Press release
Daily Journal Corporation Announces Financial Results for the Three Months ended December 31, 2022
LOS ANGELES, Feb. 13, 2023 (GLOBE NEWSWIRE) -- During the three months ended December 31, 2022, Daily Journal Corporation (NASDAQ:DJCO) had consolidated
About this update from Daily Journal Corp. (s.c.)
[{"type":"text","content":" LOS ANGELES, Feb. 13, 2023 (GLOBE NEWSWIRE) -- During the three months ended December 31, 2022, Daily Journal Corporation (NASDAQ:DJCO) had consolidated revenues of $12,301,000 as compared with $11,736,000 in the prior year period. This increase of $565,000 was primarily from increases in (i) Journal Technologies’ consulting fees of $561,000 and other public service fees of $84,000 and (ii) the Traditional Business’ advertising service fees and other of $28,000, partially offset by decreases in (i) Journal Technologies’ license and maintenance fees of $85,000 and (ii) the Traditional Business’ advertising revenues of $11,000 and circulation revenues of $12,000. The Traditional Business’ pretax income increased by $429,000 to $935,000 from $506,000 in the prior fiscal year period, primarily resulting from a decrease to the long-term supplemental compensation accrual of $410,000 to $500,000 from $90,000 in the prior fiscal year period. Journal Technologies’ business segment pretax loss increased by $1,201,000 to $1,651,000 from $450,000 in the prior fiscal year period, primarily because of increased operating expenses of $1,761,000 largely due to (i) increased personnel costs because of bigger salary adjustments due to recent inflation in the compensation market for talent, (ii) increased third-party hosting fees which were billed to clients and (iii) additional miscellaneous office software license purchases and increased business travel expenses. During the three months ended December 31, 2022, the Company sold certain of its marketable securities for approximately $2,826,000, realizing net gains on the sales of those marketable securities of $422,000 (as compared with $46,694,000 of realized net gains in the prior year period), and borrowed an additional $6,011,000 from the Company’s margin loan account to primarily purchase additional marketable securities with a total cost of approximately $10,001,000 (as compared with an additional marketable security purchase of $87,125,000 in the prior fiscal year with additional borrowings of $37,014,000). There were interest expense increases of $774,000 to $873,000 from $99,000 primarily because of the federal rate increases. In addition, there were net unrealized gains on marketable securities of $24,025,000 as compared with net unrealized losses of $36,088,000 in the prior fiscal yea...