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LOS ANGELES, Aug. 14, 2024 (GLOBE NEWSWIRE) -- During the nine months ended June 30, 2024, Daily Journal Corporation (NASDAQ:DJCO) had consolidated revenues of $50,058,000 as compared to $46,159,000 in the prior year period. This increase of $3,899,000 was primarily from increases in (i) Journal Technologies’ license and maintenance fees of $3,438,000, and other public service fees of $1,251,000, partially offset by decreased consulting fees of $1,209,000, and (ii) the Traditional Business’ advertising revenues of $441,000.
The Traditional Business’ pretax income decreased by $711,000 to $1,601,000 from $2,312,000 in the prior fiscal year period. This decrease was primarily from increased accrued personnel costs of $1,030,000, partially offset by an increase in revenues of $419,000 and a larger reduction of $585,000 to the long-term supplemental compensation accrual to arrive at a reduction of $1,380,000 as compared with a reduction of $795,000 in the prior fiscal year period. Journal Technologies’ business segment pretax income decreased by $165,000 to $745,000 from $910,000 in the prior fiscal year period primarily resulting from increased operating expenses of $3,645,000 mostly due to (i) increased personnel costs because of annual salary adjustments, (ii) additional contractor services and the hiring of additional staff members to strengthen operational efficiencies, conduct product development and address technical debt, and bolster teams working on the Company’s installation projects, and (iii) increased third-party hosting fees which were billed to clients. These increases in expenses were partially offset by increased operating revenues of $3,480,000.
At June 30, 2024, the Company held marketable securities valued at $325,021,000, including net pretax unrealized gains of $185,927,000, and accrued a deferred tax liability of $48,135,000, for estimated income taxes due only upon the sales of the net appreciated securities. During March 2024, the Company sold certain of its marketable securities for approximately $40,579,000, realizing net gains of $14,261,000, and used these proceeds and excess cash from operations to pay down the margin loan balance to $27,500,000 from $75,000,000 at September 30, 2023, aggregating a paydown of approximately $47,500,000 during the nine months ended June 30, 2024.
The Company’s non-operating income, net of expenses, increased by $31,494,000 to $65,849,000 from $34,355,000 in the prior fiscal year period primarily because of (i) the recording of realized net gains on sales of marketable securities of $14,261,000 as compared with $422,000 in the prior fiscal year period, and (ii) the recording of net unrealized gains on marketable securities of $48,211,000 as compared with $29,934,000 in the prior fiscal year period. These increases were partially offset by a decrease in dividends and interest income of $1,262,000 to $5,857,000 from $7,119,000.