Daily Journal Corp. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Daily Journal Corp. filed its Q1 2025 10-Q report for the period ending December 31, 2023.</b>

AI Summary

DAILY JOURNAL CORP (DJCO) filed a Quarterly Report (10-Q) with the SEC on February 15, 2024. Daily Journal Corp. reported its Q1 2025 results for the period ending December 31, 2023. The filing covers the period from October 1, 2023, to December 31, 2023. The company's SIC code is 2711, indicating its primary business in Newspapers: Publishing or Publishing & Printing. The filing was submitted on February 15, 2024. The company's principal executive offices are located at 915 East First Street, Los Angeles, CA 90012.

Why It Matters

For investors and stakeholders tracking DAILY JOURNAL CORP, this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance and operational details for Daily Journal Corp. during the first fiscal quarter of 2025. Understanding the company's financial health and segment performance is crucial for assessing its current market position and future prospects.

Risk Assessment

Risk Level: low — DAILY JOURNAL CORP shows low risk based on this filing. The filing is a standard 10-Q, providing routine financial updates without immediate significant positive or negative indicators.

Analyst Insight

Monitor future filings for detailed financial performance and segment growth within Daily Journal Corp.'s traditional and technology businesses.

Key Numbers

• 2023-12-31 — Period of Report (CONFORMED PERIOD OF REPORT)
• 2024-02-15 — Filed As Of Date (FILED AS OF DATE)
• 2024-02-14 — Date As Of Change (DATE AS OF CHANGE)
• 2023-10-01 — Quarter Start Date (2023-10-01)
• 2023-12-31 — Quarter End Date (2023-12-31)

Key Players & Entities

• DAILY JOURNAL CORP (company) — FILER
• 0000783412 (company) — CENTRAL INDEX KEY
• 2711 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• SC (company) — STATE OF INCORPORATION
• 0930 (company) — FISCAL YEAR END
• 1934 Act (regulator) — SEC ACT
• 000-14665 (company) — SEC FILE NUMBER
• 24641083 (company) — FILM NUMBER

FAQ

Industry Context

Daily Journal Corp. operates within the newspaper publishing industry, a sector that has faced significant disruption from digital media.

Regulatory Implications

The company is subject to standard SEC regulations for public companies, including the requirement to file quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and management discussion.
2. Analyze segment performance, particularly for Journal Technologies and Traditional Business.
3. Compare current quarter results to historical data and industry trends.

Key Dates

• 2024-02-15: 10-Q Filing — Submission of the quarterly report for the period ending December 31, 2023.

Year-Over-Year Comparison

This filing represents the first quarterly report for the fiscal year 2025, providing an update from previous filings.

Filing Documents

• djco20231231_10q.htm (10-Q) — 820KB
• ex_625033.htm (EX-31) — 25KB
• ex_625034.htm (EX-32) — 9KB
• 0001437749-24-004225.txt (&nbsp;) — 3908KB
• djco-20231231.xsd (EX-101.SCH) — 28KB
• djco-20231231_def.xml (EX-101.DEF) — 234KB
• djco-20231231_lab.xml (EX-101.LAB) — 195KB
• djco-20231231_pre.xml (EX-101.PRE) — 250KB
• djco-20231231_cal.xml (EX-101.CAL) — 36KB
• djco20231231_10q_htm.xml (XML) — 571KB

Financial Information

PART I Financial Information

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Consolidated Balance Sheets December 31, 2023 and September 30, 2023 3 Consolidated Statements of Income and Comprehensive Income Three months ended December 31 2023 and 2022 4 Consolidated Statements of Shareholders' Equity Three months ended December 31, 2023 and 2022 5 Consolidated Statements of Cash Flows Three months ended December 31, 2023 and 2022 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7

Management's Discussion and Analysis of

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 14

Controls and Procedures

Item 4. Controls and Procedures 20

Other Information

Part II Other Information

Exhibits

Item 6. Exhibits 21 2 PART I

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS DAILY JOURNAL CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) December 31 September 30 2023 2023 ASSETS Current assets Cash and cash equivalents $ 14,432,000 $ 20,844,000 Restricted cash 2,121,000 2,100,000 Non-qualified deferred compensation plan - trust account asset value 379,000 194,000 Marketable securities at fair value -- common stocks 317,818,000 303,128,000 Accounts receivable, less allowance for doubtful accounts of $ 250,000 at December 31, 2023 and September 30, 2023 12,742,000 18,687,000 Inventories 58,000 72,000 Income tax receivable 21,000 — Prepaid expenses and other current assets 411,000 380,000 Total current assets 347,982,000 345,405,000 Property, plant and equipment, at cost Land, buildings and improvements 16,400,000 16,400,000 Furniture, office equipment and computer software 1,708,000 1,703,000 Machinery and equipment 1,521,000 1,521,000 19,629,000 19,624,000 Less accumulated depreciation ( 10,330,000 ) ( 10,264,000 ) 9,299,000 9,360,000 Operating lease right-of-use assets 82,000 95,000 $ 357,363,000 $ 354,860,000 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 6,019,000 $ 6,643,000 Accrued liabilities 5,032,000 8,789,000 Income tax payable — 1,069,000 Note payable collateralized by real estate 160,000 158,000 Deferred subscriptions 2,623,000 2,678,000 Deferred consulting fees 5,744,000 5,828,000 Deferred maintenance agreements and others 15,131,000 17,033,000 Total current liabilities 34,709,000 42,198,000 Long term liabilities Investment margin account borrowings 70,000,000 75,000,000 Note payable collateralized by real estate 1,079,000 1,120,000 Deferred maintenance agreements 714,000 1,000,000 Accrued liabilities 3,841,000 4,274,000 Accrued non-qualified deferred compensation 387,000 200,000 Deferred income tax

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1 - The Corporation and Operations Daily Journal Corporation ("Daily Journal") publishes newspapers and websites covering California and Arizona and produces several specialized information services. It also serves as a newspaper representative specializing in public notice advertising. This is sometimes referred to as the Company's "Traditional Business". Journal Technologies, Inc. ("Journal Technologies"), a wholly-owned subsidiary of the Company, supplies case management software systems and related products to courts, prosecutor and public defender offices, probation departments and other justice agencies, including administrative law organizations, city and county governments and bar associations. These organizations use the Journal Technologies family of products to help manage cases and information electronically, to interface with other critical justice partners and to extend electronic services to the public, including e-filing and a website to pay traffic citations and fees online. These products are licensed or subscribed to in approximately 30 states, and internationally. Essentially all of the Company's U.S. operations are based in California, Arizona and Utah. The Company also has a presence in Australia where Journal Technologies is working on three software installation projects and in British Columbia, Canada, where the Company established a new wholly-owned subsidiary, Journal Technologies (Canada) Inc., in August 2022. Note 2 - Basis of Presentation In the opinion of the Company, the accompanying interim unaudited consolidated financial statements contain all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of its financial position as of December 31, 2023, its results of operations for the three-month periods ended December 31, 2023 and 2022, its consolidated statements of shareholders' equity for the three-month periods ended Dec

Business

Business Journal Technologies Corporate Total 2023 2022 2023 2022 2023 2022 2023 2022 Revenues Advertising $ 2,087 $ 1,990 $ — $ — $ — $ — $ 2,087 $ 1,990 Circulation 1,095 1,098 — — — — 1,095 1,098 Advertising service fees and other 705 699 — — — — 705 699 Licensing and maintenance fees — — 6,557 4,395 — — 6,557 4,395 Consulting fees — — 3,302 2,322 — — 3,302 2,322 Other public service fees — — 2,247 1,797 — — 2,247 1,797 Total operating revenues 3,887 3,787 12,106 8,514 — — 15,993 12,301 Operating expenses Salaries and employee benefits 2,549 2,218 8,798 7,413 — — 11,347 9,631 Decrease to the long-term supplemental compensation accrual ( 420 ) ( 500 ) — ( 20 ) — — ( 420 ) ( 520 ) Others 1,471 1,134 2,972 2,772 — — 4,443 3,906 Total operating expenses 3,600 2,852 11,770 10,165 — — 15,370 13,017 Income (loss) from operations 287 935 336 ( 1,651 ) — — 623 ( 716 ) Dividends and interest income — — — — 1,569 1,069 1,569 1,069 Interest expenses on note payable collateralized by real estate and other — — — — ( 11 ) ( 12 ) ( 11 ) ( 12 ) Interest expense on margin loans — — — — ( 1,131 ) ( 861 ) ( 1,131 ) ( 861 ) Gains on sales of marketable securities, net — — — — — 422 — 422 Net unrealized gains (losses) on marketable securities — — — — 14,690 24,025 14,690 24,025 Pretax income (loss) 287 935 336 ( 1,651 ) 15,117 24,643 15,740 23,927 Income tax (expense) benefit ( 55 ) ( 235 ) ( 250 ) 350 ( 2,820 ) ( 6,215 ) ( 3,125 ) ( 6,100 ) Net income (loss) $ 232 $ 700 $ 86 $ ( 1,301 ) $ 12,

View Full Filing

View this 10-Q filing on SEC EDGAR