Consolidated Financial Summary for the First Nine Months of Fiscal Year Ending March 31, 2022
(Japanese Accounting Standards)
February 10, 2022 | ||||||||||||||||||||
Avex Inc. | Tokyo Stock Exchange, First Section | |||||||||||||||||||
Code No: 7860 | (URL: https://avex.com/jp/en/) | |||||||||||||||||||
Representative: Katsumi Kuroiwa, President, CEO | ||||||||||||||||||||
Contact: Shinji Hayashi, Representative Director, CFO | TEL: (03) 6447-5366 | |||||||||||||||||||
Scheduled date to submit the Quarterly Securities Report (Shihanki Houkokusho): February 10, 2022 | ||||||||||||||||||||
Scheduled date for commencement of dividend payments: - | ||||||||||||||||||||
Supplementary documents for financial results: Yes | ||||||||||||||||||||
Financial results briefing: None | ||||||||||||||||||||
Note: All amounts are rounded down to the nearest million yen. | ||||||||||||||||||||
1. Consolidated operating results for the nine-month period of fiscal year ending March 31, 2022 | ||||||||||||||||||||
(April 1, 2021 to December 31, 2021) | ||||||||||||||||||||
(1) Consolidated operating results | Note: Figures in percentages denote the year-on-year change. | |||||||||||||||||||
Net sales | Operating income | Ordinary income | Profit (loss) attributable to | |||||||||||||||||
owners of parent | ||||||||||||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | |||||||||||||
Nine-Month Period of Fiscal | 76,032 | 39.0 | 3,926 | - | 4,012 | - | 2,407 | - | ||||||||||||
Year Ending March 31, 2022 | ||||||||||||||||||||
Nine-Month Period of Fiscal | 54,707 | (45.5) | (3,610) | - | (3,815) | - | (4,284) | - | ||||||||||||
Year Ended March 31, 2021 | ||||||||||||||||||||
(Note) Comprehensive income | Nine-month period | of fiscal | year ending March 31, 2022: ¥5,150 million (-%) | |||||||||||||||||
Nine-month period of fiscal year ended March 31, 2021: -¥3,535 million (-%) | ||||||||||||||||||||
Net income per share | Diluted net income per share | |||||||||||||||||||
yen | yen | |||||||||||||||||||
Nine-Month Period of Fiscal | 54.67 | - | ||||||||||||||||||
Year Ending March 31, 2022 | ||||||||||||||||||||
Nine-Month Period of Fiscal | (98.31) | - | ||||||||||||||||||
Year Ended March 31, 2021 | ||||||||||||||||||||
(2) Consolidated financial position | ||||||||||||||||||||
Total assets | Net assets | Shareholders' equity ratio | ||||||||||||||||||
million yen | million yen | % | ||||||||||||||||||
As of December 31, 2021 | 104,006 | 63,308 | 58.2 | |||||||||||||||||
As of March 31, 2021 | 105,105 | 58,339 | 52.6 | |||||||||||||||||
(Reference) Shareholders' equity | As of December 31, 2021: ¥60,546 million | |||||||||||||||||||
As of March 31, 2021: ¥55,306 million | ||||||||||||||||||||
2. Status of dividend payments | ||||||||||||||||||||
Annual dividends | ||||||||||||||||||||
(Record date) | End of first quarter | End of second quarter | End of third quarter | End of year | Annual | |||||||||||||||
yen | yen | yen | yen | yen | ||||||||||||||||
Year ended March 31, 2021 | - | 25.00 | - | 96.00 | 121.00 | |||||||||||||||
Year ending March 31, 2022 | - | 25.00 | - | |||||||||||||||||
Year ending March 31, 2022 | 25.00 | 50.00 | ||||||||||||||||||
(forecast) | ||||||||||||||||||||
(Note) Revisions to dividend forecasts | published most recently: | None |
3. Forecasts for consolidated operating results for the year ending March 31, 2022 (April 1, 2021 to March 31, 2022)
Note: Figures in percentages denote the year-on-year change.
Operating income | Profit (loss) attributable | Net income per share | |||
to owners of parent | |||||
million yen | % | million yen | % | Yen | |
Year ending March 31, 2022 | 3,000 | - | 1,800 | (86.0) | 40.65 |
(Note) Revisions to earnings forecasts published most recently: None
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- Notes
- Changes in significant subsidiaries during term under review (changes in specific subsidiaries in conjunction with changes in scope of consolidation): None
New: - company (Company name) - | Excluded: - company (Company name) - |
- Application of particular accounts procedures to the preparation of quarterly consolidated financial statements: None
-
Changes in accounting policies and changes in or restatement of accounting estimates
1. Changes in accounting policies in conjunction with revisions to accounting standards: Yes
2. | Changes in accounting policies other than 1: | None |
3. | Changes in accounting estimates: | None |
4. | Restatement: | None |
(4) Outstanding shares (ordinary shares) | |
a. Shares outstanding at end of term (including treasury stock) | |
As of December 31, 2021: | 45,440,100 shares |
As of March 31, 2021: | 45,343,500 shares |
b. Treasury stock at end of term | |
As of December 31, 2021: | 410,034 shares |
As of March 31, 2021: | 3,927,388 shares |
c. Average number of share (quarter-to-date) | |
Nine-month period of fiscal year ending March 31, 2022: | 44,036,807 shares |
Nine-month period of fiscal year ended March 31, 2021: | 43,581,259 shares |
- This financial summary is outside the scope of audit procedures by certified public accountants and audit firm.
-
Explanation for forecasts of business results and other notes
The forecasts for operating results and others contained in this release are based on data and information that the Group has obtained so far and specific assumptions that the Group judges to be reasonable. Please note, therefore, that the actual results and others may greatly differ from the forecasts due to various factors.
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Avex Inc. (7860) Consolidated Financial Summary for Nine-Month Period of Fiscal Year Ending March 31, 2022
1. Qualitative Information on Consolidated Results, etc. for the Nine-Month Period of Fiscal Year Ending March 31, 2022
(1) Summary of Operating Results
(Unit: million yen)
Fiscal year | Fiscal year | Fiscal year | Fiscal year | Fiscal year | |
Nine-month period results | ended March | ended March | ended March | ended March | ending March |
31, 2018 | 31, 2019 | 31, 2020 | 31, 2021 | 31, 2022 | |
Net sales | 121,075 | 122,621 | 100,312 | 54,707 | 76,032 |
Cost of sales | 86,050 | 87,729 | 71,437 | 37,368 | 48,392 |
Gross profit | 35,024 | 34,891 | 28,875 | 17,339 | 27,640 |
Gross profit margin | 28.9% | 28.5% | 28.8% | 31.7% | 36.4% |
Personnel expenses | 9,843 | 9,936 | 8,860 | 8,047 | 8,516 |
Sales promotion and advertising | 6,773 | 6,931 | 5,932 | 4,099 | 5,136 |
expenses | |||||
General expenses | 13,754 | 12,070 | 11,732 | 8,803 | 10,060 |
Total SG&A expenses | 30,372 | 28,938 | 26,526 | 20,950 | 23,713 |
Operating income (loss) | 4,651 | 5,952 | 2,349 | (3,610) | 3,926 |
Operating margin | 3.8% | 4.9% | 2.3% | -% | 5.2% |
In the entertainment industry, to which the Group belongs, the production of music software, including music videos, was down 0.4% year on year, to 193,638 million yen (January to December 2021; according to a survey by the Recording Industry Association of Japan). Sales of paid music downloads were up 14.6% year on year, to 65,916 million yen (January to September 2021; according to a survey by the Recording Industry Association of Japan). In the video-related market, sales of video software fell 0.2% year on year, to 136,926 million yen (January to December 2021; according to a survey by the Japan Video Software Association). The digital video distribution market is expected to continue to grow, given the enhancement of video distribution services and the environmental changes that will improve user convenience, such as responses to TV devices and the dissemination of 5G.
In these business conditions, the Group has been seeking to achieve medium- to long-term growth through working to create strong intellectual properties by discovering and developing artists, talent and creators and reinforcing the lineup of works handled with the planning and development of original works including music, anime productions, video content and the licensing of other companies' works. The Group has also actively facilitated the joint development of new content and the overseas expansion of content owned by the Company in collaboration with promising partners both in Japan and overseas who operate globally.
During the nine-month period of the fiscal year under review, consolidated net sales increased to 76,032 million yen (up 39.0% year on year), reflecting a rise in sales from the music business in particular due to the weakened impact of COVID-19. Consolidated operating income came to 3,926 million yen (compared to a consolidated operating loss of 3,610 million yen in the same period of the previous fiscal year). Consolidated profit attributable to owners of parent was 2,407 million yen (compared to a loss attributable to owners of parent of 4,284 million yen in the same period of the previous fiscal year).
(2) Summary of Financial Position
Assets totaled 104,006 million yen at the end of the third quarter under review after a decrease of 1,098 million yen from the end of the previous consolidated fiscal year. This was chiefly attributable to a decrease of 9,707 million yen in cash and deposits, more than offsetting increases of 5,132 million yen and 3,594 million yen in notes and accounts receivable-trade and investment securities, respectively.
Liabilities were reduced by 6,067 million yen from the end of the previous consolidated fiscal year, to 40,698 million yen. This was primarily due to a decrease of 5,613 million yen in income taxes payable.
Net assets increased 4,968 million yen from the end of the previous consolidated fiscal year, to 63,308 million yen. This was mainly due to a decrease of 5,065 million yen in treasury shares (increase in net assets) and an increase of 2,732 million yen in valuation difference on available-for-sale securities, despite a decrease of 2,709 million yen in retained earnings.
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Avex Inc. (7860) Consolidated Financial Summary for Nine-Month Period of Fiscal Year Ending March 31, 2022
(3) Summary of Consolidated Financial Forecasts and Other Future Forecast Information
With respect to the summary of consolidated financial forecasts for the fiscal year ending March 31, 2022, the financial forecasts presented in the "Consolidated Financial Summary for Interim Period of Fiscal Year Ending March 31, 2022," which was announced on November 4, 2021, remain unchanged because losses are expected to be posted in the fourth quarter of the fiscal year under review.
If any revision to the financial forecasts becomes necessary in the future, the Company will promptly disclose it.
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Avex Inc. (7860) Consolidated Financial Summary for Nine-Month Period of Fiscal Year Ending March 31, 2022
2. Quarterly Consolidated Financial Statements and Major Notes
(1) Quarterly Consolidated Balance Sheets
(Unit: million yen) | |||
As of March 31, 2021 | As of December 31, 2021 | ||
(Assets) | |||
Current assets | |||
Cash and deposits | 52,654 | 42,947 | |
Notes and accounts receivable-trade | 14,120 | 19,252 | |
Merchandise and finished goods | 1,366 | 1,045 | |
Programs and works in progress | 4,652 | 4,202 | |
Raw materials and supplies | 300 | 341 | |
Other current assets | 11,904 | 12,656 | |
Allowance for doubtful accounts | (281) | (350) | |
Total current assets | 84,716 | 80,095 | |
Noncurrent assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 1,082 | 1,166 | |
Land | 1,548 | 1,548 | |
Other property, plant and equipment, net | 479 | 685 | |
Total property, plant and equipment | 3,110 | 3,400 | |
Intangible assets | 3,864 | 4,145 | |
Investments and other assets | |||
Investment securities | 7,143 | 10,738 | |
Other investments and other assets | 6,320 | 5,810 | |
Allowance for doubtful accounts | (49) | (183) | |
Total investments and other assets | 13,414 | 16,365 | |
Total noncurrent assets | 20,389 | 23,911 | |
Total assets | 105,105 | 104,006 | |
(Liabilities) | |||
Current liabilities | |||
Notes and accounts payable-trade | 1,457 | 1,995 | |
Current portion of long-term loans payable | 54 | 4 | |
Accounts payable - other | 18,341 | 19,062 | |
Income taxes payable | 6,040 | 427 | |
Provision for bonuses | 500 | 661 | |
Allowance for returned goods | 2,892 | 2,688 | |
Provision for point card certificates | 37 | 60 | |
Provision for contingent loss | 225 | 125 | |
Other current liabilities | 15,588 | 13,413 | |
Total current liabilities | 45,138 | 38,439 | |
Noncurrent liabilities | |||
Long-term loans payable | 4 | 1 | |
Liabilities for retirement benefits | 390 | 425 | |
Other noncurrent liabilities | 1,231 | 1,831 | |
Total noncurrent liabilities | 1,626 | 2,259 | |
Total liabilities | 46,765 | 40,698 |
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Avex Inc. published this content on 21 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 February 2022 07:00:05 UTC.