Daily Journal (DJCO) investor relations material

Executive summary

• Consolidated revenues rose to $19.5 million, up 9.4%–10% year-over-year, driven by Journal Technologies and advertising growth in the Traditional Business.

• Net loss was $8.0 million for the quarter, compared to net income of $10.9 million in the prior-year period, primarily due to $11.7 million in unrealized losses on marketable securities.

• Journal Technologies accounted for 78% of total revenues, with strong growth in licensing, maintenance, and public service fees.

• Basic and diluted EPS were $(5.79), down from $7.91 in the prior year.

Financial highlights

• Operating expenses increased 12% to $19.1 million, mainly from higher salaries, outside services, and administrative costs.

• Journal Technologies revenue grew 12% to $15.2 million, led by higher e-filing, recurring license, and maintenance fees.

• Traditional Business advertising and circulation revenue increased 6% to $4.4 million.

• Income from operations was $0.5 million, down from $0.7 million, due to higher personnel and professional expenses.

• Net cash used in operating activities was $1.9 million, compared to $2.2 million provided in the prior-year quarter.

Outlook and guidance

• Management expects to fund operations through cash flows and current working capital, with flexibility to borrow against or sell marketable securities if needed.

• No formal forward-looking financial guidance was provided.