Daily Journal Corporation reports revenue increase to $17.7 million; net income decreases to $10.9 million for Q4 2024.
Quiver AI Summary
Daily Journal Corporation reported consolidated revenues of $17,704,000 for the three months ending December 31, 2024, an increase from $15,993,000 in the previous year, largely fueled by higher license and maintenance fees from Journal Technologies and public service fees. Despite this revenue growth, the Traditional Business’ pretax income saw a slight decline due to increased costs. Journal Technologies’ pretax income rose significantly owing to increased revenues, although it faced higher operating expenses. As of December 31, 2024, the company held $372,104,000 in marketable securities, with substantial unrealized gains and an associated deferred tax liability. Non-operating income decreased, leading to a consolidated pretax income of $14,895,000 and a net income of $10,895,000, compared to the previous fiscal year's figures. The income tax provision amounted to $4,000,000, resulting in an effective tax rate of 26.9%.
Potential Positives
- Consolidated revenues increased to $17,704,000 for the three months ended December 31, 2024, marking a significant growth of $1,711,000 compared to the prior year period.
- Journal Technologies’ segment saw a pretax income increase of $120,000 to $456,000, indicating strong operational performance in this area.
- The company’s marketable securities portfolio is valued at $372,104,000 with net pretax unrealized gains of $233,010,000, highlighting a strong asset position.
- Consolidated net income of $10,895,000 ($7.91 per share) demonstrates profitability despite a decrease from the previous fiscal year period.
Potential Negatives
- Consolidated net income decreased significantly to $10,895,000 ($7.91 per share) from $12,615,000 ($9.16 per share) in the prior fiscal year period, indicating lower profitability.
- The company experienced a decline in non-operating income, net of expenses, by $964,000, which signals potential weakening in ancillary financial performance.
- Overall effective tax rate increased to 26.9%, which could indicate higher tax liabilities relative to income, impacting net earnings.
FAQ
What were the consolidated revenues for Daily Journal Corporation in Q4 2024?
Daily Journal Corporation reported consolidated revenues of $17,704,000 for the three months ended December 31, 2024.
How much did Journal Technologies contribute to revenue growth?
Journal Technologies contributed an increase of $968,000 in license and maintenance fees to the revenue growth.
What factors affected pretax income for the Traditional Business segment?
Pretax income stayed relatively unchanged, with increased merchant discount fees and promotional expenses affecting it slightly.
What was the non-operating income for Daily Journal Corporation in Q4 2024?
The non-operating income, net of expenses, decreased to $14,153,000 compared to $15,117,000 in the previous fiscal year.
What was the overall effective tax rate for the company in Q4 2024?
The overall effective tax rate for the three months ended December 31, 2024, was 26.9%.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$DJCO Hedge Fund Activity
We have seen 44 institutional investors add shares of $DJCO stock to their portfolio, and 25 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- STATE STREET CORP added 3,670 shares (+11.1%) to their portfolio in Q4 2024, for an estimated $2,084,523
- DIMENSIONAL FUND ADVISORS LP added 3,635 shares (+10.6%) to their portfolio in Q4 2024, for an estimated $2,064,643
- UBS GROUP AG added 2,264 shares (+221.5%) to their portfolio in Q4 2024, for an estimated $1,285,929
- JPMORGAN CHASE & CO added 2,133 shares (+71.9%) to their portfolio in Q4 2024, for an estimated $1,211,522
- HRT FINANCIAL LP removed 1,670 shares (-62.5%) from their portfolio in Q4 2024, for an estimated $948,543
- RWWM, INC. removed 1,507 shares (-0.5%) from their portfolio in Q4 2024, for an estimated $855,960
- CAPITAL ADVANTAGE, INC. added 1,407 shares (+inf%) to their portfolio in Q4 2024, for an estimated $799,161
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
LOS ANGELES, Feb. 18, 2025 (GLOBE NEWSWIRE) -- During the three months ended December 31, 2024, Daily Journal Corporation (NASDAQ:DJCO) had consolidated revenues of $17,704,000 as compared to $15,993,000 in the prior year period. This increase of $1,711,000 was primarily from increases in (i) Journal Technologies’ license and maintenance fees of $968,000, and other public service fees of $1,242,000, partially offset by decreased consulting fees of $703,000, and (ii) the Traditional Business’ advertising revenues of $192,000 and advertising service fees and other of $27,000.
The Traditional Business’ pretax income remained relatively unchanged with a slight decrease of $1,000 primarily resulting from increased merchant discount fees, additional promotional expenses and postage, partially offset by increased revenues. Journal Technologies’ business segment pretax income increased by $120,000 to $456,000 from $336,000 in the prior fiscal year period primarily resulting from increased operating revenues of $1,507,000, partially offset by increased operating expenses of $1,387,000 primarily 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.
At December 31, 2024, the Company held marketable securities valued at $372,104,000, including net pretax unrealized gains of $233,010,000, and accrued a deferred tax liability of $60,810,000, for estimated income taxes due only upon the sales of the net appreciated securities.
The Company’s non-operating income, net of expenses, decreased by $964,000 to $14,153,000 from $15,117,000 in the prior fiscal year period primarily because of the recording of net unrealized gains on marketable securities of $13,413,000 as compared with $14,690,000 in the prior fiscal year period. There was also a decrease in dividends and interest income of $385,000 to $1,184,000 from $1,569,000.
Consolidated pretax income was $14,895,000, as compared to $15,740,000 in the prior fiscal year period. There was consolidated net income of $10,895,000 ($7.91 per share) for the three months ended December 31, 2024, as compared with $12,615,000 ($9.16 per share) in the prior fiscal year period.
For the three months ended December 31, 2024, the Company recorded an income tax provision of $4,000,000 on the pretax income of $14,895,000. The income tax provision consisted of tax provisions of $3,500,000 on the unrealized gains on marketable securities, $15,000 on income from foreign operations, $275,000 on income from U.S. operations and dividend income, $10,000 for the dividends received deduction and other permanent book and tax differences, and $200,000 for the effect of a change in state apportionment on the beginning of the year’s deferred tax liability. Consequently, the overall effective tax rate for the three months ended December 31, 2024 was 26.9%, after including the taxes on the unrealized gains on marketable securities.
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.
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