Bridge Report on Kyoritsu Maintenance Issued: First Half FY3/13 Earnings

Investment Bridge, one of Japan's leading IR services companies, has released a
“Bridge Report” on Kyoritsu Maintenance Co., Ltd. (TOKYO First Section: 
9616) reviewing first half FY3/13 earnings results and full FY3/13 earnings
Report Highlights 
* During the first half FY3/13, sales and ordinary income rose by 8.0% and 18.5%
year-over-year respectively. 
* Kyoritsu has left its full year earnings estimates unchanged, and calls for
sales and ordinary income to grow by 9.7% and 5.4% year-over-year respectively. 
* Efforts to raise customer satisfaction through employee training, and
increases in brand recognition have been successful in the establishment of a
solid earnings structure of the hotel business.   
Kyoritsu Maintenance is Japan's leading provider of dormitory services to
students and employees, including consigned management of corporate dormitories
and other facilities.  The Company also operates a chain of business and resort
hotels throughout Japan and expands this business into Korea and other overseas
markets.  In addition, Kyoritsu also conducts contracted services (office and
residential building management), food services (restaurant and cafeteria
operations and consigned facility management), and construction (development and
construction of primarily dormitories and hotels) businesses. 
Total sales rose by 8.0% year-over-year to JPY47.333 billion on the back of
16.4% and 1.7% year-over-year increases in the hotel and other business
segments' sales to JPY19.7 and JPY12.2 billion respectively, and despite a
decline in dormitory business sales of 0.4% to JPY19.9 billion due to increases
in the number of residents moving into dormitories earlier than normal in March.
 While sales were slightly lower than estimates, operating income exceeded
initial estimates of JPY3.38 billion by rising 8.1% year-over-year to JPY3.65
billion on the back of strong increases in hotel business segment operating
income of 62.2% year-over-year, which helped to offset a 7.8% year-over-year
decline in dormitory business segment operating income. 
Despite the stronger than expected first half earnings, Kyoritsu decided to
leave its outstanding estimates unchanged, and calls for sales and operating
income to rise by 9.7% and 1.9% year-over-year to JPY100.0 and JPY6.13 billion
respectively.  The contribution from newly opened facilities will lead to growth
in sales of both the dormitory and hotel business, and the PKP business and
others are also expected to record higher sales.  Increases in public utility
expenses due to price hikes, strategic advertising to establish the Kyoritsu
Maintenance brand, and higher system depreciation expenses are factors behind
the relatively low growth expected for operating income.  Furthermore, while
first half operating income exceeded estimates by JPY273 million, these
increases over estimates will be used for front loaded refurbishment of
facilities in the hotel business.  
To view the full report, please go to the website at the URL listed below. 
About Bridge Report:
Bridge Report is produced by Investment Bridge Co., Ltd. and provides accurate
and objective information about the earnings, business strategies, and other
information of publicly traded Japanese companies.   
Investment Bridge Co., Ltd. 
Contributed via: Bloomberg Publisher WEB Service 
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