GEO HOLDINGS CORPORATION *This is an English translation for reference purpose only, and the original disclosure document was filed on August 12, 2021 at 16:00 (GMT+9)
Summary of Financial Statements for the First Quarter
of the Fiscal Year Ending March 31, 2022
(Japan GAAP)
GEO HOLDINGS CORPORATION | August 12, 2021 | |
Listed Exchanges : Tokyo | ||
Securities Code: | 2681 | URL: https://www.geonet.co.jp/ |
Representative: | Yuzo Endo, President | |
Yoshiaki Kajita, | ||
Contact: | General Manager, Accounting and Finance | Telephone: +81 52 350 5711 |
Dept.
Scheduled date to submit quarterly report: August 13, 2021
Scheduled date to start dividend payment: ─
Supplementary material on quarterly financial results: Yes
Briefing on this quarterly financial results: No
(Amounts less than million yen are discarded.)
1. Consolidated Financial Results for the First Quarter (from April 1, 2021 to June 30, 2021)
- Consolidated operating results
(The percentages indicate the rates of increase or decrease from the same period of the previous year.)
Net sales | Operating profit | Ordinary profit | Profit | |||||||||||
attributable to owners | ||||||||||||||
of parent | ||||||||||||||
Three months ended: | (Millions of yen) | % | (Millions of yen) | % | (Millions of yen) | % | (Millions of yen) | % | ||||||
June 30, 2021 | 76,088 | (8.2) | 1,155 | (67.5) | 1,341 | (63.1) | 526 | (78.0) | ||||||
June 30, 2020 | 82,860 | 29.6 | 3,557 | 36.7 | 3,641 | 30.0 | 2,392 | 59.0 | ||||||
(Note) Comprehensive income: | 470 million yen | (decrease of | 80.4%) for three | months ended June 30, 2021 | ||||||||||
2,404 million yen (increase of 62.2%) for three months ended June 30, 2020 | ||||||||||||||
Earnings per share (yen) | Fully diluted earnings per share | |||||||||||||
(yen) | ||||||||||||||
Three months ended: | ||||||||||||||
June 30, 2021 | 12.41 | 12.39 | ||||||||||||
June 30, 2020 | 56.44 | 56.34 |
(Note) Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, March 31, 2020) was applied from the beginning of this first quarter. Accordingly, the amounts of three months ended June 30, 2021 above reflect application of this standard.
(2) Consolidated financial position
Total assets | Net assets | Shareholders' equity | |
ratio | |||
(Millions of yen) | (Millions of yen) | % | |
As of June 30, 2021 | 159,122 | 72,495 | 45.3 |
As of March 31, 2021 | 169,738 | 72,982 | 42.8 |
(Reference) Shareholders' | As of June 30, 2021: | 72,065 million yen | |
equity: | As of March 31, 2021: | 72,572 million yen |
(Note) Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No.29, March 31, 2020) was applied from the beginning of this first quarter. Accordingly, the amounts of three months ended June 30, 2021 above reflect application of this standard.
2. Dividends
Dividend per share (yen) | |||||||||
(Record dates) | 1st quarter end | 2nd quarter end | 3rd quarter end | Year-end | Annual | ||||
Fiscal Year ended | - | 17.00 | - | 17.00 | 34.00 | ||||
March 31, 2021 | |||||||||
Fiscal Year ending | - | ||||||||
March 31, 2022 | |||||||||
Fiscal Year ending | |||||||||
March 31, 2022 | - | 12.00 | - | 12.00 | 24.00 | ||||
(Forecast) |
(Note) Modifications in the dividend forecast from the latest disclosure: None
GEO HOLDINGS CORPORATION (2681) Consolidated Financial Results for the First Quarter of the Fiscal Year ending March 31, 2022
3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
(The percentages indicate the rates of increase or decrease from the same period of the previous year.)
Profit attributable to | Earnings | ||||||||
Net sales | Operating profit | Ordinary profit | per | ||||||
owners of parent | |||||||||
share | |||||||||
(Millions of yen) | % | (Millions of yen) | % | (Millions of yen) | % | (Millions of yen) | % | yen | |
Full-year | 320,000 | (2.5) | 4,000 | (7.2) | 4,500 | (6.2) | 2,000 | - | 47.16 |
(Notes) |
- Modifications in the earnings forecast from the latest disclosure: None
- Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No.29, March 31, 2020) was applied from the beginning of this first quarter. Accordingly, the amounts of consolidated earnings forecast above reflect application of this standard.
Notes
- Changes in important subsidiaries during this consolidated three months period (changes in Specified Subsidiaries accompanying a change in the scope of consolidation): None
- Adoptions of special accounting treatments for quarterly consolidated financial statements: None
- Changes in accounting principles or changes in accounting estimates or retrospective restatements
- Changes in accounting principles due to amendments to accounting standards, etc.: Yes
- Changes in accounting principles other than 1): None
- Changes in estimates used for accounting: None
- Retrospective restatements: None
(Note) See p.7 of the Attachments, "2. Consolidated Financial Statements for the Quarter (3) Notes on Consolidated Financial Statements (Changes in accounting principles)" for details.
- Number of shares outstanding (common stock)
- Number of shares outstanding (including treasury shares):
As of June 30, 2021 | 42,405,952 shares | ||
As of March 31, 2021 | 42,405,952 shares | ||
2) | Number of treasury shares: | ||
As of June 30, 2021 | - shares | ||
As of March 31, 2021 | - shares | ||
3) | Average number of outstanding shares: | ||
During three months ended June 30, 2021 | 42,405,952 shares | ||
During three months ended June 30, 2020 | 42,398,952 shares |
- This summary is not subject to the quarterly review procedures by certified public accountants or audit firms.
- Explanation regarding appropriate use of financial forecasts and other special remarks
The forward-looking statements included in this summary such as financial forecasts are based on currently available information and certain assumptions, which we deem to be reasonable as of the date of this summary. There is no guarantee that we will achieve those financial forecasts. Actual results may differ significantly from these forecasts due to various factors. Please see "1. Qualitative Information on Quarterly Results, (3) Explanation on forward-looking information including consolidated earnings forecast" on page 3 of the Attachment on the basis of forecasts and a note on reliance on forecasts.
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Table of Contents for the Attachments | ||
(3) | Explanation on forward-looking information including consolidated earnings forecast ....................................... | 4 |
2. Consolidated Financial Statements for the Quarter ................................................................................................ | 5 | |
(1) | Consolidated Balance Sheets.......................................................................................................................... | 5 |
(2) | Consolidated quarterly income statement and statement of comprehensive income............................................. | 6 |
Consolidated Income Statement .................................................................................................................... | 6 | |
Statement of Comprehensive Income............................................................................................................. | 7 | |
(3) | Notes on consolidated financial statements...................................................................................................... | 8 |
(Notes on going concern assumptions)........................................................................................................... | 8 | |
(Notes on significant change in shareholders' equity) ...................................................................................... | 8 | |
(Changes in accounting principles) ................................................................................................................ | 8 | |
(Application of Accounting Standard on Revenue Recognition)....................................................................... | 8 | |
(Segment information).................................................................................................................................. | 8 |
GEO HOLDINGS CORPORATION (2681) Consolidated Financial Results for the First Quarter of the Fiscal Year ending March 31, 2022
1. Qualitative Information on Quarterly Results
- Details of consolidated operating results
Consolidated Earnings (April 1, 2021 to June 30, 2021)
For three months ended June 30, 2021, economic activities were stagnant from continuous infections with COVID-19 and from the Japanese government requesting businesses to suspend operations and citizens to refrain from going out in order to prevent the spread of the infection.
In response to the declaration of a state of emergency and quasi-emergency measures, our group suspended operations at stores in the applicable regions, and shortened business hours at stores in the other regions. At the stores where we continued operations, we paid sufficient attention to safety by following guidelines from the relevant authorities, including wearing masks and disinfecting with alcohol, to provide our products and services, and has continued to pursue various challenges in an aim to "offer joy to your everyday life."
As a result, for the Group's results for three months ended June 30, 2021, sales resulted in 76,088 million yen (8.2% decrease from the same period of the previous year), operating profit resulted in 1,155 million yen (67.5% decrease from the same period of the previous year), ordinary profit resulted in 1,341 million yen (63.1% decrease from the same period of the previous year), and profit attributable to owners of parent resulted in 526 million yen (78.0% decrease from the same period of the previous year).
In changes in accounting principles, we applied the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No.29, March 31, 2020), etc. from the beginning of this first quarter. Accordingly, comparison of performance with the previous year is made with the amounts that are calculated based on a different calculation method. Please see "2. Consolidated Financial Statements for the Quarter (3) Notes on Consolidated Financial Statements (Changes in Accounting Principles)" for details.
In reuse (non-media) merchandise, sales for clothing, which is the core merchandise particularly for 2nd STREET, was sharply affected from voluntary restraint on going out, and still have not recovered. However, in view of the consumers' rising consciousness to protect the environment and to spend less and save more, we opened 15 new 2nd STREET stores during this first quarter pursuant to our plan to open 60 new stores for 2nd STREET stores during this fiscal year in anticipation that the market scale for reuse merchandise will continue to expand.
In reuse (media) merchandise, we were able to secure stock for reuse game device due to gradual improvement in the balance between demand and supply for new game device. This stock enabled us to sell, thereby enhancing our business cycle. On the other hand, sales for reuse game software did not exceed the sale from the special demand that arose last year from the public staying home, and sales for reuse (media) merchandise overall declined.
In new (media) merchandise that comprises game device and game software, sales settled down from the sales attributable to the special demand that arose in the same period of the previous year from the public staying home. However, improvement was made on the situation of demand exceeding supply where demand and supply are better balanced now.
In our rental business where we mainly rent videos such as DVDs, the special demand that arose in the first quarter of the previous year from the public staying home due to voluntary restraint on going out contributed to our results. However, for this first quarter, the reduced supply of new titles that has been continuing from the postponement of release of movies in theatres that has been continuing from the previous year has sharply affected sales. This shortage in supply is anticipated to linger also from the spread of video streaming services.
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GEO HOLDINGS CORPORATION (2681) Consolidated Financial Results for the First Quarter of the Fiscal Year ending March 31, 2022
The number of our stores as of June 30, 2021 is as follows. The figures in ( ) for "Total" show decrease from the end of the previous fiscal year.
Directly-managed stores | FC Stores and Distributors | Total | |||||||||
Newly | Closed | Newly | Closed | ||||||||
opened | opened | ||||||||||
Total number of GEO | |||||||||||
group stores and | 1,759 | 24 | 22 | 197 | 0 | 2 | 1,956 | 0 | |||
facilities | |||||||||||
GEO | 1,009 | 2 | 13 | 146 | 0 | 1 | 1,155 | (12) | |||
2nd STREET | 685 | 15 | 4 | 51 | 0 | 1 | 736 | 10 | |||
2nd STREET | 18 | 2 | 0 | 18 | 2 | ||||||
(overseas) | |||||||||||
OKURA TOKYO | 16 | 2 | 1 | 16 | 1 | ||||||
LuckRack | 12 | 3 | 1 | 12 | 2 | ||||||
WAREHOUSE | 10 | 0 | 1 | 10 | (1) | ||||||
Others | 9 | 0 | 2 | 9 | (2) | ||||||
Notes: |
- The number of stores is counted based on each store name.
- GEO includes stores that sell and purchase home game related items, mobile phones, and smart phones, and rent DVDs where they operate under the store names of GEO and GEO mobile.
- 2nd STREET includes stores that sell and purchase clothing, home appliances and other items where they operate under the names of 2nd STREET, Super 2nd STREET, 2nd OUTDOOR, JUMBLE STORE, etc.
- 2nd STREET (overseas) which were counted as"Others"in the previous fiscal year, are separately indicated from this fiscal year.
- Details of consolidated financial position
[Assets]
The current assets as of June 30, 2021 resulted in 102,694 million yen which is a decrease of 10,993 million yen from the previous fiscal year end. This decrease is mainly due to a decrease of 10,378 million yen in cash and deposits, and a decrease of 2,927 million yen in notes and accounts receivable while there was an increase of 2,602 million yen in merchandise. The non-current assets resulted in 56,428 million yen, which is an increase of 377 million yen from the previous fiscal year end. This increase is mainly due to an increase of 561 million yen in buildings and structures (net) while there was a decrease of 277 million yen in investments and other assets.
As a result, the total assets as of June 30, 2021 resulted in 159,122 million yen which is a decrease of 10,615 million yen from the previous fiscal year end.
[Liabilities]
The current liabilities as of June 30, 2021 resulted in 32,689 million yen which is a decrease of 8,349 million yen from the previous fiscal year end. This decrease is mainly due to a decrease of 4,153 million yen in accounts payable and a decrease of 8,508 million yen in current liabilities-other while there was an increase of 4,000 million yen in short-term borrowings. Non-current liabilities resulted in 53,937 million yen, which is a decrease of 1,779 million yen from the previous fiscal year end. This decrease is mainly due to a decrease of 1,468 million yen in long-term borrowings.
As a result, total liabilities resulted in 86,627 million yen which decreased by 10,128 million yen from the previous fiscal year end.
[Net assets]
The net assets as of June 30, 2021 resulted in 72,495 million yen, which is a decrease of 487 million yen from the previous fiscal year end. This decrease is mainly due to 526 million yen in profit attributable to owners of parent and dividends of 720 million yen paid from retained earnings.
From the above, the equity ratio resulted in 45.3% (42.8% as of the previous fiscal year end).
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GEO Holdings Corporation published this content on 25 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 August 2021 01:03:05 UTC.
