June 4, 2021
Consolidated Financial Results
For the Three Months Ended April 30, 2021
(Japanese Accounting Standards)
Poletowin Pitcrew Holdings, Inc.
First Section of Tokyo Stock Exchange 3657 https://www.poletowin-pitcrew-holdings.co.jp Teppei Tachibana, President & CEO
Joji Yamauchi, Director & CFO
Tel: +81-3-5909-7911
Scheduled date to file Quarterly Securities Report: June 10, 2021
Scheduled date to commence dividend payments:
Supplementary explanatory materials prepared:
Explanatory meeting:
(Millions of yen with fractional amounts discarded, unless otherwise noted.)
1. Consolidated financial results for the three months ended April 30, 2021 (from February 1, 2021 to April 30, 2021)
(1) Consolidated operating results
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
Three months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |
April 30, 2021 | 8,015 | 26.6 | 830 | 36.9 | 857 | 31.7 | 530 | 38.3 | |
April 30, 2020 | 6,332 | 4.6 | 606 | (20.1) | 651 | (6.9) | 383 | (7.4) | |
(Note) Comprehensive income | |||||||||
Three months ended April 30, 2021: ¥814 million / 708.0 % | |||||||||
Three months ended April 30, 2020: ¥100 million / (79.1) % | |||||||||
Net income | Diluted net income | ||||||||
per share | per share | ||||||||
Three months ended | Yen | Yen | |||||||
April 30, 2021 | 14.00 | - | |||||||
April 30, 2020 | 10.13 | 10.13 | |||||||
(2) Consolidated financial position | |||||||||
Total assets | Net assets | Equity ratio | |||||||
As of | Millions of yen | Millions of yen | % | ||||||
April 30, 2021 | 20,453 | 15,997 | 78.2 | ||||||
January 31, 2021 | 20,389 | 15,675 | 76.9 | ||||||
(Reference) Equity |
As of April 30, 2021 : ¥15,997 million
As of January 31, 2021 : ¥15,671 million
- 1 -
2. Cash dividends
Cash dividends per share | |||||
First quarter | Second quarter | Third quarter | Fiscal year-end | Annual | |
Yen | Yen | Yen | Yen | Yen | |
Fiscal year ended January 31, 2021 | - | 0.00 | - | 13.00 | 13.00 |
Fiscal year ending January 31, 2022 | - | ||||
Fiscal year ending January 31, 2022 (Forecasts) | 0.00 | - | 14.00 | 14.00 | |
(Notes) Change in dividend forecasts for the fiscal year ending January 31, 2022 during the three months ended April 30, 2021: No
3. Consolidated financial forecasts for the fiscal year ending January 31, 2022 (from February 1, 2021 to January 31, 2022)
Operating | Ordinary | Profit attributable | Net | |||||||
Net sales | income | |||||||||
profit | profit | to owners of parent | ||||||||
per share | ||||||||||
Millions | % | Millions | % | Millions | % | Millions | % | Yen | ||
of yen | of yen | of yen | of yen | |||||||
Six months ending | 14,426 | 16.4 | 1,388 | 8.8 | 1,359 | (7.8) | 791 | (12.5) | 20.74 | |
July 31, 2021 | ||||||||||
Fiscal year ending | 30,077 | 12.5 | 3,452 | 7.3 | 3,392 | (5.7) | 2,123 | 0.2 | 55.66 | |
January 31, 2022 | ||||||||||
(Note) Change in financial forecasts for the fiscal year ending January 31, 2022 during the three months ended April 30, 2021: No
* Notes:
(1) Changes in significant subsidiaries during the three months ended April 30, 2021 (changes in specified subsidiaries
resulting in a change in the scope of consolidation) | : No |
- Use of particular accounting treatments in preparation of quarterly consolidated financial statements : Yes
- Changes in accounting policies, changes in accounting estimates, and restatement of revisions
a. Changes in accounting standards due to revisions to accounting standards and other guidelines | : No |
b. Changes in accounting policies due to reasons other than a. above | : No |
c. Changes in accounting estimates | : No |
d. Restatement of revisions | : No |
- Number of common shares issued
a. Total number of issued shares at the end of the period (including treasury stock)
As of April 30, 2021 | : 38,156,000 shares |
As of January 31, 2021 | : 38,156,000 shares |
b. Number of shares of treasury stock at the end of the period | |
As of April 30, 2021 | : 269,802 shares |
As of January 31, 2021 | : 269,734 shares |
c. Average number of shares (Cumulative) | |
For the three months ended April 30, 2021 | : 37,886,265 shares |
For the three months ended April 30, 2020 | : 37,850,053 shares |
- This report falls outside the scope of quarterly review procedures of a certified public accountant or an audit firm.
- Proper use of earnings forecasts, and other special matters
(Disclaimer to forward-looking statements)
The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. These statements do not guarantee that the Company will achieve its earnings forecasts. In addition, actual business and other results may differ substantially due to various factors. For details on the conditions assumed and the cautionary notes and items in the financial forecasts, please refer to (3) Qualitative Information on Consolidated Earnings Forecasts on page 5 of the Attachment Materials to this report.
(How to obtain supplementary materials explaining earnings for the quarter)
The Company discloses the Supplementary Information to the Financial Results on the TDnet on the same day.
- 2 -
1. Qualitative Information on Financial Results
(1) Analysis of Operating Results
During the first quarter of the consolidated fiscal year under review, conditions for the Japanese economy are expected to continue to pick up as various policies are effective and overseas economics are recovering and preventive measures are taken against COVID-19. However, both domestic and overseas impact of COVID-19 and financial & capital market warrant close attention. Under these economic conditions, for Poletowin Pitcrew Holdings Group's core Testing/Verification & Evaluation Business, the number of people staying at home increased due to global COVID-19, and both game software & hardware market expanded. For Internet Supporting Business, non-face-to-face & non-contact services such as E-commerce and cashless economy market expanded. Again, due to COVID-19, demand for online school classes increased and the government's GIGA School Project continues to grow in importance. The Group provides checking, testing, monitoring and inspection services that requires human input on a contractual basis to corporate clients. The demand for such outsourcing services has been growing as client's business has diversified and have expanded overseas. Another reason behind this is that business processes have become more advanced and sophisticated. As new services are created in the market, both Testing/Verification & Evaluation Business and Internet Supporting Business, are seeing new business opportunities. During the first quarter of the consolidated fiscal year under review, the Group's headquarter was relocated to expand floor space. Also, the administration and sales division of the Group's main business subsidiaries were integrated to this headquarter. In March, Poletowin Pitcrew Holdings, Inc. absorbed and merged with its wholly owned subsidiary Pacer CO., Ltd. in order to enhance business efficiency. In February, Pole To Win Co., Ltd. transferred game tuning and game development support related business to CREST Inc. in order to enhance media and content related business. In April, both QBIST Inc. and CREST Inc. relocated head office into the same building in order to enhance synergy in media content related business. Collaboration has stepped up between eighteen delivery centers in ten countries The Group promoted to globally provide a one-stop,full-service platform in areas such as defect detection (finding bugs), localization, audio recording, game development & marketing support, internet monitoring, and customer support.
As a result of these factors, consolidated net sales for the term were ¥8,015,783 thousand (up 26.6%). Operating profit was ¥830,261 thousand (up 36.9%). Ordinary profit was ¥857,993 thousand (up 31.7%) and Profit attributable to owners of parent was ¥530,478 thousand (up 38.3%).
Results by segment were as follows.
Testing/Verification & Evaluation Business
By promoting collaboration between domestic and overseas group companies the group strived to support global deployment for domestic and foreign game makers, and promoted orders for outsourcing services such as defect detection, localization, customer support (overseas) and voice recording, etc. for game software developers. QaaS Co., Ltd. received order increase for third- party verification services in non-game market. Pole To Win Co., Ltd. received orders to create ICT environment at schools for the government's GIGA School Project. Specifically, preparing kitting service for tablets. CREST Inc. produced and acted as lead management for TV animation "Seven Nights Revolution". From the first quarter of the consolidated fiscal year under review, the business performance of the Group's newly consolidated U.S.A. subsidiary, 1518 Studios, Inc. is included. As a result, Testing/Verification & Evaluation Business sales increased by 29.4% year on year, to ¥ 6,135,916 thousand, operating profit increased by 16.1%, to ¥649,467 thousand.
Internet Supporting Business
In the Internet Supporting Business, the Group increased orders for monitoring fraud for FinTech related services such as QR code settlement and virtual currency. Services related to identity verification, detection of anti-money laundering and spoofing also increased orders. Collaborating sales activities with Testing/Verification & Evaluation Business enhanced business for customer support in the game market. PITCREW CO., LTD. also received orders to develop ICT environment at schools for the government's GIGA School Project. Specifically, to provide services related to design ICT environment. As a result, Internet Supporting Business sales increased by 16.2%, to ¥1,762,225 thousand. Operating profit increased by 81.4%, to ¥184,996 thousand.
- 3 -
Others
Palabra Inc. provide services to produce barrier-free subtitles audio guides for television program and movies to prepare for the advent of barrier-free motion pictures. IMAid Inc. provides support services such as visa obtainment, school enrollment and daily life procedures for foreign personnel working in medical institutes. The sales resulted in increase of 60.4% to ¥117,642 thousand and operating profit of ¥4,487 thousand, up from operating loss of ¥52,302 thousand a year earlier.
-
Analysis of Financial Position
Total Assets
Current assets decreased by ¥703,437 thousand or 4.1% from the previous fiscal year-end, to
-
16,399,111thousand. This was mainly attributable to an increase of ¥114,245 thousand in notes and accounts receivable-trade but was offset by decrease of ¥782,426 thousand in cash and deposits. Non-current assets increased by ¥767,625 thousand, or 23.4% from the previous fiscal year-end, to ¥4,054,402 thousand. The key factor was an increase of ¥584,839 thousand in goodwill.
As a result, total assets increased by ¥64,187 thousand or 0.3% from the previous fiscal year-end, to ¥20,453,513 thousand.
Liabilities
Current liabilities decreased by ¥271,469 thousand or 6.1% from the previous fiscal year-end, to ¥4,182,537 thousand. The key factors were increase of ¥277,089 thousand in accounts payable-other but offset by decrease of ¥607,568 thousand of income taxes payable and ¥119,808 thousand in other current
liabilities (mainly advance received).
Non-currentliabilities increased by ¥13,255 thousand or 5.1% from the previous fiscal year-end,to ¥273,484 thousand. This was mainly due to increase of ¥5,699 thousand in retirement benefit liability and ¥6,536 thousand in other non-current liabilities (mainly provision for loss on guarantees). As a result, total liabilities decreased by ¥258,213 thousand or 5.5% from the end of the previous fiscal year-end,to ¥4,456,022 thousand.
Net assets
Net assets increased by ¥322,401 thousand or 2.1% from the previous fiscal year-end, to ¥15,997,491 thousand. This was mainly because there was increase of ¥37,957 thousand in retained earnings for profit attributable to owners of parent and dividend payment and increase of ¥270,681 thousand in foreign currency translation adjustment.
(3) Qualitative Information on Consolidated Earnings Forecasts
Both revenues and earnings were broadly on target in the period under review. In the second quarter, therefore, management expects to generally remain on target, and has therefore retained the consolidated earnings forecasts that it disclosed on March 15, 2021. Note, however, that the earnings forecasts are based on information currently available to the Company and on certain assumptions deemed to be reasonable. These statements do not guarantee that the Company will achieve its earnings forecasts. In addition, actual business and other results may differ substantially due to various factors.
- 4 -
2. Consolidated Financial Statements
(1) Consolidated Balance Sheets
(Thousands of yen) | ||
As of January 31, 2021 | As of April 30, 2021 | |
Assets | ||
Current assets | ||
Cash and deposits | 11,158,548 | 10,376,121 |
Notes and accounts receivable - trade | 4,504,541 | 4,618,786 |
Merchandise and finished goods | 861 | 400 |
Work in process | 172,920 | 140,025 |
Other | 1,308,165 | 1,309,746 |
Allowance for doubtful accounts | (42,488) | (45,969) |
Total current assets | 17,102,548 | 16,399,111 |
Non-current assets | ||
Property, plant and equipment | ||
Buildings and structures | 893,190 | 994,063 |
Accumulated depreciation | (544,376) | (578,426) |
Buildings and structures, net | 348,814 | 415,636 |
Machinery, equipment and vehicles | 23,081 | 23,324 |
Accumulated depreciation | (15,860) | (16,360) |
Machinery, equipment and vehicles, net | 7,221 | 6,964 |
Tools, furniture and fixtures | 1,616,860 | 1,780,343 |
Accumulated depreciation | (1,294,048) | (1,395,387) |
Tools, furniture and fixtures, net | 322,812 | 384,955 |
Other | 15,306 | 10,441 |
Total property, plant and equipment | 694,154 | 817,997 |
Intangible assets | ||
Goodwill | 511,654 | 1,096,494 |
Software | 225,961 | 234,718 |
Other | 202,538 | 202,576 |
Total intangible assets | 940,155 | 1,533,790 |
Investments and other assets | ||
Investment securities | 654,071 | 744,330 |
Leasehold and guarantee deposits | 751,910 | 715,200 |
Deferred tax assets | 195,008 | 199,237 |
Other | 128,470 | 142,939 |
Allowance for doubtful accounts | (76,994) | (99,094) |
Total investments and other assets | 1,652,466 | 1,702,614 |
Total non-current assets | 3,286,776 | 4,054,402 |
Total assets | 20,389,325 | 20,453,513 |
- 5 -
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
Poletowin Pitcrew Holdings Inc. published this content on 30 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 June 2021 06:03:06 UTC.