Daily Journal Corp. Q3 2024: Modest Revenue Growth in Tech Segment

TL;DR

DJCO Q3: Tech revenue up slightly to $0.01M for 9 months. CEO event noted.

AI Summary

Daily Journal Corp. reported its Q3 2024 results for the period ending June 30, 2024. The company's Journal Technologies segment generated $0.01 million in sales revenue for the nine months ended June 30, 2024, a slight increase from the prior year. The company also noted a subsequent event related to its Chief Executive Officer.

Why It Matters

This filing provides insight into the financial performance of Daily Journal Corp.'s technology division, which may be a key growth area for the company.

Risk Assessment

Risk Level: low — The filing is a standard quarterly report with no immediate red flags or significant negative financial events.

Key Numbers

• $0.01M — Journal Technologies Sales Revenue (Nine months ended June 30, 2024)
• $0.01M — Journal Technologies Sales Revenue (Nine months ended June 30, 2023)

Key Players & Entities

• DAILY JOURNAL CORP (company) — Filer
• 20240630 (date) — Reporting Period End Date
• $0.01 million (dollar_amount) — Journal Technologies Sales Revenue (9 months ended 06/30/2024)
• Journal Technologies (company) — Business Segment
• Chief Executive Officer (person) — Mentioned in Subsequent Event

FAQ

Filing Documents

• djco20240630_10q.htm (10-Q) — 1233KB
• ex_712540.htm (EX-31) — 26KB
• ex_712541.htm (EX-32) — 9KB
• 0001437749-24-026890.txt ( ) — 5288KB
• djco-20240630.xsd (EX-101.SCH) — 30KB
• djco-20240630_def.xml (EX-101.DEF) — 260KB
• djco-20240630_lab.xml (EX-101.LAB) — 205KB
• djco-20240630_pre.xml (EX-101.PRE) — 281KB
• djco-20240630_cal.xml (EX-101.CAL) — 45KB
• djco20240630_10q_htm.xml (XML) — 914KB

Financial Information

PART I Financial Information

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Consolidated Balance Sheets June 30, 2024 and September 30, 2023 3 Consolidated Statements of Income and Comprehensive Income Three months ended June 30, 2024 and 2023 4 Consolidated Statements of Income and Comprehensive Income Nine months ended June 30, 2024 and 2023 5 Consolidated Statements of Shareholders' Equity Nine months ended June 30, 2024 and 2023 6 Consolidated Statements of Cash Flows Nine months ended June 30, 2024 and 2023 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 16

Controls and Procedures

Item 4. Controls and Procedures 26

Other Information

Part II Other Information

Exhibits

Item 6. Exhibits 27 2 PART I

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS DAILY JOURNAL CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) June 30 September 30 2024 2023 ASSETS Current assets Cash and cash equivalents $ 9,991,000 $ 20,844,000 Restricted cash 2,168,000 2,100,000 Non-qualified deferred compensation plan - trust account asset value 716,000 194,000 Marketable securities at fair value -- common stocks 325,021,000 303,128,000 Accounts receivable, less allowance for doubtful accounts of $ 250,000 at June 30, 2024 and September 30, 2023 22,090,000 18,687,000 Inventories 35,000 72,000 Prepaid expenses and other current assets 518,000 380,000 Total current assets 360,539,000 345,405,000 Property, plant and equipment, at cost Land, buildings and improvements 16,418,000 16,400,000 Furniture, office equipment and computer software 1,685,000 1,703,000 Machinery and equipment 1,521,000 1,521,000 19,624,000 19,624,000 Less accumulated depreciation ( 10,453,000 ) ( 10,264,000 ) 9,171,000 9,360,000 Operating lease right-of-use assets 151,000 95,000 Total assets $ 369,861,000 $ 354,860,000 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 6,776,000 $ 6,643,000 Accrued liabilities 7,691,000 8,789,000 Income tax payable 1,916,000 1,069,000 Note payable collateralized by real estate 162,000 158,000 Deferred subscriptions 2,771,000 2,678,000 Deferred consulting fees 4,102,000 5,828,000 Deferred maintenance agreements and others 18,593,000 17,033,000 Total current liabilities 42,011,000 42,198,000 Long term liabilities Investment margin account borrowings 27,500,000 75,000,000 Note payable collateralized by real estate 997,000 1,120,000 Deferred maintenance agreements 526,000 1,000,000 Accrued liabilities 2,879,000 4,274,000 Accrued non-qualified deferred compensation 652,000 200,000 Deferred income taxes 43,442,000 30,599

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1 - The Corporation and Operations Daily Journal Corporation ("Daily Journal" or "the Company") 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 present fairly the financial position of the Company as of June 30, 2024 and September 30, 2023, the results of operations and consolidated statements of shareholders' equity for the three- and nine-month periods ended June 30, 2024 and 2023, and cash flows for the nine-month periods ended June 30, 2024 and 2023. The resu

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