Business results for the first quarter of the year ending March 31, 2014
Operating results
Net sales | Operating income | Ordinary income | Net income | |||||
---|---|---|---|---|---|---|---|---|
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
First quarter, year ending March 31, 2014 |
11,340 | -16.0 | 1,315 | -35.3 | 1,357 | -36.0 | 792 | -36.8 |
First quarter, year ending March 31, 2013 |
13,497 | 11.1 | 2,032 | 994.0 | 2,121 | 891.2 | 1,254 | - |
(Note) Comprehensive income
First quarter of the year ended March 31, 2014: ¥792 million (-37.0%)
First quarter of the year ended March 31, 2013: ¥1,257 million (—%)
Net income per share | Diluted net income per share | |
---|---|---|
Yen | Yen | |
First quarter, year ending March 31, 2014 |
53.60 | - |
First quarter, year ending March 31, 2013 |
84.85 | - |
Financial position
Total assets | Net assets | Shareholders’ equity ratio | |
---|---|---|---|
Million yen | Million yen | % | |
First quarter, year ending March 31, 2014 |
47,597 | 30,197 | 63.4 |
Year ended March 31, 2013 | 56,706 | 30,439 | 53.7 |
(Reference) Shareholders’ equity
First quarter of the year ended March 31, 2014: ¥30,197 million
First quarter of the year ended March 31, 2013: ¥30,439 million
Dividends
Annual dividends | |||||
---|---|---|---|---|---|
First quarter-end |
Second quarter-end |
Third quarter-end |
Year-end | Annual | |
Yen | Yen | Yen | Yen | Yen | |
Year ended March 31, 2013 | - | 20.00 | - | 70.00 | 90.00 |
Year ended March 31, 2014 | - | ||||
Year ended March 31, 2014 (Forecast) |
10.00 | - | 30.00 | 40.00 |
Forecast earnings for the year ending March 31, 2014
Net sales | Operating income |
Ordinary income |
Net income | Net income per share |
|||||
---|---|---|---|---|---|---|---|---|---|
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
First half ending September, 2014 |
25,000 | -9.6 | 1,500 | -58.4 | 1,500 | -59.7 | 800 | -63.0 | 54.11 |
Entire – year | 51,000 | -13.4 | 4,000 | -43.0 | 4,000 | -44.8 | 2,000 | -51.9 | 135.29 |
Qualitative Information Regarding the Consolidated Results for the First Quarter
Analytical Review on Consolidated Operating Results
During the cumulative consolidated first (April-June) quarter, the Japanese economy was picking up steadily, supported by improved export environment coupled with the ongoing depreciation of yen and high stock prices, in anticipation of economic recovery driven by monetary easing and other stimulus measures taken by the new Abe Administration.
The pachinko business, a part of the amusement industry in which the Daikoku Denki Group (“the Group”) is engaged, has not yet experienced the ripple effects from the economic recovery. Specifically, in pachinko game machines, the operation of pachinko game machines with a playing cost of 4-yen per pachinko ball remained on downward trend, putting pachinko halls, our customers, in a tough business environment.
Under these market environments, the Information System Segment promoted sales of VEGASIA, a new CR unit with enhanced functions in conjunction with the “C II” Series hall computing system. The Control System Segment focused on planning and development activities, such as building up a hybrid development line in collaboration with the Group companies for the enhancement of the development line.
As a result of the above, during the cumulative consolidated first quarter, net sales amounted to \11,340 million, down 16.0% from the same period last year. Consolidated operating income was \1,315 million (down 35.3% year on year), consolidated ordinary income was \1,357 million (down 36.0% year on year), and consolidated net income amounted to \792 million (down 36.8% year on year).
Business results by segment are as follows.
Information System Segment
During the cumulative consolidated first (April-June) quarter, while a CR unit “VEGASIA”, highly evaluated for its security standard and effective operational capacity, maintained a favorable level of sales in the market , in addition to good ground that “BiGMO,” a data display tool highlighting the amusing and thrilling features of diversified pachislot game in a comprehensible way and “IL-X,” a call-out lamp with colorful illumination, have continued to receive positive reviews, the Information System Segment’s results of this quarter fell short of the last year’s sales which was increased significantly due to the release of a new product.
As a result, net sales in the Information System Segment were \7,161 million (down 22.2% from the same period of the previous fiscal year), and segment operating income was \1,387 million (down 40.3% year on year).
Control System Segment
During the cumulative consolidated first (April-June) quarter, Control System Segment redefined the scope of services and roles among the Group companies and focused on planning and proposal activities for the enhancement of the development line.
As a result, net sales in the Control System Segment were \4,178 million (down 2.7% from the same period of the previous fiscal year), and segment operating income amounted to \400 million (up 64.6% year on year).
(Note) Business segment sales and income figures include intersegment transactions.
Analytical Review on Consolidated Financial Position
Total assets as of June 30, 2013 were \47,597 million, a decrease of \9,109 million from the end of the previous consolidated fiscal year. The main factors for the decrease were a decrease in cash and deposits due to income taxes paid, notes and accounts payable-trade and cash dividends paid, a decrease in notes receivable-trade because those collected during the preceding consolidated fiscal year matured in this first quarter, and a decrease in noncurrent assets resulting from the depreciation posted in this first quarter.
Total liabilities as of June 30, 2013 were \17,399 million, a decrease of \8,867 million from those at the end of the previous consolidated fiscal year. The main factors for the decrease were a decrease in notes payable-trade because those drawn during the preceding consolidated fiscal year were settled in the first quarter and a decrease in income taxes payable due to payment of income taxes in this first quarter.
Total net assets as of June 30, 2013 were \30,197 million, a decrease of \242 million from those at the end of the previous consolidated fiscal year, due mainly to a decrease in retained earnings resulting from the dividend payment . The Group’s equity ratio was 63.4% (a rise of 9.7 percentage point compared to that at the end of the previous consolidated fiscal year).
Balance sheets
Assets
Current assets
Fiscal year ended March 31,2013 |
Three months ended June 30,2013 |
|
---|---|---|
Cash and deposits | 18,506 | 13,227 |
Notes and accounts receivable-trade | 11,538 | 9,191 |
Merchandise and finished goods | 5,670 | 5,589 |
Work in process | 126 | 81 |
Raw materials and supplies | 2,851 | 2,302 |
Deferred tax assets | 487 | 246 |
Other | 676 | 604 |
Allowance for doubtful accounts | -67 | -57 |
Total current assets | 39,789 | 31,184 |
Noncurrent assets
Property, plant and equipment | ||
---|---|---|
Buildings and structures, net | 4,316 | 4,260 |
Land | 4,220 | 4,220 |
Other | 969 | 954 |
Total property, plant and equipment | 9,506 | 9,436 |
Intangible assets | ||
Software | 1,617 | 1,476 |
Other | 676 | 604 |
Total intangible assets | 1,752 | 1,606 |
Investments and other assets | ||
Deferred tax assets | 2,464 | 2,260 |
Real estate for investment, net | 971 | 967 |
Long-term time deposits | 600 | 500 |
Other | 1,874 | 1,888 |
Allowance for doubtful accounts | -253 | -247 |
Total investments and other assets | 5,657 | 5,369 |
Total noncurrent assets | 16,916 | 16,412 |
Total assets | 56,706 | 47,597 |
Liabilities
Current liabilities
Fiscal year ended March 31,2013 |
Three months ended June 30,2013 |
|
---|---|---|
Notes and accounts payable-trade | 18,137 | 12,356 |
Current portion of long-term loans payable | 399 | 491 |
Income taxes payable | 2,731 | 125 |
Provision for directors’ bonuses | 178 | 71 |
Other | 3,096 | 2,795 |
Total current liabilities | 24,544 | 15,839 |
Noncurrent liabilities
Long-term loans payable | 870 | 700 |
---|---|---|
Provision for retirement benefits | 248 | 248 |
Provision for directors’ retirement benefits | 370 | 378 |
Other | 233 | 232 |
Total noncurrent liabilities | 1,722 | 1,560 |
Total liabilities | 26,267 | 17,399 |
Net assets
Fiscal year ended March 31,2013 |
Three months ended June 30,2013 |
|
---|---|---|
Capital stock | 674 | 674 |
Capital surplus | 680 | 680 |
Retained earnings | 29,079 | 28,837 |
Treasury stock | -1 | -1 |
Total shareholders’ equity | 30,432 | 30,190 |
Valuation difference on available-for-sale securities |
6 | 7 |
Total valuation and translation adjustments |
6 | 7 |
Total net assets | 30,439 | 30,197 |
Total liabilities and net assets | 56,706 | 47,597 |
Statements of incomes
Three months ended June 30,2012 |
Three months ended June 30,2013 |
|
---|---|---|
Net sales | 13,497 | 11,340 |
Cost of sales | 8,860 | 7,598 |
Gross profit | 4,637 | 3,741 |
Reversal of unrealized gain on deferred revenue | 4 | 6 |
Deduction of unrealized gain on deferred revenue | 0 | 0 |
Gross profit-net | 4,641 | 3,748 |
Selling, general and administrative expenses | 2,608 | 2,432 |
Operating income | 2,032 | 1,315 |
Non-operating income | 111 | 52 |
Interest income | 1 | 1 |
Dividends income | 6 | 5 |
Real estate rent | 18 | 18 |
Other | 85 | 27 |
Non-operating expenses | 22 | 11 |
Interest expenses | 9 | 1 |
Rent expenses on real estates | 12 | 9 |
Other | 0 | 0 |
Ordinary income | 2,121 | 1,357 |
Extraordinary income | 6 | 0 |
Extraordinary loss | 2 | 0 |
Income before income taxes | 2,126 | 1,357 |
Income taxes-current | 1,004 | 118 |
Income taxes-deferred | -136 | 446 |
Minority interests in income | 3 | 0 |
Net income (loss) | 1,254 | 792 |