KYORITSU MAINTENANCE CO., LTD. Kyoritsu Maintenance Co., Ltd.
(Securities Code: 9616)
Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2022
［JGAAP］
Feb 2022
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Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending
March 31, 2022 [based on Japanese GAAP]
Feb 9, 2022 | ||||
Name of listed company | Kyoritsu Maintenance Co., Ltd. | Listed exchange: Tokyo | ||
Code | 9616 | URL https://www.kyoritsugroup.co.jp/ | ||
Representative | (Title) | President | (Name) Koji Nakamura | |
Contact | (Title) | Managing Director | (Name) Manabu Takaku | Tel +81-3-5295-7778 |
Scheduled filing date of Quarterly Report: | Feb 14, 2022 | |||
Scheduled date of start of dividend payment: | - |
Supplementary materials for the quarterly financial results: Yes
Investor conference for the quarterly financial results: None
(Rounded down to the nearest million yen)
1. Consolidated financial results for the first nine months of the fiscal year ending March 31, 2022 (April 1, 2021 to December 31, 2021)
- Consolidated Operating Results
(Percentage figures represent year-over-year changes)
Profit (loss) | |||||||||||||
Net sales | Operating profit | Ordinary profit | attributable to owners | ||||||||||
of parent | |||||||||||||
Million | % | Million yen | % | Million | % | Million | % | ||||||
yen | yen | yen | |||||||||||
The nine months ended December 31, | 105,066 | 15.0 | -5,253 | － | -4,871 | － | -3,930 | － | |||||
2021 | |||||||||||||
The nine months ended December 31, | 91,343 | -31.4 | -3,744 | － | -3,753 | － | -7,653 | － | |||||
2020 | |||||||||||||
(Note) Comprehensive income: | The nine months ended December 31, 2021: -3,929 million yen (-%) | ||||||||||||
The nine months ended December 31, 2020: -7,540 million yen (-%) | |||||||||||||
Profit (loss) | Diluted net income | ||||||||||||
per share | per share | ||||||||||||
Yen | Yen | ||||||||||||
The nine months ended December 31, | -100.82 | - | |||||||||||
2021 | |||||||||||||
The nine months ended December 31, | -196.29 | - | |||||||||||
2020 | |||||||||||||
(Note) Diluted net income per share is omitted since the Company recorded net loss per share for this period and there are no potentially dilutive shares
(2) Consolidated financial position | ||||||
Total assets | Total net assets | Equity ratio | Net assets per share | |||
Million yen | Million yen | % | Yen | |||
As of December 31, 2021 | 240,529 | 66,065 | 27.5 | 1,694.44 | ||
As of March 31, 2021 | 239,032 | 70,784 | 29.6 | 1,815.45 | ||
(Reference) Shareholders' Equity: | As of December 31, 2021: 66,065 million yen As of March 31, 2021: 70,784 million yen |
2. | Dividends | ||||||
Annual dividends | |||||||
Q1 end | Q2 end | Q3 end | Year end | Total | |||
Year ended March 31, | Yen | Yen | Yen | Yen | Yen | ||
－ | 10.00 | － | 10.00 | 20.00 | |||
2021 | |||||||
Year | ending March | － | 10.00 | ||||
31, 2022 | |||||||
Year ending March | － | － | 10.00 | 20.00 | |||
31,2022 (Forecast) | |||||||
(Note) Revision from most recently announced dividends forecasts: None |
3. Forecasted consolidated results for the fiscal year ending March 31, 2022 (April 1, 2021 to March 31, 2022)
(Percentage figures represent year-over-year changes) | ||||||||||||||
Net income | Net income pershare | |||||||||||||
Net sales | Operating profit | Ordinary profit | attributable to | |||||||||||
ownersof the parent | ||||||||||||||
Million | % | Million | % | Million | % | Million | % | Yen | ||||||
yen | yen | yen | yen | |||||||||||
Full Year | 173,000 | 42.6 | 2,000 | － | 1,900 | － | 100 | － | 2.56 |
(Note) Revision from most recently announced earnings forecasts: None
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*Notes
- Changes in major subsidiaries during the period under review (changes in specific subsidiaries accompanied by changes in the scope of consolidation): None
- Application of special accounting treatment in the preparation of the quarterly consolidated financial statements: Yes
(Note) For details, please see "(3) Notes on Quarterly Consolidated Financial Statements, (Application of special accounting procedures in the preparation of quarterly consolidated financial statements)" under "2. Quarterly Financial Statements and Major Notes" on page 11.
(3) Changes in accounting policies, changes in accounting estimates, and restatements | |
(i) Changes in accounting policies due to revision of accounting standards, etc.: | Yes |
(ii) Changes in accounting policies other than those under (i) above: | None |
(iii) Changes in accounting estimates: | None |
(iv) Retrospective restatements: | None |
(4) Number of issued shares (common stock) | ||||
(i) Number of issued shares at the end of | As of December | 39,219,818 | Year ended | 39,219,818 |
the period (including treasury shares) | 31, 2021 | shares | March 31, 2021 | shares |
(ii) Number of treasury shares at the end | As of December | 230,237 | Year ended | 229,475 |
of the period | 31, 2021 | Shares | March 31, 2021 | shares |
(iii) Average number of shares | As of December | 38,990,010 | As of December 31, | 38,990,303 |
during the period | 31, 2021 | shares | 2020 | shares |
*Summaries of financial results are not subject to auditing by a certified public accountant or auditing firm.
*Explanation of the appropriate use of earnings forecasts and other special notes (Note concerning forward-looking statements)
The forward-looking statements, including earnings forecasts and other future projections contained in this document are based on information available to the Company at the time of preparation and on certain assumptions deemed reasonable by the Company. As such, they do not constitute an assurance that the Company promises to achieve these projected results. Actual business results may differ materially from the forecasts due to various factors.
Please see "(3) Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information" under "1.Qualitative Information on Quarterly Results" on page "6" for the assumptions used for the forecast of financial results and notes concerning the use of the forecast of financial results.
(How to obtain supplementary materials of financial results)
Supplementary materials of quarterly financial results are posted on the Company website.
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Table of contents for attatched materials | ||
(2) | Explanation of Financial Position .................................................................................................................................................... | 6 |
(3) | Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information ......................................................... | 6 |
2. Quarterly Financial Statements and Major Notes .................................................................................................................................. | 7 | |
(1) | Quarterly Consolidated Balance Sheet............................................................................................................................................. | 7 |
(2) | Quarterly Consolidated Income Statement and Quarterly Consolidated Statement of Comprehensive Income .............................. | 9 |
(Quarterly Consolidated Income Statement) ..................................................................................................................................... | 9 | |
(Nine Months Ended December 31, 2021) ........................................................................................................................................ | 9 | |
(Quarterly consolidated statement of comprehensive income) ........................................................................................................ | 10 | |
(Nine Months Ended December 31, 2021) ...................................................................................................................................... | 10 | |
(3) | Notes on Quarterly Consolidated Financial Statements ................................................................................................................. | 11 |
(Notes on the going concern assumption)........................................................................................................................................ | 11 | |
(Notes concerning any notable changes in shareholders' equity) .................................................................................................... | 11 | |
(Application of special accounting procedures in the preparation of quarterly consolidated financial statements) ......................... | 11 | |
(Changes in accounting policies)..................................................................................................................................................... | 11 | |
(Additional information) ................................................................................................................................................................. | 12 | |
(Segment Information etc.).............................................................................................................................................................. | 12 |
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1.Qualitative Information on Quarterly Results
-
Explanation of Operating Results
During the first nine months of the current fiscal year, the Japanese economy gradually resumed business activities following the lifting of priority measures to prevent the spread of COVID-19 and state of emergency, but the future of the economy became uncertain due to the increase in the number of infected people at the end of last year.
Under these circumstances, the Group continued to take extensive measures to prevent the spread of infection (such as temperature checks, disinfection, photocatalysis, and non-contact measures) at all Group offices so that customers can use the facilities safely. In addition, as the financial support for dormitory residents, the Group has continued to implement the "Program to Support School Attendance under COVID-19(interest-free loans for dormitory fees), " etc. In addition, the Group has been working to save costs by utilizing support systems such as Employment Adjustment Subsidy, etc. As a sales initiative, the Group has also been working to strengthen sales of new services such as "WORK PLACE DORMY (offices and hotels where people can stay and reside)," which responds to new ways of working, and a comprehensive membership program "Kyoritsu General Corporate Membership Program: Shiki Club," which is designed to be used for expanding welfare services.
As a result, results for the first nine months of the current fiscal year show net sales of 105,066 million yen (up 15.0% YoY). The third quarter of the current fiscal year returned to profitability, and then, for the first nine months of the current fiscal year, operating loss was 5,253 million yen (vs. operating loss of 3,744 million yen in the same period of the previous year); ordinary loss was 4,871 million yen (vs. ordinary loss of 3,753 million yen); and loss attributable to owners of parent was 3,930 million yen (vs. loss of 7,653 million yen). In the previous year, the Company temporarily closed hotels and restaurants in response to the request for closure due to the declaration of a state of emergency. And the Company posted that resulting profit and loss as extraordinary income (loss). However, after reclassifying them into the ordinary accounts, the operating loss and ordinary loss improved by 1,380 million yen and by 1,771 million yen YoY, respectively.
Although the outlook for the future remains uncertain due to the increase in the number of COVID-19 cases, the Company will continue to make group-wide concerted efforts to recover its business performance, including the revitalization of real estate.
Segment business performance is reviewed below.
(i) Dormitory Business
In the Dormitory Business, the occupancy rate at the beginning of the fiscal year decreased by 1.6 percentage points from the previous year to 92.1% due to the postponement of foreign students' arrival in Japan and the cancellation of training programs for new employees. However, due to the effect of increased revenue from new openings (12 offices, 1,204 rooms) and newly commissioned offices, etc, net sales were largely on par with the same period of the previous fiscal year.
As a result, net sales amounted to 34,022 million yen (down 0.9% YoY) and operating profit was 2,997 million yen (down 14.1% YoY), mainly due to a decline in the occupancy rates.
(ii) Hotel Business
In the Hotel Business segment, the Company opened "Natural Hot springs Kaga-no-Hosen Onyado Nono Kanazawa" in the Dormy Inn Business and "La Vista Kusatsu Hills" in the Resorts Business during the current period. Despite the intermittent priority measures to prevent the spread of the COVID-19 and the declaration of a state of emergency, both the Dormy Inn Business and Resorts Business recorded a significant increase in revenues compared with the same period of the previous fiscal year, when the "Go To Travel Campaign" was launched. This was due to a recovery in occupancy rates by domestic travelers, especially on weekends, and high occupancy rates during the Golden Week holidays in May. The Company returned to profitability in the third quarter of the current fiscal year.
As a result, net sales amounted to 46,232 million yen (up 27.4% YoY) and operating loss was 7,296 million yen (vs. operating loss of 6,392 million yen in the same period of the previous fiscal year). In the same period of the previous fiscal year, the Company temporarily closed a large number of hotels in response to requests for closures following the declaration of a state of emergency, and posted the profit and loss as extraordinary income (loss). However, after reclassifying them to ordinary accounts, the operating loss improved by 1,971 million yen compared with 9,267 million yen for the same period of last year.
Currently, there are some cancellations and a decrease in the number of new bookings as number of people infected by COVID-19 increase. However, the Group will continue to accelerate the sales promotion of the "NEW LOCAL STAY Plan (local-only plan)" and the aforementioned new services, as well as to strategically open new hotels in order to achieve an early recovery in business performance, while striving for medium-to-long term business expansion with an eye on post COVID-19.
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KYORITSU Maintenance Co. Ltd. published this content on 17 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 February 2022 01:13:05 UTC.
