Consolidated Financial Statements

Consolidated Balance Sheets

ASSETS	Millions of yen		Thousands of U.S. dollars (Note)
As of October 31, 2011 and 2010	2010	2011	2011
Current assets :
Cash	¥ 20,486	¥ 20,060	$ 258,006
Marketable securities	350	350	4,502
Notes and accounts receivable, trade	14,987	16,420	211,190
Merchandise inventories and products	606	621	7,987
Raw material and supplies	161	198	2,547
Deferred income taxes	361	384	4,939
Other current assets	1,810	2,310	29,710
Less : Allowance for doubtful accounts	(373)	(368)	(4,733)
Total current assets	38,388	39,975	514,148
Property and equipment :
Rental equipment	62,487	72,929	937,994
Buildings and structures	20,755	20,872	268,450
Machinery and equipment	6,470	6,555	84,309
Less : Accumulated depreciation	(55,060)	(60,394)	(776,772)
	34,652	39,962	513,981
Land	29,689	29,908	384,669
Total property and equipment	64,341	69,870	898,650
Investments and other assets :
Investment securities
-Unconsolidated subsidiaries and affiliates	117	190	2,444
-Others	2,651	3,012	38,740
Deferred income taxes	1,187	658	8,463
Other assets	2,652	2,147	27,613
Less : Allowance for doubtful accounts	(827)	(732)	(9,415)
Total investments and other assets	5,780	5,275	67,845
Total assets	¥ 108,509	¥ 115,120	$ 1,480,643

LIABILITIES AND NET ASSETS	Millions of yen		Thousands of U.S. dollars (Note)
As of October 31, 2011 and 2010	2010	2011	2011
Current liabilities :
Short-term bank loans	¥ 13,416	¥ 11,155	$ 143,473
Current portion of long-term debt	13,619	15,571	200,270
Current portion of lease obligations	860	1,087	13,981
Notes and accounts payable, trade	13,077	13,318	171,293
Accounts payable, other	1,519	1,880	24,180
Accrued income taxes	1,106	322	4,141
Accrued bonuses	589	531	6,829
Allowance for disaster losses	—	290	3,730
Other current liabilities	1,515	1,188	15,280
Total current liabilities	45,701	45,342	583,177
Non-current liabilities :
Long-term debt	21,842	29,650	381,350
Lease obligations	1,903	1,431	18,405
Account payable, other	436	664	8,540
Accrued pension and severance costs	1,341	37	476
Asset retirement obligations	—	147	1,891
Other liabilities	261	256	3,293
Total non-current liabilities	¥ 25,783	¥ 32,185	$ 413,955
Contingent liabilities
Net assets :
Shareholders' equity :
Common stock :
Authorized – 130,000,000 shares (2011/2010)
Issued – 32,872,241 shares (2011/2010)	¥ 9,697	¥ 9,697	$ 124,720
Capital surplus	10,961	10,961	140,977
Retained earnings	15,788	16,297	209,608
Treasury stock	(25)	(25)	(322)
Total shareholders’ equity	36,421	36,930	474,983
Accumulated other comprehensive income :
Net unrealized holding gain on other securities	147	199	2,560
Foreign currency translation adjustments	(41)	(43)	(553)
Total accumulated other comprehensive income	106	156	2,007
Minority interests	498	507	6,521
Total net assets	37,025	37,593	483,511
Total liabilities and net assets	¥ 108,509	¥ 115,120	$ 1,480,643

Note: U.S. dollar amounts have been translated from yen for convenience only, at the rate ¥77.75=US$1, the approximate exchange rate on October 31, 2011.

Consolidated Statements of Income

	Millions of yen		Thousands of U.S. dollars (Note)
Years ended October 31, 2011 and 2010	2010	2011	2011
Revenue
Rentals	¥ 47,659	¥ 50,806	$ 653,453
Sales	22,514	20,281	260,849
	70,173	71,087	914,302
Cost of sales
Rentals	33,257	34,154	439,280
Sales	16,598	16,477	211,923
	49,855	50,631	651,203
Gross profit	20,318	20,456	263,099
Selling, general and administrative expenses	17,669	17,550	225,723
Operating income	2,649	2,906	37,376
Other income (expenses) :
Interest and dividend income	58	62	797
Gain on termination of retirement benefit plan	—	1,465	18,842
Interest expenses	(765)	(793)	(10,199)
Loss on devaluation of investment securities	(28)	(135)	(1,736)
Impairment loss	—	(63)	(810)
Loss from disaster	—	(838)	(10,778)
Loss on adjustment for changes of
accounting standard for asset retirement obligations	—	(96)	(1,235)
Others, net	248	(62)	(797)
Income before income taxes and minority interests	2,162	2,446	31,460
Income taxes :
Current	1,171	862	11,087
Deferred	(17)	470	6,045
	1,154	1,332	17,132
Income before minority interests	1,008	1,114	14,328
Minority interests in subsidiaries	(34)	(52)	(669)
Net income	¥ 1,042	¥ 1,166	$ 14,997

	Yen		U.S. dollars (Note)
Years Ended October 31, 2011 and 2010	2010	2011	2011
Per share of common stock :
Net income
Basic	¥ 31.73	¥ 35.51	$ 0.46
Diluted	—	—	—
Cash dividends applicable to the year	¥ 20.00	¥ 20.00	$ 0.26

Note: U.S. dollar amounts have been translated from yen for convenience only, at the rate ¥77.75=US$1, the approximate exchange rate on October 31, 2011.

Consolidated Statements of Comprehensive Income

	Millions of yen		U.S. dollars (Note)
Years Ended October 31, 2011 and 2010	2010	2011	2011
Income before minority interests	—	¥ 1,114	$ 14,328
Other comprehensive income
Net unrealized holding (loss) gain on other securities	—	51	656
Foreign currency translation adjustments	—	(8)	(103)
Total other comprehensive income	—	43	553
Total comprehensive income	—	¥ 1,157	$ 14,881
Comprehensive income attributable to :
Shareholders of the parents	—	¥ 1,215	$ 15,627
Minority interests	—	(58)	(746)

Note: U.S. dollar amounts have been translated from yen for convenience only, at the rate ¥77.75=US$1, the approximate exchange rate on October 31, 2011.

Consolidated Statements of Shareholders' Equity
(November 1. 2010 - October 31, 2011)

		Millions of yen
		Shareholders' equity					Accumulated other comprehensive income
Years Ended October 31, 2011 and 2010	Thousands of shares of common stock	Common stock	Capital surplus	Retained earnings	Treasury stock	Total share- holders’ equity	Net unrealized holding gain (loss) on other securities	Foreign currency translation adjustments	Total accumu- lated other compre- hensive income	Minority interests	Total net assets
Balance at October 31, 2009	¥ 32,872	¥ 9,697	¥ 10,961	¥ 15,335	¥ (24)	¥ 35,969	¥ 235	—	¥ 235	¥ 338	¥ 36,542
Net income				1,042		1,042					1,042
Cash dividends				(657)		(657)					(657)
Change in scope of consolidation				68		68					68
Acquisition of treasury stock					(1)	(1)					(1)
Other							(88)	(41)	(129)	160	31
Balance at October 31, 2010	¥ 32,872	¥ 9,697	¥ 10,961	¥ 15,788	¥ (25)	¥ 36,421	¥ 147	¥ (41)	¥ 106	¥ 498	¥ 37,025
Net income				1,166		1,166					1,166
Cash dividends				(657)		(657)					(657)
Acquisition of treasury stock					(1)	(1)					(1)
Disposal of treasury stock			(0)		1	1					1
Other							52	(2)	50	9	59
Balance at October 31, 2011	¥ 32,872	¥ 9,697	¥ 10,961	¥ 16,297	¥ (25)	¥ 36,930	¥ 199	¥ (43)	¥ 156	¥ 507	¥ 37,593

	Thousands of U.S. dollars (Note)
	Shareholders' equity					Accumulated other comprehensive income
Year Ended October 31, 2011	Common stock	Capital surplus	Retained earnings	Treasury stock	Total share- holders’ equity	Net unrealized holding gain on other securities	Foreign currency translation adjustments	Total accumu- lated other compr- ehensive income	Minority interests	Total net assets
Balance at October 31, 2010	$ 124,720	$ 140,977	$ 203,061	$ (322)	$ 468,436	$ 1,891	$ (527)	$ 1,364	$ 6,405	$ 476,205
Net income			14,997		14,997					14,997
Cash dividends			(8,450)		(8,450)					(8,450)
Acquisition of treasury stock				(13)	(13)					(13)
Disposal of treasury stock		(0)		13	13					13
Other						669	(26)	643	116	759
Balance at October 31, 2011	$ 124,720	$ 140,977	$ 209,608	$ (322)	$ 474,983	$ 2,560	$ (553)	$ 2,007	$ 6,521	$ 483,511

Note: U.S. dollar amounts have been translated from yen for convenience only, at the rate ¥77.75=US$1, the approximate exchange rate on October 31, 2011.

Consolidated Statements of Cash Flows

	Millions of yen		Thousands of U.S. dollars (Note)
Years ended October 31, 2011 and 2010	2010	2011	2011
Cash flows from operating activities :
Income before income taxes and minority interests	¥ 2,162	¥ 2,446	$ 31,460
Adjustments for :
Depreciation expenses	7,767	8,835	113,633
Impairment loss	—	63	810
Loss on disposal or sales of property and equipment	94	121	1,556
Acquisition of rental equipment	(2,462)	(1,959)	(25,196)
Loss on devaluation of investment securities	28	135	1,736
(Gain) loss on sales of investments in securities	(153)	17	219
Provision for allowance for doubtful accounts	(220)	(95)	(1,222)
Provision for accrued pension and severance costs	21	(1,304)	(16,772)
Interest and dividend income	(58)	(62)	(797)
Interest expenses	944	976	12,553
Increase in trade receivables	(268)	(1,463)	(18,817)
Decrease (increase) in inventories	55	(50)	(643)
(Decrease) increase in trade payables	(552)	261	3,357
Loss on adjustment for changes of accounting standard for asset retirement obligations	—	96	1,235
Loss from disaster	—	838	10,778
Other, net	2,409	758	9,750
Subtotal	9,767	9,613	123,640
Interest and dividend income received	59	62	797
Interest expenses paid	(870)	(927)	(11,923)
Payments for loss on disaster	—	(187)	(2,405)
Income taxes paid	132	(1,658)	(21,325)
Net cash provided by operating activities	¥ 9,088	¥ 6,903	$ 88,784

　

	Millions of yen		Thousands of U.S. dollars (Note)
Years ended October 31, 2011 and 2010	2010	2011	2011
Cash flows from investing activities :
Payments for purchase of investment securities	¥ (539)	¥ (450)	$ (5,788)
Proceeds from sales of investment securities	776	0	0
Payments for purchase of property and equipment	(265)	(518)	(6,662)
Other, net	130	(45)	(579)
Net cash provided by (used in) investing activities	102	(1,013)	(13,029)
Cash flows from financing activities :
Increase in short-term bank loans, net	11,332	9,768	125,633
Proceeds from long-term debt	2,609	2,580	33,183
Repayments of long-term debt	(10,805)	(10,935)	(140,643)
Repayments of obligation under installment purchases	(4,382)	(6,006)	(77,248)
Cash dividends paid	(657)	(656)	(8,437)
Other, net	(835)	(1,013)	(13,028)
Net cash used in by financing activities	(2,738)	(6,262)	(80,540)
Effect of exchange rate changes on cash and cash equivalents	(23)	(4)	(51)
Net increase (decrease) in cash and cash equivalents	6,429	(376)	(4,836)
Cash and cash equivalents at beginning of the year	14,086	20,751	266,894
Cash and cash equivalents at beginning of year held by newly consolidated subsidiaries	185	—	—
Cash and cash equivalents at beginning of year held by newly acquired unconsolidated subsidiaries	51	—	—
Cash and cash equivalents at end of the year	¥ 20,751	¥ 20,375	$ 262,058

Note: U.S. dollar amounts have been translated from yen for convenience only, at the rate ¥77.75=US$1, the approximate exchange rate on October 31, 2011.