Daily Journal Corporation Announces Financial Results for fiscal year ended September 30, 2019

     LOS ANGELES, Dec. 12, 2019 (GLOBE NEWSWIRE) -- During fiscal 2019, Daily Journal Corporation (NASDAQ:DJCO) had consolidated revenues of $48,655,000 as compared with $40,703,000 in the prior year.  This increase of $7,952,000 was primarily from (i) Journal Technologies’ increased license and maintenance fees of $2,954,000, consulting fees of $2,707,000 and public service fees of $2,370,000, and (ii) the Traditional Business’ increases of display advertising net revenues of $344,000, including conference revenues, and legal notice advertising net revenues of $106,000, partially offset by a reduction in the Traditional Business’ classified advertising net revenues of $246,000, trustee sale notice advertising net revenues of $196,000 and circulation revenues of $152,000.

     The Traditional Business’ pretax income decreased by $218,000 to $19,000 from $237,000 in the prior year.  Journal Technologies’ pretax loss increased by $3,944,000 to $18,336,000 from $14,392,000, after (i) the goodwill impairment expenses of $13,400,000 during this fiscal year as compared with none in the prior fiscal year, and (ii) no amortization costs of intangible assets during fiscal 2019 (fully amortized by last year-end) as compared with $3,058,000 in fiscal 2018. 

     On October 1, 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2016-01, Financial Instruments – Overall (Subtopic 825-10):  Recognition and Measurement of Financial Assets and Financial Liabilities.  This ASU requires an entity that holds financial assets or owes financial liabilities to, among other things, measure equity investments at fair value and recognize net unrealized gains (losses) through net income (loss).  Accordingly, the Company’s net loss of $25,216,000 (-$18.26 per share) for fiscal 2019, included net unrealized losses on investments of $17,715,000 as well as the goodwill impairment losses of $13,400,000.   For fiscal 2018, the Company recorded net unrealized gains (losses) for its available-for-sale marketable securities in other comprehensive income.  There was net income of $8,201,000 ($5.94 per share) in fiscal 2018 primarily because of the tax cuts.