensed Consolidated Balance
Sheets |
|
Unaudited |
|
(A) |
|
March 31, |
|
June 30, |
|
2024 |
|
2023 |
|
(In thousands, except share data) |
ASSETS |
|
|
|
|
|
CURRENT
ASSETS |
|
|
|
|
|
Cash and cash equivalents |
$ |
55,223 |
|
|
$ |
35,499 |
|
Restricted cash |
|
4,383 |
|
|
|
23,133 |
|
Accounts receivable, net of allowance of - March: $85; June: $509
and other receivables |
|
34,331 |
|
|
|
25,665 |
|
Finance loans receivable, net of allowance of - March: $4,519;
June: $3,582 |
|
40,754 |
|
|
|
36,744 |
|
Inventory |
|
21,789 |
|
|
|
27,337 |
|
Total current assets before settlement assets |
|
156,480 |
|
|
|
148,378 |
|
Settlement assets |
|
29,300 |
|
|
|
15,258 |
|
Total current assets |
|
185,780 |
|
|
|
163,636 |
|
PROPERTY, PLANT
AND EQUIPMENT, net of accumulated depreciation of - March: $40,276;
June: $36,563 |
|
27,918 |
|
|
|
27,447 |
|
OPERATING LEASE
RIGHT-OF-USE |
|
5,533 |
|
|
|
4,731 |
|
EQUITY-ACCOUNTED
INVESTMENTS |
|
159 |
|
|
|
3,171 |
|
GOODWILL |
|
133,473 |
|
|
|
133,743 |
|
INTANGIBLE ASSETS,
net of accumulated amortization of - March: $40,897; June:
$30,173 |
|
110,798 |
|
|
|
121,597 |
|
DEFERRED INCOME
TAXES |
|
9,793 |
|
|
|
10,315 |
|
OTHER LONG-TERM
ASSETS, including reinsurance assets |
|
78,035 |
|
|
|
77,594 |
|
TOTAL
ASSETS |
|
551,489 |
|
|
|
542,234 |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
|
Short-term credit facilities for ATM funding |
|
4,272 |
|
|
|
23,021 |
|
Short-term credit facilities |
|
9,006 |
|
|
|
9,025 |
|
Accounts payable |
|
19,018 |
|
|
|
12,380 |
|
Other payables |
|
49,470 |
|
|
|
36,297 |
|
Operating lease liability - current |
|
1,763 |
|
|
|
1,747 |
|
Current portion of long-term borrowings |
|
3,269 |
|
|
|
3,663 |
|
Income taxes payable |
|
1,565 |
|
|
|
1,005 |
|
Total current liabilities before settlement obligations |
|
88,363 |
|
|
|
87,138 |
|
Settlement obligations |
|
27,820 |
|
|
|
14,774 |
|
Total current liabilities |
|
116,183 |
|
|
|
101,912 |
|
DEFERRED INCOME
TAXES |
|
43,878 |
|
|
|
46,840 |
|
OPERATING LEASE
LIABILITY - LONG TERM |
|
3,912 |
|
|
|
3,138 |
|
LONG-TERM
BORROWINGS |
|
132,398 |
|
|
|
129,455 |
|
OTHER LONG-TERM
LIABILITIES, including insurance policy liabilities |
|
2,602 |
|
|
|
1,982 |
|
TOTAL
LIABILITIES |
|
298,973 |
|
|
|
283,327 |
|
REDEEMABLE COMMON
STOCK |
|
79,429 |
|
|
|
79,429 |
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
LESAKA
EQUITY: |
|
|
|
|
|
COMMON STOCK |
|
|
|
|
|
Authorized: 200,000,000 with $0.001 par value; |
|
|
|
|
|
Issued and outstanding shares, net of treasury: March: 64,466,830;
June: 63,640,246 |
|
83 |
|
|
|
83 |
|
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 |
|
341,287 |
|
|
|
335,696 |
|
TREASURY SHARES,
AT COST: March: 25,297,772; June: 25,244,286 |
|
(288,445 |
) |
|
|
(288,238 |
) |
ACCUMULATED OTHER
COMPREHENSIVE LOSS |
|
(195,096 |
) |
|
|
(195,726 |
) |
RETAINED
EARNINGS |
|
315,258 |
|
|
|
327,663 |
|
TOTAL LESAKA
EQUITY |
|
173,087 |
|
|
|
179,478 |
|
NON-CONTROLLING
INTEREST |
|
- |
|
|
|
- |
|
TOTAL
EQUITY |
|
173,087 |
|
|
|
179,478 |
|
|
|
|
|
|
|
TOTAL
LIABILITIES, REDEEMABLE COMMON STOCK AND SHAREHOLDERS’
EQUITY |
$ |
551,489 |
|
|
$ |
542,234 |
|
(A) Derived from audited consolidated financial statements.
|
LESAKA TECHNOLOGIES, INC. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
|
Unaudited |
|
Unaudited |
|
Three months ended |
|
Nine months ended |
|
March 31, |
|
March 31, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from operating activities |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(4,047 |
) |
|
$ |
(5,820 |
) |
|
$ |
(12,405 |
) |
|
$ |
(23,165 |
) |
Depreciation and amortization |
|
5,791 |
|
|
|
5,975 |
|
|
|
17,460 |
|
|
|
17,892 |
|
Movement in allowance for doubtful accounts receivable and finance
loans receivable |
|
843 |
|
|
|
1,638 |
|
|
|
3,532 |
|
|
|
4,167 |
|
Movement in interest payable |
|
1,054 |
|
|
|
1,827 |
|
|
|
1,245 |
|
|
|
3,289 |
|
Fair value adjustment related to financial liabilities |
|
(49 |
) |
|
|
(21 |
) |
|
|
(919 |
) |
|
|
123 |
|
Gain on disposal of equity-accounted investments |
|
- |
|
|
|
329 |
|
|
|
- |
|
|
|
193 |
|
(Gain) Loss from equity-accounted investments |
|
(43 |
) |
|
|
(17 |
) |
|
|
1,319 |
|
|
|
2,582 |
|
Reversal of allowance for doubtful loans receivable |
|
- |
|
|
|
- |
|
|
|
(250 |
) |
|
|
- |
|
Profit on disposal of property, plant and equipment |
|
(89 |
) |
|
|
(145 |
) |
|
|
(288 |
) |
|
|
(466 |
) |
Facility fee amortized |
|
65 |
|
|
|
198 |
|
|
|
381 |
|
|
|
643 |
|
Stock-based compensation charge |
|
2,090 |
|
|
|
1,644 |
|
|
|
5,653 |
|
|
|
5,955 |
|
Dividends received from equity accounted investments |
|
41 |
|
|
|
- |
|
|
|
95 |
|
|
|
21 |
|
Decrease (Increase) in accounts receivable and other
receivables |
|
5,687 |
|
|
|
(7,620 |
) |
|
|
(9,815 |
) |
|
|
(8,601 |
) |
Increase in finance loans receivable |
|
(3,720 |
) |
|
|
(2,507 |
) |
|
|
(7,097 |
) |
|
|
(11,318 |
) |
Decrease (Increase) in inventory |
|
5,000 |
|
|
|
(297 |
) |
|
|
5,506 |
|
|
|
(1,769 |
) |
Increase in accounts payable and other payables |
|
6,463 |
|
|
|
1,030 |
|
|
|
20,566 |
|
|
|
5,421 |
|
Increase in taxes payable |
|
904 |
|
|
|
1,349 |
|
|
|
558 |
|
|
|
1,478 |
|
Decrease in deferred taxes |
|
(810 |
) |
|
|
(2,670 |
) |
|
|
(2,404 |
) |
|
|
(5,792 |
) |
Net cash provided by (used) in operating
activities |
|
19,180 |
|
|
|
(5,107 |
) |
|
|
23,137 |
|
|
|
(9,347 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from investing activities |
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
(2,943 |
) |
|
|
(4,717 |
) |
|
|
(7,950 |
) |
|
|
(13,210 |
) |
Proceeds from disposal of property, plant and equipment |
|
395 |
|
|
|
394 |
|
|
|
1,115 |
|
|
|
1,156 |
|
Acquisition of intangible assets |
|
(54 |
) |
|
|
(125 |
) |
|
|
(236 |
) |
|
|
(245 |
) |
Proceeds from disposal of equity-accounted investment |
|
- |
|
|
|
254 |
|
|
|
3,508 |
|
|
|
645 |
|
Repayment of loans by equity-accounted investments |
|
- |
|
|
|
- |
|
|
|
250 |
|
|
|
112 |
|
Loan to equity-accounted investment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(112 |
) |
Net change in settlement assets |
|
(3,088 |
) |
|
|
11,043 |
|
|
|
(14,368 |
) |
|
|
(972 |
) |
Net cash (used in) provided by investing
activities |
|
(5,690 |
) |
|
|
6,849 |
|
|
|
(17,681 |
) |
|
|
(12,626 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities |
|
|
|
|
|
|
|
|
|
|
|
Proceeds from bank overdraft |
|
24,893 |
|
|
|
128,196 |
|
|
|
153,479 |
|
|
|
441,488 |
|
Repayment of bank overdraft |
|
(43,380 |
) |
|
|
(135,986 |
) |
|
|
(172,221 |
) |
|
|
(448,288 |
) |
Long-term borrowings utilized |
|
3,398 |
|
|
|
12,868 |
|
|
|
14,426 |
|
|
|
23,010 |
|
Repayment of long-term borrowings |
|
(7,238 |
) |
|
|
(2,024 |
) |
|
|
(13,051 |
) |
|
|
(5,292 |
) |
Acquisition of treasury stock |
|
(9 |
) |
|
|
(178 |
) |
|
|
(207 |
) |
|
|
(471 |
) |
Proceeds from issue of shares |
|
48 |
|
|
|
114 |
|
|
|
71 |
|
|
|
447 |
|
Guarantee fee |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(100 |
) |
Net change in settlement obligations |
|
2,469 |
|
|
|
(10,761 |
) |
|
|
13,362 |
|
|
|
807 |
|
Net (used in) cash provided by financing
activities |
|
(19,819 |
) |
|
|
(7,771 |
) |
|
|
(4,141 |
) |
|
|
11,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash |
|
(1,903 |
) |
|
|
(3,475 |
) |
|
|
(341 |
) |
|
|
(7,156 |
) |
Net
increase (decrease) in cash, cash equivalents and restricted
cash |
|
(8,232 |
) |
|
|
(9,504 |
) |
|
|
974 |
|
|
|
(17,528 |
) |
Cash, cash
equivalents and restricted cash – beginning of period |
|
67,838 |
|
|
|
96,776 |
|
|
|
58,632 |
|
|
|
104,800 |
|
Cash, cash
equivalents and restricted cash – end of period |
$ |
59,606 |
|
|
$ |
87,272 |
|
|
$ |
59,606 |
|
|
$ |
87,272 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lesaka Technologies, Inc.
Attachment A
Operating segment revenue, operating
(loss) income and operating (loss) margin:
Three months ended March 31, 2024, and
2023 and December 31, 2023
|
|
Three months ended |
Change - actual |
Change – constant exchange
rate(1) |
|
|
Mar 31, 2024 |
|
Mar 31, 2023 |
|
Dec 31, 2023 |
Q3 ’24 vs Q3 ’23 |
Q3 ’24 vs Q2 ’24 |
Q3 ’24 vs Q3 ’23 |
Q3 ’24 vs Q2 ’24 |
Key segmental data, in ’000, except margins |
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchant |
|
$ |
121,013 |
|
|
$ |
118,092 |
|
|
$ |
127,870 |
|
2 |
% |
(5 |
%) |
8 |
% |
(5 |
%) |
Consumer |
|
|
17,904 |
|
|
|
15,876 |
|
|
|
16,707 |
|
13 |
% |
7 |
% |
19 |
% |
8 |
% |
Subtotal: Operating segments |
|
|
138,917 |
|
|
|
133,968 |
|
|
|
144,577 |
|
4 |
% |
(4 |
%) |
9 |
% |
(3 |
%) |
Intersegment eliminations |
|
|
(723 |
) |
|
|
- |
|
|
|
(684 |
) |
nm |
6 |
% |
nm |
7 |
% |
Consolidated revenue |
|
$ |
138,194 |
|
|
$ |
133,968 |
|
|
$ |
143,893 |
|
3 |
% |
(4 |
%) |
9 |
% |
(3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchant |
|
$ |
8,394 |
|
|
$ |
8,290 |
|
|
$ |
8,693 |
|
1 |
% |
(3 |
%) |
7 |
% |
(3 |
%) |
Consumer |
|
|
4,358 |
|
|
|
1,649 |
|
|
|
2,948 |
|
164 |
% |
48 |
% |
178 |
% |
49 |
% |
Lease costs |
|
|
(850 |
) |
|
|
(696 |
) |
|
|
(678 |
) |
22 |
% |
25 |
% |
29 |
% |
26 |
% |
Group costs |
|
|
(2,199 |
) |
|
|
(2,293 |
) |
|
|
(2,011 |
) |
(4 |
%) |
9 |
% |
1 |
% |
10 |
% |
Group Adjusted EBITDA |
|
$ |
9,703 |
|
|
$ |
6,950 |
|
|
$ |
8,952 |
|
40 |
% |
8 |
% |
47 |
% |
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Adjusted EBITDA margin (%) |
|
|
|
|
|
|
|
|
|
|
|
Merchant |
|
|
6.9 |
% |
|
|
7.0 |
% |
|
|
6.8 |
% |
|
|
|
|
Consumer |
|
|
24.3 |
% |
|
|
10.4 |
% |
|
|
17.6 |
% |
|
|
|
|
Group Adjusted EBITDA margin |
|
|
7.0 |
% |
|
|
5.2 |
% |
|
|
6.2 |
% |
|
|
|
|
(1) – This information shows
what the change in these items would have been if the USD/ ZAR
exchange rate that prevailed during Q3 2024 also prevailed during
Q3 2023 and Q2 2024.
Nine months ended March 31, 2024 and
2023
|
|
|
|
|
|
|
|
Change - actual |
Change – constant exchange
rate(1) |
|
|
Nine months ended March 31, |
|
F2024
vsF2023 |
F2024
vsF2023 |
Key segmental data, in ’000, except margins |
|
2024 |
|
2023 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
Merchant |
|
$ |
370,244 |
|
|
$ |
348,508 |
|
|
6 |
% |
14 |
% |
Consumer |
|
|
50,191 |
|
|
|
46,314 |
|
|
8 |
% |
17 |
% |
Subtotal: Operating segments |
|
|
420,435 |
|
|
|
394,822 |
|
|
6 |
% |
15 |
% |
Intersegment eliminations |
|
|
(2,259 |
) |
|
|
- |
|
|
nm |
|
nm |
|
Consolidated revenue |
|
$ |
418,176 |
|
|
$ |
394,822 |
|
|
6 |
% |
14 |
% |
|
|
|
|
|
|
|
|
|
|
Segment
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
Merchant |
|
$ |
25,148 |
|
|
$ |
25,303 |
|
|
(1 |
%) |
7 |
% |
Consumer |
|
|
9,786 |
|
|
|
833 |
|
|
1,075 |
% |
1,168 |
% |
Lease costs |
|
|
(2,224 |
) |
|
|
(2,255 |
) |
|
(1 |
%) |
6 |
% |
Group costs |
|
|
(6,032 |
) |
|
|
(6,849 |
) |
|
(12 |
%) |
(5 |
%) |
Group Adjusted EBITDA |
|
$ |
26,678 |
|
|
$ |
17,032 |
|
|
57 |
% |
69 |
% |
|
|
|
|
|
|
|
|
|
|
Segment
Adjusted EBITDA (loss) margin (%) |
|
|
|
|
|
|
|
|
|
Merchant |
|
|
6.8 |
% |
|
|
7.3 |
% |
|
|
|
Consumer |
|
|
19.5 |
% |
|
|
1.8 |
% |
|
|
|
Group Adjusted EBITDA (loss) margin |
|
|
6.4 |
% |
|
|
4.3 |
% |
|
|
|
(1) – This information shows
what the change in these items would have been if the USD/ ZAR
exchange rate that prevailed during the year to date fiscal 2024
also prevailed during the year to date fiscal 2023.
Loss from equity-accounted
investments:
The table below presents the relative loss from
our equity-accounted investments:
|
|
Three months ended March 31, |
|
|
Nine months ended March 31, |
|
|
|
2024 |
|
|
2023 |
|
% change |
|
|
2024 |
|
|
|
2023 |
|
|
% change |
Finbond |
$ |
- |
|
$ |
- |
|
nm |
|
|
$ |
(1,445 |
) |
|
|
(2,631 |
) |
|
(45 |
%) |
|
Share of net loss |
|
- |
|
|
- |
|
nm |
|
|
|
(278 |
) |
|
|
(1,521 |
) |
|
(82 |
%) |
|
Impairment |
|
- |
|
|
- |
|
nm |
|
|
|
(1,167 |
) |
|
|
(1,110 |
) |
|
5 |
% |
Other |
|
43 |
|
|
17 |
|
153 |
% |
|
|
126 |
|
|
|
49 |
|
|
157 |
% |
|
Share of net income |
|
43 |
|
|
17 |
|
153 |
% |
|
|
126 |
|
|
|
49 |
|
|
157 |
% |
|
Loss from equity-accounted investments |
$ |
43 |
|
$ |
17 |
|
153 |
% |
|
$ |
(1,319 |
) |
|
$ |
(2,582 |
) |
|
(49 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lesaka Technologies, Inc.
Attachment B
Reconciliation of GAAP loss attributable
to Lesaka to Group Adjusted EBITDA loss:
Three and nine months ended March 31,
2024 and 2023
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
|
|
|
March 31, |
|
Dec 31, |
|
March 31, |
|
|
|
|
|
|
2024 |
|
2023 |
|
2023 |
|
2024 |
|
2023 |
Loss
attributable to Lesaka - GAAP |
$ |
(4,047 |
) |
|
$ |
(5,820 |
) |
|
$ |
(2,707 |
) |
|
$ |
(12,405 |
) |
|
$ |
(23,165 |
) |
Loss from equity
accounted investments |
|
(43 |
) |
|
|
(17 |
) |
|
|
(43 |
) |
|
|
1,319 |
|
|
|
2,582 |
|
|
Net loss before
(earnings) loss from equity-accounted investments |
|
(4,090 |
) |
|
|
(5,837 |
) |
|
|
(2,750 |
) |
|
|
(11,086 |
) |
|
|
(20,583 |
) |
|
Income tax
(benefit) expense |
|
931 |
|
|
|
(860 |
) |
|
|
686 |
|
|
|
1,881 |
|
|
|
(465 |
) |
|
|
Loss before income
tax expense |
|
(3,159 |
) |
|
|
(6,697 |
) |
|
|
(2,064 |
) |
|
|
(9,205 |
) |
|
|
(21,048 |
) |
|
|
Reversal of
allowance for doubtful EMI loans receivable |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(250 |
) |
|
|
- |
|
|
|
Net (gain) loss on
disposal of equity-accounted investment |
|
- |
|
|
|
329 |
|
|
|
- |
|
|
|
- |
|
|
|
193 |
|
|
|
Unrealized (gain)
loss FV for currency adjustments |
|
121 |
|
|
|
43 |
|
|
|
(122 |
) |
|
|
101 |
|
|
|
43 |
|
|
|
Operating
income/(loss) after PPA amortization and net interest
(non-GAAP) |
|
(3,038 |
) |
|
|
(6,325 |
) |
|
|
(2,186 |
) |
|
|
(9,354 |
) |
|
|
(20,812 |
) |
|
|
PPA amortization
(amortization of acquired intangible assets) |
|
3,562 |
|
|
|
3,789 |
|
|
|
3,592 |
|
|
|
10,762 |
|
|
|
11,559 |
|
|
|
|
Operating
income/(loss) before PPA amortization after net interest
(non-GAAP) |
|
524 |
|
|
|
(2,536 |
) |
|
|
1,406 |
|
|
|
1,408 |
|
|
|
(9,253 |
) |
|
|
|
Interest
expense |
|
4,581 |
|
|
|
4,984 |
|
|
|
4,822 |
|
|
|
14,312 |
|
|
|
13,408 |
|
|
|
|
Interest
income |
|
(628 |
) |
|
|
(469 |
) |
|
|
(485 |
) |
|
|
(1,562 |
) |
|
|
(1,269 |
) |
|
|
|
|
Operating
income/(loss) before PPA amortization and net interest
(non-GAAP) |
|
4,477 |
|
|
|
1,979 |
|
|
|
5,743 |
|
|
|
14,158 |
|
|
|
2,886 |
|
|
|
|
|
Depreciation
(excluding amortization of intangibles) |
|
2,229 |
|
|
|
2,186 |
|
|
|
2,221 |
|
|
|
6,698 |
|
|
|
6,333 |
|
|
|
|
|
Stock-based
compensation charges |
|
2,090 |
|
|
|
1,644 |
|
|
|
1,804 |
|
|
|
5,653 |
|
|
|
5,955 |
|
|
|
|
|
Once-off
items |
|
907 |
|
|
|
1,141 |
|
|
|
(816 |
) |
|
|
169 |
|
|
|
1,858 |
|
|
|
|
|
|
Group Adjusted EBITDA - Non-GAAP |
$ |
9,703 |
|
|
$ |
6,950 |
|
|
$ |
8,952 |
|
|
$ |
26,678 |
|
|
$ |
17,032 |
|
|
Three months ended |
|
Nine months ended |
|
March 31, |
|
Dec 31, |
|
March 31, |
|
2024 |
|
2023 |
|
2023 |
|
|
2024 |
|
|
2023 |
Once-off
items comprises: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction costs |
$ |
276 |
|
$ |
470 |
|
$ |
102 |
|
|
$ |
456 |
|
|
$ |
792 |
Transaction costs related to Adumo acquisition |
|
631 |
|
|
- |
|
|
34 |
|
|
|
665 |
|
|
|
- |
(Income recognized) Expenses incurred related to closure of legacy
businesses |
|
- |
|
|
- |
|
|
(952 |
) |
|
|
(952 |
) |
|
|
395 |
Indirect taxes provision |
|
- |
|
|
438 |
|
|
- |
|
|
|
- |
|
|
|
438 |
Separation of employee expense |
|
- |
|
|
183 |
|
|
- |
|
|
|
- |
|
|
|
183 |
Employee misappropriation of company funds |
|
- |
|
|
50 |
|
|
- |
|
|
|
- |
|
|
|
50 |
|
$ |
907 |
|
$ |
1,141 |
|
$ |
(816 |
) |
|
$ |
169 |
|
|
$ |
1,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Once-off items are non-recurring in nature,
however, certain items may be reported in multiple quarters. For
instance, transaction costs include costs incurred related to
acquisitions and transactions consummated or ultimately not
pursued. The transactions can span multiple quarters, for instance
in fiscal 2022 we incurred significant transaction costs related to
the acquisition of Connect over a number of quarters, and the
transactions are generally non-recurring.
(Income recognized) Expenses incurred related to
closure of legacy businesses represents (i) gains recognized
related to the release of the foreign currency translation reserve
on deconsolidation of a subsidiaries and (ii) costs incurred
related to subsidiaries which we are in the process of
deregistering/ liquidation and therefore we consider these costs
non-operational and ad hoc in nature. Indirect tax provision
includes non-recurring indirect taxes which have been provided
related to prior periods following an on-going investigation from a
tax authority. We incurred separation costs related to the
termination of certain senior-level employees, including an
executive officer and senior managers, during the period and we
consider these specific terminations to be of a non-recurring
nature. Employee misappropriation of company funds represents a
once-off loss incurred.
Reconciliation of GAAP net loss and loss
per share, basic, to fundamental net earnings (loss) and earnings
(loss) per share, basic:
Three months ended March 31, 2024 and
2023
|
Net (loss) income(USD '000) |
|
(L)PS, basic (USD) |
|
Net (loss) income(ZAR '000) |
|
(L)PS, basic (ZAR) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
GAAP |
(4,047 |
) |
|
(5,820 |
) |
|
(0.06 |
) |
|
(0.09 |
) |
|
(76,415 |
) |
|
(104,363 |
) |
|
(1.19 |
) |
|
(1.64 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset amortization,
net |
2,624 |
|
|
2,701 |
|
|
|
|
|
|
49,104 |
|
|
48,434 |
|
|
|
|
|
Stock-based compensation
charge |
2,090 |
|
|
1,644 |
|
|
|
|
|
|
39,482 |
|
|
29,480 |
|
|
|
|
|
Change in tax rate |
- |
|
|
(1,299 |
) |
|
|
|
|
|
- |
|
|
(23,293 |
) |
|
|
|
|
Transaction costs |
907 |
|
|
374 |
|
|
|
|
|
|
17,124 |
|
|
6,706 |
|
|
|
|
|
Net loss on disposal of
equity-accounted investments |
- |
|
|
329 |
|
|
|
|
|
|
- |
|
|
5,900 |
|
|
|
|
|
Other |
- |
|
|
810 |
|
|
|
|
|
|
- |
|
|
14,525 |
|
|
|
|
|
Fundamental |
1,574 |
|
|
(1,261 |
) |
|
0.02 |
|
|
(0.02 |
) |
|
29,295 |
|
|
(22,611 |
) |
|
0.45 |
|
|
(0.35 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended March 31, 2024 and
2023
|
Net (loss) income (USD '000) |
|
(L) EPS, basic (USD) |
|
Net (loss) income (ZAR '000) |
|
(L)EPS, basic (ZAR) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
GAAP |
(12,405 |
) |
|
(23,165 |
) |
|
(0.20 |
) |
|
(0.37 |
) |
|
(232,869 |
) |
|
(403,156 |
) |
|
(3.61 |
) |
|
(6.32 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
charge |
5,653 |
|
|
5,955 |
|
|
|
|
|
|
106,089 |
|
|
103,639 |
|
|
|
|
|
Intangible asset amortization,
net |
7,873 |
|
|
8,374 |
|
|
|
|
|
|
147,312 |
|
|
147,311 |
|
|
|
|
|
Impairment of equity method
investments |
1,167 |
|
|
1,110 |
|
|
|
|
|
|
22,084 |
|
|
19,318 |
|
|
|
|
|
Change in tax rate |
- |
|
|
(1,299 |
) |
|
|
|
|
|
- |
|
|
(22,607 |
) |
|
|
|
|
Non core international -
unrealized currency (gain) loss |
(952 |
) |
|
395 |
|
|
|
|
|
|
(17,648 |
) |
|
6,874 |
|
|
|
|
|
Allowance for doubtful EMI
loans receivable |
(250 |
) |
|
- |
|
|
|
|
|
|
(4,741 |
) |
|
- |
|
|
|
|
|
Transaction costs |
1,121 |
|
|
696 |
|
|
|
|
|
|
21,139 |
|
|
12,113 |
|
|
|
|
|
Net loss on disposal of
equity-accounted investments |
- |
|
|
193 |
|
|
|
|
|
|
- |
|
|
3,359 |
|
|
|
|
|
Other |
- |
|
|
810 |
|
|
|
|
|
|
- |
|
|
14,097 |
|
|
|
|
|
Fundamental |
2,207 |
|
|
(6,931 |
) |
|
0.03 |
|
|
(0.11 |
) |
|
41,366 |
|
|
(119,052 |
) |
|
0.64 |
|
|
(1.87 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lesaka 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, 2024 and
2023
|
2024 |
|
2023 |
|
|
|
|
Net loss (USD’000) |
(4,047 |
) |
|
(5,820 |
) |
Adjustments: |
|
|
|
Net loss on sale of equity-accounted investments |
- |
|
|
329 |
|
Profit on sale of property, plant and equipment |
(89 |
) |
|
(145 |
) |
Tax effects on above |
24 |
|
|
41 |
|
|
|
|
|
Net loss used to calculate
headline loss (USD’000) |
(4,112 |
) |
|
(5,595 |
) |
Weighted average number of
shares used to calculate net loss per share basic loss and headline
loss per share basic loss (‘000) |
63,805 |
|
|
63,854 |
|
Weighted average number of
shares used to calculate net loss per share diluted loss and
headline loss per share diluted loss (‘000) |
63,805 |
|
|
63,854 |
|
|
|
|
|
Headline loss per share: |
|
|
|
Basic, in USD |
(0.06 |
) |
|
(0.09 |
) |
Diluted, in USD |
(0.06 |
) |
|
(0.09 |
) |
|
|
|
|
|
|
Nine months ended March 31, 2024 and
2023
|
2024 |
|
2023 |
|
|
|
|
Net loss (USD’000) |
(12,405 |
) |
|
(23,165 |
) |
Adjustments: |
|
|
|
Impairment of equity method investments |
1,167 |
|
|
1,110 |
|
Net gain on sale of equity-accounted investment |
- |
|
|
193 |
|
Profit on sale of property, plant and equipment |
(288 |
) |
|
(466 |
) |
Tax effects on above |
78 |
|
|
130 |
|
|
|
|
|
Net loss used to calculate
headline loss (USD’000) |
(11,448 |
) |
|
(22,198 |
) |
Weighted average number of
shares used to calculate net loss per share basic loss and headline
loss per share basic loss (‘000) |
63,134 |
|
|
62,913 |
|
Weighted average number of
shares used to calculate net loss per share diluted loss and
headline loss per share diluted loss (‘000) |
63,134 |
|
|
62,913 |
|
|
|
|
|
Headline loss per share: |
|
|
|
Basic, in USD |
(0.18 |
) |
|
(0.35 |
) |
Diluted, in USD |
(0.18 |
) |
|
(0.35 |
) |
|
|
|
|
|
|
Calculation of the denominator for headline diluted loss
per share
|
Three months ended March 31, |
|
Nine months ended March 31, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
Basic
weighted-average common shares outstanding and unvested restricted
shares expected to vest under GAAP |
63,805 |
|
63,854 |
|
63,134 |
|
62,913 |
Denominator for headline diluted loss per share |
63,805 |
|
63,854 |
|
63,134 |
|
62,913 |
|
|
|
|
|
|
|
|
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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