Daily Journal(DJCO)2024-08-14 21:28Revenue 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]