Second Quarter Fiscal Year Ending March 31, 2017 Consolidated Earnings Announcement (Japanese GAAP)

Transcription

1 Company Name: Second Quarter Fiscal Year Ending March 3, 207 Consolidated Earnings Announcement (Japanese GAAP) Hoosiers Holdings November 0, 206 Listed market: Tokyo Stock Exchange First Section Stock Code: 3284 URL Representative: (Title) CEO and President (Name) Tetsuya Hirooka Contact: (Title) Senior managing director and head of Management Department (Name) Tsutomu Ikuma Telephone: Scheduled date to file Quarterly Report: Preparation of supplementary information of quarterly financial results: Holding of quarterly financial results briefing: November 4, 206 Yes Scheduled date to commence dividend payment December 5, 206 Yes (For institutional investors, analysts and financial institution) (Figures are rounded down to the nearest million yen). 2nd Quarter FY3/7 Consolidated Earnings (April, 206 to September 30, 206) () Consolidated Earnings (Cumulative) (% indicates changes from the corresponding period of the previous fiscal year) Net Sales Operating Income Ordinary Income Profit Attributable to Owners of Parent Million yen % Million yen % Million yen % Million yen % 2nd Quarter FY3/7 8,74 7.7, , nd Quarter FY3/6 7, , , , (Note) Comprehensive income: 2nd Quarter FY3/7 84 million (8.4%) FY3/6 998 million (7.4%) EPS Diluted EPS Yen Yen 2nd Quarter FY3/ nd Quarter FY3/ (2) Consolidated Financial Position Total Assets Net Assets Net Asset Ratio Million yen Million yen % September 30, ,342 22, March 3, ,585 2, (Reference) Shareholders equity: 2nd Quarter FY3/7 22,220 million FY3/6 2,888 million 2. Dividends Dividend per Share End of st End of 2nd End of 3rd Quarter Quarter Quarter End of Period Annual Yen Yen Yen Yen Yen FY3/ FY3/ FY3/7 (Forecast) (Note) Changes to the dividend forecast during the quarter under review: No

2 3. Consolidated Earnings Projections for Fiscal Year Ending March 207 (From April, 206 to March 3, 207) (% indicates changes from the relevant corresponding period of the previous fiscal year) Net Sales Operating Income Ordinary Income Net Income Attributable to Parent Company Shareholders EPS Million Million Million Million % % % yen yen yen yen % Yen Full year 50, , , , (Note) Changes to the consolidated earnings projections during the quarter under review: No 2

3 * Matters to be noted () Changes in important subsidiaries during the quarter under review: No Changes in specified subsidiaries which accompany a change in the scope of consolidation Newly included: Excluded: (2) Application of special accounting practices for the preparation of quarterly consolidated financial statements: No (3) Changes in accounting principles, changes in accounting estimates and retrospective restatements (a) Changes in accounting principles in accordance with revisions to accounting and other standards: Yes (b) Changes in accounting principles other than above (a): No (c) Changes in accounting estimates: No (d) Retrospective restatements: No (4) Outstanding shares (Common stock) (a) Number of outstanding shares at end of period (Including treasury shares) (b) Number of outstanding treasury shares at end of period (c) Average number of shares during the period (Quarterly cumulative period) 2nd Quarter FY3/7 2nd Quarter FY3/7 2nd Quarter FY3/7 3,555,600 shares 3,972,300 shares 27,602,590 shares FY ended March 206 FY ended March 206 2nd Quarter FY3/6 3,555,600 shares 3,406,600 shares 30,60,200 shares The number of outstanding treasury shares is described with the inclusion of 330,275 shares in this company owned by the Officer s Share Benefit Trust at the end of this quarterly consolidated accounting period. * Statement regarding the state of implementation of quarterly review procedures This quarterly consolidated earnings announcement is exempt from the quarterly review procedures stipulated under the Financial Instruments and Exchange Act. Review procedures of the quarterly financial statements as stipulated under the Financial Instruments and Exchange Act have not been completed at the time of disclosure of this quarterly consolidated earnings announcement. * Explanatory statement regarding the proper use of financial forecasts and other notes All projections provided in this document are based on certain reasonable assumptions and beliefs in light of information currently available. Actual results may differ from our projections due to various unforeseen reasons. 3

4 4. Qualitative Information on the Financial Statements for the Quarter Under Review, etc. () Description of business performance During this second quarter, the number of contracted units was 60, block and 3 buildings, and that of delivered units was 438, block and 3 buildings. As of the end of this second quarter, we managed 2,620 units. Consequently, as the results for this second quarter, we posted net sales of 8,74 million yen (7.7% up from the same quarter of the previous year), operating income of,424 million yen (4.6% down from the same quarter of the previous year), ordinary income of,224 million yen (8.6% down from the same quarter of the previous year), and profit attributable to owners of parent of 799 million yen (20.% down from the same quarter of the previous year). In our Condominium Apartments for Families and Singles, Houses and Flats, Asset Management and Condominium Apartments for Seniors businesses, while contracts progress in line with ongoing construction, sales for the majority of condominium lots and detached houses are booked upon delivery to customers after construction has been completed and not at the time purchase and sales contracts are executed. As a result, this tends to cause a deviation in quarterly sales depending on the timing of delivery. Results by segment are as follow. We have changed the way in which we calculate segment income or loss since the previous consolidated fiscal year. Therefore, we are disclosing our year on year comparisons with figures for each segment that we have created according to the changed way in which we calculate segment income or loss. The details of this are as in 3. Reporting Segment Changes for this second quarter in (4) Notes on the Consolidated Quarterly Financial Statements (Segment Information) of 3. Consolidated Quarterly Financial Statements. (I) Condominium Apartments for Families and Singles During this second quarter, the Hoosiers Group recorded net sales and an operating income of 0,843 million (9.3% down from the same quarter of the previous year) and 972 million (2.7% down from the same quarter of the previous year), respectively. () Real Estate Sales We recorded net sales of 0,536 million (7.5% down from the same quarter of the previous year) due to a delivery of 33 condominium units such as Duo Hills Iwaki The Residence, Duo Hills Ichikawa Myoden and Duo Hills Kyu Karuizawa The Forest. (2) Sales Commissions We recorded net sales of 37 million (87.6 down from the same quarter of the previous year) from the sale of Wellith Tsukuba Kenkyugakuen Residence. (3) Rental Revenue Due to the stable operation of owned incomeproducing properties, we recorded net sales of 260 million (56.6% up from the same quarter of the previous year). (4) Other Income We recorded net sales of 8 million (90.7% down from the same quarter of the previous year) due to loan application service commissions. (II) Houses and Flats We recorded net sales of 3,995 million (48.0% up from the same quarter of the previous year) and operating income of 8 million (927.2% up from the same quarter of the previous year) during this second quarter. () Real Estate Sales We recorded net sales of 3,973 million (47.7% up from the same quarter of the previous year) due to a delivery of 9 detached houses and 2 condominiums such as Duo Avenue Takahatafudo and Duo Avenue Chofu Tsutsujigaoka. (2) Other Income We recorded net sales of 22 million (82.5% up from the same quarter of the previous year) on the back of loan 4

5 application service commissions and rental revenue. (III) Asset Management We recorded net sales of,472 million (2.% up from the same quarter of the previous year) and operating income of 20 million (3.6% down from the same quarter of the previous year) during this second quarter. () Real Estate Sales We recorded net sales of 92 million (2.3% down from the same quarter of the previous year) due to the sales of inventory assets. (2) Rental Revenue We recorded net sales of 446 million (54.4% up from the same quarter of the previous year) due to the stable operation of owned incomeproducing properties. (3) Other Income We recorded net sales of 2 million (25.% up from the same quarter of the previous year) due to the management of capsule hotels and commercial facilities. 5

6 (IV) Property Management and Related Services We recorded net sales of,374 million (08.% up from the same quarter of the previous year) and operating loss of 4 million ( million: operating loss from the same quarter of the previous year) during this second quarter. () Condominium Management We recorded net sales of 606 million (6.8% up from the same quarter of the previous year) due to the start of the new management contracting of Duo Hills Iwaki The Residence, Duo Hills Ichikawa Myoden in condominium management. (2) Sports Club Operation Revenue We recorded net sales of 56 million from the operation of sports clubs. (3) Other Income We recorded net sales of 25 million (77.8% up from the same quarter of the previous year) mainly due to the insurance agency, other lifestyle related sales and consigned construction business. (V) Condominium Apartments for Seniors We recorded net sales of,05 million (35.5% up from the same quarter of the previous year) and operating income of 7 million (95.9% down from the same quarter of the previous year) during this second quarter. () Real Estate Sales We recorded net sales of,027 million (32.9% up from the same quarter of the previous year) from the delivery of the Duo Scene Midoriyama condominium for seniors. (2) Other Income We recorded net sales of 23 million (789.0% up from the same quarter of the previous year) due to the management of day services. (VI) Other We recorded net sales of 4 million (273.0% up from the same quarter of the previous year) and operating loss of 0 million ( 6 million: operating loss from the same quarter of the previous year) through PFI operations. As indicated in the table below, contract progress remains robust with respect to delivery plans for the full fiscal year under review. Trends in proper condominiums, which in particular contribute significantly to earnings, are robust with 87.3% of contracts completed. Contracts on about 869 units are progressing at the end of September in regards to proper condominiums and detached houses scheduled to be delivered in the fiscal year ending March 207. FY3/7 Number of Properties Completed Number of Planned for Which Contracts Property Deliveries Have Been Rate of Progress Proper Condominiums and Detached houses, % *The number of units for joint venture properties is described with consideration for the joint venture ratio (2) Qualitative information concerning shifts in consolidated financial position () Financial Condition Analysis Due to the procurement of premises for business use, an increase in borrowing and the addition of two consolidated subsidiaries, total assets, total liabilities, and net assets stood at 85,342 million (4.4% up from the end of the previous fiscal year), 63,8 million (9.8% up from the end of the previous fiscal year) and 22,223 million (.5% up from the end of the previous fiscal year), respectively, as of the end of this second quarter. 6

7 (2) Cash flow condition analysis During this second quarter, due to decrease of cash flow by operating activities resulting from acquisition of inventories, etc. and decrease of cash flow by investing activities associated with the acquisition of property, plant and equipment and intangible assets, cash and cash equivalents decreased by 776 million to a balance of 3,027 million. The following describes conditions of each cash flow and factors thereof during this second quarter. () Net Cash Provided by (Used in) Operating Activities The funds decreased by operating activity were 6,586 million (down,965 million in the same quarter of the previous year), which was mainly due to an increase of inventories by purchase of real estate for business. (2) Net Cash Provided by (Used in) Investing Activities The funds decreased by investing activities were 4,628 million (down 944 million in the same quarter of the previous year), which was mainly due to acquisition of the property, plant and equipment, intangible assets and subsidiaries shares accompanied by a change in the scope of consolidation. (3) Net Cash Provided by (Used in) Financing Activities The funds increased by financing activities were 0,436 million (down,38 million in the same quarter of the previous year), which was mainly due to an increase in new longterm loans. 7

8 (3) Qualitative information regarding performance forecast In connection with the business performance forecasts for the fiscal year ending March 207, results and the status of sales for the second quarter of the fiscal year under review progressed steadily. Taking into consideration that the Group s operating environment is basically within the bounds of initial assumptions, full fiscal year projection announced on May 3, 206 remains unchanged. 5. Items regarding Summary Information (Notes) () Changes in important subsidiaries during the quarter under review Not applicable (2) Application of special accounting practices for the preparation of quarterly consolidated financial statements Not applicable (3) Changes in accounting principles, changes in accounting estimates and retrospective restatements (Changes in accounting principles) (Application of Handling in Practice for Changes to the Method of Depreciation concerning the FY206 Revision to the Tax System) We have applied Handling in Practice for Changes to the Method of Depreciation concerning the FY206 Revision to the Tax System (Practical Response Report No. 32: June 7, 206) to the first quarter in line with a revision to the Corporation Tax Act. We have changed the method of depreciation concerning facilities annexed to buildings and structures acquired after April, 206 from the fixed percentage method to the straight line method. The impact from this change is minimal. (Additional information) (Application of the Application Guidelines for the Recoverability of Deferred Tax Assets) We apply the Application Guidelines for the Recoverability of Deferred Tax Assets (Corporate Accounting Standard Application Guidelines No. 26: March 28, 206) from the first quarter. (Officer s Share Benefit Trust) Our company introduced an Officer s Share Benefit Trust (hereinafter referred to as this Trust ) as a performancelinked share compensation system for the directors of our company (excluding outside directors) and directors in our group companies (hereinafter referred to as Directors ) from August 0, 206 based on a resolution at the general meeting of shareholders held on June 25, 206. () Overview of Transactions We enacted new Director s Share Benefit Regulations upon the introduction of this Trust. Our company has entrusted money to a trust bank in order to acquire in advance the shares to be provided in the future based on the enacted Director s Share Benefit Regulations. The trust bank has acquired shares of our company with this money. This Trust is a mechanism to bestow points on Directors based on the Director s Share Benefit Regulations and to then provide shares to Directors in accordance with those points (2) Our Company s Shares Remaining in the Trust The shares of our company remaining in the trust are recorded as treasury shares in the net assets section according to their book value in the trust (excluding the amount of accompanying expenses). The book value and number of the applicable treasury shares are,799 million and 330,275 shares at the end of this second quarter. 8

9 6. Consolidated Quarterly Financial Statements () Consolidated Quarterly Balance Sheet End of Previous Fiscal Year (March 3, 206) (Unit:,000) End of 2nd Quarter Under Review (September 30, 206) Assets Current assets Cash and deposits 3,822,376 3,056,263 Accounts receivabletrade 64,64 245,569 Products 32,363 Real estate for sale 0,034,70 0,408,05 Real estate for sale in process 30,705,244 35,654,794 Prepaid expenses,504,936,777,848 Deferred tax assets 469, ,235 Other,66,554 2,333,770 Allowance for doubtful accounts 2,070 2,994 Total current assets 57,765,898 63,825,90 Noncurrent assets Property, plant and equipment s and structures, net 4,85,885 5,749,09 Machinery, equipment and vehicles, net 5,48 8,567 Tools, furniture and fixtures, net 62,58 24,628 Land 8,354,64 9,329,754 Construction in progress,630,903 2,78,35 Total property, plant and equipment 4,905,403 7,940,357 Intangible assets Goodwill 590,73,69,74 Other 49,357 56,897 Total intangible assets 639,53,748,639 Investments and other assets,274,848,827,346 Total noncurrent assets 6,89,783 2,56,343 Total assets 74,585,68 85,342,244 Liabilities Current liabilities Notes and accounts payable trade,9,46 906,396 Shortterm loans payable 2,03,700 6,59,300 Current portion of bonds 20, ,000 Current portion of longterm loans payable 2,372,47,33,87 Income taxes payable 478,69 320,638 Advances received 4,272,305 4,328,449 Provision for bonuses 03,65 20,545 Other 3,404,698 3,07,276 Total current liabilities 24,856,323 26,490,477 Noncurrent liabilities Bonds payable 55, ,000 Longterm loans payable 26,35,98 34,660,704 Deferred tax liabilities 556,473 5,50 Net defined benefit liability,088 97,65 Asset retirement obligations 63, ,06 Other 285, ,36 Total noncurrent liabilities 27,837,84 36,627,883 Total liabilities 52,694,37 63,8,360 9

10 End of Previous Fiscal Year (March 3, 206) (Unit:,000) End of 2nd Quarter Under Review (September 30, 206) Net assets Shareholders equity Capital stock 2,400,240 2,400,240 Capital surplus 3,72 Retained earnings 2,27,795 2,820,465 Treasury shares,74,370 2,03,690 Total shareholders equity 2,903,666 22,220,728 Accumulated other comprehensive income Valuation difference on availableforsale securities 5,277 Total accumulated other comprehensive income 5,277 Subscription rights to shares 3,55 3,55 Total net assets 2,89,543 22,223,883 Total liabilities and net assets 74,585,68 85,342,244 0

11 (2) Consolidated Quarterly Income Statements and Comprehensive Income Statements Consolidated Quarterly Income Statements Consolidated Income Statements for the Second Quarter (Cumulative) Previous 2nd Quarter (From April, 205 to September 30, 205) (Unit:,000) 2nd Quarter Under Review (From April, 206 to September 30, 206) Net sales 7,405,84 8,74,0 Cost of sales 3,23,520 4,85,569 Gross profit 4,74,293 4,555,540 Selling, general and administrative expenses 2,506,7 3,3,509 Operating income,667,582,424,03 Nonoperating income Interest income,49 4,062 Contract cancellations 7,06 73,553 Commission fee 5,89 6,290 Other 5,202 2,57 Total nonoperating income 39,546 5,424 Nonoperating expenses Interest expenses 83,2 243,85 Commission fee 6,549 66,004 Other 4,28 6,24 Total nonoperating expenses 203,952 35,432 Ordinary income,503,77,224,023 Extraordinary loss Loss from investment securities revaluation 9,444 Total extraordinary loss 9,444 Income before income taxes and minority interests,503,77,204,579 Income taxes current 354, ,46 Income taxes deferred 47,543 06,79 Total income taxes 502,05 404,866 Profit,00,25 799,72 Profit attributable to owners of parent,00,25 799,72

12 Consolidated Quarterly Comprehensive Income Statements Consolidated Income Statements for the Second Quarter (Cumulative) Previous 2nd Quarter (From April, 205 to September 30, 205) (Unit:,000) 2nd Quarter Under Review (From April, 206 to September 30, 206 Profit,00,25 799,72 Other comprehensive income Valuation difference on availableforsale securities 2,820 5,277 Total other comprehensive income 2,820 5,277 Comprehensive income 998,304 84,990 Comprehensive income attributable to Comprehensive income attributable to owners of parent 998,304 84,990 Comprehensive income attributable to noncontrolling interests 2

13 (3) Consolidated Cash Flow Statement Previous 2nd Quarter (From April, 205 to September 30, 205) (Unit:,000) 2nd Quarter Under Review (From April, 206 to September 30, 206 Cash flows from operating activities Income before income taxes and minority interests,503,77,204,579 Depreciation 5,934 20,868 Amortization of guarantee deposits Amortization of goodwill 3,33 49,044 Increase (decrease) in allowance for doubtful accounts 2, Increase (decrease) in provision for bonuses 5,474 8,200 Increase (decrease) in net defined benefit liability Interest and dividend income,56 6,073 Interest expenses 83,2 243,85 Exchange (gain) or loss 2,240 Decrease (increase) in notes and accounts receivable trade 62,660 59,98 Decrease (increase) in inventories 2,73,26 4,628,222 Decrease (increase) in prepaid expenses 362,275 23,680 Increase (decrease) in notes and accounts payable trade 94,422,007,092 Decrease (increase) in consumption taxes refund receivable 7,333 39,730 Increase (decrease) in accrued consumption taxes 54,490 43,642 Increase (decrease) in advances received 765,643 7,666 Increase (decrease) in subsidy advances received 34, ,450 Increase (decrease) in deposits received,5,948 33,43 Other, net 302,66 75,332 Subtotal,657,787 5,287,856 Interest and dividend income received,529 6,073 Interest expenses paid 84, ,798 Income taxes refund,053,244 5,40 Income taxes paid,88,483,073,436 Net cash provided by (used in) operating activities,965,550 6,586,608 Cash flows from investing activities Decrease (increase) in time deposits 8,000 Purchase of property, plant and equipment and intangible assets 85,80 2,327,093 Purchase of investment securities 69,25 5,25 Payments of loans receivable 36,000,727,000 Collection of loans receivable 94, ,850 Purchase of shares of subsidiaries resulting in change in scope of consolidation 20,30,243,602 Other, net 9,026 3,377 Net cash provided by (used in) investing activities 944,953 4,628,438 3

14 (Unit:,000) Previous 2nd Quarter (From April, 205 to September 30, 205) 2nd Quarter Under Review (From April, 206 to September 30, 206 Cash flows from financing activities Net increase (decrease) in shortterm loans payable 00,000 4,055,600 Proceeds from longterm loans payable 4,786,000 4,002,00 Repayments of longterm loans payable 5,62,405 7,33,962 Proceeds from issuance of bonds 300,000 Redemption of bonds 75,000 05,000 Purchase of treasury shares 465,607 Proceeds from sale of treasury shares 79,999 Cash dividends paid 20,375 96,467 Other, net 82,738 9,898 Net cash provided by (used in) financing activities,38,043 0,436,764 Effect of exchange rate changes on cash and cash equivalents 2,240 Net increase (decrease) in cash and cash equivalents 4,048, ,042 Cash and cash equivalents at beginning of period 5,559,57 3,803,689 Cash and cash equivalents at end of period,5,024 3,027,646 4

15 7. Other Information () Records of Sales Previous 2nd Quarter 2nd Quarter Under Review (From April, 205 to September (From April, 206 to September 30, 205) 30, 206) YoY Change (%) Segment Name Sales (,000) Sales (,000) (I) Condominium Apartments for Families and Singles. Real Estate Sales,392,25 0,536, Sales Commissions 302,763 37, Rental Revenue 66, , Other Income 94,686 8, Total Condominium Apartments for Families and Singles,955,894 0,843, (II) Houses and Flats. Real Estate Sales 2,69,7 3,973, Other Income 7,790 22, Total Houses and Flats 2,698,907 3,995, (III) Asset Management. Real Estate Sales 933,942 92, Rental Revenue 289,86 446, Other Income 90,36 2, Total Asset Management,33,445,472,8 2. (IV) Property Management and Related Services. Condominium Management 58, , Sports Club Operation Revenue 56, Other Income 4,402 25, Total Property Management and Related Services 660,387,374, (V) Condominium Apartments for Seniors. Real Estate Sales 773,256,027, Other Income 2,698 23, Total Condominium Apartments for Seniors 775,954,05, (VI) Other,224 4, Total 7,405,84 8,74,

16 (2) Real Estate Sales Information Item Condominium Apartments for Families and Singles Houses and Flats Asset Management Condominium Apartments for Seniors Total Outstanding Contracts at Term Start 603 Previous 2nd Quarter (From April, 205 to September 30, 205) New Contracts Signed Unit Delivered during during Term Term Outstanding Contracts at Term End Value Value Value Value 460 YoY YoY YoY 2 s s 630 7,828,089 (,000) 4,468,634 (,000),694,979 (,000) 20,60,744 (,000) ( %) ( %) ( %) ,4 (,000) 3,586,379 (,000) 2,69,7 (,000),252,673 (,000) 8 ( %) ( %) ( %) ,947 (,000) 92,803 (,000) 933,942 (,000) 32,808 (,000) 49 ( %) ( %) ( %) ,364 (,000),859,092 (,000) 773,256 (,000),424,200 (,000) 68 ( %) ( %) ( %) 2 s 2 s s 703 8,668,8 (,000) 20,835,908 (,000) 6,093,294 (,000) 23,4,425 (,000) ( %) ( %) ( %) Item Condominium Apartments for Families and Singles Houses and Flats Asset Management Condominium Apartments for Seniors Total Outstanding Contracts at Term Start 650 2nd Quarter Under Review (From April, 206 to September 30, 206) New Contracts Signed during Term Unit Delivered during Term Outstanding Contracts at Term End Value Value Value Value 49 YoY YoY YoY ,993,437 (,000) 8,74,642 (,000) 0,573,93 (,000) 22,594,66 (,000) 4 Unit (56.5 %) (90.4 %) (09.7 %) 2 s 9 2 s ,39 (,000) 4,646,707 (,000) 3,973,547 (,000),0,299 (,000) 3 (29.6 %) (47.7 %) (87.9 %) ,856 (,000),099,894 (,000) 92,784 (,000) 224,966 (,000) 75 (9.3 %) (97.7 %) (69.4 %) ,823,624 (,000) 2,869,967 (,000),027,79 (,000) 5,665,80 (,000) 60 (54.4 %) (32.9 %) (397.8 %) 3 s s ,283,057 (,000) 6,79,22 (,000) 6,488,035 (,000) 29,586,233 (,000) (80.6 %) (02.5 %) (26.4 %) 6

17 7