Daily Journal Corp., the California publisher that counts Charles Munger as its chairman, missed an accelerated deadline for releasing its annual filing with the U.S. Securities and Exchange Commission.
The surge in the company’s shares, a 61 percent rally this year through Dec. 13, means the publisher has 75 days after the end of its fiscal year to file the report, rather than the previous window of 90 days, Los Angeles-based Daily Journal said in a filing today. The new designation as an “accelerated filer” also requires an assessment of internal control over financial reporting and the related audit.
The publisher “will be unable to file its Form 10-K for the fiscal year ended September 30, 2013 within the prescribed time frame because the company requires additional time to complete its assessment,” according to today’s filing. “Due to a significant increase in the company’s stock price in 2013, the company no longer qualifies as a smaller reporting company and is now an accelerated filer for the first time.”
Munger, 89, best known as Warren Buffett’s longtime business partner, helped fuel gains in the publisher’s market value by managing its investments along with Vice Chairman J.P. Guerin. The company began accumulating equities in early 2009 as markets plunged. The stock portfolio, acquired at a cost of $44.8 million, had unrealized gains of more than $76 million as of June 30, according to a regulatory filing.
Accelerated filers have market value of at least $75 million held by non-affiliates, according to the SEC’s website. Daily Journal has a market value of about $200 million, according to data compiled by Bloomberg. Munger, Guerin and Gerald Salzman, a director, hold more than 20 percent of the stock, the data show. A trust tied to the Guerin family was also listed last December as one of the top shareholders.
The 10-K will be ready by 15 days after the due date, according to today’s filing. Judy Burns, a spokeswoman for the SEC, declined to comment as did the Daily Journal’s Tu To. Daily Journal covers the law, business and real estate at its newspapers and California Lawyer magazine.