Performance fluctuations from initial operating losses associated with opening new facilities and subsidy income
First written in FY2017. 9 of 12 entries say "Restated". Latest entry: FY2025.
2 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「Operating income (loss): Because the capacity for children aged 3 to 5 and other age groups may not always be fully occupied when a facility opens, it may incur an operating loss from its first year through several subsequent years, although performance tends to improve each year as children advance to higher age groups.」
The Company continues to explain the structure of earnings volatility arising from initial operating losses at new facilities, subsidy income, and facility opening preparation costs. - FY2024Update on subsidy income following the resumption of new facility openingsAnnual report
「For childcare facilities newly opened during the consolidated fiscal year, the Company recorded ¥62 million in subsidy income as non-operating income and ¥3 million in facility opening preparation costs as non-operating expenses.」
No new childcare facilities were opened in the previous fiscal year, and subsidy income was zero, whereas the current fiscal year included ¥62 million in subsidy income and ¥3 million in facility opening preparation costs. - FY2023Change in earnings volatility factors due to zero new facility openingsAnnual report
「The decreases in non-operating income and non-operating expenses were attributable to the absence of subsidy income associated with openings and opening preparation costs, as no new nursery schools were opened during the fiscal year.」
While the Company explains the structure of initial operating losses at new facilities and the concentration of subsidy income in the third quarter, no new facilities were opened in FY2023, and no subsidy income or facility opening preparation costs were recorded. - FY2022RestatedAnnual report
「Operating income (loss): Because the capacity for children aged 3 to 5 and other age groups may not always be fully occupied when a facility opens, it may incur an operating loss from its first year through several subsequent years, although performance tends to improve each year as children advance to higher age groups.」
The Company continues to explain the structure of earnings volatility arising from initial operating losses at new facilities, subsidy income, and facility opening preparation costs. - FY2022-Q3RestatedAnnual report
「If a local government subsidy is granted for part of the funding for a new facility, such as interior construction, it is recorded as subsidy income under non-operating income. Since new nursery schools and other childcare facilities opened by the Group are concentrated in April, a substantial amount of subsidy income tends to be recorded in the third quarter (April to June). During the third quarter of the current fiscal year, the Group proceeded with new openings and recorded subsidy income of ¥642 million.」
The Company continues to state that subsidy income associated with opening new facilities is concentrated in the third quarter, causing earnings volatility. - FY2021RestatedAnnual report
「Operating income (loss): Because the capacity for children aged 3 to 5 and other age groups may not always be fully occupied when a facility opens, it may incur an operating loss from its first year through several subsequent years, although performance tends to improve each year as children advance to higher age groups.」
The Company continues to explain the structure of earnings volatility arising from initial operating losses at new facilities, subsidy income, and facility opening preparation costs. - FY2021-Q3RestatedAnnual report
「If a local government subsidy is granted for part of the funding for a new facility, such as interior construction, it is recorded as subsidy income under non-operating income. Since new nursery schools and other childcare facilities opened by the Group are concentrated in April, a substantial amount of subsidy income tends to be recorded in the third quarter (April to June). During the third quarter of the current fiscal year, the Group also recorded a substantial amount of subsidy income as it proceeded with new openings.」
The Company continues to state that subsidy income associated with opening new facilities is concentrated in the third quarter, causing earnings volatility. - FY2020-Q3RestatedAnnual report
「If a local government subsidy is granted for part of the funding for a new facility, such as interior construction, it is recorded as subsidy income under non-operating income. Since new nursery schools and other childcare facilities opened by the Group are concentrated in April, a substantial amount of subsidy income tends to be recorded in the third quarter (April to June). During the third quarter of the current fiscal year, the Group also recorded a substantial amount of subsidy income as it proceeded with new openings.」
The Company continues to state that the concentration of subsidy income associated with opening new facilities in the third quarter is a factor causing earnings volatility. - FY2019RestatedAnnual report
「Operating income (loss): Because the capacity for children aged 3 to 5 and other age groups may not always be fully occupied when a facility opens, it may incur an operating loss from its first year through several subsequent years, although performance tends to improve each year as children advance to higher age groups.」
The Company continues to explain the structure of earnings volatility arising from initial operating losses at new facilities, subsidy income, and facility opening preparation costs. - FY2019-Q3RestatedAnnual report
「If a local government subsidy is granted for part of the funding for a new facility, such as interior construction, it is recorded as subsidy income under non-operating income. Since new nursery schools and other childcare facilities opened by the Group are concentrated in April, a substantial amount of subsidy income tends to be recorded in the third quarter (April to June). During the third quarter of the current fiscal year, the Group also recorded a substantial amount of subsidy income as it proceeded with new openings.」
The Company continues to explain that subsidy income associated with opening new facilities is concentrated in the third quarter, causing earnings volatility. - FY2018RestatedAnnual report
「Operating income (loss): Because the capacity for children aged 3 to 5 and other age groups may not always be fully occupied when a facility opens, it may incur an operating loss from its first year through several subsequent years, although performance tends to improve each year as children advance to higher age groups.」
The annual report also explains the structure of earnings volatility arising from initial operating losses at new facilities, subsidy income, and facility opening preparation costs. - FY2017First statedAnnual report
「Operating income (loss): Because the capacity for children aged 3 to 5 and other age groups may not always be fully occupied when a facility opens, it may incur an operating loss from its first year through several subsequent years, although performance tends to improve each year as children advance to higher age groups. Non-operating income: If a local government provides subsidies for part of the costs of opening a new facility, such as interior construction costs, the subsidies are recorded as “subsidy income” under non-operating income.」
While new facilities may incur operating losses for several years from the first year, the Company separately explains the structure in which subsidy income is recorded as non-operating income as a factor causing earnings volatility. Operating income rose from a loss of ¥268 million in the fiscal year ended September 2014 to ¥407 million in the fiscal year ended September 2017.