Press release
Daily Journal Corporation Announces Financial Results for the Nine Months ended June 30, 2020
LOS ANGELES, Aug. 07, 2020 (GLOBE NEWSWIRE) -- During the nine months ended June 30, 2020, Daily Journal Corporation (NASDAQ:DJCO) had consolidated revenues
About this update from Daily Journal Corp. (s.c.)
[{"type":"text","content":"LOS ANGELES, Aug. 07, 2020 (GLOBE NEWSWIRE) -- During the nine months ended June 30, 2020, Daily Journal Corporation (NASDAQ:DJCO) had consolidated revenues of $36,907,000 as compared with $35,658,000 in the prior year period. This increase of $1,249,000 was primarily from Journal Technologies’ increased license and maintenance fees of $1,002,000, consulting fees of $1,498,000 and public service fees of $265,000, partially offset by reductions in the Traditional Business’ display advertising (including conferences which were discontinued) net revenues of $679,000, classified advertising net revenues of $153,000, trustee sale notice advertising net revenues of $149,000, legal notice advertising net revenues of $330,000 and circulation revenues of $73,000. \n The Traditional Business had a pretax loss of $634,000, representing a $793,000 decrease in income from pretax income of $159,000 in the prior year period. Journal Technologies’ pretax loss decreased by $2,842,000 to $1,452,000 from $4,294,000. During the nine months ended June 30, 2020, the consolidated pretax loss was $39,102,000, as compared with $17,672,000 in the prior year period. The Company believes that the Coronavirus pandemic has had, and will continue to have, a significant impact on the Company’s business operations. For the three months ended June 30, 2020, the Company experienced a material negative impact on its Traditional Business’ revenues which decreased substantially by $1,376,000 (31%) to $3,131,000 from $4,507,000 due to the closures and scaling back of operations of courts and other governmental agencies. This is important to note because the Company’s quarterly pretax income of $18,594,000, which increased from $5,443,000 in the prior year period, is due primarily to the recording of unrealized gains on investments of $16,489,000 for the Company’s marketable securities portfolio, as the stock market recovered some of the ground it lost from its plunge in March 2020. These investments generated approximately $1,596,000 in dividends income during such period. In the future, dividends income from the Company’s portfolio is expected to decrease, because these investments include the common stocks of three U.S. banks, at least one of which has decided to reduce its dividends. At June 30, 2020, the Company held marketable securities valued at $153,390,000, ...