JVC 2004 Annual Report Download - page 37

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Annual Report 2004 35.
The company’s operating results for fiscal 2004 were in
line with initial projections. Taking this into account and
JVC’s goal of returning profits to shareholders in a sustain-
able and stable manner, the company has decided to pay a
year-end dividend of ¥5.0 per share.
LIQUIDITY AND SOURCES OF FUNDS
Assets, Liabilities and Capital
Total assets as of March 31, 2004 totaled ¥507.1 billion,
an increase of 5.7%, or ¥27.4 billion, compared to the
end of the previous fiscal year. This rise was mainly the
result of increases in cash and time deposits and inventories.
Total current assets rose 7.8%, or ¥27.7 billion, to
¥383.8 billion, primarily reflecting a 16.8%, or ¥18.7
billion, increase in inventories to ¥129.9 billion.
Investments and advances rose 78.7%, or ¥7.4 billion,
to ¥16.7 billion, chiefly due to the marking of investment
securities to market values.
Property, plant and equipment was 9.4%, or ¥9.3
billion, lower than the previous fiscal year-end, at ¥89.6
billion. This was mainly attributable to the sale of land and
other fixed assets.
¥2.8 billion, prior period patent royalty of ¥2.7 billion, and
other, net expenses of ¥2.3 billion. These items significantly
outweighed interest and dividend income of ¥0.7 billion,
gain on sales of investment securities of ¥0.3 billion, and a
substantial decline in loss from write-down of investment
in securities.
Income Before Income Taxes and
Minority Interests
Income before income taxes and minority interests increased
40.2%, or ¥4.0 billion, to ¥14.1 billion, due to improved
operating income and other factors.
Income Taxes
Income taxes decreased ¥5.5 billion, to negative ¥1.9
billion, representing an effective tax rate of negative
13.7%. The decline in income taxes was chiefly the result
of a lower tax rate used to calculate deferred tax assets.
Net Income
Net income increased 146.4%, or ¥9.3 billion, to ¥15.6
billion, as benefits from changes to tax-effect accounting
outweighed other expenses such as restructuring charges.
Consequently, net income per share increased from ¥24.9
in the previous fiscal year, to ¥61.1, while ROE rose from
4.3%, to 9.8% in the year under review.