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 Six Months Ended June 30, 2021
[Japanese GAAP]
August 13, 2021 | ||||||||||||||
Company name: MEDLEY,INC. | ||||||||||||||
Stock exchange listing: Tokyo | ||||||||||||||
Code number: 4480 | ||||||||||||||
URL: https://www.medley.jp | ||||||||||||||
Representative: Kohei Takiguchi | President and Chief Executive Officer | |||||||||||||
Contact: Yuta Tamaru | Director and Head of Corporate Division | |||||||||||||
Phone: +813-6372-1265 | ||||||||||||||
Scheduled date of filing quarterly securities report: August 13, 2021 | ||||||||||||||
Scheduled date of commencing dividend payments: - | ||||||||||||||
Availability of supplementary briefing material on quarterly financial results: Yes | ||||||||||||||
Schedule of quarterly financial results briefing session: Yes | ||||||||||||||
(Amounts of less than one million yen are rounded down) | ||||||||||||||
1. Consolidated Financial Results for the Six Months Ended June 30, 2021 (January 01, 2021, to June 30, 2021) | ||||||||||||||
(1) Consolidated Operating Results | (% indicates changes from the previous corresponding period) | |||||||||||||
Net sales | EBITDA* | Operating profit | Ordinary profit | Profit attributable | ||||||||||
to owners of parent | ||||||||||||||
Six months ended | Million | % | Million | % | Million | % | Million | % | Million | % | ||||
yen | yen | yen | yen | yen | ||||||||||
June 30, 2021 | 5,538 | 55.4 | 1,036 | 98.6 | 824 | 81.9 | 836 | 84.3 | 555 | 46.5 | ||||
June 30, 2020 | 3,564 | - | 522 | - | 452 | - | 453 | - | 379 | - |
(Note) Comprehensive income: | Six months ended June 30, 2021: |
Six months ended June 30, 2020: |
¥ | 559 million | [ | 47.6%] |
¥ | 379 million | [ | -%] |
Basic earnings | Diluted earnings per | ||||
per share | share | ||||
Six months ended | Yen | Yen | |||
June 30, 2021 | 17.74 | 17.02 | |||
June 30, 2020 | 13.41 | 12.24 | |||
(Note) | EBITDA = Operating profit / loss + depreciation and amortization of goodwill + share-based compensation | ||||
Because the Group has posted no amortization of goodwill during consolidated Q2 FY2020, it was not included in the |
calculation of EBITDA. However, starting from consolidated Q1 FY2021, amortization of goodwill by newly consolidated subsidiaries is included in the calculation of EBITDA. Also, because there were no share-based compensation expenses during consolidated Q2 FY2020, such expenses are not included in the calculation of EBITDA.
(2) Consolidated Financial Position
Total assets | Net assets | Capital adequacy ratio | |||
As of | Million yen | Million yen | % | ||
June 30, 2021 | 21,530 | 15,663 | 72.7 | ||
December 31, 2020 | 15,519 | 9,717 | 62.6 | ||
(Reference) Equity: | As of June 30, 2021: | ¥ | 15,648 million | ||
As of December 31, 2020: | ¥ | 9,715 million |
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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, 2020 | - | 0.00 | - | 0.00 | 0.00 | ||
Fiscal year ending December 31, 2021 | - | 0.00 | |||||
Fiscal year ending December 31, 2021 | - | 0.00 | 0.00 | ||||
(Forecast) | |||||||
(Note) Revision to the forecast for dividends announced most recently: | No |
3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2021(January 01, 2021, to December 31, 2021) (% indicates changes from the previous corresponding period)
Net sales | EBITDA | Operating profit | Ordinary profit | Profit attributable to | Basic | ||||||||||
earnings per | |||||||||||||||
owners of parent | share | ||||||||||||||
Million | % | Million | % | Million | % | Million | % | Million yen | % | Yen | |||||
yen | yen | yen | yen | ||||||||||||
Full year | 10,770 | 57.7 | 670 | 23.5 | 160 | (59.6) | 180 | (57.4) | 20 | (95.6) | 0.62 | ||||
~ | ~ | ~ | ~ | ~ | ~ | ~ | ~ | ~ | ~ | ~ | |||||
11,270 | 65.0 | 1,170 | 115.6 | 660 | 66.6 | 680 | 60.9 | 480 | 5.3 | 14.93 | |||||
(Note) Revision to the financial results forecast announced most recently: | No | ||||||||||||||
* Notes: | |||||||||||||||
(1) Changes in significant subsidiaries during the six months ended June 30, 2021 | |||||||||||||||
(changes in specified subsidiaries resulting in changes in scope of consolidation): | Yes | ||||||||||||||
New | 2 | (Company names: Pacific Medical, Inc., MEDiPASS Co., Ltd. | ) | ||||||||||||
(Note) | As of April 01, 2021, consolidated subsidiary Pacific System Co., Ltd. changed its name to Pacific Medical, Inc. | ||||||||||||||
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: | Yes |
(Note) | For details, please refer to 2. Quarterly Consolidated Financial Statements and Important Notes (4) Important |
notes regarding quarterly consolidated financial statements (Application of special accounting methods in | |
preparation for quarterly consolidated financial statements) on page 12. |
- 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):
June 30, 2021: | 32,145,700 | shares |
December 31, 2020: | 30,889,100 | shares |
2) Total number of treasury shares at the end of the period: | ||
June 30, 2021: | - | shares |
December 31, 2020: | - shares |
3) Average number of shares during the period: | ||
Six months ended June 30, 2021: | 31,312,829 | shares |
Six months ended June 30, 2020: | 28,285,986 | shares |
- Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
- Cautionary statements with respect to forward-looking statements and other notes
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This preliminary earnings report contains forward-looking statements such as earnings forecasts which are based on information currently available to the Group and certain assumptions deemed to be reasonable. The Group makes no guarantee regarding the accuracy of the forecasts contained herein. Because of variable factors, actual results may differ from the forecast figures. For information regarding assumptions upon which the Group's results forecasts are based and notes regarding the use of results forecasts, please refer to (3) Explanation regarding consolidated forecasts and forward-looking statements under 1. Qualitative information regarding quarterly results" on page 6.
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1. Qualitative information regarding quarterly results
(1) Explanation regarding operating results
During the second quarter of the consolidated fiscal year ending December 31, 2021 (consolidated Q2 FY2021), the Japanese medical and nursing industry continued to face human resource shortages and issues related to financial resources, and the ratio of job offers to applicants therefore trended at a level higher than the average for all industries. In addition, in response to the resumption of the spread of COVID-19, the Japanese government promulgated its third state of emergency in April 2021, mainly focusing on major cities such as Tokyo and Osaka. However, after a period of extension, the state of emergency was lifted in June 2021 except in Okinawa Prefecture. Also, vaccinations have begun nationwide, and this is expected to reduce the onset and progression of COVID- 19.
Amid this business environment, although vaccinations resulted in hiring process delays in the medical and nursing care fields at the recruitment system JobMedley, sales in the Medical Platform Business grew owing to factors including the consolidation of the online training business of MEDiPASS Co., Ltd.
Although the Medical Platform Business also saw an impact from the administration of vaccinations by medical institutions, sales in this business rose owing to steady sales of all products and the consolidation of Pacific Medical, Inc. and some of the businesses of MEDiPASS Co., Ltd. While the Group achieved sales growth, it also conducted investments aimed at expanding the scale of its business operations including continued investment in growth in the Recruitment Platform Business to develop systems functionality and increase the number of employees. The Group also made proactive investments in growth in the Medical Platform Business, such as strengthening its development teams.
Under these conditions, in consolidated Q2 FY2021, the Group posted net sales of ¥5,538,700 thousand (up 55.4% YoY), an EBITDA of ¥1,036,978 thousand (up 98.6% YoY), an operating profit of ¥824,087 thousand (up 81.9% YoY), an ordinary profit of ¥836,146 thousand (up 84.3% YoY), and a quarterly net profit attributable to owners of the parent company of ¥555,391 thousand (up 46.5% YoY).
The Recruitment Platform Business posts sales based on the hiring dates of persons using the Group's services to find employment at companies seeking employees. The posting of sales therefore tends to be concentrated in April, when Japanese companies tend to hire more employees (because this is often the beginning of Japanese companies' fiscal years). The posting of the Group's net sales therefore tends to be concentrated in Q2 (April-June) of its consolidated fiscal year (ending on December 31).
Earnings by business segment are as follows.
Intersegment eliminations and unallocated group-wide shared costs totaled ¥883,440 thousand (up 27.8% YoY).
1. Recruitment Platform Business
During consolidated Q2 FY2021, the recruiting system JobMedley saw some impact from delays in hiring processes associated with the administration of COVID-19 vaccines. However, the Group continuously improved the functionality of its service websites with the aim of improving user convenience, which resulted in growth in the number of job applicants. The number of customer offices grew 8.8% compared with the end of consolidated FY2020, surpassing 235,000, and the number of job offers listed rose by 2.7% over the same period, to over 220,000.
The online training business of MEDiPASS Co., Ltd., which was consolidated (converted to a wholly owned subsidiary) in March 2021, was also integrated into the Recruitment Platform Business segment.
As a result of the above, consolidated Q2 FY2021 segment net sales were ¥4,143,705 thousand (up 37.7% YoY) and segment profit before allocation of group-wide shared costs (operating profit) was ¥1,962,440 thousand (up 36.5% YoY).
2. Medical Platform Business
During consolidated Q2 FY2021, the Medical Platform Business saw some impact associated with the administration of COVID- 19 vaccines by medical institutions. However, sales of all products remained firm. In addition, owing to the consolidation in January 2021 of Pacific Medical, Inc., which develops and provides the electronic medical record system MALL to small and medium- sized hospitals, the number of customers served by the Medical Platform Business remained on the rising trend seen in the previous consolidated fiscal year, rising by 125.3% compared with the end of consolidated FY2020 and reaching 7,033.
Also, NaCl Medical, Inc., which was converted into a consolidated (wholly owned) subsidiary in March 2019, is entrusted with the development of Online Receipt Computer Advantage (ORCA) medical accounting software. The Group also continued to update and expand content for MEDLEY, an online medical encyclopedia.
In addition, some of the businesses of MEDiPASS Co., Ltd., which was consolidated (converted to a wholly owned subsidiary) in
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March 2021, were also integrated into the Medical Platform Business segment.
As a result of the above, consolidated Q2 FY2021 segment net sales were ¥1,276,961 thousand (up 153.8% YoY) and segment loss before allocation of group-wide shared costs (operating loss) was ¥223,541 thousand (compared with an operating loss of ¥253,421 thousand in Q2 FY2020).
Factors behind the posting of an operating loss in the segment included 1) investments in growth aimed at securing new medical institution users and expanding the functionality of family pharmacy support system Pharms and increasing the functionality available to patients using CLINICS telemedicine system and 2) the amortization of goodwill associated with the consolidation of Pacific Medical, Inc. and MEDiPASS Co., Ltd.
3. New Services Segment
During consolidated Q2 FY2021, we continued to proactively conduct operations to expand content and to increase the number of facilities that can be introduced using our Kaigo-no Honne service. In addition, some of the businesses of MEDiPASS Co., Ltd. were also integrated into the New Services Segment.
As a result of the above, consolidated Q2 FY2021 segment net sales were ¥118,152 thousand (up 127.6% YoY) and the segment posted a loss before allocation of group-wide shared costs (operating loss) of ¥31,369 thousand (compared with an operating loss of ¥40,600 thousand in Q2 FY2020).
Factors behind the posting of an operating loss in the segment included investments in optimizing the earnings structure of our Kaigo-no Honne service.
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Outline of financial position Assets
Current assets as of end-consolidated Q2 FY2021 totaled ¥18,464,119 thousand, an increase of ¥3,918,455 thousand compared with the end of the previous consolidated fiscal year. This increase was mainly attributable to an increase of ¥3,299,810 thousand in cash and deposits and an increase of ¥482,121 thousand in accounts receivable (trade). Non-current assets as of end-consolidated Q2 FY2021 totaled ¥2,983,184 thousand, an increase of ¥2,049,714 thousand compared with the end of the previous consolidated fiscal year. This increase was mainly attributable to an increase of ¥98,613 thousand in tangible non-current assets and an increase of ¥1,716,174 thousand in intangible non-current assets including goodwill.
As a result of the above, total assets as of end-consolidated Q2 FY2021 totaled ¥21,530,966 thousand, an increase of ¥6,010,973 thousand compared with the end of the previous consolidated fiscal year.
Liabilities
Current liabilities as of end-consolidated Q2 FY2021 totaled ¥3,094,843 thousand, an increase of ¥151,014 thousand compared with the end of the previous consolidated fiscal year. This increase was mainly attributable to increases of ¥261,360 thousand in income taxes payable, ¥116,686 thousand in the current portion of long-term borrowings, ¥87,532 thousand in accounts payable, ¥83,769 thousand in advances received, ¥49,026 in the provision for bonuses, and ¥22,063 thousand in accounts payable (trade) and a decrease of ¥500,000 thousand in short-term borrowings. Non-current liabilities as of end-consolidated Q2 FY2021 totaled ¥2,772,723 thousand, a decrease of ¥85,845 thousand compared with the end of the previous consolidated fiscal year. This decrease was mainly attributable to a decrease of ¥277,601thousand in long-term borrowings.
As a result of the above, total liabilities as of end-consolidated Q2 FY2021 totaled ¥5,867,566 thousand, an increase of ¥65,168 thousand compared with the end of the previous consolidated fiscal year.
Net assets
Net assets as of end-consolidated Q2 FY2021 totaled ¥15,663,399 thousand, an increase of ¥5,945,804 thousand compared with the end of the previous consolidated fiscal year. This increase was mainly attributable to increases of ¥2,688,873 thousand each in capital and capital surplus and an increase of ¥555,391 thousand in retained earnings.
Cash flows
Cash and cash equivalents (hereinafter, net cash) as of end-consolidated Q2 FY2021 totaled ¥17,089,079 thousand, an increase of ¥3,037,045 thousand compared with the end-FY2020. Cash flows during the six months ended June 30, 2021, were as follows.
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Medley Inc. published this content on 13 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 August 2021 06:10:10 UTC.