Lesaka Provides Financial Guidance for Fiscal Year 2023 and Provides Clarity Regarding Shelf Registration Statement
Financial Guidance for FY23
On
The Company expects the following ranges for FY23:
- Revenue for the group between
$565 million and$600 million - Adjusted EBITDA for the group between
$31 million and$34 million - Merchant business segment Adjusted EBITDA between
$31 million and$33 million , this guidance comprises:- Strong fundamentals that underpin the growth of Connect remain unchanged.
- FY22 revenue in the pre-existing Lesaka Merchant business benefited from large one-off sales during the year, due to a catch up on back-order fulfilment in the POS division as a result of the global chip shortage.
- Consumer business segment Adjusted EBITDA between
$8 million and$10 million - Corporate/Eliminations2 expected at approximately
$2.5 million per quarter
- Merchant business segment Adjusted EBITDA between
This guidance reflects the Company’s estimates as of
- Adjusted EBITDA before stock-based compensation costs is a loss of
$15.6 million for FY22.
Adjusted EBITDA income (loss), is a non-GAAP measures and is described below under “Use of Non-GAAP Measures. - Excludes any potential once-off costs.
Management has provided its outlook regarding Adjusted EBITDA which is a non-GAAP financial measure and excludes certain charges. Management has not reconciled this non-GAAP financial measure to the corresponding GAAP financial measure because guidance for the various reconciling items is not provided. Management is unable to provide guidance for these reconciling items because they cannot determine their probable significance, as certain items are outside of the company's control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measure is not available without unreasonable effort.
Shelf registration statement on Form S-3 filed on
Lesaka’s shelf registration statement on Form S-3 filed on
The shelf registration statement relating to these securities has been filed with the
About
Use of non-GAAP measures
Operating income before depreciation and amortization and Adjusted EBITDA
Operating income before depreciation and amortization is GAAP operating (loss) income adjusted for depreciation and amortization. Adjusted EBITDA is earnings before interest, tax, depreciation and amortization (“EBITDA”), adjusted for unusual non-recurring items, costs related to acquisitions, stock-based compensation costs and transactions consummated or ultimately not pursued.
Reconciliation of GAAP operating loss to EBITDA loss and Adjusted EBITDA loss:
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2022 |
2021 |
2022 |
2021 |
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Operating loss - GAAP | $ | (10,122 | ) | $ | (13,600 | ) | $ | (40,195 | ) | $ | (53,872 | ) | |||||||
Depreciation and amortization | 5,491 | 1,218 | 7,575 | 4,347 | |||||||||||||||
Operating loss before depreciation and amortization | (4,631 | ) | (12,382 | ) | (32,620 | ) | (49,525 | ) | |||||||||||
Legacy processing adjustments | 1,629 | - | 1,629 | - | |||||||||||||||
Reorganization costs | - | - | 5,894 | - | |||||||||||||||
Allowance for doubtful EMI loans receivable | - | - | - | 4,739 | |||||||||||||||
Transaction costs | 4,339 | 337 | 6,460 | 1,879 | |||||||||||||||
Adjusted EBITDA loss | $ | 1,337 | $ | (12,045 | ) | $ | (18,637 | ) | $ | (42,907 | ) |
Forward Looking Statements
This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as “expects,” “estimates,” “projects,” “believes,” “anticipates,” “plans,” “could,” “would,” “may,” “will,” “intends,” “outlook,” “focus,” “seek,” “potential,” “mission,” “continue,” “goal,” “target,” “objective,” derivations thereof, and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In this press release, statements relating to future financial results and future financing and business opportunities are forward-looking statements. Additional information concerning factors that could cause actual events or results to differ materially from those in any forward-looking statement is contained in the company’s Form 10-K for the fiscal year ended
Investor Relations Contact:
Phillipe Welthagen
Email : phillipe.welthagen@lesakatech.com
ICR
Email: LesakaIR@icrinc.com
Media Relations Contact:
Email: Janine@thenielsennetwork.com

Source: Lesaka Technologies, Inc.