Note: This document has been translated from a part of the Japanese original for reference purposes only.
In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
Consolidated Financial Results
for the First Three Months of the Fiscal Year Ending October 31, 2022
(Under IFRS)
March 16, 2022 | ||
Company name: | ASIRO Inc. | Listing: Tokyo Stock Exchange |
Securities code: | 7378 | URL: https://asiro.co.jp/ |
Representative: | Hiroto Nakayama, Representative Director and President | |
Contact: | Satoshi Kawamura, Director and CFO | |
Tel: | +81-3-5348-4363 | |
Planned date of quarterly report submission: | March 16, 2022 | |
Planned start date for payment of dividends: | ― | |
Preparation of supplemental explanatory material for quarterly results: | Yes | |
Holding of briefing for quarterly results: | Yes |
(Amounts are rounded to the nearest million yen)
1. Consolidated Financial Results of the First Three Months of the Fiscal Year Ending October 31, 2022 (November 1, 2021 to January 31, 2022)
- Consolidated Operating Results
(Percentage figures represent year-on-year changes)
Revenue | Operating profit | Profit before tax | Profit | Profit attributable | Total | ||||||||||||||
to owners of | comprehensive | ||||||||||||||||||
parent | income | ||||||||||||||||||
Millions of | % | Millions of | % | Millions of | % | Millions of | % | Millions of | % | Millions of | % | ||||||||
yen | yen | yen | yen | yen | yen | ||||||||||||||
Three months ended | 485 | 38.6 | 143 | 65.9 | 142 | 69.4 | 97 | 88.0 | 97 | 88.0 | 110 | 111.5 | |||||||
January 31, 2022 | |||||||||||||||||||
Three months ended | 350 | (1.9) | 86 | 54.0 | 84 | 56.4 | 52 | 56.2 | 52 | 56.2 | 52 | 55.2 | |||||||
January 31, 2021 | |||||||||||||||||||
Basic earnings per | Diluted earnings per | ||||||||||||||||||
share | share | ||||||||||||||||||
Yen | Yen | ||||||||||||||||||
Three months ended | 14.34 | 12.82 | |||||||||||||||||
January 31, 2022 | |||||||||||||||||||
Three months ended | 8.64 | 8.64 | |||||||||||||||||
January 31, 2021 | |||||||||||||||||||
(Reference) EBITDA: | |||||||||||||||||||
Three months ended January 31, 2022 | 157 million yen (up 58.7%) | ||||||||||||||||||
Three months ended January 31, 2021 | 99 million yen (up 31.9%) | ||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||
Three months ended January 31, 2022 | 148 million yen (up 56.6%) | ||||||||||||||||||
Three months ended January 31, 2021 | 95 million yen (up 33.6%) | ||||||||||||||||||
(Note) | EBITDA and adjusted EBITDA are disclosed as useful comparative information on the Company's performance. |
Please see "1. Overview of Operating Results and Other Information (3) Explanation of Cash Flows (Reference Information)" on page 3 of the attached materials for information on the definitions and calculation methods of each
indicator.
(Note) The Company's shares were unlisted in the first three months of the fiscal year ended October 31, 2021, and although share acquisition rights existed, their dilutive effect is not included in the calculation of diluted earnings per share for the first three months of the fiscal year ended October 31, 2021 because vesting is conditional upon listing.
- Consolidated Financial Position
Equity attributable to | Ratio of equity | |||
Total assets | Total equity | attributable to owners of | ||
owners of parent | ||||
parent | ||||
Millions of yen | Millions of yen | Millions of yen | % | |
As of January 31, 2022 | 2,744 | 2,232 | 2,232 | 81.3 |
As of October 31, 2021 | 2,802 | 2,222 | 2,222 | 79.3 |
Note: Non-consolidated figures are disclosed in the consolidated financial position for the three months ended January 31, 2022 because consolidated subsidiaries no longer existed as of January 31, 2022 due to a change in the scope of consolidation.
2. | Dividend Status | ||||||||
Annual dividends per share | |||||||||
1Q-end | 2Q-end | 3Q-end | 4Q-end | Total | |||||
yen | yen | yen | yen | yen | |||||
Fiscal year ended October 31, 2021 | － | 0.00 | － | 0.00 | 0.00 | ||||
Fiscal year ending October 31, 2022 | － | ||||||||
Fiscal year ending October 31, 2022 | 0.00 | － | 0.00 | 0.00 | |||||
(forecast) | |||||||||
Note: Revisions to most recently announced dividend forecast: | No |
3. Consolidated Earnings Forecasts of the Fiscal Year Ending October 31, 2022 (November 1, 2021 to October 31, 2022) (Percentage figures represent year-on-yearchanges)
Revenue | Operating profit | Profit before tax | Profit | Profit attributable to | Basic earnings per | ||||||||
owners of parent | share | ||||||||||||
Millions of | % | Millions of | % | Millions of | % | Millions of | % | Millions of | % | Yen | |||
yen | yen | yen | yen | yen | |||||||||
Full year | 1,861 | 19.8 | 406 | 12.4 | 403 | 13.8 | 276 | 20.6 | 276 | 20.6 | 40.39 | ||
Note: Revisions to most recently announced earnings forecasts: No |
- Notes
-
Changes in significant subsidiaries during the period
(Changes in specified subsidiaries resulting in changes in scope of consolidation): Yes
Newly added: | - companies |
Excluded: | 1 company (Company name) trient, Inc. |
The Company performed an absorption-type merger of trient, Inc. on December 1, 2021.
- Changes in accounting policies and changes in accounting estimates
(i) | Changes in accounting policies required by IFRS: | None |
(ii) | Changes in accounting policies due to other reasons: | None |
(iii) | Changes in accounting estimates: | None |
- Number of shares issued (common stock)
- Number of shares issued at the end of the period (including treasury stock)
As of January 31, 2022 | 6,829,000 shares |
As of October 31, 2021 | 6,000,000 shares |
- Number of treasury stock at the end of the period
As of January 31, 2022 | 133,400 shares |
As of October 31, 2021 | - shares |
- Average number of shares during the period
Three months ended January 31, 2022 | 6,798,953 shares |
Three months ended January 31, 2021 | 6,000,000 shares |
- This report is exempt from the quarterly review by certified public accountants or auditing firms.
- Explanation on appropriate use of results forecasts and other notes
The results forecasts and other forward-looking statements shown in these materials are based on information obtained by the Company at present, and certain assumptions deemed to be reasonable. They are not intended to be a promise by the Company to achieve the results. Furthermore, actual results, etc. may vary significantly due to a variety of factors.
Due to factors such as the timing of the impact of COVID-19 subsiding remaining unclear, the Company promptly disclose any revisions to earnings forecasts that are required based on future business trends.
Appendix | ||
Table of Contents | ||
1. Qualitative Information on Operating Result................................................................................................. | 2 | |
(1) | Explanation of Operating Results........................................................................................................... | 2 |
(2) | Explanation of Financial Position........................................................................................................... | 2 |
(3) | Explanation of Cash Flows..................................................................................................................... | 3 |
(4) | Explanation of Forward-looking Information such as Consolidated Earnings Forecasts....................... | 4 |
2. Condensed Quarterly Consolidated Financial Statements and Notes ............................................................ | 5 | |
(1) | Condensed Quarterly Consolidated Statement of Financial Position..................................................... | 5 |
(2) | Condensed Quarterly Consolidated Statements of Income and Comprehensive Income....................... | 7 |
(3) | Condensed Quarterly Consolidated Statement of Changes in Equity .................................................... | 9 |
(4) | Condensed Quarterly Consolidated Statements of Cash Flows............................................................ | 10 |
(5) | Notes to Condensed Quarterly Consolidated Financial Statements ..................................................... | 11 |
(Notes on Going Concern Assumptions) ............................................................................................... | 11 | |
(Changes in Accounting Policies).......................................................................................................... | 11 | |
(Changes in Accounting Estimates)....................................................................................................... | 11 | |
(Segment Information)........................................................................................................................... | 11 | |
(Per Share Information) ......................................................................................................................... | 12 | |
(Significant Events after Reporting Period)........................................................................................... | 13 |
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1. Qualitative Information on Operating Result
- Explanation of Operating Results
During the three months ended January 31, 2022, the Japanese economy proceeded to return to normal due to the spread of vaccinations against the novel coronavirus (COVID-19), but there has been a resurgence of uncertainty about the future due to the spread of the disease caused by variant strains.
Furthermore, in the Internet advertising market surrounding the Group, advertising expenditures continued to grow consistently to 2.7052 trillion yen (up 21.4% year on year), and exceeded advertising expenditures in the four forms of mass media (aggregate of advertising expenses in the newspapers, magazines, radio and television) for the first time. (Source: Dentsu Inc. "2021 Advertising Expenditures in Japan")
In such business conditions, the Group is conducting business centered on Legal Media & Other, and operates Legal Media primarily with attorneys as customers and Other Media for customers other than attorneys. Furthermore, in addition to Legal Media & Other, the Group provides personnel referral services for attorneys, etc. in Legal Human Resources.
In Legal Media that accounts for a large portion of revenue, as a result of increasing the number of new contracts by strengthening sales activities and customer success activities providing customer support after signing contracts, and focusing on lowering the churn rate, the number of advertising slots posted (Note
- in January 2022 was 1,621 (up 20.0% year on year), and the number of advertising customers (Note 2) was 627 (up 22.0% year on year), with business growing steadily.
(Note 1) The number of advertising slots posted is the total number, and multiple slots are counted in cases where the same customer has multiple advertising slots.
(Note 2) The number of advertising customers is the actual number of customers with advertising slots.
Furthermore, in Other Media, there was an increase in business in the "Carism" career change media based on heightened recruiting motivation of companies aimed at normalization of the economy, and the number of inquiries during the three months ended January 31, 2022 increased significantly to 7,845 (up 82.5% year on year).
Consequently, the results for the three months ended January 31, 2022 were as follows. Revenue was 485,153 thousand yen (up 38.6% year on year), operating profit was 143,222 thousand yen (up 65.9% year on year), profit before tax was 142,169 thousand yen (up 69.4% year on year) and profit was 97,469 thousand yen (up 88.0% year on year).
Operating results by segment were as follows. [Legal Media & Other]
In addition to advertising revenue increasing due to increases in advertising slots posted and advertising customers in Legal Media, due to the increase in inquiries in the "Carism" career change business in Other Media as mentioned above, revenue was 458,786 thousand yen (up 35.6% year on year) and segment profit was 206,395 thousand yen (up 42.0% year on year).
Legal Media revenue was 331,119 thousand yen (up 23.1% year on year) and operating profit was 149,536 thousand yen (up 12.0% year on year). Other Media revenue was 127,667 thousand yen (up 84.4% year on year) and operating profit was 56,859 thousand yen (up 381.9% year on year).
[Legal Human Resources]
Since the launch of the business in two fiscal years ago, there was a steady increase in registrants and contracts in personnel referral services, resulting in revenue of 26,367 thousand yen (up 124.5% year on year), and segment profit of 11,130 thousand yen (segment loss of 2,237 thousand yen in the previous fiscal year).
(2) Explanation of Financial Position
(i) Assets
Current assets as of January 31, 2022 were 1,465,122 thousand yen, a decrease of 55,348 thousand yen compared to October 31, 2021. This was mainly due to an increase of 42,780 thousand yen in trade and other receivables, and a decrease of 99,851 thousand yen in cash and cash equivalents.
-2-
Non-current assets as of January 31, 2022 were 1,278,941 thousand yen, a decrease of 3,076 thousand yen compared to October 31, 2021. This was mainly due to an increase of 17,156 thousand yen in other financial assets, and decreases of 8,231 thousand yen in right-of-use assets, 5,597 thousand yen in deferred tax assets and 4,167 thousand yen in property, plant and equipment.
As a result, total assets as of January 31, 2022 were 2,744,062 thousand yen.
(ii) Liabilities
Current liabilities as of January 31, 2022 were 303,351 thousand yen, a decrease of 55,945 thousand yen compared to October 31, 2021. This was mainly due to an increase of 36,250 thousand yen in other current liabilities, and decreases of 34,292 thousand yen in other financial liabilities, 20,305 thousand yen in income taxes payable and 17,277 thousand yen in trade and other payables.
Non-current liabilities as of January 31, 2022 were 208,541 thousand yen, a decrease of 12,252 thousand yen compared to October 31, 2021. This was mainly due to decreases of 11,707 thousand yen in borrowings.
As a result, total liabilities as of January 31, 2022 were 511,892 thousand yen.
(iii) Equity
Total equity as of January 31, 2022 was 2,232,171 thousand yen, an increase of 9,773 thousand yen compared to October 31, 2021.
This was mainly due to increases of 97,469 thousand yen in retained earnings and 12,642 thousand yen in other components of equity, and an increase of 99,773 thousand yen in treasury shares, which are deductible.
(3) Explanation of Cash Flows
Cash and cash equivalents as of January 31, 2022 amounted to 1,203,992 thousand yen, a decrease of 99,851 thousand yen compared to October 31, 2021.
The status of cash flows and factors therein during the three months ended January 31, 2022 were as follows.
(Cash flows from operating activities)
Cash flows from operating activities for the three months ended January 31, 2022 were net inflows of 32,945 thousand yen (net inflows of 44,318 thousand yen for the three months ended January 31, 2021). This was mainly due to the increase caused by the recording of 142,169 thousand yen in profit before tax, which was partially offset by the decrease caused by 64,755 thousand yen in income taxes paid.
(Cash flows from investing activities)
Cash flows from investing activities for the three months ended January 31, 2022 were net inflows of 375 thousand yen (net outflows of 9,524 thousand yen for the three months ended January 31, 2021). This was mainly due to the increase caused by 1,000 thousand yen in proceeds from refund of leasehold deposits and the decrease caused by 625 thousand yen in purchase of property, plant and equipment.
(Cash flows from financing activities)
Cash flows from financing activities for the three months ended January 31, 2022 were net outflows of 133,171 thousand yen (net outflows of 29,172 thousand yen for the three months ended January 31, 2021). This was mainly due to 100,588 thousand yen in purchase of treasury shares and 25,008 thousand yen in repayments of long-term borrowings.
(Reference information)
The Group has decided to publish EBITDA and adjusted EBITDA as reference indicators on operating results for the purpose of providing useful information for investors to evaluate the Group's results and understand the pure growth of the Group's corporate value without being limited by differences in accounting standards. EBITDA excludes the impact of non-cash expense items (depreciation and
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