LOS ANGELES, Feb. 13, 2015 (GLOBE NEWSWIRE) -- Daily Journal Corporation (Nasdaq:DJCO) had consolidated pretax income of $408,000 as compared to a pretax loss of $650,000 in the prior year period. This was an increase in pretax income of $1,058,000 primarily because of increased Journal Technologies revenues. (Effective October 1, 2014, the Company's three wholly-owned technology-related subsidiaries -- Sustain Technologies, Inc., New Dawn Technologies, Inc. and ISD Technologies, Inc. -- merged to become one wholly-owned subsidiary, new named Journal Technologies, Inc.)
Consolidated revenues were $11,323,000 and $9,951,000 for the three months ended December 31, 2014 and 2013, respectively. This increase of $1,372,000 was primarily from additional Journal Technologies revenues of $1,523,000, partially offset by a reduction in trustee sale notice and related service fee revenues of $215,000.
The Company's traditional business segment pretax income decreased by $222,000 to $1,065,000 from $1,287,000, primarily resulting from the reduction in trustee sale notice and related service fee revenues. The Company's Journal Technologies segment had a pretax loss of $657,000 compared to $1,937,000 in the comparable prior year period, an improvement of $1,280,000. In addition, there were increases in dividends and interest income of $174,000 during this quarter.
The Company recorded an income tax benefit of $25,000 on its pretax income of $408,000 for the three months ended December 31, 2014, which was the net result from applying the effective tax rate anticipated for fiscal 2015 to pretax income for the first quarter of fiscal 2015. On a pretax loss of $650,000 for the three months ended December 31, 2013, the Company recorded a tax benefit of $10,000.
At December 31, 2014, the Company held marketable securities valued at $174,338,000, including net unrealized gains of $119,421,000. It accrued a liability of $46,261,000 for income taxes due only upon the sales of the net appreciated securities.
Comprehensive (loss) income includes net income (loss) and unrealized net (losses) gains on investments, net of taxes, as summarized below:
|Comprehensive (Loss) Income|
|Three months ended December 31|
|Net income (loss)||$ 433,000||$ (640,000)|
|Net change in unrealized appreciation of investments (net of taxes)||(3,642,000)||8,199,000|
|$ (3,209,000)||$7 559,000|
Certain financial information for the Company's reportable segments is summarized below:
|Reportable Segments (000)|
|For the three months ended December 31|
|Advertising||$2,704||$2,848||$ --||$ --||$2,704||$2,848|
|Advertising service fees and other||685||676||--||--||685||676|
|Licensing and maintenance fees||--||--||3,757||3,008||3,757||3,008|
|Other public service fees||--||--||1,461||1,462||1,461||1,462|
|Salaries and employee benefits||2,438||2,480||4,174||4,019||6,612||6,499|
|Amortization of intangible assets||--||--||1,224||1,195||1,224||1,195|
|Income (loss) from operations||290||694||(651)||(1,963)||(361)||(1,269)|
|Other income (loss)||775||593||(6)||26||769||619|
|Pretax income (loss)||$ 1,065||$ 1,287||$ (657)||$ (1,937)||$ 408||$ (650)|
Daily Journal Corporation publishes newspapers and web sites covering California and Arizona, as well as the California Lawyer magazine, 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) 229-5436Source:Daily Journal