This is a translation of the original Japanese text of the "Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2018." Should there be any discrepancy between any part of this translation and the original Japanese text, the latter shall prevail.
Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2018Company Name: GLORY LTD. Stock exchange listing: Tokyo (1st Section)
August 4, 2017
Code number: 6457 URL: http://www.glory-global.com/ Representative: Hirokazu Onoe President & Representative Director
Contact person: Motozumi Miwa Executive Vice President & Representative Director TEL +81-79-297-3131
Scheduled filing date of Quarterly Securities Report: August 10, 2017
Scheduled date of dividend payments: ―
Preparation of quarterly earnings supplementary explanatory material: Yes
Holding of quarterly earnings presentation: Yes (for analysts and institutional investors)
(Amounts less than one million yen are rounded downward.)
Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2018 (from April 1, 2017 to June 30, 2017)
Consolidated Operating Results (cumulative)
(The percentages show the changes from the corresponding period of the previous year.)
Net sales
Operating income
Ordinary income
Net income attributable to owners of parent
Three months ended June 30, 2017
(Millions of yen)
(%)
(Millions of yen)
(%)
(Millions of yen)
1,195
(751)
(%)
―
―
(Millions of yen)
335
(860)
(%)
―
―
47,213
2.4
2,346
(12.5)
Three months ended
June 30, 2016
46,090
2.9
2,683
190.3
(Note) Comprehensive income
Three months ended June 30, 2017:
¥972 million [
― %]
Three months ended June 30, 2016:
¥(11,594) million [
― %]
Net income per share
Fully diluted net income per share
Three months ended June 30, 2017
Three months ended
June 30, 2016
(Yen)
5.25
(13.10)
(Yen)
―
―
Consolidated Financial Position
Total assets
Net assets
Ownership equity ratio
Net assets per share
As of June 30, 2017
(Millions of yen)
(Millions of yen)
(%)
(Yen)
308,806
190,620
60.8
2,935.86
As of March 31, 2017
312,821
191,443
60.1
2,939.78
(Reference) Ownership equity
As of June 30, 2017: ¥187,756 million As of March 31, 2017: ¥187,949 million
Dividends
(Record date)
Dividends per share
First quarter-end
Second quarter-end
Third quarter-end
Year-end
Annual
Year ended March 31, 2017
(Yen)
(Yen)
(Yen)
(Yen)
(Yen)
―
30.00
―
30.00
60.00
Year ending March 31, 2018
―
Year ending March 31, 2018 (forecast)
31.00
―
31.00
62.00
(Note) Revisions to the latest dividend forecast: None
Consolidated Financial Forecast for the Year Ending March 31, 2018 (from April 1, 2017 to March 31, 2018)
(The percentages show the changes from the corresponding period of the previous year.)
Net sales
Operating income
Ordinary income
Net income attributable to owners
of parent
Net income per share
Six months ending September 30, 2017
(Millions of yen)
(%)
(Millions of yen)
(%)
(Millions of yen)
(%)
(Millions of yen)
(%)
(Yen)
105,000
2.6
6,000
(28.2)
6,000
54.7
3,000
40.4
46.92
Full year
235,000
5.6
21,000
3.1
21,000
22.1
13,000
25.2
203.32
(Note) Revisions to the latest consolidated financial forecast: None
Notes:
Changes in significant subsidiaries during the period (changes in specified subsidiaries involving a change in the scope of consolidation):
None
Application of accounting methods specific to preparation of the quarterly consolidated financial statements: Yes
Changes in accounting policies and estimates, and restatements
Changes in accounting policies associated with revisions of accounting standards, etc.: None
Changes in accounting policies other than (a): None
Changes in accounting estimates: None
Restatements: None
Total number of shares issued (common stock)
Total number of shares issued at the end of the period (including treasury shares) As of June 30, 2017: 68,638,210 shares
As of March 31, 2017: 68,638,210 shares
Number of treasury shares at the end of the period
As of June 30, 2017: 4,496,099 shares
As of March 31, 2017: 4,496,099 shares
Average number of shares (cumulative from the beginning of the period) Three months ended June 30, 2017: 63,939,636 shares
Three months ended June 30, 2016: 65,693,136 shares
(Note) In addition to the number of treasury shares at the end of the period, there also existed Company shares owned by the "Board Incentive Plan (BIP) Trust Account" and "Employee Stock Ownership Plan (ESOP) Trust Account". (As of June 30, 2017: 189,309 shares, As of June 30, 2016: 181,790 shares)
(Note) These "Consolidated Financial Results" are not required to be subjected to quarterly reviews.
(Note) Explanation regarding the appropriate use of financial forecasts and other special items
The forward-looking statements such as operational forecasts contained in this report are based on the information currently available to the Company and certain assumptions which the Company regards as legitimate, and are not promises regarding the achievement of forecasts. Actual performance may differ greatly from these forecasts due to various present and future factors. For the assumptions and other related matters concerning the financial forecasts, please refer to "1. Qualitative Information on the Financial Statements,
Consolidated Financial Forecasts and Other Forward-looking Statements" on page 5 of the Attachment.
Attachment Contents 1. Qualitative Information on the Financial Statements.............................................................................................. 5(1) Operating Results............................................................................................................................................................................ 5
(2) Consolidated Financial Forecasts and Other Forward-looking Statements ..................................................................................... 5
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto ...................................................... 6(1) Quarterly Consolidated Balance Sheet............................................................................................................................................ 6
(2) Quarterly Consolidated Statements of Income and Comprehensive Income .................................................................................. 8
Quarterly Consolidated Statement of Income ................................................................................................................................. 8
Quarterly Consolidated Statement of Comprehensive Income........................................................................................................ 9
Notes to Quarterly Consolidated Financial Statements 10
- Qualitative Information on the Financial Statements
-
Operating Results
In the three months ended June 30, 2017, the Japanese economy showed a trend of gradual recovery driven by an observed trend toward a pickup in personal consumption, and improvements in both corporate capital investment and the employment situation. The global economy also maintained its trend of gradual recovery, reflecting such positive developments as continuing trends toward recovery in the United States and Europe, and, in Asia, an observed trend toward the improvement of China's economy.
Under these conditions, in this last year of its three-year 2017 Medium-Term Management Plan, which started in April 2015, the GLORY Group (the "Group") proactively implemented the three strategies-Business, Constitutional, and Corporate Management-under its basic policy to "Realize business growth through 'customer-oriented superb manufacturing' and enhance profitability to achieve the Long-Range Vision 2018."
As a result, net sales in this three-month period totaled ¥47,213 million (up 2.4% year on year). Of this, sales of merchandise and finished goods were ¥30,806 million (up 1.2% year on year) and sales from maintenance services were ¥16,407 million (up 4.8% year on year). Operating income was ¥2,346 million (down 12.5% year on year), ordinary income was ¥1,195 million (vs. ordinary loss of ¥751 million in the corresponding period of the previous year), and net income attributable to owners of parent was ¥335 million (vs. net loss attributable to owners of parent of ¥860 million in the corresponding period of the previous year).
Results of operations in each business segment are as follows.
Financial marketAlthough sales of "coin and banknote recyclers" for tellers were steady due to our capturing of replacement demand, sales of this segment's main product, "open teller systems," were sluggish for compact models for small- and medium-sized financial outlets due to the large-scale demand of the previous year having run its course.
As a result, net sales in this segment were ¥10,015 million (down 12.0% year on year) and operating income was ¥348 million (down 74.1% year on year) due to deterioration in product mix, etc.
Retail and transportation marketAlthough sales of "e-money charger" were robust, sales of this segment's main product, "coin and banknote recyclers" for cashiers, and "sales proceeds deposit machines" for the cash-in-transit market were slow. Therefore, sales for the overall market were maintained at the level of the corresponding period of the previous year.
As a result, net sales in this segment were ¥9,607 million (down 0.8% year on year) and operating income was ¥608 million (down 29.4% year on year).
Amusement marketSales of this segment's main products such as "card systems" were strong, and net sales in this segment were ¥5,319 million (up 38.8% year on year) and operating income was ¥386 million (up 328.5% year on year).
Overseas marketSales of "banknote recyclers" for the financial market were robust in the United States, and sales of "sales proceeds deposit machines" for the retail market were steady in Europe. On the other hand, in Asia, although sales of "sales proceeds deposit machines" for the retail market were strong, sales of "banknote recyclers" for the financial market were sluggish.
As a result, net sales in this segment were ¥21,725 million (up 4.9% year on year) and operating income was ¥1,221 million (up 153.3% year on year).
In the "Other" business segment, net sales were ¥545 million (up 10.5% year on year) and operating loss was ¥218 million (vs. operating loss of ¥97 million in the corresponding period of the previous year).
All amounts in this section do not include consumption taxes.
- Consolidated Financial Forecasts and Other Forward-looking Statements
No changes have been made to the consolidated financial forecasts for the year ending March 31, 2018 that were announced on May 11, 2017.
- Quarterly Consolidated Financial Statements and Significant Notes Thereto
-
Quarterly Consolidated Balance Sheet
(Millions of yen)
Current assets
Cash and deposits
74,292
70,817
Notes and accounts receivable - trade
47,137
40,506
Securities
3,000
3,000
Merchandise and finished goods
26,098
31,502
Work in process
8,491
9,294
Raw materials and supplies
11,536
11,676
Other
10,543
11,346
Allowance for doubtful accounts
(502)
(550)
Total current assets
180,597
177,593
Non-current assets
Property, plant and equipment
35,657
35,709
Intangible assets
Customer relationships
22,221
21,824
Goodwill
51,573
50,474
Other
5,648
5,524
Total intangible assets
79,443
77,823
Investments and other assets
Investment securities
10,010
10,137
Other
7,305
7,734
Allowance for doubtful accounts
(194)
(190)
Total investments and other assets
17,121
17,680
Total non-current assets
132,223
131,213
Total assets
312,821
308,806
Liabilities
Current liabilities
Assets
As of March 31, 2017 As of June 30, 2017
Notes and accounts payable - trade
18,484
17,901
Short-term loans payable
25,602
24,742
Current portion of long-term loans payable
8,843
9,047
Income taxes payable
2,903
1,305
Provision for bonuses
8,191
4,713
Provision for directors' bonuses
94
23
Provision for stock grant
61
22
Other
28,261
34,125
Total current liabilities
92,443
91,881
Non-current liabilities
Long-term loans payable
13,271
10,807
Provision for stock grant
116
143
Net defined benefit liability
4,419
4,492
Other
11,126
10,860
Total non-current liabilities
28,933
26,304
Total liabilities
121,377
118,186
(Millions of yen)
Net assets
As of March 31, 2017 As of June 30, 2017
Shareholders' equity
Capital stock
12,892
12,892
Capital surplus
20,974
20,991
Retained earnings
158,504
157,787
Treasury shares
(12,090)
(12,022)
Total shareholders' equity
180,281
179,649
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
822
1,010
Foreign currency translation adjustment
8,181
8,413
Remeasurements of defined benefit plans
(1,336)
(1,316)
Total accumulated other comprehensive income
7,667
8,107
Non-controlling interests
3,494
2,863
Total net assets
191,443
190,620
Total liabilities and net assets
312,821
308,806
-
Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statement of Income
Three months ended June 30, 2016
(From April 1, 2016
to June 30, 2016)
(Millions of yen)
Three months ended June 30, 2017
(From April 1, 2017
to June 30, 2017)
Net sales 46,090 47,213
Cost of sales 27,404 28,427
Gross profit 18,686 18,786
Selling, general and administrative expenses 16,003 16,439
Operating income 2,683 2,346
Non-operating income
Interest income 42 37
Dividend income 291 74
Other 91 53
Total non-operating income 424 165
Non-operating expenses
Interest expenses 139 137
Foreign exchange losses 3,681 1,148
Other 38 31
Total non-operating expenses 3,859 1,317
Ordinary income (loss) (751) 1,195 Extraordinary income
Gain on sales of non-current assets 1 4
Gain on sales of investment securities 4 8
Total extraordinary income 5 12
Extraordinary losses
Quarterly Consolidated Statement of Comprehensive IncomeLoss on retirement of non-current assets
5
3
Other
-
0
Total extraordinary losses
5
3
Income (loss) before income taxes
(751)
1,203
Income taxes
(146)
591
Net income (loss)
(605)
612
Net income attributable to non-controlling interests
255
276
Net income (loss) attributable to owners of parent
(860)
335
Three months
(Millions of yen) Three months
ended June 30, 2016
(From April 1, 2016
to June 30, 2016)
ended June 30, 2017
(From April 1, 2017
to June 30, 2017)
Net income (loss) (605) 612
Other comprehensive income
Valuation difference on available-for-sale securities (233) 188
Foreign currency translation adjustment (10,939) 134
Remeasurements of defined benefit plans, net of tax 183 36
Total other comprehensive income (10,989) 359
Comprehensive income (11,594) 972
Comprehensive income attributable to
Owners of parent (11,722) 792
Non-controlling interests 127 179
-
Notes to Quarterly Consolidated Financial Statements Notes Regarding Assumption of a Going Concern
Not applicable.
Notes for Significant Change in the Amount of Shareholders' EquityNot applicable.
Application of Accounting Methods Specific to Preparation of the Quarterly Consolidated Financial StatementsTax expense is calculated by rationally estimating the effective tax rate after application of tax-effect accounting to income before income taxes for the fiscal year including this first quarter, and then multiplying the income before income taxes for the period by the estimated effective tax rate.
Segment Information Three months ended June 30, 2016 (from April 1, 2016 to June 30, 2016) Information on sales, profit (loss) by reportable segment
(Millions of yen)
Reportable segments
Other (Note)
Total
Reconcilia- tion
Amounts reported on the consolidated statement of income
Financial market
Retail and transportation market
Amusement market
Overseas market
Total
Net sales
11,376
9,680
3,834
20,705
45,597
493
46,090
-
46,090
-
-
-
-
-
-
-
-
-
Total
11,376
9,680
3,834
20,705
45,597
493
46,090
-
46,090
Segment profit (loss)
1,345
862
90
482
2,780
(97)
2,683
-
2,683
Sales to customers
Intersegment sales or transfers
Note: "Other" segment is merchandise and finished goods that is not included in the above reportable segments.
Three months ended June 30, 2017 (from April 1, 2017 to June 30, 2017) Information on sales, profit (loss) by reportable segment
(Millions of yen)
Reportable segments
Other (Note)
Total
Reconcilia- tion
Amounts reported on the consolidated statement of income
Financial market
Retail and transportation market
Amusement market
Overseas market
Total
Net sales
Sales to customers
Intersegment sales or transfers
Notes Regarding Assumption of a Going Concern 10
Notes for Significant Change in the Amount of Shareholders' Equity 10
Application of Accounting Methods Specific to Preparation of the Quarterly Consolidated Financial Statements 10
Segment Information 10
10,015
9,607
5,319
21,725
46,668
545
47,213
-
47,213
-
-
-
-
-
-
-
-
-
Total
10,015
9,607
5,319
21,725
46,668
545
47,213
-
47,213
Segment profit (loss)
348
608
386
1,221
2,565
(218)
2,346
-
2,346
Note: "Other" segment is merchandise and finished goods that is not included in the above reportable segments.
GLORY Ltd. published this content on 04 August 2017 and is solely responsible for the information contained herein.
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