Daily Journal Corporation Announces Financial Results for the nine months ended June 30, 2024

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]