H.I.S. Reports Record Results for the Seventh Consecutive Half; Sales Up 13.9%, Operating Income Up 9.6%, Net Income Up 16.6%.Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. , Japan, June June: see month. 22, 2007 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - H.I.S. Co., Ltd. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). 1: 9603), a leading travel and airline ticket agency, has announced record results for the seventh straight half, ended April 30, 2007. As the Group actively sought to increase share in the industry, consolidated 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 for the period improved 13.9% to JPY JPY In currencies, this is the abbreviation for the Japanese Yen. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 168,621 million, 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. increased 9.6% to JPY 2,942 million and net sales rose 16.6% to JPY 2,030 million. The Japan National Tourist Organization The Japan National Tourist Organization (国際観光振興機構 Kokusai Kankō Shinkō Kikō) or JNTO provides information about Japan to promote travel to and in the country. (JNTO JNTO Japan National Tourist Organization ) estimated the number of Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and departing de·part v. de·part·ed, de·part·ing, de·parts v.intr. 1. To go away; leave. 2. To die. 3. the country from November November: see month. 2006 through April 2007 rose only very slightly by 0.6% on the previous year. However, amid these conditions, the H.I.S. Group continued to engage in active marketing to its key client segments - individuals, young people, and seasoned overseas travelers - to secure steady travel demand for the Groups travel business. "In line with its strategy, the Group continued aggressively promoting key points in its business plan this term, resulting in a 5.9% increase in H.I.S. travel passengers on the previous year," said Yoshio Suzuki Suzuki ever faithful to her mistress, especially in sorrow. [Ital. Opera: Puccini, Madama Butterfly, Westerman, 358] See : Loyalty , President of H.I.S. "We have worked to put the infrastructure in place which responds in a more finely-tuned fashion to the increasingly diverse purposes of travel for each and all of our clients, stepped up earlier customer attraction through earlier promotions, and inreased unit prices per customer by around 4.5%, despite fuel surcharges, through higher grade product offerings." The Group continued to make improvements in travel accessory accessory, in criminal law, a person who, though not present at the commission of a crime, becomes a participator in the crime either before or after the fact of commission. products such as hotel and rental car reservations and insurance sales for arranged travel, while continuing to improve on our strengths in price competitiveness and consulting capabilities even further. Regional flagship branches for the Travel Wonderland Wonderland See also Heaven, Paradise, Utopia. Annwn land of joy and beauty without disease or death. [Welsh Lit.: Mabinogion] Atlantis fabulous and prosperous island; legendarily in Atlantic Ocean. [Gk. Myth. Shinjuku sales branch and the Travel Wonderland Nagoya sales branch were renovated, adding specialty sections. Such marketing measures resulted in a 13.9% increase in interim sales for the Travel Business to JPY 167,580 million and a 9.1% increase in operating income to JPY 3,995 million. The strong Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. economy continued to boost the hotel business and the hotels on both the Gold Coast and in Brisbane continued to maintain high occupancy rates Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) , leading to strong sales. We also set the goal of improving service even more and made investments in training targeted at adding more employees and training. These measures resulted in a 19.7% increase in interim sales for the Hotel Business to JPY 1,057 million and an 13.9% decrease in operating income to JPY 140 million. 1. Consolidated Financial Results for the First Half Ended April 30, 2007
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(millions of yen)
First Half ended April 30, FY Oct. 31,
2007 % 2006 % 2006
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Net Sales 168,621 13.9 148,020 12.9 328,980
Operating Income 2,942 9.6 2,685 45.5 7,235
Ordinary Income 3,347 12.6 2,973 23.8 8,082
Net Income 2,030 16.6 1,741 (32.3) 4,867
Net Income/Share (y) 60.82 52.17 145.79
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Consolidated Financial Position
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As of April 30, FY Oct. 31,
2007 2006 2006
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Total Assets 96,344 87,458 92,520
Net Assets 46,301 43,075 44,149
Shlders' Eqty Ratio (%) 47.6 49.3 47.3
Shlders' Eqty/share (y) 1,374.93 1,290.24 1,311.29
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Consolidated Cash Flows
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(millions of yen)
First Half ended April 30, FY Oct. 31,
2007 2006 2006
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Cash Flow from
Operating Activities 1,511 1,006 9,610
Cash Flow from
Investing Activities (583) (2,820) (5,370)
Cash Flow from
Financing Activities (671) (721) (732)
Cash and Cash Equivalents
at Period End 37,139 30,468 36,515
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2. Financial Position 1) Assets, Liabilities, and Net Assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. Total assets as of the end of the interim consolidated fiscal period increased by JPY 3.823 million from the end of the previous consolidated fiscal year to JPY 96,344 million. This resulted mainly from an increase in trade accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , which rose by JPY 1,963 million over the end of the previous fiscal year, and an increase in short term loans, which increased by JPY 1,881 million over the end of the fiscal year. Liabilities as of the end of the current consolidated interim period rose JPY 1,672 million compared with the end of the previous consolidated fiscal year to JPY 50,042 million. This resulted mainly from an increase of JPY 5,008 million in trade accounts payable, a decline of JPY 1,085 million in unpaid corporate and other taxes, and a decline in trip prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. of JPY 1,958 million from the end of the previous fiscal year. Net assets as of the end of the current consolidated interim fiscal period increased by JPY 2,151 million over the end of the previous consolidated fiscal year to JPY 46,301 million. This resulted mainly from JPY 2,030 million in interim net income booked. 2) Consolidated Cash Flows The balance of cash and cash equivalents as of the end of the current consolidated interim period rose by JPY 624 million over the end of the previous consolidated fiscal period to JPY 37,139 million. Cash inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. from operating activities was JPY 1,511 million, cash outflow from investment activities was JPY 583 million, and cash outflow from financing activities was JPY 671 million. Cash flow from operating activities Cash inflow from operating activities for the current consolidated interim fiscal period was JPY 1,511 million. The primary factors behind the increase were the booking of JPY 3,330 million in interim net income before taxes and other adjustments and an increase of JPY 4,683 million in trade accounts payable. This increase in trade accounts payable includes JPY 3,549 million in trade accounts payable that were paid in the next month since the settlement date for the end of the current consolidated interim fiscal period fell on a bank holiday. The main factors responsible for decreases were an increase in trade accounts receivable (representing an outflow of JPY 1,729 million), a decrease in trip prepayments (an outflow of JPY 1,994 million), and payment of corporate and other taxes (an outflow of JPY 2,361 million). The cash inflow from operating activities for the previous consolidated interim fiscal period was JPY 1,006 million. The main reasons for this were the booking of JPY 2,967 million in interim net income before taxes and other adjustments, an increase of JPY 2,215 million in trade accounts payable, and an increase in trade accounts receivable, which represented an outflow of JPY 3,059 million. Cash inflow from operating activities for the current consolidated interim period therefore rose by JPY 505 million compared with the previous consolidated interim period. Cash flow from investing activities Cash Flow From Investing Activities An item on the cash flow statement that reports the aggregate change in a company's cash position resulting from any gains (or losses) from investments in the financial markets and operating subsidiaries, and changes resulting from amounts spent Cash outflow from investment activities for the current consolidated interim period was JPY 583 million. The main reason for cash inflow was the redemption of JPY 2,000 million worth of corporate debt by Sanko Soflan Co., Inc. The main reasons for cash outflow were the acquisition of securities for investment purposes (an outflow of JPY 742 million) and a loan to Kyushu Industrial Transportation Holdings Co., Ltd. an affiliated company (an outflow of JPY 2,000 million). Cash outflow for investment activities for the previous consolidated interim period was JPY 2,820 million. This was mainly due to the acquisition of land and buildings for the commencement of business for Hotel Watermark watermark: see paper. See digital watermark. in Brisbane (an outflow of JPY 1,268 million), and an investment in Kyushu Industrial Transportation Holdings Co., Ltd. (an outflow of JPY 733 million). Cash flow from investment activities for the current consolidated interim period therefore improved by JPY 2,237 million compared with the previous consolidated interim period. Cash flow from financing activities Cash Flow from Financing Activities A category in the cash flow statement that accounts for external activities such as issuing cash dividends, adding or changing loans, or issuing and selling more stock. Cash outflow from financing activities for the current consolidated interim period was JPY 671 million, primarily due to payment of dividends for the company (an outflow of JPY 667 million). Cash outflow for financing activities for the previous consolidated interim period was JPY 721 million. This resulted primarily from the payment of dividends for the company (an outflow of JPY 584 million) and repayment of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. at a subsidiary (an outflow of JPY 55 million). Cash outflow from financing activities for the current consolidated interim period therefore rose by JPY 50 million compared with the previous consolidated interim period. 3. Forecasts for the Full Year While the trend in oil prices, fluctuation Fluctuation A price or interest rate change. in exchange rates, and other factors persist as sources of concern for the travel business, personal consumption has risen and the employment market has improved with improving corporate profits. We therefore project a gradual rise in demand for overseas travel. In particular, we expect demand to rise among families and young female office workers for travel to the beaches and for travel to Europe as summer, the best season, approaches. Further rise in demand for corporate travel bookings to China and various Asian cities is also projected. The H.I.S. Group will continue to focus on the concept of free travel and on improving brand recognition for the various products amid this environment in order to encourage greater demand for overseas travel in general. We will improve our ability to provide seats as we also create products to respond to the ever greater diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. of customer needs and will further expand our marketing power through the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and call centers. We will also strive to improve our consulting capabilities so that we will be able to provide our customers with optimal travel plans. - The Group has put a support structure in place for arranged travel which includes not only the price appeal of the airline ticket, but also the ability to feel safe in the locale (programming) locale - A geopolitical place or area, especially in the context of configuring an operating system or application program with its character sets, date and time formats, currency formats etc. Locales are significant for internationalisation and localisation. when traveling and intend to secure a lead position in the market by combining the unique value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. offered by our group to appeal to customers. - We will strive to offer of full range of high value-added products using luxury hotels and to improve our capabilities in arranging travel, in addition to introducing products with price appeal such as our core product, the package tour, Ciao for group travel tours. We will also work to respond to individual needs through product planning Product Planning is the ongoing process of identifying and articulating market requirements that define a product’s feature set. See also
- We plan to improve our product line-up for regions such as China that are projected to experience an increase in travelers as well as work to attract senior and affluent customers, segments for which growth is projected, for our Impresso escorted tour to Europe and other locales. - The Group continues to see Internet business and group/corporate sales as important markets and intends to expand sales to these segments, where the most growth is expected. The Internet business is particularly important from the perspective of a channel for marketing and communication as well, so we will further improve this business. To be specific, we will work on improving the overall convenience of our home page by strengthening the online reservations site for airline tickets, hotels, and optional tours; developing a community through the use of a blog blog, short for web log, an online, regularly updated journal or newsletter that is readily accessible to the general public by virtue of being posted on a website. ; and transmitting transmitting, v to send and receive information, signals, and so on; allows a therapist to perceive a client's physical, emotional, and spiritual states. travel videos, among other things. The H.I.S. Group intends to build a stable business base for the hotel business by working to ensure profitability through maintaining a high occupancy ratio for the two hotels in Australia currently in operation.
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(millions of yen)
Forecast Fiscal Year ending October 31, 2007
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Net Sales 374,000 13.7%
Operating Income 8,250 14.0%
Ordinary Income 9,200 13.8%
Net Income 5,400 10.9%
Net Income/Share (y) 161.76
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4. Dividends The intent of the Company's dividend policy is to enable the continuous, stable payment of dividends to shareholders. Company dividend policy includes a provision for the payment of an interim dividend. However, as there is a trend for the proportion of sales, etc. recorded in the second half of the year to be relatively higher, in order to reflect results in dividends fairly the Company is planning at present to make a dividend payment in respect of the full year of 20.00 yen per share. Please access the full H.I.S. Consolidated and Non-sonsolidated financial reports at the Company IR website: http://www.his-j.com/company/ir_e_zaimu.htm Source: JCN http://www.japancorp.net Contact: H.I.S. Co., Ltd. Manabu Shimizu Corporate Planning Division Tel. +81-3-5908-6029 Fax +81-3-5908-2423 tp-shimizu@his-world.co.jp Japan Corporate News Network. All rights reserved. |
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