(English Translation)
Financial Results for the Third Quarter
of the Fiscal Year Ending September 30, 2020 (under Japan GAAP) (Consolidated)
July 30, 2020 | ||
Company name: M&A Capital Partners Co., Ltd. | Stock exchange listings: | |
Tokyo Stock Exchange | ||
Securities code: 6080 | ||
Representative: Satoru Nakamura | ||
President and Representative Director | ||
Contact: | Daisuke Uehara | Tel: 03-6880-3803 |
Director and Manager at the Planning | ||
Management Department | ||
Scheduled date of filing of quarterly report: | August 14, 2020 | |
Scheduled date of commencement of dividend payment: | - | |
Presentation of supplementary materials on financial results: Yes | ||
Holding of quarterly financial presentation meeting: | No |
(Note that all amounts have been rounded down to the nearest one million yen.)
1. Financial Results for the Third Quarter of the Fiscal Year Ending September 30, 2020 (From October 1, 2019 to June 30, 2020)
- Consolidated Operating Results (Cumulative)
(Percentage figures represent changes from the same period of the previous fiscal year)
Operating | Profit attributable | |||
Net sales | Ordinary income | to owners of | ||
income | ||||
parent | ||||
Third quarter of | ||||
fiscal year ending | ¥8,375 million | ¥3,521 million | ¥3,520 million | ¥2,319 million |
September 30, | (-15.5%) | (-25.4%) | (-25.4%) | (-26.6%) |
2020 | ||||
Third quarter of | ||||
fiscal year | ¥9,916 million | ¥4,720 million | ¥4,720 million | ¥3,159 million |
ended | (55.7%) | (72.1%) | (72.5%) | (68.2%) |
September 30, | ||||
2019 |
(Note)
Comprehensive income:
Third quarter of fiscal year ending September 30, 2020: 2,319 million yen (-26.6 %)
Third quarter of fiscal year ended September 30, 2019: 3,159 million yen (68.2 %)
Profit per share | Profit (fully diluted) per share | |
Third quarter of fiscal year | ¥74.33 | ¥72.62 |
ending September 30, 2020 | ||
Third quarter of fiscal year | ¥101.25 | ¥99.91 |
ended September 30, 2019 | ||
(Note) The Company conducted a two-for-one stock split of its common stock on December 1, 2019. Profit per share and profit (fully diluted) per share are calculated assuming that the stock split took place at the beginning of the fiscal year ended September 30, 2019.
- Consolidated Financial Position
Total assets | Net assets | Equity ratio | |
Third quarter of | |||
fiscal year ending | ¥21,571 million | ¥19,540 million | 89.8% |
September 30, 2020 | |||
Fiscal year ended | ¥21,131 million | ¥17,205 million | 80.7% |
September 30, 2019 | |||
(Reference)
Equity: Third quarter of fiscal year ending September 30, 2020: 19,368 million yen Fiscal year ended September 30, 2019: 17,048 million yen
2. Dividends
Annual dividends per share | |||||
First | Second | Third | Year-end | Total | |
quarter | quarter | quarter | |||
Fiscal year ended | ― | ¥0.00 | ― | ¥0.00 | ¥0.00 |
September 30, 2019 | |||||
Fiscal year ending | ― | ¥0.00 | ― | ||
September 30, 2020 | |||||
Fiscal year ending
September 30, 2020¥0.00 ¥0.00 (Forecast)
(Note) Revision of dividend forecast since the latest announcement: No
3. Forecast of Consolidated Financial Results for the Fiscal Year Ending September 30, 2020 (From October 1, 2019 to September 30, 2020)
(Percentage figures represent changes from the previous fiscal year)
Profit | |||||
Net sales | Operating | Ordinary | attributable to | Profit per | |
income | income | owners of | share | ||
parent | |||||
¥13,706 | ¥5,900 | ¥5,905 | ¥4,054 | ||
Annual | million | million | million | million | ¥129.91 |
(8.9%) | (0.8%) | (0.9%) | (3.3%) |
(Note) Revision of financial results forecast since the latest announcement: No
* Notes
- Significant changes in subsidiaries during the consolidated cumulative quarter under review (Changes in specified subsidiaries affecting the scope of consolidation): No
- Application of accounting treatment specific to preparation of quarterly consolidated
financial statements: | No |
- Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections
- Changes in accounting policies due to revisions to accounting standards and
other regulations, etc.: | No |
- Changes in accounting policies due to
reasons other than (i): | No | |
(iii) | Changes in accounting estimates: | No |
(iv) | Restatement of prior period | |
financial statements after error corrections: | No |
- Total number of issued shares (common shares)
- Total number of issued shares as of the end of the period (including treasury
shares): | |
As of June 30, 2020 | 31,210,000 shares |
As of September 30, 2019 | 31,210,000 shares |
- Number of treasury shares as of the end of the period:
As of June 30, 2020 | 398 shares |
As of September 30, 2019 | 398 shares |
- Average number of shares during the period (cumulative total for the quarter):
Third quarter of fiscal year ending September 30, 2020 | 31,209,602 shares |
Third quarter of fiscal year ended September 30, 2019 | 31,209,602 shares |
(Note) The Company conducted a two-for-one stock split of its common stock on December 1, 2019. The total number of issued shares is calculated assuming that the stock split took place at the beginning of the fiscal year ended September 30, 2019.
- The quarterly financial results are not subject to quarterly review by certified public accountants or an audit firm.
- Proper usage of the forecast of financial results, and other special matters
Descriptions or statements concerning projected figures and future outlooks contained within these materials are based on the decisions and assumptions resulting from information currently obtainable by the Company. The possibility exists that due to the intrinsic
uncertainty of those decisions and assumptions and/or changes in terms of business operations as well as situational changes occurring internally/externally, the actual results may substantially differ from the content of projections. These materials do not constitute a guarantee on the part of the Company as to the certainty of any and all content concerning forecasts for the future.
Attachment - Contents | ||
1. Qualitative Information on Financial Results for the Quarter under Review .................. | 2 | |
(1) | Explanation of Operating Results........................................................................... | 2 |
(2) | Explanation of Financial Position........................................................................... | 5 |
(3) | Explanation of Forecast of Consolidated Financial Results and Other | |
Forward-looking Statements................................................................................... | 6 | |
2. Quarterly Consolidated Financial Statements and Notes................................................. | 7 | |
(1) | Quarterly Consolidated Balance Sheet ................................................................... | 7 |
(2) | Quarterly Consolidated Statements of Income and Quarterly Consolidated | |
Statements of Comprehensive Income ................................................................... | 9 | |
(3) | Notes to Quarterly Consolidated Financial Statements ........................................ | 11 |
(Notes on premise of going concern) .............................................................. | 11 | |
(Notes on significant changes in shareholders' equity) .................................. | 11 |
- 1 -
1. Qualitative Information on Financial Results for the Quarter under Review
- Explanation of Operating Results
a. Market conditions
According to statistical data collected and published by the Group in the "M&A trends for Japanese companies, January - June 2020" report, the number of M&A deals publicly announced in relation to Japanese companies declined by 279 (down 13.4%) year on year to 1,808. Because April and May, when the state of emergency was in operation, both posted a significant decline of 30%, it seems that the effect of the spread of coronavirus infections was considerable.
The impact on the number of M&A deals between Japanese companies was relatively small, with a year-on-year decline of 7.4%, but there are concerns that the global spread of infections will continue and that a second wave will occur in Japan, leading to the possibility that this lack of certainty will affect the willingness to invest of companies considering acquisitions.
Also, we believe that there will be an increase in the number of Business owners choosing M&A in search of business synergies or due to a lack of a successor, and in the event that buyers become less willing to invest, it may become more difficult to match the two sides.
As a result, we expect the Group's comparative advantage to increase due to the know-how we have accumulated, and due to our extensive relationships with medium- sized and large enterprises that have the potential to become purchasers.
The Group will do its utmost to fulfill its social responsibilities through the creation of M&A.
b. Condition of the Group
In terms of countermeasures to prevent coronavirus infection taken in relation to clients and employees, from early April the Group gradually switched to working from home, and refrained from initiating new marketing activity. During the period of approximately two months before the state of emergency was lifted, many of the deals under consideration that we were handling incurred delays relative to the schedule initially expected as a result of interruptions and postponements to interviews, etc.
However, the amount of advances received, which is a leading indicator of future performance, reached a record high of ¥550.686 million, and we have an abundance of deals in hand. Moreover, because the direct effects of novel coronavirus were skewed towards specific deals associated with industries such as food and tourism, at this point we judge that their impact has been limited.
Even deals where consideration had been interrupted or come to a halt began to recover steadily from June onwards, and we have high expectations for deals closing in the fourth quarter.
Under these circumstances, performance for the nine months ended June 30, 2020 was as follows.
Net sales declined by ¥1,541.478 million (15.5%) year on year, to ¥8,375.008 million. The main factor behind this was that, although we achieved a healthy number of closed deals in the second and third quarters, this was not sufficient to offset the weakness in
- 2 -
deal closures in the first quarter, and the number of deals closed declined significantly year on year.
The cost of sales decreased by ¥650.289 million (19.6%) year on year to ¥2,659.420 million, mainly due to decreases in incentives and subcontract expenses associated with the decline in net sales.
Selling, general and administrative expenses rose by ¥307.459 million (16.3%) year on year to ¥2,193.898 million, primarily due to strengthened advertising, higher ground rents caused by an increase in office space, and an increase in directors' compensation resulting from the success of directors growing sales.
As a result, operating income decreased by ¥1,198.648 million (25.4%) year on year to ¥3,521.689 million, ordinary income decreased by ¥1,199.818 million (25.4%) year on year to ¥3,520.788 million, and profit attributable to owners of parent decreased by ¥840.110 million (26.6%) year on year to ¥2,319.827 million.
- 3 -
Number of deals (consolidated)
Cumulative third | Cumulative third | |||||
quarter of fiscal year | quarter of fiscal year | |||||
ended September 30, | ending September 30, | Year-on-year | ||||
Name of type | 2019 | 2020 | ||||
Change | ||||||
(From October 1, | (From October 1, | |||||
2018 to June 30, | 2019 to June 30, | |||||
2019) | 2020) | |||||
M&A deals closed | (number | 107 | 90 | -17 | ||
of deals) | ||||||
Number of deals | ||||||
among those | ||||||
wherein amount of | (number | 21 | 14 | -7 | ||
processing fees for | of deals) | |||||
Whole | By amount | the deal was ¥ 100 | ||||
Group | of | million or more | ||||
processing | Number of deals | |||||
fees | among those | |||||
wherein amount of | (number | 86 | 76 | -10 | ||
processing fees for | of deals) | |||||
the deal was less | ||||||
than ¥ 100 million |
Number of deals (non-consolidated)
Cumulative third | Cumulative third | |||||
quarter of fiscal year | quarter of fiscal year | |||||
ended September 30, | ending September 30, | Year-on-year | ||||
Name of type | 2019 | 2020 | ||||
Change | ||||||
(From October 1, | (From October 1, | |||||
2018 to June 30, | 2019 to June 30, | |||||
2019) | 2020) | |||||
M&A deals closed | (number | 95 | 72 | -23 | ||
of deals) | ||||||
Number of deals | ||||||
among those | ||||||
wherein amount of | (number | 19 | 11 | -8 | ||
M&A | processing fees for | of deals) | ||||
Capital | By amount | the deal was ¥ 100 | ||||
Partners | of | million or more | ||||
Co., Ltd. | processing | Number of deals | ||||
fees | among those | |||||
wherein amount of | (number | 76 | 61 | -15 | ||
processing fees for | of deals) | |||||
the deal was less | ||||||
than ¥ 100 million |
- 4 -
Cumulative third | Cumulative third | |||||
quarter of fiscal year | quarter of fiscal year | |||||
ended September 30, | ending September 30, | Year-on-year | ||||
Name of type | 2019 | 2020 | ||||
Change | ||||||
(From October 1, | (From October 1, | |||||
2018 to June 30, | 2019 to June 30, | |||||
2019) | 2020) | |||||
M&A deals closed | (number | 12 | 18 | +6 | ||
of deals) | ||||||
Number of deals | ||||||
among those | ||||||
wherein amount of | (number | |||||
processing fees for | ||||||
of deals) | ||||||
the deal was | 2 | 3 | +1 | |||
RECOF | By amount | |||||
¥ 100 million or | ||||||
Corporation | of | |||||
more | ||||||
processing | ||||||
Number of deals | ||||||
fees | ||||||
among those | ||||||
wherein amount of | (number | 10 | 15 | +5 | ||
processing fees for | of deals) | |||||
the deal was less | ||||||
than ¥ 100 million |
Segment information is omitted because our Group's reporting segment is only the M&A-related services business.
-
Explanation of Financial Position (Current assets)
Current assets amounted to ¥19,356.801 million, an increase of ¥729.501 million (3.9%) from the end of the previous fiscal year. The main factors driving this were an increase of ¥1,027.380 million in cash and deposits, and a ¥414. 644 million decrease in accounts receivable - trade.
(Non-current assets)
Non-current assets amounted to ¥2,215.141 million, a decrease of ¥289.006 million (11.5%) year on year. This was primarily due to a decrease of ¥145.095 million in goodwill and a decrease of ¥120.107 million in deferred tax assets.
(Current liabilities)
Current liabilities amounted to ¥1,806.164 million, a decrease of ¥1,907.860 million (51.4%) from the end of the previous fiscal year. This was primarily due to a ¥1,581.949 million decrease in income taxes payable.
(Non-current liabilities)
Non-current liabilities amounted to ¥225.654 million, an increase of ¥13.646 million (6.4%) from the end of the previous fiscal year. This was due to a ¥13.700 million increase in net defined benefit liability.
(Net assets)
Net assets amounted to ¥19,540.124 million, an increase of ¥2,334.709 million (13.6%) from the end of the previous fiscal year. This was primarily due to a ¥2,319.827 million increase in retained earnings. - 5 -
- Explanation of Forecast of Consolidated Financial Results and Other Forward-looking Statements
In the first nine months ended June 30, 2020, performance undershot previous-year levels due to a decline in the number of deals closed. Nevertheless, given that we have built up an abundance of deals in hand, and that the amount of advances received (which is a reference indicator of the order backlog) hit a record high, we judge that full-year forecasts are achievable, and we have left the figures already disclosed in place.
With regard to the impact on performance of the novel coronavirus, since the end of the state of emergency, there has been no major impact from June onwards. We have restarted an energetic program of marketing activity in conjunction with the continued use of Internet-based interviews, etc.
In the event that the novel coronavirus results in a state of emergency being declared again at some point in the future, there could be a significant impact on our performance. For that reason, we will pay careful attention to the situation going forward and make prompt disclosure if a revision to earnings forecasts becomes necessary.
- 6 -
2. Quarterly Consolidated Financial Statements and Notes
- Quarterly Consolidated Balance Sheet
(Unit: thousand yen) | |||
Previous consolidated | Third quarter of fiscal | ||
fiscal year | year ending September | ||
(as of September 30, | 30, 2020 | ||
Assets | 2019) | (as of June 30, 2020) | |
Current assets | |||
Cash and deposits | 17,953,475 | 18,980,856 | |
Accounts receivable - trade | 565,507 | 150,863 | |
Allowance for doubtful accounts | (3,240) | (3,240) | |
Other | 111,557 | 228,323 | |
Total current assets | 18,627,300 | 19,356,801 | |
Non-current assets | |||
Property, plant and equipment | |||
Facilities attached to buildings, net | 193,686 | 199,778 | |
Other | 60,373 | 62,327 | |
Total property, plant and equipment | 254,059 | 262,105 | |
Intangible assets | |||
Trademark right | 231,000 | 206,250 | |
Goodwill | 1,354,221 | 1,209,126 | |
Other | 56,521 | 50,281 | |
Total intangible assets | 1,641,742 | 1,465,657 | |
Investments and other assets, gross | |||
Lease and guarantee deposits | 277,347 | 268,425 | |
Deferred tax assets | 330,961 | 210,854 | |
Other | 35 | 8,097 | |
Total investments and other assets | 608,344 | 487,377 | |
Total non-current assets | 2,504,147 | 2,215,141 | |
Total assets | 21,131,448 | 21,571,943 | |
Liabilities | |||
Current liabilities | |||
Advances received | 353,104 | 550,686 | |
Provision for bonuses | 17,814 | 344,833 | |
Accounts payable - other | 1,096,693 | 446,622 | |
Income taxes payable | 1,772,523 | 190,574 | |
Accrued consumption taxes | 401,356 | 171,140 | |
Other | 72,533 | 102,307 | |
Total current liabilities | 3,714,025 | 1,806,164 | |
Non-current liabilities | |||
Net defined benefit liability | 123,266 | 136,966 | |
Other | 88,741 | 88,687 | |
Total non-current liabilities | 212,007 | 225,654 | |
Total liabilities | 3,926,033 | 2,031,818 |
- 7 -
(Unit: thousand yen) | |||
Previous consolidated | Third quarter of fiscal | ||
fiscal year | year ending September | ||
(as of September 30, | 30, 2020 | ||
Net assets | 2019) | (as of June 30, 2020) | |
Shareholders' equity | |||
Capital stock | 2,503,615 | 2,503,615 | |
Capital surplus | 2,493,365 | 2,493,365 | |
Retained earnings | 12,052,240 | 14,372,068 | |
Treasury shares | (353) | (353) | |
Total shareholders' equity | 17,048,868 | 19,368,696 | |
Other comprehensive income | |||
Foreign currency translation adjustment | - | (312) | |
Total other comprehensive income | - | (312) | |
Subscription rights to shares | |||
156,546 | 171,740 | ||
Total net assets | |||
17,205,415 | 19,540,124 | ||
Total liabilities and net assets | |||
21,131,448 | 21,571,943 |
- 8 -
- Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
For the Nine-month Periods
(Unit: thousand yen) | |||
Cumulative third quarter | Cumulative third quarter | ||
of previous fiscal year | of current fiscal year | ||
(From October 1, 2018 | (From October 1, 2019 | ||
Net sales | to June 30, 2019) | to June 30, 2020) | |
9,916,487 | 8,375,008 | ||
Cost of sales | 3,309,710 | 2,659,420 | |
Gross profit | 6,606,776 | 5,715,587 | |
Selling, general and administrative expenses | 1,886,439 | 2,193,898 | |
Operating income | 4,720,337 | 3,521,689 | |
Non-operating income | |||
Interest income | 852 | 864 | |
Miscellaneous income | 44 | 889 | |
Total non-operating income | 897 | 1,754 | |
Non-operating expenses | 0 | ||
Loss on retirement of non-current assets | 248 | ||
Miscellaneous loss | 628 | 2,407 | |
Total non-operating expenses | 628 | 2,655 | |
Ordinary income | 4,720,606 | 3,520,788 | |
Income before income taxes | |||
4,720,606 | 3,520,788 | ||
Income taxes - current | |||
1,742,187 | 1,083,102 | ||
Income taxes - deferred | (181,518) | 117,857 | |
Total income taxes | 1,560,668 | 1,200,960 | |
Profit | 3,159,938 | 2,319,827 | |
Profit attributable to owners of parent | 3,159,938 | 2,319,827 |
- 9 -
Quarterly Consolidated Statements of Comprehensive Income
For the Nine-month Periods
(Unit: thousand yen)
Profit
Other comprehensive income
Foreign currency translation adjustment Total other comprehensive income
Comprehensive income
(Comprehensive income attributable to:)
Comprehensive income attributable to owners of parent
Cumulative third quarter Cumulative third quarter
of previous fiscal year | of current fiscal year |
(From October 1, 2018 | (From October 1, 2019 |
to June 30, 2019) | to June 30, 2020) |
3,159,938 | 2,319,827 |
― | (312) |
― | (312) |
3,159,938 | 2,319,515 |
3,159,938 | 2,319,515 |
- 10 -
- Notes to Quarterly Consolidated Financial Statements
(Notes on premise of going concern) Not applicable.
(Notes on significant changes in shareholders' equity) Not applicable.
- 11 -
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M&A Capital Partners Co. Ltd. published this content on 14 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 August 2020 07:02:19 UTC