(Loss) Earnings Per Share

12 Months Ended

Jun. 30, 2020

(Loss) Earnings Per Share [Abstract]

20. (Loss) Earnings per share

The Company has issued redeemable common stock (refer to Note 15) which is redeemable at an amount other than fair value. Redemption of a class of common stock at other than fair value increases or decreases the carrying amount of the redeemable common stock and is reflected in basic earnings per share using the two-class method. There were no redemptions of common stock, or adjustments to the carrying value of the redeemable common stock during the years ended June 30, 2020, 2019 and 2018. Accordingly, the two-class method presented below does not include the impact of any redemption.

Basic (loss) 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 (loss) earnings per share have been calculated using the two-class method and basic (loss) earnings per share for the years ended June 30, 2020, 2019 and 2018, reflects only undistributed earnings. The computation below of basic (loss) earnings per share excludes the net loss 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 (loss) earnings per share have 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 (loss) 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 (loss) earnings per share includes the dilutive effect of a portion of the restricted stock granted to employees in August and November 2014, August 2015, August 2016, August 2017, March 2018, September 2018, and February 2020 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.

The following table presents net (loss) income attributable to Net1 and the share data used in the basic and diluted (loss) earnings per share computations using the two-class method for the years ended June 30, 2020, 2019 and 2018:

20. (Loss) Earnings per share

			2020		2019		2018
					(as restated)^(A)		(as restated)^(A)
			(in thousands except percent and per share data)
Numerator:
	Net (loss) earnings attributable to Net1		$	(78 358)	$	(311 007)	$	62 087
	Undistributed (loss) earnings			(78 358)		(311 007)		62 087
		Continuing		(97 214)		(311 761)		52 142
		Discontinued	$	18 856	$	754	$	9 945
	Percent allocated to common shareholders
	(Calculation 1)			98%		99%		98%
	Numerator for (loss) earnings per share: basic and diluted		$	(76 827)	$	(306 640)	$	61 052
		Continuing		(95 315)		(307 383)		51 273
		Discontinued	$	18 488	$	743	$	9 779

Denominator
	Denominator for basic (loss) earnings per share:
	weighted-average common shares outstanding			56 003		55 963		55 860
	Effect of dilutive securities:
		Stock options		-		18		51
		Denominator for diluted (loss) earnings per share: adjusted weighted average common shares outstanding and assumed conversion		56 003		55 981		55 911

(Loss) Earnings per share:
	Basic		$	(1,37)	$	(5,48)	$	1,10
		Continuing	$	(1,70)	$	(5,49)	$	0,92
		Discontinued	$	0,33	$	0,01	$	0,18
	Diluted		$	(1,37)	$	(5,48)	$	1,09
		Continuing	$	(1,70)	$	(5,49)	$	0,92
		Discontinued	$	0,33	$	0,01	$	0,17

(Calculation 1)
	Basic weighted-average common shares outstanding (A)			56 003		55 963		55 860
	Basic weighted-average common shares outstanding and unvested restricted shares expected to vest (B)			57 119		56 760		56 807
	Percent allocated to common shareholders
	(A) / (B)			98%		99%		99%

			2020		2019		2018
					(as restated)^(A)		(as restated)^(A)
			(in thousands except percent and per share data)
Numerator:
	Net (loss) earnings attributable to Net1		$	(78 358)	$	(311 007)	$	62 087
	Undistributed (loss) earnings			(78 358)		(311 007)		62 087
		Continuing		(97 214)		(311 761)		52 142
		Discontinued	$	18 856	$	754	$	9 945
	Percent allocated to common shareholders
	(Calculation 1)			98%		99%		98%
	Numerator for (loss) earnings per share: basic and diluted		$	(76 827)	$	(306 640)	$	61 052
		Continuing		(95 315)		(307 383)		51 273
		Discontinued	$	18 488	$	743	$	9 779

Denominator
	Denominator for basic (loss) earnings per share:
	weighted-average common shares outstanding			56 003		55 963		55 860
	Effect of dilutive securities:
		Stock options		-		18		51
		Denominator for diluted (loss) earnings per share: adjusted weighted average common shares outstanding and assumed conversion		56 003		55 981		55 911

(Loss) Earnings per share:
	Basic		$	(1,37)	$	(5,48)	$	1,10
		Continuing	$	(1,70)	$	(5,49)	$	0,92
		Discontinued	$	0,33	$	0,01	$	0,18
	Diluted		$	(1,37)	$	(5,48)	$	1,09
		Continuing	$	(1,70)	$	(5,49)	$	0,92
		Discontinued	$	0,33	$	0,01	$	0,17

(Calculation 1)
	Basic weighted-average common shares outstanding (A)			56 003		55 963		55 860
	Basic weighted-average common shares outstanding and unvested restricted shares expected to vest (B)			57 119		56 760		56 807
	Percent allocated to common shareholders
	(A) / (B)			98%		99%		99%

(A) Certain amounts have been restated to correct the misstatement discussed in Note 1.

Options to purchase 1,331,651, 864,579 and 660,698 shares of the Company’s common stock at prices ranging from $3.07 to $11.23 (2020), $6.20 to $11.23 (2019) and $10.59 to $24.46 (2018) per share were outstanding during the year ended June 30, 2020, 2019 and 2018, respectively, but were not included in the computation of diluted (loss) earnings per share because the options’ exercise prices were greater than the average market price of the Company’s common shares. The options, which expire at various dates through October 14, 2029, were still outstanding as of June 30, 2020.