Third Quarter Fiscal Year Ending March 31, 2016 Consolidated Earnings Announcement (Japanese GAAP)

Transcription

1 Third Quarter Fiscal Year Ending March 31, 2016 Consolidated Earnings Announcement (Japanese GAAP) Company Name: Hoosiers Holdings Stock Code: 3284 Representative: (Title) CEO and President Contact: (Title) Senior managing director and head of Management Department Scheduled date to file Quarterly Report: February 12, 2016 Scheduled date to commence dividend payment: No Preparation of supplementary information of quarterly financial results : No Holding of quarterly financial results briefing : No February 12, 2016 Listed market: Tokyo Stock Exchange First Section URL: (Name) Tetsuya Hirooka (Name) Tsutomu Ikuma Telephone: (Figures are rounded down to the nearest million yen) 1. 3rd Quarter FY3/16 Consolidated Earnings (April 1, 2015 to December 31, 2015) (1) Consolidated Earnings (Cumulative) (% indicates changes from the corresponding period of the previous fiscal year) Profit Attributable to Net Sales Operating Income Ordinary Income Owners of Parent Million yen % yy Million yen % yy Million yen % yy Million yen % yy 3rd Quarter FY3/16 21, , , rd Quarter FY3/15 18, , , , (Note) Comprehensive income: 3rd Quarter FY3/ million (-19.5%) FY3/15 1,116 million (-49.5%) EPS Yen Diluted EPS 3rd Quarter FY3/ rd Quarter FY3/ Yen (2) Consolidated Financial Position Total Assets Net Assets Net Asset Ratio Million yen Million yen % December 31, ,666 21, March 31, ,631 21, (Reference) Shareholders equity: 3rd Quarter FY3/16 21,612 million FY3/15 21,516 million 2. Dividends End of 1st Quarter End of 2nd Quarter Dividend per Share End of 3rd Quarter End of Period Annual Yen Yen Yen Yen Yen FY3/ FY3/ FY3/16 (Forecast) (Note) Changes to the dividend forecast during the quarter under review: No - 1 -

2 3. Consolidated Earnings Projections for Fiscal Year Ending March 2016 (From April 1, 2015 to March 31, 2016) Net Sales Operating Income Ordinary Income (% indicates changes from the relevant corresponding period of the previous fiscal year) Profit Attributable to Owners of Parent Million yen % Million yen % Million yen % Million yen % Yen Full year 38, , , , (Note) Changes to the consolidated earnings projections during the quarter under review: No EPS - 2 -

3 * Matters to be noted (1) Changes in important subsidiaries during the quarter under review: No Changes in specified subsidiaries which accompany a change in the scope of consolidation Newly included: Excluded: (2) Application of special accounting practices for the preparation of quarterly consolidated financial statements: No (3) Changes in accounting principles, changes in accounting estimates and retrospective restatements (a) Changes in accounting principles in accordance with revisions to accounting and other standards: Yes (b) Changes in accounting principles other than above (a): No (c) Changes in accounting estimates: No (d) Retrospective restatements: No (4) Outstanding shares (Common stock) (a) Number of outstanding shares at end of period (Including treasury shares) 3rd Quarter FY3/16 31,555,600 shares FY ended March 2015 (b) Number of outstanding treasury shares at end of period 3rd Quarter FY3/16 2,110,600 shares FY ended March 2015 (c) Average number of shares during the period (Quarterly cumulative period) 3rd Quarter FY3/16 30,094,339 shares 3rd Quarter FY3/15 31,555,600 shares 1,395,400 shares 31,119,787 shares * Statement regarding the state of implementation of quarterly review procedures This quarterly consolidated earnings announcement is exempt from the quarterly review procedures stipulated under the Financial Instruments and Exchange Act. Review procedures of the quarterly financial statements as stipulated under the Financial Instruments and Exchange Act have not been completed at the time of disclosure of this quarterly consolidated earnings announcement. * Explanatory statement regarding the proper use of financial forecasts and other notes All projections provided in this document are based on certain reasonable assumptions and beliefs in light of information currently available. Actual results may differ from our projections due to various unforeseen reasons

4 4. Qualitative Information on the Financial Statements for the Quarter Under Review, etc. (1) Description of business performance In the third quarter of the term ending March 2016 (April 1, 2015 to December 31, 2015), the number of contracted units was 892, 3 lots and 3 buildings, and that of delivered units was 720, 4 lots and 2 buildings. As of the end of this third quarter, we managed 12,204 units. Consequently, as the results for this third quarter, we posted net sales of 21,864 million yen (19.2% up from the same quarter of the previous year), operating income of 1,657 million yen (6.4% up from the same quarter of the previous year), ordinary income of 1,393 million yen (6.5% up from the same quarter of the previous year), and profit attributable to owners of parent of 912 million yen (18.3% down from the same quarter of the previous year). *The number of units for joint venture properties is described with consideration for the joint venture ratio. In the mainstay real estate sales business of the Hoosiers Group, while contracts progress in line with ongoing construction, sales for the majority of condominium lots and detached houses are booked upon delivery to customers after construction has been completed and not at the time purchase and sales contracts are executed. As a result, this tends to cause a deviation in quarterly sales depending on the timing of delivery. Results by segment are as follows. (I) Real Estate Sales Business During the third quarter of the fiscal year ending March 2016, the Hoosiers Group recorded net sales and an operating income of 20,781 million (18.8% up from the same quarter of the previous year) and 1,645 million (9.9% up from the same quarter of the previous year), respectively. (1) Real Estate Sales (Condominium Sales) We recorded net sales of 13,621 million (5.4% up from the same quarter of the previous year) due to a delivery of 443 condominium units such as Duo Hills Todakoen Riveriese and Duo Hills Morioka-chuodori The MASTER. (Detached Housing Sales) We recorded net sales of 4,939 million (58.3% up from the same quarter of the previous year) due to a delivery of 117 detached housing units such as Duo Avenue Seibu Tachikawa, Duo Avenue Ichikawa-myoden, and Duo Avenue Misato-Chuo. (Other Sales) Due to the sale of other inventory assets, we recorded net sales of 830 million (54.9% up from the same quarter of the previous year). (2) Sales Commissions We recorded net sales of 407 million (113.5% up from the same quarter of the previous year) due to a delivery of Wellith Tsukuba Kenkyugakuen Residence and Wellith Tsudanuma. (3) Rental Revenue Due to the stable operation of owned income-producing properties, we recorded net sales of 744 million (33.0% up from the same quarter of the previous year). (4) Other Income We recorded net sales of 238 million (41.9% up from the same quarter of the previous year) on the back of a combination of commercial facility management income and loan application service commissions. As for the actual sales in the first, second and third quarters of the fiscal year ending March 2016 with respect to the transfer plan for the current term, the contracts for 1,003 units (rate of progress, 71.6%) out of 1,400 units to be transferred in this fiscal year have been already signed. Especially, as for proper condominiums (condominiums and detached houses), which contribute significantly to earnings, the contracts for 835 units (rate of progress, 75.9%) out of 1,100 units to be transferred in this fiscal year have been already concluded, as planned

5 (Status of sales of the real estate to be transferred in this fiscal year) FY3/16 Number of Planned Property Deliveries Number of Properties for Which Contracts Have Been Completed As of December 31, 2015 Rate of Progress Proper condominiums 1, % Condominiums (820) (662) (80.7%) Detached houses (280) (173) (61.8%) Consigned properties % Total 1,400 1, % *The number of units for joint venture properties is described with consideration for the joint venture ratio. In addition to real estate to be transferred in this fiscal year, as for the sale of real estate to be transferred in the next term or later, the contracts for 231 units (rate of progress, 65.6%) of Duo Hills Tsukuba Emblem (in Tsukuba City, Ibaraki Prefecture; total number of units: 352) have been signed in 7 months after the start of sale. This indicates the selling environment is favorable. (II) Real Estate Management Business During the third quarter of the fiscal year ending March 2016, we recorded net sales of 1,083 million (27.1% up from the same quarter of the previous year) and operating loss of 12 million (operating income of the same quarter of the previous year: 1 million). (1) Condominium Management We started new real estate management for Duo Hills Todakoen Riveriese and Duo Hills Morioka-chuodori The MASTER and recorded net sales of 815 million (17.5% up from the same quarter of the previous year). (2) Other Income We recorded net sales of 268 million (69.1% up from the same quarter of the previous year) centering on our insurance agency, other lifestyle related sales and consigned construction business. (2) Qualitative information concerning shifts in consolidated financial position Due mainly to the procurement of premises for business use, repay of loans and other items, total assets, total liabilities, and net assets stood at 66,666 million (6.4% up from the end of the previous fiscal year), 45,051 million (9.6% up from the end of the previous fiscal year) and 21,615 million (0.4% up from the end of the previous fiscal year), respectively, as of the end of the third quarter of the fiscal year ending March (3) Qualitative information regarding performance forecast In connection with the business performance forecasts for the fiscal year ending March 2016, results and the status of sales for the third quarter of the fiscal year under review progressed steadily. Taking into consideration that the Group s operating environment is basically within the bounds of initial assumptions, full fiscal year projection announced on May 12, 2015 remains unchanged

6 5. Items regarding Summary Information (Notes) (1) Changes in important subsidiaries during the quarter under review Not applicable (2) Application of special accounting practices for the preparation of quarterly consolidated financial statements Not applicable (3) Changes in accounting principles, changes in accounting estimates and retrospective restatements (Changes in accounting principles) Accounting Standard for Business Combination (Corporate Accounting Standards No. 21: September 13, 2013; hereinafter referred to as Accounting Standard for Business Combination ), Accounting Standard for Consolidated Financial Statements (Corporate Accounting Standards No. 22: September 13, 2013; hereinafter referred to as Consolidated Accounting Standard ) and Accounting Standard for Business Divestitures (Corporate Accounting Standards No. 7: September 13, 2013; hereinafter referred to as Accounting Standard for Business Divestitures ) have been applied since the first quarter of the fiscal year under review, and we changed to the method of posting acquisition-related expenses as the expenses for the consolidated fiscal year in which said expenses emerged. As for the business combination at or after the beginning of the first quarter, we will adopt the method of reflecting the revision to the acquisition cost allocation due to provisional account settlement in the consolidated quarterly financial statements for the quarter including the date of business combination. In addition, changes have been made to the representation of profit and to the representation from minority interests to non-controlling interests. In order to reflect the changes to the applicable representations, the consolidated quarterly financial statements and consolidated financial statements have been rearranged for the previous third quarter consolidated cumulative period and the previous consolidated fiscal year. Accounting Standard for Business Combination, etc. have been applied since the beginning of the first quarter of this consolidated fiscal year, in accordance with the provisions for transition specified in Section 58-2 (4) of Accounting Standard for Business Combination, Section 44-5 (4) of Consolidated Accounting Standard, and Section 57-4 (4) of Accounting Standard for Business Divestitures. As a result, operating income, ordinary income and income before income taxes and minority interests for the first, second and third quarters of the fiscal year ending March 2016 decreased by 20 million yen, respectively

7 6. Consolidated Quarterly Financial Statements (1) Consolidated Quarterly Balance Sheet End of Previous Fiscal Year (March 31, 2015) (Unit: 1,000) End of 3 rd Quarter Under Review (December 31, 2015) Assets Current assets Cash and deposits 15,722,168 9,458,935 Accounts receivable-trade 122, ,883 Real estate for sale 11,282,148 13,290,253 Real estate for sale in process 27,587,544 33,084,097 Prepaid expenses 831,593 1,471,323 Deferred tax assets 638, ,129 Other 1,549, ,302 Allowance for doubtful accounts (2,483) (2,581) Total current assets 57,731,680 58,622,343 Non-current assets Property, plant and equipment 3,777,709 6,220,270 Intangible assets 75, ,871 Investments and other assets 1,046,170 1,170,238 Total non-current assets 4,899,421 8,044,381 Total assets 62,631,102 66,666,724 Liabilities Current liabilities Notes and accounts payable-trade 1,888,207 1,150,954 Short-term loans payable 100, ,000 Current portion of bonds 150, ,000 Current portion of long-term loans payable 8,558,203 8,907,416 Income taxes payable 1,200,810 53,296 Advances received 2,394,600 4,062,352 Subsidy advances received 969,785 1,311,572 Provision for bonuses 59,325 34,436 Other 2,429,211 1,701,333 Total current liabilities 17,750,142 17,987,362 Non-current liabilities Bonds payable 425, ,000 Long-term loans payable 22,351,788 26,065,665 Deferred tax liabilities 404, ,698 Net defined benefit liability 1,365 1,990 Asset retirement obligations 32,028 41,030 Other 147,220 95,666 Total non-current liabilities 23,361,467 27,064,051 Total liabilities 41,111,610 45,051,

8 End of Previous Fiscal Year (March 31, 2015) (Unit: 1,000) End of 3 rd Quarter Under Review (December 31, 2015) Net Assets Shareholders' equity Capital stock 2,400,240 2,400,240 Retained earnings 19,804,452 20,294,681 Treasury shares (688,356) (1,068,877) Total shareholders' equity 21,516,336 21,626,044 Accumulated other comprehensive income Valuation difference on available-for-sale securities (13,889) Total accumulated other comprehensive income (13,889) Subscription rights to shares 3,155 3,155 Total net assets 21,519,491 21,615,310 Total liabilities and net assets 62,631,102 66,666,

9 (2) Consolidated Quarterly Income Statements and Comprehensive Income Statements Consolidated Quarterly Income Statements Consolidated Income Statements for the Third Quarter (Cumulative) Previous 3rd Quarter (From April 1, 2014 to December 31, 2014) (Unit: 1,000) 3rd Quarter Under Review (From April 1, 2015 to December 31, 2015) Net sales 18,348,568 21,864,964 Cost of sales 13,635,310 16,530,020 Gross profit 4,713,258 5,334,943 Selling, general and administrative expenses 3,154,932 3,677,518 Operating income 1,558,325 1,657,424 Non-operating income Interest income 1,338 15,433 Contract cancellations 36,147 13,316 Commission fee 10,418 20,380 Other 14,224 8,895 Total non-operating income 62,129 58,025 Non-operating expenses Interest expenses 248, ,723 Commission fee 62,122 29,102 Other 1,512 18,354 Total non-operating expenses 312, ,180 Ordinary income 1,308,078 1,393,269 Extraordinary income Gain on sales of non-current assets 2,992 Total extraordinary income 2,992 Income before income taxes and minority interests 1,311,071 1,393,269 Income taxes-current 436, ,540 Income taxes-deferred (242,010) 242,256 Total income taxes 194, ,797 Profit 1,116, ,472 Profit attributable to owners of parent 1,116, ,

10 Consolidated Quarterly Comprehensive Income Statements Consolidated Income Statements for the Third Quarter (Cumulative) Previous 3rd Quarter (From April 1, 2014 to December 31, 2014) (Unit: 1,000) 3rd Quarter Under Review (From April 1, 2015 to December 31, 2015) Profit 1,116, ,472 Other comprehensive income Valuation difference on available-for-sale securities (13,889) Total other comprehensive income (13,889) Comprehensive income 1,116, ,583 Comprehensive income attributable to Comprehensive income attributable to owners of parent 1,116, ,583 Comprehensive income attributable to non-controlling interests

11 7. Other Information (1) Records of Sales Segment Name (I) Real Estate Sales Previous 3 rd Quarter (From April 1, 2014 to December 31, 2014) Sales ( 1,000) 3 rd Quarter Under Review (From April 1, 2015 to December 31, 2015) Sales ( 1,000) YoY Change (%) 1. Real estate sales 16,577,734 19,391, (Condominium sales) (12,921,219) (13,621,814) (105.4) (Detached Housing sales) (3,120,563) (4,939,385) (158.3) (Other sales) (535,951) (830,038) (154.9) 2. Sales commissions 190, , Rental revenue 559, , Other income 168, , Total Real Estate Sales 17,495,920 20,781, (II) Real Estate Management 1. Condominium management 693, , Other income 158, , Total Real Estate Management 852,648 1,083, Total 18,348,568 21,864, (2) Real Estate Sales Information Previous 3rd Quarter (From April 1, 2014 to December 31, 2014) Item Real Estate Sales Outstanding Contracts at Term Start Building 13,654,705 ( 1,000) New Contracts Signed during Term Unit Delivered during Term Outstanding Contracts at Term End YoY Change (%) YoY Change (%) YoY Change (%) 1, ,203,163 ( 1,000) (133.8 %) Building 16,768,393 ( 1,000) (91.4 %) Block 1 Building 28,089,475 ( 1,000) (126.3 %) Item Real Estate Sales Outstanding Contracts at Term Start Block Building 18,668,811 ( 1,000) 3rd Quarter Under Review (From April 1, 2015 to December 31, 2015) New Contracts Signed during Term Unit Delivered during Term Outstanding Contracts at Term End YoY Change (%) YoY Change (%) YoY Change (%) ,972,310 ( 1,000) (99.3 %) ,798,388 ( 1,000) (118.1 %) 801 Block 1 Building 29,842,732 ( 1,000) (106.2 %)

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