STEP CO.,LTD. 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.
Non-consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending September 30, 2021
[Japanese GAAP]
July 28, 2021
Company name: STEP CO.,LTD.
Stock exchange listing: Tokyo Stock Exchange
Stock code: 9795
URL: https://www.stepnet.co.jp/
Representative: Yousuke Endou, Representative Director and President
Contact: Noriaki Arai, Director and Managing Executive Officer
Phone: +81-466-20-8000
Scheduled date of filing quarterly securities report: August 3, 2021
Scheduled date of commencing dividend payments: ―
Availability of supplementary briefing material on quarterly financial results： None
Schedule of quarterly financial results briefing session： None
(Amounts of less than one million yen are rounded down.)
1. Non-consolidated Financial Results for the Third Quarter of the Fiscal Year Ending September 30, 2021
(October 1, 2020 to June 30, 2021)
(1) Operating Results | (% indicates changes from the previous corresponding period.) | ||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit | ||||||||||||||
For the third quarter ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||||||
June 30, 2021 | 9,370 | 25.4 | 2,260 | 206.4 | 2,330 | 207.7 | 1,603 | 215.3 | |||||||||
June 30, 2020 | 7,473 | (10.3) | 737 | (53.0) | 757 | (52.7) | 508 | (53.5) | |||||||||
Profit per share | Diluted earnings | ||||||||||||||||
per share | |||||||||||||||||
For the third quarter ended | Yen | Yen | |||||||||||||||
June 30, 2021 | 97.15 | ― | |||||||||||||||
June 30, 2020 | 30.81 | ― | |||||||||||||||
(2) Financial Position | |||||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | ||||||||||||||
Million yen | Million yen | % | Yen | ||||||||||||||
As of June 30, 2021 | 25,712 | 22,005 | 85.6 | 1,333.19 | |||||||||||||
As of September 30, 2020 | 26,036 | 21,060 | 80.9 | 1,275.93 | |||||||||||||
(Reference) Equity: As of June 30, 2021: ¥ 22,005million | |||||||||||||||||
: As of September 30, 2020: ¥ 21,060million | |||||||||||||||||
2. Dividends | |||||||||||||||||
Dividend per share | |||||||||||||||||
1st | 2nd | 3rd | Year-end | Total | |||||||||||||
quarter-end | quarter-end | quarter-end | |||||||||||||||
Yen | Yen | Yen | Yen | Yen | |||||||||||||
Fiscal year ended September 30, 2020 | ― | 20.00 | ― | 20.00 | 40.00 | ||||||||||||
Fiscal year ending September 30, 2021 | ― | 20.00 | ― | ||||||||||||||
Fiscal year ending September30, 2021 | 24.00 | 44.00 | |||||||||||||||
(Forecast) | |||||||||||||||||
(Note) Revision to dividend forecast announced most recently: Yes |
3. Financial Results Forecast for the Fiscal Year Ending September 30, 2021 (October 1, 2020 to September 30, 2021)
(% indicates changes from the previous corresponding period.)
Net sales | Operating profit | Ordinary profit | Profit | Profit per share | |||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |||
Full year | 12,958 | 18.6 | 3,447 | 78.6 | 3,529 | 79.3 | 2,411 | 79.5 | 146.07 |
(Note) Revisions from financial results forecasts announced most recently: Yes
*Note
- Application of special accounting treatment for the preparation of the quarterly financial statements: None
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies due to the revision of accounting standards: None
- Changes in accounting policies other than 1) above: None
- Changes in accounting estimates: None
- Retrospective restatement: None
- Total number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares):
As of June 30, 2021: 16,670,000 shares
As of September 30, 2020: 16,670,000 shares
-
Total number of treasury shares at the end of the period: As of June 30, 2021: 164,283 shares
As of September 30, 2020: 163,983 shares - Average number of shares during the period:
As of June 30, 2021: 16,505,917 shares
As of June 30, 2020: 16,506,508 shares
*These quarterly financial results are not subject to auditing by certified public accountants or audit firms.
*Explanation on the proper use of financial results forecast and other notes.
The statements regarding forecast of financial results in this report are based on the information that is available to the Company, as well as certain assumptions that are deemed to be reasonable by management, and they are not meant to be a commitment by the Company. Therefore, there might be cases in which actual results differ materially from forecast values due to various factors. For the suppositions that from the assumptions for earnings forecasts and cautions concerning the use thereof, please refer to "Qualitative Information on the Quarterly Financial Results (3) Explanation of forward-looking statements including business forecasts" on page 4 of this report.
Table of Contents of Appendix
- Qualitative Information on the Quarterly Financial Results ……………………………………………………………2
- Explanation of Operating Results ……………………………………………………………………………………2
- Explanation of Financial Condition …………………………………………………………………………………4
- Explanation of forward-looking statements including business forecasts ……………………………………………4
- Quarterly Financial Statements and Principal Notes ……………………………………………………………………5
- Quarterly Balance Sheets ……………………………………………………………………………………………5
- Quarterly Statements of income ………………………………………………………………………………………7
-
Notes to Quarterly Financial Statements ……………………………………………………………………………8
(Notes on going concern assumption) …………………………………………………………………………………8
(Notes on significant changes in the amount of shareholders' equity) ………………………………………………8
(Segment information, etc.) ……………………………………………………………………………………………8
- Supplementary Information ………………………………………………………………………………………………8
- Results of production and orders received ………………………………………………………………………… 8
- Sales results …………………………………………………………………………………………………………8
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1. Qualitative Information on the Quarterly Financial Results
(1) Explanation of Operating Results
Our company's third quarter (April to June) begins with the new school year enrollment period in April following the results of entrance examinations in March. In the third quarter of the fiscal year ended September 2020 (the 42nd period), the spread of COVID-19 had a major impact on student recruitment and sales. However, the trust from students' parents gained by our response to COVID-19 was strong, and our results of the entrance examinations in March were favorable. As a result of these factors, for the third quarter of the fiscal year ending September 2021 (the 43rd period) student recruitment trends remained favorable.
With regard to student recruitment, the number of students exceeded 30,000 during the current third quarter for the first time since our foundation, and the number of students at the end of June 2021 was up by 10.5% year on year. In addition, the average number of students during the third quarter was 28,905 (up by 5.1% year on year).
In the third quarter of the fiscal year ended September 2020 (the 42nd period), since schools were closed due to the declaration of the first State of Emergency caused by COVID-19, our student recruitment in the new school year was greatly affected. However, the number of students began to recover gradually from last autumn, and the number of elementary school students, which had been slowing due to COVID-19, also turned positive from January 2021, and it was up by 23.6% year on year at the end of June. Likewise, the number of the 1st-grade high school students who were promoted from the junior high school, which had dropped significantly in the previous year due to COVID-19, recovered this spring. At the end of June, the number of high school students promoted from the junior high school increased by 15.9% year on year.
One reason for this is that families who had postponed enrolling their children in tutoring schools due to COVID-19 have decided to start attending face-to-face classes at the time of the change of the school year, judging that it will take a long time to cope with the concurrent classes under COVID-19.
Another reason for this is that the Company's efforts to enhance online classes (distribution of over 40,000 videos), the operation of a hybrid system that allows students to choose between face-to-face classes and live online classes, and the reduction of tuition fees by 60-80% under the State of Emergency in April and May 2020, were supported by many students' families and gained trust for the Company.
The results of entrance exams this spring were favorable for both high school and university entrance exams, which helped to increase student recruitment.
First of all, in regard to the entrance exams in the high school entrance examination course (for elementary and junior high school students) this spring, we were able to be the top tutoring school for the third consecutive year in "the number of students passing the entrance exams at Yokohama Suiran High School, which is an outstanding school with strong influence in the Yokohama and Kawasaki areas," and "the number of students passing the entrance exams at the top public high schools in Yokohama City." In addition, as for the number of students passing the entrance exams at Kawawa High School, the top-level school in the northern area of Yokohama, we have reached the top among all the tutoring schools for the second consecutive year, steadily strengthening the foundation as a top brand in Yokohama. We also reached the top in the number of students passing the entrance exams at all five of the preparatory schools in Kanagawa that are particularly focused on improving academic performance (Yokohama Suiran, Shonan, Hakuyo, Kawawa, and Atsugi high schools).
In addition, a total of 2,192 students passed the exam at the top public high schools in Kanagawa Prefecture, and we remained at the top among all the tutoring schools in Kanagawa. As a result, 42.9% of our students passed the top schools, among those who passed the prefectural public high schools. Looking in detail, we became the top tutoring school in terms of the number of students that passed the exam at 15 of the 19 top high schools in Kanagawa and 15 of the 19 of the schools that underwent the special "tokushoku kensa test" (descriptive test) that characterizes the current exam system. We continued to outperform other tutoring schools this spring. In addition, the number of students who have passed the exam at the Tokyo Gakugei University Senior High School, which is co-ed and has the most difficult entrance exam among the schools within the school commuting area for our students, has reached 131 in the end (the number of our students who have passed the exam at the first selection was 91, 41.2% of 221 in all at that time). We have the largest number of students who passed the school among all tutoring schools for 13 consecutive years.
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In the university entrance examination course (for high school students), this spring's entrance exam was more stressful than usual for the students, as it was the first year of the new entrance exam system (Common Entrance Examination for University Admission) in addition to the COVID-19 factors. Under such circumstances, we were able to pass 10 students for Tokyo University, 4 students for Kyoto University, 10 students for Hitotsubashi University, and 11 students for Tokyo Institute of Technology (all from Kanagawa Prefectural High School). In addition, 6 prefectural high school students also passed the Medical Faculty of a national and public university, and the number of students passing the entrance exams for all national and public universities reached a record high of 270 (up 37.8% from 196 in the previous fiscal year). As for the private universities, a total of 438 students passed the entrance exams at Waseda, Keio, and Sophia Universities (up 71.1% from 256 in the previous fiscal year), and a total of 1,462 students passed the entrance exams at the so-called Ridai MARCH Schools (Tokyo University of Science, Meiji, Aoyama Gakuin, Rikkyo, Chuo, and Hosei) (up 27.4% from 1,148 in the previous fiscal year), both record highs. It is noteworthy that most of these pass results are achieved by public high school students, who tend to be inferior to private high schools in their pass results in the Tokyo metropolitan area. The successful results can be proved to be very meaningful for us. Although there was an objective condition that students were able to spend time devoting themselves to their studies during the period when schools are closed and club activities were limited due to COVID-19, the number of public high school students passing the first-choice universities could be increased if we built a certain study system and structure.
The growth in success results has strengthened our brand as a face-to-face live class school in Kanagawa Prefecture, mainly for public high school students. As the university entrance exams continue to change, we will continue to be proactive and realistic, flexibly review the curriculum and teacher training content, and will work to further improve the content of our teaching.
As for the response to COVID-19, we are continuing to implement thorough infection prevention measures at each school. While still focusing on face-to-face classes, we are keeping on making it possible for students to participate in live online classes according to their family's preference. With regard to online live classes, we are able to utilize our experience when we shifted to the online classes under the first State of Emergency in 2020, and each school is able to respond flexibly. We will continue to closely monitor the situation of COVID-19 and maintain a system that allows us to conduct live online classes in parallel.
In addition, our company conducted vaccinations against COVID-19 in the workplace from late June to late July, mainly for our employees, including part-time employees, and employees of major client companies. We were able to take speedy action for the safety and security of our students and for the peace of mind of our employees so that they could get on with their work.
STEP kids course opened two schools in March, 2020, the Tsujido School (JR Tokaido Line Tsujido Station) and the Chigasaki School (JR Tokaido Line Chigasaki Station), and began networking. In the first year of the two new schools, we accepted applications only for grades 1 and 2 of elementary school students, and we expect the number of students to increase with the addition of grade 3 from this spring and grade 4 from spring 2022. We will continue to accumulate and share operational know-how at three schools with the aim of achieving higher-quality operations.
Three new schools were opened during the current fiscal year in the high school entrance examination course : Motosumiyoshi School (Tokyu Toyoko Line Motosumiyoshi Station, Nakahara-ku, Kawasaki City), Hi-STEP Kawasaki School (JR Kawasaki Station, Saiwai-ku, Kawasaki City) in the Kawasaki area where we are focusing, and Kaminagaya School (Yokohama Municipal Subway Kaminagaya Station, Konan-ku, Yokohama City) in Yokohama City. Motosumiyoshi and Kaminagaya schools began their classes in March and Hi-STEP Kawasaki in April. All of these openings have gotten off to a smooth start. Motosumiyoshi and Hi- STEP Kawasaki are the first schools to open in the former Kawasaki South School District.
As a result of the opening of these new schools, there are currently 154 schools, including 135 schools in the high school entrance examination course, 15 in the university entrance examination course, 1 in the individualized instruction course, and 3 in the kids course.
As a result of the above, in the third quarter, we recorded net sales of 9,370 million yen (up by 25.4% year on year), operating income of 2,260 million yen (up by 206.4% year on year), ordinary income of 2,330 million yen (up by 207.7% year on year), and net income of 1,603 million yen (up by 215.3% year on year).
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Step Co. Ltd. published this content on 10 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2021 07:09:10 UTC.
