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September 26, 2003
Plaza Create Co., Ltd
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Notification Concerning
Revision of Forecast of Results for the Fiscal Year Ending
March 2004 (Consolidated and Non-Consolidated)
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Plaza Create Co., Ltd. has revised its forecast of results for
the fiscal year ending March 2004 (April 1, 2003-March 31, 2004),
which the Company previously released with its Summary Statement
of Settlement of Accounts (Consolidated) for the Fiscal Year
Ended March 31, 2003 and Summary Statement of Settlement of
Accounts (Non-Consolidated) for the Fiscal Year Ended March
31, 2003 dated May 26, 2003, and its Notification of Extraordinary
Gain dated June 23, 2003. The revisions are summarized below. |
1. Revised Forecast of Consolidated Interim Results for the Fiscal
Year
Ending March 2004 (April 1, 2003-September 30, 2003)
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Revenues
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Ordinary income
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Net income (loss)
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Previously released forecast
(A)
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11,200
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550
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100
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Current revised forecast (B)
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10,000
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200
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-250
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Change (B - A)
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-1,200
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-350
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-350
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Percentage change
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-10.7%
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-63.6%
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-
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(Reference)
Consolidated interim results for the prior fiscal year |
13,391
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236
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-738
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2. Revised Forecast of Non-Consolidated Interim Results for the Fiscal Year Ending March 2004 (April 1, 2003-September 30, 2003)
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Revenues
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Ordinary income(loss)
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Net income (loss)
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Previously released forecast
(A)
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7,200
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100
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250
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Current revised forecast
(B)
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6,300
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-150
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-150
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Change (B - A)
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-900
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-250
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-400
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Percentage change
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-12.5%
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-
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-
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(Reference)
Non-consolidated interim results for the prior fiscal year
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7,246
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9
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-1,672
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3. Revised Forecast of Consolidated Results
for the Fiscal Year Ending March 2004 (April 1, 2003-March 31, 2004)
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Revenues
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Ordinary income
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Net income
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Previously released forecast
(A)
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24,100
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1,450
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300
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Current revised forecast
(B)
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22,200
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1,200
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50
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Change (B - A)
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-1,900
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-250
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-250
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Percentage change
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-7.9%
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-17.2%
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-83.3%
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(Reference)
Consolidated results for the prior fiscal year |
27,281 |
564
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-1,049
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4. Revised Forecast of Non-Consolidated Results for the Fiscal Year Ending March 2004 (April 1, 2003- March 31, 2004)
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Revenues
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Ordinary income
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Net income
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Previously released forecast
(A)
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15,000
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300
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400
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Current revised forecast
(B)
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14,000
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100
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50
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Change (B - A)
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-1,000
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-200
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-350
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Percentage change
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-6.7%
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-66.7%
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-87.5%
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(Reference)
Non-consolidated results for the prior fiscal year
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-15,288
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57
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-2,145
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5. Reasons for Revision
(1) Revision of forecast interim results (consolidated
and non-consolidated)
Although non-consolidated revenues at Palette
Plaza chain stores had shown some weakness since the beginning
of the fiscal year because of unseasonable weather and a decline
in the number of Japanese traveling overseas, forecasted results
are expected to fall below the interim period plan level because
the summer season, which is normally a period of peak photograph
demand, was also negatively affected by an abnormally long rainy
season and unusually cool weather. The Company also revised
its forecast for ordinary income because of lower earnings accompanying
the drop in revenues.
Net income for the fiscal
year is forecast to decline to the revised figures shown as
a result of the lower earnings accompanying the drop in revenues,
an additional loss resulting from the sale of the consolidated
subsidiary CyberGraphics Corporation, valuation losses on stocks
owned and a loss on retirement of fixed assets.
In addition to these reasons
for the revision of non-consolidated results, the Company has
revised its forecast numbers for consolidated operating results
to reflect the fact that CyberGraphics Corporation will be excluded
from subsidiaries subject to consolidation as of the date of
its sale in August 2003. |
(2) Revision of forecast of results for the fiscal
year (consolidated and non-consolidated)
| The Company has revised its forecast of results
for the fiscal year to reflect the revised forecast of results
for the interim period. |
(Reference)
| Although earnings results for the Company's Palette Plaza business during the first half of the fiscal year were weak as described above, the Company is steadily pursuing its digital strategy. The number of shops that have introduced the chain's completely digital mini-lab machine rose to 623 shops as of the end of August 2003, further strengthening the Company's position as Japan's largest digital photo chain. Over a two-month period during July and August, nearly all of the 1,140 shops in the nationwide Palette Plaza chain completed replacement of their digital compound terminal PDS (Palette Plaza Digital Station) with the latest model PDS II. During the latter half of the fiscal year, we will aggressively promote Palette Plaza by focusing on digital services targeting the autumn photograph demand period and the New Year's photographic card season at year-end. |
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