Leopalace21 Records Strong First Half Earnings, Estimates for Full Year Earnings Call for Strong Gains in Sales and Operating

  Leopalace21 Records Strong First Half Earnings, Estimates for Full Year
  Earnings Call for Strong Gains in Sales and Operating Income

Business Wire

TOKYO -- November 7, 2013

Leopalace21 Corporation (TOKYO:8848), a company that conducts construction,
leasing, and sales of apartments, condominiums, and residential housing,
announced strong earnings results for the first half of the fiscal year March
2014, with sales and operating income rising by 5.3% and 183.0% year-over-year
to JPY231.6 and JPY5.3 billion respectively. Recurring and net incomes also
recorded strong gains improving from losses of JPY1.7 and JPY2.2 billion
during the previous first half to profits of JPY4.3 and JPY3.9 billion
respectively during the current first half. This strong performance is
attributed to the efforts to maximize earnings through strengthening the
competitiveness of its various products and services, coupled with the easing
of monetary policies, weakening of the yen, strong stock market, and
subsequent recovery in consumer confidence within Japan.

By business segments, gains in sales were recorded by all of the Company’s
business segments including the leasing, construction, hotels and resort,
elderly care and other businesses. At the same time, a large increase in
operating income of JPY2.0 billion from the previous first half to JPY6.2
billion was recorded in the main leasing business, and a large improvement of
JPY1.5 billion from the loss of JPY0.59 billion in the previous first half to
a profit of JPY0.97 billion was recorded in the construction business.

In the second year of its new midterm business plan during the current term,
Leopalace21 remains focused upon raising the competitive standing of its
various products and services as a means of maximizing its earnings. Based
upon the various measures called for by this business plan and given the
strong earnings performance during the first half, Leopalace21 has left its
outstanding earnings estimates unchanged. Consequently, sales, and operating
and recurring incomes are expected to rise by 2.9%, 90.2%, and 10.0%
year-over-year respectively to JPY467.4, JPY14.1, and JPY12.2 billion
respectively, while net income is expected to decline by 17.5% year-over-year
to JPY11.0 billion in the full fiscal year March 2014.


Leopalace21 Corporation     1H FY3/13  1H FY3/14  yy chg  FY3/14E  yy chg
(8848)
Sales                        219,997     231,673     5.3%     467,400   2.9%
Operating Income             1,897       5,369       183.0%   14,100    90.2%
Margin                       0.9%        2.3%        na       3.0%      na
Recurring Income             -1,744      4,375       -        12,200    10.0%
Net Income                   -2,258      3,921       -        11,000    -17.5%
Earnings Per Share           -13.15      18.53       na       51.99     na
Dividend Per Share          0.00       0.00       na      0.00     na
(Units: Million Yen, EPS and Dividend in Yen, E=estimates)


About Leopalace21 Corporation

Leopalace21 Corporation was established in August 1973 and conducts
construction, leasing, and sales of apartments, condominiums, and residential
housing, in addition to development and operation of resort facilities, and
the operation of hotel business, broadband business, and elderly care
business. The Company was first listed on the JASDAQ Market in February 1989,
and moved its shares to the First Section of the Tokyo Stock Exchange in March
2004. Its headquarters are currently located in Tokyo.

Contact:

Kaoru Hosaka for Leopalace21 Corporation
Investment Bridge Co., Ltd.
+81-3-5842-5765 (Japanese correspondence only)
leopalace21@cyber-ir.co.jp (English and Japanese correspondence)
 
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