Daily Journal Corporation Announces Financial Results for Fiscal 2016 ended September 30, 2016
December 14, 2016 at 13:16 PM EST
LOS ANGELES, Dec. 14, 2016 (GLOBE NEWSWIRE) -- During the fiscal year ended September 30, 2016, Daily Journal Corporation (NASDAQ:DJCO) had consolidated revenues of $41,612,000 as compared with $43,978,000 in the prior year. This decrease of $2,366,000 (5%) was primarily from a decline in Journal Technologies’ public service fees of $1,818,000, mostly due to a reduction in the number of traffic tickets processed online and an amnesty program that reduced traffic ticket fines, partially offset by increased license and maintenance fees of $774,000. It also reflects a reduction in The Traditional Business’s trustee sale notice and related service fee revenues of $463,000 and commercial advertising revenues of $532,000, primarily due to the discontinuance of publishing the California Lawyer magazine. Consolidated operating costs and expenses increased by $762,000 to $48,252,000 from $47,490,000, primarily because of additional expenses for Journal Technologies, partially offset by reduced expenses for the Traditional Business primarily due to the discontinuance of the California Lawyer magazine and decreases in legal, accounting and other professional fees. Consolidated pretax loss was $2,978,000 and $310,000 for the fiscal 2016 and 2015, respectively.
The Company’s Traditional Business segment’s pretax income increased in fiscal 2016 by $59,000 to $1,141,000 from $1,082,000 in fiscal 2015 primarily because of decreases in legal, accounting and other professional service fees of $622,000, partially offset by decreased trustee sale notice and related service fee revenues of $463,000 and commercial advertising revenues of $532,000. Journal Technologies’ business segment pretax loss increased in fiscal 2016 by $3,239,000 to $7,929,000 from $4,690,000 and included the amortization costs of intangible assets of $4,895,000 for both fiscal 2016 and 2015. This increase in loss primarily resulted from the decreases in public service fees of $1,818,000 and consulting fees of $619,000, partially offset by increased licensing and maintenance fees of $774,000, and the increases in personnel costs of $1,124,000 and additional travel expenses of $346,000 primarily for installation services.
The Company’s Corporate income, net of expenses, increased by $512,000 to $3,810,000, primarily because of more dividend income from the Company’s marketable securities, partially offset by increased interest costs for the two acquisition loans and additional interest expenses for the Company’s real estate loan to purchase an office building in Utah that is used by Journal Technologies.
The Company recorded an income tax benefit of $1,935,000 on pretax loss of $2,978,000 in fiscal 2016. The effective tax rate was lower than the statutory rate primarily due to the dividends received deduction. On pretax loss of $310,000 for fiscal 2015, the Company recorded a tax benefit of $1,120,000, which was lower than the statutory rate mainly resulting from the dividends received deduction, the domestic production activity deduction and a discrete benefit of approximately $400,000 related to the California Enterprise Zone hiring credits which resulted from the Company’s filing amended California tax returns for fiscal 2010 through fiscal 2013.
At September 30, 2016, the Company held marketable securities valued at $166,634,000, including net unrealized gains of $108,256,000, and accrued a liability of $42,250,000 for income taxes due only upon the sales of the net appreciated securities.
Comprehensive loss includes net (loss) income and net decrease in unrealized net gains on marketable securities, net of taxes, as summarized below:
Daily Journal Corporation publishes newspapers and web sites covering California and Arizona, 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, including the Annual Report on Form 10-K we expect to file today for the fiscal year ended September 30, 2016.
Contact: Tu To (213) 229-5436