Consolidated Financial Results
for the Nine Months Ended May 31, 2022
[Japanese GAAP]
July 7, 2022
Company name: USEN-NEXT HOLDINGS Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 9418
URL: https://usen-next.co.jp/
Representative: Yasuhide Uno, President, Representative Director & CEO
Contact: Shohei Mabuchi, Managing Director & CFO
Phone: +81-3-6823-7015
Scheduled date of filing quarterly securities report: July 8, 2022
Scheduled date of commencing dividend payments: -
Availability of supplementary briefing materials on quarterly financial results: Available
Schedule of quarterly financial results briefing session: Not scheduled
(Amounts are rounded down to the nearest million yen.)
1. Consolidated Financial Results for the Nine Months Ended May 31, 2022 (September 1, 2021 - May 31,
2022) | |||||||||
(1) Consolidated Operating Results | (% indicates changes from the previous corresponding period.) | ||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
Nine months ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
May 31, 2022 | 174,712 | 13.5 | 13,530 | 7.9 | 12,810 | 7.4 | 6,807 | 1.7 | |
May 31, 2021 | 153,869 | 7.3 | 12,541 | 49.0 | 11,930 | 61.8 | 6,694 | 109.8 |
(Note) Comprehensive income: Nine months ended May 31, 2022: ¥6,827 million [1.8%] Nine months ended May 31, 2021: ¥6,709 million [112.8%]
Basic earnings | Diluted earnings | EBITDA | Adjusted EPS | |||
per share | per share | |||||
Nine months ended | Yen | Yen | Million yen | % | Yen | % |
May 31, 2022 | 113.31 | 113.23 | 20,023 | 5.0 | 150.73 | (2.0) |
May 31, 2021 | 111.43 | 111.34 | 19,070 | 28.8 | 153.85 | 56.9 |
(Note) The Company has applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the three months ended November 30, 2021. The above amounts for the nine months ended May 31, 2022 show figures after the said accounting standard has been applied. Percent changes from the previous corresponding period are calculated based on the consolidated financial results for the nine months ended May 31, 2021 before the said accounting standard has been applied.
(2) Consolidated Financial Position
Total assets | Net assets | Equity ratio | |
Million yen | Million yen | % | |
As of May 31, 2022 | 151,641 | 38,361 | 25.3 |
As of August 31, 2021 | 141,316 | 33,334 | 23.6 |
(Reference) Equity: As of May 31, 2022: ¥38,358 million As of August 31, 2021: ¥33,331 million
(Note) The Company has applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the three months ended November 30, 2021. The above amounts for the nine months ended May 31, 2022 show figures after the said accounting standard has been applied.
2. Dividends
Annual dividends | |||||||
1st quarter-end | 2nd quarter-end | 3rd quarter-end | Year-end | Total | |||
Yen | Yen | Yen | Yen | Yen | |||
Fiscal year ended | - | 0.00 | - | 13.50 | 13.50 | ||
August 31, 2021 | |||||||
Fiscal year ending | - | 0.00 | - | ||||
August 31, 2022 | |||||||
Fiscal year ending | |||||||
August 31, 2022 | 15.00 | 15.00 | |||||
(Forecast) | |||||||
(Note) Revision to the forecast for dividends announced most recently: None |
3. Consolidated Financial Results Forecast for the Fiscal Year Ending August 31, 2022 (September 1, 2021 - August 31, 2022)
(% indicates changes from the previous corresponding period.)
Profit attributable | Basic earnings | ||||||||
Net sales | Operating profit | Ordinary profit | to owners of | ||||||
per share | |||||||||
parent | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
Full year | 220,000 | 5.6 | 17,000 | 8.9 | 16,000 | 8.3 | 8,500 | 5.7 | 141.47 |
EBITDA | Adjusted EPS | ||||||||
Million yen | % | Yen | % | ||||||
Full year | 26,000 | 6.7 | 191.40 | 1.4 |
(Note) Revision to the financial results forecast announced most recently: None
The Company has applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the three months ended November 30, 2021. The above amounts for the consolidated financial results forecast for the fiscal year ending August 31, 2022 show figures after the said accounting standard has been applied. Percent changes from the previous corresponding period are calculated based on the consolidated financial results for the fiscal year ended August 31, 2021 before the said accounting standard has been applied.
* Notes:
- Changes in significant subsidiaries during the period under review: None (Changes in specified subsidiaries resulting in changes in scope of consolidation):
Newly included: - ( | ), Excluded: - ( | ) |
(2) Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: Yes (Note) For details, please refer to "(4) Notes to Quarterly Consolidated Financial Statements (Accounting
methods adopted particularly for the preparation of quarterly consolidated financial statements)" on page 14 of the Attachments.
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies due to the revision of accounting standards: Yes
- Changes in accounting policies other than 1) above: None
- Changes in accounting estimates: None
- Retrospective restatement: None
- Total number of shares issued and outstanding (common shares)
- Total number of shares issued and outstanding at the end of the period (including treasury shares):
May 31, 2022: | 60,084,611 shares |
August 31, 2021: | 60,083,111 shares |
2) Total number of treasury shares at the end of the period: | |
May 31, 2022: | 72 shares |
August 31, 2021: | 23 shares |
3) Average number of shares during the period: | |
Nine months ended May 31, 2022: | 60,084,013 shares |
Nine months ended May 31, 2021: | 60,074,957 shares |
- Calculation method of management indices
- EBITDA: Operating profit + Depreciation + Amortization of goodwill
- The amounts of depreciation and amortization of goodwill represent figures on the statements of cash flows.
- Adjusted EPS: Adjusted profit (i.e., Profit attributable to owners of parent + Amortization of goodwill) / Average number of shares during the period
- These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants or an audit firm.
*Explanation on the proper use of financial results forecast and other notes(Notes on forward-looking statements, etc.)
The earnings forecasts and other forward-looking statements herein are based on information available to the Company and certain assumptions deemed reasonable as at the date of publication of this document, and the Company does not in any way guarantee the achievement of the projections. In addition, actual results may differ significantly from these forecasts due to various factors. For preconditions for the financial results forecast and notes on the use thereof, etc., please refer to "1. Qualitative Information on Quarterly Financial Results (1) Explanation of Operating Results" on page 2 of the Attachments.
(Method of obtaining supplementary briefing materials on quarterly financial results)
Briefing materials on the financial results for the nine months ended May 31, 2022 will become available today (July 7, 2022) on the Company's website.
Table of Contents - Attachments | ||
1. Qualitative Information on Quarterly Financial Results ........................................................................... | 2 | |
(1) | Explanation of Operating Results ............................................................................................................ | 2 |
(2) | Explanation of Financial Position............................................................................................................ | 8 |
(3) | Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information........ | 8 |
2. Quarterly Consolidated Financial Statements and Principal Notes ........................................................... | 9 | |
(1) | Quarterly Consolidated Balance Sheets................................................................................................... | 9 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income......................................... | 11 |
Quarterly Consolidated Statements of Income | ||
For the nine months ended May 31 ........................................................................................... | 11 | |
Quarterly Consolidated Statements of Comprehensive Income | ||
For the nine months ended May 31 ........................................................................................... | 12 | |
(3) | Quarterly Consolidated Statements of Cash Flows ............................................................................... | 13 |
(4) | Notes to Quarterly Consolidated Financial Statements ......................................................................... | 14 |
(Notes on going concern assumption) ..................................................................................................... | 14 | |
(Notes in case of significant changes in shareholders' equity) ................................................................ | 14 | |
(Accounting methods adopted particularly for the preparation of quarterly consolidated financial | ||
statements)............................................................................................................................................... | 14 | |
(Changes in accounting policies)............................................................................................................. | 14 | |
(Additional information) ......................................................................................................................... | 15 | |
(Segment information, etc.) ..................................................................................................................... | 16 |
1
1. Qualitative Information on Quarterly Financial Results
(1) Explanation of Operating Results
The Group believes that a variety of customers it serves in the B to B market are its greatest assets, including commercial stores to which the Group provides its mainstay music distribution services, in addition to other customers such as hotels, hospitals, golf courses and small- to medium-sized offices.
Making the most of these assets, the Group has been focusing on initiatives to further consolidate its position as a solutions provider and a platformer for small- to medium-sized enterprises that provides one-stop solutions to various needs and problems of customers in its five business segments: the Content Distribution Business, the Store Services Business, the Communications Business, the Business Systems Business, and the Energy Business.
During the nine months ended May 31, 2022, the government lifted priority measures to prevent the spread of infections that were implemented in 18 prefectures including Tokyo and Osaka as a countermeasure against the COVID-19 throughout the country for the first time in roughly two and a half months. Amid a decrease in new COVID-19 cases, Japan has seen the recovery of social economic activities such as the relaxation of restrictions on holding events and increase in the number of people at shopping districts and sightseeing spots. There are also positive signs at restaurants and other commercial stores which returned to normal operation following the lifting of restrictions imposed such as limits to the number of people and the reduction of operating hours, resulting in a gradual increase in the number of customers at these stores.
On the other hand, a large number of businesses and commercial stores are forced to revise the prices of commercial products due to food and energy shortages caused by the situation in Ukraine, which have led to worldwide inflation, and the soaring raw material prices and utility costs caused by the rapid depreciation of the yen. The soaring commodity prices may affect procurement costs of commercial stores and result in decline in consumer confidence and the fewer number of customers coming to the stores. The business environment surrounding the commercial stores still remains uncertain.
Under these circumstances, the Group, as a "social DX" company that brings the future closer to the present, has continued to focus on its efforts to support commercial stores and service users by providing one-stop solutions to the needs and problems of society through its business activities.
In each segment, the Group has provided products and services tailored to various needs and issues of customers in the era of coexistence with COVID-19 and further utilized resources in the Group to practice our Group slogan, "Brighten the future."
In order for the Group to steadily carry out a new medium-term business plan, "Road to 2025," which was formulated and released by the Group, and realize sustainable growth and a further increase of corporate value while responding to a social environment undergoing drastic change in the era of coexistence with and post COVID-19, the Group selected the Prime Market in the Tokyo Stock Exchange's new market segments and transitioned to the market on April 4, 2022.
As a result, regarding the financial results for the nine months ended May 31, 2022, net sales were ¥174,712 million (up 13.5% year on year), operating profit was ¥13,530 million (up 7.9% year on year) and ordinary profit was ¥12,810 million (up 7.4% year on year). In addition, profit attributable to owners of parent was ¥6,807 million (up 1.7% year on year).
The Group's net sales (including inter-segment sales or transfers) and operating profit by segment are outlined below.
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USEN NEXT HOLDINGS Co. Ltd. published this content on 07 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 July 2022 07:13:02 UTC.