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Consolidated Summary Report under Japanese GAAP for the second quarter of the fiscal year ending June 30, 2021
January 29, 2021 | |||
Company Name: | AVANT CORPORATION | Stock exchange listings: Tokyo | |
Code Number: | 3836 | URL: https://www.avantcorp.com/ | |
Representative: | (Title) President, Group CEO | (Name) Tetsuji Morikawa | |
For inquiry: | (Title) Director, Group CFO | (Name) Naoyoshi Kasuga | TEL: (03) 6388-6739 |
Securities report issue date: February 12, 2021 | Dividend payment date: - |
Supplementary information for financial statements: Available | |
Explanatory meeting to be held: Yes |
1. Consolidated results for the second quarter of the fiscal year ending June 30, 2021
(Millions of yen, rounded down to the nearest unit) (Percentages indicate year-on-year changes)
(1) Consolidated results of operations
Revenue | EBITDA | Operating income | Ordinary income | Profit attributable to | |||||||||||
shareholders of parent | |||||||||||||||
company | |||||||||||||||
Second quarter of the | % | % | % | % | % | ||||||||||
fiscal year | 7,637 | (1.2) | 1,417 | 20.3 | 1,296 | 19.0 | 1,305 | 19.4 | 824 | 22.5 | |||||
ending June 30, 2021 | |||||||||||||||
ended June 30, 2020 | 7,734 | 11.6 | 1,178 | 8.0 | 1,089 | 7.3 | 1,093 | 7.9 | 673 | 5.0 | |||||
Comprehensive income (loss) for the 2Q of the fiscal year ending June 30, 2021 | 844 million yen (17.6%) | for the 2Q of the fiscal year ended June 2020 | 718 million yen (13.7%) | ||||||||||||
Net profit per | Diluted net | ||||||||||||||
share | profit per share | ||||||||||||||
Second quarter of the | yen | yen | |||||||||||||
fiscal year | |||||||||||||||
ending June 30, 2021 | 21.93 | - | |||||||||||||
ended June 30, 2020 | 17.91 | - |
(Notes) EBITDA is derived by adding depreciation and amortization of goodwill to operating income.
The Company conducted a 2-for-1 common stock split on December 1, 2019. Net income per share is calculated as if this stock split had taken place at the beginning of the previous fiscal year.
(2) Consolidated financial condition
Total Assets | Net Assets | Equity Ratios | |
As of | Unit: million yen | Unit: million yen | % |
December 31, 2020 | 11,294 | 7,717 | 68.3 |
June 30, 2020 | 11,780 | 7,194 | 61.1 |
(Reference) Net assets attributable to the company's shareholders As of December 31, 2020 7,717 million yen As of June 30, 2020 7,194 million yen
2. Dividends on common stock
Dividends per share | |||||
1st | 2nd | 3rd | Fiscal | Annual | |
quarter-end | quarter-endquarter-end | year-end | |||
Fiscal Year Ended | yen | yen | yen | yen | yen |
June 30, 2020 | - | 0.00 | - | 9.00 | 9.00 |
June 30, 2021 | - | 0.00 | |||
June 30, 2021 (Forecast) | - | 10.00 | 10.00 |
Revisions to the most recently announced dividend forecast: None
3. Consolidated earnings forecasts for the fiscal year ending June 30, 2021
(Percentages indicate year-on-year changes) | ||||||||||||
Profit attributable to | Net profit | |||||||||||
Revenue | Operating income | Ordinary income | owners of parent | |||||||||
per share | ||||||||||||
company | ||||||||||||
Fiscal Year ending | Unit: million yen | % | Unit: million yen | % | Unit: million yen | % | Unit: million yen | % | yen | |||
June 30, 2021 | 16,110 | 2.7 | 2,330 | 2.3 | 2,330 | 2.1 | 1,561 | 1.5 | 41.52 | |||
(Note) | Revisions | to the most recently | announced | earnings forecast: None |
Notes
- Changes in significant subsidiaries during the period (changes in "Specified Subsidiaries" (Tokutei Kogaisha) accompanying changes in scope of consolidation): No
Newly added to the scope of consolidation: nil | Newly deleted from the scope of consolidation: nil |
- Application of accounting procedures specific to the preparation of quarterly consolidated financial statements: none
- Changes in accounting policies, accounting estimates and correction of past errors:
- Changes in accounting policies due to revision of accounting standards: No
- Changes in accounting policies due to reasons other than item (i) above: No
- Changes in accounting estimates: No
- Correction of past errors: No
- Number of shares outstanding (common stock)
(i) Total shares outstanding including treasury stock | As of December 31, 2020 | 37,603,203 shares | As of June 30, 2020 | 37,586,982 | shares |
(ii) Shares of treasury stock held | |||||
As of December 31, 2020 | 2,911 shares | As of June 30, 2020 | 2,911 | shares | |
(iii) Average outstanding shares | Second quarter of the fiscal year | 37,590,859 shares | Second quarter of the fiscal | 37,574,282 | shares |
ending June 30, 2021 | year ended June 30, 2020 | ||||
(Note) The Company conducted a 2-for-1 common stock split on December 1, 2019. Number of shares are calculated as if this stock split had taken place at the beginning of the previous fiscal year.
*This report is exempt from the audits of CPAs or Audit firms.
Forward-looking statements in this report, including earnings forecasts, are based on information currently available to the Company and on certain assumptions deemed to be reasonable. These statements are not promises by the Company regarding future performance.
Actual results may differ materially from the forecast depended on a range of factors. Please refer to "Earnings Forecasts" on page 8 for the assumptions for earnings forecasts and notes for using earnings forecasts.
The Company conducted a 2-for-1 common stock split on December 1, 2019. Net income per share is calculated as if this stock split had taken place at the beginning of the previous fiscal year.
Accompanying Materials - Table of Contents | |
1. Qualitative Information on Financial Results for the Current Quarter .................................................... | 2 |
(1) Management's Discussion on Business Operations .............................................................................. | 2 |
(2) Discussion on Financial Condition .......................................................................................... | 6 |
(3) Earnings Forecasts ....................................................................................................... | 8 |
2. Quarterly Consolidated Financial Statements and Notes.................................................................. | 9 |
(1) Quarterly Consolidated Balance Sheets.......................................................................................... | 9 |
(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income.... | 11 |
Quarterly Consolidated Statements of Income ................................................................................. | 11 |
Quarterly Consolidated Statements of Comprehensive Income ......................................... | 12 |
(3) Quarterly Consolidated Statements of Cash Flows ..................................................................... | 13 |
(4) Notes to Quarterly Consolidated Financial Statements ..................................................................... | 14 |
(Notes on the Going Concern Assumption) .............................................................................. | 14 |
(Notes on Substantial Changes in the Amount of Shareholders' Equity) .................................. | 14 |
(Segment information) ............................................................................................. | 15 |
(Significant Subsequent Events) ............................................................................................. | 16 |
- 1 -
1. Qualitative Information on Financial Results for the Current Quarter
(1) Management's Discussion on Business Operations
Consolidated financial results for the second quarter of the current fiscal year are as follows.
(millions of yen, rounded down to the nearest unit) | ||||||
Fiscal Year ended June | Fiscal Year ending June | Year on Year Change | ||||
30, 2020 | 30, 2021 | |||||
Second quarter | Second quarter | Amount | % | |||
Revenue | 7,734 | 7,637 | (96) | (1.2) | ||
Operating income | 1,089 | 1,296 | 206 | 19.0 | ||
Ordinary income | 1,093 | 1,305 | 212 | 19.4 | ||
Profit attributable to | owners of | 673 | 824 | 151 | 22.5 | |
parent company | ||||||
At the end of the previous fiscal year, domestic companies began to postpone IT investment (frozen in some industries which underwent significant impacts) due to the spread of the new corona viral infectious diseases (COVID-19), and that began to affect orders received for the Group. As a result, we had a cautious outlook for the results particularly during the second half of the fiscal year under review.
The environment surrounding our Group was initially within the scope of this outlook, but on the other hand, various changes in society are stimulating the need for "management and decision-making based on data." Our Group's needs for products and services are on a recovery trend while transforming them into more sophisticated ones.
As a result, sales in the Business Intelligence Business, which had declined in the first quarter, began to increase, and the scale of the decline in sales in the Consolidated Accounting-related Business also shrank. In addition, the Outsourcing Business continued to achieve double-digit growth. As a result of these factors, revenues were 7,637 million yen (down 1.2% from the same quarter of the previous year), and although sales have not yet started to increase on a cumulative basis, revenue for the last three months have increased slightly, showing signs of recovery.
With regard to the increase in the ratio of recurring revenue (such as software maintenance fees, etc., which are continuously generated), which is 1 of the management targets in the Medium-Term Management Plan, the ratio increased to 36.9%, up 4.2 percentage points from the same quarter of the previous fiscal year. This was due to the growth in the Outsourcing Business, which has consistently maintained a recurring revenue ratio of around 90%, as well as the improvement in the ratio in the Consolidated Accounting-related Business and the Business Intelligence Business due to the increase in cloud sales, etc. The total amount also increased by 14.3%. In recent years, revenue equivalent to recurring revenue, which the Company consistently receive orders for similar services from the same customer, have been on the rise. At present, recurring revenue ratio is calculated without including these.
With regard to profits, operating income was 1,296 million yen (up 19.0% from the same quarter of the previous year), ordinary income was 1,305 million yen (up 19.4%), and profit attributable to owners of parent was 824 million yen (up 22.5%), all of which were higher than the same quarter of the previous year, due to the effects of the improvement in profitability of projects through the increase in the ratio of in-house production and the reduction of non-urgent and non-urgent expenses that have been promoted since the expansion of COVID-19.
The status of each reportable segment is as follows.
(i) Revenues
(millions of yen, rounded down to the nearest unit) | ||||||
Fiscal Year ended June | Fiscal Year ending June | Year on Year Change | ||||
30, 2020 | 30, 2021 | |||||
Second quarter | Second quarter | Amount | % | |||
Consolidated | Accounting-related | 4,165 | 3,897 | (267) | (6.4) | |
Businesses | ||||||
Business Intelligence Business | 2,870 | 2,878 | 7 | 0.3 | ||
Outsourcing Business | 993 | 1,179 | 186 | 18.7 | ||
Elimination | of | inter-segment | (294) | (317) | (22) | - |
transactions | ||||||
Consolidated Revenues | 7,734 | 7,637 | (96) | (1.2) |
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Avant Corporation published this content on 29 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 January 2021 04:03:07 UTC.