Business News

Daily Journal Corporation Announces Financial Results for the Three Months ended December 31, 2008

Monday 16. February 2009 - Consolidated revenues of Daily Journal Corporation (NASDAQ:DJCO) were $9,811,000 and $8,986,000 for the three months ended December 31, 2008 and 2007, respectively.

This increase of $825,000 (9%) was primarily from an increase in public notice advertising revenues of $1,164,000. The Company continued to benefit from the large number of foreclosure sales in California and Arizona, for which public notice advertising is required by law. Display advertising revenues decreased by $182,000 (15%). Classified advertising revenues decreased by $393,000 (40%) primarily due to a downturn in the employment advertising marketplace.

During the three months ended December 31, 2008, consolidated pretax income increased by $718,000 (34%) to $2,843,000 from $2,125,000. The Company?s traditional business segment pretax profit increased by $613,000 (27%) to $2,907,000 from $2,294,000 primarily because of the increase in trustee foreclosure sale notices, partially offset by the decrease in commercial advertising revenues. Sustain?s business segment pretax loss decreased $105,000 (62%) to $64,000 from $169,000, primarily because of increased consulting revenues.

Consolidated net income was $1,748,000 and $1,275,000 for the three months ended December 31, 2008 and 2007, respectively. Net income per share increased to $1.22 from $.88.

Reportable Segments Total Results
Traditional Business
Sustain

for both Segments

Three months ended December 31, 2008
Revenues $ 8,728,000 $ 1,083,000 $ 9,811,000
Pretax income (loss) 2,907,000 (64,000 ) 2,843,000
Income tax benefit (provision) (1,120,000 ) 25,000 (1,095,000 )
Net income (loss) 1,787,000 (39,000 ) 1,748,000

Three months ended December 31, 2007
Revenues $ 8,086,000 $ 900,000 $ 8,986,000
Pretax income (loss) 2,294,000 (169,000 ) 2,125,000
Income tax benefit (expense) (925,000 ) 75,000 (850,000 )
Net income (loss) 1,369,000 (94,000 ) 1,275,000
Daily Journal Corporation publishes newspapers and web sites covering California and Arizona, as well as the California Lawyer and 8-K magazines, and produces several specialized information services. Sustain Technologies, Inc., a wholly-owned subsidiary, supplies case management software systems and related products to courts and other justice agencies, including district attorney offices and administrative law organizations.