*This is an English translation for reference purpose only, and the original disclosure document was filed on February 10, 2022 at 16:00 (GMT+9)
Summary of Financial Statements for the Third Quarter
of the Fiscal Year Ending March 31, 2022
(Japan GAAP)
GEO HOLDINGS CORPORATION | February 10, 2022 | |
Listed Exchanges : Tokyo | ||
Securities Code: | 2681 | URL: http://www.geonet.co.jp |
Representative: | Yuzo Endo, President | |
Contact: | Yoshiaki Kajita, | |
General Manager, Accounting and | Telephone: +81 52 350 5711 | |
Finance Dept. |
Scheduled date to submit quarterly report: February 10, 2022
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 Third Quarter (from April 1, 2021 to December 31, 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 | |||||||||||||
Nine months ended: | (Millions of yen) | % | (Millions of yen) | % | (Millions of yen) | % | (Millions of yen) | % | |||||
December 31, 2021 | 244,991 | 0.7 | 5,661 | 27.0 | 6,643 | 39.2 | 4,308 | 322.9 | |||||
December 31, 2020 | 243,396 | 9.6 | 4,457 | (37.2) | 4,774 | (37.5) | 1,018 | (75.8) | |||||
(Note) Comprehensive income: | 4,112 million yen | (increase | of 276.4%) for nine months ended December 31, 2021 | ||||||||||
1,092 million yen (decrease of 74.2%) for nine months ended December 31, 2020 | |||||||||||||
Earnings per share (yen) | Fully diluted earnings per share (yen) | ||||||||||||
Nine months ended: | |||||||||||||
December 31, 2021 | 101.60 | 101.43 | |||||||||||
December 31, 2020 | 24.03 | 23.98 |
(Note) Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, March 31, 2020) was applied from the beginning of the first quarter of this fiscal year. Accordingly, the amounts of nine months ended December 31, 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 December 31, 2021 | 176,371 | 75,566 | 42.6 | |
As of March 31, 2021 | 169,738 | 72,982 | 42.8 | |
(Reference) Shareholders' equity: | As of December 31, 2021: | 75,199 million yen | ||
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 the first quarter of this fiscal year. Accordingly, the amounts of nine months ended December 31, 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 | - | 12.00 | - | ||||||
March 31, 2022 | |||||||||
Fiscal Year ending | 12.00 | 24.00 | |||||||
March 31, 2022 | |||||||||
(Forecast) | |||||||||
(Note) Modifications in the dividend forecast from the latest disclosure: None |
GEO HOLDINGS CORPORATION (2681) Consolidated Financial Results for the Third 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.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Earnings | |||||
per | |||||||||
owners of parent | |||||||||
share | |||||||||
(Millions of yen) | % | (Millions of yen) | % | (Millions of yen) | % | (Millions of yen) | % | yen | |
Full-year | 330,000 | 0.5 | 7,000 | 62.3 | 8,000 | 66.8 | 4,000 | - | 94.33 |
(Notes)
- Modifications in the earnings forecast from the latest disclosure: Yes
- Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, March 31, 2020) was applied from the beginning of the first quarter of this fiscal year. Accordingly, the amounts of forecast above reflect application of this standard.
Notes
- Changes in important subsidiaries during this consolidated nine 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) Please see "2. Consolidated Financial Statements for the Quarter, (3) Notes on consolidated financial statements (Changes in accounting principles)" on page 8 of the Attachments for details.
(4) Number of shares outstanding (common stock) | |||
1) | Number of shares outstanding (including treasury shares): | ||
As of December 31, 2021 | 42,405,952 shares | ||
As of March 31, 2021 | 42,405,952 shares | ||
2) | Number of treasury shares: | ||
As of December 31, 2021 | - | ||
As of March 31, 2021 | - | ||
3) | Average number of outstanding shares: | ||
During nine months ended December 31, 2021 | 42,405,952 shares | ||
During nine months ended December 31, 2020 | 42,400,574 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 4 of the Attachment on the basis of forecasts and a note on reliance on forecasts.
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GEO HOLDINGS CORPORATION (2681) Consolidated Financial Results for the Third Quarter of the Fiscal Year ending March 31, 2022
Table of Contents for the Attachments | ||
1. Qualitative Information on Quarterly Results.................................................................................................................. | 2 | |
(1) | Details of consolidated operating results ................................................................................................................... | 2 |
(2) | Details of consolidated financial position .................................................................................................................. | 3 |
(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 |
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 | |
(Segment information) .............................................................................................................................................. | 8 |
GEO HOLDINGS CORPORATION (2681) Consolidated Financial Results for the Third 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 December 31, 2021)
For the business environment for nine months ended December 31, 2021, while voluntary restraint on going out continued to prevent the spread of COVID-19 infection, there was an air of relaxation on this restraint from around late September where signs were observed for consumption activities and economic activities returning to normal. However, there remained concerns over the resurgence of the spread of variant of coronavirus and the outlook was still uncertain.
In such environment, the Group has continued various efforts such as requiring employees to wear masks and disinfect with alcohol by following guidelines from the relevant authorities, and providing our products and services by paying sufficient attention to safety of customers and employees in aim to "offer joy to your everyday life."
In reuse (comprehensive) merchandise1, 2nd STREET in which reuse clothing is its core merchandise was strongly affected by voluntary restraint on going out, however, its sales turned towards recovery from relaxation on this restraint. In reuse luxury items, wholesale of luxury watches, etc. to overseas was strong due to active overseas market.
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 brand new game device. This stock enabled us to sell, thereby improving our business cycle. However, sales declined for reuse game software being unable to reach the level of sales that resulted from special demand that arose in 2020 from the public staying home. In reuse mobile device such as smartphones, etc., buying and selling showed signs of recovery from the launch of a new model iPhone.
In brand new game-related merchandise, sales for this third quarter were not as strong in the previous years over the Christmas and year-end shopping season due to shortage in supply of home game device "PlayStation 5" and lack of big titles for game software.
In our rental business where we mainly rent videos such as DVDs, the falling trends in sales is continuing due to 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, and also due to the spread of video streaming services.
As a result, for the Group's results for nine months ended December 31, 2021, sales resulted in 244,991 million yen (0.7% increase from the same period of the previous year), operating profit resulted in 5,661 million yen (27.0% increase from the same period of the previous year), ordinary profit resulted in 6,643 million yen (39.2% increase from the same period of the previous year), and profit attributable to owners of parent resulted in 4,308 million yen (322.9% increase from the same period of the previous year). As change in accounting principles, we applied the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, March 31, 2020) from the beginning of the first quarter of this fiscal year. Therefore, comparison with the results of the same period of the previous year is made with values based on different accounting standards. Please see "2. Consolidated Financial Statements for the Quarter, (3) Notes on consolidated financial statements (Changes in accounting principles)" for details.
1 From the second quarter of this fiscal year, we changed the English term of "reuse (non-media)" merchandise to "reuse (comprehensive)" merchandise to clarify that "reuse (comprehensive)" merchandise comprehensively includes reuse merchandise other than "reuse (media)" merchandise.
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GEO HOLDINGS CORPORATION (2681) Consolidated Financial Results for the Third Quarter of the Fiscal Year ending March 31, 2022
The number of our stores as of December 31, 2021 is as follows. The figures in ( ) for "Total" show increase or
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 | 1,767 | 74 | 64 | 195 | 3 | 7 | 1,962 | (6) | ||
group stores | ||||||||||
GEO | 988 | 4 | 36 | 141 | 0 | 6 | 1,129 | (-38) | ||
2nd STREET | 699 | 46 | 21 | 54 | 3 | 1 | 753 | (27) | ||
2nd STREET | 26 | 10 | 0 | 26 | (10) | |||||
(overseas) | ||||||||||
OKURA TOKYO | 19 | 5 | 1 | 19 | (4) | |||||
LuckRack | 16 | 9 | 3 | 16 | (6) | |||||
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 buy and sell 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 buy and sell clothing, home appliances and other items where they operate under the names of 2nd STREET, Super 2nd STREET, 2nd OUTDOOR, and 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 December 31, 2021 resulted in 119,844 million yen, which is an increase of 6,157 million yen from the previous fiscal year end. This increase is mainly due to increases of 1,127 million yen in notes and accounts receivable-trade, 9,289 million yen in merchandise, and 3,237 million yen in other current assets while there was a decrease of 7,497 million yen in cash and deposits. Non-current assets resulted in 56,526 million yen which is an increase of 475 million yen from the previous fiscal year end. This increase is mainly due to increases of 1,075 million yen in buildings and structures, net, and 393 million yen in intangible assets while there was a decrease of 890 million yen in other of investments and other assets.
As a result, the total assets as of December 31, 2021 resulted in 176,371 million yen, which is an increase of 6,633 million yen from the previous fiscal year end.
[Liabilities]
The current liabilities as of December 31, 2021 resulted in 43,830 million yen, which is an increase of 2,792 million yen from the previous fiscal year end. This increase is mainly due to increases of 7,000 million yen in short-term borrowings and 1,525 million yen in current portion of long-term borrowings while there was a decrease of 6,249 million yen in other of non-current liabilities. The non-current liabilities resulted in 56,974 million yen, which is an increase of 1,256 million yen from the previous fiscal year end. This increase is mainly due to an increase of 1,612 million yen in long-term borrowings.
As a result, the total liabilities resulted in 100,804 million yen, which is an increase of 4,049 million yen from the previous fiscal year end.
[Net assets]
The net assets as of December 31, 2021 resulted in 75,566 million yen, which is an increase of 2,583 million yen from the previous fiscal year end. This increase is mainly due to 4,308 million yen in profit attributable to owners of parent and dividends of 1,229 million yen paid from retained earnings.
From the above, the equity ratio resulted in 42.6% (42.8% as of the previous fiscal year end).
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