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Notice Concerning Extraordinary Losses and Impact on Prior-Year Results at a Subsidiary, and Revision of Fiscal 2009 Forecasts. |
| 2010/03/23 |
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LAWSON consolidated subsidiary LAWSON ENTERMEDIA INC. ("LEM") today announced revisions to its forecasts for the fiscal year ended February 28, 2010 (fiscal 2009), which were issued on January 5 this year, as a result of booking extraordinary losses. It also provided information regarding the impact on operating results for the fiscal year ended February 28, 2009 (fiscal 2008), as per the attached press release.
Please see the separate press release issued today titled "Notice Concerning Revision to LAWSON's Consolidated Forecasts and Impact on Prior-Year Consolidated Results" for details of revisions to LAWSON's consolidated forecasts for the fiscal year ended February 28, 2010 and the impact on consolidated operating results for the fiscal year ended February 28, 2009, as a result of this announcement. |
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| Notice Concerning Extraordinary Losses Caused by Former Company Directors, Impact on Prior-Year Operating Results and Revision of Fiscal 2009 Results and Year-end Dividend Forecasts 2010/03/23
LAWSON ENTERMEDIA INC. ("LEM") announced on February 9, 2010 that certain former LEM directors had misappropriated large sums of money to Plaisir Co., Ltd. ("Plaisir"), and released the estimated total losses resulting from this alleged misappropriation. For details, please see the press release titled "Discovery of Misconduct by Two Directors of LAWSON ENTERMEDIA."
The total losses from the misappropriation of money were estimated at up to 15.0 billion yen in the February 9 press release. However, as a result of an investigation conducted by LEM with the cooperation of outside legal counsel, certified public accountants and other advisers based on the findings of an investigation by an internal investigating committee, the total losses were quantified at approximately 14.4 billion yen. LEM has therefore announced that it will book extraordinary losses following the quantification of these losses, the impact on prior-year operating results, and revisions to its results and year-end dividend forecasts for the fiscal year ended February 28, 2010, as detailed below.
Due to the impact of this misappropriation, LEM may have been insolvent at the end of February 2010. LEM plans to submit a final report at the end of March or in early April following the completion of an ongoing investigation by a third party investigating committee.
1. Extraordinary Losses
As discussed above, the total losses resulting from the misappropriation of money has largely been quantified at approximately 14.4 billion yen. LEM has been working hard to recover the total losses, including petitioning for the commencement of bankruptcy proceedings against Plaisir. However, it has decided to book the full amount as extraordinary losses as there are no prospects for recovery. Of the extraordinary losses, approximately 1.9 billion yen will be recorded in the fiscal year ended February 28, 2009, resulting in an expected net loss for that fiscal year. The remaining losses of approximately 12.5 billion yen will be booked in the fiscal year ended February 28, 2010.
2. Impact on Prior-Year Results
LEM plans to correct its prior-year annual securities report, flash reports and other financial disclosures because the impact on financial statements included in the following financial disclosures due to the abovementioned booking of extraordinary losses affects quarterly reports. LEM will make a further announcement on the specific details of corrections as soon as they are determined based on an ongoing investigation.
1. Flash report on results and annual securities report for fiscal 2008, ended February 28, 2009
2. Flash report on results for the first quarter of fiscal 2009, ended February 28, 2010, and first-quarter report
3. Flash report on results for the first half of fiscal 2009, ended February 28, 2010, and first-half report
4. Flash report on results for the third quarter of fiscal 2009, ended February 28, 2010, and third-quarter report
3. Revision of Fiscal 2009 Full-Year Forecasts
LEM has revised its fiscal 2009 results forecasts announced in its flash report on non-consolidated results for the third quarter of fiscal 2009 on January 5, 2010, following the booking of extraordinary losses of approximately 12.5 billion yen in fiscal 2009 and the reversal of deferred tax assets of approximately 0.3 billion yen due to this.
(millions yen)
| |
Operating Revenue |
Operating Profit |
Recurring Profit |
Net Profit (Loss) |
Net Profit (Loss) per Share (yen) |
| Previous forecast (A) |
9,857 |
1,150 |
1,158 |
1,211 |
21,674.41 |
| Current estimate (B) |
9,857 |
1,150 |
1,158 |
(11,589) |
(207,346.31) |
| Change (B-A) |
－ |
－ |
－ |
(12,800) |
(229,020.72) |
| Change (%) |
－ |
－ |
－ |
(1,056.9) |
(1,056.6) |
4. Revision of Dividend Forecast
On February 22, 2010, LEM announced that it had yet to set the year-end dividend in a press release titled "Notice Concerning Revision of Dividend Forecast for Fiscal 2009" (Japanese only). However, due to the impact of the abovementioned revision to results forecasts, LEM has decided not to pay a year-end dividend.
| | Dividend per Share | | | 1Q end | 2Q end | 3Q end | Year-end | Total | Previous forecast
(Announced February 22, 2010) | - | - | - | Undetermined | Undetermined | | Current estimate | - | 3,000 yen | - | 0 yen | 3,000 yen | | Fiscal 2009 actual | - | 3,000 yen | - | | | | Fiscal 2008 (year ended February 28, 2009) actual | - | 1,500 yen | - | 1,500 yen | 3,000 yen | 5. Outlook
LEM is scheduled to release its flash report for the fiscal year ended February 28, 2010 on April 13.
The company will also announce other important matters as soon as they occur. |
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