Daily Journal Swings to Loss

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Daily Journal Corp. swung to a loss in the nine months ended June 30 despite an increase in revenue, the company announced Monday.

The downtown L.A. publishing company reported a pretax loss of $46,000 for the nine months ended June 30, compared with pretax net income of $4.1 million in the same period a year earlier. Revenue rose 20 percent to $31.9 million.

Daily Journal publishes its namesake legal trade newspaper in Los Angeles and also owns other properties including California Lawyer Magazine.

The company said the recent loss was due to a decrease in trustee sale notices in its newspapers. Revenue rose thanks in part to the company’s acquisition of case management software company ISD late last year.

The unusual nine-month period was due to reporting delays. Daily Journal had fallen behind on filing its reports with the Securities Exchange Commission. The company became subject to more stringent reporting guidelines due to the increasing value of the company’s investment portfolio, managed by Chairman Charlie Munger.

The company last week released quarterly reports to catch up with its required filings. The most recent quarter was reported on Monday.

Daily Journal said with the filing of the most recent financial results it is now current with the SEC.

Earnings were reported after markets closed. Daily Journal shares had risen 4 percent to $203.75 in Monday trading on the Nasdaq.

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