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Impress Holdings, Inc. Announces Revisions to Results Forecasts
Tokyo, May 9, 2006 - Impress Holdings, Inc. (TSE: 9479), announced today that, in light of recent performance trends and other factors, the Company has made the following revisions to its consolidated and parent results forecasts for fiscal 2005 (April 1, 2005 - March 31, 2006) announced on November 8, 2005. The Company also hereby announces its results forecasts for fiscal 2006 (April 1, 2006 - March 31, 2007).
1. Revised Results Forecasts for Fiscal 2005 (April 1, 2005 - March 31, 2006)
| (1) |
Revised Consolidated Results Forecast for Fiscal 2005 |
| |
(Unit: million yen)
|
Net sales |
Ordinary
income |
Net income |
Previous forecast (A) |
15,500 |
800 |
450 |
Revised forecast (B) |
15,997 |
1,006 |
509 |
Increase (decrease) (B) - (A) |
497 |
206 |
59 |
Increase (decrease) (%) |
3.2% |
25.8% |
13.1% |
(Reference)
Previous year (fiscal 2004) |
10,623 |
350 |
308 |
(Reference: Forecast of net income per share (full-year): \1,346.70
|
| (2) |
Revised Parent Results Forecast for Fiscal 2005 |
| |
(Unit: million yen)
|
Net sales |
Ordinary
income |
Net income |
Previous forecast (A) |
950 |
30 |
300 |
Revised forecast (B) |
935 |
21 |
313 |
Increase (decrease) (B) - (A) |
(15) |
(9) |
13 |
Increase (decrease) (%) |
(1.6%) |
(30.0) |
4.3% |
(Reference)
Previous year (fiscal 2004) |
2,929 |
(54) |
346 |
(Reference: Forecast of net income per share (full-year): \827.09
|
| (3) |
Reasons for the Revisions
Risks for the fourth quarter that were identified at the time of the third quarter results announcement included returns of the major seasonal product Mooks for New Yearfs cards and delays under the plan for new printed publications, but the impact that materialized from these risks was less than anticipated. In addition, both printed publication sales and Internet advertising sales were solid, and as a result we have revised our forecasts for net sales and ordinary income.
Furthermore, in terms of consolidated results, an extraordinary loss emerged with the recording of a \79 million equities valuation loss recorded as part of a review of the assets of certain affiliates. On the other hand, an extraordinary gain was recorded from the sale of equity holdings, and as a result the net effect on results for the year was negligible. Similarly, in terms of parent results, an extraordinary loss was recorded from the booking of an \83 million valuation loss on shares of subsidiaries, but an extraordinary gain was also recorded from the sale of equity holdings, and as a result the net effect on results for the year was negligible. |
2. Results Forecasts for Fiscal 2006 (April 1, 2006 - March 31, 2007)
| (1) |
Consolidated Results Forecast for Fiscal 2006 |
| |
(Unit: million yen)
|
Net sales |
Ordinary
income |
Net income |
Fiscal 2005 forecast (A) |
15,997 |
1,006 |
509 |
Fiscal 2006 forecast (B) |
17,000 |
700 |
550 |
Increase (decrease) (B) - (A) |
1,003 |
(306) |
41 |
Increase (decrease) (%) |
6.3% |
(30.4%) |
8.1% |
|
| (2) |
Parent Results Forecast for Fiscal 2006 |
| |
(Unit: million yen)
| |
Net sales |
Ordinary
income |
Net income |
Fiscal 2005 forecast (A) |
935 |
21 |
313 |
Fiscal 2006 forecast (B) |
950 |
(200) |
350 |
Increase (decrease) (B) - (A) |
15 |
(221) |
37 |
Increase (decrease) (%) |
1.6% |
-- |
11.8% |
|
| |
Fiscal 2005 results came in above the initial forecast on strong sales at existing segments in the Print Media business and on the contribution from the newly added medical segment. Nevertheless, we expect the business environment for the printing industry to remain difficult going forward. Against this background, Impress plans to make aggressive investments during fiscal 2006 in order to establish a firm foundation for medium and long-term growth.
(Major Items)
Impress intends to strengthen its earnings structure by developing new digital services in each of the Companyfs areas of specialization and pursuing a business model that crosses beyond individual media. With regard to the development of new businesses and services, capital and operational tie-ups with content service providers in Japan and overseas and with operators of superior media platforms are being explored, and we will proactively pursue these areas.
Specifically, we intend to enhance our content services business in the area of information technology for corporations and businesspeople, develop new services and enhance our technological development capabilities in the IT news service business, and in the Chinese market, to build a distribution platform for the mobile, electronic book business.
Based on these initiatives, we are forecasting a 6.3% increase in consolidated net sales to \17,000 million in fiscal 2006. At the same time, however, we intend to make aggressive investments for medium-term business growth including the hiring of personnel including new college graduates, the development of new services, the construction of new business systems, and in mergers and acquisitions. As a result of these investments, we are forecasting a 30.4% decline in consolidated ordinary income to \700 million. On the other hand, with extraordinary gains expected from the sale of equity holdings, we are forecasting an 8.1% increase in consolidated net income to \550 million.
In terms of parent results, sales are derived from areas including dividend receipts, management fee payments, and management infrastructure usage fees from subsidiaries. We are forecasting \950 million in net sales for the full year, but with increased costs from new business development an ordinary loss of \200 million is anticipated. On the other hand, we are forecasting net income in the amount of \350 million from extraordinary gains from the sale of equity holdings and corporate tax payments from subsidiaries for the payment of consolidated taxes. |
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