PR TIMES : Summary of Consolidated Financial Results for the Three Months Ended May 31, 2022 (Based on Japanese GAAP)

Translation

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Summary of Consolidated Financial Results for the Three Months Ended May 31, 2022 (Based on Japanese GAAP)

				July 14, 2022
Company name:	PR TIMES, Inc.
Stock exchange listing:	Tokyo
Stock code:	3922	URL https://prtimes.co.jp/
Representative:	President and CEO	TAKUMI YAMAGUCHI
Inquiries:	Director		AKIHIRO MISHIMA	TEL [phone]
Scheduled date to file Quarterly Securities Report:	July 14, 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 three months ended May 31, 2022 (from March 1, 2022 to May 31, 2022)
(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		%
Three months ended May 31, 2022	1,383	22.7		428		9.3		427		9.2	294		7.6
Three months ended May 31, 2021	1,127	-		391		-		391		-	273		-
Note: Comprehensive income	For the three months ended May 31, 2022:			¥294 million	[7.7%]
	For the three months ended May 31, 2021:			¥273 million		[-%]
		Earnings per share	Diluted earnings per share
			Yen				Yen
Three months ended May 31, 2022		21.91		21.58
Three months ended May 31, 2021		20.97		20.00

Note: Because the Company has prepared quarterly consolidated financial statements starting in the three months ended May 31, 2021, the Company is not stating year-on-year changes for the three months ended May 31, 2021.

(2) Consolidated financial position

		Total assets				Net assets		Equity ratio		Net assets per share
		Millions of yen		Millions of yen				%		Yen
As of May 31, 2022			4,813				4,036				83.8		300.48
As of February 28, 2022		4,831				3,740				77.4		278.52
Reference: Equity	As of May 31, 2022	¥4,035	million
	As of February 28, 2022	¥3,739	million
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 February 28, 2022		-		0.00			-			0.00	0.00
Year ending February 28, 2023		-
Year ending February 28, 2023					0.00			-			0.00	0.00
(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: None

3. Forecast of consolidated financial results for the year ending February 28, 2023 (from March 1, 2022 to February 28, 2023)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
2,823	22.9	675	(24.8)	673	(24.9)	466	(24.6)	34.71
August 31, 2022
Full year	5,950	22.6	1,600	(12.8)	1,596	(13.0)	1,105	(13.8)	82.30

Note: Revisions to the forecast most recently announced: None

4. Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
   Note: For more details, please refer to the section of "(3) Notes to quarterly consolidated financial statements, Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements" of "2. Quarterly consolidated financial statements and significant notes thereto" on page 6 of the attached material.
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:	None
Changes in accounting estimates:	None
Restatement of prior period financial statements:	None

Note: For more details, please refer to the section of "(3) Notes to quarterly consolidated financial statements, Changes in accounting policies" of "2. Quarterly consolidated financial statements and significant notes thereto" on page 6 of the attached material.

(4) Number of issued shares (common shares)

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

	As of May 31, 2022	13,457,200	shares	As of February 28, 2022	13,457,200	shares
Number of treasury shares at the end of the period
	As of May 31, 2022	28,047	shares	As of February 28, 2022	30,847	shares
Average number of shares during the period
	Three months ended May 31, 2022	13,427,053	shares	Three months ended May 31, 2021	13,031,020	shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of financial results forecasts, and other special matters

(Caution regarding forward-looking statements)

Forward-looking statements, including the consolidated forecasts stated in these materials, are based on information currently available to the Company and certain assumptions deemed reasonable. As such, they do not constitute guarantees by the Company of future performance. Results may differ materially from the consolidated forecasts due to various factors. Please refer to the section of "(3) Explanation of forward-looking information, including consolidated results forecasts" of "1. Qualitative information on quarterly consolidated financial results for the period under review" on page 3 of the attached material for the preconditions for the results forecasts and items to exercise caution in the use of these results forecasts.

(How to obtain supplementary material on quarterly financial results and quarterly financial summary presentation material)

On Thursday, July 14, 2022, the Company plans to post the supplementary material on the quarterly financial results on its website. The Company also plans to hold a quarterly financial summary presentation meeting for institutional investors and securities analysts on the same day.

	PR TIMES, Inc. (3922)
Attached Material
	Index
1. Qualitative information on quarterly consolidated financial results for the period under review.............	2
(1)	Explanation of operating results..........................................................................................................	2
(2)	Explanation of financial position ........................................................................................................	2
(3)	Explanation of forward-looking information, including consolidated results forecasts......................	3
2. Quarterly consolidated financial statements and significant notes thereto ...............................................	4
(1)	Quarterly consolidated balance sheet..................................................................................................	4
(2)	Quarterly consolidated statement of income and comprehensive income ..........................................	5
	Quarterly consolidated statement of income (cumulative).................................................................	5
	Quarterly consolidated statement of comprehensive income (cumulative)........................................	5
(3)	Notes to quarterly consolidated financial statements ..........................................................................	6
	Notes on premise of going concern ....................................................................................................	6
	Notes on significant changes in the amount of shareholders' equity..................................................	6
	Adoption of accounting treatment specific to the preparation of quarterly consolidated financial
	statements ...........................................................................................................................................	6
	Changes in accounting policies ..........................................................................................................	6
	Segment information ..........................................................................................................................	6
	Significant events after the reporting period ......................................................................................	7

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PR TIMES, Inc. (3922)

1. Qualitative information on quarterly consolidated financial results for the period under review

(1) Explanation of operating results

In the three months ended May 31, 2022, the PR TIMES, Inc. Group (the "Group") invested in advertising with the aim of increasing recognition for business growth of the tools "Jooto" and "Tayori" for Saas-based businesses as well as acquiring new customer segments in order to realize our mission of "Towards an age where information inspires hearts and minds" while continuing efforts to strengthen the core structure for the press release distribution service "PR TIMES," which is a key business.

The number of companies using "PR TIMES" has reached 69,257 companies, and 50.9% of listed companies in Japan were using "PR TIMES." The Group is maintaining a strong growth rate with the number of press releases reaching a record high of 31,165 in March and also due to other factors. 160,676 images and 2,840 videos as press release materials were posted in March, both representing record highs, as the shift to press releases with rich contents continues. In addition, there were 11,792 distribution recipients, 23,697 media users and 219 partner media, and the number of monthly site views for press releases in March was the highest recorded at 59.37 million page views. There has been an enormous response in terms of network effect accompanying the increases for both the distribution side and the receiving side of press releases. As a result, "PR TIMES" has evolved from a conventional information distribution service for press releases, containing media-oriented material, to a PR (Public Relations) platform.

We worked to expand usage and improve service with the key indicators of number of paying user companies for "Jooto," our task and project management tool, and number of paying accounts for "Tayori," our cloud-based information organization tool. As a result, the number of paying user companies for "Jooto" rose 18.6% year on year to 1,835 and the number of paying accounts for "Tayori" rose 39.7% to 721. Although both services grew according to plan, their effect on net sales was limited, and we continue to be in the investment phase.

As a result, for the three months ended May 31, 2022, the Company posted net sales of ¥1,383,533 thousand (up 22.7% year on year), operating profit of ¥428,126 thousand (up 9.3% year on year), ordinary profit of ¥427,928 thousand (up 9.2% year on year) and profit attributable to owners of parent of ¥294,139 thousand (up 7.6% year on year).

In addition, the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the first quarter under review. Details are as described in "(3) Notes to quarterly consolidated financial statements, Changes in accounting policies" of "2. Quarterly consolidated financial statements and significant notes thereto."

Note that statement of operating results by segment is omitted because the Group has a single reportable segment, the Press Release Distribution Business.

1. Explanation of financial position Assets

Total assets at the end of the first quarter under review were ¥4,813,323 thousand, a decrease of ¥17,734 thousand from the end of the previous fiscal year.

Current assets at the end of the first quarter under review were ¥3,986,910 thousand, an increase of ¥13,672 thousand from the end of the previous fiscal year. This was primarily due to an increase of ¥5,824 thousand in notes and accounts receivable - trade and an increase of ¥21,866 thousand in other, despite a decrease of ¥14,791 thousand in cash and deposits.

Non-current assets at the end of the first quarter under review were ¥826,413 thousand, a decrease of ¥31,406 thousand from the end of the previous fiscal year. This was primarily due to a decrease of ¥28,702 thousand in investments and other assets.

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PR TIMES, Inc. (3922)

Liabilities

Liabilities at the end of the first quarter under review were ¥777,257 thousand, a decrease of ¥313,559 thousand from the end of the previous fiscal year.

Current liabilities at the end of the first quarter under review were ¥776,154 thousand, a decrease of ¥312,891 thousand from the end of the previous fiscal year. This was primarily due to a decrease of ¥269,626 thousand in income taxes payable.

Non-current liabilities at the end of the first quarter under review were ¥1,102 thousand, a decrease of ¥667 thousand from the end of the previous fiscal year.

Net assets

Net assets at the end of the first quarter under review were ¥4,036,065 thousand, an increase of

¥295,824 thousand from the end of the previous fiscal year. This was primarily due to an increase of ¥294,139 thousand in retained earnings resulting from the recording of profit attributable to owners of parent.

(3) Explanation of forward-looking information, including consolidated results forecasts

There are no changes to forecast of consolidated financial results for six months ending August 31, 2022 and full year ending February 28, 2023 released in the Summary of Consolidated Financial Results for the Year Ended February 28, 2022, announced on April 13, 2022.

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