Depreciation Expense Burden from Expanding and Replacing the Rental-Car Fleet
First written in FY2018-Q1. 2 of 4 entries say "Restated". Latest entry: FY2019-Q1.
The whole theme swung hardest in 2020: 7 of 19 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- FY2019-Q1MitigatedAnnual report
「In the Rental Car segment, revenue and profit increased as operations at stores newly opened in the previous consolidated fiscal year and existing stores remained firm.」
Regarding the slight decline in profit due to the depreciation burden associated with fleet additions and vehicle replacement, which had been disclosed through the previous quarter, the disclosure states that revenue and profit increased in the current first quarter. - FY2018-Q3RestatedAnnual report
「In the Rental Car segment, revenue increased as operations at stores newly opened in the previous consolidated fiscal year and existing stores remained firm. However, profit declined slightly despite higher revenue due to increased depreciation expenses associated with adding rental vehicles for new store openings and proactively replacing vehicles to improve customer satisfaction.」
The disclosure states that the depreciation burden associated with new store openings, additions to the vehicle fleet and proactive vehicle replacement continued to be a factor behind a slight decline in profit. - FY2018-Q2RestatedAnnual report
「In the Rental Car segment, revenue increased as operations at stores newly opened in the previous consolidated fiscal year and existing stores remained firm. However, profit declined slightly despite higher revenue due to increased depreciation expenses associated with adding rental vehicles for new store openings and proactively replacing vehicles to improve customer satisfaction.」
The disclosure states that the depreciation burden associated with new store openings, additions to the vehicle fleet and proactive vehicle replacement continued to be a factor behind a slight decline in profit. - FY2018-Q1First statedAnnual report
「Operating revenue was unable to fully absorb the increase in depreciation expense resulting from additions to the rental vehicle fleet associated with new store openings and proactive vehicle replacement to improve customer satisfaction, resulting in a slight decline in profit.」
The increase in depreciation expense associated with the expansion of rental car stores and vehicle replacement could not be absorbed by operating revenue and actually became a factor behind a slight decline in profit, and is described as a new risk and earnings burden.