What changed in this filing

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Item 1. Business

2021-12-17 compared with 2020-12-17 · 25 added, 37 removed, 211 unchanged (23% of the section changed)

4 unchanged sentences

(“Journal Technologies”), a wholly-owned subsidiary of the Company, supplies case management software systems and related products to courts, prosecutor and public defender offices, probation departments and other justice agencies, including administrative law organizations, city and county governments and bar associations.

These organizations use the Journal Technologies family of products to help manage cases and information electronically, to interface with other critical justice partners and to extend electronic services to the public, including efiling and a website to pay traffic citations and fees online, and bar members.

These products are licensed to more than 500 organizations in 42 states and internationally.

These products are licensed in 42 states and internationally.

Essentially all of the Company’s U.S.

31 unchanged sentences

The Daily Journals.

   The Los Angeles Daily Journal and the San Francisco Daily Journal (together, “The Daily Journals”) are each published every weekday except certain holidays and were established in 1888 and 1893, respectively.

In addition to covering state and local news of general interest, these newspapers focus on law and its impact on society.

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The gross revenues generated directly by The Daily Journals are attributable approximately 59% to subscriptions and 41% to the sale of advertising and other revenues.

Revenues from The Daily Journals constituted approximately 14% of the Company's total fiscal 2020 revenues and 16% in 2019.

It is the policy of The Daily Journals (1) to take no editorial position on the legal and political controversies of the day but instead to publish well-written editorial views of others on many sides of a controversy, and (2) to try to report on factual events with technical competence, objectivity and accuracy.

It is believed that this policy suits a professional readership of exceptional intelligence and education, which is the target readership for the newspapers.

Moreover, the Company believes that The Daily Journals bear a duty to their readership, particularly judges and justices, as a self-imposed public trust, regardless, within reason, of short-term income penalties.

The Company believes that this policy of The Daily Journals is in the long-term interest of the Company’s shareholders.

Revenues from The Daily Journals constituted approximately ‐‐14% of the Company's total revenues in both fiscal 2021 and 2020.

The Daily Journals include the Daily Appellate Report, providing full text and case summaries of all opinions certified for publication by the California Supreme Court, the California Courts of Appeal, the U.S.

59 unchanged sentences

(4) the Ninth Circuit and the Central District of California.

The single volumes are normally updated or replaced when there are rule changes.

The single volumes are replaced when there are rule changes.

The Judicial Profiles service contains information concerning nearly all active judges in California.

1 unchanged sentence

Subscribers may purchase the ten-volume set for Southern California, the eight-volume set for Northern California or individual profiles online.

The Company also provides online foreclosure information to about seven customers.

This service primarily provides distressed property information, some of which also appears in some of the Company's newspapers.

Advertising and Newspaper Representative.

The Company's publications carry commercial advertising and public notice advertising.

Commercial advertising consists of display and classified advertising and constituted about 4% of the Company’s total operating revenues in fiscal 2020 and 6% in 2019.

Classified advertising revenues have continued to decline primarily due to the continued downturn in the employment advertising marketplace and online competition.

Commercial advertising consists of display and classified advertising and constituted about 4% of the Company’s total operating revenues in both fiscal 2021 in 2020.

Classified advertising revenues have continued to decline primarily due to online competition.

Public notice advertising consists of many different types of legal notices required by law to be published in an adjudicated newspaper of general circulation, including notices of death, fictitious business names, trustee sale notices and notices of governmental hearings.

3 unchanged sentences

CNSB places public notices and other forms of advertising with adjudicated newspapers of general circulation, most of which are not owned by the Company, and produces a legal advertising page for some other newspapers.

Public notice advertising revenues and related advertising and other service fees, including trustee sales legal advertising revenues, constituted about 15% of the Company's total operating revenues in fiscal 2020 and 18% in 2019.

Public notice advertising revenues and related advertising and other service fees, including trustee sales legal advertising revenues, constituted about ‐‐17% of the Company's total operating revenues in fiscal 2021 and 15% in 2020.

Most of these revenues were generated by (i) notices published in the Company’s newspapers, (ii) commissions and similar fees received from other publications in which the advertising was placed, and (iii) service fees to file notices with government agencies.

Trustee sales legal advertising revenues alone represented about 1% of the Company’s total operating revenues in fiscal 2020 and 2% in 2019.

For several years, these revenues were driven by the large number of foreclosures in California and Arizona, for which public notice advertising is required by law, but the number of foreclosures has continued to decline since 2010.

In addition, in many states, including California and Arizona, legislatures have considered various proposals which would result in the elimination or reduction of the amount of public notice advertising required by statute, and Arizona approved one such proposal effective in 2017 that virtually eliminated the publication of one particular notice type.

There is a risk that such laws could change in a manner that would have a significant adverse impact on the Company’s public notice advertising revenues.

Other revenues are attributable to service fees from users of an online foreclosure/fictitious business name databases, fees from attorneys taking continuing legal education tests published in The Daily Journals and online, and other miscellaneous fees.

For several years, trustee sales legal advertising revenues were driven by the large number of foreclosures in California and Arizona, for which public notice advertising is required by law.

Recently, however, there have been far fewer foreclosures, and trustee sales legal advertising revenues represented only about 1% of the Company’s total operating revenues in both fiscal 2021 and 2020.

Journal Technologies

3 unchanged sentences

consulting fees paid by customers for installation, implementation and training services;

and fees generated by the use of secure websites through which the general public can pay traffic citations and fees and e-file cases. 

and fees generated by the use of secure websites through which the general public can pay traffic citations and e-file cases. 

Journal Technologies has the following main “eSeries”

19 unchanged sentences

and in “Outside services”

in the accompanying consolidated statements of comprehensive income (loss)), postage and paper costs are typically the next two largest expenses for The Traditional Business.

Paper and postage accounted for approximately 4% of our traditional publishing segment's operating costs in both fiscal 2020 and 2019.

Paper prices may fluctuate substantially in the future, and periodic postal rate increases could significantly impact income from operations.

Further, we may not be able to pass on such increases to our customers.

in the accompanying consolidated statements of comprehensive income), postage and paper costs are typically the next two largest expenses for The Traditional Business.

Paper and postage accounted for approximately 5% of our traditional publishing segment's operating costs in fiscal 2021 and 4% in fiscal 2020.

An adequate supply of newsprint and other paper is important to the Company's operations.

1 unchanged sentence

The Company has always been able to obtain sufficient newsprint for its operations, although past shortages of newsprint have sometimes resulted in higher prices.

The price of newsprint did not increase during fiscal 2020, but we anticipate future increases.

The price of newsprint increased by 7% toward the end of fiscal 2021.

We use the U.S.

8 unchanged sentences

Postal Service has increased postal rates.

(Decreases in the Company’s aggregate postage costs during fiscal 2020 were primarily due to subscriber loss and increased online-only subscribers during the COVID-19 period.)   

During fiscal 2021, postage increased by $23,000 (6%) to $436,000 from $413,000.

The Company actively promotes its individual newspapers and its multiple newspaper network as well as its other publications.

2 unchanged sentences

In marketing products, the Company also focuses on its ancillary products which can be of service to subscribers, such as its specialized information services.

The Company receives, on a non-exclusive basis, public notice advertising for a number of service providers.

Such agencies ordinarily receive a commission of 15% to 25% on their sales of advertising in Company publications.

The Company receives, on a non-exclusive basis, public notice advertising from a number of service providers.

Such agencies ordinarily receive a commission of 15% to 25% on their sales of advertising in Company and other publications.

Commercial advertising agencies also place advertising in Company publications and receive commissions for advertising sales.

5 unchanged sentences

The Daily Journals face aggressive competition in Los Angeles and San Francisco.

All of the Company's business publications and products face strong competition from other publications and service companies.

All of the Company's publications and products face strong competition from other publications and service companies.

Readers of specialized newspapers focus on the amount and quality of general and specialized news, amount and type of advertising, timely delivery and price.

23 unchanged sentences

versions of case management systems will find general acceptance and whether the update, upgrade and modification of such systems can be done in a cost-effective manner.

To focus on supporting the Company’s main eSeries products, the Company has announced an end to the maintenance of legacy software products purchased as part of the New Dawn and ISD acquisitions in fiscal 2013 on June 30, 2021.

The Company competes on a variety of factors, including price, technological capabilities and services to accommodate the individual requirements of each customer.

4 unchanged sentences

Working Capital

Traditionally, the Company had generated sufficient cash flow and dividends from operations to cover all its needs without significant borrowing.

The Company owns marketable securities with significant appreciation, providing the Company with additional working capital, subject, of course, to the normal risks associated with owning securities.

To a considerable extent, the Company also benefits from the fact that subscriptions and some licenses, maintenance, customer support and consulting fees are paid in advance.

Traditionally, the Company had generated sufficient cash flow from operations to cover all its needs without significant borrowing.

The Company owns marketable securities with dividends and significant appreciation, providing the Company with additional working capital, subject, of course, to the normal risks associated with owning securities.

To a considerable extent, the Company also benefits from the fact that subscriptions and some licenses, maintenance, customer support and some are paid in advance.

In fiscal 2013, the Company borrowed $14 million from its investment margin account to purchase all of the outstanding stock of New Dawn Technologies, Inc.

3 unchanged sentences

If the Company’s overall cash needs exceed cash flow and its current working capital, the Company may still have the ability to borrow against its marketable securities on favorable terms, or it may attempt to secure additional financing which may or may not be available on acceptable terms.

The Company has sold some securities and could sell additional marketable securities to generate cash, if necessary.

The Company extends unsecured credit to most of its advertising customers.

The Company extends unsecured credit to most of its advertising customers and some government agencies.

The Company maintains a reserve account for estimated losses resulting from the inability of these customers to make required payments, but if the financial conditions of these customers were to deteriorate or the Company’s judgments about their abilities to pay are incorrect, additional allowances might be required, and the Company’s cash flows and results of operations could be materially affected.

1 unchanged sentence

The Company has experienced the effects of inflation primarily through increases in costs of personnel.

These costs have generally been offset by increased license, maintenance and support fees, which often contain a periodic cost-of- living adjustment.   

These costs have generally been offset by increased license, maintenance and support fees, which often contain a periodic cost-of-living adjustment.

Access to Our Information

     The Company files annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission (“SEC”).

These filings are not available on our website, www.dailyjournal.com , which is generally dedicated to the content of our publications and services.

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business