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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (MARK ONE) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 0-14665 DAILY JOURNAL CORPORATION (Exact name of registrant as specified in its charter) | South Carolina | | 95-4133299 | | --- | --- | --- | | (State or other jurisdiction ...

Financial Performance - Consolidated revenues increased by $10,657,000 (30%) to $46,159,000 for the nine months ended June 30, 2023, compared to $35,502,000 in the prior year, driven by Journal Technologies' consulting fees and license fees [67]. - The Company's consolidated pretax income was $37,577,000 for the nine months ended June 30, 2023, compared to a pretax loss of $40,532,000 in the prior year [70]. - Net income for the nine months ended June 30, 2023, was $27,937,000 ($20.29 per share), a significant recovery from a net loss of $30,797,000 (-$22.31 per share) in the prior year [70]. - Consolidated revenues increased by $4,887,000 (38%) to $17,704,000 for the three months ended June 30, 2023, compared to $12,817,000 in 2022 [90]. - The Company's consolidated pretax income was $382,000, compared to a pretax loss of $13,527,000 in the prior fiscal year period [93]. Operating Expenses - Total operating expenses rose by $5,761,000 (15%) to $42,937,000 from $37,176,000, primarily due to a $3,708,000 (14%) increase in salaries and employee benefits [68]. - Consolidated operating expenses rose by $471,000 (3%) to $15,391,000 from $14,920,000, with total salaries and employee benefits increasing by $1,396,000 (15%) to $10,817,000 [91]. - Operating expenses for Journal Technologies increased by $2,298,000 (24%) to $11,930,000 from $9,632,000, primarily due to increased personnel costs and contractor services [99]. Revenue Sources - The Traditional Business reported total operating revenues of $12,007,000, up from $11,863,000, with advertising revenues increasing by $114,000 (2%) to $6,498,000 [77]. - Journal Technologies' consulting fees increased by $6,451,000, contributing significantly to the overall revenue growth [67]. - Traditional Business total circulation revenues increased by $27,000 (1%) to $3,306,000 from $3,279,000, with Daily Journals accounting for about 93% of this revenue [79]. - Journal Technologies' revenues rose by $10,513,000 (44%) to $34,152,000 from $23,639,000, with consulting fees increasing by $6,451,000 (137%) to $11,148,000 [83]. - Journal Technologies' revenues increased by $4,895,000 (56%) to $13,574,000 from $8,679,000, with licensing and maintenance fees rising by $2,427,000 (52%) to $7,060,000 [97]. Tax and Marketable Securities - The effective tax rate for the nine months ended June 30, 2023, was 25.7%, reflecting the taxes on realized and unrealized gains on marketable securities [72]. - The aggregate fair market value of the Company's marketable securities was $316,038,000, with net unrealized gains of approximately $150,626,000 before taxes [71]. - As of June 30, 2023, the company had investments in marketable securities with an adjusted cost basis of approximately $165.4 million and a market value of about $316.0 million, generating approximately $7.1 million in dividends and interest income during the nine months ended June 30, 2023 [101]. Cash Flow and Working Capital - Cash and cash equivalents increased by $47,558,000 for the nine months ended June 30, 2023, after sales of marketable securities of approximately $2,826,000 [100]. - Cash flows from operating activities increased by $18.3 million during the nine months ended June 30, 2023, compared to the prior fiscal year, primarily due to decreases in income tax receivable and accounts receivable, and increases in deferred revenues and income tax payable [102]. - The company reported working capital of $317.9 million as of June 30, 2023, which includes liabilities for deferred subscriptions and consulting fees totaling $26.9 million [103]. Future Outlook and Risks - The company believes it can fund its operations for the foreseeable future through cash flows from operations and current working capital, but may need to consider selling some marketable securities if necessary [104]. - The company aims to be a significant software company while also operating its Traditional Business, distinguishing itself from being a smaller version of Berkshire Hathaway Inc. [105]. - Forward-looking statements in the report highlight risks such as software development challenges, reliance on professional services, and potential declines in subscriber revenues [109]. - The company acknowledges various factors that could cause actual results to differ materially from forward-looking statements, including economic conditions and changes in accounting guidance [109]. - The company may face margin calls if the balance of its investments decreases significantly, affecting its ability to borrow against marketable securities [104]. Income Variability - The company experienced a decrease in net income of $17.2 million, excluding unrealized gains on marketable securities of $87.0 million during the reporting period [102].