Daily Journal Corporation Announces Financial Results for the Six Months ended March 31, 2020
Rhea-AI Summary
During the six months ended March 31, 2020, Daily Journal Corporation (NASDAQ:DJCO) reported consolidated revenues of $24,033,000, up from $21,140,000 in the same period last year. This growth was driven by increased revenues from Journal Technologies and the Traditional Business. However, the company faced a significant $57,680,000 unrealized loss on investments due to market declines, which impacted its financial results. The company recorded a pretax loss of $57,696,000 but benefited from a $15,580,000 income tax benefit.
Positive
- Revenue increased to $24,033,000 from $21,140,000 year-over-year.
- Traditional Business improved pretax income to $115,000 from a loss of $189,000.
Negative
- Recorded a significant unrealized loss of $57,680,000 on marketable securities.
- Total pretax loss of $57,696,000 for the six months ended March 31, 2020.
- Potential reduction in future dividend income due to market losses.
News Market Reaction – DJCO
In the trading session that priced this news, DJCO declined 2.20%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
LOS ANGELES, May 11, 2020 (GLOBE NEWSWIRE) -- During the six months ended March 31, 2020, Daily Journal Corporation (NASDAQ:DJCO) had consolidated revenues of
The Traditional Business had pretax income of
The Company believes that the Coronavirus pandemic has had, and will continue to have, a significant impact on the Company’s business. For the six months ended March 31, 2020, the Company experienced a material negative impact on its financial results primarily because of the recording of the unrealized losses on investments of
For the six months ended March 31, 2020, the Company recorded an income tax benefit of
The CARES Act, which was signed into law on March 27, 2020, contains two federal tax provisions beneficial to the Company. One provision provides that net operating losses arising in tax years beginning in 2018, that were previously only available to be carried forward, can now be carried back to the five previous years. In addition, any alternative minimum tax credits carried forward from prior years can be claimed as a refund in years beginning in 2018. Consequently, the Company recorded a tax benefit resulting from carrying back a portion of the net operating loss generated in fiscal 2019 to fiscal 2014. The Company anticipates receiving a refund for all taxes and alternative minimum taxes paid in fiscal 2014. The resulting tax benefit from carrying back the net operating loss is primarily attributable to the difference in the federal tax rates of
For the six months ended March 31, 2019, the Company recorded an income tax benefit of
For risk factors associated with the Company’s businesses, please see “Item 1A – Risk Factors” of the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2019, as well as the information relating to the Coronavirus pandemic contained in “Item 1A – Risk Factors” on the Company’s Form 10-Q for the six-month period ended March 31, 2020.
**********
Daily Journal Corporation publishes newspapers and web sites covering California and Arizona, and produces several specialized information services. Journal Technologies, Inc. is a wholly-owned subsidiary and supplies case management software systems and related products to courts and other justice agencies.
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain statements contained in this press release are “forward-looking” statements that involve risks and uncertainties that may cause actual future events or results to differ materially from those described in the forward-looking statements. Words such as “expects,” “intends,” “anticipates,” “should,” “believes,” “will,” “plans,” “estimates,” “may,” variations of such words and similar expressions are intended to identify such forward-looking statements. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments, or otherwise. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to have been correct. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in documents we file with the Securities and Exchange Commission.
# # #
Contact: Tu To (213) 229-5436