Financial Performance - Daily Journal Corporation (DJCO) reported a consolidated net income of $51.4 million, translating to earnings of $37.32 per share for the nine months ended June 30, 2024, a significant increase from the previous year's earnings of $20.29 per share, totaling $27.9 million in net income [1] - The company's consolidated revenues rose to $50.1 million from $46.2 million, reflecting a growth of $3.9 million, primarily driven by higher license and maintenance fees and public service fees in its Journal Technologies segment [2] - The overall financial health of DJCO appears robust, supported by strategic asset management and revenue growth in key business areas, despite challenges from rising operational costs [3] Operational Insights - Both the Traditional Business and Journal Technologies units experienced increased operational expenses, impacting their pretax incomes, with operational costs rising due to annual salary adjustments, hiring additional staff, and increased third-party hosting fees [4] - The Traditional Business' pretax income declined to $1.6 million from $2.3 million, attributed mainly to heightened accrued personnel costs, while Journal Technologies saw a pretax income decrease to $0.8 million from $0.9 million, with increased operating expenses offsetting revenue gains [5] Strategic Financial Management - The company's financial health was significantly buoyed by its management of marketable securities, valued at $325 million, with net pretax unrealized gains of $185.9 million, contributing to a net income increase facilitated by net gains on sales of marketable securities [6] - DJCO realized net gains of $14.3 million from the sale of certain marketable securities for about $40.6 million, which facilitated a substantial paydown of the margin loan balance, decreasing it to $27.5 million from $75 million, reflecting a strategic approach to leveraging assets for financial stability [7]

Revenue Performance - Total revenues for the three months ended June 30, 2024, were $17,494,000, a decrease of 1.2% compared to $17,704,000 for the same period in 2023[7] - Total revenues for the nine months ended June 30, 2024, increased to $50,058,000, up from $46,159,000 for the same period in 2023, representing an increase of 6.2%[10] - Total operating revenues for the Traditional Business in Q2 2024 were $4,427,000, a 7.2% increase from $4,130,000 in Q2 2023[43] - Total operating revenues for the Company's software business in Q2 2024 were $13,067,000, a decrease of 3.7% from $13,574,000 in Q2 2023[43] - Total operating revenues for the Traditional Business for the nine months ended June 30, 2024, were $12,426,000, an increase from $12,007,000 in the prior fiscal year[43] - Approximately 75% of the Company's revenues during the nine-month period ended June 30, 2024, were derived from Journal Technologies, compared to 74% in the prior year[44] Net Income and Earnings Per Share - Net income for the three months ended June 30, 2024, was $23,355,000, significantly up from $677,000 in the same period last year, representing an increase of 3340%[7] - Basic and diluted net income per share for the three months ended June 30, 2024, was $16.96, compared to $0.49 for the same period in 2023[7] - Net income for the nine months ended June 30, 2024, was $51,385,000, compared to $27,937,000 for the same period in 2023, reflecting an increase of 84.5%[10] - Net income for Q2 2024 was $550,000, compared to $509,000 in Q2 2023, reflecting an increase of 8.1%[43] Cash and Investments - Cash and cash equivalents decreased to $9,991,000 as of June 30, 2024, down from $20,844,000 as of September 30, 2023[5] - Marketable securities at fair value increased to $325,021,000 as of June 30, 2024, compared to $303,128,000 as of September 30, 2023[5] - The company reported a significant unrealized gain of $28,018,000 on marketable securities for the three months ended June 30, 2024[7] - The company reported net unrealized gains on marketable securities of $48,211,000 for the nine months ended June 30, 2024, compared to $29,934,000 for the same period in 2023, an increase of 61.0%[10] - The Company realized net gains of $14,261,000 from the sale of marketable securities totaling approximately $40,579,000 during the nine months ended June 30, 2024[29] - As of June 30, 2024, the Company reported net accumulated pretax unrealized gains of $185,927,000 in marketable securities, up from $137,716,000 as of September 30, 2023, reflecting a significant increase of approximately 35%[28] Expenses and Liabilities - The company’s total costs and expenses increased to $47,712,000 for the nine months ended June 30, 2024, from $42,937,000 in 2023, an increase of 11.5%[10] - Salaries and employee benefits increased to $12,069,000 for the three months ended June 30, 2024, compared to $10,817,000 for the same period in 2023[7] - Long-term liabilities decreased to $75,996,000 as of June 30, 2024, down from $112,193,000 as of September 30, 2023[5] - Total current liabilities decreased slightly to $42,011,000 as of June 30, 2024, from $42,198,000 as of September 30, 2023[5] - Total operating expenses for Q2 2024 were $3,687,000, up from $3,461,000 in Q2 2023, representing a 6.5% increase[43] Shareholder Information - The weighted average number of common shares outstanding remained stable at 1,377,026 for both the three months ended June 30, 2024, and 2023[7] - The Company’s net income per common share for the three- and nine-month periods ended June 30, 2024 was based on 1,377,026 shares outstanding, unchanged from the prior year[27] Taxation - For the nine months ended June 30, 2024, the Company recorded an income tax provision of $16,810,000 on pretax income of $68,195,000, resulting in an effective tax rate of 24.65%[32] Company Operations - Journal Technologies, Inc. continues to expand its case management software systems, serving approximately 30 states and international markets[17] - The Company adopted the Current Expected Credit Losses accounting standard on October 1, 2023, which had no material effect on its consolidated financial statements[22] - The Company had a Right-of-Use (ROU) asset and lease liability of approximately $151,000 for its operating office and equipment leases as of June 30, 2024[23] - The Company’s investments in common stocks had a fair value of $325,021,000 as of June 30, 2024, compared to $303,128,000 as of September 30, 2023, indicating growth in its investment portfolio[32] Real Estate and Loans - The Company’s real estate loan had a balance of approximately $1.16 million as of June 30, 2024, with monthly installment payments of about $16,700[37] - The margin loan balance was reduced to approximately $27,500,000 from $75,000,000 at September 30, 2023, representing a paydown of about $47,500,000 during the nine-month period[29] Capital Expenditures - Capital expenditures for the nine months ended June 30, 2024, were $23,000, down from $86,000 in 2023[41]

Core Insights - Daily Journal Corporation reported consolidated revenues of $50,058,000 for the nine months ended June 30, 2024, an increase of $3,899,000 from $46,159,000 in the prior year period, driven by higher license and maintenance fees and public service fees [1] - The company's consolidated pretax income rose to $68,195,000 compared to $37,577,000 in the prior fiscal year, with net income increasing to $51,385,000 ($37.32 per share) from $27,937,000 ($20.29 per share) [5] - Non-operating income increased significantly to $65,849,000 from $34,355,000, primarily due to realized and unrealized gains on marketable securities [4] Revenue and Income Analysis - The increase in revenues was attributed to Journal Technologies' license and maintenance fees, which rose by $3,438,000, and other public service fees, which increased by $1,251,000, despite a decrease in consulting fees [1] - The Traditional Business segment experienced a pretax income decrease of $711,000 to $1,601,000, mainly due to increased personnel costs [2] - Journal Technologies' pretax income also decreased by $165,000 to $745,000, primarily due to increased operating expenses [2] Marketable Securities and Financial Position - As of June 30, 2024, the company held marketable securities valued at $325,021,000, with net pretax unrealized gains of $185,927,000 [3] - The company sold marketable securities for approximately $40,579,000 in March 2024, realizing net gains of $14,261,000, and used the proceeds to reduce its margin loan balance significantly [3] Tax Provision and Effective Rate - The income tax provision for the nine months ended June 30, 2024, was $16,810,000, resulting in an effective tax rate of 24.65% [6]

Core Viewpoint - Zacks Investment Research has initiated coverage of Daily Journal Corporation (DJCO) with a Neutral recommendation, highlighting the company's financial health, diversified revenue streams, and growth opportunities while noting potential risks that could impact performance [1] Financial Position - Daily Journal has a strong financial position with $10.6 million in cash and $2.1 million in restricted cash as of March 31, 2024, providing operational stability and strategic flexibility [2] - The company holds marketable securities valued at $297 million, further enhancing its financial stability [2] Revenue Streams - The company operates through two primary segments: Traditional Business and Journal Technologies, generating a total of $32.6 million in operating revenues for the six months ended March 31, 2024, which reduces reliance on any single income source [3] - Net income increased nearly 3% to $28 million for the same period, driven by a rise in licensing and maintenance fees to $13.4 million, up from $10.1 million the previous year, indicating effective revenue management [4] Growth Opportunities - Daily Journal is expanding internationally with software installation projects in Australia and a new subsidiary in British Columbia, Canada, which diversifies its geographical revenue base and mitigates domestic market risks [5] Challenges - The company faces challenges such as high debt levels from investment margin account borrowings, which could pressure stock prices [6] - Rising operating expenses, including increased salaries and employee benefits, may squeeze profit margins if not matched by revenue growth [6] - Dependence on government contracts for the Journal Technologies segment poses specific risks [6] Industry Landscape - Daily Journal operates in a competitive industry influenced by broader economic factors like inflation and interest rate fluctuations, which could impact consumer and business spending behaviors [7] Market Performance - The company's shares have shown strong performance, reflecting positive market reception of its strategic initiatives and financial health, with a current valuation indicating it is fairly priced relative to peers [8] Investment Takeaway - While Daily Journal has a solid foundation and growth potential, particularly through its Journal Technologies segment and international expansion, high debt levels and rising operating expenses present significant risks [9]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _____________________ Commission File Number 0-14665 DAILY JOURNAL CORPORATION (Exact name of registrant as specified in its charter) South Carol ...

Financial Performance - Daily Journal Corporation reported consolidated revenues of $32,564,000 for the six months ended March 31, 2024, an increase of $4,109,000 from $28,455,000 in the prior year period, driven by Journal Technologies' license and maintenance fees and other public service fees [1] - The Traditional Business' pretax income decreased by $782,000 to $861,000, primarily due to increased personnel costs, despite a reduction in long-term supplemental compensation accrual [2] - Journal Technologies' pretax income increased by $1,129,000 to $395,000, recovering from a pretax loss of $734,000 in the prior year, attributed to increased revenues [2] Marketable Securities and Income - As of March 31, 2024, the company held marketable securities valued at $297,003,000, with net pretax unrealized gains of $157,909,000, and a deferred tax liability of $40,490,000 [3] - The company sold marketable securities for approximately $40,579,000 in March 2024, realizing net gains of $14,261,000, which were used to pay down margin loan balances significantly [3] - Non-operating income decreased by $1,182,000 to $35,104,000, primarily due to lower net unrealized gains and decreased dividends and interest income [4] Net Income and Tax Provision - Consolidated pretax income was reported at $36,360,000, down from $37,195,000 in the prior fiscal year, with consolidated net income of $28,030,000 ($20.36 per share) compared to $27,260,000 ($19.80 per share) previously [5] - The income tax provision for the six months ended March 31, 2024, was $8,330,000, resulting in an overall effective tax rate of 22.9% [6] Company Overview - Daily Journal Corporation publishes newspapers and websites in California and Arizona and provides specialized information services, while Journal Technologies, Inc. offers case management software systems to courts and justice agencies [8]

  LOS ANGELES, March 14, 2024 (GLOBE NEWSWIRE) -- As previously announced on December 1, 2023, due to the death of director Charles T. Munger, Daily Journal Corporation (NASDAQ:DJCO) notified the Nasdaq Stock Market ("Nasdaq") that the company's audit committee has only two members, which is contrary to Nasdaq Listing Rule 5605(c)(2)(A)'s requirement that listed companies have an audit committee of at least three members. On March 13, 2024, the company received a letter from Nasdaq indicating that the compa ...

LOS ANGELES, Feb. 14, 2024 (GLOBE NEWSWIRE) -- During the three months ended December 31, 2023, Daily Journal Corporation (NASDAQ:DJCO) had consolidated revenues of $15,993,000 as compared to $12,301,000 in the prior year period. This increase of $3,692,000 was primarily from increases in (i) Journal Technologies' license and maintenance fees of $2,162,000, consulting fees of $980,000, and other public service fees of $450,000, and (ii) the Traditional Business' advertising revenues of $97,000. The Traditio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _____________________ Commission File Number 0-14665 DAILY JOURNAL CORPORATION (Exact name of registrant as specified in its charter) South Ca ...

LOS ANGELES, Dec. 27, 2023 (GLOBE NEWSWIRE) -- During fiscal 2023, Daily Journal Corporation (NASDAQ:DJCO) had consolidated revenues of $67,709,000 as compared to $54,009,000 in the prior year. This increase of $13,700,000 was primarily from increases in (i) Journal Technologies' consulting fees of $7,911,000, license and maintenance fees of $4,311,000 and other public service fees of $1,147,000, and (ii) the Traditional Business' advertising revenues of $364,000, partially offset by a decrease in the Tradi ...