UNIVERSAL ENTERTAINMENT CORPORATION This is an English translation of the official announcement in Japanese that was released on February 14, 2022. The translation is prepared for the readers' convenience only. All readers are strongly recommended to refer to the original Japanese version for complete and accurate information. Should there be any inconsistency between the translation and the official Japanese text, the latter shall prevail.
Summary of Financial Data and Business Results for
the Fiscal Year Ended December 31, 2021
(JP GAAP, Consolidated)
February 14, 2022
Listed Exchange: Tokyo Stock Exchange
Company Name: Universal Entertainment Corporation
Code No.: 6425 URL: https://www.universal-777.com
Representative: | (Name) Jun Fujimoto | (Title) Representative Director and President |
Contact: | (Name) Kenshi Asano | (Title) Director and CFO |
TEL: +81-3-5530-3055 |
Scheduled Date of Ordinary Shareholders' Meeting: March 30, 2022
Scheduled Submission Date of Securities Registration Report: March 31, 2022
Scheduled Commencement Date of Dividend Payment: -
Supplementary Briefing Materials for Settlement of Accounts: Yes
Briefing on Settlement of Accounts: None scheduled
(Amounts rounded down to nearest million yen)
1. Consolidated Business Results for 2021 (Period from January 1, 2021 to December 31, 2021)
(1) Consolidated Operating Results
(Percentages refer to changes from the previous fiscal year)
Net Sales | Operating Profit | Ordinary Profit | Net Income Attributable | ||||||||||||
to Owners of Parent | |||||||||||||||
Million Yen | % | Million Yen | % | Million Yen | % | Million Yen | % | ||||||||
Fiscal Year Ended December 31, 2021 | 90,435 | (0.5) | 1,959 | (23.3) | (2,508) | - | (19,052) | - | |||||||
Fiscal Year Ended December 31, 2020 | 90,871 | (27.3) | 2,555 | 556.1 | (9,249) | - | (19,218) | - | |||||||
(Note) Comprehensive income | |||||||||||||||
Fiscal Year Ended December 31, 2021: (18,657) million yen (-%) | |||||||||||||||
Fiscal Year Ended December 31, 2020: (12,452) million yen (-%) | |||||||||||||||
Diluted Net | Ratio of | Ratio of | Ratio of | ||||||||||||
Net Income | Net Income to | ||||||||||||||
Income per | Ordinary Profit | Operating Profit | |||||||||||||
per Share | Shareholders' | ||||||||||||||
Share | to Total Assets | to Net Sales | |||||||||||||
Equity | |||||||||||||||
Yen | Yen | % | % | % | |||||||||||
Fiscal Year Ended December 31, 2021 | (245.88) | - | (5.5) | (0.4) | 2.2 | ||||||||||
Fiscal Year Ended December 31, 2020 | (247.60) | - | (5.3) | (1.6) | 2.8 |
(Reference) Equity in earnings/losses of affiliates
Fiscal Year Ended December 31, 2021: 1,548 million yen
Fiscal Year Ended December 31, 2020: 1,459 million yen
(Note) "Diluted net income per share" is not stated, because net loss was posted despite the existence of latent shares with a dilution effect.
(2) Consolidated Financial Status
Total Assets | Net Assets | Ratio of | Net Assets per Share | ||
Shareholders' Equity | |||||
Million Yen | Million Yen | % | Yen | ||
As of December 31, 2021 | 572,381 | 338,919 | 59.2 | 4,373.31 | |
As of December 31, 2020 | 568,502 | 357,577 | 62.9 | 4,614.09 | |
(Reference) Shareholders' equity | |||||
As of December 31, 2021: | 338,861 million yen | ||||
As of December 31, 2020: | 357,519 million yen |
(3) Consolidated Cash Flow Position
Cash Flows from | Cash Flows from | Cash Flows from | Balance of Cash and | |
Cash Equivalents at the | ||||
Operating Activities | Investing Activities | Financing Activities | ||
End of Period | ||||
Million Yen | Million Yen | Million Yen | Million Yen | |
Fiscal Year Ended December 31, 2021 | 1,745 | (7,037) | (1,819) | 30,546 |
Fiscal Year Ended December 31, 2020 | 3,112 | (18,496) | 14,436 | 37,133 |
2. Status of Dividends
Annual Dividends | Total | Dividend | Ratio of | |||||
Dividend to Net | ||||||||
End of | End of | End of | End of Fiscal | Dividends | Payout Ratio | |||
Total | Assets | |||||||
1st Quarter | 2nd Quarter | 3rd Quarter | Year | (Annual) | (Consolidated) | |||
(Consolidated) | ||||||||
Yen | Yen | Yen | Yen | Yen | Million Yen | % | % | |
Fiscal Year Ended | - | 0.00 | - | 0.00 | 0.00 | - | - | - |
December 31, 2020 | ||||||||
Fiscal Year Ended | - | 0.00 | - | 0.00 | 0.00 | - | - | - |
December 31, 2021 | ||||||||
Fiscal Year Ending | ||||||||
December 31, 2022 | - | - | - | - | - | - | ||
(Forecast) |
(Note) The dividend forecast for 2022 is to be determined.
3. Consolidated Business Results Forecast for 2022 (Period from January 1, 2022 to December 31, 2022)
(Percentages refer to changes from the | previous fiscal year) | ||||||||
Net Sales | Operating Profit | Ordinary Profit | Net Income Attributable | Net Income per Share | |||||
to Owners of Parent | |||||||||
Million Yen | % | Million Yen | % | Million Yen | % | Million Yen | % | Yen | |
Full Fiscal Year | - | - | - | - | - | - | - | - | - |
Due to the impact of the global COVID-19 pandemic, it is difficult to determine the effect that this crisis will have on Universal Entertainment's full-year consolidated business results. Consequently, there is no forecast for 2022.
* Matters of Note
(1) Changes in material subsidiaries during the period (Changes in specified subsidiaries | |||
accompanying changes in scope of consolidation) | : None | ||
(2) Changes in accounting policies, changes in accounting estimates and/or restatements | |||
1) | Changes in accounting policies accompanying revision of accounting standards, etc. | : None | |
2) | Changes in accounting policies other than 1) | : None | |
3) | Changes in accounting estimates | : None | |
4) | Restatements | : None | |
(3) Number of outstanding shares (common stock) | |||
1) | Shares issued at end of fiscal period (including treasury shares) | ||
As of December 31, 2021: | 80,195,000 shares | ||
As of December 31, 2020: | 80,195,000 shares | ||
2) | Number of treasury shares at end of fiscal period | ||
As of December 31, 2021: | 2,711,001 shares | ||
As of December 31, 2020: | 2,710,772 shares |
3) Average number of shares during fiscal period
Fiscal Year Ended December 31, 2021: 77,484,081 shares
Fiscal Year Ended December 31, 2020: 77,616,121 shares
(Reference) Summary of the Non-consolidated Business Results
1. Non-consolidated Business Results for 2021 (Period from January 1, 2021 to December 31, 2021)
(1) Non-consolidated Operating Results
(Percentages refer to changes from the previous fiscal year)
Net Sales | Operating Profit | Ordinary Profit | Net Income | ||||||||
Million Yen | % | Million Yen | % | Million Yen | % | Million Yen | % | ||||
Fiscal Year Ended December 31, 2021 | 56,037 | (13.1) | 3,149 | (69.8) | 1,211 | - | (1,417) | - | |||
Fiscal Year Ended December 31, 2020 | 64,489 | 17.7 | 10,424 | 615.4 | (1,402) | - | (503) | - | |||
Net Income per Share | Diluted Net Income per Share | ||||||||||
Yen | Yen | ||||||||||
Fiscal Year Ended December 31, 2021 | (18.30) | - | |||||||||
Fiscal Year Ended December 31, 2020 | (6.48) | - |
(Note) "Diluted net income per share" is not stated, because net loss was posted despite the existence of latent shares with a dilution effect.
(2) Non-consolidated Financial Status
Total Assets | Net Assets | Ratio of | Net Assets | ||
Shareholders' Equity | per Share | ||||
Million Yen | Million Yen | % | Yen | ||
As of December 31, 2021 | 481,446 | 357,514 | 74.2 | 4,613.28 | |
As of December 31, 2020 | 465,370 | 358,936 | 77.1 | 4,631.63 | |
(Reference) Shareholders' equity | |||||
As of December 31, 2021: | 357,455 million yen | ||||
As of December 31, 2020: | 358,877 million yen |
Reason for differences between non-consolidated financial results for 2020 and 2021
In 2020, more than 100,000 units of Pachislot and Pachinko machines were sold mainly because of new titles in two unusually long-running brands used for category 5 machines: "SLOT Basilisk: The Kouga Ninja Scrolls Kizuna 2" and "OKIDOKI! 2-30."
In 2021, sales activities in the Amusement Equipments Business were based on the strategy of launching major titles mainly in the fourth quarter of 2021 and the first quarter of 2022. As a result, the number of units sold in this business decreased from 139,152 in 2020 to 127,094 in 2021, resulting in lower sales and operating profit. Ordinary profit increased because of a foreign exchange gain as the yen weakened in relation to the U.S. dollar. The net loss increased because of a loss on sales and retirement of non-current assets and deferred income taxes.
- The current financial report is not subject to audit by certified public accountants or auditing firms.
- Explanation on Proper Usage of Business Results Forecast and Other Noteworthy Items
The forward-looking statements regarding business results, etc. as featured herein are based on information that is currently available and certain assumptions that are determined to be reasonable, but are not promises by Universal Entertainment Corporation regarding future performance. Actual business results may vary significantly due to a number of factors. For preconditions for business forecasts, notes on the usage of business forecasts and so forth, please see "1. Overview of Results of Operations, etc., (1) Overview of Operating Results for the Fiscal Year Under Review" on page 2 of the Attached Materials.
Universal Entertainment Corporation (6425) Fiscal Year Ended December 2021 | ||
Attached Materials: Table of Contents | ||
1. Overview of Results of Operations, etc. | 2 | |
(1) | Overview of Operating Results for the Fiscal Year Under Review | 2 |
(2) | Overview of Financial Status for the Fiscal Year Under Review | 4 |
(3) | Overview of Cash Flows for the Fiscal Year Under Review | 5 |
(4) | Basic Policy Regarding Distribution of Profits and Dividends for the Current and Next Fiscal Years | 6 |
2. Basic Approach to the Selection of Accounting Standards | 6 | |
3. Consolidated Financial Statements and Notes | 7 | |
(1) | Consolidated Balance Sheet | 7 |
(2) | Consolidated Statement of Income and Consolidated Statement of Comprehensive Income | 9 |
Consolidated Statement of Income | 9 | |
Consolidated Statement of Comprehensive Income | 10 | |
(3) | Consolidated Statement of Changes in Equity | 11 |
(4) | Consolidated Statement of Cash Flows | 13 |
(5) | Notes to Consolidated Financial Statements | 15 |
(Notes Pertaining to Going Concern) | 15 | |
(Changes in Significant Accounting Policies for the Preparation of Consolidated Financial Statements) | 15 | |
(Notes in Event of Significant Fluctuation in Amount of Shareholders' Equity) | 15 | |
(Notes to Consolidated Statement of Income) | 15 | |
(Additional Information) | 15 | |
(Segment Information) | 15 | |
(Per Share Information) | 19 | |
(Material Subsequent Events) | 19 |
1
Universal Entertainment Corporation (6425) Fiscal Year Ended December 2021
1. Overview of Results of Operations, etc.
(1) Overview of Operating Results for the Fiscal Year Under Review
(Million yen) | ||||
Fiscal year ended | Net sales | Operating profit | Ordinary profit | Net loss attributable to |
December 31, 2021 | (loss) | owners of parent | ||
Non-consolidated | 56,037 | 3,149 | 1,211 | (1,417) |
Consolidated | 90,435 | 1,959 | (2,508) | (19,052) |
The COVID-19 pandemic that started early in 2020 continued to severely impact the Japanese economy during 2021. There was a brief recovery backed by progress with vaccinations and government measures to support the economy. However, the outlook for the economy remains uncertain because of another wave of infections caused by the Omicron variant, the global semiconductor shortage and other problems.
In the Amusement Equipments Business, the number of Pachislot and Pachinko machines supplied remained low as people were reluctant to visit pachinko halls because of declarations of states of emergency and other government pandemic safety measures. The extension of transitional measures concerning the removal of machines that comply with previous regulations also held down sales of these machines. Sales activities during 2021 were based on the strategy of launching many major titles in the fourth quarter of 2021 and the first quarter of 2022. As a result, the number of units sold decreased from 139,152 in 2020 to 127,094 in 2021. In the Integrated Resort Business, operations continued in stages while complying with flexibility with the Philippine Government's regulations and mitigation of COVID-19 countermeasures. Sales in this business increased 27.2% and, partly because of lower selling, general and administrative expenses, the operating loss was much smaller than in 2020.
As a result, sales in 2021 totaled 90,435 million yen, down 0.5% from 2020. Fixed expenses totaling 8,150 million yen (depreciation and other items) of facilities at OKADA MANILA that were not used during the suspension of operations were reclassified from selling, general and administrative expenses to an extraordinary loss. There was a foreign exchange gain as the yen weakened in relation to the U.S. dollar, a provision for the allowance for doubtful accounts for loans to subsidiaries and associates, and a loss on sales and retirement of non-current assets, mainly in the Integrated Resort Business. As a result, operating profit was 1,959 million yen (a decrease of 23.3% year on year), the ordinary loss was 2,508 million yen (compared with an ordinary loss of 9,249 million yen in 2020), and the net loss attributable to owners of parent was 19,052 million yen (compared with net loss attributable to owners of parent of 19,218 million yen in 2020).
Business segment performance was as follows. Sales are prior to adjustments for inter-segment sales or transfers. (Million yen)
Fiscal year ended December 31, 2021 | Net sales | Operating expenses | Segment profit (loss) | |
and others | ||||
Amusement Equipments Business | 54,186 | 40,875 | 13,311 | |
Integrated Resort Business | 35,234 | 37,100 | (1,865) | |
Others | 854 | 1,008 | (153) | |
Total | 90,276 | 78,983 | 11,292 |
(i) Amusement Equipments Business
In 2021, the Amusement Equipments Business posted net sales of 54,186 million yen (a decrease of 12.3% year on year) and an operating profit of 13,311 million yen (a decrease of 34.7% year on year).
In the Amusement Equipments Business, expectations for the invigoration of this market increased due to the full-scale launch of category 6.1 machines with more game-playing characteristics. This is the result of the easing of voluntary restrictions concerning Pachislot machines. Despite these expectations, there was no recovery in the number of customers and the level of operations at pachinko halls because of declarations of states of emergency and other government pandemic safety measures during 2021 following a rebound in COVID-19 cases. Consequently, pachinko hall operators remained cautious about replacing existing machines with new titles. Furthermore, the deadline for removing machines based on old regulations was extended from the end of November 2021 to the end of January 2022 because of another wave of COVID-19 cases. Due to these actions, the demand at pachinko halls for new titles to
2
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Universal Entertainment Corporation published this content on 14 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 February 2022 07:42:10 UTC.
