Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
Summary of Non-Consolidated Financial Results
for the Year Ended February 28, 2021
(Based on Japanese GAAP)
April 14, 2021 | |||||||||||||||||||||
Company name: | Serverworks Co.,Ltd. | ||||||||||||||||||||
Stock exchange listing: | Tokyo | ||||||||||||||||||||
Stock code: | 4434 | URL https://www.serverworks.co.jp/ | |||||||||||||||||||
Representative: | Representative Director, President | Ryo Oishi | |||||||||||||||||||
Inquiries: | Director | Hiroyuki Oshio | TEL 03(5579)8029 | ||||||||||||||||||
Scheduled date of ordinary general meeting of shareholders: | May 28, 2021 | ||||||||||||||||||||
Scheduled date to file Securities Report: | May 28, 2021 | ||||||||||||||||||||
Scheduled date to commence dividend payments: | - | ||||||||||||||||||||
Preparation of supplementary material on financial results: | Yes | ||||||||||||||||||||
Holding of financial results meeting: | Yes | (for institutional investors) | |||||||||||||||||||
(Amounts less than one million yen are rounded down) | |||||||||||||||||||||
1. Non-consolidated financial results for the year ended February 28, 2021 (from March 1, 2020 to February 28, 2021) | |||||||||||||||||||||
(1) Non-consolidated operating results | Percentages indicate year-on-year changes | ||||||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit | ||||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||||||||||
Year ended February 28, 2021 | 8,029 | 17.9 | 419 | 0.5 | 410 | (2.5) | 482 | 44.7 | |||||||||||||
Year ended February 29, 2020 | 6,811 | 52.1 | 417 | 24.4 | 421 | 25.5 | 333 | (6.5) | |||||||||||||
Earnings per share | Diluted earnings per | Profit/equity | Ordinary profit/total | Operating profit/net | |||||||||||||||||
share | assets | sales | |||||||||||||||||||
Yen | Yen | % | % | % | |||||||||||||||||
Year ended February 28, 2021 | 66.68 | 63.21 | 8.1 | 5.4 | 5.2 | ||||||||||||||||
Year ended February 29, 2020 | 49.49 | 46.39 | 14.0 | 11.0 | 6.1 | ||||||||||||||||
(2) Non-consolidated financial position | |||||||||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | ||||||||||||||||||
Millions of yen | Millions of yen | % | Yen | ||||||||||||||||||
As of February 28, 2021 | 10,717 | 8,855 | 82.6 | 1,167.06 | |||||||||||||||||
As of February 29, 2020 | 4,472 | 3,035 | 67.9 | 448.97 | |||||||||||||||||
(3) Non-consolidated cash flows | |||||||||||||||||||||
Cash flows from | Cash flows from | Cash flows from | Cash and cash equivalents | ||||||||||||||||||
operating activities | investing activities | financing activities | at end of period | ||||||||||||||||||
Millions of yen | Millions of yen | Millions of yen | Millions of yen | ||||||||||||||||||
Year ended February 28, 2021 | 529 | 159 | 5,157 | 7,426 | |||||||||||||||||
Year ended February 29, 2020 | 407 | (155) | 567 | 1,579 | |||||||||||||||||
2. Cash dividends | |||||||||||||||||||||
Annual dividends per share | Total cash | Dividend payout | Ratio of dividends | ||||||||||||||||||
ratio | to net assets | ||||||||||||||||||||
1st quarter-end | 2nd quarter-end | 3rd quarter-end | Fiscal year-end | Total | dividends (Total) | (Non-consolidated) | (Non-consolidated) | ||||||||||||||
Yen | Yen | Yen | Yen | Yen | Millions of yen | % | % | ||||||||||||||
Year ended February 29, 2020 | - | 0.00 | - | 0.00 | 0.00 | - | - | - | |||||||||||||
Year ended February 28, 2021 | - | 0.00 | - | 0.00 | 0.00 | - | - | - | |||||||||||||
Year ending February 28, 2022 | - | 0.00 | - | 0.00 | 0.00 | - | |||||||||||||||
(Forecast) | |||||||||||||||||||||
1
3. Forecast of non-consolidated financial results for the year ending February 28, 2022 (from March 1, 2021 to February 28, 2022)
Percentages indicate year-on-year changes
Net sales | Operating profit | Ordinary profit | Profit | Earnings per share | ||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
Full year | 9,300 | 15.8 | 446 | 6.4 | 471 | 14.8 | 326 | (32.3) | 45.17 |
4. Notes
(1) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations: | No |
Changes in accounting policies due to other reasons: | No |
Changes in accounting estimates: | No |
Restatement of prior period financial statements: | No |
(2) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of February 28, 2021 | 7,588,044 | shares | As of February 29, 2020 | 6,760,380 | shares | |
Number of treasury shares at the end of the period | ||||||
As of February 28, 2021 | 340 | shares | As of February 29, 2020 | 224 | shares | |
Average number of shares during the period | ||||||
Year ended February 28, 2021 | 7,232,317 | shares | Year ended February 29, 2020 | 6,736,067 | shares |
2
Non-consolidated financial statements
Non-consolidated balance sheets
(Thousands of yen) | |||
As of February 29, 2020 | As of February 28, 2021 | ||
Assets | |||
Current assets | |||
Cash and deposits | 1,579,231 | 7,426,126 | |
Accounts receivable - trade | 953,532 | 1,196,926 | |
Work in process | 49,179 | 40,740 | |
Advance payments - trade | 383,574 | 272,321 | |
Prepaid expenses | 43,499 | 59,797 | |
Deposits paid | 1,261 | 629 | |
Other | 950 | 5,206 | |
Allowance for doubtful accounts | (6,608) | (2,148) | |
Total current assets | 3,004,621 | 8,999,600 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings | 77,781 | 86,688 | |
Accumulated depreciation | (19,432) | (25,746) | |
Buildings, net | 58,349 | 60,941 | |
Tools, furniture and fixtures | 20,160 | 24,508 | |
Accumulated depreciation | (9,334) | (12,478) | |
Tools, furniture and fixtures, net | 10,826 | 12,029 | |
Total property, plant and equipment | 69,175 | 72,971 | |
Intangible assets | |||
Software | 87,050 | 93,247 | |
Software in progress | 9,056 | 15,597 | |
Trademark right | 4,308 | 3,758 | |
Other | 75 | 75 | |
Total intangible assets | 100,491 | 112,679 | |
Investments and other assets | |||
Investment securities | 1,186,600 | 1,402,808 | |
Shares of subsidiaries and associates | 50,000 | 50,000 | |
Long-term prepaid expenses | 353 | 9,383 | |
Leasehold deposits | 58,388 | 67,689 | |
Other | 2,521 | 2,767 | |
Total investments and other assets | 1,297,864 | 1,532,649 | |
Total non-current assets | 1,467,531 | 1,718,299 | |
Total assets | 4,472,152 | 10,717,899 |
3
(Thousands of yen) | |||
As of February 29, 2020 | As of February 28, 2021 | ||
Liabilities | |||
Current liabilities | |||
Accounts payable - trade | 633,819 | 846,369 | |
Accounts payable - other | 31,396 | 20,679 | |
Accrued expenses | 40,247 | 36,836 | |
Income taxes payable | 52,135 | 166,497 | |
Accrued consumption taxes | 59,207 | 59,344 | |
Advances received | 261,787 | 311,949 | |
Deposits received | 16,807 | 18,341 | |
Provision for bonuses | 43,444 | 57,168 | |
Provision for loss on order received | 9,349 | 1,814 | |
Other | - | 657 | |
Total current liabilities | 1,148,193 | 1,519,659 | |
Non-current liabilities | |||
Deferred tax liabilities | 274,541 | 328,596 | |
Asset retirement obligations | 14,310 | 14,310 | |
Total non-current liabilities | 288,851 | 342,906 | |
Total liabilities | 1,437,044 | 1,862,566 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 609,597 | 3,201,973 | |
Capital surplus | |||
Legal capital surplus | 599,597 | 3,191,973 | |
Total capital surpluses | 599,597 | 3,191,973 | |
Retained earnings | |||
Other retained earnings | |||
Retained earnings brought forward | 1,109,941 | 1,592,212 | |
Total retained earnings | 1,109,941 | 1,592,212 | |
Treasury shares | (900) | (1,866) | |
Total shareholders' equity | 2,318,236 | 7,984,292 | |
Valuation and translation adjustments | |||
Valuation difference on available-for-sale securities | 716,858 | 871,041 | |
Total valuation and translation adjustments | 716,858 | 871,041 | |
Share acquisition rights | 12 | - | |
Total net assets | 3,035,107 | 8,855,333 | |
Total liabilities and net assets | 4,472,152 | 10,717,899 |
4
Non-consolidated statements of income
(Thousands of yen) | |||
Fiscal year ended | Fiscal year ended | ||
February 29, 2020 | February 28, 2021 | ||
Net sales | 6,811,373 | 8,029,275 | |
Cost of sales | 5,725,327 | 6,804,593 | |
Gross profit | 1,086,045 | 1,224,681 | |
Selling, general and administrative expenses | 668,475 | 804,881 | |
Operating profit | 417,570 | 419,799 | |
Non-operating income | |||
Interest income | 12 | - | |
Commission income | 13,134 | 32,106 | |
Foreign exchange gains | - | 5,758 | |
Other | 260 | 1,599 | |
Total non-operating income | 13,408 | 39,464 | |
Non-operating expenses | |||
Interest expenses | 146 | - | |
Market change expenses | - | 17,058 | |
Share issuance costs | 4,735 | 24,826 | |
Going public expenses | 2,000 | - | |
Foreign exchange losses | 2,540 | - | |
Other | 341 | 6,780 | |
Total non-operating expenses | 9,764 | 48,665 | |
Ordinary profit | 421,214 | 410,598 | |
Extraordinary income | |||
Gain on sales of investment securities | 37,943 | 246,221 | |
Total extraordinary income | 37,943 | 246,221 | |
Profit before income taxes | 459,157 | 656,820 | |
Income taxes - current | 141,965 | 188,541 | |
Income taxes - deferred | (16,188) | (13,992) | |
Total income taxes | 125,776 | 174,549 | |
Profit | 333,381 | 482,271 |
5
Non-consolidated statements of changes in equity
Fiscal year ended February 29, 2020
(Thousands of yen) | |||||||||||
Shareholders' equity | |||||||||||
Capital surplus | Retained earnings | ||||||||||
Other retained | |||||||||||
Share capital | Legal capital | Total capital | earnings | Total retained | Treasury shares | ||||||
surplus | surplus | Retained earnings | earnings | ||||||||
brought forward | |||||||||||
Balance at beginning of period | 169,100 | 159,100 | 159,100 | 776,560 | 776,560 | - | |||||
Changes during period | |||||||||||
Issuance of new shares | 440,497 | 440,497 | 440,497 | ||||||||
Profit | 333,381 | 333,381 | |||||||||
Purchase of treasury shares | (900) | ||||||||||
Net changes in items other than | |||||||||||
shareholders' equity | |||||||||||
Total changes during period | 440,497 | 440,497 | 440,497 | 333,381 | 333,381 | (900) | |||||
Balance at end of period | 609,597 | 599,597 | 599,597 | 1,109,941 | 1,109,941 | (900) | |||||
Shareholders' equity | Valuation and translation adjustments | ||||||||||
Total shareholders' | Valuation difference | Total valuation and | Share acquisition | Total net assets | |||||||
on available-for-sale | rights | ||||||||||
equity | translation adjustments | ||||||||||
securities | |||||||||||
Balance at beginning of period | 1,104,760 | 631,892 | 631,892 | 12 | 1,736,665 | ||||||
Changes during period | |||||||||||
Issuance of new shares | 880,995 | 880,995 | |||||||||
Profit | 333,381 | 333,381 | |||||||||
Purchase of treasury shares | (900) | (900) | |||||||||
Net changes in items other than | 84,965 | 84,965 | - | 84,965 | |||||||
shareholders' equity | |||||||||||
Total changes during period | 1,213,475 | 84,965 | 84,965 | - | 1,298,441 | ||||||
Balance at end of period | 2,318,236 | 716,858 | 716,858 | 12 | 3,035,107 |
6
Fiscal year ended February 28, 2021
(Thousands of yen) | |||||||||||
Shareholders' equity | |||||||||||
Capital surplus | Retained earnings | ||||||||||
Share capital | Other retained | Treasury shares | |||||||||
Legal capital | Total capital | earnings | Total retained | ||||||||
surplus | surplus | Retained earnings | earnings | ||||||||
brought forward | |||||||||||
Balance at beginning of period | 609,597 | 599,597 | 599,597 | 1,109,941 | 1,109,941 | (900) | |||||
Changes during period | |||||||||||
Issuance of new shares | 2,592,375 | 2,592,375 | 2,592,375 | ||||||||
Profit | 482,271 | 482,271 | |||||||||
Purchase of treasury shares | (965) | ||||||||||
Net changes in items other than | |||||||||||
shareholders' equity | |||||||||||
Total changes during period | 2,592,375 | 2,592,375 | 2,592,375 | 482,271 | 482,271 | (965) | |||||
Balance at end of period | 3,201,973 | 3,191,973 | 3,191,973 | 1,592,212 | 1,592,212 | (1,866) | |||||
Shareholders' equity | Valuation and translation adjustments | ||||||||||
Total shareholders' | Valuation difference | Total valuation and | Share acquisition | Total net assets | |||||||
on available-for-sale | rights | ||||||||||
equity | translation adjustments | ||||||||||
securities | |||||||||||
Balance at beginning of period | 2,318,236 | 716,858 | 716,858 | 12 | 3,035,107 | ||||||
Changes during period | |||||||||||
Issuance of new shares | 5,184,750 | 5,184,750 | |||||||||
Profit | 482,271 | 482,271 | |||||||||
Purchase of treasury shares | (965) | (965) | |||||||||
Net changes in items other than | 154,182 | 154,182 | (12) | 154,170 | |||||||
shareholders' equity | |||||||||||
Total changes during period | 5,666,056 | 154,182 | 154,182 | (12) | 5,820,226 | ||||||
Balance at end of period | 7,984,292 | 871,041 | 871,041 | - | 8,855,333 |
7
Non-consolidated statements of cash flows
(Thousands of yen) | |||
Fiscal year ended | Fiscal year ended | ||
February 29, 2020 | February 28, 2021 | ||
Cash flows from operating activities | |||
Profit before income taxes | 459,157 | 656,820 | |
Depreciation | 71,858 | 64,944 | |
Share-based remuneration expenses | 1,229 | 245 | |
Increase (decrease) in allowance for doubtful accounts | (212) | (4,459) | |
Increase (decrease) in provision for bonuses | 11,526 | 13,724 | |
Increase (decrease) in provision for loss on order received | 9,158 | (7,534) | |
Interest and dividend income | (12) | (49) | |
Interest expenses | 146 | - | |
Foreign exchange losses (gains) | 22 | 8 | |
Share issuance costs | 4,735 | 24,826 | |
Going public expenses | 2,000 | - | |
Loss (gain) on sales of investment securities | (37,943) | (246,221) | |
Decrease (increase) in trade receivables | (290,830) | (243,393) | |
Decrease (increase) in deposits paid | 224,108 | 631 | |
Decrease (increase) in inventories | 6,476 | 8,438 | |
Decrease (increase) in advance payments - trade | (144,586) | 111,253 | |
Increase (decrease) in trade payables | 359,842 | 212,550 | |
Increase (decrease) in accounts payable - other | 1,800 | (8,604) | |
Increase (decrease) in advances received | (10,987) | 50,161 | |
Other, net | 18,030 | 7,344 | |
Subtotal | 685,519 | 640,687 | |
Interest and dividends received | 12 | 49 | |
Interest paid | (37) | - | |
Income taxes paid | (278,186) | (110,867) | |
Net cash provided by (used in) operating activities | 407,308 | 529,869 | |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | (30,928) | (15,221) | |
Purchase of intangible assets | (49,733) | (67,116) | |
Purchase of investment securities | (99,995) | - | |
Proceeds from sales of investment securities | 40,954 | 252,243 | |
Payments of leasehold deposits | (16,015) | (10,063) | |
Other, net | (245) | (245) | |
Net cash provided by (used in) investing activities | (155,964) | 159,595 | |
Cash flows from financing activities | |||
Net increase (decrease) in short-term borrowings | (300,000) | - | |
Proceeds from issuance of shares | 871,544 | 5,090,261 | |
Purchase of treasury shares | (900) | (965) | |
Going public expenses | (3,000) | - | |
Proceeds from issuance of share acquisition rights | - | 68,142 | |
Net cash provided by (used in) financing activities | 567,644 | 5,157,437 | |
Effect of exchange rate change on cash and cash equivalents | (22) | (8) | |
Net increase (decrease) in cash and cash equivalents | 818,966 | 5,846,895 | |
Cash and cash equivalents at beginning of period | 760,265 | 1,579,231 | |
Cash and cash equivalents at end of period | 1,579,231 | 7,426,126 |
8
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Serverworks Co. Ltd. published this content on 15 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 April 2021 06:02:09 UTC.