Charm Care : Summary of Financial Results for the second quarter 2022

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Six Months Ended December 31, 2021 (Based on Japanese GAAP)

					February 7, 2022
Company name:	CHARM CARE CORPORATION
Stock exchange listing:	Tokyo
Stock code:	6062	URL https://www.charmcc.jp/
Representative:	Chairman and President	Takahiko Shimomura
Inquiries:	Director Administration Division General	Yukihiro Satomi	TEL [phone]
Manager
Scheduled date to file Quarterly Securities Report:	February 7, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended December 31, 2021 (from July 1, 2021 to December 31, 2021)

(1) Consolidated operating results (cumulative)								Percentages indicate year-on-year changes
	Net sales				Operating profit	Ordinary profit		Profit attributable to
						owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen			%	Millions of yen		%
Six months ended December 31, 2021	12,511		-		889	-		880			-		553		-
Six months ended December 31, 2020	11,365		-		1,115	-		1,237			-		796		-
	Earnings per share		Diluted earnings per share
			Yen					Yen
Six months ended December 31, 2021			16.98					16.95
Six months ended December 31, 2020			24.43					24.39
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio
	Millions of yen			Millions of yen					%
As of December 31, 2021		35,797					10,046				27.9
As of June 30, 2021		28,597					11,125				38.7
2. Cash dividends
						Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen				Yen			Yen				Yen			Yen
Year ended June 30, 2021		-			0.00			-				12.00			12.00
Year ending June 30, 2022		-			0.00
Year ending June 30, 2022 (Forecast)									-				15.00			15.00

3. Forecast of consolidated financial results for the year ending June 30, 2022 (from July 1, 2021 to June 30, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
Full year	30,000	-	2,930		-	2,900		-	3,000		-	92.00

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4. Notes

1. Changes in significant subsidiaries during the six months ended December 31, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

Yes

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
Changes in accounting policies due to other reasons:	Yes
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of December 31, 2021	32,712,000	shares	As of June 30, 2021	32,712,000	shares
Number of treasury shares at the end of the period
	As of December 31, 2021	95,328	shares	As of June 30, 2021	103,528	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended December 31, 2021	32,612,572	shares	Six months ended December 31, 2020	32,608,495	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of June 30, 2021	As of December 31, 2021
Assets
Current assets
Cash and deposits	5,940,654	2,923,740
Accounts receivable - trade	2,242,531	2,373,735
Real estate for sale	-	1,912,750
Real estate for development	1,111,272	33,000
Money held in trust	-	4,149,712
Other	500,551	554,400
Allowance for doubtful accounts	(2,086)	(2,133)
Total current assets	9,792,923	11,945,206
Non-current assets
Property, plant and equipment
Buildings and structures, net	4,837,879	8,491,542
Land	2,665,758	4,499,854
Leased assets, net	233,092	213,213
Construction in progress	956,587	773,852
Other, net	316,086	403,186
Total property, plant and equipment	9,009,403	14,381,649
Intangible assets
Goodwill	456,880	3,124,768
Other	91,373	75,912
Total intangible assets	548,253	3,200,680
Investments and other assets
Investment securities	-	300,000
Guarantee deposits	4,317,407	4,518,087
Money held in trust	4,097,341	-
Deferred tax assets	384,171	937,570
Other	448,104	514,158
Total investments and other assets	9,247,025	6,269,817
Total non-current assets	18,804,682	23,852,147
Total assets		28,597,605	35,797,353

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			(Thousands of yen)
		As of June 30, 2021	As of December 31, 2021
Liabilities
Current liabilities
Accounts payable - trade	221,983	240,262
Short-term borrowings	2,543,000	3,402,000
Current portion of long-term borrowings	862,878	1,437,016
Lease obligations	100,494	94,954
Income taxes payable	612,402	415,940
Accounts payable - other	1,336,924	1,557,930
Unearned revenue	1,720,396	-
Contract liabilities	-	7,956,022
Provision for bonuses	104,638	118,538
Other	328,913	348,620
Total current liabilities	7,831,631	15,571,285
Non-current liabilities
Long-term borrowings	4,651,806	8,788,593
Lease obligations	153,455	137,816
Retirement benefit liability	518,576	566,723
Long-term unearned revenue	3,922,038	-
Asset retirement obligations	181,333	208,347
Deferred tax liabilities	-	244,917
Other	212,883	233,089
Total non-current liabilities	9,640,095	10,179,488
Total liabilities	17,471,726	25,750,774
Net assets
Shareholders' equity
Share capital	2,759,250	2,759,250
Capital surplus	2,748,250	2,748,250
Retained earnings	5,697,974	4,596,767
Treasury shares	(82,954)	(69,522)
Total shareholders' equity	11,122,519	10,034,744
Accumulated other comprehensive income
Deferred gains or losses on hedges	(11,130)	(8,004)
Remeasurements of defined benefit plans	(35,587)	(30,238)
Total accumulated other comprehensive income	(46,717)	(38,242)
Share acquisition rights	50,076	50,076
Total net assets	11,125,878	10,046,578
Total liabilities and net assets		28,597,605	35,797,353

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Six months ended	Six months ended
		December 31, 2020	December 31, 2021
Net sales	11,365,114	12,511,137
Cost of sales	9,278,604	10,509,083
Gross profit	2,086,509	2,002,053
Selling, general and administrative expenses	970,906	1,112,861
Operating profit	1,115,603	889,191
Non-operating income
Interest income	1,656	1,597
Subsidy income	129,008	9,689
Other	18,102	15,327
Total non-operating income	148,767	26,615
Non-operating expenses
Interest expenses	23,458	33,641
Other	3,575	1,882
Total non-operating expenses	27,033	35,524
Ordinary profit	1,237,337	880,283
Extraordinary income
Subsidy income	-	13,097
Total extraordinary income	-	13,097
Extraordinary losses
Loss on tax purpose reduction entry of non-current assets	-	13,097
Total extraordinary losses	-	13,097
Profit before income taxes	1,237,337	880,283
Income taxes	440,770	326,617
Profit	796,566	553,665
Profit attributable to owners of parent		796,566	553,665

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