Daily Journal Corporation Announces Financial Results for the Three Months Ended December 31, 2015
February 08, 2016 at 12:46 PM EST
LOS ANGELES, Feb. 08, 2016 (GLOBE NEWSWIRE) -- During the three months ended December 31, 2015, Daily Journal Corporation (NASDAQ:DJCO) had a consolidated pretax loss of $135,000 compared to pretax income of $408,000 in the prior year period. This was a decrease in profit of $543,000 that resulted primarily from (i) decreases in The Traditional Business’s trustee sale notice and related service fee revenues and commercial advertising revenues and (ii) Journal Technologies’ additional personnel costs and travel expenses, primarily for installation services.
The Company’s Traditional Business segment’s pretax income decreased by $168,000 to $122,000 from $290,000, primarily resulting from the decreases in trustee sale notice and related service fee revenues and commercial advertising revenues, partially offset by decreased legal, accounting and tax fees. The Company’s Journal Technologies’ business segment pretax loss increased by $439,000 to $1,110,000 from $671,000 primarily resulting from the decrease in public service fees and the increase in personnel costs and additional travel expenses for installation services. The Company’s non-operating income, net of expenses, increased by $58,000 to $827,000, primarily because of additional dividends and interest income from the Company’s marketable securities.
The Company recorded an income tax benefit of $185,000 on a pretax loss of $135,000 for the three months ended December 31, 2015. The income tax benefit was the result of applying the effective tax rate anticipated for fiscal 2016 to the pretax loss for the first quarter of fiscal 2016. The effective tax rate was lower than the statutory rate primarily due to the dividends received deduction. On pretax income of $408,000 for the three months ended December 31, 2014, the Company recorded a tax benefit of $25,000 which was the net result of applying the effective tax rate anticipated for fiscal 2015 to pretax income for the first quarter of fiscal 2015.
At December 31, 2015, the Company held marketable securities valued at $178,984,000, including net unrealized gains of $120,602,000. It accrued a liability of $46,455,000 for income taxes due only upon the sales of the net appreciated securities.
Comprehensive (loss) income includes net income and unrealized net (losses) gains on investments, net of taxes, as summarized below:
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.
Contact: Tu To (213) 229-5436