PR TIMES : Summary of Consolidated Financial Results for the Six Months Ended August 31, 2021 (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 Six Months Ended August 31, 2021 (Based on Japanese GAAP)

				October 14, 2021
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:	October 14, 2021
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 August 31, 2021 (from March 1, 2021 to August 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 August 31, 2021	2,296	-		897		-		895	-	617		-
Six months ended August 31, 2020	-	-		-		-		-	-	-		-
Note: Comprehensive income	For the six months ended August 31, 2021:			¥617 million	[-%]
	For the six months ended August 31, 2020:				¥- million	[-%]
		Earnings per share	Diluted earnings per share
			Yen				Yen
Six months ended August 31, 2021		47.36		45.31
Six months ended August 31, 2020		-				-

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 six months ended August 31, 2021, or the consolidated operating results (cumulative) and year-on-year changes for the six months ended August 31, 2020.

(2) Consolidated financial position

		Total assets			Net assets	Equity ratio	Net assets per share
		Millions of yen		Millions of yen	%	Yen
As of August 31, 2021			3,866		3,047	78.8	229.35
As of February 28, 2021		-		-	-	-
Reference: Equity	As of August 31, 2021	¥3,046	million
	As of February 28, 2021		¥-	million

Note: Because the Company has prepared quarterly consolidated financial statements starting in the three months ended May 31, 2021, the Company is not stating the consolidated financial position as of February 28, 2021.

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, 2021	-	0.00	-		0.00	0.00
Year ending February 28, 2022	-	0.00
Year ending February 28, 2022			-		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, 2022 (from March 1, 2021 to February 28, 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	4,715	-	1,750		-	1,748		-	1,212		-	93.02

Notes: 1 Revisions to the forecast most recently announced: None

2. 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.

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 "(4) 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 7 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:	No
Changes in accounting policies due to other reasons:	No
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 August 31, 2021	13,457,200	shares	As of February 28, 2021	13,457,200	shares
Number of treasury shares at the end of the period
	As of August 31, 2021	174,793	shares	As of February 28, 2021	424,931	shares
Average number of shares during the period
	Six months ended August 31, 2021	13,047,266	shares	Six months ended August 31, 2020	13,040,404	shares

Note: The Company conducted a 2-for-1 share split of its common shares on August 5, 2020. Number of issued shares at the end of the period, number of treasury shares at the end of the period and average number of shares of common stock outstanding during the period have been calculated assuming that the share split was conducted at the beginning of the previous fiscal year.

• 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, October 14, 2021, 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)	Quarterly consolidated statement of cash flows..................................................................................	6
(4)	Notes to quarterly consolidated financial statements ..........................................................................	7
	Notes on premise of going concern ....................................................................................................	7
	Notes on significant changes in the amount of shareholders' equity..................................................	7
	Changes in significant subsidiaries during the period under review ..................................................	7
	Adoption of accounting treatment specific to the preparation of quarterly consolidated financial
	statements ...........................................................................................................................................	7
	Segment information ..........................................................................................................................	7
	Significant events after 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 six months ended August 31, 2021, the PR TIMES, Inc. Group (the "Group") invested in the development of new functions, etc. for the future 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 our services has reached 58,436 companies, and 47.7% of listed companies in Japan were using our services. The Group is maintaining a strong growth rate with the number of press releases reaching a record high of 26,072 in March and also due to other factors. 134,332 images and 2,388 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 11,962 distribution recipients, 21,947 media users and 203 partner media, and the number of monthly site views for press releases in August was the highest recorded at 58.80 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 an information distribution service for press releases, containing media-oriented material, to a PR (Public Relations) platform.

To realize our mission, we are also striving to create business that goes beyond "PR TIMES." Beginning in this fiscal year, we changed the key indicators from number of users to number of paying user companies for "Jooto," our task and project management tool, and from number of accounts to number of paying accounts for "Tayori," our cloud-based information organization tool, and worked to expand usage and improve service. As a result, the number of paying user companies for "Jooto" rose 6.5% quarter on quarter to 1,647 companies and the number of paying accounts for "Tayori" rose 12.0% to 578 accounts. Although both services grew according to plan, their effects on net sales were limited, and we continue to still be in the investment phase.

As a result, for the six months ended August 31, 2021, the Company posted net sales of ¥2,296,986 thousand, operating profit of ¥897,094 thousand, ordinary profit of ¥895,856 thousand and profit attributable to owners of parent of ¥617,914 thousand. Comparison against the consolidated financial statements for corresponding period of the previous fiscal year or as of the end of the previous fiscal year has not been performed as the Company began preparing the quarterly consolidated financial statements from the first quarter ended May 31, 2021.

Note that the Group has a single segment consisting of the Press Release Distribution Business, and statement of operating results by segment has been omitted.

1. Explanation of financial position
2. 1. Assets, liabilities, and net assets Assets

Total assets at the end of the second quarter under review were ¥3,866,045 thousand.

Current assets at the end of the second quarter under review were ¥3,291,682 thousand. The main factors were cash and deposits of ¥2,723,816 thousand and notes and accounts receivable - trade of ¥521,936 thousand.

Non-current assets at the end of the second quarter under review were ¥574,363 thousand. The main factors were intangible assets of ¥140,225 thousand and investments and other assets of ¥358,701 thousand.

Liabilities

Liabilities at the end of the second quarter under review were ¥818,391 thousand.

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PR TIMES, Inc. (3922)

Current liabilities at the end of the second quarter under review were ¥814,805 thousand. The main factors were income taxes payable of ¥301,923 thousand, unearned revenue of ¥231,484 thousand, and other current liabilities of ¥206,328 thousand.

Non-current liabilities at the end of the second quarter under review were ¥3,585 thousand.

Net assets

Net assets at the end of the second quarter under review were ¥3,047,654 thousand. The main factor was retained earnings of ¥2,504,905 thousand.

1. Cash flows
   Cash and cash equivalents ("cash") as of August 31, 2021, totaled ¥2,723,816 thousand. The respective cash flow positions and the factors thereof in the six months ended August 31, 2021, are as follows.

Cash flows from operating activities

Net cash provided by operating activities totaled ¥499,599 thousand. This was primarily due to profit before income taxes totaling ¥895,856 thousand, decrease in accounts payable - other totaling ¥83,003 thousand and income taxes paid totaling ¥302,877 thousand.

Cash flows from investing activities

Net cash used in investing activities totaled ¥237,834 thousand. This was primarily due to purchase of intangible assets totaling ¥41,241 thousand and payments of leasehold and guarantee deposits totaling ¥158,065 thousand.

Cash flows from financing activities

Net cash used in financing activities totaled ¥69,545 thousand. This was primarily due to purchase of treasury shares totaling ¥238,249 thousand and proceeds from disposal of treasury shares from exercise of share acquisition rights totaling ¥168,756 thousand.

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

There are no changes to forecast of consolidated financial results for full year ending February 28, 2022 released in the Summary of Non-Consolidated Financial Results for the Year Ended February 28, 2021, announced on April 13, 2021.

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