September 3, 2021
Consolidated Financial Results
For the Six Months Ended July 31, 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: September 9, 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 six months ended July 31, 2021(from February 1, 2021 to July 31, 2021)
(1) Consolidated operating results
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||||||||||||
owners of parent | ||||||||||||||||||||||
Six months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||||||||||
July 31, 2021 | 15,484 | 24.9 | 1,512 | 18.5 | 1,549 | 5.0 | 908 | 0.5 | ||||||||||||||
July 31, 2020 | 12,399 | (0.0) | 1,276 | (20.8) | 1,474 | (4.4) | 903 | (5.3) | ||||||||||||||
(Note) Comprehensive income | ||||||||||||||||||||||
Six months ended July 31, 2021: ¥1,162 million / 96.2 % | ||||||||||||||||||||||
Six months ended July 31, 2020: ¥592 million / (35.3) % | ||||||||||||||||||||||
Net income | Diluted net income | |||||||||||||||||||||
per share | per share | |||||||||||||||||||||
Six months ended | Yen | Yen | ||||||||||||||||||||
July 31, 2021 | 23.97 | - | ||||||||||||||||||||
July 31, 2020 | 23.88 | 23.86 | ||||||||||||||||||||
(2) Consolidated financial position | ||||||||||||||||||||||
Total assets | Net assets | Equity ratio | ||||||||||||||||||||
As of | Millions of yen | Millions of yen | % | |||||||||||||||||||
July 31, 2021 | 21,652 | 16,344 | 75.5 | |||||||||||||||||||
January 31, 2021 | 20,389 | 15,675 | 76.9 | |||||||||||||||||||
(Reference) Equity | ||||||||||||||||||||||
As of July 31, 2021 | : ¥16,344 million | |||||||||||||||||||||
As of January 31, 2021 : ¥15,671 million | ||||||||||||||||||||||
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 | - | 0.00 | ||||||||||||||||||||
Fiscal year ending January 31, 2022 (Forecasts) | - | 14.00 | 14.00 | |||||||||||||||||||
(Notes) Change in dividend forecasts for the fiscal year ending January 31, 2022 during the six months ended July 31, 2021: No
- 1 -
3. Consolidated financial forecasts for the fiscal year ending January 31, 2022 (from February 1, 2021 to January 31, 2022)
Net sales | Operating | Ordinary | Profit attributable | Net income | |||||||
profit | profit | to owners of parent | per share | ||||||||
Millions | % | Millions | % | Millions | % | Millions | % | Yen | |||
of yen | of yen | of yen | of yen | ||||||||
Fiscal year ending | 33,224 | 24.3 | 3,535 | 9.9 | 3,539 | (1.6) | 2,157 | 1.7 | 56.53 | ||
January 31, 2022 | |||||||||||
(Note) Change in financial forecasts for the fiscal year ending January 31, 2022 during the six months ended July 31, 2021: Yes
* Notes:
(1) Changes in significant subsidiaries during the six months ended July 31, 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 July 31, 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 July 31, 2021 | : 269,802 shares |
As of January 31, 2021 | : 269,734 shares |
c. Average number of shares (Cumulative) | |
For the six months ended July 31, 2021 | : 37,886,231 shares |
For the six months ended July 31, 2020 | : 37,851,813 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 3 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. The Company intends on posting briefing video and material on the Company's website.
- 2 -
1. Qualitative Information on Financial Results
(1) Analysis of Operating Results
During the second 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 is recovering, preventive measures are taken against COVID-19 and vaccination is promoted. 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. Pole To Win Co., Ltd. Inc. made MSD Holdings Inc. its subsidiary by acquiring all its shares in July in order to gain orders for non-game software & system development and third- party verification services. In April, QBIST Inc. and CREST Inc. relocated head office into the same building in order to enhance synergy in media content related business. In anticipation of increased orders, PITCREW CO., LTD., opened Niigata service center and relocated & expanded floor space for Sendai service center. In order to further expand business, PTW America, Inc. established OneXP LLC. in the United States, PTW International UK Limited established OneXP UK Limited. in the U.K., and PTW International UK Limited established 1518 Studios Rus LLC. in Russia. Collaboration has stepped up between eighteen delivery centers in eleven 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 ¥15,484,928 thousand (up 24.9%). Operating profit was ¥1,512,266 thousand (up 18.5%). Ordinary profit was ¥1,549,018 thousand (up 5.0%) and profit attributable to owners of parent was ¥908,110 thousand (up 0.5%).
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. QBIST Inc., colorful Inc. & CREST Inc. promoted business expansion for media/ content related business in game art creation and animation. 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. 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 27.3% year on year, to ¥ 11,764,765 thousand, operating profit increased by 6.4%, to ¥1,160,347 thousand.
- 3 -
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. AI related service such as data recognition evaluation and 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 16.5%, to ¥3,560,847 thousand. Operating profit increased by 59.9%, to ¥364,282 thousand.
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 58.3% to ¥159,316 thousand and operating profit of ¥7,306 thousand, up from operating loss of ¥68,071 thousand a year earlier.
-
Analysis of Financial Position
Total Assets
Current assets decreased by ¥927,381thousand or 5.4% from the previous fiscal year-end, to ¥ 16,175,167 thousand. This was mainly attributable to an increase of ¥448,970 thousand in notes and accounts receivable-trade and of ¥151,225 thousand in other current assets (mainly prepared expenses) but was offset by decrease of ¥1,529,565 thousand in cash and deposits.
Non-current assets increased by ¥2,190,126 thousand, or 66.6% from the previous fiscal year-end, to ¥5,476,903 thousand. The key factor was an increase of ¥1,973,757 thousand in goodwill.
As a result, total assets increased by ¥1,262,744 or 6.2% thousand from the previous fiscal year-end, to ¥21,652,070 thousand.
Liabilities
Current liabilities increased by ¥326,906 thousand or 7.3% from the previous fiscal year-end, to ¥4,780,913 thousand. The key factors were increase of ¥493,963 thousand in accounts payable-other and ¥250,550 thousand in accrued expenses but offset by decrease of ¥311,085 thousand of income taxes payable and ¥190,595 thousand in other current liabilities (mainly advance received).
Non-current liabilities increased by ¥266,172 thousand or 102.3% from the previous fiscal year-end, to ¥526,401 thousand. This was mainly due to increase of ¥256,358 thousand in long-term borrowings. As a result, total liabilities increased by ¥593,079 thousand or 12.6% from the end of the previous fiscal year- end, to ¥5,307,315 thousand.
Net assets
Net assets increased by ¥669,665 thousand or 4.3% from the previous fiscal year-end, to ¥16,344,755 thousand. This was mainly because there was increase of ¥415,588 thousand in retained earnings for profit attributable to owners of parent and dividend payment and ¥251,968 thousand in foreign currency translation adjustment.
(3) Qualitative Information on Consolidated Earnings Forecasts
Both revenues and earnings exceeded those of the initial forecast for the period under review. The Company has revised its consolidated financial forecasts for the year ending January, 31 2022 as disclosed on September 3rd, 2021 in "Announcement on the revision of the earnings forecasts for Fiscal Year 2022". This is because from the third quarter of the consolidated fiscal year under review, the Group's consolidated subsidiary will increase through the acquisition of MSD Holdings Inc., Panda Graphics Inc., and Delfi Sound Inc.
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) | |||
Fiscal 2021 | 2Q Fiscal 2022 | ||
(As of January 31, 2021) | (As of July 31, 2021) | ||
Assets | |||
Current assets | |||
Cash and deposits | 11,158,548 | 9,628,983 | |
Notes and accounts receivable - trade | 4,504,541 | 4,953,511 | |
Merchandise and finished goods | 861 | 324 | |
Work in process | 172,920 | 178,990 | |
Other | 1,308,165 | 1,459,391 | |
Allowance for doubtful accounts | (42,488) | (46,034) | |
Total current assets | 17,102,548 | 16,175,167 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures | 893,190 | 958,062 | |
Accumulated depreciation | (544,376) | (552,180) | |
Buildings and structures, net | 348,814 | 405,881 | |
Machinery, equipment and vehicles | 23,081 | 23,324 | |
Accumulated depreciation | (15,860) | (16,799) | |
Machinery, equipment and vehicles, net | 7,221 | 6,525 | |
Tools, furniture and fixtures | 1,616,860 | 1,777,781 | |
Accumulated depreciation | (1,294,048) | (1,394,631) | |
Tools, furniture and fixtures, net | 322,812 | 383,150 | |
Other | 15,306 | - | |
Total property, plant and equipment | 694,154 | 795,557 | |
Intangible assets | |||
Goodwill | 511,654 | 2,485,412 | |
Software | 225,961 | 251,321 | |
Other | 202,538 | 202,813 | |
Total intangible assets | 940,155 | 2,939,547 | |
Investments and other assets | |||
Investment securities | 654,071 | 710,660 | |
Leasehold and guarantee deposits | 751,910 | 752,415 | |
Deferred tax assets | 195,008 | 208,902 | |
Other | 128,470 | 165,714 | |
Allowance for doubtful accounts | (76,994) | (95,894) | |
Total investments and other assets | 1,652,466 | 1,741,798 | |
Total non-current assets | 3,286,776 | 5,476,903 | |
Total assets | 20,389,325 | 21,652,070 |
- 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 24 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 September 2021 05:01:01 UTC.