This document has been translated from a part of the Japanese original for the convenience of non-Japanese shareholders. In the event of any discrepancy between this translation and the Japanese original, the original shall prevail.
August 13, 2021
Consolidated Financial Results
for the First Three Months of the Fiscal Period Ending September 30, 2021
J-GAAP>
Company name: | Pressance Corporation Co., Ltd. |
Listing: | First Section of the Tokyo Stock Exchange |
Section code: | 3254 |
URL: | https://www.pressance.co.jp/ |
Representative: | Yutaka Doi, President and Representative Director |
Contact: | Kyosuke Ichikawa, Executive Officer, Deputy General Manager of Management Division, |
and General Manager of Accounting Department | |
TEL: +81-6-4793-1650 |
Scheduled date of filing of quarterly securities report: | August 13, 2021 |
Scheduled date of start of dividend payment: | - |
Preparation of supplementary quarterly materials for financial results: | Yes |
Holding of quarterly financial results presentation meeting: | No |
(Amounts less than one million yen have been omitted.)
1. Consolidated operating results for the first three months of the fiscal period ending September 30, 2021 (from April 1, 2021 to June 30, 2021)
(1) | Consolidated operating results | (Percentages indicate year on year changes | ||||||||||
compared to the same period of the previous FY ) | ||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||
owners of parent | ||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||
First three months of the fiscal | ||||||||||||
period ending September 30, | 53,973 | (18.1) | 8,642 | (27.4) | 8,473 | (29.2) | 5,328 | (34.9) | ||||
2021 | ||||||||||||
First three months of the fiscal | 65,901 | (3.4) | 11,906 | (15.4) | 11,962 | (14.1) | 8,181 | (14.8) | ||||
year ended March 31, 2021 | ||||||||||||
Note: Comprehensive income | First three months of the fiscal period ending September 30, 2021: 5,345 million yen [(35.1)%] | |||||||||||
First three months of the fiscal year ended March 31, 2021: 8,239 million yen [(13.8)%] | ||||||||||||
Basic earnings per | Diluted earnings per | |||||||||||
share | share | |||||||||||
Yen | Yen | |||||||||||
First three months of the fiscal | ||||||||||||
period ending September 30, | 78.38 | 78.37 | ||||||||||
2021 | ||||||||||||
First three months of the fiscal | 127.19 | 127.15 | ||||||||||
year ended March 31, 2021 | ||||||||||||
(2) | Consolidated financial position | |||||||||||
Total assets | Net assets | Equity ratio | ||||||||||
Millions of yen | Millions of yen | % | ||||||||||
As of June 30, 2021 | 253,208 | 144,428 | 56.7 | |||||||||
As of March 31, 2021 | 268,762 | 140,132 | 51.8 | |||||||||
Reference: Equity | ||||||||||||
As of June 30, 2021 | 143,586 million yen | |||||||||||
As of March 31, 2021 | 139,353 million yen |
2. Dividends
Annual dividends per share | ||||||
1st quarter-end | 2nd quarter-end | 3rd quarter-end | Year-end | Annual total | ||
Yen | Yen | Yen | Yen | Yen | ||
Fiscal year ended | ― | 13.00 | ― | 16.00 | 29.00 | |
March 31, 2021 | ||||||
Fiscal period ending | ― | |||||
September 30, 2021 | ||||||
Fiscal period ending | ||||||
September 30, 2021 | ― | ― | 16.00 | 16.00 | ||
(Forecast) |
Note: Revisions to the dividends forecasts most recently announced: None
3. Forecasts of consolidated operating results for the fiscal period ending September 30, 2021 (from April 1, 2021 to September 30, 2021)
(Percentages indicate year on year changes.)
Profit attributable to | Basic | |||||||||||
Net sales | Operating profit | Ordinary profit | earnings | |||||||||
owners of parent | ||||||||||||
per share | ||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||||
Full year | 95,203 | ― | 11,883 | ― | 11,415 | ― | 7,791 | ― | 114.62 | |||
Note: | Revisions to the results forecasts most recently announced: None | |||||||||||
Note: | Pursuant to the resolution of the Ordinary General Meeting of Shareholders held on June 25, 2021, we have changed | |||||||||||
the fiscal year-end from March 31 to September 30. For this reason, year on year changes (percentage) are not stated. |
- Notes
- Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
-
Adoption of specific accounting policies for quarterly consolidated financial statements: Yes
(Corporate Income Tax Calculation Standards)
Regarding taxes, a reasonable estimate of the effective tax rate for the projected full-period pretax income for the current fiscal period, including the actual income figure for the first three months of the fiscal year, has been arrived at using the tax-effect accounting method. - Changes in accounting policies, changes in accounting estimates and restatement after error corrections
- Changes in accounting policies due to amendments to accounting standards and other regulations: Yes
- Changes in accounting policies due to other reasons than a. above: None
- Changes in accounting estimates: None
- Restatement after error corrections: None
(Change in accounting policies)
(Adoption of accounting standards for revenue recognition)
The Company adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, revised on March 31, 2020, hereinafter referred to as the "ASBJ Statement No.29") and other related standards from the beginning of the first three months of the fiscal period ending September 30, 2021. In line with these new standards, the Company recognizes revenue at the point when the control of the promised goods or service is transferred to the customer, in the amount expected to be received in exchange for the goods or service.
For the adoption of the ASBJ Statement No.29 and other related standards, the transitional treatments stipulated in the proviso of paragraph 84 of the ASBJ Statement No.29 is followed, but there is no impact on the beginning balance of retained earnings. In addition, this change has no impact on income/loss for the first three months of the fiscal period ending September 30, 2021 either.
(Adoption of accounting standards for fair value measurement)
The Company adopted the "Accounting Standard for Fair Value Measurement" (ASBJ Statement No.30, July 4, 2019, hereinafter, the "ASBJ Statement No.30") and other related standards from the beginning of the first three months of the fiscal period ending September 30, 2021. In accordance with the transitional treatments stipulated in paragraph 19 of the ASBJ Statement No.30 and paragraph 44-2 of the "Accounting Standard for Financial Instruments" (ASBJ Statement No.10, revised on July 4, 2019), the Company applies these new accounting policies prescribed by the ASBJ Statement No.30 and other related standards to the transactions that occur on and after the adoption date. This change has no impact on the quarterly consolidated financial statements.
-
Number of issued shares (common stock)
a. Number of issued shares at the end of each period (including treasury shares)
As of June 30, 2021 | 68,845,511 shares | |
As of March 31, 2021 | 68,845,511 shares | |
b. Number of treasury shares at the end of period | ||
As of June 30, 2021 | 866,984 shares | |
As of March 31, 2021 | 866,984 shares | |
c. Average number of shares during the period | ||
First three months of the fiscal period ending September 30, 2021 | 67,978,527 shares | |
First three months of the fiscal year ended March 31, 2021 | 64,328,907 shares | |
Note:
Due to the introduction of the share-based payment type ESOP, a certain number of shares of the Company held in the trust account is included in the "Number of treasury shares at the end of period" (309,860 shares for the 1st quarter of the fiscal period ending September 30, 2021 and 309,860 shares for the fiscal year ended March 31, 2021). And, a certain number of shares held in the trust account is included in the treasury shares that were deducted in the calculation of the "Average number of shares during the period" (309,860 shares for the 1st quarter of the fiscal period ending September 30, 2021 and 313,320 shares for the 1st quarter of the fiscal year ended March 31, 2021).
- Review of quarterly financial result reports by public accountants or auditing firms is not required.
- Explanations about the proper use of financial forecasts and other important notes
(Caution Concerning Forward-looking Statements)
Forward-looking statements in this document, including the results forecasts, are based on the information available to the Company at the time of disclosure and on certain assumptions deemed to be practicable by the Company. These statements do not purport that the Company pledges or ensures to achieve such statements. Actual business and other results may differ substantially due to various factors. For preconditions to the assumptions and other important notes concerning the financial forecasts, please refer to "1. Quarterly Qualitative Information (3) Explanation for the Forecast of Consolidated Financial Results ending September 30, 2021" on page 2 of the attachment.
(Method of Obtaining Supplementary Materials for Quarterly Financial Results)
Supplementary materials for quarterly financial results are available on the Company's website on the release date of this document. (Japanese version only)
1. Quarterly Qualitative Information
(1) Business Results
During the first three months of the consolidated fiscal period ending September 30, 2021, the Japanese economy and the business environment remained challenging due to the impact of the COVID-19 pandemic. Although there are some signs of a pickup, we must pay close attention to the impact of infection trends on the economy in and outside Japan and fluctuations in the financial and capital markets, etc.
In the real estate industry to which the Group belongs, in addition to the impact of the COVID-19 pandemic, land costs in cities and construction costs remain elevated. Although these and other factors are causes for concern, the interest rates on housing loans remain low while the Japanese government's ongoing measures to help homebuyers, such as a mortgage tax breaks, are still on track, contributing to a stable economy. The demand for condominiums in the center of cities, which is our main supply area, was solid as more people or households tended to move seeking the convenience of urban living.
In these business circumstances, Pressance Corporation Co, Ltd. (the "Company") has focused on supplying condominiums in selected places in the central part of major cities in the Kinki, Tokai/Chukyo, and Tokyo metropolitan areas, and other core regions including Okinawa, which are our major sales areas.
Under such business conditions, the Company posted the following consolidated performance for the first three months of the fiscal period ending September 30, 2021. Net sales amounted to 53,973 million yen (down 18.1% year on year), operating profit amounted to 8,642 million yen (down 27.4% year on year), ordinary profits amounted to 8,473 million yen (down 29.2% year on year) and profit attributable to owners of parent amounted to 5,328 million yen (down 34.9% year on year).
An overview of operating results by business segment is as follows:
Real Estate Sale Business
In the real estate sales business, Pressance Loger Shin-Umeda (84 units), a family-type condominium in the Pressance Loger series, and Pressance THE KYOTO SUITO (128 units), a Pressance series studio condominium, have performed favorably.
However, as economic activities remain constrained by the impact of the COVID-19 pandemic, our sales activities are also affected. In addition, although this is in line with our plan, sales of family-type condominiums have decreased significantly due to the small number of completed properties.
The sales of studio condominiums amounted to 28,220 million yen (1,675 units), sales of family-type condominiums amounted to 17,278 million yen (458 units), sales of hotel properties amounted to 4,250 million yen (180 units), sales of other types of housing amounted to 1,960 million yen (99 units), and business accompanying real estate sales amounted to 340 million yen. Total sales of the real estate sales business posted 52,050 million yen (down 18.3% year on year) and segment profit amounted to 8,530 million yen (down 26.4% year on year).
Since sales from the condominium business, our main business, are recorded on a delivery basis that is later than completion, there may be fluctuation in the quarterly sales results depending on the timing of land acquisition, development plans and/or construction schedules.
Other Business
With a decrease in rent revenue related to rent guarantees, the sales of Other business amounted to 1,922 million yen (down 11.9% year on year), and segment profit amounted to 423 million yen (down 37.3% year on year).
As stated in the "Notice Regarding Changes in Fiscal Year (Fiscal year-end)" disclosed on May 14, 2021, following the approval of "Partial Amendment of the Articles of Incorporation" at the 24th Ordinary General
Meeting of Shareholders held on June 25, 2021, we have changed the fiscal year-end from March 31 to September 30. For this reason, the 25th fiscal period, which is the transitional period for changing the fiscal year, covers 6 months from April 1, 2021 to September 30, 2021.
(2) Financial Position
Current Assets
Total current assets as of the end of the first three months of the fiscal period amounted to 236,302 million yen (down 5.1%), which represents a decrease of 12,737 million yen compared to the end of the previous fiscal year. This was mainly due to a decrease in inventory of 14,620 million yen.
1
Non-current Assets
Total non-current assets as of the end of the first three months of the fiscal period amounted to 16,905 million yen (down 14.3%), which represents a decrease of 2,816 million yen compared to the end of the previous fiscal year. This was due mainly to a decrease in real estate for rent by 1,546 million yen following the transfer of self- owned real estate to inventory and a decrease in loans receivable from subsidiaries and associates by 762 million yen.
Liabilities
Total liabilities as of the end of the first three months of the fiscal period amounted to 108,779 million yen (down 15.4%), which represents a decrease of 19,850 million yen compared to the end of the previous fiscal year. This was mainly due to a 7,835 million yen decrease in loans payable to financial institutions, a 5,889 million yen decrease in electronically recorded obligations-operating due to an increase in settlements, and a 4,029 million yen decrease in income taxes payable due to the payment of income taxes.
Net Assets
Total net assets as of the end of the first three months of the fiscal period amounted to 144,428 million yen (up 3.1%), which represents an increase of 4,296 million yen compared to the end of the previous fiscal year. This was principally due to the increase in retained earnings of 4,235 million yen because of the posting of profit attributable to owners of parent of 5,328 million yen, which offset the cash dividends paid of 1,092 million yen.
Analysis on Cash Flows
Cash and cash equivalents as of the end of the first three months of the fiscal period ending September 30, 2021, totaled 88,799 million yen (up 1.2%), which represents an increase of 1,090 million yen compared to the end of the previous fiscal year.
The status and factors in each cash flow for the first three months of the fiscal period ending September 30, 2021, are as follows:
Cash Flows from Operating Activities
Net cash provided by operating activities came to 10,574 million yen (Compared with 15,857 million yen provided in the first three months of the previous fiscal year).
This was mainly due to cash inflow resulting from a decrease in inventories by 16,273 million yen following the delivery of condominiums and the posting of 8,473 million yen in profit before income taxes, while there were cash outflows as a result of a payment of income tax of 6,620 million yen, a decrease in notes and accounts payable-trade by 6,144 million yen reflecting an increase in the settlement of electronically recorded obligations- operating, and other factors.
Cash Flows from Investment Activities
Net cash used in investment activities came to 567 million yen (Compared with 90 million yen used in the first three months of the previous fiscal year).
This was principally due to cash outflows resulting from the acquisition of non-current assets of 322 million yen and loans to subsidiaries and associates of 262 million yen.
Cash Flows from Financing Activities
Net cash used in financing activities came to 8,917 million yen (Compared with 11,776 million yen used in the first three months of the previous fiscal year).
This was due mainly to cash outflows resulting from the net decrease in loans payable to financial institutions by 7,835 million yen and the dividend payment of 1,081 million yen.
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Explanation for the Forecast of Consolidated Financial Results ending September 30, 2021
Condominium sales, our major business, have a tendency to excessively skew or cause unevenness in specific quarterly results due to the timing of the delivery of condominiums, because condominium sales are to be posted on the basis of delivery of the condominium units. Our business results in the first three months of the fiscal period ending September 30, 2021 have been making sound progress, and there is no change in our forecasts of consolidated financial results released on May 14, 2021 for the fiscal period ending September 30, 2021.
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PRESSANCE Corporation published this content on 20 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 August 2021 07:03:01 UTC.