Investment Bridge Announces Investment Opinion: Bridge Report on NOVARESE Issued: FY12/12 Earnings Weaker Than Expected, Estimates Call for Strong Growth in Sales, Profits in FY12/13 NOTE TO EDITORS: The following is an investment opinion issued by Investment Bridge Business Wire TOKYO -- April 04, 2013 Investment Bridge, one of Japan's leading IR services companies, has released a "Bridge Report" on NOVARESE, Inc. (TOKYO:2128) reviewing its earnings performance in the earnings results for fiscal year December 2012 and estimates for fiscal year December 2013. Report Highlights *Sales rose by 6.6% year-over-year, but current profit declined by 7.7% year-over-year during fiscal year December 2012 due to pricing competition caused by weak consumer sentiment and expenses arising from newly opened facilities. *Earnings estimates for fiscal year December 2013 call for sales and current profit to rise by 8.9% and 13.9% year-over-year respectively owing to an increase in orders for weddings and contributions from newly opened facilities. *The Bridge Report calls attention to NOVARESE's efforts to offer a wide range of unique products and services designed to match the diversified needs of customers and the contributions from opening of new facilities. NOVARESE is one of Japan's leading wedding production and related services providers and it pursues a corporate philosophy of providing entertaining and unique experiences to its customers in its main businesses of wedding ceremony production, wedding clothing, and hotels and restaurants operations. NOVARESE targets Japanese in the latter half of their 20s to 30s and provides them with simply designed and modern weddings that are highly unique, which in turn allows NOVARESE to achieve high levels of profitability. Despite an 8.8% decline in wedding orders outstanding at the term start, sales rose by 6.6% year-over-year to JPY11.753 billion during fiscal year December 2012 due to NOVARESE's efforts to cultivate demand for general parties and parties after wedding, and the contribution from weddings held at facilities newly opened in the previous term. Stagnant growth accompanying difficulties in cultivating sales at existing facilities compounded by the concentration of new facilities openings during the second half and associated increases in anticipatory expenses caused operating profit margin to deteriorate by 1.5% point and operating profit to fall by 6.6% year-over-year to JPY1.178 billion. Net profit fell by a larger margin of 28.5% year-over-year due in part to impairment accounting losses of JPY150 million arising from the closure of unprofitable facilities. Fiscal year December 2013 estimates call for sales to rise by 8.9% year-over-year to JPY12.8 billion due in part to a 10.2% year-over-year growth in orders outstanding at the start of the term, the full scale launch of operations at "TENJIN MONOLITH" and "JAMES-TEI" wedding facilities opened during the second half, and the opening of another two facilities expected during the coming term. Operating profit is expected to rise by JPY172 million or 14.6% year-over-year to JPY1.350 billion. To view the full report, please go to the website at the URL listed below. http://www.bridge-salon.jp/report_bridge/archives/eng/2128/20130403.html 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. Contact: Investment Bridge Co., Ltd. Kaoru Hosaka for NOVARESE, Inc. +81-3-5842-5765 (Japanese correspondence only) email@example.com (English and Japanese correspondence)
Investment Bridge Announces Investment Opinion: Bridge Report on NOVARESE Issued: FY12/12 Earnings Weaker Than Expected,
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