Amway Japan Announces Solid Fiscal 1995 First-Quarter Performance; Builds Upon Record Gains of 1994.TOKYO--(BUSINESS WIRE)--January 17, 1995--Amway Japan Limited (NYSE NYSE See: New York Stock Exchange : AJL AJL Association of Jewish Libraries ) today announced consolidated financial results for the first quarter of fiscal 1995, ended November 30, 1994, that built upon the record gains achieved by the Company in fiscal 1994. First-quarter net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight reached 42.7 billion yen ($431.0 million), a 13.9 percent rise over the first quarter of fiscal 1994. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. grew 14.8 percent, to 12.3 billion yen ($124.4 million), while net income totaled 5.6 billion yen ($56.9 million), a 6.9 percent increase from the first quarter of fiscal 1994. Operating Results Amid continuing strong demand for new and established products, Amway Japan posted gains in net sales and net income. An increase in sales of Personal Care products led this growth. Houseware sales also climbed, as new cookware products performed well and sales of the Amway Water Treatment System, including replacement lamps and filters, continued strong. President Richard S Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a . Johnson attributed the Company's performance to a number of factors: "Our network of distributors is increasingly productive and committed, our lineup of high-quality products is expanding, and we continue to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. changes in the Japanese market and workforce." Cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold in the first quarter was 11.7 billion yen ($118.1 million), resulting in a gross margin of 72.6 percent, an increase from 71.3 percent recorded in the first quarter of the previous fiscal year. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. amounted to 18.7 billion yen ($188.5 million), a 16.8 percent rise that is primarily attributable to an increase in distributor incentives and a variety of selling and administrative expenses. The growth in net income was slower than that of operating income primarily because of a reduced level of other income, caused by lower interest rates and reduced cash balances. Enhancing Future Growth During the first quarter, Amway Japan took a number of steps to enhance growth in fiscal 1995 and beyond. It continued to manage its product lines by introducing women's hosiery hosiery Knit or woven coverings for the feet and legs, worn inside shoes. In the 8th century BC, Hesiod referred to linings for shoes; the Romans wrapped their feet, ankles, and legs in long strips of leather or woven cloth. into the Amway World Plaza segment of its Personal Care line, by strengthening its skin-care lineup, and by offering an extension to the Queen Cookware line. At the same time, it discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: some items that did not meet performance expectations. Several targeted- marketing pilot projects that draw on distributor segmentation data were also launched during the period. These projects should enable Amway Japan to effectively align its product introductions with consumer preferences. The Company furthermore established a Customer Services Division and modified its distributor registration system to increase understanding of its sponsoring procedures among new distributors and boost overall efficiency. Soon after the close of the first quarter, Amway Japan staged its 15th anniversary national convention in Tokyo's largest event arena, the Tokyo Dome Tokyo Dome (東京ドーム Tōkyō Dōmu . The convention was attended by 84,000 distributors and featured speeches by former U.S. President George Bush and by Amway Corporation president, Richard M. DeVos, Jr. "Apart from its role in further strengthening our distributor partnership," Mr. Johnson noted, "the convention marked the official introduction of Triple X, our new food supplement that will be available in January 1995." Based on enthusiasm from distributors, the Company is anticipating strong sales of Triple X through the fiscal year. Corporate Developments At a meeting of the Board of Directors held today, Richard M. DeVos, Jr. and Stephen A. Van Andel were appointed Chairman and Vice Chairman, respectively. Mr. DeVos, President of Amway Corporation, and Mr. Van Andel, Chairman of the Executive Committee of Amway Corporation, were previously elected directors at the Company's November 1994 shareholders' meeting shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. . Mr. DeVos, commenting on his new position at Amway Japan, said, "I look forward to working closely with the Amway Japan board and management team in furthering the Company's vibrant, growing business. My appointment, together with Mr. Van Andel's, demonstrate our families' view of the importance of Amway Japan and our commitment to this Company in which we hold a significant ownership interest." Amway Japan also announced today that its Board of Directors approved the acquisition of real estate in Tokyo for the construction of a new headquarters building. Total capital cost for the project is estimated to be between 27.5 billion yen ($277.8 million) and 32.5 billion yen ($328.3 million). The Company is in the final stages of negotiation for the purchase of the land and expects to complete the purchase by February 1995. Zoning and other approvals will delay commencement of construction for a number of months. "This acquisition will increase operating efficiency since we will be able to unify our offices under a single roof," commented Mr. Johnson. "It also clearly demonstrates our long-term commitment to the Japanese market and to our distributors." Amway Japan Limited is the exclusive distribution vehicle in Japan for Amway Corporation. A direct selling Direct selling is the marketing of products or services to consumers through sales tactics including presentations, demonstrations, and phone calls. It is sometimes also considered to be a sale that does not utilize a "middle man" such as a retail outlets, distributors or brokers. company, Amway Japan distributes approximately 125 consumer products through a nationwide network of more than 896,000 renewed distributors (distributors who have renewed within fiscal 1994). With total shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of 79.2 billion yen, its fiscal 1994 net sales were 157.6 billion yen and net income was 20.6 billion yen. Amway Japan is registered on the Tokyo OTC market Noun 1. OTC market - a stock exchange where securities transactions are made via telephone and computer rather than on the floor of an exchange over-the-counter market (securities code: 9821) and its ADSs (each representing one-half of one share of common stock) are listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. (ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors : AJL) and quoted on SEAQ SEAQ See: Stock Exchange Automated Quotation System International. -0- Selected Financial Data Amway Japan Limited and subsidiary
Yen in millions, except per share & ADS data
Three months ended
November 30
1993 1994 Percent
Change
Statements of Income
Net sales 37,466 42,665 +13.9 Total costs and expenses 26,740 30,352 +13.5 Operating income 10,726 12,313 +14.8 Other income (net) 733 198 -73.0 Income before income taxes 11,459 12,511 +9.2 Income taxes 6,190 6,881 +11.2 Net income 5,269 5,630 +6.9 Amounts per share: Net income per common share 35.21 37.63 +6.9 Net income per ADS 17.60 18.81 +6.9
August 31, November 30, Percent
1994 1994 Change
Balance Sheets Assets: Total current assets 106,216 98,187 -7.6 Net property and equipment 2,519 2,563 +1.7 Total investments and 7,800 7,993 +2.5 other assets Total assets 116,535 108,743 -6.7 Liabilities and Shareholders' Equity: Total current liabilities 37,364 36,384 -2.6 Total shareholders' equity 79,171 72,359 -8.6 Total liabilities and shareholders' equity 116,535 108,743 -6.7
Note: All figures in this release have been prepared in accordance
with Japanese accounting principles and have been rounded up or down,
as appropriate.
CONTACT: Japan U.S. Amway Japan Limited Gavin Anderson & Company IR Officer David Jackson David Jackson is the name of several notable men:
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