Home > Investor Relations > Financials and Operating Performance > Financial Reports > Consolidated First Quarter Earnings Report for the Year Ending March 2005 (FY2004)

Investor Relations

Financial Reports

Consolidated First Quarter Earnings Report for the Year Ending March 2005 (FY2004)

Aug. 05, 2004

 
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

1st quarter FY2004
million yen %

15,042

-
million yen %

1,844

-
million yen %

1,679

-
million yen %

1,024

-
(ref.) FY 2003
58,265 4.1
5,935 14.9
3,557 14.3
2,261 (10.1)

Net income per share Diluted Net income per share
1st quarter FY2004
yen

10.31
yen

-
(ref.) FY 2003
22.24
-

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
%

21.6
21.1
yen

305.00
302.64

(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

1,721
8,132
million yen

201
(5,322)
million yen

(4,218)
(4,697)
million yen

5,701
7,834
[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
1st quarter FY2004
million yen
13,515
million yen
1,549
million yen
1,778
(ref.) FY 2003
51,817
4,291
3,355

Net income Net income per share Total assets
1st quarter FY2004
million yen
1,080
yen
10.88
million yen
91,185
(ref.) FY 2003
1,834
17.94
93,134

Shareholders' equity Shareholders'
equity ratio
Shareholders'
equity per share
1st quarter FY2004
million yen
23,794
%
26.1
yen
239.63
(ref.) FY 2003
23,568
25.3
236.84
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
Interim
Full year
million yen
29,200
58,000
million yen
3,200
6,700
million yen
2,500
5,000
million yen
1,400
3,000
yen
14.10
30.21
Non-consolidated
Net sales
Operating income Ordinary income Net income Net income per share
Interim
Full year
million yen
25,800
51,300
million yen
2,600
4,900
million yen
2,600
4,800
million yen
1,500
2,800
yen
15.11
28.20

[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)
10.1
89.9
76.9
0.4
12.6
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)
11.0
89.0
76.5
0.4
12.1
Total assets
140,073
100.0
142,676
100.0
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
26.0
52.5

39,874
3,104
3,000
29,495
944
281
3,050
72,826
1,500
61,021
1,727

638
7,940
28.0
51.0

Total liabilities
109,893
78.5
112,700
79.0
Minority interests
Minority Interests
(105)
(0.1)
(125)
(0.1)
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
30,285
21.6
30,101
21.1
Total Iliabilities, minority interests and shareholders' equity

140,073

100.0

142,676

100.0
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 %
Net Sales
Cost of Sales
15,042
11,884
100.0
79.0
58,265
47,368
100.0
81.3
Gross profit
3,158
21.0
10,897
18.7
Selling, general and administrative expenses

1,314

8.7

4,962

8.5
Operating income
1,844
12.3
5,935
10.2
Non-operating income
Non-operating expenses
520
685
3.5
4.6
539
2,917
0.9
5.0
Ordinary income
1,679
11.2
3,557
6.1
Extraordinary gains
Extraordinary losses
34
32
0.2
0.2
1,323
1,179
2.3
2.0
Income before income taxes
1,681
11.2
3,701
6.4
Income tax, inhabitants tax
and enterprise tax

642

4.3

1,507

2.6
Minority interests in income (loss)
of consolidated subsidiaries

15

0.1

(67)

(0.1)
Net income
1,024
6.8
2,261
3.9
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
4,086
3,939
Increase
Increase due to disposition of
treasury stock
-

-
147

147
Balance, end of period
4,086
4,086
Retained earnings
Balance, beginning of period
14,453
12,840
Increase
Net income
1,024
1,024
2,261
2,261
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
845
794
50


1


-
648
648
604


1


3
Balance, end of period
14,632
14,453
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)
Amount
Amount
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)
3,185
157
(659)
(962)
1,721
(4,285)
4,752
(22)
(244)
201
3,940
(5,220)
1,360
(1,503)
-
1,000
(3,000)
-
(1)
(794)
(4,218)
59
(2,237)
7,834
104
5,701
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)
(4,697)
(198)
(2,085)
9,909
10
7,834
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
6,041

(340)


-
5,585

(370)


2,619
Cash and cash equivalents at the end of the period

5,701

7,834
Note: Amounts rounded to nearest million yen.
 
 
Page Top
IR News
Management Policy
Financials and Operating Performance
Financial Highlights
Consolidated Financial Reports
Balance Sheet and Income Statement
IR Library
Ratings and Bonds
Contact Us