Three-Month Consolidated Financial Report
for the Fiscal Year Ending October 31, 2024 (Japan GAAP)
Listed Company Name | Kanamoto Co., Ltd. | March 8, 2024 | |
Company Code Number | 9678 | ||
Listing Exchanges | Tokyo Stock Exchange, Sapporo Stock Exchange | ||
URL | https://www.kanamoto.co.jp | ||
Representative | Tetsuo Kanamoto | President and CEO | |
Inquiries | Shun Hirose | Director & Corporate Officer, Division Manager, | |
Accounting Division | |||
TEL 81-11-209-1600 | |||
Scheduled date for submission of Quarterly Report | March 15, 2024 | ||
Scheduled date for commencement of dividend payments | - | ||
Preparation of Quarterly Settlement Supplementary Explanatory Materials | No | ||
Quarterly Earnings Briefings | No |
(Numbers less than one million yen have been rounded down)
1. Consolidated Operating Results for the Three-Month Period of the Fiscal Year Ending October 31, 2024
(November 1, 2023 - January 31, 2024) | ||||||||||||||||
(1) Consolidated Operating Results (Cumulative) | (Percentages show the change from the prior year) | |||||||||||||||
Net Sales | Operating Profit | Ordinary Profit | Profit Attributable to | |||||||||||||
Owners of Parent | ||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||||||
Fiscal year ending | ||||||||||||||||
October 31, 2024: | 50,118 | 1.2 | 2,985 | -3.6 | 3,200 | -2.1 | 1,778 | 2.3 | ||||||||
First quarter | ||||||||||||||||
Fiscal year ended | ||||||||||||||||
October 31, 2023: | 49,508 | 5.9 | 3,096 | -6.5 | 3,267 | -6.9 | 1,738 | -16.1 | ||||||||
First quarter | ||||||||||||||||
(Note) Comprehensive | income (millions | of yen) | ||||||||||||||
Fiscal year ending October 31, 2024, First quarter | 2,271 | (56.5%) | ||||||||||||||
Fiscal year ended October 31, 2023, First quarter | 1,451 | (-45.0%) | ||||||||||||||
Earnings per | Earnings per | |||||||||||||||
Share on a Fully | ||||||||||||||||
Share | ||||||||||||||||
Diluted Basis | ||||||||||||||||
Yen | Yen | |||||||||||||||
Fiscal year ending | ||||||||||||||||
October 31, 2024: | 49.47 | - | ||||||||||||||
First quarter | ||||||||||||||||
Fiscal year ended | ||||||||||||||||
October 31, 2023: | 47.31 | - | ||||||||||||||
First quarter | ||||||||||||||||
(2) Consolidated Financial Position | ||||||||||||||||
Total Assets | Net Assets | Equity Ratio | ||||||||||||||
Millions of yen | Millions of yen | % | ||||||||||||||
As of January 31, | 321,953 | 143,802 | 41.8 | |||||||||||||
2024 | ||||||||||||||||
As of October 31, | 316,440 | 143,677 | 42.5 | |||||||||||||
2023 | ||||||||||||||||
(Reference) Equity (millions of yen) | ||||||||||||||||
As of January 31, 2024 | 134,437 | |||||||||||||||
As of October 31, 2023 | 134,495 |
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2. Dividends
Annual Dividends per Share | |||||||||
End of | End of | End of | Year-end | Full-year | |||||
first quarter | second quarter | third quarter | |||||||
Yen | Yen | Yen | Yen | Yen | |||||
Fiscal year ended October 31, | - | 35.00 | - | 40.00 | 75.00 | ||||
2023 | |||||||||
Fiscal year ending October 31, | - | ||||||||
2024 | |||||||||
Fiscal year ending October 31, | 35.00 | - | 40.00 | 75.00 | |||||
2024 (projected) | |||||||||
(Note) Has the Company revised its | most recently released dividend projection?: No |
3. Projected Consolidated Operating Results for the Fiscal Year Ending October 31, 2024 (November 1, 2023 - October 31, 2024)
(Percentages show the change from the prior year)
Net Sales | Operating Profit | Ordinary Profit | Profit Attributable to | Earnings per | |||||
Owners of Parent | Share | ||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
Interim period | 101,000 | 3.8 | 5,900 | 10.7 | 6,000 | 9.3 | 3,400 | 16.3 | 95.31 |
Full year | 205,300 | 4.0 | 14,100 | 17.9 | 14,300 | 14.5 | 8,300 | 23.5 | 234.09 |
(Note) Has the Company revised its most recently released projected consolidated operating results during the quarter?: No
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Notes
- Changes in material subsidiaries during the period under review (changes in specific subsidiaries in conjunction with a change in the scope of consolidation): No
- Application of special accounting method in the preparation of quarterly consolidated financial statements: No
- Changes in accounting principles, changes in accounting estimates and retrospective restatements
- Changes in accounting policy in conjunction with revision of accounting standards: No
- Changes other than the above: No
- Changes in accounting estimates: No
- Retrospective restatements: No
- Number of shares issued (common shares)
- Number of shares issued at the end of the period (including treasury shares)
As of January 31, 2024: | 38,742,241 shares |
As of October 31, 2023: | 38,742,241 shares |
(b) Number of treasury shares at the end of the period | |
As of January 31, 2024: | 2,922,810 shares |
As of October 31, 2023: | 2,681,810 shares |
- Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Fiscal year ending October 31, 2024: First quarter: | 35,942,834 shares |
Fiscal year ended October 31, 2023: First quarter: | 36,749,709 shares |
Note: Quarterly earnings reports are not subject to quarterly review by certified public accountants or independent account auditors.
Note: Explanation concerning appropriate use of the projected operating results and other items to note (Note concerning forward-looking statements)
The forward-looking statements, including business results forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. The Company does not guarantee the achievement of the projections. Actual operating results may differ substantially due to a number of factors. Please refer to "1. Qualitative Information Concerning Quarterly Consolidated Operating Results (3) Explanation Concerning Future Forecasts Including Projected Consolidated Operating Results" on page 6 of the Attachments for the conditions used as assumptions for the projected operating results and matters to note before using the projected operating results.
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○Attachments Table of Contents | ||
1. Qualitative Information Concerning Quarterly Consolidated Operating Results | 5 | |
(1) | Qualitative Information Concerning Consolidated Operating Results | 5 |
(2) | Qualitative Information Concerning Consolidated Financial Position | 6 |
(3) | Explanation Concerning Future Forecasts Including Projected Consolidated Operating Results | 6 |
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto | 7 | |
(1) | Quarterly Consolidated Balance Sheets | 7 |
(2) | Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of | |
Comprehensive Income | 9 | |
(Quarterly Consolidated Statements of Income) | 9 | |
(Consolidated Three-Month Period Ended January 31) | 9 | |
(Quarterly Consolidated Statements of Comprehensive Income) | 10 | |
(Consolidated Three-Month Period Ended January 31) | 10 | |
(3) | Notes Concerning Quarterly Consolidated Financial Statements | 11 |
(Notes Relating to the Going Concern Assumption) | 11 | |
(Note on Significant Changes to Shareholders' Equity) | 11 | |
(Segment Information) | 11 |
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1.Qualitative Information Concerning Quarterly Consolidated Operating Results
(1) Qualitative Information Concerning Consolidated Operating Results
During the three-month period under review, Japan's economy showed a gradual recovery due to the impact of an improved employment and income environment and various government policies, etc. However, the outlook remained uncertain due to risks that could put downward pressure on the domestic economy, such as uncertainties in overseas economies and the effects of global monetary tightening.
In the construction industry in which the Group is involved, construction investment was relatively steady with public sector investment remaining firm and private sector construction investment showing signs of recovery. However, impacts such as persistently high prices for construction materials and energy, and rising labor costs, continue to necessitate even closer attention.
In such circumstances, as the Medium-Term Corporate Management Plan "Creative 60" (FY2020-2024) enters its final year, the Group focused on establishing a structure to form the foundation for the next Medium-Term Corporate Management Plan by promoting three key measures: "Expansion of domestic bases for operations," "Overseas expansion," and "Optimization of internal operations." On the other hand, the Group aims to enhance corporate value and achieve sustainable growth by further strengthening its business resilience through business operations conscious of sustainability and proactive responses to various social environmental changes.
For the three-month period under review, the Group reported net sales of ¥50,118 million, an increase of 1.2% year on year due to steady growth in sales. On the earnings front, due to a slow start in overseas businesses, operating profit was ¥2,985 million, a decrease of 3.6% year on year, ordinary profit was ¥3,200 million, a decrease of 2.1% year on year, and profit attributable to owners of parent was ¥1,778 million, an increase of 2.3% year on year.
Results for each of the Company's business segments were as follows.
< Business related to the Construction Equipment Rental Division >
In the construction-related business, which is Kanamoto's core business, progress of various large-scale projects contributed to demand, and although there were differences by region, specifically in the areas of infrastructure development and disaster prevention work, overall, strength in rental demand for construction equipment returned.
In addition, the Group is striving to continue measures for enhancing utilization rates, such as focusing on the selection and concentration of sales offices and strengthening the management system for its assets while promoting its systems to optimize the rental unit price.
Used construction equipment sales decreased 11.8% year on year, as Kanamoto proceeded with sales to maintain an appropriate asset mix while carrying out the extension of the rental equipment operation period as planned at the beginning of the fiscal year.
Reflecting these factors, the Group posted net sales in the construction-related businesses of ¥45,315 million, an increase of 0.5% year on year, and operating profit of ¥2,633 million, a decrease of 1.1% year on year.
< Other businesses >
In the Group's other businesses, net sales was ¥4,803 million, an increase of 9.2% year on year, and operating profit was ¥218 million, a decrease of 28.1% year on year, as the business related to the Steel Sales Division as well as the business related to the Information Products Division and welfare-related business remained firm.
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(2) Qualitative Information Concerning Consolidated Financial Position (Assets)
Total assets at the end of the first quarter under review stood at ¥321,953 million, an increase of ¥5,513 million compared with the end of the prior fiscal year. This was primarily due to increases of ¥7,957 million in cash and deposits and ¥1,552 million in rental equipment, while notes and accounts receivable - trade, and contract assets decreased by ¥2,284 million.
(Liabilities)
Total liabilities stood at ¥178,151 million, an increase of ¥5,387 million compared with the end of the prior fiscal year. This was primarily due to increases of ¥6,500 million in short-term borrowings and ¥1,502 million in long-term borrowings, while income taxes payable decreased by ¥1,812 million.
(Net assets)
Total net assets stood at ¥143,802 million, an increase of ¥125 million compared with the end of the prior fiscal year. This mainly reflects the posting of profit attributable to owners of parent of ¥1,778 million. Meanwhile, there was a decrease of ¥1,442 million due to dividends of surplus.
As a result, equity ratio was 41.8% compared with 42.5% at the end of the prior fiscal year.
- Explanation Concerning Future Forecasts Including Projected Consolidated Operating Results
There is no change to the projected consolidated operating results announced in the Financial Statements Bulletin for the Fiscal Year Ended October 31, 2023 (Japan GAAP) on December 8, 2023.
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2.Quarterly Consolidated Financial Statements and Significant Notes Thereto
(1) Quarterly Consolidated Balance Sheets
(Millions of yen) | |||
As of October 31, 2023 | As of January 31, 2024 | ||
Assets | |||
Current assets | |||
Cash and deposits | 45,611 | 53,568 | |
Notes and accounts receivable - trade, | 41,048 | 38,764 | |
and contract assets | |||
Electronically recorded monetary claims - | 11,474 | 11,036 | |
operating | |||
Merchandise and finished goods | 1,442 | 2,066 | |
Raw materials and supplies | 1,574 | 1,669 | |
Construction machine parts | 15,962 | 15,320 | |
Other | 3,453 | 2,589 | |
Allowance for doubtful accounts | -269 | -164 | |
Total current assets | 120,298 | 124,850 | |
Non-current assets | |||
Property, plant and equipment | |||
Rental equipment | 308,318 | 315,306 | |
Accumulated depreciation | -197,632 | -203,068 | |
Rental equipment, net | 110,685 | 112,238 | |
Buildings and structures | 47,935 | 48,201 | |
Accumulated depreciation | -27,522 | -27,926 | |
Buildings and structures, net | 20,413 | 20,275 | |
Machinery, equipment and vehicles | 10,550 | 10,733 | |
Accumulated depreciation | -8,798 | -8,888 | |
Machinery, equipment and vehicles, | 1,752 | 1,844 | |
net | |||
Land | 39,511 | 39,516 | |
Other | 4,091 | 4,128 | |
Accumulated depreciation | -2,476 | -2,541 | |
Other, net | 1,614 | 1,586 | |
Total property, plant and equipment | 173,977 | 175,461 | |
Intangible assets | |||
Goodwill | 3,163 | 3,017 | |
Customer relationship | 1,244 | 1,232 | |
Other | 1,369 | 1,286 | |
Total intangible assets | 5,778 | 5,535 | |
Investments and other assets | |||
Investment securities | 10,637 | 11,063 | |
Deferred tax assets | 2,013 | 1,341 | |
Long-term loans receivable | 1,702 | 1,701 | |
Other | 2,508 | 2,457 | |
Allowance for doubtful accounts | -476 | -456 | |
Total investments and other assets | 16,386 | 16,106 | |
Total non-current assets | 196,141 | 197,103 | |
Total assets | 316,440 | 321,953 |
− 7 −
(Millions of yen) | |||
As of October 31, 2023 | As of January 31, 2024 | ||
Liabilities | |||
Current liabilities | |||
Notes and accounts payable - trade | 36,077 | 35,929 | |
Short-term borrowings | 900 | 7,400 | |
Current portion of long-term borrowings | 14,600 | 15,457 | |
Lease liabilities | 1,645 | 1,673 | |
Income taxes payable | 2,657 | 844 | |
Provision for bonuses | 1,676 | 734 | |
Accounts payable - other | 26,075 | 25,179 | |
Other | 3,992 | 4,435 | |
Total current liabilities | 87,624 | 91,654 | |
Non-current liabilities | |||
Long-term borrowings | 35,796 | 37,299 | |
Lease liabilities | 3,626 | 3,792 | |
Long-term accounts payable - other | 42,324 | 41,984 | |
Retirement benefit liability | 354 | 347 | |
Asset retirement obligations | 686 | 687 | |
Deferred tax liabilities | 2,288 | 2,242 | |
Other | 60 | 142 | |
Total non-current liabilities | 85,139 | 86,496 | |
Total liabilities | 172,763 | 178,151 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 17,829 | 17,829 | |
Capital surplus | 19,432 | 19,400 | |
Retained earnings | 97,842 | 98,178 | |
Treasury shares | -5,906 | -6,588 | |
Total shareholders' equity | 129,198 | 128,821 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale | 2,983 | 3,300 | |
securities | |||
Deferred gains or losses on hedges | 0 | 0 | |
Foreign currency translation adjustment | 2,343 | 2,345 | |
Remeasurements of defined benefit plans | -30 | -29 | |
Total accumulated other comprehensive | 5,296 | 5,616 | |
income | |||
Non-controlling interests | 9,181 | 9,365 | |
Total net assets | 143,677 | 143,802 | |
Total liabilities and net assets | 316,440 | 321,953 |
− 8 −
- Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
(Quarterly Consolidated Statements of Income)
(Consolidated Three-Month Period Ended January 31)
(Millions of yen) | |||
Three months ended | Three months ended | ||
January 31, 2023 | January 31, 2024 | ||
Net sales | 49,508 | 50,118 | |
Cost of sales | 35,414 | 35,899 | |
Gross profit | 14,094 | 14,219 | |
Selling, general and administrative expenses | 10,997 | 11,233 | |
Operating profit | 3,096 | 2,985 | |
Non-operating income | |||
Interest income | 15 | 21 | |
Dividend income | 86 | 94 | |
Rental income | 20 | 18 | |
Foreign exchange gains | 4 | 10 | |
Other | 140 | 182 | |
Total non-operating income | 268 | 327 | |
Non-operating expenses | |||
Interest expenses | 28 | 36 | |
Loss on cancellation of leases | 9 | 18 | |
Other | 58 | 57 | |
Total non-operating expenses | 96 | 112 | |
Ordinary profit | 3,267 | 3,200 | |
Extraordinary income | |||
Gain on sale of non-current assets | 3 | 10 | |
Gain on sale of shares of subsidiaries and | 0 | 1 | |
associates | |||
Total extraordinary income | 4 | 12 | |
Extraordinary losses | |||
Loss on sale and retirement of non-current | 77 | 56 | |
assets | |||
Total extraordinary losses | 77 | 56 | |
Profit before income taxes | 3,194 | 3,156 | |
Income taxes - current | 709 | 735 | |
Income taxes - deferred | 537 | 474 | |
Total income taxes | 1,247 | 1,209 | |
Profit | 1,946 | 1,947 | |
Profit attributable to non-controlling interests | 208 | 169 | |
Profit attributable to owners of parent | 1,738 | 1,778 |
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(Quarterly Consolidated Statements of Comprehensive Income) (Consolidated Three-Month Period Ended January 31)
(Millions of yen) | ||
Three months ended | Three months ended | |
January 31, 2023 | January 31, 2024 | |
Profit | 1,946 | 1,947 |
Other comprehensive income | ||
Valuation difference on available-for-sale | 128 | 319 |
securities | ||
Deferred gains or losses on hedges | - | 0 |
Foreign currency translation adjustment | -625 | 2 |
Remeasurements of defined benefit plans, | 1 | 1 |
net of tax | ||
Total other comprehensive income | -495 | 324 |
Comprehensive income | 1,451 | 2,271 |
Comprehensive income attributable to | ||
Comprehensive income attributable to | 1,237 | 2,097 |
owners of parent | ||
Comprehensive income attributable to non- | 213 | 173 |
controlling interests | ||
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Disclaimer
Kanamoto Co. Ltd. published this content on 13 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2024 04:20:03 UTC.