AIT CORPORATION January 12, 2022 | ||
Consolidated Financial Results | ||
for the Third Quarter of the Fiscal Year Ending February 28, 2022 | ||
(Nine Months Ended November 30, 2021) | ||
[Japanese GAAP] | ||
Company name: | AIT CORPORATION | Listing: TSE 1st section |
Securities code: | 9381 | URL: http://www.ait-jp.com/ |
Representative: | Hidekazu Yagura, President and CEO | |
Contact: | Toshiaki Uchida, Executive Officer, General Manager, Accounting & Finance Dept. | |
Tel: +81-6-6260-3450 | ||
Scheduled date of filing of Quarterly Report: | January 14, 2022 | |
Scheduled date of payment of dividend: | - | |
Preparation of supplementary materials for quarterly financial results: None | ||
Holding of quarterly financial results meeting: | None |
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Third Quarter (March 1, 2021 - November 30, 2021) of the Fiscal Year Ending February 28, 2022
(1) Consolidated results of operations
Operating revenue | Operating profit | Ordinary profit | Profit attributable to | |||||||
owners of parent | ||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||
Nine months ended Nov. 30, 2021 | 44,282 | 31.6 | 2,957 | 76.0 | 3,154 | 64.7 | 1,993 | 55.1 | ||
Nine months ended Nov. 30, 2020 | 33,641 | (4.0) | 1,679 | 12.8 | 1,915 | 7.1 | 1,285 | 5.0 | ||
Note: Comprehensive income | Nine | months ended Nov. 30, 2021: | 2,306 million yen | (up 75.5%) | ||||||
Nine months ended Nov. 30, 2020: | 1,314 million yen | (up 30.5%) | ||||||||
Net income per share | Diluted net income per share | |||||||||
Yen | Yen | |||||||||
Nine months ended Nov. 30, 2021 | 84.87 | - | ||||||||
Nine months ended Nov. 30, 2020 | 54.40 | - |
Note: AIT acquired 199,800 treasury shares by November 6, 2020 upon resolution of the Board of Directors on July 13, 2020. The net income per share for nine months ended November 30, 2021 is calculated using an average number of shares during the period of 23,493,654.
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | |||
Million yen | Million yen | % | |||
As of Nov. 30, 2021 | 23,735 | 13,517 | 56.2 | ||
As of Feb. 28, 2021 | 21,630 | 12,231 | 55.6 | ||
Reference: Equity capital | As of Nov. 30, 2021: 13,343 million yen | As of Feb. 28, 2021: 12,022 million yen |
2. Dividends
Dividend per share | |||||||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | |||||||
Yen | Yen | Yen | Yen | Yen | |||||||
Fiscal year ended Feb. 28, 2021 | - | 18.00 | - | 20.00 | 38.00 | ||||||
Fiscal year ending Feb. 28, 2022 | - | 22.00 | - | ||||||||
Fiscal year ending Feb. 28, 2022 (forecast) | 36.00 | 58.00 |
Notes: 1. Revision to the most recently announced dividend forecast: None
2. Breakdown of the year-end dividend for the fiscal year ended February 28, 2021
Ordinary dividend: ¥18.00; Commemorative dividend to celebrate 25th founding anniversary: ¥2.00
3. Breakdown of the year-end dividend forecast for the fiscal year ending February 28, 2022 Ordinary dividend: ¥29.00; Commemorative dividend to celebrate 15th listing anniversary: ¥7.00
3. Consolidated Forecast for the Fiscal Year Ending February 28, 2022 (March 1, 2021 - February 28, 2022)
(Percentages represent year-on-year changes)
Operating revenue | Operating profit | Ordinary profit | Profit attributable | Net income per | ||||||
to owners of parent | share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||
Full year | 57,000 | 24.5 | 3,270 | 41.9 | 3,480 | 36.7 | 2,250 | 29.9 | 95.77 | |
Note: Revision | to the most recently announced forecast of consolidated results: None |
* Notes
-
Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): Yes
Newly added: -
Excluded: 1, AIT International of America, Inc. - Application of special accounting methods for presenting quarterly consolidated financial statements: None
- Changes in accounting policies and accounting-based estimates, and restatements
1) | Changes in accounting policies due to revisions in accounting standards, others: | None |
2) | Changes in accounting policies other than 1) above: | None |
3) | Changes in accounting-based estimates: | None |
4) | Restatements: | None |
(4) Number of outstanding shares (common stock)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Nov. 30, 2021: | 23,913,600 shares | As of Feb. 28, 2021: | 23,913,600 shares |
2) Number of treasury shares at the end of the period | |||
As of Nov. 30, 2021: | 419,975 shares | As of Feb. 28, 2021: | 419,912 shares |
3) Average number of shares during the period | |||
Nine months ended Nov. 30, 2021: | 23,493,654 shares | Nine months ended Nov. 30, 2020: | 23,635,269 shares |
The current quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.
Cautionary statement with respect to forecasts of future performance and other special items Note concerning forward-looking statements
Forward-looking statements in these materials are based on certain assumptions judged to be valid and information currently available to AIT. These statements are not promises by AIT regarding future performance. Actual performance may differ significantly from these forecasts for a number of reasons. Please refer to "1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Forecast of Consolidated Results and Other Forward-looking Statements" on page 3 of the attachments regarding preconditions or other related matters for forecasts shown above.
Change in units for monetary figures
Monetary figures in the quarterly consolidated financial statements and in other items had been shown in thousands of yen in prior years. Beginning with the first quarter of the fiscal year ending in February 2022, monetary figures are shown in millions of yen. To facilitate comparisons, figures for the previous first nine months and fiscal year have been also revised to millions of yen.
AIT CORPORATION (9381) Financial Results for the Third Quarter of FY2/22
Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance | 2 | |
(1) | Explanation of Results of Operations | 2 |
(2) | Explanation of Financial Position | 3 |
(3) | Explanation of Forecast of Consolidated Results and Other Forward-looking Statements | 3 |
2. Quarterly Consolidated Financial Statements and Notes | 4 | |
(1) | Quarterly Consolidated Balance Sheet | 4 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income | 6 |
(3) | Notes to Quarterly Consolidated Financial Statements | 8 |
Going Concern Assumption | 8 | |
Significant Changes in Shareholders' Equity | 8 | |
Changes in the Scope of Consolidation or Application of the Equity Method | 8 | |
Additional Information | 8 | |
Segment and Other Information | 9 |
1
AIT CORPORATION (9381) Financial Results for the Third Quarter of FY2/22
1. Qualitative Information on Quarterly Consolidated Financial Performance
(1) Explanation of Results of Operations
The Japanese economy slowly recovered during the first nine months of the fiscal year ending February 28, 2022 even as the pandemic continued. However, the outlook for the economy is still uncertain. The business climate for the AIT Group remained challenging because of sluggish consumer spending and shortages of shipping containers and space on containerships and other cargo ships.
The AIT Group focused on establishing relationships with new customers and increasing the volume of business with current customers, with emphasis on cargo going by sea from China and Southeast Asia to Japan. In addition, there were many activities to secure the number of containers and space for cargo on ships by continuously negotiating with shipping companies in order to maintain the stability of international cargo movements. During the first nine months, the volume of household products, home appliances and other consumer products increased because of the growth of consumption linked with reluctance to go out during the pandemic. There was also a small recovery in the volume of apparel shipments.
Freight rates on some routes used by the AIT Group have been consistently high because of the shortage of shipping containers and other reasons. High rates contributed to the growth of revenue and earnings during the first nine months of current the fiscal year. In addition, the AIT Group continued to review and hold down selling, general and administrative expenses in order to increase earnings.
Operating revenue increased 31.6% year-on-year to 44,282 million yen. Earnings at all levels were much higher than one year earlier mainly because of the significant increase in operating revenue. Operating profit increased 76.0% to 2,957 million yen, ordinary profit was up 64.7% to 3,154 million yen and profit attributable to owners of parent increased 55.1% to 1,993 million yen.
Results by business segment are as follows.
In Other, which is not a reportable segment, U.S. subsidiary AIT International of America, Inc. was liquidated in the first quarter of the current fiscal year and excluded from consolidation. In the China reportable segment, Nisshin International Trading Co.,Ltd. is making preparations to begin liquidation proceedings.
1) Japan
Economic and social activity was severely limited by declarations of a state of emergency during the first nine months of the current fiscal year and there was a big negative impact on consumer spending. As a result, economic growth began to decline.
Although market conditions in Japan were difficult, consumer spending associated with staying home for safety during the pandemic continued to climb. There were sales activities to receive more orders for integrated freight transport services and many digital transformation activities for providing customers with high-quality services.
Due to these activities, the number of containers handled in the sea freight sector increased 2.2% from one year earlier to 205,579 TEU for imports and the total for imports and exports increased 2.0% to 215,709 TEU. Customs clearance orders were higher than one year earlier, increasing 6.8% to 113,029 as orders at subsidiaries began to recover. Furthermore, in addition to the growth in the volume of shipments, freight rates increased significantly because of the shipping container shortage. These high rates made a big contribution to operating revenue and the gross profit. We are constantly reexamining selling, general and administrative expenses and using the digital transformation to operate more efficiently in order to cut costs for more earnings growth.
As a result, operating revenue increased 36.7% from one year earlier to 36,913 million yen. Segment profit increased 119.0% to 2,457 million yen mainly because of a big increase in the gross profit and measures to hold down personnel expenses and expenses for sales activities.
2) China
The consistently low volume of apparel shipments makes it very difficult to receive orders for merchandise inspections, needle detection and other services associated with these shipments. However, the volume of freight
2
AIT CORPORATION (9381) Financial Results for the Third Quarter of FY2/22
for Japan handled by the AIT Group has recovered in comparison with one year earlier. These favorable trends are creating more opportunities involving cargo shipments to increase revenue in China.
As a result, operating revenue increased 16.2% from one year earlier to 6,619 million yen and segment profit decreased 5.3% to 466 million yen because of higher expenses caused partly by the temporary reduction of legal welfare expenses in China during the first nine months of the previous fiscal year.
3) Other
At the subsidiary in Taiwan, the volume of cargo and revenue remained steady. However, revenue was down at the subsidiary in Vietnam because of the sharp increase in the number of COVID-19 infections. Revenue declined at the Myanmar subsidiary because of the pandemic and civil unrest. The performance of this segment was also affected by the liquidation of a U.S. subsidiary. As a result, operating revenue decreased 21.1% to 749 million yen and segment profit decreased 49.0% to 33 million yen.
Note: TEU (twenty-foot equivalent unit) is a unit of cargo capacity based on a standard intermodal container.
- Explanation of Financial Position Assets
Total assets increased 2,104 million yen from the end of the previous fiscal year to 23,735 million yen at the end of the period under review.
Current assets increased 2,686 million yen to 19,540 million yen. This was mainly due to increases in notes and accounts receivable-trade of 1,954 million yen, advances paid of 547 million yen and cash and deposits of 167 million yen.
Non-current assets decreased 581 million yen to 4,195 million yen. This was mainly due to decreases in customer-related assets of 197 million yen, goodwill of 81 million yen and deferred tax assets of 61 million yen.
Liabilities
Total liabilities increased 818 million yen to 10,218 million yen.
Current liabilities increased 844 million yen to 8,608 million yen. This was mainly due to an increase in accounts payable-trade of 1,690 million yen, which was partially offset by a decrease in current portion of long-term borrowings of 1,000 million yen.
Non-current liabilities decreased 25 million yen to 1,609 million yen. This was mainly due to a decrease in deferred tax liabilities of 4 million yen.
Net assets
Net assets increased 1,285 million yen to 13,517 million yen. This was mainly due to a booking of profit attributable to owners of parent of 1,993 million yen, dividends distributed from retained earnings of 986 million yen and a 310 million yen increase in foreign currency translation adjustment.
(3) Explanation of Forecast of Consolidated Results and Other Forward-looking Statements
Revenue and earnings at all levels in the first nine months were much higher than in the same period of the previous fiscal year. Results of operations are currently in line with the upward revisions to the fiscal year revenue and earnings forecasts announced on November 18, 2021 along with an increase in the forecast for the fiscal year dividend, which includes a commemorative dividend. Consequently, there are no revisions to the current fiscal year forecasts for consolidated results of operations for the fiscal year ending February 28, 2022 that was announced on November 18, 2021.
We will continue to monitor changes in the business climate and will make an announcement promptly if there is a need to revise the fiscal year forecast.
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AIT Corporation published this content on 27 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2022 03:18:02 UTC.
