Initial Losses and Funding Burden Associated with Opening New Facilities
First written in FY2016. 4 of 8 entries say "Materialised", first in FY2017-Q2. Latest entry: FY2025.
Cedar. moved to the "Worse" side of this theme in 2016.
1 other company's latest entry also says "Restated".
- FY2025RestatedAnnual report
「New facilities remain loss-making until they attract sufficient users or residents and their operations get on track. If multiple day-service centres or paid nursing homes are opened at the same time, performance may temporarily deteriorate.」
The company continues to describe the funding burden, fixed-cost burden, and risk of initial losses associated with opening new facilities. - FY2024RestatedAnnual report
「New facilities remain loss-making until they attract sufficient users or residents and their operations get on track. If multiple day-service centres or paid nursing homes are opened at the same time, performance may temporarily deteriorate.」
The company continues to identify the substantial funding burden, fixed-cost burden, and risk of initial losses associated with new facilities. - FY2023RestatedAnnual report
「New facilities remain loss-making until they attract sufficient users or residents and their operations get on track. If multiple day-service centres or paid nursing homes are opened at the same time, performance may temporarily deteriorate.」
The company continues to identify the substantial funding burden, fixed-cost burden, and risk of initial losses associated with opening new facilities. - FY2019MaterialisedAnnual report
「Cost of sales increased mainly because of initial expenses for opening new facilities, higher personnel costs due to additional care staff hired as the number of residents at paid nursing homes increased, and higher fees paid to resident referral agencies to promote occupancy.」
The company states that initial expenses for opening new facilities actually arose as a factor increasing full-year cost of sales. - FY2017MaterialisedAnnual report
「Cost of sales increased due to initial expenses for opening new facilities, additional care staff hired as the number of residents at paid nursing homes increased, higher recruitment expenses and personnel costs as the economy showed signs of recovery, and higher fees paid to resident referral agencies to promote occupancy.」
Initial expenses for opening new facilities actually arose as a factor increasing cost of sales for the fiscal year, with the initial burden becoming evident over the full year. - FY2017-Q3MaterialisedAnnual report
「In terms of profit, costs increased substantially, mainly due to higher recruitment expenses and personnel costs accompanying the economic recovery, as well as initial expenses for newly opened facilities.」
Initial expenses for newly opened facilities continued to arise as a factor increasing costs. - FY2017-Q2MaterialisedAnnual report
「In terms of profit, costs increased substantially, mainly due to higher recruitment expenses and personnel costs accompanying the economic recovery, as well as initial expenses for newly opened facilities.」
Initial expenses for newly opened facilities actually increased costs. This indicates that the initial cost burden associated with new openings materialised, but does not state that individual facilities were loss-making. - FY2016First statedAnnual report
「Opening day-service centres and paid nursing homes entails a substantial funding burden because these facilities are larger than facilities providing home-visit care services. In addition, day-service centres and paid nursing homes have significant fixed costs, including personnel expenses, so newly opened facilities remain loss-making until they attract sufficient users or residents and their operations get on track,」
The company identifies as a risk the possibility that losses will continue until new facilities attract users and residents, given the substantial investment and fixed costs required to open them.