Torq, Inc.TSE: 8077

Consolidated Financial Results for the Nine Months Ended July 31, 2021

Sep 13, 2021 at 6:01 AM UTC · Issued by Torq, Inc.

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Nine Months Ended July 31, 2021

[Japanese GAAP]

September 13, 2021

Company name: TORQ Inc.

Stock exchange listing: Tokyo

Code number: 8077

URL: https://www.torq.co.jp

Representative: Higaki Toshiyuki , President

Contact: Haruta Hisashi , General Manager, Administration Department

Phone: 06-6535-3690

Scheduled date of filing quarterly securities report: September 14, 2021

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: No

Schedule of quarterly financial results briefing session: No

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Nine Months Ended July 31, 2021 (November 01, 2020 to July 31, 2021)

(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent

Nine months ended	Million yen		%	Million yen	%	Million yen	%	Million yen	%
July 31, 2021	14,076		(1.6)	18	3,664.7	133	(7.2)	54	(14.3)
July 31, 2020	14,301		(14.1)	0	(99.9)	144	(70.4)	63	(80.9)

(Note) Comprehensive income:	Nine months ended July 31, 2021:
	Nine months ended July 31, 2020:

¥	(295)	million	[	-%]
¥	(879)	million	[	-%]

	Basic earnings	Diluted earnings per
	per share		share
Nine months ended	Yen			Yen
July 31, 2021	2.19			-
July 31, 2020	2.52			-
(2) Consolidated Financial Position
	Total assets		Net assets	Capital adequacy ratio

As of	Million yen			Million yen	%
July 31, 2021	27,603			10,169	36.8
October 31, 2020	24,299			10,607	43.7
(Reference) Equity: As of	July 31, 2021:	¥	10,169 million
As of	October 31, 2020:	¥	10,607 million

2. Dividends

				Annual dividends

	1st	2nd		3rd	Year-end	Total
	quarter-end	quarter-end	quarter-end

	Yen		Yen	Yen	Yen	Yen
Fiscal year ended October 31, 2020	-		3.00	-	3.00	6.00
Fiscal year ending October 31, 2021	-		3.00	-

Fiscal year ending October 31, 2021					3.00	6.00
(Forecast)

(Note) Revision to the forecast for dividends	announced most	recently:	No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending October 31, 2021(November 01, 2020 to October 31, 2021)

(% indicates changes from the previous corresponding period.)

	Net sales	Operating profit		Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share

	Million yen	%	Million yen		%	Million yen	%	Million yen	%	Yen
Full year	18,300	(3.4)	(100)		-	40	119.8	(15)	-	(0.61)
(Note) Revision to the financial results forecast announced most recently:	No
* Notes:
(1) Changes in significant subsidiaries during the nine months ended July 31, 2021
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	No

Changes in accounting policies, changes in accounting estimates and retrospective restatement
1. Changes in accounting policies due to the revision of accounting standards: No
2. Changes in accounting policies other than 1) above: No
3. Changes in accounting estimates: No
4. Retrospective restatement: No
Total number of issued shares (common shares)
1. Total number of issued shares at the end of the period (including treasury shares):

July 31, 2021:	28,007,448	shares
October 31, 2020:	28,007,448	shares
2) Total number of treasury shares at the end of the period:
July 31, 2021:	3,253,212	shares
October 31, 2020:	3,253,212	shares

3) Average number of shares during the period:
Nine months ended July 31, 2021:	24,754,236	shares
Nine months ended July 31, 2020:	25,126,484	shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

			(Thousand yen)
		As of October 31,2020	As of July 31,2021

Assets
	Current assets
	Cash and deposits	1,956,474	1,842,592
	Notes and accounts receivable - trade	6,366,652	6,650,581
	Securities	86,248	336,545
	Merchandise	3,744,172	4,156,303
	Other	88,587	87,430
	Allowance for doubtful accounts	(10,628)	(7,571)
	Total current assets	12,231,507	13,065,879
	Non-current assets
	Property, plant and equipment
	Buildings and structures, net	618,632	599,485
	Machinery, equipment and vehicles, net	225,304	256,047
	Land	4,476,806	4,476,806
	Construction in progress	723,379	3,156,813
	Other, net	138,397	121,726
	Total property, plant and equipment	6,182,520	8,610,880
	Intangible assets	102,600	113,735
	Investments and other assets
	Investment securities	5,096,086	5,337,128
	Distressed receivables	10,288	8,859
	Other	686,539	475,914
	Allowance for doubtful accounts	(10,288)	(8,859)
	Total investments and other assets	5,782,626	5,813,042
	Total non-current assets	12,067,747	14,537,658
	Total assets	24,299,254	27,603,538

				(Thousand yen)
			As of October 31,2020	As of July 31,2021

Liabilities
	Current liabilities
		Notes and accounts payable - trade	3,645,801	4,067,256
		Short-term borrowings	6,900,000	4,880,000
		Current portion of long-term borrowings	200,000	93,318
		Provision for bonuses	121,122	55,746
		Other	475,312	643,183
		Total current liabilities	11,342,236	9,739,504
	Non-current liabilities
		Long-term borrowings	1,100,000	6,604,681
		Deferred tax liabilities	1,044,278	889,081
		Retirement benefit liability	198,114	196,745
		Long-term guarantee deposits	6,500	4,500
		Other	610	-
		Total non-current liabilities	2,349,503	7,695,007
	Total liabilities	13,691,739	17,434,512
Net assets
	Shareholders' equity
		Share capital	2,712,335	2,712,335
		Capital surplus	1,728,146	1,728,146
		Retained earnings	4,500,948	4,407,735
		Treasury shares	(956,101)	(956,101)
		Total shareholders' equity	7,985,329	7,892,116
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	2,581,848	2,243,145
		securities

		Remeasurements of defined benefit plans	40,337	33,763
		Total accumulated other comprehensive income	2,622,186	2,276,909
	Total net assets	10,607,515	10,169,026
Total liabilities and net assets	24,299,254	27,603,538

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the nine months)

		(Thousand yen)
	For the nine months	For the nine months
	ended July 31,2020	ended July 31,2021

Net sales	14,301,550	14,076,481
Cost of sales	11,343,932	11,171,214
Gross profit	2,957,617	2,905,267
Selling, general and administrative expenses	2,957,135	2,887,113
Operating profit	482	18,153
Non-operating income
Dividend income	104,144	79,393
Rental income	10,878	10,565
Purchase discounts	60,092	55,353
Gain on investments in securities	282	29,884
Other	21,967	10,134
Total non-operating income	197,365	185,332
Non-operating expenses
Interest expenses	21,907	32,473
Sales discounts	26,478	27,515
Other	5,314	9,674
Total non-operating expenses	53,700	69,663
Ordinary profit	144,147	133,822
Extraordinary income
Gain on sales of investment securities	0	45
Total extraordinary income	0	45
Extraordinary losses
Loss on valuation of investment securities	28,014	-
Total extraordinary losses	28,014	-
Profit before income taxes	116,133	133,868
Income taxes - current	49,458	69,736
Income taxes - deferred	3,480	9,978
Total income taxes	52,939	79,714
Profit	63,194	54,153
Profit attributable to owners of parent	63,194	54,153

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