Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Mar. 31, 2014 | 8-May-14 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'NET 1 UEPS TECHNOLOGIES INC | ' |
Entity Central Index Key | '0001041514 | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 50,183,342 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Jun. 30, 2013 | |
In Thousands, unless otherwise specified | |||
CURRENT ASSETS | ' | ' | |
Cash and cash equivalents | $30,875 | $53,665 | [1] |
Pre-funded social welfare grants receivable (Note 2) | 4,728 | 2,934 | [1] |
Accounts receivable, net of allowances of - March: $1,592; June: $4,701 | 132,356 | 102,614 | [1] |
Finance loans receivable, net of allowances of - March $1,815; June: $ - | 42,379 | 8,350 | [1] |
Inventory (Note 3) | 10,491 | 12,222 | [1] |
Deferred income taxes | 5,350 | 4,938 | [1] |
Total current assets before settlement assets | 226,179 | 184,723 | [1] |
Settlement assets (Note 4) | 744,782 | 752,476 | [1] |
Total current assets | 970,961 | 937,199 | [1] |
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of - March: $92,314; June: $84,808 | 46,150 | 48,301 | [1] |
EQUITY-ACCOUNTED INVESTMENTS | 1,347 | 1,183 | [1] |
GOODWILL (Note 6) | 179,832 | 175,806 | [1] |
INTANGIBLE ASSETS, net (Note 6) | 69,265 | 77,257 | [1] |
OTHER LONG-TERM ASSETS, including reinsurance assets (Note 7) | 34,338 | 36,576 | [1] |
TOTAL ASSETS | 1,301,893 | 1,276,322 | [1] |
CURRENT LIABILITIES | ' | ' | |
Bank overdraft (Note 8) | ' | ' | [1] |
Accounts payable | 14,592 | 26,567 | [1] |
Other payables | 35,682 | 33,808 | [1] |
Current portion of long-term borrowings (Note 9) | 14,005 | 14,209 | [1] |
Income taxes payable | 11,749 | 2,275 | [1] |
Total current liabilities before settlement obligations | 76,028 | 76,859 | [1] |
Settlement obligations (Note 4) | 744,782 | 752,476 | [1] |
Total current liabilities | 820,810 | 829,335 | [1] |
DEFERRED INCOME TAXES | 17,343 | 18,727 | [1] |
LONG-TERM BORROWINGS (Note 9) | 58,061 | 66,632 | [1] |
OTHER LONG-TERM LIABILITIES, including insurance policy liabilities (Note 7) | 20,117 | 21,659 | [1] |
TOTAL LIABILITIES | 916,331 | 936,353 | [1] |
COMMITMENTS AND CONTINGENCIES (Note 17) | ' | ' | [1] |
EQUITY | ' | ' | |
COMMON STOCK (Note 10) Authorized: 200,000,000 with $0.001 par value; Issued and outstanding shares, net of treasury - March: 45,783,342; June: 45,592,550 | 59 | 59 | [1] |
PREFERRED STOCK Authorized shares: 50,000,000 with $0.001 par value; Issued and outstanding shares, net of treasury: March: -; June: - | ' | ' | [1] |
ADDITIONAL PAID-IN-CAPITAL | 165,076 | 160,670 | [1] |
TREASURY SHARES, AT COST: March:13,455,090; June: 13,455,090 | -175,823 | -175,823 | [1] |
ACCUMULATED OTHER COMPREHENSIVE LOSS | -97,910 | -100,858 | [1] |
RETAINED EARNINGS | 494,145 | 452,618 | [1] |
TOTAL NET1 EQUITY | 385,547 | 336,666 | [1] |
NON-CONTROLLING INTEREST | 15 | 3,303 | [1] |
TOTAL EQUITY | 385,562 | 339,969 | [1] |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $1,301,893 | $1,276,322 | [1] |
[1] | Derived from audited financial statements |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets [Abstract] | ' | ' |
Accounts receivable, allowances for doubtful accounts | $1,592 | $4,701 |
Finance loans receivable, allowance | 1,815 | ' |
Property, plant and equipment, accumulated depreciation | $92,314 | $84,808 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares issued | 45,783,342 | 45,592,550 |
Common stock, shares outstanding | 45,783,342 | 45,592,550 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Treasury shares, shares outstanding | 13,455,090 | 13,455,090 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Consolidated Statements Of Operations [Abstract] | ' | ' | ' | ' |
REVENUE | $138,126 | $111,141 | $398,903 | $334,265 |
EXPENSE | ' | ' | ' | ' |
Cost of goods sold, IT processing, servicing and support | 63,149 | 51,461 | 187,591 | 143,789 |
Selling, general and administration | 40,586 | 53,846 | 121,916 | 149,854 |
Depreciation and amortization | 10,442 | 10,560 | 30,245 | 31,051 |
OPERATING INCOME (LOSS) | 23,949 | -4,726 | 59,151 | 9,571 |
INTEREST INCOME | 3,438 | 2,515 | 9,993 | 8,195 |
INTEREST EXPENSE | 1,734 | 2,023 | 5,712 | 6,117 |
INCOME (LOSS) BEFORE INCOME TAX EXPENSE | 25,653 | -4,234 | 63,432 | 11,649 |
INCOME TAX EXPENSE (note 16) | 8,535 | 472 | 22,119 | 7,172 |
NET INCOME (LOSS) BEFORE EARNINGS FROM EQUITY-ACCOUNTED INVESTMENTS | 17,118 | -4,706 | 41,313 | 4,477 |
EARNINGS FROM EQUITY-ACCOUNTED INVESTMENTS | 52 | 22 | 202 | 204 |
NET INCOME (LOSS) | 17,170 | -4,684 | 41,515 | 4,681 |
ADD NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | -12 | -3 | -12 | -11 |
NET INCOME (LOSS) ATTRIBUTABLE TO NET1 | $17,182 | ($4,681) | $41,527 | $4,692 |
Net income (loss) per share, in United States dollars (note 13) | ' | ' | ' | ' |
Basic earnings (loss) attributable to Net1 shareholders | $0.38 | ($0.10) | $0.91 | $0.10 |
Diluted earnings (loss) attributable to Net1 shareholders | $0.37 | ($0.10) | $0.90 | $0.10 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | $17,170 | ($4,684) | $41,515 | $4,681 |
Other comprehensive (loss) income | ' | ' | ' | ' |
Net unrealized income on asset available for sale, net of tax | 327 | ' | 288 | 258 |
Movement in foreign currency translation reserve | -2,134 | -22,993 | 2,838 | -12,811 |
Total other comprehensive (loss) income, net of taxes | -1,807 | -22,993 | 3,126 | -12,553 |
Comprehensive income (loss) | 15,363 | -27,677 | 44,641 | -7,872 |
Add comprehensive loss attributable to non-controlling interest | 12 | 3 | 12 | 11 |
Comprehensive income (loss) attributable to Net1 | $15,375 | ($27,674) | $44,653 | ($7,861) |
Consolidated_Statement_Of_Chan
Consolidated Statement Of Changes In Equity (USD $) | Common Stock [Member] | Treasury Stock [Member] | Number Of Shares, Net Of Treasury [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Total Net1 Equity [Member] | Non-Controlling Interest [Member] | Total | |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||
Balance at Jun. 30, 2013 | $59 | ($175,823) | ' | $160,670 | $452,618 | ($100,858) | $336,666 | $3,303 | $339,969 | [1] |
Treasury Stock, Shares, Beginning Balance at Jun. 30, 2013 | ' | -13,455,090 | ' | ' | ' | ' | ' | ' | -13,455,090 | |
Balance, shares at Jun. 30, 2013 | 59,047,640 | ' | 45,592,550 | ' | ' | ' | ' | ' | ' | |
Restricted stock granted, shares | 187,963 | ' | 187,963 | ' | ' | ' | ' | ' | ' | |
Exercise of stock option | ' | ' | ' | 88 | ' | ' | 88 | ' | 88 | |
Exercise of stock option, shares | 10,000 | ' | 10,000 | ' | ' | ' | ' | ' | 10,000 | |
Stock-based compensation charge | ' | ' | ' | 2,826 | ' | ' | 2,826 | ' | 2,826 | |
Reversal of stock based compensation charge | ' | ' | ' | -6 | ' | ' | -6 | ' | -6 | |
Reversal of stock based compensation charge, Shares | -7,171 | ' | -7,171 | ' | ' | ' | ' | ' | ' | |
Income tax benefit from vested stock awards | ' | ' | ' | 6 | ' | ' | 6 | ' | 6 | |
Acquisition of KSNET non-controlling interest (Note 10) | ' | ' | ' | 1,492 | ' | -178 | 1,314 | -3,276 | -1,962 | |
Net income | ' | ' | ' | ' | 41,527 | ' | 41,527 | -12 | 41,515 | |
Other comprehensive income | ' | ' | ' | ' | ' | 3,126 | 3,126 | ' | 3,126 | |
Balance at Mar. 31, 2014 | $59 | ($175,823) | ' | $165,076 | $494,145 | ($97,910) | $385,547 | $15 | $385,562 | |
Treasury Stock, Shares, Ending Balance at Mar. 31, 2014 | ' | -13,455,090 | ' | ' | ' | ' | ' | ' | -13,455,090 | |
Balance, shares at Mar. 31, 2014 | 59,238,432 | ' | 45,783,342 | ' | ' | ' | ' | ' | 45,783,342 | |
[1] | Derived from audited financial statements |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities | ' | ' | ' | ' |
Net income (loss) | $17,170 | ($4,684) | $41,515 | $4,681 |
Depreciation and amortization | 10,442 | 10,560 | 30,245 | 31,051 |
Earnings from equity-accounted investments | -52 | -22 | -202 | -204 |
Fair value adjustments | 110 | -299 | 49 | 408 |
Interest payable | 30 | 1,054 | 1,696 | 3,363 |
(Profit) loss on disposal of property, plant and equipment | -26 | 3 | -42 | -83 |
Stock-based compensation charge | 922 | 1,092 | 2,820 | 3,325 |
Facility fee amortized | 79 | 71 | 657 | 235 |
Increase in accounts receivable, pre-funded social welfare grants receivable and finance loans receivable | -6,443 | -4,818 | -67,521 | -3,987 |
Decrease (Increase) in inventory | 2,821 | 4,949 | 979 | -2,260 |
Increase (Decrease) in accounts payables and other payables | 2,656 | 4,533 | -10,895 | -1,755 |
Increase in taxes payable | 8,069 | 948 | 9,431 | 354 |
Decrease in deferred taxes | -1,141 | -1,201 | -3,019 | -4,133 |
Net cash provided by operating activities | 34,637 | 12,186 | 5,713 | 30,995 |
Cash flows from investing activities | ' | ' | ' | ' |
Capital expenditures | -4,848 | -5,053 | -17,309 | -17,103 |
Proceeds from disposal of property, plant and equipment | 123 | 31 | 2,124 | 387 |
Acquisitions, net of cash acquired | ' | ' | ' | -2,143 |
(Investment in equity in) Repayment of loan by equity-accounted investment | -25 | ' | -25 | 3 |
Proceeds from maturity of investments related to insurance business | ' | ' | ' | 545 |
Other investing activities, net | 571 | ' | 570 | ' |
Net change in settlement assets | -277,912 | -156,363 | -21,409 | -168,419 |
Net cash used in investing activities | -282,091 | -161,385 | -36,049 | -186,730 |
Cash flows from financing activities | ' | ' | ' | ' |
Long-term borrowing obtained (Note 9) | 1,028 | ' | 72,633 | ' |
Repayment of long-term borrowings (Note 9) | ' | ' | -87,008 | -7,307 |
Payment of facility fee (Note 9) | ' | ' | -872 | ' |
Proceeds from bank overdraft | ' | ' | 24,580 | ' |
Repayments of bank overdrafts | -23,335 | ' | -23,335 | ' |
Acquisition of interest in KSNET (Note 10) | ' | ' | -1,968 | ' |
Proceeds from issue of common stock | 88 | ' | 88 | 240 |
Net change in settlement obligations | 277,912 | 156,363 | 21,409 | 168,419 |
Net cash provided by financing activities | 255,693 | 156,363 | 5,527 | 161,352 |
Effect of exchange rate changes on cash | 274 | -2,664 | 2,019 | -2,124 |
Net increase (decrease) in cash and cash equivalents | 8,513 | 4,500 | -22,790 | 3,493 |
Cash and cash equivalents - beginning of period | 22,362 | 38,116 | 53,665 | 39,123 |
Cash and cash equivalents - end of period | $30,875 | $42,616 | $30,875 | $42,616 |
Basis_Of_Presentation_And_Summ
Basis Of Presentation And Summary Of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2014 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Abstract] | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies | ' |
1. Basis of Presentation and Summary of Significant Accounting Policies | |
Unaudited Interim Financial Information | |
The accompanying unaudited condensed consolidated financial statements include all majority-owned subsidiaries over which the Company exercises control and have been prepared in accordance with US generally accepted accounting principles ("GAAP") and the rules and regulations of the Securities and Exchange Commission for quarterly reports on Form 10-Q and include all of the information and disclosures required for interim financial reporting. The results of operations for the three and nine months ended March 31, 2014 and 2013, are not necessarily indicative of the results for the full year. The Company believes that the disclosures are adequate to make the information presented not misleading. | |
These financial statements should be read in conjunction with the financial statements, accounting policies and financial notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2013. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments), which are necessary for a fair representation of financial results for the interim periods presented. | |
References to the "Company" refer to Net1 and its consolidated subsidiaries, unless the context otherwise requires. References to Net1 are references solely to Net 1 UEPS Technologies, Inc. | |
The Company has updated its accounting policy for the allowance for doubtful finance loans receivable as a result of the increase in its UEPS-based lending book which is included in finance loans receivable in its unaudited condensed consolidated balance sheet. The Company does not believe that an allowance for doubtful finance loans receivable is required for finance loans receivable as of June 30, 2013, because this was an established book and has been recovered. However, the profile of the loan book has changed due to the expansion of the UEPS-based lending book during the nine months ended March 31, 2014, and accordingly an allowance for doubtful finance loans receivable is deemed required by the Company. | |
Loan provisions and allowance for doubtful accounts receivable | |
UEPS-based lending | |
The Company's policy is to regularly review the ageing of outstanding amounts due from borrowers and adjust the provision based on management's estimate of the recoverability of finance loans receivable. The Company writes off UEPS-based loans and related service fees if a borrower is in arrears with repayments for more than three months or dies. | |
Recent accounting pronouncements adopted | |
In February 2013, the FASB issued guidance regarding Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This guidance requires entities to present (either on the face of the statement of operations or in the notes) the effects on the line items of the statement of operations for amounts reclassified out of accumulated other comprehensive income. The guidance is effective for the Company beginning July 1, 2013 and is applied prospectively. The adoption of this guidance did not have a material impact on the Company's financial statements. | |
Recent accounting pronouncements not yet adopted as of March 31, 2014 | |
In March 2013, the FASB issued guidance regarding Parent's Accounting for the Cumulative Translation Adjustment Upon Derecognition of Certain Subsidiaries or Groups of Assets Within a Foreign Entity or of an Investment in a Foreign Entity. This guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The guidance is effective for the Company beginning July 1, 2014. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its financial statements on adoption. | |
PreFunded_Social_Welfare_Grant
Pre-Funded Social Welfare Grants Receivable | 9 Months Ended |
Mar. 31, 2014 | |
Pre-Funded Social Welfare Grants Receivable [Abstract] | ' |
Pre-Funded Social Welfare Grants Receivable | ' |
2. Pre-funded social welfare grants receivable | |
Pre-funded social welfare grants receivable represents amounts pre-funded by the Company to certain merchants participating in the merchant acquiring system. The April 2014 payment service commenced on April 1, 2014, but the Company pre-funded certain merchants participating in the merchant acquiring system on the last day of March 2014. | |
Inventory
Inventory | 9 Months Ended | ||||
Mar. 31, 2014 | |||||
Inventory [Abstract] | ' | ||||
Inventory | ' | ||||
3. Inventory | |||||
The Company's inventory comprised the following categories as of March 31, 2014 and June 30, 2013. | |||||
March 31, | June 30, | ||||
2014 | 2013 | ||||
Finished goods | $ | 10,491 | $ | 12,222 | |
$ | 10,491 | $ | 12,222 | ||
Settlement_Assets_And_Settleme
Settlement Assets And Settlement Obligations | 9 Months Ended |
Mar. 31, 2014 | |
Settlement Assets And Settlement Obligations [Abstract] | ' |
Settlement Assets And Settlement Obligations | ' |
4. Settlement assets and settlement obligations | |
Settlement assets comprise (1) cash received from the South African government that the Company holds pending disbursement to beneficiaries of social welfare grants, (2) cash received from health care plans which the Company disburses to health care service providers once it adjudicates claims and (3) cash received from customers on whose behalf the Company processes payroll payments that the Company will disburse to customer employees, payroll-related payees and other payees designated by the customer. | |
Settlement obligations comprise (1) amounts that the Company is obligated to disburse to beneficiaries of social welfare grants, (2) amounts which are due to health care service providers after claims have been adjudicated and reconciled, provided that the Company shall have previously received such funds from health care plan customers and (3) amounts that the Company is obligated to pay to customer employees, payroll-related payees and other payees designated by the customer. | |
The balances at each reporting date may vary widely depending on the timing of the receipts and payments of these assets and obligations | |
Fair_Value_Of_Financial_Instru
Fair Value Of Financial Instruments And Equity-Accounted Investments | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Fair Value Of Financial Instruments And Equity-Accounted Investments [Abstract] | ' | ||||||||
Fair Value Of Financial Instruments And Equity-Accounted Investments | ' | ||||||||
5. Fair value of financial instruments and equity-accounted investments Fair value of financial instruments | |||||||||
Risk management | |||||||||
The Company seeks to reduce its exposure to currencies other than the South African rand through a policy of matching, to the extent possible, assets and liabilities denominated in those currencies. In addition, the Company uses financial instruments in order to economically hedge its exposure to exchange rate and interest rate fluctuations arising from its operations. The Company is also exposed to equity price and liquidity risks as well as credit risks. | |||||||||
Currency exchange risk | |||||||||
The Company is subject to currency exchange risk because it purchases inventories that it is required to settle in other currencies, primarily the euro and US dollar. The Company uses forward contracts in order to limit its exposure in these transactions to fluctuations in exchange rates between the ZAR, on the one hand, and the US dollar and the euro, on the other hand. | |||||||||
The Company's outstanding foreign exchange contracts are as follows: | |||||||||
As of March 31, 2014 | |||||||||
Fair market | |||||||||
Notional amount | Strike price | value price | Maturity | ||||||
EUR | 192,375 | ZAR | 14.9984 | ZAR | 14.5664 | 22-Apr-14 | |||
EUR | 192,375 | ZAR | 15.1351 | ZAR | 14.5664 | 22-Apr-14 | |||
EUR | 192,195 | ZAR | 15.2014 | ZAR | 14.629 | 20-May-14 | |||
EUR | 192,195 | ZAR | 15.0637 | ZAR | 14.629 | 20-May-14 | |||
EUR | 180,023 | ZAR | 15.275 | ZAR | 14.7011 | 20-Jun-14 | |||
EUR | 180,023 | ZAR | 15.1349 | ZAR | 14.7011 | 20-Jun-14 | |||
EUR | 182,273 | ZAR | 15.2077 | ZAR | 14.7778 | 21-Jul-14 | |||
EUR | 182,273 | ZAR | 15.3488 | ZAR | 14.7778 | 21-Jul-14 | |||
EUR | 180,023 | ZAR | 15.4228 | ZAR | 14.8537 | 20-Aug-14 | |||
EUR | 180,023 | ZAR | 15.2819 | ZAR | 14.8537 | 20-Aug-14 | |||
EUR | 180,023 | ZAR | 15.3623 | ZAR | 14.9372 | 22-Sep-14 | |||
EUR | 180,023 | ZAR | 15.5041 | ZAR | 14.9372 | 22-Sep-14 | |||
Fair market | |||||||||
Notional amount | Strike price | value price | Maturity | ||||||
EUR | 181,571 | ZAR | 15.5739 | ZAR | 15.0122 | 20-Oct-14 | |||
EUR | 181,571 | ZAR | 15.4316 | ZAR | 15.0122 | 20-Oct-14 | |||
EUR | 180,023 | ZAR | 15.6552 | ZAR | 15.0976 | 20-Nov-14 | |||
EUR | 180,023 | ZAR | 15.5136 | ZAR | 15.0976 | 20-Nov-14 | |||
EUR | 180,023 | ZAR | 15.597 | ZAR | 15.1859 | 22-Dec-14 | |||
EUR | 180,023 | ZAR | 15.7391 | ZAR | 15.1859 | 22-Dec-14 | |||
EUR | 174,425 | ZAR | 15.8119 | ZAR | 15.2688 | 20-Jan-15 | |||
EUR | 174,425 | ZAR | 15.6729 | ZAR | 15.2688 | 20-Jan-15 | |||
As of June 30, 2013 | |||||||||
Fair market | |||||||||
Notional amount | Strike price | value price | Maturity | ||||||
USD | 4,000,000 | ZAR | 9.06 | ZAR | 10.1397 | 30-Sep-13 | |||
Translation risk | |||||||||
Translation risk relates to the risk that the Company's results of operations will vary significantly as the US dollar is its reporting currency, but it earns most of its revenues and incurs most of its expenses in ZAR. The US dollar to ZAR exchange rate has fluctuated significantly over the past two years. As exchange rates are outside the Company's control, there can be no assurance that future fluctuations will not adversely affect the Company's results of operations and financial condition. | |||||||||
Interest rate risk | |||||||||
As a result of its normal borrowing and leasing activities, the Company's operating results are exposed to fluctuations in interest rates, which it manages primarily through regular financing activities. The Company generally maintains limited investment in cash equivalents and has occasionally invested in marketable securities. | |||||||||
Credit risk | |||||||||
Credit risk relates to the risk of loss that the Company would incur as a result of non-performance by counterparties. The Company maintains credit risk policies with regard to its counterparties to minimize overall credit risk. These policies include an evaluation of a potential counterparty's financial condition, credit rating, and other credit criteria and risk mitigation tools as the Company's management deems appropriate. | |||||||||
With respect to credit risk on financial instruments, the Company maintains a policy of entering into such transactions only with South African and European financial institutions that have a credit rating of BBB or better, as determined by credit rating agencies such as Standard & Poor's, Moody's and Fitch Ratings. | |||||||||
UEPS-based microlending credit risk | |||||||||
The Company is exposed to credit risk in its UEPS-based microlending activities, which provides unsecured short-term loans to qualifying customers. The Company manages this risk by performing an affordability test for each prospective customer and assigns a "creditworthiness score", which takes into account a variety of factors such as other debts and total expenditures on normal household and lifestyle expenses. | |||||||||
Equity price and liquidity risk | |||||||||
Equity price risk relates to the risk of loss that the Company would incur as a result of the volatility in the exchange-traded price of equity securities that it holds and the risk that it may not be able to liquidate these securities. The market price of these securities may fluctuate for a variety of reasons, consequently, the amount the Company may obtain in a subsequent sale of these securities may significantly differ from the reported market value. | |||||||||
Liquidity risk relates to the risk of loss that the Company would incur as a result of the lack of liquidity on the exchange on which these securities are listed. The Company may not be able to sell some or all of these securities at one time, or over an extended period of time without influencing the exchange traded price, or at all. | |||||||||
The following section describes the valuation methodologies the Company uses to measure its significant financial assets and liabilities at fair value. | |||||||||
In general, and where applicable, the Company uses quoted prices in active markets for identical assets or liabilities to determine fair value. This pricing methodology applies to Level 1 investments. If quoted prices in active markets for identical assets or liabilities are not available to determine fair value, then the Company uses quoted prices for similar assets and liabilities or inputs other than the quoted prices that are observable either directly or indirectly. These investments are included in Level 2 investments. In circumstances in which inputs are generally unobservable, values typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. Investments valued using such techniques are included in Level 3 investments. | |||||||||
Asset measured at fair value using significant unobservable inputs – investment in Finbond Group Limited ("Finbond") | |||||||||
The Company's Level 3 asset represents an investment of 156,788,712 shares of common stock of Finbond, which are exchange-traded equity securities. Finbond's shares are traded on the JSE Limited ("JSE") and the Company has designated such shares as available for sale investments. The Company has concluded that the market for Finbond shares is not active and consequently has employed alternative valuation techniques in order to determine the fair value of such stock. Currently, the operations of Finbond relate primarily to the provision of microlending products. In addition, it has a mutual banking licence and issues financial products under this licence. In determining the fair value of Finbond, the Company has considered amongst other things Finbond's historical financial information (including its most recent public accounts), press releases issued by Finbond and its published net asset value. The Company believes that the best indicator of fair value of Finbond is its published net asset value and has used this value to determine the fair value. | |||||||||
The fair value of these securities as of March 31, 2014, represented approximately 1% of the Company's total assets, including these securities. | |||||||||
The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of March 31, 2014, according to the fair value hierarchy: | |||||||||
Quoted | |||||||||
Price in | |||||||||
Active | Significant | ||||||||
Markets for | Other | Significant | |||||||
Identical | Observable | Unobservable | |||||||
Assets | Inputs | Inputs | |||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||
Assets | |||||||||
Related to insurance business (included in | |||||||||
other long-term assets): | |||||||||
Cash and cash equivalents | $ | 1,778 | $ | - | $ | - | $ | 1,778 | |
Investment in Finbond (available for sale | |||||||||
assets included in other long-term assets) | - | - | 7,662 | 7,662 | |||||
Other | - | 138 | - | 138 | |||||
Total assets at fair value | $ | 1,778 | $ | 138 | $ | 7,662 | $ | 9,578 | |
Quoted | |||||||||
Price in | |||||||||
Active | Significant | ||||||||
Markets for | Other | Significant | |||||||
Identical | Observable | Unobservable | |||||||
Assets | Inputs | Inputs | |||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||
Liabilities | |||||||||
Foreign exchange contracts | $ | - | $ | 170 | $ | - | $ | 170 | |
Total liabilities at fair value | $ | - | $ | 170 | $ | - | $ | 170 | |
The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of June 30, 2013, according to the fair value hierarchy: | |||||||||
Quoted | |||||||||
Price in | |||||||||
Active | Significant | ||||||||
Markets for | Other | Significant | |||||||
Identical | Observable | Unobservable | |||||||
Assets | Inputs | Inputs | |||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||
Assets | |||||||||
Related to insurance business (included in | |||||||||
other long-term assets): | |||||||||
Cash and cash equivalents | $ | 1,833 | $ | - | $ | - | $ | 1,833 | |
Investment in Finbond (available for sale | |||||||||
assets included in other long-term assets) | - | - | 8,303 | 8,303 | |||||
Other | - | 147 | - | 147 | |||||
Total assets at fair value | $ | 1,833 | $ | 147 | $ | 8,303 | $ | 10,283 | |
Liabilities | |||||||||
Foreign exchange contracts | $ | - | $ | 436 | $ | - | $ | 436 | |
Total liabilities at fair value | $ | - | $ | 436 | $ | - | $ | 436 | |
Changes in the Company's investment in Finbond (Level 3 that are measured at fair value on a recurring basis) were insignificant during the three and nine months ended March 31, 2014 and 2013, respectively. There have been no transfers in or out of Level 3 during the three and six months ended March 31, 2014 and 2013, respectively. | |||||||||
Assets and liabilities measured at fair value on a nonrecurring basis | |||||||||
The Company measures its assets at fair value on a nonrecurring basis when they are deemed to be other-than-temporarily impaired. The Company has no liabilities that are measured at fair value on a nonrecurring basis. The Company reviews the carrying values of its assets when events and circumstances warrant and considers all available evidence in evaluating when declines in fair value are other-than-temporary. | |||||||||
The fair values of the Company's assets are determined using the best information available, and may include quoted market prices, market comparables, and discounted cash flow projections. An impairment charge is recorded when the cost of the assets exceeds its fair value and the excess is determined to be other-than-temporary. The Company has not recorded any impairment charges during the reporting periods presented herein. | |||||||||
Goodwill_And_Intangible_Assets
Goodwill And Intangible Assets | 9 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
Goodwill And Intangible Assets [Abstract] | ' | ||||||||||||||
Goodwill And Intangible Assets | ' | ||||||||||||||
6. Goodwill and intangible assets | |||||||||||||||
Goodwill | |||||||||||||||
Summarized below is the movement in the carrying value of goodwill for the nine months ended March 31, 2014: | |||||||||||||||
Accumulated | Carrying | ||||||||||||||
Gross value | impairment | value | |||||||||||||
Balance as of June 30, 2013 | $ | 218,558 | $ | (42,752 | ) | $ | 175,806 | ||||||||
Foreign currency adjustment (1) | 6,032 | (2,006 | ) | 4,026 | |||||||||||
Balance as of March 31, 2014 | $ | 224,590 | ($ | 44,758 | ) | $ | 179,832 | ||||||||
(1) – the foreign currency adjustment represents the effects of the fluctuations between the South African rand and the Korean won, and the US dollar on the carrying value. | |||||||||||||||
As of | As of | ||||||||||||||
March 31, | June 30, | ||||||||||||||
2014 | 2013 | ||||||||||||||
SA transaction-based activities | $ | 28,532 | $ | 30,525 | |||||||||||
International transaction-based activities | 121,656 | 113,972 | |||||||||||||
Smart card accounts | - | - | |||||||||||||
Financial services | - | - | |||||||||||||
Hardware, software and related technology sales | 29,644 | 31,309 | |||||||||||||
Total | $ | 179,832 | $ | 175,806 | |||||||||||
Intangible assets | |||||||||||||||
Carrying value and amortization of intangible assets | |||||||||||||||
Summarized below is the carrying value and accumulated amortization of the intangible assets as of March 31, 2014 and June 30, 2013: | |||||||||||||||
As of March 31, 2014 | As of June 30, 2013 | ||||||||||||||
Gross | Net | Gross | Net | ||||||||||||
carrying | Accumulated carrying | carrying | Accumulated | carrying | |||||||||||
value | amortization | value | value | amortization | value | ||||||||||
Finite-lived intangible assets: | |||||||||||||||
Customer relationships | $ | 94,309 | $ | (37,373 | ) | $ | 56,936 | $ | 90,469 | $ | (29,818 | ) | $ | 60,651 | |
Software and unpatented | |||||||||||||||
technology | 35,851 | (27,512 | ) | 8,339 | 34,951 | (22,151 | ) | 12,800 | |||||||
FTS patent | 3,620 | (3,620 | ) | - | 3,873 | (3,873 | ) | - | |||||||
Exclusive licenses | 4,506 | (4,506 | ) | - | 4,506 | (4,506 | ) | - | |||||||
Trademarks | 6,671 | (2,681 | ) | 3,990 | 6,611 | (2,805 | ) | 3,806 | |||||||
Customer database | 574 | (574 | ) | - | 614 | (614 | ) | - | |||||||
Total finite-lived intangible | |||||||||||||||
assets | $ | 145,531 | $ | (76,266 | ) | $ | 69,265 | $ | 141,024 | $ | (63,767 | ) | $ | 77,257 | |
Aggregate amortization expense on the finite-lived intangible assets for the three and nine months ended March 31, 2014, was approximately $4.6 million and $12.5 million, respectively (three and nine months ended March 31, 2013, was approximately $4.4 million and $14.0 million, respectively). | |||||||||||||||
Future estimated annual amortization expense for the next five fiscal years and thereafter, assuming exchange rates prevailing on March 31, 2014, is presented in the table below. Actual amortization expense in future periods could differ from this estimate as a result of acquisitions, changes in useful lives, exchange rate fluctuations and other relevant factors. | |||||||||||||||
2014 | $ | 16,229 | |||||||||||||
2015 | 15,080 | ||||||||||||||
2016 | 11,280 | ||||||||||||||
2017 | 8,958 | ||||||||||||||
2018 | 8,958 | ||||||||||||||
Thereafter | $ | 20,671 | |||||||||||||
Reinsurance_Assets_And_Policy_
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts | 9 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts [Abstract] | ' | ||||||
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts | ' | ||||||
7. Reinsurance assets and policy holder liabilities under insurance and investment contracts | |||||||
Reinsurance assets and policy holder liabilities under insurance contracts | |||||||
Summarized below is the movement in reinsurance assets and policy holder liabilities under insurance contracts during the nine months ended March 31, 2014: | |||||||
Reinsurance | Insurance | ||||||
assets (1) | contracts (2) | ||||||
Balance as of June 30, 2013 | $ | 19,557 | $ | (19,711 | ) | ||
Foreign currency adjustment (3) | (1,276 | ) | 1,287 | ||||
Balance as of March 31, 2014 | $ | 18,281 | $ | (18,424 | ) | ||
(1) Included in other long-term assets. | |||||||
(2) Included in other long-term liabilities. | |||||||
(3) The foreign currency adjustment represents the effects of the fluctuations between the ZAR against the US dollar. | |||||||
The Company has agreements with reinsurance companies in order to limit its losses from large insurance contracts, however, if the reinsurer is unable to meet its obligations, the Company retains the liability. | |||||||
The value of insurance contract liabilities is based on best estimates assumptions of future experience plus prescribed margins, as required in the markets in which these products are offered, namely South Africa. The process of deriving the best estimates assumptions plus prescribed margins includes assumptions related to future mortality and morbidity (an appropriate base table of standard mortality is chosen depending on the type of contract and class of business), withdrawals (based on recent withdrawal investigations and expected future trends), investment returns (based on government treasury rates adjusted by an applicable margin), expense inflation (based on a 10 year real return on CPI-linked government bonds from the risk-free rate and adding an allowance for salary inflation and book shrinkage of 1% per annum) and claim reporting delays (based on average industry experience). | |||||||
Assets and policy holder liabilities under investment contracts | |||||||
Summarized below is the movement in assets and policy holder liabilities under investment contracts during the nine months ended March 31, 2014: | |||||||
Investment | |||||||
Assets (1) | contracts (2) | ||||||
Balance as of June 30, 2013 | $ | 953 | $ | (953 | ) | ||
Foreign currency adjustment (3) | (62 | ) | 62 | ||||
Balance as of March 31, 2014 | $ | 891 | $ | (891 | ) | ||
(1) Included in other long-term assets. | |||||||
(2) Included in other long-term liabilities. | |||||||
(3) The foreign currency adjustment represents the effects of the fluctuations between the ZAR against the US dollar. | |||||||
The Company does not offer any investment products with guarantees related to capital or returns. | |||||||
ShortTerm_Credit_Facility
Short-Term Credit Facility | 9 Months Ended |
Mar. 31, 2014 | |
Short-Term Credit Facility [Abstract] | ' |
Short-Term Credit Facility | ' |
8. Short-term credit facility | |
South Africa | |
The Company's short-term South African credit facility with Nedbank Limited comprises an overdraft facility of up to ZAR 250 million and indirect and derivative facilities of up to ZAR 150 million, which include letters of guarantee, letters of credit and forward exchange contracts. The Company temporarily increased its overdraft facility to ZAR 500 million for the four months to March 31, 2014, after which it reverted back to ZAR 250 million. As of March 31, 2014, the interest rate on the overdraft facility was 7.85%. The Company has ceded its investment in Cash Paymaster Services Proprietary Limited ("CPS"), a wholly owned South African subsidiary, as security for its repayment obligations under the facility. A commitment fee of 0.35% per annum is payable on the monthly unutilized amount of the overdraft portion of the short-term facility. The Company is required to comply with customary non-financial covenants, including, without limitation, covenants that restrict the Company's ability to dispose of or encumber its assets, incur additional indebtedness or engage in certain business combinations. As of March 31, 2014, the Company had not utilized any of its ZAR 250.0 million ($23.6 million, translated at exchange rates applicable as of March 31, 2014) overdraft facility. The Company had utilized approximately ZAR 143.1 million ($13.5 million, translated at exchange rates applicable as of March 31, 2014) of its facility to enable the bank to issue guarantees, including stand-by letters of credit, in order for the Company to honor its obligations to third parties requiring such guarantees (Refer to Note 17). As of June 30, 2013, the Company had utilized none of this facility. | |
Korea | |
The Company obtained a KRW 10 billion short-term overdraft facility from Hana Bank, a Korean bank, in January 2014. As of March 31, 2014, the interest rate on the overdraft facility was 4.98%. The Company has ceded the warehouse it owns in Korea as security for its repayment obligations under the facility. As of March 31, 2014, the Company had not utilized any of its KRW 10.0 billion ($9.3 million, translated at exchange rates applicable as of March 31, 2014) overdraft facility. The facility expires in January 2015. | |
LongTerm_Borrowings
Long-Term Borrowings | 9 Months Ended |
Mar. 31, 2014 | |
Long-Term Borrowings [Abstract] | ' |
Long-Term Borrowings | ' |
9. Long-term borrowings | |
In October 2013, the Company refinanced its existing long-term Korean credit facility and signed a new five-year senior secured facilities agreement (the "Facilities Agreement") with a consortium of Korean banks. The Facilities Agreement provides for three separate facilities to the Company's wholly owned subsidiary, Net1 Applied Technologies Korea ("Net1 Korea"): a Facility A loan of up to KRW 60.0 billion ($56.0 million), a Facility B loan of up to KRW 15 billion ($14.0 million) and a Facility C revolving credit facility of up to KRW 10.0 billion ($9.3 million) (all facilities denominated in KRW and translated at exchange rates applicable as of March 31, 2014). | |
The Facility A and B loans were fully drawn on October 29, 2013, and used to repay KRW 75.0 billion ($70.6 million) of the KRW 92.4 billion ($87.0 million) loan outstanding under the existing facility. The remaining outstanding KRW 17.4 billion ($16.4 million) balance of that facility was paid from cash on hand on October 29, 2013. In addition, the Company drew KRW 1.1 billion ($1.0 million) of the revolving credit facility on October 29, 2013, to pay fees and expenses related to the Facilities Agreement and drew a further KRW 1.1 billion ($1.0 million) in January 2014 to pay interest due under the Facilities Agreement. | |
Interest on the loans and revolving credit facility is payable quarterly and is based on the Korean CD rate in effect from time to time plus a margin of 3.10% for the Facility A loan and Facility C revolving credit facility; and a margin of 2.90% for the Facility B loan. The CD rate was 2.65% on March 31, 2014 and therefore the interest rate in effect as of March 31, 2014, for the Facility A loan and Facility C revolving credit facility was 5.75% and for the Facility B loan was 5.55%, respectively. The Company paid facilities fees of approximately KRW 0.9 billion on October 29, 2013 and amortized approximately $0.1 million and $0.6 million, respectively, during the three and nine months ended March 31, 2014. A commitment fee of 0.3% is payable on any un-drawn and un-cancelled amount of the revolving credit facility. Total interest expense related to the new and refinanced facilities during the three and nine months ended March 31, 2014 and 2013, was $1.1 million and $3.7 million; and $1.7 million and $5.3 million, respectively. | |
The Facility A loan is repayable in three scheduled annual installments of KRW 10 billion each beginning 30 months after initial drawdown and one final installment of KRW 30 billion on the maturity date, namely October 29, 2018. The Facility B loan is repayable in full on October 29, 2014. The Facility C revolving credit facility is repayable in full on the maturity date. Prepayment of the revolving credit facility may be withdrawn at any time up to three months before the maturity date. | |
The loans under the Facilities Agreement are secured by a pledge by Net1 Korea of its entire equity interest in KSNET and a pledge by the immediate parent of Net1 Korea (also one of the Company's subsidiaries) of its entire equity interest in Net1 Korea. The Facilities Agreement contains customary covenants that require Net1 Korea to maintain agreed leverage and debt service coverage ratios and restricts Net1 Korea's ability to make certain distributions with respect to its capital stock, prepay other debt, encumber its assets, incur additional indebtedness, or engage in certain business combinations. The loans under the Facilities Agreement are without recourse to, and the covenants and other agreements contained therein do not apply to, the Company or any of the Company's subsidiaries (other than Net1 Korea). | |
The Company's refinanced KRW 92.4 billion Korean senior secured loan facility is described in Note 13 to the Company's audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2013. The Company has expensed the remaining prepaid facility fees related to the refinanced facility of approximately $0.4 million during the nine months ended March 31, 2014. The third scheduled repayment related to this refinanced facility of $7.3 million was paid on October 29, 2012. | |
Capital_Structure
Capital Structure | 9 Months Ended | ||||
Mar. 31, 2014 | |||||
Capital Structure [Abstract] | ' | ||||
Capital Structure | ' | ||||
10. Capital structure | |||||
The following table presents reconciliation between the number of shares, net of treasury, presented in the consolidated statement of changes in equity during the nine months ended March 31, 2014 and 2013, respectively, and the number of shares, net of treasury, excluding non-vested equity shares that have not vested during the nine months ended March 31, 2014 and 2013, respectively: | |||||
Nine months ended | |||||
March 31, | |||||
2014 | 2013 | ||||
Number of shares, net of treasury: | |||||
Statement of changes in equity | 45,783,342 | 45,600,471 | |||
Less: Non-vested equity shares that have | |||||
not vested | (385,778 | ) | (461,417 | ) | |
Number of shares, net of treasury | |||||
excluding non-vested equity shares | |||||
that have not vested | 45,397,564 | 45,139,054 | |||
December 2013 Black Economic Empowerment transactions | |||||
On December 10, 2013, the Company entered into definitive agreements relating to two Black Economic Empowerment ("BEE") transactions. As of March 31, 2014, the transactions had not been implemented because the agreed conditions had not been satisfied. Subsequently, the conditions were satisfied and the transactions were implemented on April 16, 2014. | |||||
Pursuant to these Relationship Agreements between the Company and its BEE partners, the Company sold an aggregate of 4,400,000 shares of its common stock ("BEE shares") for a purchase price of ZAR 60.00 per share. The ZAR 60.00 per share purchase price for the BEE shares, which are contractually restricted as to resale as described below, was paid in ZAR and represents 75% of the closing price of the Company's common stock on the JSE on December 6, 2013, the date the Company completed final negotiation of the terms of these BEE transactions. | |||||
The Relationship Agreements provided that the entire purchase price for the BEE shares be financed through a five-year loan to be extended to each of the BEE partners by a South African subsidiary of the Company. The obligations of the BEE partners under the loans are several, and not joint. Each of the BEE partners granted the lender a security interest in all the BEE shares purchased by such BEE partner to secure the repayment of its loan. The principal amount of the loans being made by the subsidiary was contributed by Net1 to the equity capital of the subsidiary. As a result of the making of the loans, the net cash position of the Company after the sale of the BEE shares remained unchanged. | |||||
The loans bear interest at a rate equal to the Johannesburg Interbank Rate (638 basis points as of March 31, 2014) plus 300 basis points. Interest on the loans is payable semi-annually in arrears on January 1 and July 1 of each year. 10% of the outstanding principal amount of the loans will be payable on each of the first and second anniversaries of the date of issuance of the BEE shares, 15% of the outstanding principal amount of the loans will be payable on each of the third and fourth anniversaries of the date of issuance of the BEE shares and the remaining outstanding principal amount of the loans will be payable on the fifth anniversary of the date of issuance of the BEE shares. Further, the entire outstanding principal amount of the loans will be payable if the price of the Company's common stock on the JSE equals or exceeds ZAR 120.00 per share at any time during term of the loans. Upon the occurrence of certain "trigger events" with respect to a BEE partner, the BEE shares held by that BEE partner may be repurchased by the Company or one of its designees. These trigger events include the following: | |||||
failure by the BEE partner to pay any amount due on its loan (including interest) to the lender (in this case, the Company may repurchase only that number of shares which would raise sufficient funds to settle any amount due and unpaid); | |||||
any other breach by the BEE partner (or in certain circumstances its shareholders) of any provision of the Relationship Agreement, including without limitation, its failure to maintain its BEE status; | |||||
the Company's common stock trades at or below ZAR 60.00 on the JSE or at or below the equivalent trading price on Nasdaq; | |||||
the occurrence of certain insolvency events or liquidation proceedings affecting the BEE partner; or | |||||
the BEE partner fails to satisfy any judgment or arbitration award granted or made against it within 7 days. | |||||
If the trigger event involves a failure by a BEE partner to pay any amount due on its loan, then the repurchase price is the volume-weighted average price of the Company's common stock on the Nasdaq for the period of 30 trading days prior to the trigger event, or 30-day VWAP. In the case of other trigger events, the repurchase price is the lower of the 30-day VWAP or ZAR 60.00 per share. | |||||
The BEE shares are contractually restricted as to resale for a period of five years from the date of issuance, with the exception of periodic sales which may be made to fund the repayment of principal and interest on the loans. In addition, the Company may call the BEE shares then owned by the BEE partners, either in exchange for a minority interest in CPS or for a cash payment equal to the 30-day VWAP. Further, after the fifth anniversary of the date of issuance of the BEE shares, the Company will have a right of first refusal on the shares owned by the BEE partners. | |||||
The loans to the BEE partners do not provide that they are recourse only to the BEE shares. Nevertheless, the Company expects that the sole source of repayment of the loans will be proceeds from the sale of its shares by the BEE partners from time to time, in open market or in privately negotiated transactions. | |||||
Acquisition of KSNET non-controlling interests | |||||
The Company acquired all of the issued share capital of KSNET, Inc. that it did not previously own for approximately $2.0 million in cash. The Company intends to realize certain Korean tax efficiencies in the future and is currently discussing the feasibility with its Korean tax advisors. The transaction was accounted for as an equity transaction with a non-controlling interest and accordingly, no gain or loss was recognized in the Company's consolidated statement of operations. The carrying amount of the non-controlling interest was adjusted to reflect the change in ownership interest in KSNET. The difference between the fair value of the consideration paid and the amount by which the non-controlling interest was adjusted, of $1.5 million, was recognized in equity attributable to Net1. | |||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive (Loss) Income | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accumulated Other Comprehensive (Loss) Income [Abstract] | ' | ||||||||
Accumulated Other Comprehensive (Loss) Income | ' | ||||||||
11. Accumulated other comprehensive (loss) income | |||||||||
The table below presents the change in accumulated other comprehensive (loss) income per component during the nine months ended March 31, 2014: | |||||||||
Nine months ended | |||||||||
31-Mar-14 | |||||||||
Net | |||||||||
unrealized | |||||||||
income | |||||||||
(loss) on | |||||||||
Foreign | asset | ||||||||
currency | available | ||||||||
translation | for sale, net | ||||||||
reserve | of tax | Total | |||||||
' 000 | ' 000 | ' 000 | |||||||
Balance as of June 30, 2013 | $ | (101,188 | ) | $ | 330 | $ | (100,858 | ) | |
Movement in foreign currency translation reserve | 2,660 | - | 2,660 | ||||||
Unrealized loss on asset available for sale, net of tax | |||||||||
of $112 | - | 288 | 288 | ||||||
Balance as of March 31, 2014 | $ | (98,528 | ) | $ | 618 | $ | (97,910 | ) | |
There were no reclassifications from accumulated other comprehensive loss to comprehensive (loss) income during the nine months ended March 31, 2014 or 2013, respectively. | |||||||||
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||
Stock-Based Compensation | ' | ||||||||
12. Stock-based compensation | |||||||||
Stock option and restricted stock activity | |||||||||
Options | |||||||||
The following table summarizes stock option activity for the nine months ended March 31, 2014 and 2013: | |||||||||
Weighted | Weighted | ||||||||
Weighted | Average | Average | |||||||
average | Remaining | Aggregate | Grant | ||||||
exercise | Contractual | Intrinsic | Date Fair | ||||||
Number of | price | Term | Value | Value | |||||
shares | ($) | (in years) | ($' 000) | ($) | |||||
Outstanding – June 30, 2013 | 2,648,583 | 15.15 | 5.98 | 313 | |||||
Granted under Plan: August | |||||||||
2013 | 224,896 | 7.35 | 10 | 568 | 2.53 | ||||
Exercised | (10,000 | ) | 8.75 | 12 | |||||
Forfeited | (136,420 | ) | 23.51 | ||||||
Outstanding – March 31, | |||||||||
2014 | 2,727,059 | 14.12 | 5.63 | 2,290 | |||||
Outstanding – June 30, 2012 | 2,247,583 | 16.28 | 6.43 | 602 | |||||
Granted under Plan: August | |||||||||
2012 | 431,000 | 8.75 | 10 | 1,249 | 2.9 | ||||
Exercised | (30,000 | ) | 7.98 | 24 | |||||
Outstanding – March 31, | |||||||||
2013 | 2,648,583 | 15.15 | 6.74 | 978 | |||||
The fair value of each option is estimated on the date of grant using the Cox Ross Rubinstein binomial model that uses the assumptions noted in the following table. The estimated expected volatility is calculated based on the Company's 250 day volatility. The estimated expected life of the option was determined based historical behavior of employees who were granted options with similar terms. The Company has estimated no forfeitures for options awarded in August 2013 and 2014, respectively. The table below presents the range of assumptions used to value options granted during the three and nine months ended March 31, 2014 and 2013: | |||||||||
Three and nine months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Expected volatility | 50 | % | 49 | % | |||||
Expected dividends | 0 | % | 0 | % | |||||
Expected life (in years) | 3 | 3 | |||||||
Risk-free rate | 0.9 | % | 0.3 | % | |||||
During the three and nine months ended March 31, 2014, terminated employees forfeited 136,420 stock options. There were no forfeitures during the three and nine months ended March 31, 2013. | |||||||||
The following table presents stock options vesting and expecting to vest as of March 31, 2014: | |||||||||
Weighted | |||||||||
Weighted | Average | ||||||||
average | Remaining | Aggregate | |||||||
exercise | Contractual | Intrinsic | |||||||
Number of | price | Term | Value | ||||||
shares | ($) | (in years) | ($' 000) | ||||||
Vested and expecting to vest | |||||||||
– March 31, 2014 | 2,727,059 | 14.12 | 5.63 | 2,290 | |||||
These options have an exercise price range of $6.59 to $24.46. | |||||||||
Weighted | |||||||||
Average | |||||||||
Weighted | Remaining | Aggregate | |||||||
average | Contractual | Intrinsic | |||||||
Number of | exercise | Term | Value | ||||||
shares | price ($) | (in years) | ($'000) | ||||||
Exercisable | 1,998,497 | $16.08 | 4.8 | 1,057 | |||||
During each of the three months ended March 31, 2014 and 2013, respectively, no stock options became exercisable. During the nine months ended March 31, 2014 and 2013, respectively, 358,333 and 244,666 stock options became exercisable. Included in the 244,666 stock options are 30,000 stock options with respect to which the Remuneration Committee of the Board agreed to accelerate vesting, in August 2012, prior to the resignation of a non-employee director. During the three and nine months ended March 31, 2014, the Company received approximately $0.1 million from 10,000 stock options exercised. During the nine months ended March 31, 2013, the Company received approximately $0.2 million from 30,000 stock options exercised by the non-employee director that resigned. No stock options were exercised during the three months ended March 31, 2013. The Company issues new shares to satisfy stock option exercises. | |||||||||
Restricted stock | |||||||||
The following table summarizes restricted stock activity for the three and nine months ended March 31, 2014 and 2013: | |||||||||
Weighted | |||||||||
Number of | Average | ||||||||
Shares of | Grant Date | ||||||||
Restricted | Fair Value | ||||||||
Stock | ($' 000) | ||||||||
Non-vested – June 30, 2013 | 405,226 | 4,393 | |||||||
Granted – August 2013 | 187,963 | 1,382 | |||||||
Vested – August 2013 | (16,907 | ) | 161 | ||||||
Vested – February 2014 | (183,333 | ) | 1,742 | ||||||
Forfeitures – October 2013 | (7,171 | ) | 84 | ||||||
Non-vested – March 31, 2014 | 385,778 | 3,534 | |||||||
Non-vested – June 30, 2012 | 646,617 | 7,061 | |||||||
Granted – August 2012 | 21,569 | 189 | |||||||
Granted – February 2013 | (183,333 | ) | 1,016 | ||||||
Vested – August 2012 | (23,436 | ) | 216 | ||||||
Non-vested – March 31, 2013 | 461,417 | 4,988 | |||||||
The fair value of restricted stock vesting during the three months ended March 31, 2014 and 2013, respectively, was $1.7 million and $1.0 million. The fair value of restricted stock vesting during the nine months ended March 31, 2014 and 2013, respectively, was $1.9 million and $1.2 million. A non-employee director resigned during the nine months ended March 31, 2014, and forfeited 7,171 shares of restricted stock. Included in the 23,436 shares of restricted stock that vested in August 2012 are 8,547 shares with respect to which the Remuneration Committee of the Board agreed to accelerate vesting prior to the resignation of a non-employee director. | |||||||||
The fair value of restricted stock is based on the closing price of the Company's stock quoted on The Nasdaq Global Select Market on the date of grant. | |||||||||
Stock-based compensation charge and unrecognized compensation cost | |||||||||
The Company has recorded a stock compensation charge of $0.9 million and $1.1 million for the three months ended March 31, 2014 and 2013, respectively, which | |||||||||
comprised: | |||||||||
Allocated to cost | |||||||||
of goods sold, IT | Allocated to | ||||||||
processing, | selling, general | ||||||||
Total | servicing and | and | |||||||
charge | support | administration | |||||||
Three months ended March 31, 2014 | |||||||||
Stock-based compensation charge | $ | 922 | - | $ | 922 | ||||
Total – three months ended March 31, 2014 | $ | 922 | $ | - | $ | 922 | |||
Three months ended March 31, 2013 | |||||||||
Stock-based compensation charge | $ | 1,092 | $ | - | $ | 1,092 | |||
Total – three months ended March 31, 2013 | $ | 1,092 | $ | - | $ | 1,092 | |||
The Company has recorded a stock compensation charge of $2.8 million and $3.3 million for the nine months ended March 31, 2014 and 2013, respectively, which comprised: | |||||||||
Allocated to cost | |||||||||
of goods sold, IT | Allocated to | ||||||||
processing, | selling, general | ||||||||
Total | servicing and | and | |||||||
charge | support | administration | |||||||
Nine months ended March 31, 2014 | |||||||||
Stock-based compensation charge | $ | 2,826 | $ | $- | $ | 2,826 | |||
Reversal of stock compensation charge related to | |||||||||
restricted stock forfeited | (6 | ) | - | (6 | ) | ||||
Total – nine months ended March 31, 2014 | $ | 2,820 | $ | $- | $ | 2,820 | |||
Nine months ended March 31, 2013 | |||||||||
Stock-based compensation charge | $ | 3,325 | $ | - | $ | 3,325 | |||
Total – nine months ended March 31, 2013 | $ | 3,325 | $ | $- | $ | 3,325 | |||
The stock-based compensation charges have been allocated to selling, general and administration based on the allocation of the cash compensation paid to the employees. | |||||||||
As of March 31, 2014, the total unrecognized compensation cost related to stock options was approximately $1.1 million, which the Company expects to recognize over approximately three years. As of March 31, 2014, the total unrecognized compensation cost related to restricted stock awards was approximately $3.0 million, which the Company expects to recognize over approximately two years. | |||||||||
As of each of March 31, 2014 and June 30, 2013, respectively, the Company has recorded a deferred tax asset of approximately $1.5 million related to the stock-based compensation charge recognized related to employees and directors of Net1 as it is able to deduct the grant date fair value for taxation purposes in the United States. | |||||||||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
13. Earnings per share | |||||||||||||
Basic earnings per share include shares of restricted stock that meet the definition of a participating security because these shares are eligible to receive non-forfeitable dividend equivalents at the same rate as common stock. Basic earnings per share have been calculated using the two-class method and basic earnings per share for the three and nine months ended March 31, 2014 and 2013, reflects only undistributed earnings. The computation below of basic earnings per share excludes the net income attributable to shares of unvested restricted stock (participating non-vested restricted stock) from the numerator and excludes the dilutive impact of these unvested shares of restricted stock from the denominator. | |||||||||||||
Diluted earnings per share has been calculated to give effect to the number of shares of additional common stock that would have been outstanding if the potential dilutive instruments had been issued in each period. Stock options are included in the calculation of diluted earnings per share utilizing the treasury stock method and are not considered to be participating securities as the stock options do not contain non-forfeitable dividend rights. The calculation of diluted earnings per share includes the dilutive effect of a portion of the restricted stock granted to employees in February 2012 and August 2013 as these shares of restricted stock are considered contingently returnable shares for the purposes of the diluted earnings per share calculation and the vesting conditions in respect of a portion of the restricted stock had been satisfied. The vesting conditions are discussed in Note 17 to the Company's audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2013. | |||||||||||||
The following table presents net income attributable to Net1 (income from continuing operations) and the share data used in the basic and diluted earnings per share computations using the two-class method: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(in thousands except percent | (in thousands except percent | ||||||||||||
and | and | ||||||||||||
per share data) | per share data) | ||||||||||||
Numerator: | |||||||||||||
Net income (loss) attributable to Net1 | $ | 17,182 | $ | (4,681 | ) | $ | 41,527 | $ | 4,692 | ||||
Undistributed earnings (loss) | 17,182 | (4,681 | ) | 41,527 | 4,692 | ||||||||
Percent allocated to common shareholders | |||||||||||||
(Calculation 1) | 99 | % | 99 | % | 99 | % | 99 | % | |||||
Numerator for earnings (loss) per share: | |||||||||||||
basic and diluted | $ | 16,944 | $ | (4,634 | ) | $ | 40,917 | $ | 4,637 | ||||
Denominator: | |||||||||||||
Denominator for basic earnings per share: | |||||||||||||
weighted-average common shares | |||||||||||||
outstanding | 45,142 | 45,098 | 45,070 | 45,018 | |||||||||
Effect of dilutive securities: | |||||||||||||
Performance shares related to | |||||||||||||
acquisition | - | 16 | - | 5 | |||||||||
Stock options | 91 | 26 | 106 | 37 | |||||||||
Denominator for diluted earnings per | |||||||||||||
share: adjusted weighted average | |||||||||||||
common shares outstanding and | |||||||||||||
assumed conversion | 45,233 | 45,140 | 45,176 | 45,060 | |||||||||
Earnings (loss) per share: | |||||||||||||
Basic | $ | 0.38 | $ | (0.10 | ) | $ | 0.91 | $ | 0.1 | ||||
Diluted | $ | 0.37 | $ | (0.10 | ) | $ | 0.9 | $ | 0.1 | ||||
(Calculation 1) | |||||||||||||
Basic weighted-average common shares | |||||||||||||
outstanding (A) | 45,142 | 45,098 | 45,070 | 45,018 | |||||||||
Basic weighted-average common shares | |||||||||||||
outstanding and unvested restricted shares | |||||||||||||
expected to vest (B) | 45,776 | 45,557 | 45,742 | 45,552 | |||||||||
Percent allocated to common shareholders | |||||||||||||
(A) / (B) | 99 | % | 99 | % | 99 | % | 99 | % | |||||
Options to purchase 2,040,339 shares of the Company's common stock at prices ranging from $7.35 to $24.46 per share were outstanding during the three and nine months ended March 31, 2014, but were not included in the computation of diluted earnings per share because the options' exercise price were greater than the average market price of the Company's common shares. The options, which expire at various dates through August 21, 2023, were still outstanding as of March 31, 2014. | |||||||||||||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Supplemental Cash Flow Information [Abstract] | ' | ||||||||
Supplemental Cash Flow Information | ' | ||||||||
14. Supplemental cash flow information | |||||||||
The following table presents the supplemental cash flow disclosures for the three and nine months ended March 31, 2014 and 2013: | |||||||||
Three months ended | Nine months ended | ||||||||
March 31, | March 31, | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Cash received from interest | $ | 3,422 | $ | 2,395 | $ | 9,886 | $ | 8,104 | |
Cash paid for interest | $ | 1,651 | $ | 2,020 | $ | 5,317 | $ | 6,073 | |
Cash paid for income taxes | $ | 1,570 | $ | 1,701 | $ | 16,097 | $ | 12,180 | |
Operating_Segments
Operating Segments | 9 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Operating Segments [Abstract] | ' | ||||||||||||
Operating Segments | ' | ||||||||||||
15. Operating segments | |||||||||||||
The Company discloses segment information as reflected in the management information systems reports that its chief operating decision maker uses in making decisions and to report certain entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets or reports material revenues. A description of the Company's operating segments is contained in Note 22 to the Company's audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2013. | |||||||||||||
The following tables summarize segment information which is prepared in accordance with GAAP: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Revenues from external customers | |||||||||||||
SA transaction-based activities | $ | 64,864 | $ | 59,009 | $ | 200,133 | $ | 181,137 | |||||
International transaction-based activities | 34,994 | 33,119 | 109,099 | 97,881 | |||||||||
Smart card accounts | 10,612 | 8,657 | 33,178 | 25,240 | |||||||||
Financial services | 11,099 | 1,651 | 19,725 | 4,483 | |||||||||
Hardware, software and related technology sales | 16,557 | 8,705 | 36,768 | 25,524 | |||||||||
Total | 138,126 | 111,141 | 398,903 | 334,265 | |||||||||
Inter-company revenues | |||||||||||||
SA transaction-based activities | 3,433 | 1,492 | 8,665 | 9,360 | |||||||||
International transaction-based activities | - | - | - | - | |||||||||
Smart card accounts | - | - | - | - | |||||||||
Financial services | 259 | 308 | 784 | 1,095 | |||||||||
Hardware, software and related technology sales | 76 | 135 | 595 | 722 | |||||||||
Total | 3,768 | 1,935 | 10,044 | 11,177 | |||||||||
Operating income (loss) | |||||||||||||
SA transaction-based activities | 11,145 | (4,197 | ) | 37,825 | 4,136 | ||||||||
International transaction-based activities | 1,322 | (1,362 | ) | 4,738 | (1,331 | ) | |||||||
Smart card accounts | 3,025 | 2,467 | 9,456 | 7,194 | |||||||||
Financial services | 5,119 | 1,147 | 6,902 | 3,292 | |||||||||
Hardware, software and related technology sales | 4,000 | 1,699 | 8,540 | 4,478 | |||||||||
Subtotal: Operating segments | 24,611 | (246 | ) | 67,461 | 17,769 | ||||||||
Corporate/Eliminations | (662 | ) | (4,480 | ) | (8,310 | ) | (8,198 | ) | |||||
Total | 23,949 | (4,726 | ) | 59,151 | 9,571 | ||||||||
Interest income | |||||||||||||
SA transaction-based activities | - | - | - | - | |||||||||
International transaction-based activities | - | - | - | - | |||||||||
Smart card accounts | - | - | - | - | |||||||||
Financial services | - | - | - | - | |||||||||
Hardware, software and related technology sales | - | - | - | - | |||||||||
Subtotal: Operating segments | - | - | - | - | |||||||||
Corporate/Eliminations | 3,438 | 2,515 | 9,993 | 8,195 | |||||||||
Total | $ | 3,438 | $ | 2,515 | $ | 9,993 | 8,195 | ||||||
Interest expense | |||||||||||||
SA transaction-based activities | $ | 28 | $ | 244 | $ | 71 | $ | 589 | |||||
International transaction-based activities | 2 | - | 46 | - | |||||||||
Smart card accounts | - | - | - | - | |||||||||
Financial services | 418 | - | 807 | - | |||||||||
Hardware, software and related technology sales | 181 | 81 | 540 | 207 | |||||||||
Subtotal: Operating segments | 629 | 325 | 1,464 | 796 | |||||||||
Corporate/Eliminations | 1,105 | 1,698 | 4,248 | 5,321 | |||||||||
Total | 1,734 | 2,023 | 5,712 | 6,117 | |||||||||
Depreciation and amortization | |||||||||||||
SA transaction-based activities | 2,895 | 3,198 | 7,827 | 9,628 | |||||||||
International transaction-based activities | 7,364 | 7,049 | 21,834 | 20,753 | |||||||||
Smart card accounts | - | - | - | - | |||||||||
Financial services | 115 | 163 | 348 | 347 | |||||||||
Hardware, software and related technology sales | 68 | 150 | 236 | 323 | |||||||||
Subtotal: Operating segments | 10,442 | 10,560 | 30,245 | 31,051 | |||||||||
Corporate/Eliminations | - | - | - | - | |||||||||
Total | 10,442 | 10,560 | 30,245 | 31,051 | |||||||||
Income taxation expense (benefit) | |||||||||||||
SA transaction-based activities | 3,113 | (1,245 | ) | 10,571 | 991 | ||||||||
International transaction-based activities | 17 | (587 | ) | 661 | (1,167 | ) | |||||||
Smart card accounts | 848 | 691 | 2,647 | 2,014 | |||||||||
Financial services | 1,320 | 327 | 1,723 | 937 | |||||||||
Hardware, software and related technology sales | 1,095 | 409 | 2,097 | 1,039 | |||||||||
Subtotal: Operating segments | 6,393 | (405 | ) | 17,699 | 3,814 | ||||||||
Corporate/Eliminations | 2,142 | 877 | 4,420 | 3,358 | |||||||||
Total | 8,535 | 472 | 22,119 | 7,172 | |||||||||
Net income (loss) attributable to Net1 | |||||||||||||
SA transaction-based activities | 8,003 | (3,199 | ) | 27,182 | 2,552 | ||||||||
International transaction-based activities | 1,591 | (642 | ) | 4,577 | 193 | ||||||||
Smart card accounts | 2,177 | 1,776 | 6,808 | 5,178 | |||||||||
Financial services | 3,394 | 839 | 4,432 | 2,409 | |||||||||
Hardware, software and related technology sales | 2,729 | 1,210 | 5,912 | 3,239 | |||||||||
Subtotal: Operating segments | 17,894 | (16 | ) | 48,911 | 13,571 | ||||||||
Corporate/Eliminations | (712 | ) | (4,665 | ) | (7,384 | ) | (8,879 | ) | |||||
Total | 17,182 | (4,681 | ) | 41,527 | 4,692 | ||||||||
Expenditures for long-lived assets | |||||||||||||
SA transaction-based activities | 302 | 2,583 | 2,601 | 7,552 | |||||||||
International transaction-based activities | 4,231 | 2,074 | 13,744 | 8,844 | |||||||||
Smart card accounts | - | - | - | - | |||||||||
Financial services | 222 | 357 | 408 | 629 | |||||||||
Hardware, software and related technology sales | 93 | 39 | 556 | 78 | |||||||||
Subtotal: Operating segments | 4,848 | 5,053 | 17,309 | 17,103 | |||||||||
Corporate/Eliminations | - | - | - | - | |||||||||
Total | $ | 4,848 | $ | 5,053 | $ | 17,309 | $ | 17,103 | |||||
The segment information as reviewed by the chief operating decision maker does not include a measure of segment assets per segment as all of the significant assets are used in the operations of all, rather than any one, of the segments. The Company does not have dedicated assets assigned to a particular operating segment. Accordingly, it is not meaningful to attempt an arbitrary allocation and segment asset allocation is therefore not presented. | |||||||||||||
It is impractical to disclose revenues from external customers for each product and service or each group of similar products and services. | |||||||||||||
Income_Tax
Income Tax | 9 Months Ended |
Mar. 31, 2014 | |
Income Tax [Abstract] | ' |
Income Tax | ' |
16. Income tax | |
Income tax in interim periods | |
For the purposes of interim financial reporting, the Company determines the appropriate income tax provision by first applying the effective tax rate expected to be applicable for the full fiscal year to ordinary income. This amount is then adjusted for the tax effect of significant unusual or extraordinary items, for instance, changes in tax law, valuation allowances and non-deductible transaction-related expenses that are reported separately, and have an impact on the tax charge. The cumulative effect of any change in the enacted tax rate, if and when applicable, on the opening balance of deferred tax assets and liabilities is also included in the tax charge as a discrete event in the interim period in which the enactment date occurs. | |
For the three and nine months ended March 31, 2014, the tax charge was calculated using the expected effective tax rate for the year. The Company's effective tax rate for the three and nine months ended March 31, 2014, was 33.3% and 34.9%, respectively, and was higher than the South African statutory rate primarily as a result of non-deductible expenses (including interest expense related to the Company's long-term Korean borrowings and stock-based compensation charges). | |
The Company's effective tax rate for the three months ended March 31, 2013, was (11.1%) and is negative as a result of the loss before income taxes and differed from the South African statutory rate primarily as a result of a valuation allowance for foreign tax credits, non-deductible expenses (including interest expense related to the Company's long-term Korean borrowings and stock-based compensation charges) and South African dividend withholding taxes. The Company's effective tax rate for the nine months ended March 31, 2013, was 61.6% and was higher than the South African statutory rate primarily as a result of a valuation allowance for foreign tax credits, non-deductible expenses (including interest expense related to the Company's long-term Korean borrowings and stock-based compensation charges) and South African dividend withholding taxes. | |
Uncertain tax positions | |
There were no changes during the three and nine months ended March 31, 2014. As of March 31, 2014, the Company had accrued interest related to uncertain tax positions of approximately $0.2 million on its balance sheet. | |
The Company does not expect changes related to its unrecognized tax benefits will have a significant impact on its results of operations or financial position in the next 12 months. | |
The Company files income tax returns mainly in South Africa, Korea, Austria, Botswana, the Russian Federation and in the US federal jurisdiction. As of March 31, 2014, the Company is no longer subject to any new income tax examination by the South African Revenue Service for years before June 30, 2009. In 2011, the Korea National Tax Service had completed the examination of the Company's returns in Korea related to years 2006 through 2010. The Company is subject to income tax in other jurisdictions outside South Africa and Korea, none of which are individually material to its financial position, cash flows, or results of operations. | |
Commitments_And_Contingencies
Commitments And Contingencies | 9 Months Ended |
Mar. 31, 2014 | |
Commitments And Contingencies [Abstract] | ' |
Commitments And Contingencies | ' |
17. Commitments and contingencies | |
Guarantees | |
The South African Revenue Service and certain of the Company's customers, suppliers and other business partners have asked the Company to provide them with guarantees, including standby letters of credit, issued by a South African bank. The Company is required to procure these guarantees for these third parties to operate its business. | |
Nedbank has issued guarantees to these third parties amounting to ZAR 143.1 million ($13.5 million, translated at exchange rates applicable as of March 31, 2014) and thereby utilizing part of the Company's short-term facility. The Company in turn has provided nonrecourse, unsecured counter-guarantees to Nedbank for the same amount. The Company pays commission of between 0.2% per annum to 2.0% per annum of the face value of these guarantees and does not recover any of the commission from third parties. | |
The Company has not recognized any obligation related to these counter-guarantees in its unaudited condensed consolidated balance sheet as of March 31, 2014. The maximum potential amount that the Company could pay under these guarantees is ZAR 143.1 million ($13.5 million, translated at exchange rates applicable as of March 31, 2014). The guarantees have reduced the amount available for borrowings under the Company's short-term credit facility described in Note 8. | |
Contingencies | |
Securities Litigation | |
On December 24, 2013, Net1, its chief executive officer and its chief financial officer were named as defendants in a purported class action lawsuit filed in the United States District Court for the Southern District of New York alleging violations of the federal securities laws. | |
The lawsuit alleges that Net1 made materially false and misleading statements regarding its business and compliance policies in its SEC filings and other public disclosures. The lawsuit was brought on behalf of a purported shareholder of Net1 and all other similarly situated shareholders who purchased its securities between August 27, 2009 and November 27, 2013. The lawsuit seeks unspecified damages. The Company believes this lawsuit has no merit and intends to defend it vigorously. | |
The Company is subject to a variety of insignificant claims and suits that arise from time to time in the ordinary course of business. | |
Management currently believes that the resolution of these matters, individually or in the aggregate, will not have a material adverse impact on the Company's financial position, results of operations and cash flows. | |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
18. Subsequent events | |
On April 17, 2014, the South African Constitutional Court ("Court") ruled on the appropriate remedy following its declaration on November 29, 2013, that the tender process followed by the South African Social Security Agency ("SASSA") in awarding a contract to the Company's wholly-owned subsidiary, CPS, was constitutionally invalid. The declaration of invalidity of the contract between SASSA and CPS was upheld, but suspended until a new tender is awarded, or for the remainder of the existing contract period if no tender is awarded. SASSA is required to initiate a new tender process within 30 days of the Court's ruling and any award must be for a period of five years. In addition, the Court required new and independent Bid Evaluation and Bid Adjudication Committees to be appointed to evaluate and adjudicate the new tender process. If a new tender is not awarded, the declaration of invalidity of the current contract between SASSA and CPS will further be suspended until the completion of the five-year period for which the contract was originally awarded. | |
Basis_Of_Presentation_And_Summ1
Basis Of Presentation And Summary Of Significant Accounting Policies (Policy) | 9 Months Ended |
Mar. 31, 2014 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Abstract] | ' |
Unaudited Interim Financial Information | ' |
Unaudited Interim Financial Information | |
The accompanying unaudited condensed consolidated financial statements include all majority-owned subsidiaries over which the Company exercises control and have been prepared in accordance with US generally accepted accounting principles ("GAAP") and the rules and regulations of the Securities and Exchange Commission for quarterly reports on Form 10-Q and include all of the information and disclosures required for interim financial reporting. The results of operations for the three and nine months ended March 31, 2014 and 2013, are not necessarily indicative of the results for the full year. The Company believes that the disclosures are adequate to make the information presented not misleading. | |
These financial statements should be read in conjunction with the financial statements, accounting policies and financial notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2013. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments), which are necessary for a fair representation of financial results for the interim periods presented. | |
References to the "Company" refer to Net1 and its consolidated subsidiaries, unless the context otherwise requires. References to Net1 are references solely to Net 1 UEPS Technologies, Inc. | |
The Company has updated its accounting policy for the allowance for doubtful finance loans receivable as a result of the increase in its UEPS-based lending book which is included in finance loans receivable in its unaudited condensed consolidated balance sheet. The Company does not believe that an allowance for doubtful finance loans receivable is required for finance loans receivable as of June 30, 2013, because this was an established book and has been recovered. However, the profile of the loan book has changed due to the expansion of the UEPS-based lending book during the nine months ended March 31, 2014, and accordingly an allowance for doubtful finance loans receivable is deemed required by the Company. | |
Loan Provisions And Allowance For Doubtful Accounts Receivable | ' |
Loan provisions and allowance for doubtful accounts receivable | |
UEPS-based lending | |
The Company's policy is to regularly review the ageing of outstanding amounts due from borrowers and adjust the provision based on management's estimate of the recoverability of finance loans receivable. The Company writes off UEPS-based loans and related service fees if a borrower is in arrears with repayments for more than three months or dies. | |
Recent Accounting Pronouncements | ' |
Recent accounting pronouncements adopted | |
In February 2013, the FASB issued guidance regarding Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This guidance requires entities to present (either on the face of the statement of operations or in the notes) the effects on the line items of the statement of operations for amounts reclassified out of accumulated other comprehensive income. The guidance is effective for the Company beginning July 1, 2013 and is applied prospectively. The adoption of this guidance did not have a material impact on the Company's financial statements. | |
Recent accounting pronouncements not yet adopted as of March 31, 2014 | |
In March 2013, the FASB issued guidance regarding Parent's Accounting for the Cumulative Translation Adjustment Upon Derecognition of Certain Subsidiaries or Groups of Assets Within a Foreign Entity or of an Investment in a Foreign Entity. This guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The guidance is effective for the Company beginning July 1, 2014. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its financial statements on adoption. | |
Inventory_Tables
Inventory (Tables) | 9 Months Ended | ||||
Mar. 31, 2014 | |||||
Inventory [Abstract] | ' | ||||
Schedule Of Inventory By Categories | ' | ||||
March 31, | June 30, | ||||
2014 | 2013 | ||||
Finished goods | $ | 10,491 | $ | 12,222 | |
$ | 10,491 | $ | 12,222 |
Fair_Value_Of_Financial_Instru1
Fair Value Of Financial Instruments And Equity-Accounted Investments (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Fair Value Of Financial Instruments And Equity-Accounted Investments [Abstract] | ' | ||||||||
Outstanding Foreign Exchange Contracts | ' | ||||||||
The Company's outstanding foreign exchange contracts are as follows: | |||||||||
As of March 31, 2014 | |||||||||
Fair market | |||||||||
Notional amount | Strike price | value price | Maturity | ||||||
EUR | 192,375 | ZAR | 14.9984 | ZAR | 14.5664 | 22-Apr-14 | |||
EUR | 192,375 | ZAR | 15.1351 | ZAR | 14.5664 | 22-Apr-14 | |||
EUR | 192,195 | ZAR | 15.2014 | ZAR | 14.629 | 20-May-14 | |||
EUR | 192,195 | ZAR | 15.0637 | ZAR | 14.629 | 20-May-14 | |||
EUR | 180,023 | ZAR | 15.275 | ZAR | 14.7011 | 20-Jun-14 | |||
EUR | 180,023 | ZAR | 15.1349 | ZAR | 14.7011 | 20-Jun-14 | |||
EUR | 182,273 | ZAR | 15.2077 | ZAR | 14.7778 | 21-Jul-14 | |||
EUR | 182,273 | ZAR | 15.3488 | ZAR | 14.7778 | 21-Jul-14 | |||
EUR | 180,023 | ZAR | 15.4228 | ZAR | 14.8537 | 20-Aug-14 | |||
EUR | 180,023 | ZAR | 15.2819 | ZAR | 14.8537 | 20-Aug-14 | |||
EUR | 180,023 | ZAR | 15.3623 | ZAR | 14.9372 | 22-Sep-14 | |||
EUR | 180,023 | ZAR | 15.5041 | ZAR | 14.9372 | 22-Sep-14 | |||
Fair market | |||||||||
Notional amount | Strike price | value price | Maturity | ||||||
EUR | 181,571 | ZAR | 15.5739 | ZAR | 15.0122 | 20-Oct-14 | |||
EUR | 181,571 | ZAR | 15.4316 | ZAR | 15.0122 | 20-Oct-14 | |||
EUR | 180,023 | ZAR | 15.6552 | ZAR | 15.0976 | 20-Nov-14 | |||
EUR | 180,023 | ZAR | 15.5136 | ZAR | 15.0976 | 20-Nov-14 | |||
EUR | 180,023 | ZAR | 15.597 | ZAR | 15.1859 | 22-Dec-14 | |||
EUR | 180,023 | ZAR | 15.7391 | ZAR | 15.1859 | 22-Dec-14 | |||
EUR | 174,425 | ZAR | 15.8119 | ZAR | 15.2688 | 20-Jan-15 | |||
EUR | 174,425 | ZAR | 15.6729 | ZAR | 15.2688 | 20-Jan-15 | |||
As of June 30, 2013 | |||||||||
Fair market | |||||||||
Notional amount | Strike price | value price | Maturity | ||||||
USD | 4,000,000 | ZAR | 9.06 | ZAR | 10.1397 | 30-Sep-13 | |||
Fair Value Of Assets And Liabilities Measured On Recurring Basis | ' | ||||||||
The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of March 31, 2014, according to the fair value hierarchy: | |||||||||
Quoted | |||||||||
Price in | |||||||||
Active | Significant | ||||||||
Markets for | Other | Significant | |||||||
Identical | Observable | Unobservable | |||||||
Assets | Inputs | Inputs | |||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||
Assets | |||||||||
Related to insurance business (included in | |||||||||
other long-term assets): | |||||||||
Cash and cash equivalents | $ | 1,778 | $ | - | $ | - | $ | 1,778 | |
Investment in Finbond (available for sale | |||||||||
assets included in other long-term assets) | - | - | 7,662 | 7,662 | |||||
Other | - | 138 | - | 138 | |||||
Total assets at fair value | $ | 1,778 | $ | 138 | $ | 7,662 | $ | 9,578 | |
Quoted | |||||||||
Price in | |||||||||
Active | Significant | ||||||||
Markets for | Other | Significant | |||||||
Identical | Observable | Unobservable | |||||||
Assets | Inputs | Inputs | |||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||
Liabilities | |||||||||
Foreign exchange contracts | $ | - | $ | 170 | $ | - | $ | 170 | |
Total liabilities at fair value | $ | - | $ | 170 | $ | - | $ | 170 | |
The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of June 30, 2013, according to the fair value hierarchy: | |||||||||
Quoted | |||||||||
Price in | |||||||||
Active | Significant | ||||||||
Markets for | Other | Significant | |||||||
Identical | Observable | Unobservable | |||||||
Assets | Inputs | Inputs | |||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||
Assets | |||||||||
Related to insurance business (included in | |||||||||
other long-term assets): | |||||||||
Cash and cash equivalents | $ | 1,833 | $ | - | $ | - | $ | 1,833 | |
Investment in Finbond (available for sale | |||||||||
assets included in other long-term assets) | - | - | 8,303 | 8,303 | |||||
Other | - | 147 | - | 147 | |||||
Total assets at fair value | $ | 1,833 | $ | 147 | $ | 8,303 | $ | 10,283 | |
Liabilities | |||||||||
Foreign exchange contracts | $ | - | $ | 436 | $ | - | $ | 436 | |
Total liabilities at fair value | $ | - | $ | 436 | $ | - | $ | 436 | |
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
Goodwill And Intangible Assets [Abstract] | ' | ||||||||||||||
Carrying Value Of Goodwill | ' | ||||||||||||||
Accumulated | Carrying | ||||||||||||||
Gross value | impairment | value | |||||||||||||
Balance as of June 30, 2013 | $ | 218,558 | $ | (42,752 | ) | $ | 175,806 | ||||||||
Foreign currency adjustment (1) | 6,032 | (2,006 | ) | 4,026 | |||||||||||
Balance as of March 31, 2014 | $ | 224,590 | ($ | 44,758 | ) | $ | 179,832 | ||||||||
(1) – the foreign currency adjustment represents the effects of the fluctuations between the South African rand and the Korean won, and the US dollar on the carrying value. | |||||||||||||||
Goodwill Allocated To Reportable Segments | ' | ||||||||||||||
As of | As of | ||||||||||||||
March 31, | June 30, | ||||||||||||||
2014 | 2013 | ||||||||||||||
SA transaction-based activities | $ | 28,532 | $ | 30,525 | |||||||||||
International transaction-based activities | 121,656 | 113,972 | |||||||||||||
Smart card accounts | - | - | |||||||||||||
Financial services | - | - | |||||||||||||
Hardware, software and related technology sales | 29,644 | 31,309 | |||||||||||||
Total | $ | 179,832 | $ | 175,806 | |||||||||||
Carrying Value And Accumulated Amortization Of Intangible Assets | ' | ||||||||||||||
As of March 31, 2014 | As of June 30, 2013 | ||||||||||||||
Gross | Net | Gross | Net | ||||||||||||
carrying | Accumulated carrying | carrying | Accumulated | carrying | |||||||||||
value | amortization | value | value | amortization | value | ||||||||||
Finite-lived intangible assets: | |||||||||||||||
Customer relationships | $ | 94,309 | $ | (37,373 | ) | $ | 56,936 | $ | 90,469 | $ | (29,818 | ) | $ | 60,651 | |
Software and unpatented | |||||||||||||||
technology | 35,851 | (27,512 | ) | 8,339 | 34,951 | (22,151 | ) | 12,800 | |||||||
FTS patent | 3,620 | (3,620 | ) | - | 3,873 | (3,873 | ) | - | |||||||
Exclusive licenses | 4,506 | (4,506 | ) | - | 4,506 | (4,506 | ) | - | |||||||
Trademarks | 6,671 | (2,681 | ) | 3,990 | 6,611 | (2,805 | ) | 3,806 | |||||||
Customer database | 574 | (574 | ) | - | 614 | (614 | ) | - | |||||||
Total finite-lived intangible | |||||||||||||||
assets | $ | 145,531 | $ | (76,266 | ) | $ | 69,265 | $ | 141,024 | $ | (63,767 | ) | $ | 77,257 | |
Future Estimated Annual Amortization Expense | ' | ||||||||||||||
2014 | $ | 16,229 | |||||||||||||
2015 | 15,080 | ||||||||||||||
2016 | 11,280 | ||||||||||||||
2017 | 8,958 | ||||||||||||||
2018 | 8,958 | ||||||||||||||
Thereafter | $ | 20,671 |
Reinsurance_Assets_And_Policy_1
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts (Tables) | 9 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts [Abstract] | ' | ||||||
Summary Of The Movement In Reinsurance Assets And Policy Holder Liabilities Under Insurance Contracts | ' | ||||||
Reinsurance | Insurance | ||||||
assets (1) | contracts (2) | ||||||
Balance as of June 30, 2013 | $ | 19,557 | $ | (19,711 | ) | ||
Foreign currency adjustment (3) | (1,276 | ) | 1,287 | ||||
Balance as of March 31, 2014 | $ | 18,281 | $ | (18,424 | ) | ||
(1) Included in other long-term assets. | |||||||
(2) Included in other long-term liabilities. | |||||||
(3) The foreign currency adjustment represents the effects of the fluctuations between the ZAR against the US dollar. | |||||||
Summary Of Movement In Assets And Policy Holder Liabilities Under Investment Contracts | ' | ||||||
Investment | |||||||
Assets (1) | contracts (2) | ||||||
Balance as of June 30, 2013 | $ | 953 | $ | (953 | ) | ||
Foreign currency adjustment (3) | (62 | ) | 62 | ||||
Balance as of March 31, 2014 | $ | 891 | $ | (891 | ) | ||
(1) Included in other long-term assets. | |||||||
(2) Included in other long-term liabilities. | |||||||
(3) The foreign currency adjustment represents the effects of the fluctuations between the ZAR against the US dollar. | |||||||
Capital_Structure_Tables
Capital Structure (Tables) | 9 Months Ended | ||||
Mar. 31, 2014 | |||||
Capital Structure [Abstract] | ' | ||||
Schedule Of Number Of Shares, Net Of Treasury | ' | ||||
Nine months ended | |||||
March 31, | |||||
2014 | 2013 | ||||
Number of shares, net of treasury: | |||||
Statement of changes in equity | 45,783,342 | 45,600,471 | |||
Less: Non-vested equity shares that have | |||||
not vested | (385,778 | ) | (461,417 | ) | |
Number of shares, net of treasury | |||||
excluding non-vested equity shares | |||||
that have not vested | 45,397,564 | 45,139,054 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accumulated Other Comprehensive (Loss) Income [Abstract] | ' | ||||||||
Changes In Accumulated Other Comprehensive (Loss) Income | ' | ||||||||
Nine months ended | |||||||||
31-Mar-14 | |||||||||
Net | |||||||||
unrealized | |||||||||
income | |||||||||
(loss) on | |||||||||
Foreign | asset | ||||||||
currency | available | ||||||||
translation | for sale, net | ||||||||
reserve | of tax | Total | |||||||
' 000 | ' 000 | ' 000 | |||||||
Balance as of June 30, 2013 | $ | (101,188 | ) | $ | 330 | $ | (100,858 | ) | |
Movement in foreign currency translation reserve | 2,660 | - | 2,660 | ||||||
Unrealized loss on asset available for sale, net of tax | |||||||||
of $112 | - | 288 | 288 | ||||||
Balance as of March 31, 2014 | $ | (98,528 | ) | $ | 618 | $ | (97,910 | ) |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||
Summarized Stock Option Activity | ' | ||||||||
The following table summarizes stock option activity for the nine months ended March 31, 2014 and 2013: | |||||||||
Weighted | Weighted | ||||||||
Weighted | Average | Average | |||||||
average | Remaining | Aggregate | Grant | ||||||
exercise | Contractual | Intrinsic | Date Fair | ||||||
Number of | price | Term | Value | Value | |||||
shares | ($) | (in years) | ($' 000) | ($) | |||||
Outstanding – June 30, 2013 | 2,648,583 | 15.15 | 5.98 | 313 | |||||
Granted under Plan: August | |||||||||
2013 | 224,896 | 7.35 | 10 | 568 | 2.53 | ||||
Exercised | (10,000 | ) | 8.75 | 12 | |||||
Forfeited | (136,420 | ) | 23.51 | ||||||
Outstanding – March 31, | |||||||||
2014 | 2,727,059 | 14.12 | 5.63 | 2,290 | |||||
Outstanding – June 30, 2012 | 2,247,583 | 16.28 | 6.43 | 602 | |||||
Granted under Plan: August | |||||||||
2012 | 431,000 | 8.75 | 10 | 1,249 | 2.9 | ||||
Exercised | (30,000 | ) | 7.98 | 24 | |||||
Outstanding – March 31, | |||||||||
2013 | 2,648,583 | 15.15 | 6.74 | 978 | |||||
The following table presents stock options vesting and expecting to vest as of March 31, 2014: | |||||||||
Weighted | |||||||||
Weighted | Average | ||||||||
average | Remaining | Aggregate | |||||||
exercise | Contractual | Intrinsic | |||||||
Number of | price | Term | Value | ||||||
shares | ($) | (in years) | ($' 000) | ||||||
Vested and expecting to vest | |||||||||
– March 31, 2014 | 2,727,059 | 14.12 | 5.63 | 2,290 | |||||
These options have an exercise price range of $6.59 to $24.46. | |||||||||
Weighted | |||||||||
Average | |||||||||
Weighted | Remaining | Aggregate | |||||||
average | Contractual | Intrinsic | |||||||
Number of | exercise | Term | Value | ||||||
shares | price ($) | (in years) | ($' 000) | ||||||
Exercisable | 1,998,497 | $ | 16.08 | 4.8 | $ | 1,057 | |||
Range Of Assumptions Used To Value Options Granted | ' | ||||||||
Three and nine months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Expected volatility | 50 | % | 49 | % | |||||
Expected dividends | 0 | % | 0 | % | |||||
Expected life (in years) | 3 | 3 | |||||||
Risk-free rate | 0.9 | % | 0.3 | % | |||||
Restricted Stock Activity | ' | ||||||||
Weighted | |||||||||
Number of | Average | ||||||||
Shares of | Grant Date | ||||||||
Restricted | Fair Value | ||||||||
Stock | ($' 000) | ||||||||
Non-vested – June 30, 2013 | 405,226 | 4,393 | |||||||
Granted – August 2013 | 187,963 | 1,382 | |||||||
Vested – August 2013 | (16,907 | ) | 161 | ||||||
Vested – February 2014 | (183,333 | ) | 1,742 | ||||||
Forfeitures – October 2013 | (7,171 | ) | 84 | ||||||
Non-vested – March 31, 2014 | 385,778 | 3,534 | |||||||
Non-vested – June 30, 2012 | 646,617 | 7,061 | |||||||
Granted – August 2012 | 21,569 | 189 | |||||||
Granted – February 2013 | (183,333 | ) | 1,016 | ||||||
Vested – August 2012 | (23,436 | ) | 216 | ||||||
Non-vested – March 31, 2013 | 461,417 | 4,988 | |||||||
Recorded Net Stock Compensation Charge | ' | ||||||||
: | |||||||||
Allocated to cost | |||||||||
of goods sold, IT | Allocated to | ||||||||
processing, | selling, general | ||||||||
Total | servicing and | and | |||||||
charge | support | administration | |||||||
Three months ended March 31, 2014 | |||||||||
Stock-based compensation charge | $ | 922 | - | $ | 922 | ||||
Total – three months ended March 31, 2014 | $ | 922 | $ | - | $ | 922 | |||
Three months ended March 31, 2013 | |||||||||
Stock-based compensation charge | $ | 1,092 | $ | - | $ | 1,092 | |||
Total – three months ended March 31, 2013 | $ | 1,092 | $ | - | $ | 1,092 | |||
Allocated to cost | |||||||||
of goods sold, IT | Allocated to | ||||||||
processing, | selling, general | ||||||||
Total | servicing and | and | |||||||
charge | support | administration | |||||||
Nine months ended March 31, 2014 | |||||||||
Stock-based compensation charge | $ | 2,826 | $ | $- | $ | 2,826 | |||
Reversal of stock compensation charge related to | |||||||||
restricted stock forfeited | (6 | ) | - | (6 | ) | ||||
Total – nine months ended March 31, 2014 | $ | 2,820 | $ | $- | $ | 2,820 | |||
Nine months ended March 31, 2013 | |||||||||
Stock-based compensation charge | $ | 3,325 | $ | - | $ | 3,325 | |||
Total – nine months ended March 31, 2013 | $ | 3,325 | $ | $- | $ | 3,325 | |||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Basic And Diluted Earnings Per Share | ' | ||||||||||||
Three months ended | Nine months ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(in thousands except percent | (in thousands except percent | ||||||||||||
and | and | ||||||||||||
per share data) | per share data) | ||||||||||||
Numerator: | |||||||||||||
Net income (loss) attributable to Net1 | $ | 17,182 | $ | (4,681 | ) | $ | 41,527 | $ | 4,692 | ||||
Undistributed earnings (loss) | 17,182 | (4,681 | ) | 41,527 | 4,692 | ||||||||
Percent allocated to common shareholders | |||||||||||||
(Calculation 1) | 99 | % | 99 | % | 99 | % | 99 | % | |||||
Numerator for earnings (loss) per share: | |||||||||||||
basic and diluted | $ | 16,944 | $ | (4,634 | ) | $ | 40,917 | $ | 4,637 | ||||
Denominator: | |||||||||||||
Denominator for basic earnings per share: | |||||||||||||
weighted-average common shares | |||||||||||||
outstanding | 45,142 | 45,098 | 45,070 | 45,018 | |||||||||
Effect of dilutive securities: | |||||||||||||
Performance shares related to | |||||||||||||
acquisition | - | 16 | - | 5 | |||||||||
Stock options | 91 | 26 | 106 | 37 | |||||||||
Denominator for diluted earnings per | |||||||||||||
share: adjusted weighted average | |||||||||||||
common shares outstanding and | |||||||||||||
assumed conversion | 45,233 | 45,140 | 45,176 | 45,060 | |||||||||
Earnings (loss) per share: | |||||||||||||
Basic | $ | 0.38 | $ | (0.10 | ) | $ | 0.91 | $ | 0.1 | ||||
Diluted | $ | 0.37 | $ | (0.10 | ) | $ | 0.9 | $ | 0.1 | ||||
(Calculation 1) | |||||||||||||
Basic weighted-average common shares | |||||||||||||
outstanding (A) | 45,142 | 45,098 | 45,070 | 45,018 | |||||||||
Basic weighted-average common shares | |||||||||||||
outstanding and unvested restricted shares | |||||||||||||
expected to vest (B) | 45,776 | 45,557 | 45,742 | 45,552 | |||||||||
Percent allocated to common shareholders | |||||||||||||
(A) / (B) | 99 | % | 99 | % | 99 | % | 99 | % |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Supplemental Cash Flow Information [Abstract] | ' | ||||||||
Schedule Of Supplemental Cash Flow Disclosures | ' | ||||||||
Three months ended | Nine months ended | ||||||||
March 31, | March 31, | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Cash received from interest | $ | 3,422 | $ | 2,395 | $ | 9,886 | $ | 8,104 | |
Cash paid for interest | $ | 1,651 | $ | 2,020 | $ | 5,317 | $ | 6,073 | |
Cash paid for income taxes | $ | 1,570 | $ | 1,701 | $ | 16,097 | $ | 12,180 |
Operating_Segments_Tables
Operating Segments (Tables) | 9 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Operating Segments [Abstract] | ' | ||||||||||||
Summary Of Segment Information | ' | ||||||||||||
Three months ended | Nine months ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Revenues from external customers | |||||||||||||
SA transaction-based activities | $ | 64,864 | $ | 59,009 | $ | 200,133 | $ | 181,137 | |||||
International transaction-based activities | 34,994 | 33,119 | 109,099 | 97,881 | |||||||||
Smart card accounts | 10,612 | 8,657 | 33,178 | 25,240 | |||||||||
Financial services | 11,099 | 1,651 | 19,725 | 4,483 | |||||||||
Hardware, software and related technology sales | 16,557 | 8,705 | 36,768 | 25,524 | |||||||||
Total | 138,126 | 111,141 | 398,903 | 334,265 | |||||||||
Inter-company revenues | |||||||||||||
SA transaction-based activities | 3,433 | 1,492 | 8,665 | 9,360 | |||||||||
International transaction-based activities | - | - | - | - | |||||||||
Smart card accounts | - | - | - | - | |||||||||
Financial services | 259 | 308 | 784 | 1,095 | |||||||||
Hardware, software and related technology sales | 76 | 135 | 595 | 722 | |||||||||
Total | 3,768 | 1,935 | 10,044 | 11,177 | |||||||||
Operating income (loss) | |||||||||||||
SA transaction-based activities | 11,145 | (4,197 | ) | 37,825 | 4,136 | ||||||||
International transaction-based activities | 1,322 | (1,362 | ) | 4,738 | (1,331 | ) | |||||||
Smart card accounts | 3,025 | 2,467 | 9,456 | 7,194 | |||||||||
Financial services | 5,119 | 1,147 | 6,902 | 3,292 | |||||||||
Hardware, software and related technology sales | 4,000 | 1,699 | 8,540 | 4,478 | |||||||||
Subtotal: Operating segments | 24,611 | (246 | ) | 67,461 | 17,769 | ||||||||
Corporate/Eliminations | (662 | ) | (4,480 | ) | (8,310 | ) | (8,198 | ) | |||||
Total | 23,949 | (4,726 | ) | 59,151 | 9,571 | ||||||||
Interest income | |||||||||||||
SA transaction-based activities | - | - | - | - | |||||||||
International transaction-based activities | - | - | - | - | |||||||||
Smart card accounts | - | - | - | - | |||||||||
Financial services | - | - | - | - | |||||||||
Hardware, software and related technology sales | - | - | - | - | |||||||||
Subtotal: Operating segments | - | - | - | - | |||||||||
Corporate/Eliminations | 3,438 | 2,515 | 9,993 | 8,195 | |||||||||
Total | $ | 3,438 | $ | 2,515 | $ | 9,993 | 8,195 | ||||||
Interest expense | |||||||||||||
SA transaction-based activities | $ | 28 | $ | 244 | $ | 71 | $ | 589 | |||||
International transaction-based activities | 2 | - | 46 | - | |||||||||
Smart card accounts | - | - | - | - | |||||||||
Financial services | 418 | - | 807 | - | |||||||||
Hardware, software and related technology sales | 181 | 81 | 540 | 207 | |||||||||
Subtotal: Operating segments | 629 | 325 | 1,464 | 796 | |||||||||
Corporate/Eliminations | 1,105 | 1,698 | 4,248 | 5,321 | |||||||||
Total | 1,734 | 2,023 | 5,712 | 6,117 | |||||||||
Depreciation and amortization | |||||||||||||
SA transaction-based activities | 2,895 | 3,198 | 7,827 | 9,628 | |||||||||
International transaction-based activities | 7,364 | 7,049 | 21,834 | 20,753 | |||||||||
Smart card accounts | - | - | - | - | |||||||||
Financial services | 115 | 163 | 348 | 347 | |||||||||
Hardware, software and related technology sales | 68 | 150 | 236 | 323 | |||||||||
Subtotal: Operating segments | 10,442 | 10,560 | 30,245 | 31,051 | |||||||||
Corporate/Eliminations | - | - | - | - | |||||||||
Total | 10,442 | 10,560 | 30,245 | 31,051 | |||||||||
Income taxation expense (benefit) | |||||||||||||
SA transaction-based activities | 3,113 | (1,245 | ) | 10,571 | 991 | ||||||||
International transaction-based activities | 17 | (587 | ) | 661 | (1,167 | ) | |||||||
Smart card accounts | 848 | 691 | 2,647 | 2,014 | |||||||||
Financial services | 1,320 | 327 | 1,723 | 937 | |||||||||
Hardware, software and related technology sales | 1,095 | 409 | 2,097 | 1,039 | |||||||||
Subtotal: Operating segments | 6,393 | (405 | ) | 17,699 | 3,814 | ||||||||
Corporate/Eliminations | 2,142 | 877 | 4,420 | 3,358 | |||||||||
Total | 8,535 | 472 | 22,119 | 7,172 | |||||||||
Net income (loss) attributable to Net1 | |||||||||||||
SA transaction-based activities | 8,003 | (3,199 | ) | 27,182 | 2,552 | ||||||||
International transaction-based activities | 1,591 | (642 | ) | 4,577 | 193 | ||||||||
Smart card accounts | 2,177 | 1,776 | 6,808 | 5,178 | |||||||||
Financial services | 3,394 | 839 | 4,432 | 2,409 | |||||||||
Hardware, software and related technology sales | 2,729 | 1,210 | 5,912 | 3,239 | |||||||||
Subtotal: Operating segments | 17,894 | (16 | ) | 48,911 | 13,571 | ||||||||
Corporate/Eliminations | (712 | ) | (4,665 | ) | (7,384 | ) | (8,879 | ) | |||||
Total | 17,182 | (4,681 | ) | 41,527 | 4,692 | ||||||||
Expenditures for long-lived assets | |||||||||||||
SA transaction-based activities | 302 | 2,583 | 2,601 | 7,552 | |||||||||
International transaction-based activities | 4,231 | 2,074 | 13,744 | 8,844 | |||||||||
Smart card accounts | - | - | - | - | |||||||||
Financial services | 222 | 357 | 408 | 629 | |||||||||
Hardware, software and related technology sales | 93 | 39 | 556 | 78 | |||||||||
Subtotal: Operating segments | 4,848 | 5,053 | 17,309 | 17,103 | |||||||||
Corporate/Eliminations | - | - | - | - | |||||||||
Total | $ | 4,848 | $ | 5,053 | $ | 17,309 | $ | 17,103 |
Inventory_Details
Inventory (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 | |
In Thousands, unless otherwise specified | |||
Inventory [Abstract] | ' | ' | |
Finished goods | $10,491 | $12,222 | |
Inventory | $10,491 | $12,222 | [1] |
[1] | Derived from audited financial statements |
Fair_Value_Of_Financial_Instru2
Fair Value Of Financial Instruments And Equity-Accounted Investments (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Significant fluctuation of US Dollar to ZAR exchange rate, in years | ' | ' | '2 years | ' |
Transfers in or out of Level 3 | $0 | $0 | $0 | $0 |
Impairment charges | 0 | 0 | 0 | 0 |
Nonrecurring [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Liabilities | $0 | ' | $0 | ' |
Finbond [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Equity method investment, shares | 156,788,712 | ' | 156,788,712 | ' |
Fair value of securities representing percentage of total assets, percent | 1.00% | ' | 1.00% | ' |
Fair_Value_Of_Financial_Instru3
Fair Value Of Financial Instruments And Equity-Accounted Investments (Outstanding Foreign Exchange Contracts) (Details) | 12 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
USD ($) | Forward Contracts One [Member] | Forward Contracts One [Member] | Forward Contracts Two [Member] | Forward Contracts Two [Member] | Forward Contracts Three [Member] | Forward Contracts Three [Member] | Forward Contracts Four [Member] | Forward Contracts Four [Member] | Forward Contracts Five [Member] | Forward Contracts Five [Member] | Forward Contracts Six [Member] | Forward Contracts Six [Member] | Forward Contracts Seven [Member] | Forward Contracts Seven [Member] | Forward Contracts Eight [Member] | Forward Contracts Eight [Member] | Forward Contracts Nine [Member] | Forward Contracts Nine [Member] | Forward Contracts Ten [Member] | Forward Contracts Ten [Member] | Forward Contracts Eleven [Member] | Forward Contracts Eleven [Member] | Forward Contracts Twelve [Member] | Forward Contracts Twelve [Member] | Forward Contracts Thirteen [Member] | Forward Contracts Thirteen [Member] | Forward Contracts Fourteen [Member] | Forward Contracts Fourteen [Member] | Forward Contracts Fifteen [Member] | Forward Contracts Fifteen [Member] | Forward Contracts Sixteen [Member] | Forward Contracts Sixteen [Member] | Forward Contracts Seventeen [Member] | Forward Contracts Seventeen [Member] | Forward Contracts Eighteen [Member] | Forward Contracts Eighteen [Member] | Forward Contracts Nineteen [Member] | Forward Contracts Nineteen [Member] | Forward Contracts Twenty [Member] | Forward Contracts Twenty [Member] | ||
EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | |||||||||||||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount | $4,000,000 | ' | € 192,375,000 | ' | € 192,375,000 | ' | € 192,195,000 | ' | € 192,195,000 | ' | € 180,023,000 | ' | € 180,023,000 | ' | € 182,273,000 | ' | € 182,273,000 | ' | € 180,023,000 | ' | € 180,023,000 | ' | € 180,023,000 | ' | € 180,023,000 | ' | € 181,571,000 | ' | € 181,571,000 | ' | € 180,023,000 | ' | € 180,023,000 | ' | € 180,023,000 | ' | € 180,023,000 | ' | € 174,425,000 | ' | € 174,425,000 | ' |
Strike price (ZAR) | 9.06 | 9.06 | 14.9984 | 14.9984 | 15.1351 | 15.1351 | 15.2014 | 15.2014 | 15.0637 | 15.0637 | 15.275 | 15.275 | 15.1349 | 15.1349 | 15.2077 | 15.2077 | 15.3488 | 15.3488 | 15.4228 | 15.4228 | 15.2819 | 15.2819 | 15.3623 | 15.3623 | 15.5041 | 15.5041 | 15.5739 | 15.5739 | 15.4316 | 15.4316 | 15.6552 | 15.6552 | 15.5136 | 15.5136 | 15.597 | 15.597 | 15.7391 | 15.7391 | 15.8119 | 15.8119 | 15.6729 | 15.6729 |
Fair market value price (ZAR) | 10.1397 | 10.1397 | 14.5664 | 14.5664 | 14.5664 | 14.5664 | 14.629 | 14.629 | 14.629 | 14.629 | 14.7011 | 14.7011 | 14.7011 | 14.7011 | 14.7778 | 14.7778 | 14.7778 | 14.7778 | 14.8537 | 14.8537 | 14.8537 | 14.8537 | 14.9372 | 14.9372 | 14.9372 | 14.9372 | 15.0122 | 15.0122 | 15.0122 | 15.0122 | 15.0976 | 15.0976 | 15.0976 | 15.0976 | 15.1859 | 15.1859 | 15.1859 | 15.1859 | 15.2688 | 15.2688 | 15.2688 | 15.2688 |
Maturity | 30-Sep-13 | 30-Sep-13 | 22-Apr-14 | 22-Apr-14 | 22-Apr-14 | 22-Apr-14 | 20-May-14 | 20-May-14 | 20-May-14 | 20-May-14 | 20-Jun-14 | 20-Jun-14 | 20-Jun-14 | 20-Jun-14 | 21-Jul-14 | 21-Jul-14 | 21-Jul-14 | 21-Jul-14 | 20-Aug-14 | 20-Aug-14 | 20-Aug-14 | 20-Aug-14 | 22-Sep-14 | 22-Sep-14 | 22-Sep-14 | 22-Sep-14 | 20-Oct-14 | 20-Oct-14 | 20-Oct-14 | 20-Oct-14 | 20-Nov-14 | 20-Nov-14 | 20-Nov-14 | 20-Nov-14 | 22-Dec-14 | 22-Dec-14 | 22-Dec-14 | 22-Dec-14 | 20-Jan-15 | 20-Jan-15 | 20-Jan-15 | 20-Jan-15 |
Fair_Value_Of_Financial_Instru4
Fair Value Of Financial Instruments And Equity-Accounted Investments (Fair Value Of Assets And Liabilities Measured On Recurring Basis) (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | $1,778 | $1,833 |
Investments in Finbond (available for sale assets included in other long-term assets) | 7,662 | 8,303 |
Other | 138 | 147 |
Total assets at fair value | 9,578 | 10,283 |
Foreign exchange contracts | 170 | 436 |
Total liabilities at fair value | 170 | 436 |
Quoted Price In Active Markets For Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | 1,778 | 1,833 |
Total assets at fair value | 1,778 | 1,833 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other | 138 | 147 |
Total assets at fair value | 138 | 147 |
Foreign exchange contracts | 170 | 436 |
Total liabilities at fair value | 170 | 436 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments in Finbond (available for sale assets included in other long-term assets) | 7,662 | 8,303 |
Total assets at fair value | $7,662 | $8,303 |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Goodwill And Intangible Assets [Abstract] | ' | ' | ' | ' |
Amortization expense | $4.60 | $4.40 | $12.50 | $14 |
Goodwill_And_Intangible_Assets3
Goodwill And Intangible Assets (Carrying Value Of Goodwill) (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Jun. 30, 2012 | |
Goodwill And Intangible Assets [Abstract] | ' | ' | |
Gross value, Balance as of June 30, 2013 | $218,558 | ' | |
Gross value, Foreign currency adjustment | 6,032 | [1] | ' |
Gross value, Balance as of March 31, 2014 | 224,590 | ' | |
Accumulated impairment, Balance as of June 30, 2013 | -42,752 | ' | |
Accumulated impairment, Foreign currency adjustment | -2,006 | [1] | ' |
Accumulated impairment, Balance as of March 31, 2014 | -44,758 | ' | |
Carrying value, Balance as of June 30, 2013 | 175,806 | [2] | 175,806 |
Carrying value, Foreign currency adjustment | 4,026 | [1] | ' |
Carrying value, Balance as of March 31, 2014 | $179,832 | $175,806 | |
[1] | the foreign currency adjustment represents the effects of the fluctuations between the South African rand and the Korean won, and the US dollar on the carrying value. | ||
[2] | Derived from audited financial statements |
Goodwill_And_Intangible_Assets4
Goodwill And Intangible Assets (Goodwill Allocated To Reportable Segments) (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
In Thousands, unless otherwise specified | ||||
Goodwill [Line Items] | ' | ' | ' | |
Total | $179,832 | $175,806 | [1] | $175,806 |
SA Transaction-Based Activities [Member] | ' | ' | ' | |
Goodwill [Line Items] | ' | ' | ' | |
Total | 28,532 | 30,525 | ' | |
International Transaction-Based Activities [Member] | ' | ' | ' | |
Goodwill [Line Items] | ' | ' | ' | |
Total | 121,656 | 113,972 | ' | |
Smart Card Accounts [Member] | ' | ' | ' | |
Goodwill [Line Items] | ' | ' | ' | |
Total | ' | ' | ' | |
Financial Services [Member] | ' | ' | ' | |
Goodwill [Line Items] | ' | ' | ' | |
Total | ' | ' | ' | |
Hardware, Software And Related Technology Sales [Member] | ' | ' | ' | |
Goodwill [Line Items] | ' | ' | ' | |
Total | $29,644 | $31,309 | ' | |
[1] | Derived from audited financial statements |
Goodwill_And_Intangible_Assets5
Goodwill And Intangible Assets (Carrying Value And Accumulated Amortization Of Intangible Assets) (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 | |
In Thousands, unless otherwise specified | |||
Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Gross carrying value | $145,531 | $141,024 | |
Accumulated amortization | -76,266 | -63,767 | |
Net carrying value | 69,265 | 77,257 | [1] |
Customer Relationships [Member] | ' | ' | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Gross carrying value | 94,309 | 90,469 | |
Accumulated amortization | -37,373 | -29,818 | |
Net carrying value | 56,936 | 60,651 | |
Software And Unpatented Technology [Member] | ' | ' | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Gross carrying value | 35,851 | 34,951 | |
Accumulated amortization | -27,512 | -22,151 | |
Net carrying value | 8,339 | 12,800 | |
FTS Patent [Member] | ' | ' | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Gross carrying value | 3,620 | 3,873 | |
Accumulated amortization | -3,620 | -3,873 | |
Exclusive Licenses [Member] | ' | ' | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Gross carrying value | 4,506 | 4,506 | |
Accumulated amortization | -4,506 | -4,506 | |
Trademarks [Member] | ' | ' | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Gross carrying value | 6,671 | 6,611 | |
Accumulated amortization | -2,681 | -2,805 | |
Net carrying value | 3,990 | 3,806 | |
Customer Database [Member] | ' | ' | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Gross carrying value | 574 | 614 | |
Accumulated amortization | ($574) | ($614) | |
[1] | Derived from audited financial statements |
Goodwill_And_Intangible_Assets6
Goodwill And Intangible Assets (Future Estimated Annual Amortization Expense) (Details) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Goodwill And Intangible Assets [Abstract] | ' |
2014 | $16,229 |
2015 | 15,080 |
2016 | 11,280 |
2017 | 8,958 |
2018 | 8,958 |
Thereafter | $20,671 |
Reinsurance_Assets_And_Policy_2
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts (Narrative) (Details) | 9 Months Ended |
Mar. 31, 2014 | |
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts [Abstract] | ' |
Rate of real return basis, years | '10 years |
Allowance for salary inflation and book shrinkage, per annum, percent | 1.00% |
Reinsurance_Assets_And_Policy_3
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts (Summary Of The Movement In Reinsurance Assets And Policy Holder Liabilities Under Insurance Contracts) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | |
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts [Abstract] | ' | |
Reinsurance assets, Balance as of June 30, 2013 | $19,557 | [1] |
Reinsurance assets, Foreign currency adjustment | -1,276 | [1],[2] |
Reinsurance assets, Balance as of March 31, 2014 | 18,281 | [1] |
Insurance contracts, Balance as of June 30, 2013 | -19,711 | [3] |
Insurance contracts, Foreign currency adjustment | 1,287 | [2],[3] |
Insurance contracts, Balance as of March 31, 2014 | ($18,424) | [3] |
[1] | Included in other long-term assets. | |
[2] | The foreign currency adjustment represents the effects of the fluctuations between the ZAR against the US dollar. | |
[3] | Included in other long-term liabilities. |
Reinsurance_Assets_And_Policy_4
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts (Summary Of Movement In Assets And Policy Holder Liabilities Under Investment Contracts) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | |
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts [Abstract] | ' | |
Assets, Balance as of June 30, 2013 | $953 | [1] |
Assets, Foreign currency adjustment | -62 | [1],[2] |
Assets, Balance as of March 31, 2014 | 891 | [1] |
Investment contracts, Balance as of June 30, 2013 | -953 | [3] |
Investment contracts, Foreign currency adjustment | 62 | [2],[3] |
Investment contracts, Balance as of March 31, 2014 | ($891) | [3] |
[1] | Included in other long-term assets. | |
[2] | The foreign currency adjustment represents the effects of the fluctuations between the ZAR against the US dollar. | |
[3] | Included in other long-term liabilities. |
ShortTerm_Credit_Facility_Deta
Short-Term Credit Facility (Details) | 9 Months Ended | |||||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Nov. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
USD ($) | ZAR | South African Credit Facility [Member] | South African Credit Facility [Member] | South African Credit Facility [Member] | Bank Overdrafts Facility [Member] | Bank Overdrafts Facility [Member] | Derivative Facilities [Member] | Standby Letter of Credit [Member] | Standby Letter of Credit [Member] | Korea, Hana Bank Overdraft Facility [Member] | Korea, Hana Bank Overdraft Facility [Member] | |
USD ($) | ZAR | ZAR | ZAR | ZAR | ZAR | USD ($) | ZAR | USD ($) | KRW | |||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | 500 | 250 | 150 | ' | ' | $9.30 | 10,000 |
Short-term credit facility utilized | $13.50 | 143.1 | $23.60 | 250 | 0 | ' | ' | ' | $13.50 | 143.1 | ' | ' |
Overdraft rate | ' | ' | 7.85% | 7.85% | ' | ' | ' | ' | ' | ' | 4.98% | 4.98% |
Commitment fee percentage | 0.35% | 0.35% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Borrowings_Details
Long-Term Borrowings (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||||||||||||||||||
Oct. 29, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | Oct. 29, 2013 | Oct. 29, 2013 | Mar. 31, 2014 | Oct. 29, 2013 | Oct. 29, 2013 | Oct. 28, 2013 | Oct. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2013 | Mar. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2013 | Mar. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 29, 2013 | Oct. 29, 2013 | Mar. 31, 2014 | Oct. 29, 2012 | Mar. 31, 2014 | |
KRW | USD ($) | USD ($) | USD ($) | USD ($) | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Korean CD Rate [Member] | 2010 Senior Facilities Agreement [Member] | 2010 Senior Facilities Agreement [Member] | 2013 Senior Facilities Agreement [Member] | 2013 Senior Facilities Agreement [Member] | 2013 Senior Facilities Agreement [Member] | Facility A Loan [Member] | Facility A Loan [Member] | Facility A Loan [Member] | Facility B Loan [Member] | Facility B Loan [Member] | Facility B Loan [Member] | Facility C Loan [Member] | Facility C Loan [Member] | Facility C Loan [Member] | Facility A And B Loans [Member] | Facility A And B Loans [Member] | Facility A And C Loans [Member] | Third Scheduled Principal Repayment [Member] | Final Installment [Member] | |
USD ($) | KRW | USD ($) | KRW | USD ($) | KRW | item | KRW | USD ($) | KRW | USD ($) | KRW | USD ($) | KRW | USD ($) | KRW | USD ($) | Facility A Loan [Member] | ||||||||||||
KRW | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured loan facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $70,600,000 | 75,000,000,000 | ' | ' | ' |
Interest expense | ' | 1,100,000 | 3,700,000 | 1,700,000 | 5,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal repayment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 87,000,000 | 92,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,300,000 | ' |
Repayments of long term debt, using cash on hand | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,400,000 | 17,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior secured facilities term, in years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of separate facility agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56,000,000 | 60,000,000,000 | ' | 14,000,000 | 15,000,000,000 | ' | 9,300,000 | 10,000,000,000 | ' | ' | ' | ' | ' |
Proceeds from Lines of Credit | ' | ' | ' | ' | ' | 1,000,000 | 1,100,000,000 | 1,000,000 | 1,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Facilities fees paid | 900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of fees | ' | 100,000 | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Margin added on rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.10% | ' | ' | 2.90% | ' | ' | 3.10% | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.55% | ' | ' | ' | ' | ' | ' | ' | 5.75% | ' | ' |
Interest rate at period end | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.65% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000,000 |
Payment installments beginning period, after initial drawdown | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid facility fees expensed | ' | ' | ' | $400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital_Structure_Narrative_De
Capital Structure (Narrative) (Details) | 9 Months Ended | 9 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 06, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
ZAR | KSNET [Member] | Black Economic Empowerment [Member] | Black Economic Empowerment [Member] | ||
USD ($) | Common Stock [Member] | ||||
ZAR | |||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Number of shares, available for sale | ' | ' | ' | ' | 4,400,000 |
Common stock price per share | ' | ' | ' | ' | 60 |
Calculated percentage of the closing price of common stock | ' | 75.00% | ' | ' | ' |
Loan agreement term, in years | ' | ' | ' | '5 years | ' |
Interest rate at period end | ' | ' | ' | 6.38% | ' |
Basis points added to rate | ' | ' | ' | 3.00% | ' |
Percent of outstanding principal amount due for first and second payments | ' | ' | ' | 10.00% | ' |
Percent of outstanding principal amount due for third and fourth payments | ' | ' | ' | 15.00% | ' |
Share price benchmark, entire outstanding principal amount is required due | 120 | ' | ' | ' | ' |
Failed arbitration, trigger event, days | '7 days | ' | ' | ' | ' |
Period of trading days to the trigger events | '30 days | ' | ' | ' | ' |
Cash paid for capital shares | ' | ' | $2 | ' | ' |
Difference in amount, fair value of consideration paid and non-controlling interest adjustment | ' | ' | $1.50 | ' | ' |
Capital_Structure_Schedule_Of_
Capital Structure (Schedule Of Number Of Shares, Net Of Treasury) (Details) | Mar. 31, 2014 | Mar. 31, 2013 |
Capital Structure [Abstract] | ' | ' |
Number of shares, net of treasury | 45,783,342 | 45,600,471 |
Less: Non-vested equity shares that have not vested as of September 30, 2013 | -385,778 | -461,417 |
Number of shares, net of treasury excluding non-vested equity shares that have not vested | 45,397,564 | 45,139,054 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive (Loss) Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |
Balance as of June 30, 2013 | ' | ($100,858) | [1] | ' |
Movement in foreign currency translation reserve | ' | 2,660 | ' | |
Unrealized loss on asset available for sale, net of tax of $112 | 327 | 288 | 258 | |
Balance as of March 31, 2014 | -97,910 | -97,910 | ' | |
Unrealized loss on asset available for sale, tax | ' | 112 | ' | |
Reclassification from accumulated other comprehensive loss | ' | 0 | 0 | |
Foreign Currency Translation Reserve [Member] | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |
Balance as of June 30, 2013 | ' | -101,188 | ' | |
Movement in foreign currency translation reserve | ' | 2,660 | ' | |
Balance as of March 31, 2014 | -98,528 | -98,528 | ' | |
Net Unrealized Income (Loss) On Assets Available For Sale, Net Of Tax [Member] | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |
Balance as of June 30, 2013 | ' | 330 | ' | |
Unrealized loss on asset available for sale, net of tax of $112 | ' | 288 | ' | |
Balance as of March 31, 2014 | $618 | $618 | ' | |
[1] | Derived from audited financial statements |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Aug. 31, 2013 | Aug. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2014 | Aug. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Feb. 28, 2014 | Oct. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Resigned Non-Employee Director [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility calculation term | ' | ' | ' | ' | '250 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable stock options | ' | ' | 0 | 0 | 358,333 | 244,666 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from exercise of stock options | ' | ' | ' | ' | ' | ' | ' | $200,000 | ' | $100,000 | ' | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Agreed number of accelerated vesting stock | ' | ' | ' | ' | ' | ' | ' | ' | 30,000 | ' | ' | ' | ' | ' | ' | 8,547 | ' | ' | ' | ' |
Exercise of stock option | ' | ' | ' | ' | 88,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercised, shares | ' | ' | ' | ' | 10,000 | 30,000 | ' | 30,000 | ' | 10,000 | 0 | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation charge | ' | ' | 922,000 | 1,092,000 | 2,820,000 | 3,325,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of restricted stock vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,742,000 | ' | 161,000 | 216,000 | 1,700,000 | 1,000,000 | 1,900,000 | 1,200,000 |
Vested stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 183,333 | ' | 16,907 | 23,436 | ' | ' | ' | ' |
Forfeitures, Number of shares | 0 | 0 | ' | ' | 136,420 | ' | ' | ' | ' | ' | ' | ' | ' | 7,171 | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | 1,100,000 | ' | ' | ' | ' | 3,000,000 | ' | 3,000,000 | ' |
Deferred tax asset | ' | ' | $1,500,000 | ' | $1,500,000 | ' | $1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, expected recognition period, years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | '2 years | ' |
StockBased_Compensation_Summar
Stock-Based Compensation (Summarized Stock Option Activity) (Details) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2012 |
Stock-Based Compensation [Abstract] | ' | ' | ' | ' | ' | ' |
Outstanding, Number of shares, Beginning Balance | ' | ' | 2,648,583 | 2,247,583 | 2,247,583 | ' |
Granted under Plan, Number of shares | 224,896 | 431,000 | ' | ' | ' | ' |
Exercised, Number of shares | ' | ' | -10,000 | -30,000 | ' | ' |
Forfeitures, Number of shares | 0 | 0 | -136,420 | ' | ' | ' |
Outstanding, Number of shares, Ending Balance | ' | ' | 2,727,059 | 2,648,583 | 2,648,583 | 2,247,583 |
Outstanding, Weighted average exercise price, Beginning Balance | ' | ' | $15.15 | $16.28 | $16.28 | ' |
Granted under Plan, Weighted average exercise price | $7.35 | $8.75 | ' | ' | ' | ' |
Exercised, Weighted average exercise price | ' | ' | $8.75 | $7.98 | ' | ' |
Forfeitures, Weighted average exercise price | ' | ' | $23.51 | ' | ' | ' |
Outstanding, Weighted average exercise price, Ending Balance | ' | ' | $14.12 | $15.15 | $15.15 | $16.28 |
Outstanding, Weighted Average Remaining Contractual Term (in years), Beginning Balance | ' | ' | '5 years 7 months 17 days | '6 years 8 months 27 days | '5 years 11 months 23 days | '6 years 5 months 5 days |
Granted under Plan, Weighted Average Remaining Contractual Term (in years) | '10 years | '10 years | ' | ' | ' | ' |
Outstanding, Weighted Average Remaining Contractual Term (in years), Ending Balance | ' | ' | '5 years 7 months 17 days | '6 years 8 months 27 days | '5 years 11 months 23 days | '6 years 5 months 5 days |
Outstanding, Aggregate Intrinsic Value, Beginning Balance | ' | ' | $313 | $602 | $602 | ' |
Granted under Plan, Aggregate Intrinsic Value | 568 | 1,249 | ' | ' | ' | ' |
Exercised, Aggregate Intrinsic Value | ' | ' | 12 | 24 | ' | ' |
Outstanding, Aggregate Intrinsic Value, Ending Balance | ' | ' | 2,290 | 978 | 313 | 602 |
Granted under Plan, Weighted Average Grant Date Fair Value | $2.53 | $2.90 | ' | ' | ' | ' |
Options exercise price range, lower limit | ' | ' | $6.59 | ' | ' | ' |
Options exercise price range, upper limit | ' | ' | $24.46 | ' | ' | ' |
Vested and expected to vest, Number of shares | ' | ' | 2,727,059 | ' | ' | ' |
Vested and expecting to vest, Weighted average exercise price | ' | ' | $14.12 | ' | ' | ' |
Vested and expecting to vest, Weighted Average Remaining Contractual Term (in years) | ' | ' | '5 years 7 months 17 days | ' | ' | ' |
Vested and expected to vest, Aggregate Intrinsic Value | ' | ' | 2,290 | ' | ' | ' |
Exercisable, Number of Shares | ' | ' | 1,998,497 | ' | ' | ' |
Exercisable, Weighted average exercise price | ' | ' | $16.08 | ' | ' | ' |
Exercisable, Weighted Average Remaining Contractual Term (in years) | ' | ' | '4 years 9 months 18 days | ' | ' | ' |
Exercisable, Aggregate Intrinsic Value | ' | ' | $1,057 | ' | ' | ' |
StockBased_Compensation_Range_
Stock-Based Compensation (Range Of Assumptions Used To Value Options Granted) (Details) | 9 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Stock-Based Compensation [Abstract] | ' | ' |
Expected volatility | 50.00% | 49.00% |
Expected dividends | 0.00% | 0.00% |
Expected life (in years) | '3 years | '3 years |
Risk-free rate | 0.90% | 0.30% |
StockBased_Compensation_Restri
Stock-Based Compensation (Restricted Stock Activity) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2014 | Oct. 31, 2013 | Aug. 31, 2013 | Feb. 28, 2013 | Aug. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeitures, Number of shares | ' | ' | 0 | ' | 0 | ' | ' | -136,420 | ' |
Non-vested, Number of Shares of Restricted Stock, Ending Balance | ' | ' | ' | ' | ' | 385,778 | 461,417 | 385,778 | 461,417 |
Restricted Stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested, Number of Shares of Restricted Stock, Beginning Balance | ' | ' | ' | ' | ' | ' | ' | 405,226 | 646,617 |
Granted, Number of Shares of Restricted Stock | ' | ' | 187,963 | -183,333 | 21,569 | ' | ' | ' | ' |
Vested, Number of Shares of Restricted Stock | -183,333 | ' | -16,907 | ' | -23,436 | ' | ' | ' | ' |
Forfeitures, Number of shares | ' | -7,171 | ' | ' | ' | ' | ' | ' | ' |
Non-vested, Number of Shares of Restricted Stock, Ending Balance | ' | ' | ' | ' | ' | 385,778 | 461,417 | 385,778 | 461,417 |
Non-vested, Weighted Average Grant Date Fair Value, Beginning Balance | ' | ' | ' | ' | ' | ' | ' | $4,393 | $7,061 |
Granted, Weighted Average Grant Date Fair Value | ' | ' | 1,382 | 1,016 | 189 | ' | ' | ' | ' |
Vested, Weighted Average Grant Date Fair Value | 1,742 | ' | 161 | ' | 216 | 1,700 | 1,000 | 1,900 | 1,200 |
Forfeitures, Weighted Average Grant Date Fair Value | ' | 84 | ' | ' | ' | ' | ' | ' | ' |
Non-vested, Weighted Average Grant Date Fair Value, Ending Balance | ' | ' | ' | ' | ' | $3,534 | $4,988 | $3,534 | $4,988 |
StockBased_Compensation_Record
Stock-Based Compensation (Recorded Net Stock Compensation Charge) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation charge | $922 | $1,092 | $2,826 | $3,325 |
Reversal of stock compensation charge related to restricted stock forfeited | ' | ' | -6 | ' |
Total | 922 | 1,092 | 2,820 | 3,325 |
Allocated To Cost Of Goods Sold, IT Processing, Servicing And Support [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation charge | ' | ' | ' | ' |
Total | ' | ' | ' | ' |
Allocated To Selling, General And Administration [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation charge | 922 | 1,092 | 2,826 | 3,325 |
Reversal of stock compensation charge related to restricted stock forfeited | ' | ' | -6 | ' |
Total | $922 | $1,092 | $2,820 | $3,325 |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2014 | Mar. 31, 2014 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' |
Options exercise price range, lower limit | ' | $6.59 |
Options exercise price range, upper limit | ' | $24.46 |
Stock Options [Member] | ' | ' |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' |
Number of options to purchase common stock | 2,040,339 | 2,040,339 |
Options exercise price range, lower limit | $7.35 | $7.35 |
Options exercise price range, upper limit | $24.46 | $24.46 |
Earnings_Per_Share_Basic_And_D
Earnings Per Share (Basic And Diluted Earnings Per Share) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income (loss) attributable to Net 1 | $17,182 | ($4,681) | $41,527 | $4,692 |
Undistributed earnings (loss) | 17,182 | -4,681 | 41,527 | 4,692 |
Percent allocated to common shareholders (Calculation 1) | 99.00% | 99.00% | 99.00% | 99.00% |
Numerator for earnings (loss) per share: basic and diluted | $16,944 | ($4,634) | $40,917 | $4,637 |
Weighted-average common shares outstanding | 45,142 | 45,098 | 45,070 | 45,018 |
Effect of dilutive securities: Performance shares related to acquisitions | ' | 16 | ' | 5 |
Effect of dilutive securities: Stock options | 91 | 26 | 106 | 37 |
Weighted average number of outstanding shares of common stock - diluted | 45,233 | 45,140 | 45,176 | 45,060 |
Basic | $0.38 | ($0.10) | $0.91 | $0.10 |
Diluted | $0.37 | ($0.10) | $0.90 | $0.10 |
Basic weighted-average common shares outstanding and unvested restricted shares expected to vest (B) | 45,776 | 45,557 | 45,742 | 45,552 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Supplemental Cash Flow Information [Abstract] | ' | ' | ' | ' |
Cash received from interest | $3,422 | $2,395 | $9,886 | $8,104 |
Cash paid for interest | 1,651 | 2,020 | 5,317 | 6,073 |
Cash paid for income taxes | $1,570 | $1,701 | $16,097 | $12,180 |
Operating_Segments_Details
Operating Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues from external customers | $138,126 | $111,141 | $398,903 | $334,265 |
Inter-company revenues | 3,768 | 1,935 | 10,044 | 11,177 |
Operating income (loss) | 23,949 | -4,726 | 59,151 | 9,571 |
Interest income | 3,438 | 2,515 | 9,993 | 8,195 |
Interest expense | 1,734 | 2,023 | 5,712 | 6,117 |
Depreciation and amortization | 10,442 | 10,560 | 30,245 | 31,051 |
Income taxation expense (benefit) | 8,535 | 472 | 22,119 | 7,172 |
Net income (loss) attributable to Net 1 | 17,182 | -4,681 | 41,527 | 4,692 |
Expenditures for long-lived assets | 4,848 | 5,053 | 17,309 | 17,103 |
SA Transaction-Based Activities [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues from external customers | 64,864 | 59,009 | 200,133 | 181,137 |
Inter-company revenues | 3,433 | 1,492 | 8,665 | 9,360 |
Operating income (loss) | 11,145 | -4,197 | 37,825 | 4,136 |
Interest income | ' | ' | ' | ' |
Interest expense | 28 | 244 | 71 | 589 |
Depreciation and amortization | 2,895 | 3,198 | 7,827 | 9,628 |
Income taxation expense (benefit) | 3,113 | -1,245 | 10,571 | 991 |
Net income (loss) attributable to Net 1 | 8,003 | -3,199 | 27,182 | 2,552 |
Expenditures for long-lived assets | 302 | 2,583 | 2,601 | 7,552 |
International Transaction-Based Activities [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues from external customers | 34,994 | 33,119 | 109,099 | 97,881 |
Inter-company revenues | ' | ' | ' | ' |
Operating income (loss) | 1,322 | -1,362 | 4,738 | -1,331 |
Interest income | ' | ' | ' | ' |
Interest expense | 2 | ' | 46 | ' |
Depreciation and amortization | 7,364 | 7,049 | 21,834 | 20,753 |
Income taxation expense (benefit) | 17 | -587 | 661 | -1,167 |
Net income (loss) attributable to Net 1 | 1,591 | -642 | 4,577 | 193 |
Expenditures for long-lived assets | 4,231 | 2,074 | 13,744 | 8,844 |
Smart Card Accounts [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues from external customers | 10,612 | 8,657 | 33,178 | 25,240 |
Inter-company revenues | ' | ' | ' | ' |
Operating income (loss) | 3,025 | 2,467 | 9,456 | 7,194 |
Interest income | ' | ' | ' | ' |
Interest expense | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' |
Income taxation expense (benefit) | 848 | 691 | 2,647 | 2,014 |
Net income (loss) attributable to Net 1 | 2,177 | 1,776 | 6,808 | 5,178 |
Expenditures for long-lived assets | ' | ' | ' | ' |
Financial Services [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues from external customers | 11,099 | 1,651 | 19,725 | 4,483 |
Inter-company revenues | 259 | 308 | 784 | 1,095 |
Operating income (loss) | 5,119 | 1,147 | 6,902 | 3,292 |
Interest income | ' | ' | ' | ' |
Interest expense | 418 | ' | 807 | ' |
Depreciation and amortization | 115 | 163 | 348 | 347 |
Income taxation expense (benefit) | 1,320 | 327 | 1,723 | 937 |
Net income (loss) attributable to Net 1 | 3,394 | 839 | 4,432 | 2,409 |
Expenditures for long-lived assets | 222 | 357 | 408 | 629 |
Hardware, Software And Related Technology Sales [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues from external customers | 16,557 | 8,705 | 36,768 | 25,524 |
Inter-company revenues | 76 | 135 | 595 | 722 |
Operating income (loss) | 4,000 | 1,699 | 8,540 | 4,478 |
Interest income | ' | ' | ' | ' |
Interest expense | 181 | 81 | 540 | 207 |
Depreciation and amortization | 68 | 150 | 236 | 323 |
Income taxation expense (benefit) | 1,095 | 409 | 2,097 | 1,039 |
Net income (loss) attributable to Net 1 | 2,729 | 1,210 | 5,912 | 3,239 |
Expenditures for long-lived assets | 93 | 39 | 556 | 78 |
Subtotal: Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income (loss) | 24,611 | -246 | 67,461 | 17,769 |
Interest income | ' | ' | ' | ' |
Interest expense | 629 | 325 | 1,464 | 796 |
Depreciation and amortization | 10,442 | 10,560 | 30,245 | 31,051 |
Income taxation expense (benefit) | 6,393 | -405 | 17,699 | 3,814 |
Net income (loss) attributable to Net 1 | 17,894 | -16 | 48,911 | 13,571 |
Expenditures for long-lived assets | 4,848 | 5,053 | 17,309 | 17,103 |
Corporate/Eliminations [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income (loss) | -662 | -4,480 | -8,310 | -8,198 |
Interest income | 3,438 | 2,515 | 9,993 | 8,195 |
Interest expense | 1,105 | 1,698 | 4,248 | 5,321 |
Depreciation and amortization | ' | ' | ' | ' |
Income taxation expense (benefit) | 2,142 | 877 | 4,420 | 3,358 |
Net income (loss) attributable to Net 1 | -712 | -4,665 | -7,384 | -8,879 |
Expenditures for long-lived assets | ' | ' | ' | ' |
Income_Tax_Details
Income Tax (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Income Tax [Abstract] | ' | ' | ' | ' |
Effective tax rate | 33.30% | -11.10% | 34.90% | 61.60% |
Accrued interest related to uncertain tax positions | $0.20 | ' | $0.20 | ' |
Commitments_And_Contingencies_
Commitments And Contingencies (Details) | 9 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
USD ($) | ZAR | Guarantee [Member] | |
Guarantor Obligations [Line Items] | ' | ' | ' |
Charge rate, minimum | ' | ' | 0.20% |
Charge rate, maximum | ' | ' | 2.00% |
Short-term credit facility utilized | $13.50 | 143.1 | ' |
Maximum payment amount under guarantee | $13.50 | 143.1 | ' |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member]) | 1 Months Ended |
Apr. 17, 2014 | |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Period which a new tender process is initiated, in days | '30 days |
Tender award period, in years | '5 years |
Suspension period if tender is not awarded, in years | '5 years |