Initial Losses at New Facilities and Dependence on Subsidy Income
First written in FY2020. 7 of 13 entries say "Restated". Latest entry: FY2026.
Smile Holdings moved to the "Worse" side of this theme in 2023.
0 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「As part of its future growth strategy, the Group plans to open new facilities, primarily unlicensed childcare facilities and postpartum care services launched in June 2026, and the following characteristics affect its financial results.」
The explanation of initial losses at new facilities and their linkage to subsidy income has been expanded to include postpartum care services launched in June 2026, in addition to unlicensed childcare facilities. - FY2025-H1RestatedAnnual report
「During the interim consolidated accounting period, there were no new occurrences of major risks that management recognizes could materially affect the financial position, operating results or cash flows of the consolidated companies among the matters concerning business conditions and financial matters described in this interim report, nor any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
The Company states that there have been no significant changes in the risk of initial losses at new facilities and reliance on subsidy income. - FY2024MaterialisedAnnual report
「Although a decrease in the number of newly opened facilities and other factors improves operating income, subsidy income (non-operating income) decreases.」
The number of new openings declined from 3 facilities in the previous fiscal year to 1 facility in the current fiscal year, with subsidy income decreasing by ¥319 million, reflecting the revenue fluctuations linked to initial losses at new facilities and subsidy income. - FY2024-Q3MaterialisedAnnual report
「As the number of newly opened licensed childcare facilities declined (1 facility in the current third-quarter cumulative consolidated period versus 3 facilities in the same period of the previous year), [the amount] decreased by ¥319 million year on year to ¥151 million, down 50.0% year on year, and」
The decline in subsidy income associated with fewer new facility openings continues to materialize as a 50.0% year-on-year decrease in ordinary income. - FY2024-Q2MaterialisedAnnual report
「As the number of newly opened licensed childcare facilities declined (1 facility in the current second-quarter cumulative consolidated period versus 3 facilities in the same period of the previous year), [the amount] decreased by ¥319 million year on year to ¥56 million, down 77.2% year on year, and」
The decline in subsidy income associated with fewer new facility openings continues to materialize as a significant decrease in ordinary income. - FY2024-Q1MaterialisedAnnual report
「Subsidy income recorded in non-operating income declined by ¥273 million from the same quarter of the previous year with the decrease in the number of licensed childcare centers opened, from 2 in the same quarter of the previous year to 1 in the first quarter, resulting in an ordinary loss of ¥20 million, compared with ordinary profit of ¥147 million in the same quarter of the previous year,」
The decline in subsidy income associated with fewer new facility openings materialized as a shift from ordinary income to an ordinary loss. - FY2023-Q3RestatedAnnual report
「During the first nine months of the current consolidated fiscal year, there were no material changes in the major risks that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the consolidated companies, among the matters relating to the business and accounting matters described in the quarterly report, or in the "Business and Other Risks" described in the securities report for the previous fiscal year.」
The Company states that there have been no significant changes in the risk of initial losses at new facilities and reliance on subsidy income. - FY2023-Q2RestatedAnnual report
「During the cumulative second quarter of the current consolidated fiscal year, there were no material changes in the occurrence of major risks that management recognizes could materially affect the financial position, operating performance or cash flows of the consolidated companies, among the matters concerning the business and accounting conditions described in the quarterly report, or in the business and other risks described in the annual securities report for the previous fiscal year.」
The Company states that there have been no significant changes in the risk of initial losses at new facilities and reliance on subsidy income. - FY2023-Q1RestatedAnnual report
「During the first three months of the current consolidated fiscal year, there were no material changes in the major risks that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the consolidated companies, among the matters relating to the business and accounting matters described in the quarterly report, or in the "Business and Other Risks" described in the securities report for the previous fiscal year.」
The Company states that there have been no significant changes in the risk of initial losses at new facilities and reliance on subsidy income. - FY2022RestatedAnnual report
「Facilities may report operating losses for several years from the first year of opening, but tend to improve each year as the children advance through the age groups and generally become profitable on a full-year basis in approximately the third year.」
The Company continues to explain the revenue structure in which new facilities incur initial losses that improve as the children advance through the age groups. - FY2022-Q3RestatedAnnual report
「During the first nine months of the current consolidated fiscal year, there were no material changes in the major risks that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the consolidated companies, among the matters relating to the business and accounting matters described in the quarterly report, or in the "Business and Other Risks" described in the securities report for the previous fiscal year.」
The Company states that there have been no significant changes in the risk of initial losses at new facilities and reliance on subsidy income. - FY2021RestatedAnnual report
「Facilities may report operating losses for several years from the first year of opening, but tend to improve each year as the children advance through the age groups and generally become profitable on a full-year basis in approximately the third year.」
The Company continues to explain the revenue structure in which new facilities incur initial losses that improve as the children advance through the age groups. - FY2020First statedAnnual report
「Facilities may report operating losses for several years from the first year of opening, but tend to improve each year as the children advance through the age groups.」
The Company explains a revenue structure in which operating expenses precede revenue when new facilities open, while subsidy income is recorded as non-operating income, resulting in quarterly earnings fluctuations associated with April openings.