Daily Journal Corporation Announces Financial Results for the Three Months ended December 31, 2021
February 11 2022 - 1:00PM
During the three months ended December 31, 2021, Daily Journal
Corporation (NASDAQ:DJCO) had consolidated revenues of $11,528,000
as compared with $10,420,000 in the prior year period. This
increase of $1,108,000 was primarily from increases in (i) Journal
Technologies’ consulting fees of $1,517,000 and public service fees
of $99,000, and (ii) the Traditional Business’ advertising net
revenues of $102,000, partially offset by decreases in (i) Journal
Technologies’ license and maintenance fees of $553,000 and (ii) the
Traditional Business’ circulation revenues of $93,000.
The Traditional Business’ pretax income
decreased by $42,000 to $506,000 from $548,000 in the prior fiscal
year period. Journal Technologies’ business segment pretax loss
decreased by $413,000 to $450,000 from $863,000 in the prior fiscal
year period. In December 2021, the Company sold part of its
marketable securities for approximately $50,020,000, realizing
gains on the sales of those marketable securities of $46,694,000,
and simultaneously borrowed an additional $37,014,000 from its
margin loan account to purchase additional marketable securities
with a total cost of approximately $87,125,000. The Company’s
investments generated approximately $875,000 in dividends income
for the three months ended December 31, 2021, as compared with
$638,000 in the prior fiscal year period. During the three months
ended December 31, 2021, consolidated pretax income was
$11,438,000, as compared to $81,450,000 in the prior fiscal year
period. There was consolidated net income of $6,878,000 ($4.98 per
share) for the three months ended December 31, 2021, as compared
with $59,270,000 ($42.93 per share) in the prior fiscal year
period.
The Company believes that the Coronavirus
pandemic has had, and, with the Delta and Omicron variant cases,
will continue to have, a significant impact on the Company’s
business operations. It is possible that governments may again take
actions in response to the pandemic, such as the renewed closure,
or scaling back of operations, of courts and other governmental
agencies that are the customers of the Company. This might also
include a fair degree of volatility in the value of the Company’s
marketable securities. At December 31, 2021, the Company held
marketable securities valued at $395,284,000, including net pretax
unrealized gains of $208,005,000, and accrued a deferred tax
liability of $56,175,000 for estimated income taxes due only upon
the sales of the net appreciated securities.
For the three months ended December 31, 2021,
the Company recorded a provision for income taxes of $4,560,000 on
pretax income of $11,438,000. The income tax provision
consisted of a tax provision of $230,000 on income from operations,
a tax benefit of $91,000 for the dividends received deduction and
other permanent book and tax differences, a tax benefit of
$9,747,000 on the unrealized losses on marketable securities, a tax
provision of $12,612,000 on the realized gains on marketable
securities and a tax provision of $1,556,000 for the effect of a
change in state apportionment on the beginning of the year’s
deferred tax liability. Consequently, the overall effective tax
rate for the three months ended December 31, 2021 was 40%, after
including the taxes on the realized gains and unrealized losses on
marketable securities.
**********
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:
Tu To (213) 229-5436
Daily Journal (NASDAQ:DJCO)
Historical Stock Chart
From Jun 2024 to Jul 2024
Daily Journal (NASDAQ:DJCO)
Historical Stock Chart
From Jul 2023 to Jul 2024