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 Three Months Ended March 31, 2024
[Japanese GAAP]
May 13, 2024 | ||
Company name: | Golf Digest Online Inc. | |
Stock exchange listing: | Tokyo | |
Code number: | 3319 | |
URL: | https://www.golfdigest.co.jp | |
Representative: | Nobuye Ishizaka | President and CEO |
Contact: | Ryo Nakamura | CFO |
Phone: | +81-3-5656-2888 | |
Scheduled date of filing quarterly securities report: | May 14, 2024 | |
Scheduled date of commencing dividend payments: | - | |
Availability of supplementary briefing material on quarterly financial results: | Yes | |
Schedule of quarterly financial results briefing session: | No |
(Amounts of less than one million yen are rounded down.) | |||||||||||
1. Consolidated Financial Results for the Three Months Ended March 31, 2024 (January 1, 2024 to March 31, 2024) | |||||||||||
(1) Consolidated Operating Results | (% indicates changes from the previous corresponding period.) | ||||||||||
Net sales | EBITDA | Operating profit | Ordinary profit | Profit attributable | |||||||
to owners of parent | |||||||||||
Three months ended | Millions of | Millions of | Millions of | Millions of | Millions of | ||||||
yen | % | yen | % | yen | % | yen | % | yen | % | ||
March 31, 2024 | 12,959 | 11.2 | 213 | (55.6) | (916) | - | (619) | - | (823) | - | |
March 31, 2023 | 11,652 | 21.6 | 481 | (38.6) | (437) | - | (304) | - | 13 | (98.6) |
(Note) Comprehensive income: | Three months ended March 31, 2024: |
Three months ended March 31, 2023: |
¥ | (862) million | [ | -%] |
¥ | 17 million | [ | (98.4) %] |
Basic earnings | Diluted earnings per | ||||||
per share | share | ||||||
Three months ended | Yen | Yen | |||||
March 31, 2024 | (51.05) | - | |||||
March 31, 2023 | (4.55) | - | |||||
(Note) EBITDA=Ordinary profit + Depreciation + Amortization of goodwill + Amortization of long-term prepaid expenses. | |||||||
(Note) Diluted earnings per share is not shown because net loss per share was recorded, although there are residual shares. | |||||||
(2) Consolidated Financial Position | |||||||
Total assets | Net assets | Capital adequacy ratio | Net assets per share | ||||
As of | Millions of yen | Millions of yen | % | Yen | |||
March 31, 2024 | 47,976 | 899 | 1.9 | (309.99) | |||
December 31, 2023 | 46,700 | 1,732 | 3.7 | (258.42) | |||
(Reference) Equity: | As of March 31, 2024: | ¥ | 897 million | ||||
As of December 31, 2023: | ¥ | 1,730 million |
(Note) The "Net assets per share" is calculated by deducting the amount paid for Class A preferred shares, which have different rights from those of common shares, and the amount for preferred dividend from total net assets.
2. Dividends
Annual dividends | |||||||
1st | 2nd | 3rd | Year-end | Total | |||
quarter-end | quarter-end | quarter-end | |||||
Yen | Yen | Yen | Yen | Yen | |||
Fiscal year ended December 31, 2023 | - | 4.00 | - | 0.00 | 4.00 | ||
Fiscal year ending December 31, 2024 | - | ||||||
Fiscal year ending December 31, 2024 | - | - | - | - | |||
(Forecast) | |||||||
(Note) Revision to the forecast for dividends announced most recently: | No | ||||||
(Note) The dividend forecast for the fiscal year ending December 31, 2024, is "undecided" at this time. |
(Note) The above-mentioned "Dividends" refers to the status of dividends on common shares. For information on the status of dividends on class shares (unlisted) with different relationship of interest from the common shares, see "Cash dividends on class shares" below.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2024(January 1, 2024 to December 31, 2024) (% indicates changes from the previous corresponding period.)
Profit | Basic earnings | |||||||||||
Net sales | EBITDA | Operating profit | Ordinary profit | attributable to | ||||||||
owners of parent | per share | |||||||||||
Millions | Millions | Millions | Millions | Millions | ||||||||
of yen | % | of yen | % | of yen | % | of yen | % | of yen | % | Yen | ||
Full year | 57,500 | 8.7 | 5,150 | 15.3 | 800 | 110.3 | 0 | - | (600) | - | (57.70) | |
(Note) Revision to the financial results forecast announced most recently: | No | |||||||||||
(Note) "EBITDA "added from Fiscal Year ended December 31,2024. |
EBITDA = Ordinary profit + Depreciation + Amortization of goodwill + Amortization of long-term prepaid expenses.
- Notes:
- Changes in significant subsidiaries during the three months ended March 31, 2024
(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
- Changes in accounting policies due to the revision of accounting standards: No
- Changes in accounting policies other than 1) above: No
- Changes in accounting estimates: No
- Retrospective restatement: No
- Total number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares):
March 31, 2024: | 18,274,000 | shares |
December 31, 2023: | 18,274,000 | shares |
2) Number of treasury shares at the end of the period: | ||
March 31, 2024: | 70,393 | shares |
December 31, 2023: | 70,393 | shares |
3) Average number of shares outstanding during the period: | ||
Three months ended March 31, 2024: | 18,203,607 | shares |
Three months ended March 31, 2023: | 18,203,607 | shares |
(Note) Board Benefit Trust (BBT), a stock compensation plan for directors, has been implemented since FY2022, and Golf Digest Online Inc.'s shares held by the Trust are included in the treasury shares.
- Quarterly Consolidated financial results (Japanese GAAP) are not subject to audit.
- The forward-looking statements described in this document including financial results forecasts, etc., are based on information currently available to Golf Digest Online Inc. and certain assumptions that are deemed to be reasonable as of the date of the release
of this document. Golf Digest Online Inc. makes no warranty as to the achievability of the forecasts. For the basis of presumption of the results forecast, please refer to "1. Qualitative Information on Third Quarter Consolidated Results (3) Overview of Consolidated Earnings Forecast" on page 2 of the attached document.
Cash dividends on class shares
The following provides a breakdown of the dividends per share related to class shares (Class A preferred shares) with different relationship of interest from the common shares.
Annual dividends | |||||
1st | 2nd | 3rd | Year-end | Total | |
quarter-end | quarter-end | quarter-end | |||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen |
December 31, 2023 | - | - | - | 0.00 | 0.00 |
Fiscal year ending | |||||
December 31, 2024 | - | - | - | - | - |
(Forecast) | |||||
(Note) Class A preferred shares were issued on November 25, 2022.
(Note) The dividend amount for Class A shares forecast for the fiscal year ending December 31, 2024 is undecided at this time.
Table of Contents | |||
1.Qualitative Information on Third Quarter Consolidated Results | ...2 | ||
(1)Overview | of | Operations Results | 2 |
(2)Overview | of | Financial Position | 2 |
(3)Overview of Consolidated Earnings Forecast… | 2 | ||
2.Quarterly Consolidated Financial Statements | 3 | ||
(1)Quarterly Consolidated Balance Sheets | 3 | ||
(2)Quarterly Consolidated Statements of Income and Comprehensive Income | 5 | ||
(3)Notes to the Consolidated Financial Statements | 7 | ||
(Notes on Going Concern Assumption) … | 7 | ||
(Notes in the case of significant changes in shareholders' equity) | 7 | ||
(Segment Information, etc.) | 7 | ||
3. Other | 8 | ||
Important Matters Related to Going Concern Assumption | 8 |
- 1 -
1. Qualitative Information on First Quarter Consolidated Results
(1) Overview of Operating Results
During the first quarter of the fiscal year under review (January 1,2024 to March 31, 2024), the Japanese economy showed a gradual recovery trend due to an increase in personal consumption, centered on service consumption, while being affected by high prices. In addition, the US economy, where our overseas group operates, is showing moderate growth supported by solid personal consumption and a strong labor market, although there are growing concerns about a slowdown. On the other hand, the global economy is facing uncertainty, given its decelerating trend and increasing geopolitical risks.
In the environment surrounding the Internet, markets such as those for e-commerce and Internet-related services continued to expand. Meanwhile, digital technologies, notable examples of which are those for IoT and AI, continued to evolve, advancing digitization in numerous fields. The same applies to the golf market. Reflecting the progress in digital technologies and changes in lifestyles, golfer demand and playing styles are becoming more diverse and changing day by day.
In this environment, the Golf Digest Online Group (the "GDO Group") offered greater playing comfort and pleasure to golfers as a group of IT service providers specializing in golf, with vast quantity of information and the capacity to provide specialized golf services as its strengths. Furthermore, based on the mid-term strategic plan published in February 2024, the Group has been implementing a variety of initiatives to improve the profit margin.
As a result, the Group recorded net sales of 12,959 million yen (up 11.2% year on year) during the first quarter under review (January 1, 2024 to March 31, 2024). Although there were improvements in the profit margin and non-financial indicators for some services due to various initiatives, EBITDA was 213 million yen (down 55.6% year on year), and an operating loss was 916 million yen (an operating loss of 437 million yen in the same period of the previous year), mainly due to the fact that expenses were incurred in advance in the first quarter of the fiscal year. An ordinary loss was 619 million yen (an ordinary loss of 304 million yen in the same period of the previous year), and a loss attributable to owners of parent was 823 million yen (profit attributable to owners of parent of 13 million yen in the same period of the previous year).
The results in each main segment are as follows.
Domestic segment
During the first three months under review, the domestic segment recorded net sales of 6,405 million yen (down 2.4% year on year). Segment income stood at 45 million yen (down 55.6% year on year).
Overseas segment
During the first three months under review, the overseas segment posted net sales of 6,553 million yen (up 28.7% year on year). The segment loss was 962 million yen (compared to the segment loss of 540 million yen a year before).
(2) Overview of Financial Position
Looking at the financial position at the end of the first quarter of the fiscal year under review, total assets stood at 47,976 million yen, up 1,276 million yen from the end of the previous fiscal year. Liabilities totaled 47,077 million yen at the end of the fiscal year under review, increasing 2,109 million yen from the end of the previous fiscal year. Total net assets as of the same date decreased 833 million yen from the end of the previous fiscal year, to 899 million yen.
In terms of the balances of accounts for main items, buildings and structures, accounts payable - trade, and contract liabilities increased by 898 million yen, 848 million yen, and 1,570 million yen, respectively. Retained earnings decreased by 823 million yen.
(3) Overview of Consolidated Earning Forecast
Consolidated results forecasts for the fiscal year ending December 31, 2024 remain unchanged from the consolidated results forecasts announced on February 14, 2024.
- 2 -
Quarterly Consolidated Financial Statements
Quarterly Consolidated Balance Sheets
(Thousands of yen) | |||
As of December 31, 2023 | As of March 31, 2024 | ||
Assets | |||
Current assets | |||
Cash and deposits | 2,793,940 | 2,461,661 | |
Accounts receivable - trade | 3,520,712 | 3,190,575 | |
Merchandise | 6,060,449 | 6,207,409 | |
Work in process | 1,465 | 4,415 | |
Supplies | 239,369 | 251,169 | |
Other | 2,170,818 | 2,751,945 | |
Allowance for doubtful accounts | (14,318) | (10,769) | |
Total current assets | 14,772,437 | 14,856,407 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures | 8,205,687 | 9,104,594 | |
Tools, furniture and fixtures | 3,833,303 | 4,272,314 | |
Right of use assets | 9,271,216 | 9,457,224 | |
Other | 329,856 | 106,737 | |
Accumulated depreciation | (5,467,043) | (6,136,541) | |
Total property, plant and equipment | 16,173,019 | 16,804,329 | |
Intangible assets | |||
Goodwill | 8,084,462 | 8,320,391 | |
Other | 6,623,252 | 6,964,280 | |
Total intangible assets | 14,707,714 | 15,284,672 | |
Investments and other assets | |||
Other | 1,054,142 | 1,038,725 | |
Allowance for doubtful accounts | (6,974) | (7,180) | |
Total investments and other assets | 1,047,168 | 1,031,544 | |
Total non-current assets | 31,927,902 | 33,120,546 | |
Total assets | 46,700,339 | 47,976,954 |
- 3 -
(Thousands of yen) | ||||
As of December 31, 2023 | As of March 31, 2024 | |||
Liabilities | ||||
Current liabilities | ||||
Accounts payable - trade | 2,620,101 | 3,468,135 | ||
Short-term borrowings | 6,771,525 | 6,611,916 | ||
Current portion of long-term borrowings | 1,493,351 | 1,524,007 | ||
Income taxes payable | 430,797 | 156,394 | ||
Contract liabilities | 6,068,296 | 7,638,397 | ||
Provision for bonuses | - | 20,004 | ||
Provision for point card certificates | 32,302 | 29,295 | ||
Provision for shareholder benefit program | 44,434 | 31,279 | ||
Asset retirement obligations | 12,677 | 12,687 | ||
Other | 5,487,713 | 5,764,966 | ||
Total current liabilities | 22,961,200 | 25,257,083 | ||
Non-current liabilities | ||||
Long-term borrowings | 11,723,470 | 11,580,052 | ||
Lease liabilities | 9,304,577 | 9,465,842 | ||
Provision for retirement benefits for directors (and | 133,002 | 135,999 | ||
other officers) | ||||
Provision for share awards for directors (and other | 40,350 | 40,350 | ||
officers) | ||||
Asset retirement obligations | 370,530 | 369,035 | ||
Other | 434,456 | 229,143 | ||
Total non-current liabilities | 22,006,387 | 21,820,423 | ||
Total liabilities | 44,967,587 | 47,077,507 | ||
Net assets | ||||
Shareholders' equity | ||||
Share capital | 1,458,953 | 1,458,953 | ||
Capital surplus | 111,402 | 140,448 | ||
Retained earnings | (166,976) | (990,845) | ||
Treasury shares | (80,253) | (80,253) | ||
Total shareholders' equity | 1,323,125 | 528,302 | ||
Accumulated other comprehensive income | ||||
Foreign currency translation adjustment | 407,294 | 368,720 | ||
Total accumulated other comprehensive income | 407,294 | 368,720 | ||
Share acquisition rights | 2,331 | 2,424 | ||
Total net assets | 1,732,751 | 899,446 | ||
Total liabilities and net assets | 46,700,339 | 47,976,954 | ||
- 4 -
Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the three months)
(Thousands of yen) | |||
For the three months | For the three months | ||
ended March 31, 2023 | ended March 31, 2024 | ||
Net sales | 11,652,896 | 12,959,203 | |
Cost of sales | 7,820,726 | 9,006,277 | |
Gross profit | 3,832,169 | 3,952,925 | |
Selling, general and administrative expenses | 4,269,271 | 4,869,809 | |
Operating loss | (437,102) | (916,883) | |
Non-operating income | |||
Interest income | 430 | 18 | |
Foreign exchange gains | 37,463 | 468,219 | |
Subsidy income | 234,990 | - | |
Other | 3,386 | 5,702 | |
Total non-operating income | 276,271 | 473,940 | |
Non-operating expenses | |||
Interest expenses | 142,175 | 175,699 | |
Other | 1,613 | 514 | |
Total non-operating expenses | 143,789 | 176,213 | |
Ordinary loss | (304,620) | (619,156) | |
Extraordinary income | |||
Gain on sale of non-current assets | 893 | 22,633 | |
Other | - | 2,976 | |
Total extraordinary income | 893 | 25,609 | |
Extraordinary losses | |||
Loss on retirement of non-current assets | 38 | 14,273 | |
Loss on litigation | - | 44,288 | |
Extra retirement payments | - | 28,832 | |
Total extraordinary losses | 38 | 87,394 | |
Loss before income taxes | (303,765) | (680,941) | |
Income taxes - current | (7,752) | 122,993 | |
Income taxes - deferred | (309,406) | 19,933 | |
Total income taxes | (317,158) | 142,927 | |
Profit (loss) | 13,392 | (823,868) | |
Profit (loss) attributable to owners of parent | 13,392 | (823,868) | |
- 5 -
Quarterly Consolidated Statements of Comprehensive Income (For the three months)
(Thousands of yen) | |||
For the three months | For the three months | ||
ended March 31, 2023 | ended March 31, 2024 | ||
Profit (loss) | 13,392 | (823,868) | |
Other comprehensive income | |||
Foreign currency translation adjustment | 3,720 | (38,574) | |
Total other comprehensive income | 3,720 | (38,574) | |
Comprehensive income | 17,113 | (862,443) | |
Comprehensive income attributable to | |||
Comprehensive income attributable to owners of | 17,113 | (862,443) | |
parent | |||
- 6 -
(3)Notes to Condensed Consolidated Financial Statements (Going Concern Assumption)
Not applicable.
(Significant Changes in Shareholders' Equity)
None
(Segment Information, etc.) (Segment information)
1.Information on net sales and amount of profit or loss by each reported segment Previous consolidated cumulative third quarter (From January 1, 2023 to Mar. 31 2023)
(Thousands of yen) | |||||
Reported | Amount | ||||
segment | booked in the | ||||
Adjustment | consolidated | ||||
Domestic | Overseas | Total | financial | ||
(Note) 1 | statements. | ||||
(Note) 2 | |||||
Net sales | |||||
Net sales to external customers | 6,561,785 | 5,091,110 | 11,652,896 | - | 11,652,896 |
Internal sales or transferred amount | - | 7,480 | 7,480 | (7,480) | - |
between segments | |||||
Total | 6,561,785 | 5,098,590 | 11,660,376 | (7,480) | 11,652,896 |
Segment profit or loss | 102,939 | (540,041) | (437,102) | - | (437,102) |
Note: |
- Adjustments to segment sales are eliminations between segments
-
Segment profit or loss (-) are consistent with operating profit in the consolidated Statements of Income.
Consolidated cumulative third quarter (From January 1, 2024 to Mar. 31, 2024)
(Thousands of yen) | |||||
Reported | Amount | ||||
segment | booked in the | ||||
Adjustment | consolidated | ||||
Domestic | Overseas | financial | |||
Total | (Note) 1 | statements. | |||
(Note) 2 | |||||
Net sales | |||||
Net sales to external customers | 6,405,493 | 6,553,709 | 12,959,203 | - | 12,959,203 |
Internal sales or transferred amount | - | 35,030 | 35,030 | (35,030) | - |
between segments | |||||
Total | 6,405,493 | 6,588,740 | 12,994,233 | (35,030) | 12,959,203 |
Segment profit or loss | 45,734 | (962,617) | (916,883) | - | (916,883) |
Note: |
- Adjustments to segment sales are eliminations between segments
- Segment profit is consistent with operating profit in the consolidated statements of income.
- 7 -
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Golf Digest Online Inc. published this content on 13 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2024 06:07:09 UTC.