Sohgo Security Services : Summary of Financial Results for the Second Quarter Ended September 30, 2021 (149KB)

Consolidated Financial Results for the Second Quarter Ended September 30, 2021

Prepared in Conformity with Accounting Principles Generally Accepted in Japan (Japanese GAAP)

English Translation of the Original Japanese-Language Report

SOHGO SECURITY SERVICES CO., LTD.	(Code No.2331, TSE 1st Sec.)
URL https://www.alsok.co.jp/en/ir/index.html
Representative:	Yukiyasu Aoyama, President and Representative Director
Financial and accounting:	Koji Kishimoto, Director and Senior Executive Officer	(Phone: [phone])

1. Summary of the consolidated financial results for the second quarter ended September 30, 2021 (April 1, 2021 - September 30, 2021)

(1) Consolidated operating results				(Figures rounded down to the nearest million)
	Net sales		Operating income	Ordinary income	Profit attributable to
		owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Six months ended
September 30, 2021	245,290		8.6	24,830	56.8	25,754	56.4	16,097	61.6
September 30, 2020	225,889		0.3	15,837	(2.4)	16,466	(4.6)	9,960	(5.8)

Note 1: Percentage shown in net sales, operating income, ordinary income, and profit attributable to owners of parent above represent the changes from the previous fiscal year.

Note 2:

Comprehensive income Six months ended September 30, 2021

¥ 17,166 million

37.4%

Six months ended September 30, 2020

¥ 12,497 million

8.0%

Net income per share

Diluted net income per share

Six months ended

Yen

Yen

September, 2021

159.01

-

September, 2020

98.39

-

(2) Consolidated financial conditions

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

Six months ended

475,107

317,165

61.1

2,865.60

September 30, 2021

Fiscal year ended

481,465

304,427

57.6

2,741.27

March 31, 2021

Reference:

Equity capital

Six months ended September 30, 2021

¥ 290,099 million

Year ended March 31, 2021

¥ 277,512 million

2. Dividend

Dividends per share

End of 1Q

End of 2Q

End of 3Q

Year-end

Annual

Yen

Yen

Yen

Yen

Yen

Fiscal year ended

March 31, 2021

-

35.00

-

37.00

72.00

March 31, 2022

-

38.00

Fiscal year ending

-

38.00

76.00

March 31, 2022(Forecast)

Note:

Revisions to the dividend forecast in this quarter: No

3. Forecasts for the consolidated financial results for the fiscal year ending March 31, 2022 (April 1, 2021 - March 31, 2022) (Figures rounded down to the nearest million)

		Net sales		Operating income	Ordinary income	Profit attributable to	Net income per share
			owners of parent
		Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen		%	Yen
Annual		500,500	6.5	42,100	13.2	43,500	10.9	27,500		9.9	271.65
Note :	Revisions to the forecast of financial results in this quarter: No

4. Others

1. Changes in consolidated subsidiaries (Changes in scope of consolidation) : No

Added:

-

Removed:

-

1. Application of accounting which is simplified or exceptional for quarterly consolidated financial statements: Yes
2. Changes in accounting policies, changes in accounting estimates, and restatement

a Changes arising from revision of accounting standards	: Yes
b Changes arising from other factors	: No
c Changes arising from accounting estimate	: No
d Restatement	: No

(4) Number of shares outstanding (Ordinary shares)

a Number of shares issued	Six months ended	102,040,042 shares	Year ended	102,040,042 shares
(including treasury stock)	September 30, 2021		March 31, 2021
b Number of shares of treasury stock	Six months ended	805,014 shares	Year ended	805,021 shares
	September 30, 2021	March 31, 2021
c Average number of ordinary shares	Six months ended	101,234,990 shares	Six months ended	101,235,052 shares
throughout the fiscal year	September 30, 2021	September 30, 2020

• This summary of financial results is exempt from quarterly review procedures.
• Explanation for Appropriate Use of Forecasts and Other Notes

The forward-looking statements such as operational forecasts contained in this summary of financial results are based on the information currently available to the Company and certain assumptions which are regarded as legitimate, and the Company does not promise the achievement of these results. Actual results may differ significantly from these forecasts due to various factors.

Consolidated Balance Sheets				(Millions of yen)
				As of March 31, 2021	As of September 30, 2021
	Assets
	Current assets
	Cash and deposits	60,833	67,283
	Cash for Transportation Security Services	82,819	71,827
	Notes receivable - trade	54,283	-
	Notes and accounts receivable - trade,	and	51,294
	contract assets	-
	Securities	598	691
	Raw materials and supplies	7,551	8,116
	Costs on uncompleted construction contracts	348	308
	Advances paid	5,670	6,883
	Other	15,691	15,749
	Allowance for doubtful accounts	(180)	(199)
	Total current assets
	227,617	221,955
	Noncurrent assets
	Property, plant and equipment	103,383	101,714
	Intangible assets
	Goodwill	29,678	28,282
	Other	13,569	14,359
	Total intangible assets
	43,247	42,641
	Investments and other assets
	Investment securities	55,639	55,144
	Other	52,025	54,083
	Allowance for doubtful accounts	(447)	(430)
	Total investments and other assets
	107,217	108,797
	Total noncurrent assets
	253,847	253,152
	Total assets
	481,465	475,107
Liabilities
	Current liabilities
	Notes and accounts payable-trade	24,084	19,767
	Short-term loans payable	23,880	12,366
	Income taxes payable	6,585	7,540
	Provision	2,516	2,745
	Other	46,726	44,294
	Total current liabilities
	103,793	86,714
	Noncurrent liabilities
	Long-term loans payable	4,528	3,364
	Retirement benefit liability	26,974	27,155
	Provisions	1,730	1,504
	Asset retirement obligations	480	485
	Other	39,529	38,716
	Total noncurrent liabilities
	73,243	71,227
	Total liabilities
	177,037	157,942

Consolidated Balance Sheets		(Millions of yen)
			As of March 31, 2021	As of September 30, 2021
	Net assets
	Shareholders' equity
	Capital stock	18,675	18,675
	Capital surplus	34,026	34,046
	Retained earnings	220,464	232,699
	Treasury stock	(1,071)	(1,071)
	Total shareholders' equity
	272,094	284,349
	Accumulated other comprehensive income
	Valuation difference on	7,026	7,100
	available-for-sale securities
	Revaluation reserve for land	(3,494)	(3,378)
	Foreign currency translation adjustment	(29)	20
	Remeasurements of defined benefit plans	1,915	2,007
	Total accumulated other comprehensive income
	5,417	5,749
	Minority interests
	26,915	27,066
	Total net assets
	304,427	317,165
	Total liabilities and net assets
	481,465	475,107

Consolidated Statements of Income		(Millions of yen)
			Six months ended	Six months ended
			September 30, 2020	September 30, 2021
	Net sales	225,889	245,290
	Cost of sales	169,826	181,165
	Gross profit
	56,062	64,124
	Selling, general and administrative expenses
	40,225	39,293
	Operating income
	15,837	24,830
	Non-operating income
	Interest income	85	92
	Dividends income	483	493
	Gain on sales of investment securities	2	17
	Share of profit of entities accounted for using equity	370	481
	method
	Dividend income of insurance	205	225
	Penalty income	336	421
	Other	760	627
	Total non-operating income
	2,243	2,358
	Non-operating expenses
	Interest expenses	996	964
	Financing expenses	124	133
	Loss on sale of investment securities	-	5
	Other	493	332
	Total non-operating expenses
	1,614	1,435
	Ordinary income
	16,466	25,754
	Extraordinary income
	Gain on investment securities	22	7
	Gain on sales of non-current assets	99	224
	Compensation income	50	-
	Total extraordinary income
	172	232
	Extraordinary loss
	Loss on valuation of investment securities	15	62
	Impairment Losses	43	193
	Loss on sale of investment securities	-	0
	Total extraordinary losses
	59	256
	Income before income taxes
	16,579	25,730
	Income taxes
	5,839	8,821
	Net Income
	10,740	16,909
	Profit attributable to non-controlling interests
	779	811
	Profit attributable to owners of parent
	9,960	16,097