Daily Journal Corporation Announces Financial Results for the Nine Months Ended June 30, 2015
August 07, 2015 at 14:02 PM EDT
LOS ANGELES, Aug. 7, 2015 (GLOBE NEWSWIRE) -- During the nine months ended June 30, 2015, Daily Journal Corporation (NASDAQ:DJCO) had consolidated pretax income of $210,000 as compared to a pretax loss of $564,000 in the prior year period. This increase of $774,000 resulted primarily from increased Journal Technologies revenues and additional dividends and interest income.
Consolidated revenues were $33,212,000 and $31,922,000 for the nine months ended June 30, 2015 and 2014, respectively. This increase of $1,290,000 was primarily from additional Journal Technologies licensing and maintenance and consulting revenues of $2,120,000, partially offset by decreases in trustee sale notice and related service fee revenues of $603,000, commercial advertising revenues of $155,000 and circulation revenues of $89,000.
The Company's traditional business segment's pretax income decreased by $1,276,000 to $826,000 from $2,102,000, primarily resulting from the decreases in trustee sale notice and related service fee revenues of $603,000 and increased expenses of $457,000 primarily for legal and accounting fees. The Company's Journal Technologies segment had a pretax loss of $3,362,000 including intangible amortizations of $3,671,000, as compared to a pretax loss of $4,674,000 including intangible amortizations of $3,642,000 in the comparable prior year period, an improvement of $1,312,000 primarily resulting from increased revenues. The Company's non-operating income, net of expenses, increased by $1,186,000 to $2,676,000 primarily because of additional dividends and interest income from the marketable securities owned by the Company and because of a large accrual in the prior year period for a possible penalty associated with the Company's uncertain and unrecognized tax benefits.
The Company recorded an income tax benefit of $760,000 on its pretax income of $210,000 for the nine months ended June 30, 2015. The effective tax rate was lower than the statutory rate primarily due to the dividends received deduction, the domestic production activity deduction and a discrete benefit of about $400,000 related to the California Enterprise Zone credits. On a pretax loss of $564,000 for the nine months ended June 30, 2014, the Company recorded a tax benefit of $15,000 which was the net result from applying the effective tax rate anticipated for fiscal 2014 to pretax loss for the nine months ended June 30, 2014.
At June 30, 2015, the Company held marketable securities valued at $181,637,000, including net unrealized gains of $126,719,000. It accrued a liability of $49,085,000 for income taxes due only upon the sales of the net appreciated securities.
Comprehensive income includes net income and unrealized net gains on investments, net of taxes, as summarized below:
Daily Journal Corporation publishes newspapers and web sites covering California and Arizona, as well as the California Lawyer magazine, and produces several specialized information services. Journal Technologies, Inc. is a wholly-owned subsidiary and supplies case management software systems and related products to courts and other justice agencies.
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain statements contained in this press release are "forward-looking" statements that involve risks and uncertainties that may cause actual future events or results to differ materially from those described in the forward-looking statements. Words such as "expects," "intends," "anticipates," "should," "believes," "will," "plans," "estimates," "may," variations of such words and similar expressions are intended to identify such forward-looking statements. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments, or otherwise. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to have been correct. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in documents we file with the Securities and Exchange Commission.
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