Daily Journal Corporation Announces Financial Results for the Six Months ended March 31, 2021

Written by Customer Service on . Posted in Public Companies.

LOS ANGELES, May 12, 2021 (GLOBE NEWSWIRE) — During the six months ended March 31, 2021, Daily Journal Corporation (NASDAQ:DJCO) had consolidated revenues of $24,390,000 as compared with $24,033,000 in the prior year period. This increase of $357,000 was primarily from Journal Technologies’ increased license and maintenance fees of $673,000, consulting fees of $631,000 and public service fees of $129,000, partially offset by reductions in the Traditional Business’ display advertising net revenues of $221,000, classified advertising net revenues of $92,000, trustee sale notice advertising net revenues of $235,000, legal notice advertising net revenues of $134,000 and circulation revenues of $266,000.

The Traditional Business’ pretax income decreased by $783,000 to a pretax loss of $382,000 from pretax income of $401,000 in the prior fiscal year period. Journal Technologies’ business segment pretax income increased by $4,398,000 to $1,338,000 from a pretax loss of $3,060,000 in the prior fiscal year period. During the six months ended March 31, 2021, the Company sold some of its marketable securities for $20,002,000, realizing gains on the sales of those marketable securities of $18,478,000, and simultaneously reinvested the proceeds in marketable securities of a different company. In addition, there were increases in net unrealized gains on marketable securities of $133,748,000 to $76,068,000 from net unrealized losses of $57,680,000 in the prior fiscal year period. These investments generated approximately $1,287,000 in dividends income for the six months ended March 31, 2021. Dividends from the Company’s portfolio have declined and are expected to remain lower than in the past because the investments are largely concentrated in U.S. financial institutions, and some banks have reduced their dividends. During the six months ended March 31, 2021, consolidated pretax income was $96,661,000, as compared to a pretax loss of $57,696,000 in the prior fiscal year period. There was consolidated net income of $71,746,000 ($51.96 per share) for the six months ended March 31, 2021, as compared with a net loss of $42,116,000 (-$30.50 per share) in the prior fiscal year period.

The Company believes that the Coronavirus pandemic (“COVID-19”) has had, and will continue to have a significant impact on the Company’s business operations. This might include a fair degree of volatility in the value of the Company’s marketable securities. At March 31, 2021, the Company held marketable securities valued at $293,907,000, including net pretax unrealized gains of $213,661,000, and accrued a deferred tax liability of $55,550,000 for estimated income taxes due only upon the sales of the net appreciated securities.

For the six months ended March 31, 2021, the Company recorded a provision for income taxes of $24,915,000 on pretax income of $96,661,000. This was the net result of applying the effective tax rate anticipated for fiscal 2021 to pretax income before the realized and unrealized gains on investments for the six months ended March 31, 2021. The effective rate of 19.28% was lower than the statutory rate of 21% primarily due to the dividends received deduction, of which the reduction was partially offset by state taxes, resulting in a tax provision of $408,000 on operating income. In addition, the Company recorded a tax provision of $19,680,000 on the unrealized gains on marketable securities, a tax provision of $4,804,000 on the realized gain on marketable securities and a tax provision of $23,000 for the effect of a change in state apportionment on the beginning of the year deferred tax liability. The overall effective tax rate for the six months ended March 31, 2021 was 25.8%, after including the taxes on the realized and unrealized gains on marketable securities.

For the six months ended March 31, 2020, the Company recorded an income tax benefit of $15,580,000 on a pretax loss of $57,696,000. This was the net result of applying the effective tax rate anticipated for fiscal 2020 to the pretax loss, before the unrealized losses on investments, for the six months ended March 31, 2020.   In addition, the Company recorded tax benefits of (i) $187,000 resulting from the Coronavirus Aid, Relief and Economic Security (“CARES”) Act (see below) and (ii) $15,425,000 for the unrealized losses on investments during the six months ended March 31, 2020.  The effective tax rate for the six months ended March 31, 2020 was 27%, after including the tax benefits from the CARES Act and the unrealized losses 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.

# # #

CONTACT: Contact: Tu To 
(213) 229-5436

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Cookie Notice

We use cookies to improve your experience on our website

Information we collect about your use of Goldea Capital website

Goldea Capital website collects personal data about visitors to its website.

When someone visits our websites, we use a third party service, Google Analytics, to collect standard internet log information (such as IP address and type of browser they’re using) and details of visitor behavior patterns. We do this to allow us to keep track of the number of visitors to the various parts of the sites and understand how our website is used. We do not make any attempt to find out the identities or nature of those visiting our websites. We won’t share your information with any other organizations for marketing, market research or commercial purposes and we don’t pass on your details to other websites.

Use of cookies
Cookies are small text files that are placed on your computer or other device by websites that you visit. They are widely used to make websites work, or work more efficiently, as well as to provide information to the owners of the site.