Daily Journal(DJCO) - 2023 Q1 - Quarterly Report

Revenue Performance - Total consolidated revenues for the three months ended December 31, 2022, were $12,301,000, an increase of $565,000 (5%) compared to $11,736,000 in the prior year[66]. - Journal Technologies accounted for approximately 69% of the Company's revenues during the three-month period ended December 31, 2022, up from 68% in the prior year[65]. - Total operating revenues for the Traditional Business were $3,787,000, slightly up from $3,782,000 in the prior fiscal year[66]. - The Traditional Business experienced a decrease in advertising revenues of $11,000 (1%) to $1,990,000, primarily due to declines in commercial and legal notice advertising[76]. - Public notice advertising revenues constituted about 22% of the Company's total operating revenues for the three months ended December 31, 2022, down from 23% in the prior fiscal year period[77]. - Traditional Business total circulation revenues declined by $12,000 (1%) to $1,098,000 from $1,110,000[78]. - Revenues for Journal Technologies increased by $560,000 (7%) to $8,514,000 from $7,954,000 in the prior fiscal year period[81]. Operating Expenses - Operating expenses increased by $1,337,000 (11%) to $13,017,000, driven by a 14% rise in salaries and employee benefits to $9,631,000[67]. - Operating expenses for Journal Technologies increased by $1,761,000 (21%) to $10,165,000 from $8,404,000, primarily due to increased personnel costs and third-party hosting fees[83]. Net Income and Tax - Consolidated net income for the three months ended December 31, 2022, was $17,827,000 ($12.95 per share), compared to $6,878,000 ($4.98 per share) in the prior year[69]. - The effective tax rate for the three months ended December 31, 2022, was 25.49%, down from 39.87% in the prior year[72][73]. Assets and Capital Expenditures - Total assets as of December 31, 2022, were $275,781,000, compared to $346,271,000 in the prior year[66]. - The Company recorded capital expenditures of $36,000 during the three months ended December 31, 2022[64]. Cash Flow and Investments - Cash and cash equivalents, restricted cash, and marketable security positions increased by $32,797,000 during the three months ended December 31, 2022[85]. - The investments in marketable securities generated approximately $1,069,000 in dividends income during the three months ended December 31, 2022[86]. - Cash flows from operating activities increased by $2,073,000 during the three months ended December 31, 2022, compared to the prior fiscal year period[88]. - The Company had working capital of $305,380,000 as of December 31, 2022[88]. Foreclosure Notices - The number of foreclosure notices published by the Company increased by 44% during the three months ended December 31, 2022, compared to the prior fiscal year period[77]. Journal Technologies Performance - Journal Technologies' business segment pretax loss increased by $1,201,000 (267%) to $1,651,000 from $450,000 in the prior fiscal year period[80].