Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Mar. 31, 2015 | 5-May-15 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | NET 1 UEPS TECHNOLOGIES INC | |
Entity Central Index Key | 1041514 | |
Current Fiscal Year End Date | -24 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 46,607,153 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Jun. 30, 2014 | |
In Thousands, unless otherwise specified | |||
CURRENT ASSETS | |||
Cash and cash equivalents | $111,002 | $58,672 | [1] |
Pre-funded social welfare grants receivable (Note 2) | 2,853 | 4,809 | [1] |
Accounts receivable, net of allowances of - March: $2,347; June: $1,313 | 136,520 | 148,067 | [1] |
Finance loans receivable, net of allowances of - March: $4,707; June: $3,083 | 44,935 | 53,124 | [1] |
Inventory (Note 3) | 12,095 | 10,785 | [1] |
Deferred income taxes | 6,828 | 7,451 | [1] |
Total current assets before settlement assets | 314,233 | 282,908 | [1] |
Settlement assets (Note 4) | 651,615 | 725,987 | [1] |
Total current assets | 965,848 | 1,008,895 | [1] |
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of - March: $98,213; June: $91,422 | 48,395 | 47,797 | [1] |
EQUITY-ACCOUNTED INVESTMENTS | 930 | 878 | [1] |
GOODWILL (Note 6) | 169,433 | 186,576 | [1] |
INTANGIBLE ASSETS, net (Note 6) | 51,665 | 68,514 | [1] |
OTHER LONG-TERM ASSETS, including reinsurance assets (Note 5 and Note 7) | 35,781 | 38,285 | [1] |
TOTAL ASSETS | 1,272,052 | 1,350,945 | [1] |
CURRENT LIABILITIES | |||
Accounts payable | 15,341 | 17,101 | [1] |
Other payables | 41,087 | 42,257 | [1] |
Current portion of long-term borrowings (Note 9) | 14,789 | [1] | |
Income taxes payable | 10,215 | 7,676 | [1] |
Total current liabilities before settlement obligations | 66,643 | 81,823 | [1] |
Settlement obligations (Note 4) | 651,615 | 725,987 | [1] |
Total current liabilities | 718,258 | 807,810 | [1] |
DEFERRED INCOME TAXES | 11,841 | 15,522 | [1] |
LONG-TERM BORROWINGS (Note 9) | 60,027 | 62,388 | [1] |
OTHER LONG-TERM LIABILITIES, including insurance policy liabilities (Note 7) | 20,250 | 23,477 | [1] |
TOTAL LIABILITIES | 810,376 | 909,197 | [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: 46,607,153; June: 47,819,299 | 64 | 63 | [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 | 213,264 | 202,401 | [1] |
TREASURY SHARES, AT COST: March: 18,057,228; June: 15,883,212 | -214,520 | -200,681 | [1] |
ACCUMULATED OTHER COMPREHENSIVE LOSS | -131,415 | -82,741 | [1] |
RETAINED EARNINGS | 593,954 | 522,729 | [1] |
TOTAL NET1 EQUITY | 461,347 | 441,771 | [1] |
NON-CONTROLLING INTEREST | 329 | -23 | [1] |
TOTAL EQUITY | 461,676 | 441,748 | [1] |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $1,272,052 | $1,350,945 | [1] |
[1] | Derived from audited financial statements |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowances for doubtful accounts | $2,347 | $1,313 |
Finance loans receivable, allowance | 4,707 | 3,083 |
Property, plant and equipment, accumulated depreciation | $98,213 | $91,422 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares issued | 46,607,153 | 47,819,299 |
Common stock, shares outstanding | 46,607,153 | 47,819,299 |
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 | 18,057,228 | 15,883,212 |
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, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Consolidated Statements Of Operations [Abstract] | ||||
REVENUE | $151,121 | $138,126 | $461,693 | $398,903 |
EXPENSE | ||||
Cost of goods sold, IT processing, servicing and support | 71,094 | 63,149 | 217,274 | 187,591 |
Selling, general and administration | 38,001 | 40,586 | 118,122 | 121,916 |
Depreciation and amortization | 10,060 | 10,442 | 30,391 | 30,245 |
OPERATING INCOME | 31,966 | 23,949 | 95,906 | 59,151 |
INTEREST INCOME | 4,211 | 3,438 | 11,888 | 9,993 |
INTEREST EXPENSE | 941 | 1,734 | 3,360 | 5,712 |
INCOME BEFORE INCOME TAX EXPENSE | 35,236 | 25,653 | 104,434 | 63,432 |
INCOME TAX EXPENSE (Note 16) | 10,305 | 8,535 | 32,156 | 22,119 |
NET INCOME BEFORE EARNINGS FROM EQUITY-ACCOUNTED INVESTMENTS | 24,931 | 17,118 | 72,278 | 41,313 |
EARNINGS FROM EQUITY-ACCOUNTED INVESTMENTS | 65 | 52 | 233 | 202 |
NET INCOME | 24,996 | 17,170 | 72,511 | 41,515 |
LESS (ADD) NET INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 638 | -12 | 1,690 | -12 |
NET INCOME ATTRIBUTABLE TO NET1 | $24,358 | $17,182 | $70,821 | $41,527 |
Net income per share, in United States dollars (Note 13) | ||||
Basic earnings attributable to Net1 shareholders | $0.52 | $0.38 | $1.51 | $0.91 |
Diluted earnings attributable to Net1 shareholders | $0.52 | $0.37 | $1.51 | $0.90 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||||
Net income | $24,996 | $17,170 | $72,511 | $41,515 |
Other comprehensive income (loss) | ||||
Net unrealized gain on asset available for sale, net of tax | 648 | 327 | 422 | 288 |
Movement in foreign currency translation reserve | -11,596 | -2,134 | -49,182 | 2,838 |
Total other comprehensive (loss) income, net of taxes | -10,948 | -1,807 | -48,760 | 3,126 |
Comprehensive income | 14,048 | 15,363 | 23,751 | 44,641 |
(Less) Add comprehensive (income) loss attributable to non-controlling interest | -601 | 12 | -1,604 | 12 |
Comprehensive income attributable to Net1 | $13,447 | $15,375 | $22,147 | $44,653 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement Of Changes In Equity | Number of Shares, Common Stock [Member] | Treasury Stock [Member] | Number Of Shares, Net Of Treasury [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total Net1 Equity [Member] | Non-Controlling Interest [Member] | Total | Total | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ZAR | |||
Balance at Jun. 30, 2014 | $63,000 | ($200,681,000) | $202,401,000 | $522,729,000 | ($82,741,000) | $441,771,000 | ($23,000) | $441,748,000 | [1] | ||
Treasury Stock, Shares, Beginning Balance at Jun. 30, 2014 | -15,883,212 | -15,883,212 | |||||||||
Balance, shares at Jun. 30, 2014 | 63,702,511 | 47,819,299 | |||||||||
Repurchase of common stock (Note 10) | -9,151,000 | -9,151,000 | -9,151,000 | -97,400,000 | |||||||
Repurchase of common stock, shares (Note 10) | -1,837,432 | -1,837,432 | -1,837,432 | ||||||||
Restricted stock granted, shares (Note 12) | 213,237 | 213,237 | |||||||||
Exercise of stock option (Note 12) | 1,000 | -4,688,000 | 6,467,000 | 1,780,000 | 1,780,000 | ||||||
Exercise of stock option, shares (Note 12) | 748,633 | -336,584 | 412,049 | 748,633 | |||||||
Stock-based compensation charge (Note 12) | 2,682,000 | 2,682,000 | 2,682,000 | ||||||||
Income tax benefit from vested stock awards | 483,000 | 483,000 | 483,000 | ||||||||
Transactions with non-controlling interest (Note 10) | 1,231,000 | 404,000 | 1,635,000 | -228,000 | 1,407,000 | ||||||
Dividends paid to non-controlling interest | -1,024,000 | -1,024,000 | |||||||||
Net income | 70,821,000 | 70,821,000 | 1,690,000 | 72,511,000 | |||||||
Other comprehensive loss (Note 11) | -48,674,000 | -48,674,000 | -86,000 | -48,760,000 | |||||||
Balance at Mar. 31, 2015 | $64,000 | ($214,520,000) | $213,264,000 | $593,954,000 | ($131,415,000) | $461,347,000 | $329,000 | $461,676,000 | |||
Treasury Stock, Shares, Ending Balance at Mar. 31, 2015 | -18,057,228 | -18,057,228 | |||||||||
Balance, shares at Mar. 31, 2015 | 64,664,381 | 46,607,153 | 46,607,153 | ||||||||
[1] | Derived from audited financial statements |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||||
Net income | $24,996 | $17,170 | $72,511 | $41,515 |
Depreciation and amortization | 10,060 | 10,442 | 30,391 | 30,245 |
Earnings from equity-accounted investments | -65 | -52 | -233 | -202 |
Fair value adjustments | -449 | 110 | -270 | 49 |
Interest payable | -23 | 30 | 1,276 | 1,696 |
Profit on disposal of property, plant and equipment | -64 | -26 | -295 | -42 |
Stock-based compensation charge | 731 | 922 | 2,682 | 2,820 |
Facility fee amortized | 36 | 79 | 170 | 657 |
Decrease (Increase) in accounts receivable, pre-funded social welfare grants receivable and finance loans receivable | 3,379 | -6,443 | 5,534 | -67,521 |
(Increase) Decrease in inventory | -26 | 2,821 | -2,771 | 979 |
Increase (Decrease) in accounts payables and other payables | 4,735 | 2,656 | -7,654 | -10,895 |
Increase in taxes payable | 7,465 | 8,069 | 4,113 | 9,431 |
Decrease in deferred taxes | -1,467 | -1,141 | -2,025 | -3,019 |
Net cash provided by operating activities | 49,308 | 34,637 | 103,429 | 5,713 |
Cash flows from investing activities | ||||
Capital expenditures | -6,307 | -4,848 | -24,822 | -17,309 |
Proceeds from disposal of property, plant and equipment | 163 | 123 | 777 | 2,124 |
Proceeds from sale of business (Note 14) | 1,895 | |||
(Investment in equity in) Repayment of loan by equity-accounted investment | -25 | -25 | ||
Other investing activities | 571 | -29 | 570 | |
Net change in settlement assets | -188,315 | -277,912 | 10,283 | -21,409 |
Net cash used in investing activities | -194,459 | -282,091 | -11,896 | -36,049 |
Cash flows from financing activities | ||||
Repayment of long-term borrowings (Note 9) | -14,128 | -87,008 | ||
Long-term borrowings utilized | 798 | 1,028 | 2,976 | 72,633 |
Acquisition of treasury stock (Note 10) | -9,151 | |||
Sale of equity to non-controlling interest (Note 10) | 1,407 | |||
Dividends paid to non-controlling interest | -1,024 | -1,024 | ||
Proceeds from issue of common stock | 791 | 88 | 1,780 | 88 |
Payment of facility fee | -872 | |||
Proceeds from bank overdraft | 24,580 | |||
Repayment of bank overdraft | -23,335 | -23,335 | ||
Acquisition of interests in KSNET (Note 10) | -1,968 | |||
Net change in settlement obligations | 188,315 | 277,912 | -10,283 | 21,409 |
Net cash provided (used in) by financing activities | 188,880 | 255,693 | -28,423 | 5,527 |
Effect of exchange rate changes on cash | -3,708 | 274 | -10,780 | 2,019 |
Net increase (decrease) in cash and cash equivalents | 40,021 | 8,513 | 52,330 | -22,790 |
Cash and cash equivalents - beginning of period | 70,981 | 22,362 | 58,672 | 53,665 |
Cash and cash equivalents - end of period | $111,002 | $30,875 | $111,002 | $30,875 |
Basis_of_Presentation_and_Summ
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2015 | |
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, 2015 and 2014, 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 Companys Annual Report on Form 10-K for the fiscal year ended June 30, 2014. 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. | |
Recent accounting pronouncements adopted | |
In March 2013, the FASB issued guidance regarding Parents 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, and is applied prospectively. The adoption of this guidance did not have a material impact on the Companys financial statements. | |
Recent accounting pronouncements not yet adopted as of March 31, 2015 | |
In May 2014, the FASB issued guidance regarding Revenue from Contracts with Customers. This guidance requires an entity to recognize revenue when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for the Company beginning July 1, 2017. Early adoption is not permitted. The Company expects that this guidance will have a material impact on its financial statements and is currently evaluating the impact of this guidance on its financial statements on adoption. | |
In August 2014, the FASB issued guidance regarding Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern. This guidance requires an entity to perform interim and annual assessments of its ability to continue as a going concern within one year of the date that its financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. The guidance is effective for the Company beginning July 1, 2017. Early adoption is permitted. The Company is currently assessing the impact of this guidance on its financial statements disclosure. | |
In February 2015, the FASB issued guidance regarding Amendments to the Consolidation Analysis. This guidance amends both the variable interest entity and voting interest entity consolidation models. The requirement to assess an entity under a different consolidation model may change previous consolidation conclusions. The guidance is effective for the Company beginning July 1, 2016. Early adoption is permitted. The Company is currently assessing the impact of this guidance on its financial statements disclosure. | |
PreFunded_Social_Welfare_Grant
Pre-Funded Social Welfare Grants Receivable | 9 Months Ended |
Mar. 31, 2015 | |
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 2015 payment service commenced on April 1, 2015, but the Company pre-funded certain merchants participating in the merchant acquiring system on the last two days of March 2015. | |
Inventory
Inventory | 9 Months Ended | ||||
Mar. 31, 2015 | |||||
Inventory [Abstract] | |||||
Inventory | 3. Inventory | ||||
The Company's inventory comprised the following categories as of March 31, 2015 and June 30, 2014. | |||||
March 31, | June 30, | ||||
2015 | 2014 | ||||
Finished goods | $ | 12,095 | $ | 10,785 | |
$ | 12,095 | $ | 10,785 | ||
Settlement_Assets_and_Settleme
Settlement Assets and Settlement Obligations | 9 Months Ended |
Mar. 31, 2015 | |
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 recipient cardholders of social welfare grants and (2) 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 recipient cardholders of social welfare grants, and (2) 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 | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Fair Value Of Financial Instruments [Abstract] | |||||||||
Fair Value Of Financial Instruments | 5. Fair value of financial instruments | ||||||||
Initial recognition and measurement | |||||||||
Financial instruments are recognized when the Company becomes a party to the transaction. Initial measurements are at cost, which includes transaction costs. | |||||||||
Risk management | |||||||||
The Company seeks to reduce its exposure to currencies other than the South African Rand ("ZAR") 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 has used 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. | |||||||||
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 three 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. | |||||||||
Financial instruments | |||||||||
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 Johannesburg Stock Exchange ("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. Finbond issues financial products and services under a mutual banking licence and also has a microlending offering. 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, 2015, represented approximately 1% of the Company's total assets, including these securities. The Company expects to hold these securities for an extended period of time and it is not concerned with short-term equity price volatility with respect to these securities provided that the underlying business, economic and management characteristics of the company remain sound. | |||||||||
Derivative transactions - Foreign exchange contracts | |||||||||
As part of the Company's risk management strategy, the Company enters into derivative transactions to mitigate exposures to foreign currencies using foreign exchange contracts. These foreign exchange contracts are over-the-counter derivative transactions. Substantially all of the Company's derivative exposures are with counterparties that have long-term credit ratings of BBB or better. The Company uses quoted prices in active markets for similar assets and liabilities to determine fair value (Level 2). The Company has no derivatives that require fair value measurement under Level 1 or 3 of the fair value hierarchy. | |||||||||
The Company's outstanding foreign exchange contracts are as follows: | |||||||||
As of March 31, 2015 | |||||||||
Fair market | |||||||||
Notional amount | Strike price | value price | Maturity | ||||||
EUR 706,205.00 | ZAR 14.8645 | ZAR 13.0822 | 20-Apr-15 | ||||||
EUR 512,865.00 | ZAR 14.9455 | ZAR 13.1517 | 20-May-15 | ||||||
EUR 526,263.00 | ZAR 15.0345 | ZAR 13.2305 | 22-Jun-15 | ||||||
EUR 526,263.00 | ZAR 15.1145 | ZAR 13.3002 | 20-Jul-15 | ||||||
EUR 526,263.00 | ZAR 15.2025 | ZAR 13.3786 | 20-Aug-15 | ||||||
EUR 526,263.00 | ZAR 15.2944 | ZAR 13.4595 | 21-Sep-15 | ||||||
EUR 526,263.00 | ZAR 15.3809 | ZAR 13.5353 | 20-Oct-15 | ||||||
EUR 509,516.00 | ZAR 15.4728 | ZAR 13.6178 | 20-Nov-15 | ||||||
EUR 529,865.00 | ZAR 15.5654 | ZAR 13.7004 | 21-Dec-15 | ||||||
EUR 526,663.00 | ZAR 15.6625 | ZAR 13.7827 | 20-Jan-16 | ||||||
As of June 30, 2014 | |||||||||
Fair market | |||||||||
Notional amount | Strike price | value price | Maturity | ||||||
EUR 182,272.50 | ZAR 15.2077 | ZAR 14.5803 | 21-Jul-14 | ||||||
EUR 182,272.50 | ZAR 15.3488 | ZAR 14.5803 | 21-Jul-14 | ||||||
EUR 180,022.50 | ZAR 15.4228 | ZAR 14.6542 | 20-Aug-14 | ||||||
EUR 180,022.50 | ZAR 15.2819 | ZAR 14.6542 | 20-Aug-14 | ||||||
EUR 180,022.50 | ZAR 15.3623 | ZAR 14.7367 | 22-Sep-14 | ||||||
EUR 180,022.50 | ZAR 15.5041 | ZAR 14.7367 | 22-Sep-14 | ||||||
EUR 181,570.50 | ZAR 15.5739 | ZAR 14.8119 | 20-Oct-14 | ||||||
EUR 181,570.50 | ZAR 15.4316 | ZAR 14.8119 | 20-Oct-14 | ||||||
EUR 180,022.50 | ZAR 15.6552 | ZAR 14.8982 | 20-Nov-14 | ||||||
EUR 180,022.50 | ZAR 15.5136 | ZAR 14.8982 | 20-Nov-14 | ||||||
EUR 180,022.50 | ZAR 15.5970 | ZAR 14.9874 | 22-Dec-14 | ||||||
EUR 180,022.50 | ZAR 15.7391 | ZAR 14.9874 | 22-Dec-14 | ||||||
EUR 174,424.50 | ZAR 15.8119 | ZAR 15.0671 | 20-Jan-15 | ||||||
EUR 174,424.50 | ZAR 15.6729 | ZAR 15.0671 | 20-Jan-15 | ||||||
The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of March 31, 2015, 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 | $ | 1,643 | $ | - | $ | - | $ | 1,643 | |
Investment in Finbond (available for sale | |||||||||
assets included in other long-term assets) | - | - | 7,608 | 7,608 | |||||
Other | - | 1,300 | - | 1,300 | |||||
Total assets at fair value | $ | 1,643 | $ | 1,300 | $ | 7,608 | $ | 10,551 | |
Liabilities | |||||||||
Foreign exchange contracts | $ | - | $ | 819 | $ | - | $ | 819 | |
Total liabilities at fair value | $ | - | $ | 819 | $ | - | $ | 819 | |
The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of June 30, 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 | $ | 1,800 | $ | - | $ | - | $ | 1,800 | |
Investment in Finbond (available for sale | |||||||||
assets included in other long-term assets) | - | - | 8,068 | 8,068 | |||||
Other | - | 47 | - | 47 | |||||
Total assets at fair value | $ | 1,800 | $ | 47 | $ | 8,068 | $ | 9,915 | |
Liabilities | |||||||||
Foreign exchange contracts | $ | - | $ | 164 | $ | - | $ | 164 | |
Total liabilities at fair value | $ | - | $ | 164 | $ | - | $ | 164 | |
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, 2015 and 2014, respectively. There have been no transfers in or out of Level 3 during the three and nine months ended March 31, 2015 and 2014, 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, Net | 9 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Goodwill And Intangible Assets, Net [Abstract] | |||||||||||||||
Goodwill And Intangible Assets, Net | 6. Goodwill and intangible assets, net | ||||||||||||||
Goodwill | |||||||||||||||
Summarized below is the movement in the carrying value of goodwill for the nine months ended March 31, 2015: | |||||||||||||||
Accumulated | Carrying | ||||||||||||||
Gross value | impairment | value | |||||||||||||
Balance as of June 30, 2014 | $ | 186,576 | $ | - | $ | 186,576 | |||||||||
Foreign currency adjustment (1) | (17,143 | ) | - | (17,143 | ) | ||||||||||
Balance as of March 31, 2015 | $ | 169,433 | $ | 0 | $ | 169,433 | |||||||||
(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 has been allocated to the Company's reportable segments as follows: | |||||||||||||||
As of | As of | ||||||||||||||
March 31, | June 30, | ||||||||||||||
2015 | 2014 | ||||||||||||||
South African transaction processing | $ | 24,974 | $ | 28,517 | |||||||||||
International transaction processing | 117,788 | 128,427 | |||||||||||||
Financial inclusion and applied technologies | 26,671 | 29,632 | |||||||||||||
Total | $ | 169,433 | $ | 186,576 | |||||||||||
Intangible assets, net | |||||||||||||||
Carrying value and amortization of intangible assets | |||||||||||||||
Summarized below is the carrying value and accumulated amortization of the intangible assets as of March 31, 2015 and June 30, 2014: | |||||||||||||||
As of March 31, 2015 | As of June 30, 2014 | ||||||||||||||
Gross | Net | Gross | Net | ||||||||||||
carrying | Accumulated | carrying | carrying | Accumulated | carrying | ||||||||||
value | amortization | value | value | amortization | value | ||||||||||
Finite-lived intangible assets: | |||||||||||||||
Customer relationships | $ | 89,797 | $ | (43,972 | ) | $ | 45,825 | $ | 98,676 | $ | (41,273 | ) | $ | 57,403 | |
Software and unpatented | |||||||||||||||
technology | 30,534 | (27,585 | ) | 2,949 | 33,604 | (26,207 | ) | 7,397 | |||||||
FTS patent | 3,169 | (3,169 | ) | - | 3,619 | (3,619 | ) | - | |||||||
Exclusive licenses | 4,506 | (4,506 | ) | - | 4,506 | (4,506 | ) | - | |||||||
Trademarks | 6,205 | (3,314 | ) | 2,891 | 6,890 | (3,176 | ) | 3,714 | |||||||
Total finite-lived intangible | |||||||||||||||
assets | $ | 134,211 | $ | (82,546 | ) | $ | 51,665 | $ | 147,295 | $ | (78,781 | ) | $ | 68,514 | |
Aggregate amortization expense on the finite-lived intangible assets for the three and nine months ended March 31, 2015, was approximately $3.6 million and $11.3 million, respectively (three and nine months ended March 31, 2014, was approximately $4.6 million and $12.5 million, respectively). | |||||||||||||||
Future estimated annual amortization expense for the next five fiscal years and thereafter, assuming exchange rates prevailing on March 31, 2015, 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. | |||||||||||||||
2015 | $ | 14,446 | |||||||||||||
2016 | 10,800 | ||||||||||||||
2017 | 8,611 | ||||||||||||||
2018 | 8,612 | ||||||||||||||
2019 | 8,293 | ||||||||||||||
Thereafter | $ | 11,507 | |||||||||||||
Reinsurance_Assets_And_Policy_
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts | 9 Months Ended | ||||||
Mar. 31, 2015 | |||||||
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, 2015: | |||||||
Reinsurance | Insurance | ||||||
assets (1) | contracts (2) | ||||||
Balance as of June 30, 2014 | $ | 21,062 | $ | (21,478 | ) | ||
Foreign currency adjustment (3) | (2,617 | ) | 2,668 | ||||
Balance as of March 31, 2015 | $ | 18,445 | $ | (18,810 | ) | ||
(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, 2015: | |||||||
Investment | |||||||
Assets (1) | contracts (2) | ||||||
Balance as of June 30, 2014 | $ | 688 | $ | (688 | ) | ||
Foreign currency adjustment (3) | (85 | ) | 85 | ||||
Balance as of March 31, 2015 | $ | 603 | $ | (603 | ) | ||
(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, 2015 | |
Short-Term Credit Facility [Abstract] | |
Short-Term Credit Facility | 8. Short-term credit facility |
The Company's short-term credit facilities are described in Note 12 to the Company's audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2014. | |
South Africa | |
As of March 31, 2015, and June 30, 2014, the Company had not utilized any of its ZAR 250.0 million ($20.7 million, translated at exchange rates applicable as of March 31, 2015) overdraft facility. As of March 31, 2015, the interest rate on the overdraft facility was 8.10%. At March 31, 2015, the Company had utilized approximately ZAR 137.2 million ($11.3 million, translated at exchange rates applicable as of March 31, 2015) of its ZAR 150 million indirect and derivative facilities to obtain foreign exchange contracts from the bank and 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, 2014, the Company had utilized approximately ZAR 139.0 million ($13.1 million, translated at exchange rates applicable as of June 30, 2014) of its indirect and derivative facilities. | |
Korea | |
The Company had not utilized any of its KRW 10 billion ($9.0 million, translated at exchange rates applicable as of March 31, 2015) overdraft facility as of March 31, 2015 and June 30, 2014. As of March 31, 2015, the interest rate on the overdraft facility was 3.80%. The facility expires in January 2016. | |
LongTerm_Borrowings
Long-Term Borrowings | 9 Months Ended |
Mar. 31, 2015 | |
Long-Term Borrowings [Abstract] | |
Long-Term Borrowings | 9. Long-term borrowings |
The Company's 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, 2014. The current carrying value as of March 31, 2015, is $60.0 million. As of March 31, 2015, the carrying amount of the long-term borrowings approximated fair value. The interest rate in effect on March 31, 2015, was 5.22%. | |
Interest expense incurred during the three and nine months ended March 31, 2015 and 2014, was $0.8 million and $2.2 million; and $1.1 million and $3.7 million, respectively. Prepaid facility fees amortized during the three and nine months ended March 31, 2015 and 2014, was $0.04 million and $0.2 million; and $0.1 million and $0.7 million, respectively. Prepaid facility fees amortized during the nine months ended March 31, 2014, include the remaining prepaid facility fees related to the refinanced facility of approximately $0.4 million that were expensed. | |
The next scheduled principal payment of $9.0 million (translated at exchange rates applicable as of March 31, 2015) will be made on April 29, 2016. | |
Capital_Structure
Capital Structure | 9 Months Ended | ||||
Mar. 31, 2015 | |||||
Capital Structure [Abstract] | |||||
Capital Structure | 10. Capital structure | ||||
The following table presents reconciliation between the number of shares, net of treasury, presented in the unaudited condensed consolidated statement of changes in equity during the nine months ended March 31, 2015 and 2014, 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, 2015 and 2014, respectively: | |||||
2015 | 2014 | ||||
Number of shares, net of treasury: | |||||
Statement of changes in equity | 46,607,153 | 45,783,342 | |||
Less: Non-vested equity shares that have not vested (Note 12) | (341,529 | ) | (385,778 | ) | |
Number of shares, net of treasury excluding non-vested | |||||
equity shares that have not vested | 46,265,624 | 45,397,564 | |||
Common stock repurchases and transaction with non-controlling interests | |||||
The Company did not repurchase any of its shares during the three and nine months ended March 31, 2015 and 2014, under its share repurchase authorization. However, on August 27, 2014, the Company entered into a Subscription and Sale of Shares Agreement with Business Venture Investments No 1567 Proprietary Limited (RF) ("BVI"), one of the Company's BEE partners, in preparation for any new potential SASSA tender. Pursuant to the agreement: (i) the Company repurchased BVI's remaining 1,837,432 shares of the Company's common stock for approximately ZAR 97.4 million in cash ($9.2 million translated at exchange rates prevailing as of August 27, 2014) and (ii) BVI has subscribed for new ordinary shares of Cash Paymaster Services (Pty) Ltd ("CPS") representing approximately 12.5% of CPS' ordinary shares outstanding after the subscription for ZAR 15.0 million in cash (approximately $1.4 million translated at exchange rates prevailing as of August 27, 2014). In connection with transactions described above, the CPS shareholder agreement that was negotiated as part of the original December 2013 Relationship Agreement became effective. | |||||
Acquisition of KSNET non-controlling interests | |||||
During the nine months ended March 31, 2014, 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 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 | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accumulated Other Comprehensive Loss [Abstract] | |||||||||
Accumulated Other Comprehensive Loss | 11. Accumulated other comprehensive loss | ||||||||
The table below presents the change in accumulated other comprehensive (loss) income per component during the nine months ended March 31, 2015: | |||||||||
Nine months ended | |||||||||
31-Mar-15 | |||||||||
Accumulated | |||||||||
Net | |||||||||
unrealized | |||||||||
Accumulated | income (loss) | ||||||||
Foreign | on asset | ||||||||
currency | available for | ||||||||
translation | sale, net of | ||||||||
reserve | tax | Total | |||||||
Balance as of June 30, 2014 | $ | (83,359 | ) | $ | 618 | $ | (82,741 | ) | |
Movement in foreign currency translation reserve | (49,096 | ) | - | (49,096 | ) | ||||
Unrealized gain on asset available for sale, net of tax | |||||||||
of $97 | - | 422 | 422 | ||||||
Balance as of March 31, 2015 | $ | (132,455 | ) | $ | 1,040 | $ | (131,415 | ) | |
There were no reclassifications from accumulated other comprehensive loss to comprehensive (loss) income during the three and nine months ended March 31, 2015 or 2014, respectively. | |||||||||
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, 2015 and 2014: | ||||||||
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, 2014 | 2,710,392 | 14.16 | 5.38 | 3,909 | ||||
Granted under Plan: August | ||||||||
2014 | 464,410 | 11.23 | 10 | 2,113 | 4.55 | |||
Exercised | (748,633 | ) | 8.64 | 3,750 | ||||
Outstanding – March 31, | ||||||||
2015 | 2,426,169 | 15.3 | 4.99 | 4,570 | ||||
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 | ||||
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 on 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 nine months ended March 31, 2015 and 2014: | ||||||||
Nine months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Expected volatility | 60 | % | 50 | % | ||||
Expected dividends | 0 | % | 0 | % | ||||
Expected life (in years) | 3 | 3 | ||||||
Risk-free rate | 1 | % | 0.9 | % | ||||
There were no forfeitures during the three and nine months ended March 31, 2015. During the three and nine months ended March 31, 2014, terminated employees forfeited 136,420 stock options. | ||||||||
The following table presents stock options vested and expecting to vest as of March 31, 2015: | ||||||||
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, 2015 | 2,426,169 | 15.3 | 4.99 | 4,570 | ||||
These options have an exercise price range of $7.35 to $24.46. | ||||||||
The following table presents stock options that are exercisable as of March 31, 2015: | ||||||||
Weighted | ||||||||
Weighted | Average | |||||||
average | Remaining | Aggregate | ||||||
exercise | Contractual | Intrinsic | ||||||
Number of | price | Term | Value | |||||
shares | ($) | (in years) | ($'000) | |||||
Exercisable – March 31, 2015 | 1,668,163 | 17.71 | 3.24 | 1,775 | ||||
No stock options became exercisable during the three months ended March 31, 2015 and 2014, respectively. During the nine months ended March 31, 2015 and 2014, respectively, 330,967 and 358,333 stock options became exercisable. During the three months ended March 31, 2015, the Company received approximately $0.8 million from 60,000 stock options exercised. During the nine months ended March 31, 2015, the Company received approximately $1.8 million from 176,395 stock options exercised. The remaining 572,238 stock options were exercised through recipients delivering 336,584 shares of the Company's common stock to the Company on September 9, 2014, to settle the exercise price due. During the three and nine months ended March 31, 2014, the Company received approximately $0.1 million from 10,000 stock options exercised. The Company issues new shares to satisfy stock option exercises. | ||||||||
Restricted stock | ||||||||
The following table summarizes restricted stock activity for the nine months ended March 31, 2015 and 2014: | ||||||||
Weighted | ||||||||
Number of | Average | |||||||
Shares of | Grant Date | |||||||
Restricted | Fair Value | |||||||
Stock | ($'000) | |||||||
Non-vested – June 30, 2014 | 385,778 | 3,534 | ||||||
Granted – August 2014 | 141,707 | 581 | ||||||
Granted – November 2014 | 71,530 | 229 | ||||||
Vested – August 2014 | (74,152 | ) | 828 | |||||
Vested – February 2015 | (183,334 | ) | 2,400 | |||||
Non-vested – March 31, 2015 | 341,529 | 1,759 | ||||||
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 | ||||||
The August 2014 grants comprise 127,626 and 14,081 shares of restricted stock awarded to employees and non-employee directors, respectively. All of the November 2014 grants were awarded to employees. The 127,626 and 71,530 shares of restricted stock will vest in full only on the date, if any, the following conditions are satisfied: (1) the closing price of the Company's common stock equals or exceeds $19.41 (subject to appropriate adjustment for any stock split or stock dividend) for a period of 30 consecutive trading days during a measurement period commencing on the date that the Company files its Annual Report on Form 10-K for the fiscal year ended 2017 and ending on December 31, 2017 and (2) the recipient is employed by the Company on a full-time basis when the condition in (1) is met. If either of these conditions is not satisfied, then none of the shares of restricted stock will vest and they will be forfeited. The $19.41 price target represents a 20% increase, compounded annually, in the price of the Company's common stock on Nasdaq over the $11.23 closing price on August 27, 2014. | ||||||||
The 127,626 and 71,530 shares of restricted stock are effectively forward starting knock-in barrier options with a strike price of zero. The fair value of these shares of restricted stock was calculated utilizing an adjusted Monte Carlo simulation discounted cash flow model which was developed for the purpose of the valuation of these shares. For each simulated share price path, the market share price condition was evaluated to determine whether or not the shares would vest under that simulation. The "adjustment" to the Monte Carlo simulation model incorporates a "jump diffusion" process to the standard Geometric Brownian Motion simulation, in order to capture the discontinuous share price jumps observed in the Company's share price movements on stock exchanges on which it is listed. Therefore, the simulated share price paths capture the idiosyncrasies of the observed Company share price movements. | ||||||||
In scenarios where the shares do not vest, the final vested value at maturity is zero. In scenarios where vesting occurs, the final vested value on maturity is the share price on vesting date. The value of the grant is the average of the discounted vested values. The Company used an expected volatility of 76.01%, an expected life of approximately three years, a risk-free rate of 1.27% and no future dividends in its calculation of the fair value of the 127,626 shares of restricted stock. The Company used an expected volatility of 63.73%, an expected life of approximately three years, a risk-free rate of 1.21% and no future dividends in its calculation of the fair value of the 71,530 shares of restricted stock. Estimated expected volatility was calculated based on the Company's 30 day VWAP share price using the exponentially weighted moving average of returns. | ||||||||
The fair value of restricted stock vesting during the three months ended March 31, 2015 and 2014, respectively, was $2.4 million and $1.7 million. The fair value of restricted stock vesting during the nine months ended March 31, 2015 and 2014, respectively, was $3.2 million and $1.9 million. 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-based compensation charge of $0.7 million and $0.9 million, respectively, during the three months ended March 31, 2015 and 2014, 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, 2015 | ||||||||
Stock-based compensation charge | $ | 731 | $- | $ | 731 | |||
Total – three months ended March 31, 2015 | $ | 731 | $- | $ | 731 | |||
Three months ended March 31, 2014 | ||||||||
Stock-based compensation charge | $ | 922 | $- | $ | 922 | |||
Total – three months ended March 31, 2014 | $ | 922 | $- | $ | 922 | |||
The Company has recorded a stock-based compensation charge of $2.7 million and $2.8 million, respectively, during the nine months ended March 31, 2015 and 2014, 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, 2015 | ||||||||
Stock-based compensation charge | $ | 2,682 | $- | $ | 2,682 | |||
Total –Nine months ended March 31, 2015 | $ | 2,682 | $- | $ | 2,682 | |||
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 | |||
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, 2015, the total unrecognized compensation cost related to stock options was approximately $2.1 million, which the Company expects to recognize over approximately three years. As of March 31, 2015, the total unrecognized compensation cost related to restricted stock awards was approximately $1.3 million, which the Company expects to recognize over approximately two years. | ||||||||
As of March 31, 2015 and June 30, 2014, respectively, the Company has recorded a deferred tax asset of approximately $1.3 million and $1.6 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, 2015 | |||||||||||||
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, 2015 and 2014, 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, August 2013, August 2014 and November 2014 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 18 to the Company's audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2014. | |||||||||||||
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, | ||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
(in thousands except percent | (in thousands except percent | ||||||||||||
and | and | ||||||||||||
per share data) | per share data) | ||||||||||||
Numerator: | |||||||||||||
Net income attributable to Net1 | $ | 24,358 | $ | 17,182 | $ | 70,821 | $ | 41,527 | |||||
Undistributed earnings | 24,358 | 17,182 | 70,821 | 41,527 | |||||||||
Percent allocated to common shareholders | |||||||||||||
(Calculation 1) | 99 | % | 99 | % | 99 | % | 99 | % | |||||
Numerator for earnings per share: basic and | |||||||||||||
diluted | $ | 24,102 | $ | 16,944 | $ | 70,011 | $ | 40,917 | |||||
Denominator: | |||||||||||||
Denominator for basic earnings per share: | |||||||||||||
weighted-average common shares | |||||||||||||
outstanding | 46,071 | 45,142 | 46,235 | 45,070 | |||||||||
Effect of dilutive securities: | |||||||||||||
Stock options | 178 | 91 | 137 | 106 | |||||||||
Denominator for diluted earnings per | |||||||||||||
share: adjusted weighted average | |||||||||||||
common shares outstanding and | |||||||||||||
assumed conversion | 46,249 | 45,233 | 46,372 | 45,176 | |||||||||
Earnings per share: | |||||||||||||
Basic | $ | 0.52 | $ | 0.38 | $ | 1.51 | $ | 0.91 | |||||
Diluted | $ | 0.52 | $ | 0.37 | $ | 1.51 | $ | 0.9 | |||||
(Calculation 1) | |||||||||||||
Basic weighted-average common shares | |||||||||||||
outstanding (A) | 46,071 | 45,142 | 46,235 | 45,070 | |||||||||
Basic weighted-average common shares | |||||||||||||
outstanding and unvested restricted shares | |||||||||||||
expected to vest (B) | 46,561 | 45,776 | 46,770 | 45,742 | |||||||||
Percent allocated to common shareholders | |||||||||||||
(A) / (B) | 99 | % | 99 | % | 99 | % | 99 | % | |||||
Options to purchase 1,798,853 shares of the Company's common stock at prices ranging from $11.23 to $24.46 per share were outstanding during the three and nine months ended March 31, 2015, 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 stock. The options, which expire at various dates through August 27, 2024, were still outstanding as of March 31, 2015. | |||||||||||||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||
Supplemental Cash Flow Information | 14. Supplemental cash flow information | ||||||||
The following table presents supplemental cash flow disclosures for the three and nine months ended March 31, 2015 and 2014: | |||||||||
Three months ended | Nine months ended | ||||||||
March 31, | March 31, | ||||||||
2015 | 2014 | 2015 | 2014 | ||||||
Cash received from interest | $ | 4,200 | $ | 3,422 | $ | 11,940 | $ | 9,886 | |
Cash paid for interest | $ | 915 | $ | 1,651 | $ | 3,328 | $ | 5,317 | |
Cash paid for income taxes | $ | 3,086 | $ | 1,570 | $ | 28,639 | $ | 16,097 | |
The sale of the Company's NUETS business is described in Note 19 to its audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2014. The Company received cash sale proceeds of $1.9 million related to this transaction in July 2014. | |||||||||
As discussed in Note 12, during the nine months ended March 31, 2015, employees exercised stock options through the delivery 336,584 shares of the Company's common stock at the closing price on September 9, 2014 or $13.93 under the terms of their option agreements. These shares are included in the Company's total share count and amount reflected as treasury shares on the unaudited condensed consolidated balance sheet as of March 31, 2015 and unaudited condensed consolidated statement of changes in equity for the nine months ended March 31, 2015. | |||||||||
Operating_Segments
Operating Segments | 9 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
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 23 to the Company's audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2014. | |||||||||||||
The reconciliation of the reportable segments revenue to revenue from external customers for the three months ended March 31, 2015 and 2014, respectively, is as follows: | |||||||||||||
Revenue | |||||||||||||
From | |||||||||||||
Reportable | Inter- | external | |||||||||||
Segment | segment | customers | |||||||||||
South African transaction processing | $ | 57,999 | $ | 5,359 | $ | 52,640 | |||||||
International transaction processing | 38,311 | - | 38,311 | ||||||||||
Financial inclusion and applied technologies | 66,830 | 6,660 | 60,170 | ||||||||||
Total for the three months ended March 31, 2015 | 163,140 | 12,019 | 151,121 | ||||||||||
South African transaction processing | 57,397 | 3,886 | 53,511 | ||||||||||
International transaction processing | 35,245 | - | 35,245 | ||||||||||
Financial inclusion and applied technologies | 56,226 | 6,856 | 49,370 | ||||||||||
Total for the three months ended March 31, 2014 | $ | 148,868 | $ | 10,742 | $ | 138,126 | |||||||
The reconciliation of the reportable segments revenue to revenue from external customers for the nine months ended March 31, 2015 and 2014, respectively, is as follows: | |||||||||||||
Revenue | |||||||||||||
From | |||||||||||||
Reportable | Inter- | external | |||||||||||
Segment | segment | customers | |||||||||||
South African transaction processing | $ | 176,678 | $ | 15,917 | $ | 160,761 | |||||||
International transaction processing | 121,981 | - | 121,981 | ||||||||||
Financial inclusion and applied technologies | 199,558 | 20,607 | 178,951 | ||||||||||
Total for the nine months ended March 31, 2015 | $ | 498,217 | $ | 36,524 | $ | 461,693 | |||||||
Revenue | |||||||||||||
From | |||||||||||||
Reportable | Inter- | external | |||||||||||
Segment | segment | customers | |||||||||||
South African transaction processing | $ | 173,312 | $ | 6,866 | $ | 166,446 | |||||||
International transaction processing | 110,524 | - | 110,524 | ||||||||||
Financial inclusion and applied technologies | 143,502 | 21,569 | 121,933 | ||||||||||
Total for the nine months ended March 31, 2014 | $ | 427,338 | $ | 28,435 | $ | 398,903 | |||||||
The Company does not allocate interest income, interest expense or income tax expense to its reportable segments. The Company evaluates segment performance based on segment operating income before acquisition-related intangible asset amortization which represents operating income before acquisition-related intangible asset amortization and allocation of expenses allocated to Corporate/Eliminations, all under GAAP. The reconciliation of the reportable segments measure of profit or loss to income before income taxes for the three and nine months ended March 31, 2015 and 2014, respectively, is as follows: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
Reportable segments measure of profit or loss | $ | 37,703 | $ | 30,238 | $ | 112,751 | $ | 80,590 | |||||
Operating income: Corporate/Eliminations | (5,737 | ) | (6,289 | ) | (16,845 | ) | (21,439 | ) | |||||
Interest income | 4,211 | 3,438 | 11,888 | 9,993 | |||||||||
Interest expense | (941 | ) | (1,734 | ) | (3,360 | ) | (5,712 | ) | |||||
Income before income taxes | $ | 35,236 | $ | 25,653 | $ | 104,434 | $ | 63,432 | |||||
The following tables summarize segment information which is prepared in accordance with GAAP for the three and nine months ended March 31, 2015 and 2014: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
Revenues | |||||||||||||
South African transaction processing | $ | 57,999 | $ | 57,397 | $ | 176,678 | $ | 173,312 | |||||
International transaction processing | 38,311 | 35,245 | 121,981 | 110,524 | |||||||||
Financial inclusion and applied technologies | 66,830 | 56,226 | 199,558 | 143,502 | |||||||||
Total | 163,140 | 148,868 | 498,217 | 427,338 | |||||||||
Operating income (loss) | |||||||||||||
South African transaction processing | 13,218 | 9,137 | 39,740 | 22,726 | |||||||||
International transaction processing | 6,579 | 4,642 | 19,671 | 15,305 | |||||||||
Financial inclusion and applied technologies | 17,906 | 16,459 | 53,340 | 42,559 | |||||||||
Subtotal: Operating segments | 37,703 | 30,238 | 112,751 | 80,590 | |||||||||
Corporate/Eliminations | (5,737 | ) | (6,289 | ) | (16,845 | ) | (21,439 | ) | |||||
Total | 31,966 | 23,949 | 95,906 | 59,151 | |||||||||
Depreciation and amortization | |||||||||||||
South African transaction processing | $ | 1,726 | $ | 1,653 | $ | 5,271 | $ | 5,475 | |||||
International transaction processing | 4,560 | 3,959 | 13,224 | 11,822 | |||||||||
Financial inclusion and applied technologies | 207 | 172 | 589 | 495 | |||||||||
Subtotal: Operating segments | 6,493 | 5,784 | 19,084 | 17,792 | |||||||||
Corporate/Eliminations | 3,567 | 4,658 | 11,307 | 12,453 | |||||||||
Total | $ | 10,060 | $ | 10,442 | $ | 30,391 | $ | 30,245 | |||||
Expenditures for long-lived assets | |||||||||||||
South African transaction processing | $ | 1,514 | $ | 303 | $ | 3,678 | $ | 2,903 | |||||
International transaction processing | 4,561 | 4,231 | 20,167 | 13,747 | |||||||||
Financial inclusion and applied technologies | 232 | 314 | 977 | 659 | |||||||||
Subtotal: Operating segments | 6,307 | 4,848 | 24,822 | 17,309 | |||||||||
Corporate/Eliminations | - | - | - | - | |||||||||
Total | $ | 6,307 | $ | 4,848 | $ | 24,822 | $ | 17,309 | |||||
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, 2015 | |
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, 2015, 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, 2015, was 29.2% and 30.8%, respectively, and was higher than the South African statutory rate primarily as a result of non-deductible expenses (including consulting and legal fees and interest expense related to the Company's long-term Korean borrowings). | |
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). | |
Uncertain tax positions | |
The Company increased its unrecognized tax benefits by $1.2 million during the three and nine months ended March 31, 2015. As of March 31, 2015, 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. | |
As of March 31, 2015 and June 30, 2014, the Company has unrecognized tax benefits of $2.3 million and $1.2 million, respectively, all of which would impact the Company's effective tax rate. The Company files income tax returns mainly in South Africa, South Korea, Austria, Botswana and in the US federal jurisdiction. As of March 31, 2015, the Company's South African subsidiaries are no longer subject to income tax examination by the South African Revenue Service for periods before June 30, 2010. The Company is subject to income tax in other jurisdictions outside South Africa, none of which are individually material to its financial position, results of operations or cash flows. | |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2015 | |
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 135.0 million ($11.2 million, translated at exchange rates applicable as of March 31, 2015) and thereby utilizing part of the Company's short-term facility. The Company in turn has provided nonrecourse, unsecured counter-guarantees to Nedbank for ZAR 125.0 million ($10.3 million, translated at exchange rates applicable as of March 31, 2015). 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 consolidated balance sheet as of March 31, 2015 and June 30, 2014. The maximum potential amount that the Company could pay under these guarantees is ZAR 135.0 million ($11.2 million, translated at exchange rates applicable as of March 31, 2015). 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 March 6, 2015, the plaintiff filed an opposition to the Company's motion to dismiss its complaint and the Company filed a reply brief on March 27, 2015. | |
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 or cash flows | |
Basis_of_Presentation_and_Summ1
Basis of Presentation and Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Mar. 31, 2015 | |
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, 2015 and 2014, 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 Companys Annual Report on Form 10-K for the fiscal year ended June 30, 2014. 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. | |
Recent Accounting Pronouncements | Recent accounting pronouncements adopted |
In March 2013, the FASB issued guidance regarding Parents 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, and is applied prospectively. The adoption of this guidance did not have a material impact on the Companys financial statements. | |
Recent accounting pronouncements not yet adopted as of March 31, 2015 | |
In May 2014, the FASB issued guidance regarding Revenue from Contracts with Customers. This guidance requires an entity to recognize revenue when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for the Company beginning July 1, 2017. Early adoption is not permitted. The Company expects that this guidance will have a material impact on its financial statements and is currently evaluating the impact of this guidance on its financial statements on adoption. | |
In August 2014, the FASB issued guidance regarding Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern. This guidance requires an entity to perform interim and annual assessments of its ability to continue as a going concern within one year of the date that its financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. The guidance is effective for the Company beginning July 1, 2017. Early adoption is permitted. The Company is currently assessing the impact of this guidance on its financial statements disclosure. | |
In February 2015, the FASB issued guidance regarding Amendments to the Consolidation Analysis. This guidance amends both the variable interest entity and voting interest entity consolidation models. The requirement to assess an entity under a different consolidation model may change previous consolidation conclusions. The guidance is effective for the Company beginning July 1, 2016. Early adoption is permitted. The Company is currently assessing the impact of this guidance on its financial statements disclosure. | |
Inventory_Tables
Inventory (Tables) | 9 Months Ended | ||||
Mar. 31, 2015 | |||||
Inventory [Abstract] | |||||
Schedule Of Inventory By Categories | |||||
March 31, | June 30, | ||||
2015 | 2014 | ||||
Finished goods | $ | 12,095 | $ | 10,785 | |
$ | 12,095 | $ | 10,785 |
Fair_Value_Of_Financial_Instru1
Fair Value Of Financial Instruments (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Fair Value Of Financial Instruments [Abstract] | |||||||||
Outstanding Foreign Exchange Contracts | The Company's outstanding foreign exchange contracts are as follows: | ||||||||
As of March 31, 2015 | |||||||||
Fair market | |||||||||
Notional amount | Strike price | value price | Maturity | ||||||
EUR 706,205.00 | ZAR 14.8645 | ZAR 13.0822 | 20-Apr-15 | ||||||
EUR 512,865.00 | ZAR 14.9455 | ZAR 13.1517 | 20-May-15 | ||||||
EUR 526,263.00 | ZAR 15.0345 | ZAR 13.2305 | 22-Jun-15 | ||||||
EUR 526,263.00 | ZAR 15.1145 | ZAR 13.3002 | 20-Jul-15 | ||||||
EUR 526,263.00 | ZAR 15.2025 | ZAR 13.3786 | 20-Aug-15 | ||||||
EUR 526,263.00 | ZAR 15.2944 | ZAR 13.4595 | 21-Sep-15 | ||||||
EUR 526,263.00 | ZAR 15.3809 | ZAR 13.5353 | 20-Oct-15 | ||||||
EUR 509,516.00 | ZAR 15.4728 | ZAR 13.6178 | 20-Nov-15 | ||||||
EUR 529,865.00 | ZAR 15.5654 | ZAR 13.7004 | 21-Dec-15 | ||||||
EUR 526,663.00 | ZAR 15.6625 | ZAR 13.7827 | 20-Jan-16 | ||||||
As of June 30, 2014 | |||||||||
Fair market | |||||||||
Notional amount | Strike price | value price | Maturity | ||||||
EUR 182,272.50 | ZAR 15.2077 | ZAR 14.5803 | 21-Jul-14 | ||||||
EUR 182,272.50 | ZAR 15.3488 | ZAR 14.5803 | 21-Jul-14 | ||||||
EUR 180,022.50 | ZAR 15.4228 | ZAR 14.6542 | 20-Aug-14 | ||||||
EUR 180,022.50 | ZAR 15.2819 | ZAR 14.6542 | 20-Aug-14 | ||||||
EUR 180,022.50 | ZAR 15.3623 | ZAR 14.7367 | 22-Sep-14 | ||||||
EUR 180,022.50 | ZAR 15.5041 | ZAR 14.7367 | 22-Sep-14 | ||||||
EUR 181,570.50 | ZAR 15.5739 | ZAR 14.8119 | 20-Oct-14 | ||||||
EUR 181,570.50 | ZAR 15.4316 | ZAR 14.8119 | 20-Oct-14 | ||||||
EUR 180,022.50 | ZAR 15.6552 | ZAR 14.8982 | 20-Nov-14 | ||||||
EUR 180,022.50 | ZAR 15.5136 | ZAR 14.8982 | 20-Nov-14 | ||||||
EUR 180,022.50 | ZAR 15.5970 | ZAR 14.9874 | 22-Dec-14 | ||||||
EUR 180,022.50 | ZAR 15.7391 | ZAR 14.9874 | 22-Dec-14 | ||||||
EUR 174,424.50 | ZAR 15.8119 | ZAR 15.0671 | 20-Jan-15 | ||||||
EUR 174,424.50 | ZAR 15.6729 | ZAR 15.0671 | 20-Jan-15 | ||||||
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, 2015, 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 | $ | 1,643 | $ | - | $ | - | $ | 1,643 | |
Investment in Finbond (available for sale | |||||||||
assets included in other long-term assets) | - | - | 7,608 | 7,608 | |||||
Other | - | 1,300 | - | 1,300 | |||||
Total assets at fair value | $ | 1,643 | $ | 1,300 | $ | 7,608 | $ | 10,551 | |
Liabilities | |||||||||
Foreign exchange contracts | $ | - | $ | 819 | $ | - | $ | 819 | |
Total liabilities at fair value | $ | - | $ | 819 | $ | - | $ | 819 | |
The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of June 30, 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 | $ | 1,800 | $ | - | $ | - | $ | 1,800 | |
Investment in Finbond (available for sale | |||||||||
assets included in other long-term assets) | - | - | 8,068 | 8,068 | |||||
Other | - | 47 | - | 47 | |||||
Total assets at fair value | $ | 1,800 | $ | 47 | $ | 8,068 | $ | 9,915 | |
Liabilities | |||||||||
Foreign exchange contracts | $ | - | $ | 164 | $ | - | $ | 164 | |
Total liabilities at fair value | $ | - | $ | 164 | $ | - | $ | 164 | |
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets, Net (Tables) | 9 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Goodwill And Intangible Assets, Net [Abstract] | |||||||||||||||
Carrying Value Of Goodwill | Summarized below is the movement in the carrying value of goodwill for the nine months ended March 31, 2015: | ||||||||||||||
Accumulated | Carrying | ||||||||||||||
Gross value | impairment | value | |||||||||||||
Balance as of June 30, 2014 | $ | 186,576 | $ | - | $ | 186,576 | |||||||||
Foreign currency adjustment (1) | (17,143 | ) | - | (17,143 | ) | ||||||||||
Balance as of March 31, 2015 | $ | 169,433 | $ | 0 | $ | 169,433 | |||||||||
(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, | ||||||||||||||
2015 | 2014 | ||||||||||||||
South African transaction processing | $ | 24,974 | $ | 28,517 | |||||||||||
International transaction processing | 117,788 | 128,427 | |||||||||||||
Financial inclusion and applied technologies | 26,671 | 29,632 | |||||||||||||
Total | $ | 169,433 | $ | 186,576 | |||||||||||
Carrying Value And Accumulated Amortization Of Intangible Assets | |||||||||||||||
As of March 31, 2015 | As of June 30, 2014 | ||||||||||||||
Gross | Net | Gross | Net | ||||||||||||
carrying | Accumulated | carrying | carrying | Accumulated | carrying | ||||||||||
value | amortization | value | value | amortization | value | ||||||||||
Finite-lived intangible assets: | |||||||||||||||
Customer relationships | $ | 89,797 | $ | (43,972 | ) | $ | 45,825 | $ | 98,676 | $ | (41,273 | ) | $ | 57,403 | |
Software and unpatented | |||||||||||||||
technology | 30,534 | (27,585 | ) | 2,949 | 33,604 | (26,207 | ) | 7,397 | |||||||
FTS patent | 3,169 | (3,169 | ) | - | 3,619 | (3,619 | ) | - | |||||||
Exclusive licenses | 4,506 | (4,506 | ) | - | 4,506 | (4,506 | ) | - | |||||||
Trademarks | 6,205 | (3,314 | ) | 2,891 | 6,890 | (3,176 | ) | 3,714 | |||||||
Total finite-lived intangible | |||||||||||||||
assets | $ | 134,211 | $ | (82,546 | ) | $ | 51,665 | $ | 147,295 | $ | (78,781 | ) | $ | 68,514 | |
Future Estimated Annual Amortization Expense | |||||||||||||||
2015 | $ | 14,446 | |||||||||||||
2016 | 10,800 | ||||||||||||||
2017 | 8,611 | ||||||||||||||
2018 | 8,612 | ||||||||||||||
2019 | 8,293 | ||||||||||||||
Thereafter | $ | 11,507 |
Reinsurance_Assets_And_Policy_1
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts (Tables) | 9 Months Ended | ||||||
Mar. 31, 2015 | |||||||
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 | Summarized below is the movement in reinsurance assets and policy holder liabilities under insurance contracts during the nine months ended March 31, 2015: | ||||||
Reinsurance | Insurance | ||||||
assets (1) | contracts (2) | ||||||
Balance as of June 30, 2014 | $ | 21,062 | $ | (21,478 | ) | ||
Foreign currency adjustment (3) | (2,617 | ) | 2,668 | ||||
Balance as of March 31, 2015 | $ | 18,445 | $ | (18,810 | ) | ||
(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 | Summarized below is the movement in assets and policy holder liabilities under investment contracts during the nine months ended March 31, 2015: | ||||||
Investment | |||||||
Assets (1) | contracts (2) | ||||||
Balance as of June 30, 2014 | $ | 688 | $ | (688 | ) | ||
Foreign currency adjustment (3) | (85 | ) | 85 | ||||
Balance as of March 31, 2015 | $ | 603 | $ | (603 | ) | ||
(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, 2015 | |||||
Capital Structure [Abstract] | |||||
Schedule Of Number Of Shares, Net Of Treasury | |||||
2015 | 2014 | ||||
Number of shares, net of treasury: | |||||
Statement of changes in equity | 46,607,153 | 45,783,342 | |||
Less: Non-vested equity shares that have not vested (Note 12) | (341,529 | ) | (385,778 | ) | |
Number of shares, net of treasury excluding non-vested | |||||
equity shares that have not vested | 46,265,624 | 45,397,564 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accumulated Other Comprehensive Loss [Abstract] | |||||||||
Changes In Accumulated Other Comprehensive (Loss) Income | |||||||||
Nine months ended | |||||||||
31-Mar-15 | |||||||||
Accumulated | |||||||||
Net | |||||||||
unrealized | |||||||||
Accumulated | income (loss) | ||||||||
Foreign | on asset | ||||||||
currency | available for | ||||||||
translation | sale, net of | ||||||||
reserve | tax | Total | |||||||
Balance as of June 30, 2014 | $ | (83,359 | ) | $ | 618 | $ | (82,741 | ) | |
Movement in foreign currency translation reserve | (49,096 | ) | - | (49,096 | ) | ||||
Unrealized gain on asset available for sale, net of tax | |||||||||
of $97 | - | 422 | 422 | ||||||
Balance as of March 31, 2015 | $ | (132,455 | ) | $ | 1,040 | $ | (131,415 | ) |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Stock-Based Compensation [Abstract] | ||||||||
Summarized Stock Option Activity | ||||||||
Weighted | Weighted | |||||||
Weighted | Average | Average | ||||||
average | Remaining | Aggregate | Grant | |||||
exercise | Contractual | Intrinsic | Date Fair | |||||
Number of | price | Term | Value | Value | ||||
shares | ($) | (in years) | ($'000) | ($) | ||||
Outstanding – June 30, 2014 | 2,710,392 | 14.16 | 5.38 | 3,909 | ||||
Granted under Plan: August | ||||||||
2014 | 464,410 | 11.23 | 10 | 2,113 | 4.55 | |||
Exercised | (748,633 | ) | 8.64 | 3,750 | ||||
Outstanding – March 31, | ||||||||
2015 | 2,426,169 | 15.3 | 4.99 | 4,570 | ||||
Outstanding – June 30, 2013 | 2,648,583 | 15.15 | 5.98 | 313 | ||||
Granted under Plan: August | ||||||||
2013 | 224,896 | 7.35 | 10 | 568 | 2.53 | |||
Exercised | (10,000 | ) | 8.75 | 12 | ||||
Forfeited | (136,420 | ) | 23.51 | |||||
Outstanding – March 31, | ||||||||
2014 | 2,727,059 | 14.12 | 5.63 | 2,290 | ||||
Weighted | ||||||||
Weighted | Average | |||||||
average | Remaining | Aggregate | ||||||
exercise | Contractual | Intrinsic | ||||||
Number of | price | Term | Value | |||||
shares | ($) | (in years) | ($'000) | |||||
Vested and expecting to vest | ||||||||
– March 31, 2015 | 2,426,169 | 15.3 | 4.99 | 4,570 | ||||
Weighted | ||||||||
Weighted | Average | |||||||
average | Remaining | Aggregate | ||||||
exercise | Contractual | Intrinsic | ||||||
Number of | price | Term | Value | |||||
shares | ($) | (in years) | ($'000) | |||||
Exercisable – March 31, 2015 | 1,668,163 | 17.71 | 3.24 | 1,775 | ||||
Restricted Stock Activity | ||||||||
Weighted | ||||||||
Number of | Average | |||||||
Shares of | Grant Date | |||||||
Restricted | Fair Value | |||||||
Stock | ($'000) | |||||||
Non-vested – June 30, 2014 | 385,778 | 3,534 | ||||||
Granted – August 2014 | 141,707 | 581 | ||||||
Granted – November 2014 | 71,530 | 229 | ||||||
Vested – August 2014 | (74,152 | ) | 828 | |||||
Vested – February 2015 | (183,334 | ) | 2,400 | |||||
Non-vested – March 31, 2015 | 341,529 | 1,759 | ||||||
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 | ||||||
Range Of Assumptions Used To Value Options Granted | ||||||||
Nine months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Expected volatility | 60 | % | 50 | % | ||||
Expected dividends | 0 | % | 0 | % | ||||
Expected life (in years) | 3 | 3 | ||||||
Risk-free rate | 1 | % | 0.9 | % | ||||
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, 2015 | ||||||||
Stock-based compensation charge | $ | 731 | $- | $ | 731 | |||
Total – three months ended March 31, 2015 | $ | 731 | $- | $ | 731 | |||
Three months ended March 31, 2014 | ||||||||
Stock-based compensation charge | $ | 922 | $- | $ | 922 | |||
Total – three months ended March 31, 2014 | $ | 922 | $- | $ | 922 | |||
Allocated to cost | ||||||||
of goods sold, IT | Allocated to | |||||||
processing, | selling, general | |||||||
Total | servicing and | and | ||||||
charge | support | administration | ||||||
Nine months ended March 31, 2015 | ||||||||
Stock-based compensation charge | $ | 2,682 | $- | $ | 2,682 | |||
Total –Nine months ended March 31, 2015 | $ | 2,682 | $- | $ | 2,682 | |||
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 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Basic And Diluted Earnings Per Share | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
(in thousands except percent | (in thousands except percent | ||||||||||||
and | and | ||||||||||||
per share data) | per share data) | ||||||||||||
Numerator: | |||||||||||||
Net income attributable to Net1 | $ | 24,358 | $ | 17,182 | $ | 70,821 | $ | 41,527 | |||||
Undistributed earnings | 24,358 | 17,182 | 70,821 | 41,527 | |||||||||
Percent allocated to common shareholders | |||||||||||||
(Calculation 1) | 99 | % | 99 | % | 99 | % | 99 | % | |||||
Numerator for earnings per share: basic and | |||||||||||||
diluted | $ | 24,102 | $ | 16,944 | $ | 70,011 | $ | 40,917 | |||||
Denominator: | |||||||||||||
Denominator for basic earnings per share: | |||||||||||||
weighted-average common shares | |||||||||||||
outstanding | 46,071 | 45,142 | 46,235 | 45,070 | |||||||||
Effect of dilutive securities: | |||||||||||||
Stock options | 178 | 91 | 137 | 106 | |||||||||
Denominator for diluted earnings per | |||||||||||||
share: adjusted weighted average | |||||||||||||
common shares outstanding and | |||||||||||||
assumed conversion | 46,249 | 45,233 | 46,372 | 45,176 | |||||||||
Earnings per share: | |||||||||||||
Basic | $ | 0.52 | $ | 0.38 | $ | 1.51 | $ | 0.91 | |||||
Diluted | $ | 0.52 | $ | 0.37 | $ | 1.51 | $ | 0.9 | |||||
(Calculation 1) | |||||||||||||
Basic weighted-average common shares | |||||||||||||
outstanding (A) | 46,071 | 45,142 | 46,235 | 45,070 | |||||||||
Basic weighted-average common shares | |||||||||||||
outstanding and unvested restricted shares | |||||||||||||
expected to vest (B) | 46,561 | 45,776 | 46,770 | 45,742 | |||||||||
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, 2015 | |||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||
Schedule Of Supplemental Cash Flow Disclosures | |||||||||
Three months ended | Nine months ended | ||||||||
March 31, | March 31, | ||||||||
2015 | 2014 | 2015 | 2014 | ||||||
Cash received from interest | $ | 4,200 | $ | 3,422 | $ | 11,940 | $ | 9,886 | |
Cash paid for interest | $ | 915 | $ | 1,651 | $ | 3,328 | $ | 5,317 | |
Cash paid for income taxes | $ | 3,086 | $ | 1,570 | $ | 28,639 | $ | 16,097 |
Operating_Segments_Tables
Operating Segments (Tables) | 9 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Operating Segments [Abstract] | |||||||||||||
Reconciliation Of Reportable Segments Revenue | |||||||||||||
Revenue | |||||||||||||
From | |||||||||||||
Reportable | Inter- | external | |||||||||||
Segment | segment | customers | |||||||||||
South African transaction processing | $ | 57,999 | $ | 5,359 | $ | 52,640 | |||||||
International transaction processing | 38,311 | - | 38,311 | ||||||||||
Financial inclusion and applied technologies | 66,830 | 6,660 | 60,170 | ||||||||||
Total for the three months ended March 31, 2015 | 163,140 | 12,019 | 151,121 | ||||||||||
South African transaction processing | 57,397 | 3,886 | 53,511 | ||||||||||
International transaction processing | 35,245 | - | 35,245 | ||||||||||
Financial inclusion and applied technologies | 56,226 | 6,856 | 49,370 | ||||||||||
Total for the three months ended March 31, 2014 | $ | 148,868 | $ | 10,742 | $ | 138,126 | |||||||
Revenue | |||||||||||||
From | |||||||||||||
Reportable | Inter- | external | |||||||||||
Segment | segment | customers | |||||||||||
South African transaction processing | $ | 176,678 | $ | 15,917 | $ | 160,761 | |||||||
International transaction processing | 121,981 | - | 121,981 | ||||||||||
Financial inclusion and applied technologies | 199,558 | 20,607 | 178,951 | ||||||||||
Total for the nine months ended March 31, 2015 | $ | 498,217 | $ | 36,524 | $ | 461,693 | |||||||
Revenue | |||||||||||||
From | |||||||||||||
Reportable | Inter- | external | |||||||||||
Segment | segment | customers | |||||||||||
South African transaction processing | $ | 173,312 | $ | 6,866 | $ | 166,446 | |||||||
International transaction processing | 110,524 | - | 110,524 | ||||||||||
Financial inclusion and applied technologies | 143,502 | 21,569 | 121,933 | ||||||||||
Total for the nine months ended March 31, 2014 | $ | 427,338 | $ | 28,435 | $ | 398,903 | |||||||
Reconciliation Of Reportable Segments Measure Of Profit Or Loss To Income | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
Reportable segments measure of profit or loss | $ | 37,703 | $ | 30,238 | $ | 112,751 | $ | 80,590 | |||||
Operating income: Corporate/Eliminations | (5,737 | ) | (6,289 | ) | (16,845 | ) | (21,439 | ) | |||||
Interest income | 4,211 | 3,438 | 11,888 | 9,993 | |||||||||
Interest expense | (941 | ) | (1,734 | ) | (3,360 | ) | (5,712 | ) | |||||
Income before income taxes | $ | 35,236 | $ | 25,653 | $ | 104,434 | $ | 63,432 | |||||
Summary Of Segment Information | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
Revenues | |||||||||||||
South African transaction processing | $ | 57,999 | $ | 57,397 | $ | 176,678 | $ | 173,312 | |||||
International transaction processing | 38,311 | 35,245 | 121,981 | 110,524 | |||||||||
Financial inclusion and applied technologies | 66,830 | 56,226 | 199,558 | 143,502 | |||||||||
Total | 163,140 | 148,868 | 498,217 | 427,338 | |||||||||
Operating income (loss) | |||||||||||||
South African transaction processing | 13,218 | 9,137 | 39,740 | 22,726 | |||||||||
International transaction processing | 6,579 | 4,642 | 19,671 | 15,305 | |||||||||
Financial inclusion and applied technologies | 17,906 | 16,459 | 53,340 | 42,559 | |||||||||
Subtotal: Operating segments | 37,703 | 30,238 | 112,751 | 80,590 | |||||||||
Corporate/Eliminations | (5,737 | ) | (6,289 | ) | (16,845 | ) | (21,439 | ) | |||||
Total | 31,966 | 23,949 | 95,906 | 59,151 | |||||||||
Depreciation and amortization | |||||||||||||
South African transaction processing | $ | 1,726 | $ | 1,653 | $ | 5,271 | $ | 5,475 | |||||
International transaction processing | 4,560 | 3,959 | 13,224 | 11,822 | |||||||||
Financial inclusion and applied technologies | 207 | 172 | 589 | 495 | |||||||||
Subtotal: Operating segments | 6,493 | 5,784 | 19,084 | 17,792 | |||||||||
Corporate/Eliminations | 3,567 | 4,658 | 11,307 | 12,453 | |||||||||
Total | $ | 10,060 | $ | 10,442 | $ | 30,391 | $ | 30,245 | |||||
Expenditures for long-lived assets | |||||||||||||
South African transaction processing | $ | 1,514 | $ | 303 | $ | 3,678 | $ | 2,903 | |||||
International transaction processing | 4,561 | 4,231 | 20,167 | 13,747 | |||||||||
Financial inclusion and applied technologies | 232 | 314 | 977 | 659 | |||||||||
Subtotal: Operating segments | 6,307 | 4,848 | 24,822 | 17,309 | |||||||||
Corporate/Eliminations | - | - | - | - | |||||||||
Total | $ | 6,307 | $ | 4,848 | $ | 24,822 | $ | 17,309 |
Inventory_Details
Inventory (Details) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 | |
In Thousands, unless otherwise specified | |||
Inventory [Abstract] | |||
Finished goods | $12,095 | $10,785 | |
Inventory | $12,095 | $10,785 | [1] |
[1] | Derived from audited financial statements |
Fair_Value_Of_Financial_Instru2
Fair Value Of Financial Instruments (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Fair Value Of Financial Instruments [Abstract] | ||||
Significant fluctuation of US Dollar to ZAR exchange rate, in years | 3 years | |||
Equity method investment, shares | 156,788,712 | 156,788,712 | ||
Fair value of securities representing percentage of total assets, percent | 1.00% | 1.00% | ||
Transfers in or out of Level 3 | $0 | $0 | $0 | $0 |
Impairment charges | $0 | $0 | $0 | $0 |
Fair_Value_Of_Financial_Instru3
Fair Value Of Financial Instruments (Outstanding Foreign Exchange Contracts) (Details) | 12 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | |
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] | Forward Contracts Twenty-One [Member] | Forward Contracts Twenty-One [Member] | Forward Contracts Twenty-Two [Member] | Forward Contracts Twenty-Two [Member] | Forward Contracts Twenty-Three [Member] | Forward Contracts Twenty-Three [Member] | Forward Contracts Twenty-Four [Member] | Forward Contracts Twenty-Four [Member] | |
EUR (€) | EUR (€) | EUR (€) | EUR (€) | 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 | € 182,272.50 | € 182,272.50 | € 180,022.50 | € 180,022.50 | € 180,022.50 | € 180,022.50 | € 181,570.50 | € 181,570.50 | € 180,022.50 | € 180,022.50 | € 180,022.50 | € 180,022.50 | € 174,424.50 | € 174,424.50 | € 706,205 | € 512,865 | € 526,263 | € 526,263 | € 526,263 | € 526,263 | € 526,263 | € 509,516 | € 529,865 | € 526,663 | ||||||||||||||||||||||||
Strike price (ZAR) | 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 | 14.8645 | 14.8645 | 14.9455 | 14.9455 | 15.0345 | 15.0345 | 15.1145 | 15.1145 | 15.2025 | 15.2025 | 15.2944 | 15.2944 | 15.3809 | 15.3809 | 15.4728 | 15.4728 | 15.5654 | 15.5654 | 15.6625 | 15.6625 |
Fair market value price (ZAR) | 14.5803 | 14.5803 | 14.5803 | 14.5803 | 14.6542 | 14.6542 | 14.6542 | 14.6542 | 14.7367 | 14.7367 | 14.7367 | 14.7367 | 14.8119 | 14.8119 | 14.8119 | 14.8119 | 14.8982 | 14.8982 | 14.8982 | 14.8982 | 14.9874 | 14.9874 | 14.9874 | 14.9874 | 15.0671 | 15.0671 | 15.0671 | 15.0671 | 13.0822 | 13.0822 | 13.1517 | 13.1517 | 13.2305 | 13.2305 | 13.3002 | 13.3002 | 13.3786 | 13.3786 | 13.4595 | 13.4595 | 13.5353 | 13.5353 | 13.6178 | 13.6178 | 13.7004 | 13.7004 | 13.7827 | 13.7827 |
Maturity | 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 | 20-Apr-15 | 20-Apr-15 | 20-May-15 | 20-May-15 | 22-Jun-15 | 22-Jun-15 | 20-Jul-15 | 20-Jul-15 | 20-Aug-15 | 20-Aug-15 | 21-Sep-15 | 21-Sep-15 | 20-Oct-15 | 20-Oct-15 | 20-Nov-15 | 20-Nov-15 | 21-Dec-15 | 21-Dec-15 | 20-Jan-16 | 20-Jan-16 |
Fair_Value_Of_Financial_Instru4
Fair Value Of Financial Instruments (Fair Value Of Assets And Liabilities Measured On Recurring Basis) (Details) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $1,643 | $1,800 |
Investments in Finbond (available for sale assets included in other long-term assets) | 7,608 | 8,068 |
Other | 1,300 | 47 |
Total assets at fair value | 10,551 | 9,915 |
Foreign exchange contracts | 819 | 164 |
Total liabilities at fair value | 819 | 164 |
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 | 1,643 | 1,800 |
Total assets at fair value | 1,643 | 1,800 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other | 1,300 | 47 |
Total assets at fair value | 1,300 | 47 |
Foreign exchange contracts | 819 | 164 |
Total liabilities at fair value | 819 | 164 |
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) | 7,608 | 8,068 |
Total assets at fair value | $7,608 | $8,068 |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets, Net (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Goodwill And Intangible Assets, Net [Abstract] | ||||
Amortization expense | $3.60 | $4.60 | $11.30 | $12.50 |
Goodwill_And_Intangible_Assets3
Goodwill And Intangible Assets, Net (Carrying Value Of Goodwill) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | |
Goodwill And Intangible Assets, Net [Abstract] | ||
Gross value, Balance as of June 30, 2014 | $186,576 | |
Gross value, Foreign currency adjustment | -17,143 | [1] |
Gross value, Balance as of March 31, 2015 | 169,433 | |
Accumulated impairment, Balance as of March 31, 2015 | 0 | |
Carrying value, Balance as of June 30, 2014 | 186,576 | [2] |
Carrying value, Foreign currency adjustment | -17,143 | [1] |
Carrying value, Balance as of March 31, 2015 | $169,433 | |
[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, Net (Goodwill Allocated To Reportable Segments) (Details) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 | |
In Thousands, unless otherwise specified | |||
Goodwill [Line Items] | |||
Total | $169,433 | $186,576 | [1] |
South African Transaction Processing [Member] | |||
Goodwill [Line Items] | |||
Total | 24,974 | 28,517 | |
International Transaction Processing [Member] | |||
Goodwill [Line Items] | |||
Total | 117,788 | 128,427 | |
Financial Inclusion And Applied Technology [Member] | |||
Goodwill [Line Items] | |||
Total | $26,671 | $29,632 | |
[1] | Derived from audited financial statements |
Goodwill_And_Intangible_Assets5
Goodwill And Intangible Assets, Net (Carrying Value And Accumulated Amortization Of Intangible Assets) (Details) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 | |
In Thousands, unless otherwise specified | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | $134,211 | $147,295 | |
Accumulated amortization | -82,546 | -78,781 | |
Net carrying value | 51,665 | 68,514 | [1] |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | 89,797 | 98,676 | |
Accumulated amortization | -43,972 | -41,273 | |
Net carrying value | 45,825 | 57,403 | |
Software And Unpatented Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | 30,534 | 33,604 | |
Accumulated amortization | -27,585 | -26,207 | |
Net carrying value | 2,949 | 7,397 | |
FTS Patent [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | 3,169 | 3,619 | |
Accumulated amortization | -3,169 | -3,619 | |
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 | 6,205 | 6,890 | |
Accumulated amortization | -3,314 | -3,176 | |
Net carrying value | $2,891 | $3,714 | |
[1] | Derived from audited financial statements |
Goodwill_And_Intangible_Assets6
Goodwill And Intangible Assets, Net (Future Estimated Annual Amortization Expense) (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Goodwill And Intangible Assets, Net [Abstract] | |
2015 | $14,446 |
2016 | 10,800 |
2017 | 8,611 |
2018 | 8,612 |
2019 | 8,293 |
Thereafter | $11,507 |
Reinsurance_Assets_And_Policy_2
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts (Narrative) (Details) | 9 Months Ended |
Mar. 31, 2015 | |
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, 2015 | |
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts [Abstract] | ||
Reinsurance assets, Balance as of June 30, 2014 | $21,062 | [1] |
Reinsurance assets, Foreign currency adjustment | -2,617 | [1],[2] |
Reinsurance assets, Balance as of December 31, 2014 | 18,445 | [1] |
Insurance contracts, Balance as of June 30, 2014 | -21,478 | [3] |
Insurance contracts, Foreign currency adjustment | 2,668 | [2],[3] |
Insurance contracts, Balance as of December 31, 2014 | ($18,810) | [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, 2015 | |
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts [Abstract] | ||
Assets, Balance as of June 30, 2014 | $688 | [1] |
Assets, Foreign currency adjustment | -85 | [1],[2] |
Assets, Balance as of December 31, 2014 | 603 | [1] |
Investment contracts, Balance as of June 30, 2014 | -688 | [3] |
Investment contracts, Foreign currency adjustment | 85 | [2],[3] |
Investment contracts, Balance as of March 31, 2014 | ($603) | [3] |
[1] | Included in other long-term assets. | |
[2] | The foreign currency adjustment represents the effects of the fluctuations between the ZAR against the US dollar. | |
[3] | Included in other long-term liabilities. |
ShortTerm_Credit_Facility_Deta
Short-Term Credit Facility (Details) | Jun. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2015 |
In Millions, unless otherwise specified | ZAR | South African Credit Facility [Member] | South African Credit Facility [Member] | South African Credit Facility [Member] | South African Credit Facility [Member] | Korea, Hana Bank Overdraft Facility [Member] | Korea, Hana Bank Overdraft Facility [Member] |
USD ($) | ZAR | USD ($) | ZAR | USD ($) | KRW | ||
Short-term Debt [Line Items] | |||||||
Maximum borrowing capacity | $20.70 | 250 | 250 | $9 | 10,000 | ||
Indirect and derivative facilities borrowing capacity | 150 | ||||||
Short-term credit facility utilized | $11.30 | 137.2 | $13.10 | 139 | |||
Short term interest rate | 8.10% | 8.10% | 3.80% | 3.80% |
LongTerm_Borrowings_Details
Long-Term Borrowings (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Long-Term Borrowings [Abstract] | ||||
Long-term borrowings | $60 | $60 | ||
Interest rate on credit facility | 5.22% | 5.22% | ||
Interest expense | 0.8 | 1.1 | 2.2 | 3.7 |
Amortization of fees | 0.04 | 0.1 | 0.2 | 0.7 |
Amortization of fees included from refinanced facility expense | 0.4 | |||
Principal repayment | $9 |
Capital_Structure_Narrative_De
Capital Structure (Narrative) (Details) | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | |
USD ($) | ZAR | KSNET [Member] | |
USD ($) | |||
Class of Stock [Line Items] | |||
Number of shares repurchased | 1,837,432 | 1,837,432 | |
Cost of stock repurchased | $9,151,000 | 97,400,000 | |
Percentage of ordinary shares outstanding after subscription | 12.50% | 12.50% | |
Subscription of shares | 1,400,000 | 15,000,000 | |
Cash paid for capital shares | 2,000,000 | ||
Difference in amount, fair value of consideration paid and non-controlling interest adjustment | $1,500,000 |
Capital_Structure_Schedule_Of_
Capital Structure (Schedule Of Number Of Shares, Net Of Treasury) (Details) | Mar. 31, 2015 | Mar. 31, 2014 |
Capital Structure [Abstract] | ||
Number of shares, net of treasury | 46,607,153 | 45,783,342 |
Less: Non-vested equity shares that have not vested (Note 12) | -341,529 | -385,778 |
Number of shares, net of treasury excluding non-vested equity shares that have not vested | 46,265,624 | 45,397,564 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance as of June 30, 2014 | ($82,741) | [1] | |||
Movement in foreign currency translation reserve | -49,096 | ||||
Unrealized gain on asset available for sale, net of tax of $97 | 648 | 327 | 422 | 288 | |
Balance as of March 31, 2015 | -131,415 | -131,415 | |||
Unrealized gain on asset available for sale, tax | 97 | ||||
Reclassification from accumulated other comprehensive loss | 0 | 0 | 0 | 0 | |
Foreign Currency Translation Reserve [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance as of June 30, 2014 | -83,359 | ||||
Movement in foreign currency translation reserve | -49,096 | ||||
Balance as of March 31, 2015 | -132,455 | -132,455 | |||
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, 2014 | 618 | ||||
Unrealized gain on asset available for sale, net of tax of $97 | 422 | ||||
Balance as of March 31, 2015 | $1,040 | $1,040 | |||
[1] | Derived from audited financial statements |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 1 Months Ended | |||||||||||
Sep. 09, 2014 | Aug. 27, 2014 | Aug. 31, 2014 | Aug. 31, 2013 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 28, 2015 | Nov. 30, 2014 | Feb. 28, 2014 | Aug. 31, 2012 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Expected volatility calculation term | 250 days | ||||||||||||||||
Forfeitures, Number of shares | 0 | 0 | 0 | 136,420 | 0 | 0 | 0 | 136,420 | |||||||||
Exercisable stock options | 0 | 0 | 330,967 | 358,333 | |||||||||||||
Exercise of stock option (Note 12) | $572,238 | $1,780,000 | |||||||||||||||
Options exercised, shares | 748,633 | 10,000 | |||||||||||||||
Common stock, shares issued | 336,584 | 46,607,153 | 46,607,153 | 47,819,299 | |||||||||||||
Stock-based compensation charge | 731,000 | 922,000 | 2,682,000 | 2,820,000 | |||||||||||||
Deferred tax asset | 1,300,000 | 1,300,000 | 1,600,000 | ||||||||||||||
Share price, closing price threshold | $19.41 | ||||||||||||||||
Period of trading days to the trigger events | 30 days | ||||||||||||||||
Percentage increase of common stock price on market | 20.00% | ||||||||||||||||
Closing price, per share | $11.23 | ||||||||||||||||
Expected volatility | 60.00% | 50.00% | |||||||||||||||
Expected life (in years) | 3 years | 3 years | |||||||||||||||
Risk-free rate | 1.00% | 0.90% | |||||||||||||||
Stock Options [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Proceeds from exercise of stock options | 800,000 | 100,000 | 1,800,000 | 100,000 | |||||||||||||
Options exercised, shares | 60,000 | 10,000 | 176,395 | 10,000 | |||||||||||||
Unrecognized compensation cost | 2,100,000 | 2,100,000 | |||||||||||||||
Unrecognized compensation cost, expected recognition period, years | 3 years | ||||||||||||||||
Restricted Stock [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Expected volatility calculation term | 30 days | ||||||||||||||||
Granted, Number of Shares of Restricted Stock | 141,707 | 187,963 | 71,530 | ||||||||||||||
Fair value of restricted stock vested | 2,400,000 | 1,700,000 | 3,200,000 | 1,900,000 | |||||||||||||
Vested stock | 74,152 | 183,334 | 183,333 | 16,907 | |||||||||||||
Unrecognized compensation cost | $1,300,000 | $1,300,000 | |||||||||||||||
Unrecognized compensation cost, expected recognition period, years | 2 years | ||||||||||||||||
Expected volatility | 76.01% | 63.73% | |||||||||||||||
Expected life (in years) | 3 years | 3 years | |||||||||||||||
Risk-free rate | 1.27% | 1.21% | |||||||||||||||
Restricted Stock [Member] | Employees [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Granted, Number of Shares of Restricted Stock | 127,626 | ||||||||||||||||
Restricted Stock [Member] | Non-Employee Director [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Granted, Number of Shares of Restricted Stock | 14,081 |
StockBased_Compensation_Summar
Stock-Based Compensation (Summarized Stock Option Activity) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
Stock-Based Compensation [Abstract] | |||||||||||
Outstanding, Number of shares, Beginning Balance | 2,710,392 | 2,648,583 | 2,710,392 | 2,648,583 | 2,648,583 | ||||||
Granted under Plan, Number of shares | 224,896 | ||||||||||
Exercised, Number of shares | -748,633 | -10,000 | |||||||||
Forfeitures, Number of shares | 0 | 0 | 0 | -136,420 | 0 | 0 | 0 | -136,420 | |||
Outstanding, Number of shares, Ending Balance | 464,410 | 2,727,059 | 2,426,169 | 2,727,059 | 2,710,392 | 2,648,583 | |||||
Outstanding, Weighted average exercise price, Beginning Balance | $14.16 | $15.15 | $14.16 | $15.15 | $15.15 | ||||||
Granted under Plan, Weighted average exercise price | $7.35 | ||||||||||
Exercised, Weighted average exercise price | $8.64 | $8.75 | |||||||||
Forfeitures, Weighted average exercise price | $23.51 | ||||||||||
Outstanding, Weighted average exercise price, Ending Balance | $11.23 | $14.12 | $15.30 | $14.12 | $14.16 | $15.15 | |||||
Outstanding, Weighted Average Remaining Contractual Term (in years), Beginning Balance | 4 years 11 months 27 days | 5 years 7 months 17 days | 5 years 4 months 17 days | 5 years 11 months 23 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 | 4 years 11 months 27 days | 5 years 7 months 17 days | 5 years 4 months 17 days | 5 years 11 months 23 days | |||||||
Outstanding, Aggregate Intrinsic Value, Beginning Balance | $3,909 | $313 | $3,909 | $313 | $313 | ||||||
Granted under Plan, Aggregate Intrinsic Value | 568 | ||||||||||
Exercised, Aggregate Intrinsic Value | 3,750 | 12 | |||||||||
Outstanding, Aggregate Intrinsic Value, Ending Balance | 2,113 | 2,290 | 4,570 | 2,290 | 3,909 | 313 | |||||
Granted under Plan, Weighted Average Grant Date Fair Value | $4.55 | $2.53 | |||||||||
Options exercise price range, lower limit | $7.35 | ||||||||||
Options exercise price range, upper limit | $24.46 | ||||||||||
Vested and expected to vest, Number of shares | 2,426,169 | ||||||||||
Vested and expecting to vest, Weighted average exercise price | $15.30 | ||||||||||
Vested and expecting to vest, Weighted Average Remaining Contractual Term (in years) | 4 years 11 months 27 days | ||||||||||
Vested and expected to vest, Aggregate Intrinsic Value | 4,570 | ||||||||||
Exercisable, Number of Shares | 1,668,163 | ||||||||||
Exercisable, Weighted average exercise price | $17.71 | ||||||||||
Exercisable, Weighted Average Remaining Contractual Term (in years) | 3 years 2 months 27 days | ||||||||||
Exercisable, Aggregate Intrinsic Value | $1,775 |
StockBased_Compensation_Range_
Stock-Based Compensation (Range Of Assumptions Used To Value Options Granted) (Details) | 9 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Stock-Based Compensation [Abstract] | ||
Expected volatility | 60.00% | 50.00% |
Expected dividends | 0.00% | 0.00% |
Expected life (in years) | 3 years | 3 years |
Risk-free rate | 1.00% | 0.90% |
StockBased_Compensation_Restri
Stock-Based Compensation (Restricted Stock Activity) (Details) (USD $) | 1 Months Ended | ||||||||||
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | Feb. 28, 2014 | Oct. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2012 | Mar. 31, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Non-vested, Number of Shares of Restricted Stock, Beginning Balance | 341,529 | 385,778 | |||||||||
Non-vested, Number of Shares of Restricted Stock, Ending Balance | 341,529 | 385,778 | |||||||||
Restricted Stock [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Non-vested, Number of Shares of Restricted Stock, Beginning Balance | 341,529 | 385,778 | 385,778 | 405,226 | |||||||
Granted, Number of Shares of Restricted Stock | 71,530 | 141,707 | 187,963 | ||||||||
Vested, Number of Shares of Restricted Stock | -183,334 | -74,152 | -183,333 | -16,907 | |||||||
Forfeitures, Number of Shares of Restricted Stock | -7,171 | ||||||||||
Non-vested, Number of Shares of Restricted Stock, Ending Balance | 341,529 | 385,778 | 385,778 | 405,226 | |||||||
Non-vested, Weighted Average Grant Date Fair Value, Beginning Balance | $1,759 | $3,534 | $3,534 | $4,393 | |||||||
Granted, Weighted Average Grant Date Fair Value | 229 | 581 | 1,382 | ||||||||
Vested, Weighted Average Grant Date Fair Value | 2,400 | 828 | 1,742 | 161 | |||||||
Forfeitures, Weighted Average Grant Date Fair Value | 84 | ||||||||||
Non-vested, Weighted Average Grant Date Fair Value, Ending Balance | $1,759 | $3,534 | $3,534 | $4,393 |
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, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation charge | $731 | $922 | $2,682 | $2,826 |
Reversal of stock compensation charge related to restricted stock forfeited | -6 | |||
Total | 731 | 922 | 2,682 | 2,820 |
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 | 731 | 922 | 2,682 | 2,826 |
Reversal of stock compensation charge related to restricted stock forfeited | -6 | |||
Total | $731 | $922 | $2,682 | $2,820 |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2015 | Mar. 31, 2015 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Options exercise price range, lower limit | $7.35 | |
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 | 1,798,853 | 1,798,853 |
Options exercise price range, lower limit | $11.23 | $11.23 |
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, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||||
Net income attributable to Net 1 | $24,358 | $17,182 | $70,821 | $41,527 |
Undistributed earnings | 24,358 | 17,182 | 70,821 | 41,527 |
Percent allocated to common shareholders (Calculation 1) | 99.00% | 99.00% | 99.00% | 99.00% |
Numerator for earnings per share: basic and diluted | $24,102 | $16,944 | $70,011 | $40,917 |
Denominator for basic earnings per share: weighted-average common shares outstanding | 46,071 | 45,142 | 46,235 | 45,070 |
Effect of dilutive securities: Stock options | 178 | 91 | 137 | 106 |
Denominator for diluted earnings per share: adjusted weighted average common shares outstanding and assumed conversion | 46,249 | 45,233 | 46,372 | 45,176 |
Basic | $0.52 | $0.38 | $1.51 | $0.91 |
Diluted | $0.52 | $0.37 | $1.51 | $0.90 |
Basic weighted-average common shares outstanding and unvested restricted shares expected to vest (B) | 46,561 | 45,776 | 46,770 | 45,742 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Narrative) (Details) (USD $) | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Sep. 09, 2014 | Jun. 30, 2014 |
Supplemental Cash Flow Information [Abstract] | |||
Proceeds from sale of business | $1,895 | ||
Common stock, shares issued | 46,607,153 | 336,584 | 47,819,299 |
Closing price, per share | $13.93 |
Supplemental_Cash_Flow_Informa3
Supplemental Cash Flow Information (Schedule Of Supplemental Cash Flow Disclosures) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Supplemental Cash Flow Information [Abstract] | ||||
Cash received from interest | $4,200 | $3,422 | $11,940 | $9,886 |
Cash paid for interest | 915 | 1,651 | 3,328 | 5,317 |
Cash paid for income taxes | $3,086 | $1,570 | $28,639 | $16,097 |
Operating_Segments_Reconciliat
Operating Segments (Reconciliation Of Reportable Segments Revenue) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $151,121 | $138,126 | $461,693 | $398,903 |
South African Transaction Processing [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 52,640 | 53,511 | 160,761 | 166,446 |
International Transaction Processing [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 38,311 | 35,245 | 121,981 | 110,524 |
Financial Inclusion And Applied Technology [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 60,170 | 49,370 | 178,951 | 121,933 |
Operating Segments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 163,140 | 148,868 | 498,217 | 427,338 |
Operating Segments [Member] | South African Transaction Processing [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 57,999 | 57,397 | 176,678 | 173,312 |
Operating Segments [Member] | International Transaction Processing [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 38,311 | 35,245 | 121,981 | 110,524 |
Operating Segments [Member] | Financial Inclusion And Applied Technology [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 66,830 | 56,226 | 199,558 | 143,502 |
Corporate/Eliminations [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 12,019 | 10,742 | 36,524 | 28,435 |
Corporate/Eliminations [Member] | South African Transaction Processing [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 5,359 | 3,886 | 15,917 | 6,866 |
Corporate/Eliminations [Member] | Financial Inclusion And Applied Technology [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $6,660 | $6,856 | $20,607 | $21,569 |
Operating_Segments_Reconciliat1
Operating Segments (Reconciliation Of Reportable Segments Measure Of Profit Or Loss To Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating Income (Loss) | $31,966 | $23,949 | $95,906 | $59,151 |
Interest income | 4,211 | 3,438 | 11,888 | 9,993 |
Interest expense | -941 | -1,734 | -3,360 | -5,712 |
Income before income taxes | 35,236 | 25,653 | 104,434 | 63,432 |
Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating Income (Loss) | 37,703 | 30,238 | 112,751 | 80,590 |
Corporate/Eliminations [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating Income (Loss) | ($5,737) | ($6,289) | ($16,845) | ($21,439) |
Operating_Segments_Summary_Of_
Operating Segments (Summary Of Segment Information) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | $151,121 | $138,126 | $461,693 | $398,903 |
Operating income (loss) | 31,966 | 23,949 | 95,906 | 59,151 |
Depreciation and amortization | 10,060 | 10,442 | 30,391 | 30,245 |
Expenditures for long-lived assets | 6,307 | 4,848 | 24,822 | 17,309 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | 163,140 | 148,868 | 498,217 | 427,338 |
Operating income (loss) | 37,703 | 30,238 | 112,751 | 80,590 |
Depreciation and amortization | 6,493 | 5,784 | 19,084 | 17,792 |
Expenditures for long-lived assets | 6,307 | 4,848 | 24,822 | 17,309 |
Corporate/Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | 12,019 | 10,742 | 36,524 | 28,435 |
Operating income (loss) | -5,737 | -6,289 | -16,845 | -21,439 |
Depreciation and amortization | 3,567 | 4,658 | 11,307 | 12,453 |
South African Transaction Processing [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | 57,999 | 57,397 | 176,678 | 173,312 |
Operating income (loss) | 13,218 | 9,137 | 39,740 | 22,726 |
Depreciation and amortization | 1,726 | 1,653 | 5,271 | 5,475 |
Expenditures for long-lived assets | 1,514 | 303 | 3,678 | 2,903 |
International Transaction Processing [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | 38,311 | 35,245 | 121,981 | 110,524 |
Operating income (loss) | 6,579 | 4,642 | 19,671 | 15,305 |
Depreciation and amortization | 4,560 | 3,959 | 13,224 | 11,822 |
Expenditures for long-lived assets | 4,561 | 4,231 | 20,167 | 13,747 |
Financial Inclusion And Applied Technology [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | 66,830 | 56,226 | 199,558 | 143,502 |
Operating income (loss) | 17,906 | 16,459 | 53,340 | 42,559 |
Depreciation and amortization | 207 | 172 | 589 | 495 |
Expenditures for long-lived assets | $232 | $314 | $977 | $659 |
Income_Tax_Details
Income Tax (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 |
Income Tax [Abstract] | |||||
Effective tax rate | 29.20% | 33.30% | 30.80% | 34.90% | |
Unrecognized tax benefit | $1.20 | $1.20 | |||
Accrued interest related to uncertain tax positions | 0.2 | 0.2 | |||
Unrecognized tax benefits that would impact effective tax rate | $2.30 | $2.30 | $1.20 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 |
In Millions, unless otherwise specified | USD ($) | ZAR | Guarantee [Member] | Nedbank [Member] | Nedbank [Member] |
USD ($) | ZAR | ||||
Guarantor Obligations [Line Items] | |||||
Charge rate, minimum | 0.20% | ||||
Charge rate, maximum | 2.00% | ||||
Guarantee amount | $11.20 | 135 | $10.30 | 125 | |
Maximum payment amount under guarantee | $11.20 | 135 |