LOS ANGELES, Aug. 14, 2013 (GLOBE NEWSWIRE) -- During the nine months ended June 30, 2013, consolidated pretax income of Daily Journal Corporation (Nasdaq:DJCO) decreased by $1,257,000 (24%) to $4,086,000 from $5,343,000 in the comparable prior year period.
The Company's traditional business segment pretax income increased by $1,078,000 to $7,869,000 in the nine months ended June 30, 2013 from $6,791,000 in the prior year period when the Company incurred impairment losses on investments of $2,855,000. This year there was a reduction in trustee sale notice and related service fee revenues of $3,055,000, partially offset by a reduction in operating costs and expenses of $144,000 and an increase in dividends and interest income of $381,000.
Sustain's and New Dawn's business segment had a pretax loss of $3,783,000 compared to $1,455,000 in the prior year period primarily due to (i) the addition of New Dawn's pretax loss of $718,000 and (ii) an increase in Sustain's implementation and development personnel costs of $1,191,000 during the nine months ended June 30, 2013.
Consolidated revenues were $26,650,000 and $24,117,000 for the nine months ended June 30, 2013 and 2012, respectively. This increase of $2,533,000 was primarily from the additional New Dawn revenues of $6,430,000, partially offset by the reduction in trustee sale notice and related service fee revenues of $3,055,000. Although public notice advertising revenues were down compared to the prior year period, and although that trend is expected to continue, the Company still continued to benefit from the relatively large number of foreclosures in California and Arizona for which public notice advertising is required by law.
At June 30, 2013, the Company held marketable securities valued at $128,421,000, including unrealized gains of $78,727,000. It accrued a liability of $31,360,000 for income taxes due only upon the sales of the appreciated securities. The marketable securities consist of common stocks of three Fortune 200 companies, two foreign companies and certain bonds of a sixth, and most of the unrealized gains were in the common stocks.
Comprehensive income includes net income and unrealized net gains on investments, net of taxes.
|Nine months ended June 30|
|Net income||$ 2,811,000||$ 3,958,000|
|Net change in unrealized appreciation of investments (net of taxes)||15,802,000||13,430,000|
|Other-than-temporary impairment losses recognized in net income (net of taxes)||--||1,720,000|
Consolidated net income was $2,811,000 and $3,958,000 for the nine months ended June 30, 2013 and 2012, respectively. Net income per share decreased to $2.04 from $2.87.
|Financial Information for the Company's Reportable Segments|
| Traditional |
| Sustain and |
|Nine months ended June 30, 2013|
|Revenues||$ 18,315,000||$ 8,335,000||$26,650,000|
|Pretax income (loss)||7,869,000||(3,783,000)||4,086,000|
|Income tax (expense) benefit||(2,500,000)||1,225,000||(1,275,000)|
|Net income (loss)||5,956,000||(3,145,000)||2,811,000|
|Amortization of intangible assets*||--||1,111,000||1,111,000|
| Traditional |
|Nine months ended June 30, 2012|
|Revenues||$ 21,824,000||$ 2,293,000||$ 24,117,000|
|Income (loss) from operations||8,133,000||(1,455,000)||6,678,000|
|Other-than-temporary impairment losses on investments||2,855,000||--||2,855,000|
|Pretax income (loss)||6,791,000||(1,448,000)||5,343,000|
|Income tax (expense) benefit||(2,135,000)||750,000||(1,385,000)|
|Net income (loss)||4,656,000||(698,000)||3,958,000|
* Includes New Dawn's financial results from December 5, 2012 through June 30, 2013 with revenues of $6,430,000, expenses of $7,148,000 (including intangible amortization expenses of $1,111,000), and inter-company income tax benefits of $230,000.
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. Sustain Technologies, Inc. and New Dawn Technologies, Inc. are wholly-owned subsidiaries and supply case management software systems and related products to courts and other justice agencies.
Daily Journal Corporation's Form 10-Q for the period ended June 30, 2013 is expected to be filed electronically with the Securities and Exchange Commission today. We invite your attention to the Form 10-Q which contains our consolidated financial statements, management's discussion and analysis of financial condition and results of operations and other information.
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 Form 10-Q we expect to file today and our Annual Report on Form 10-K for the fiscal year ended September 30, 2012.
CONTACT: Tu To (213) 229-5436Source:Daily Journal