| Company name: |
Iino Kaiun Kaisha, Ltd. |
| Shares listed on: |
Tokyo, Osaka, Nagoya, Fukuoka and Sapporo Stock Exchanges |
| Security code number: |
9119 |
| URL: |
http://www.iino.co.jp |
| Representative: |
Katsuyuki Sugimoto, President |
| Contact: |
Kazuo Kawahara, Executive Officer, Head of Finance and Accounting Group |
| Telephone: |
+81-3-3506-3180 | |
1. Notes Related to the Preparation of This Report
| (1) |
Use of simplified accounting method: Used
Partially used in recording income tax and other taxes |
| (2) |
Change in accounting policies from the last accounting period: None |
| (3) |
Change in the scope of consolidation and application of equity method: Yes |
| Consolidated subsidiaries: |
Newly included 1
Newly excluded None |
| Affiliated companies accounted for by equity method |
Newly included None
Newly excluded None |
| (4) |
Involvement of CPA or auditing firm : None | |
| 2. Consolidated Operating Results and Financial Position for the First Quarter of Fiscal Year 2004 (from April 1, 2004 to June 30, 2004) |
| (1) Operating Results |
(Amounts rounded to the nearest million yen except per share amounts)
| |
Net sales
|
Operating income |
Ordinary income |
Net income |
|
|
|
|
|
|
| (ref.) FY 2003 |
|
|
|
| |
| |
Net income per share |
Diluted Net income per share |
|
|
|
|
| (ref.) FY 2003 |
|
- | |
Notes:
|
(1) |
The percentage figures shown in net sales, operating income, ordinary income, and net income represent year-on-year changes. |
| |
(2) |
Since this is the first year for the company to announce its quarterly results, year-on-year comparisons are not shown in this report. | |
[Review of Operating Results]
In Japan, capital expenditure continued to increase and employment conditions have been seen improving supported by the recovery in corporate earnings, which in turn has been driven mainly by brisk exports. Overseas, the U.S. economy remained strong although signs of slowdown began to emerge. China is also expected to maintain its growth momentum despite the tightening of monetary policy that was introduced to lead the overheated economy to a soft landing. Southeast Asian countries continued strong growth while the degree of economic recovery varied among the European economies. Thus, the world economy as a whole remained strong.
Against the backdrop of the foregoing economic environment, cargo volume increased in the shipping industry. The bulk carrier market remained firm although it turned weaker as compared to the latter half of the previous year. Supply-demand balance for the chemical tanker market has tightened due to favorable freight volume to Asia while trade volume between the U.S. and Europe tended to decline.
Since the Group operates primarily based on long-term contracts that are less sensitive to changes in the shipping market, impact of the changes in market conditions have been minimal. The Group earnings expanded reflecting favorable market conditions for bulk carriers and chemical tankers.
In the real estate market, construction of large-scale buildings has peaked last fall. Vacancy rates and rent levels have bottomed out, and the market started showing signs of recovery. For the Group, instances of rent renewals at a lower rent has been decreasing. As a result of the foregoing, the Group's operating performance for the first quarter ended June 30, 2004 remained favorable allowing us to forecast a full year performance that exceeds our projection as earlier announced.
|
| (2) Financial Position |
| |
Total assets
|
Shareholders' equity |
Shareholders'
equity ratio |
Shareholders'
equity per share |
| |
| 1st quarter FY2004 |
| (ref.) FY 2003 | |
| million yen |
140,073 |
| 142,676 | |
| million yen |
30,285 |
| 30,101 | |
|
| |
(Cash Flow)
| |
Cash flows from operating activities
|
Cash flows from investing activities |
Cash flows from financing activities |
Cash and cash equivalents at end of year |
| |
| 1st quarter FY2004 |
| (ref.) FY 2003 | |
|
|
| million yen |
(4,218) |
| (4,697) | |
| | |
| [Review of Change in Financial Position]
"Cash flow from operating activities" for the first quarter ended June 30, 2004 amounted to 1.721 billion yen. This was mainly due to pre-tax profit of 1.681 billion yen, 1.446 billion yen in depreciation expenses and 962 million yen in taxes paid.
"Cash flow from investing activities" turned to a deficit of 201 million yen. This was mainly due to the payment of 4.285 billion yen for purchase of vessels and revenue of 4.752 billion yen from sale of vessels.
"Cash flow from financing activities" was negative 4.218 billion yen. This was a net result mainly of 8.220 billion yen payment for the redemption of corporate bonds and repayment of short-term loans, scheduled installment payments of long-term borrowings totaling 1.503 billion yen, 794 million yen payment of dividends, and proceeds from short- and long-term borrowings and bond issuance that totaled 6.300 billion yen. As a result of the foregoing, the balance at the end of the first quarter ended June 30, 2004 for cash and cash equivalents was 5.701 billion yen.
|
[Reference]
Non-consolidated Operating Results and Financial Position for the First Quarter of Fiscal 2004 (from April 1, 2004 to June 30, 2004)
| |
Net sales |
Operating income |
Ordinary income |
|
|
|
|
|
|
|
|
|
| |
| |
Net income |
Net income per share |
Total assets |
|
|
|
|
|
|
|
|
|
| |
| |
Shareholders' equity |
Shareholders'
equity ratio |
Shareholders'
equity per share |
|
|
|
|
|
|
|
|
|
| | Note: Amounts rounded to the nearest million yen except per share amounts. |
3. Forecast of Consolidated Earnings for the Year Ending March 31, 2005
(from April 1, 2004 to March 31, 2005) |
Consolidated
| |
Net sales
|
Operating income |
Ordinary income |
Net income |
Net income per share |
|
|
| million yen |
| 29,200 |
| 58,000 | |
|
|
|
| | |
Non-consolidated
| |
Net sales
|
Operating income |
Ordinary income |
Net income |
Net income per share |
|
|
| million yen |
| 25,800 |
| 51,300 | |
|
|
|
| | |
|
[Forecast of Earnings for the Year Ending March 2005 (from April 1, 2004 to March 31, 2005)]
The first quarter performance was stronger than our original forecast as a result of the overall firmness in bulk carrier and chemical tanker markets, and weakening of yen's exchange rate against U.S. dollars relative to our original forecast of 105 yen. For the coming quarters, there are no major factors that are likely to cause shipping and real estate markets, the two markets having strong impact on the Company's performance, to weaken. We therefore revise upward our consolidated and non-consolidated projections for net sales, operating profits, ordinary profits and net income as stated above.
Our exchange rate assumption remains unchanged at 105 yen/dollar for the second quarter and thereafter. |
| Consolidated Financial Statements |
| (1) Consolidated Balance Sheets |
(in million yen)
| |
First quarter FY2004 |
Consolidated
B/S for FY2003 |
| Amount |
% |
Amount |
% |
| Assets |
 Current assets |
| Cash and cash equivalents |
| Notes and accounts receivable |
| Inventories |
| Other |
| Allowance for doubtful accounts |
| Fixed assets |
| Tangible fixed assets |
| Vessels |
| Buildings and structures |
| Land |
| Construction in progress |
| Other |
| Intangible fixed assets |
| Telephone subscription rights |
| Investments and other assets |
| Investment securities |
| Other |
| Allowance for doubtful accounts | |
| |
| 14,137 |
| 6,041 |
| 3,357 |
| 1,353 |
| 3,393 |
| (7) |
| 125,936 |
| 107,670 |
| 57,662 |
| 9,515 |
| 39,101 |
| 1,112 |
| 280 |
| 613 |
| 613 |
| 17,653 |
| 12,169 |
| 5,608 |
| (124) | |
|
| |
| 15,684 |
| 5,585 |
| 3,795 |
| 1,265 |
| 5,051 |
| (12) |
| 126,992 |
| 109,070 |
| 58,118 |
| 9,717 |
| 39,105 |
| 1,832 |
| 298 |
| 629 |
| 629 |
| 17,293 |
| 12,211 |
| 5,206 |
| (124) | |
|
|
|
|
|
|
| |
| Note: Amounts rounded to nearest million yen. | |
(in million yen)
| |
First quarter FY2004 |
Consolidated
B/S for FY2003 |
| Amount |
% |
Amount |
% |
| Liabilities |
| Current liabilities |
| Accounts payable |
| Bonds due within one year |
| Short-term borrowings |
| Income taxes payable |
| Reserve for bonuses |
| Other |
| Fixed liabilities |
| Bonds |
| Long-term debt |
| Reserve for retirement benefits |
Reserve for retirement benefits
for officers |
| Other | |
| |
| 36,478 |
| 3,203 |
| - |
| 29,074 |
| 685 |
| 97 |
| 3,419 |
| 73.415 |
| 2,500 |
| 61,195 |
| 1,750 |
347 |
| 7,623 | |
|
| |
| 39,874 |
| 3,104 |
| 3,000 |
| 29,495 |
| 944 |
| 281 |
| 3,050 |
| 72,826 |
| 1,500 |
| 61,021 |
| 1,727 |
638 |
| 7,940 | |
|
|
|
|
|
|
|
| |
| Minority interests |
| Minority Interests | |
|
|
|
|
| Shareholders' equity |
| Common stock |
| Additional paid-in capital |
| Retained earnings |
Net unrealized gains/losses on
other securities |
| Treasury stock | |
| |
| 10,753 |
| 4,086 |
| 14,632 |
1,223 |
| (409) | |
|
| |
| 10,753 |
| 4,086 |
| 14,453 |
1,217 |
| (408) | |
|
| Total shareholders' equity | |
|
|
|
|
| Total Iliabilities, minority interests and shareholders' equity | |
|
|
|
| |
| Note: Amounts rounded to nearest million yen. | |
| (2) Consolidated Statements of Operations |
(in million yen)
| |
First quarter FY2004 (from April 1, 2004 to June 30, 2004) |
Consolidated P/L for FY2003 (from April 1, 2003 to June 30, 2003) |
| Amount |
% |
Amount |
% |
|
|
|
|
|
|
| Gross profit | |
|
|
|
|
| Selling, general and administrative expenses | |
|
|
|
|
| Operating income | |
|
|
|
|
| Non-operating income |
| Non-operating expenses | |
|
|
|
|
| Ordinary income | |
|
|
|
|
| Extraordinary gains |
| Extraordinary losses | |
|
|
|
|
| Income before income taxes | |
|
|
|
|
Income tax, inhabitants tax
and enterprise tax | |
|
|
|
|
Minority interests in income (loss)
of consolidated subsidiaries | |
|
|
|
|
| Net income | |
|
|
|
| |
| Note: Amounts rounded to nearest million yen. | |
| (3) Consolidated Statements of Retained Earnings |
(in million yen)
| |
First quarter FY2004 (from April 1, 2004 to June 30, 2004) |
Consolidated retained earnings FY2003 (from April 1, 2003 to June 30, 2003) |
| Amount |
Amount |
| Capital surplus |
| Balance, beginning of period | |
|
|
| Increase |
Increase due to disposition of
treasury stock | |
|
|
| Balance, end of period | |
|
|
| |
| Retained earnings |
| Balance, beginning of period | |
|
|
|
|
|
|
| Decrease |
| Dividends |
| Bonus paid to directors |
Decrease in retained earnings
from increase in number of
consolidated subsidiaries |
Decrease in retained earnings
from decrease in number of
consolidated subsidiaries | |
|
|
| Balance, end of period | |
|
| |
| Note: Amounts rounded to nearest million yen. | |
| (4) Consolidated Statements of Cash Flows |
(in million yen)
| |
| First quarter FY2004(from April 1, 2004 to June 30, 2004) | |
| Consolidated cash flow for FY2003(from April 1, 2003 to June 30, 2003) | |
|
|
|
| I |
Cash flows from operating |
| activities: |
| |
Income before income taxes |
| |
Depreciation |
| |
Interest and dividend income |
| |
Interest expenses |
| |
Losses on disposal of tangible |
| and intangible fixed assets |
| |
Loss on cancellation of interest |
| rate swaps |
| |
Increase in provision for |
| employees' severance and |
| retirement benefits |
| |
Increase in reserve for retirement |
| benefits for officers |
| |
Other | 
| |
|
Subtotal |
| |
Interest and dividends income |
| |
Interest paid |
| |
Income taxes paid |
| |
|
Net cash provided by |
| |
operating activities |
| |
|
| II |
Cash flows from investing |
| activities: |
| |
Purchase of tangible and |
| intangible fixed assets |
| |
Sale of tangible and intangible |
| fixed assets |
| |
Purchase of investment |
| securities |
| |
Other |
| |
|
Net cash used in investing |
| |
activities |
| |
|
| III |
Cash flows from financing |
| activities |
| |
Proceeds from short-term |
| borrowings |
| |
Repayments of short-term |
| borrowings |
| |
Proceeds from long-term debt |
| |
Repayments of long-term debt |
| |
Payments associated with |
| cancellation of interest |
| rate swaps |
| |
Proceeds of issue of bond |
| |
Redemption of bonds |
| |
Proceeds of treasury stocks |
| |
Payments for treasury stocks |
| |
Cash dividends paid |
| |
|
Net cash used in financing |
| |
activities |
| |
|
| IV |
Effect of exchange rate change |
| on cash and cash equivalents |
| V |
Increase (decrease) in cash |
| and cash equivalents |
| VI |
Cash and cash equivalents |
| at the beginning of the period |
| VII |
Increase in cash and cash |
| equivalents due to change |
| in scope of consolidation |
| VIII |
Cash and cash equivalents |
| at the end of the period |
| |
| |
| |
| |
| 1,681 |
| 1,446 |
| (145) |
| 659 |
| |
| (26) |
| |
| - |
| |
| |
| 23 |
| |
| (291) |
| (162) |
| |
| 1,721 |
| |
| |
| |
| |
| (4,285) |
| |
| 4,752 |
| |
| (22) |
| (244) |
| |
| 201 |
| |
| |
| |
| |
| 3,940 |
| |
| (5,220) |
| 1,360 |
| (1,503) |
| |
| |
| - |
| 1,000 |
| (3,000) |
| - |
| (1) |
| (794) |
|
| |
| |
| 3,701 |
| 6,195 |
| (211) |
| 2,374 |
| |
| (1,312) |
| |
| 704 |
| |
| |
| (26) |
| |
| 89 |
| (14) |
| 11,500 |
| 212 |
| (2,275) |
| (1,305) |
| |
| 8,132 |
| |
| |
| |
| |
| (24,227) |
| |
| 18,036 |
| |
| (996) |
| 1,865 |
| |
| (5,322) |
| |
| |
| |
| |
| 27,520 |
| |
| (13,555) |
| 9,643 |
| (26,736) |
| |
| |
| (704) |
| - |
| - |
| 1,028 |
| (1,289) |
| (604) |
| |
| Note: Reconciliation of the amounts of cash and cash equivalents at end of the year stated in Consolidated Statements of Cash Flows to the amounts of accounts stated in Consolidated Balance Sheets. | |
| Cash and cash equivalents |
| Time deposits with maturities exceeding three months |
| Short-term investments with maturities due in or less than three months | |
|
|
| Cash and cash equivalents at the end of the period | |
|
| |
| Note: Amounts rounded to nearest million yen. | |
