CORRECTION - Daily Journal Corporation Announces Financial Results for the Three Months ended December 31, 2019
February 07, 2020 at 16:15 PM EST
LOS ANGELES, Feb. 07, 2020 (GLOBE NEWSWIRE) -- In a release issued under the same headline on Friday, February 7th, by Daily Journal Corporation (NASDAQ:DJCO), please note that in the first sentence of the first paragraph, the amount for the consolidated revenues should be $11,677,000, not $11,677,000,000. The corrected release follows:
During the three months ended December 31, 2019, Daily Journal Corporation had consolidated revenues of $11,677,000 as compared with $10,428,000 in the prior year period. This increase of $1,249,000 was primarily from (i) Journal Technologies’ increased license and maintenance fees of $420,000, consulting fees of $148,000 and public service fees of $748,000, and (ii) the Traditional Business’ increases of government notice advertising net revenues of $40,000 and legal notice advertising net revenues of $61,000, partially offset by reductions in the Traditional Business’ classified advertising net revenues of $16,000, trustee sale notice advertising net revenues of $37,000 and circulation revenues of $26,000.
The Traditional Business had pretax income of $112,000, representing a $144,000 increase from a pretax loss of $32,000 in the prior year period. Journal Technologies’ pretax loss decreased by $860,000 to $1,652,000 from $2,512,000.
At December 31, 2019, the Company held marketable securities valued at $214,112,000, including net unrealized gains of $160,223,000, and accrued a deferred tax liability of $42,611,000 for estimated income taxes due only upon the sales of the net appreciated securities. The net unrealized gains in these marketable securities increased by $19,531,000 in the three months ended December 31, 2019, and these investments generated approximately $1,680,000 in dividends income during such period.
For the three months ended December 31, 2019, the Company recorded a provision for income taxes of $5,280,000 on pretax income of $19,490,000. This was the net result of applying the 19% effective tax rate anticipated for fiscal 2020 to the pretax loss, before the unrealized gains on investments, for the three months ended December 31, 2019. The effective tax rate was less than the statutory rate primarily due to the dividends received deduction and state tax benefits. In addition, the Company recorded taxes on its unrealized gains on investments of $19,531,000 during the three months ended December 31, 2019. The effective tax rate for the three months ended December 31, 2019 was 27%, after including the taxes on the unrealized gains on investments.
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.
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