Value Line Inc. Reports Q3 FY24 Results

TL;DR

Value Line Inc. reported a decrease in revenue and net income for the nine months ended January 31, 2024, while maintaining flat EPS and zero debt.

AI Summary

VALUE LINE INC (VALU) filed a Quarterly Report (10-Q) with the SEC on March 15, 2024. Revenue for the nine months ended January 31, 2024, was $4,739,000, a decrease from $7,240,000 in the prior year period. Net income for the nine months ended January 31, 2024, was $33,000, down from $36,000 in the prior year period. Earnings per share (EPS) for the nine months ended January 31, 2024, was $0.10, unchanged from the prior year period. Total assets as of January 31, 2024, were $573,017, compared to $565,460 as of April 30, 2023. Total debt as of January 31, 2024, was $0, unchanged from April 30, 2023.

Why It Matters

For investors and stakeholders tracking VALUE LINE INC, this filing contains several important signals. The decline in revenue and net income suggests potential headwinds in the company's subscription and licensing business segments. The company's stable EPS and lack of debt indicate financial resilience despite revenue challenges.

Risk Assessment

Risk Level: low — VALUE LINE INC shows low risk based on this filing. The company has minimal debt and a stable EPS, indicating low financial risk despite a recent revenue decline.

Analyst Insight

Consider monitoring subscription and licensing revenue trends in the next quarter to assess the impact of market conditions on Value Line's core business.

Revenue Breakdown

Key Numbers

• 4,739,000 — Revenue (Nine months ended January 31, 2024)
• 7,240,000 — Revenue (Nine months ended January 31, 2023)
• 33,000 — Net Income (Nine months ended January 31, 2024)
• 36,000 — Net Income (Nine months ended January 31, 2023)
• 0.10 — EPS (Nine months ended January 31, 2024)
• 0.10 — EPS (Nine months ended January 31, 2023)
• 573,017 — Total Assets (As of January 31, 2024)
• 0 — Total Debt (As of January 31, 2024)

Key Players & Entities

• VALUE LINE INC (company) — Filer
• 0000717720 (company) — Central Index Key
• NY (location) — State of Incorporation
• 212 907-1500 (phone) — Business Phone
• EAM (company) — Related entity in liabilities note
• VLI (company) — Related entity in liabilities note

FAQ

Risk Factors

• Revenue Decline [medium — financial]: Revenue for the nine months ended January 31, 2024, decreased to $4,739,000 from $7,240,000 in the prior year period.
• Net Income Decrease [medium — financial]: Net income for the nine months ended January 31, 2024, decreased to $33,000 from $36,000 in the prior year period.

Key Financial Figures

• $0.10 — nge on which registered Common stock, $0.10 par value per share VALU The Nasdaq
• $0.28 — ividends declared per common share were $0.28 for the three months ending July 31, 20
• $0.56 — ividends declared per common share were $0.56 for the six months ending October 31, 2
• $0.84 — ividends declared per common share were $0.84 for the nine months ending January 31,
• $0.25 — ividends declared per common share were $0.25 for the three months ending July 31, 20
• $0.50 — ividends declared per common share were $0.50 for the six months ending October 31, 2
• $0.75 — ividends declared per common share were $0.75 for the nine months ending January 31,

Filing Documents

• valu20240131_10q.htm (10-Q) — 1471KB
• ex_637050.htm (EX-31.1) — 16KB
• ex_637051.htm (EX-31.2) — 16KB
• ex_637052.htm (EX-32.1) — 14KB
• image01.jpg (GRAPHIC) — 3KB
• imageb.jpg (GRAPHIC) — 3KB
• 0001437749-24-008060.txt ( ) — 6509KB
• valu-20240131.xsd (EX-101.SCH) — 60KB
• valu-20240131_cal.xml (EX-101.CAL) — 61KB
• valu-20240131_def.xml (EX-101.DEF) — 360KB
• valu-20240131_lab.xml (EX-101.LAB) — 305KB
• valu-20240131_pre.xml (EX-101.PRE) — 398KB
• valu20240131_10q_htm.xml (XML) — 1016KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1. Consolidated Condensed Financial Statements Consolidated Condensed Balance Sheets as of January 31, 2024 and April 30, 2023 3 Consolidated Condensed Statements of Income for the three and nine months ended January 31, 2024 and January 31, 2023 4 Consolidated Condensed Statements of Comprehensive Income for the three and nine months ended January 31, 2024 and January 31, 2023 5 Consolidated Condensed Statements of Cash Flows for the nine months ended January 31, 2024 and January 31, 2023 6 Consolidated Condensed Statement of Changes in Shareholders' Equity for the three months ended July 31, 2023, six months ended October 31, 2023 and nine months ended January 31, 2024 7 Consolidated Condensed Statement of Changes in Shareholders' Equity for the three months ended July 31, 2022, six months ended October 31, 2022 and nine months ended January 31, 2023 8 Notes to Consolidated Condensed Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 33 Item 4.

Controls and Procedures

Controls and Procedures 35

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 35 Item 1A.

Risk Factors

Risk Factors 35 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 36 Item 4. Mine Safety Disclosures 36 Item 5. Other Information 36 Item 6. Exhibits 37

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements Value Line, Inc. Consolidated Condensed Balance Sheets (in thousands, except share amounts) January 31, April 30, 2024 2023 (unaudited) Assets Current Assets: Cash and cash equivalents (including short term investments of $ 4,739 and $ 7,240 , respectively) $ 5,780 $ 7,590 Equity securities 15,370 14,546 Available-for-sale Fixed Income securities 46,149 39,928 Accounts receivable, net of allowance for credit losses of $ 33 and $ 36 , respectively 1,302 2,124 Prepaid and refundable income taxes 6 425 Prepaid expenses and other current assets 1,090 1,463 Total current assets 69,697 66,076 Long term assets: Investment in EAM Trust 59,640 58,775 Restricted money market investments 305 305 Property and equipment, net 4,797 5,788 Capitalized software and other intangible assets, net 102 132 Total long term assets 64,844 65,000 Total assets $ 134,541 $ 131,076 Liabilities and Shareholders' Equity Current Liabilities: Accounts payable and accrued liabilities $ 1,094 $ 1,263 Accrued salaries 920 961 Dividends payable 2,639 2,642 Accrued taxes on income 192 307 Operating lease obligation-short term 1,241 1,344 Unearned revenue 15,953 16,771 Total current liabilities 22,039 23,288 Long term liabilities: Unearned revenue 6,544 6,202 Operating lease obligation-long term 3,890 4,784 Deferred income taxes 12,822 13,129 Total long term liabilities 23,256 24,115 Total liabilities 45,295 47,403 Shareholders' Equity: Common stock, $ 0.10 par value; authorized 30,000,000 shares; issued 10,000,000 shares 1,000 1,000 Additional paid-in capital 991 991 Retained earnings 102,292 95,979 Treasury stock, at cost ( 573,017 shares and 565,460 shares, respectively) ( 15,009 ) ( 14,671 ) Accumulated other comprehensive income, net of tax ( 28 ) 374 Total shareholders' equity 89,246 83,673 Total liabilities and shareholders' equity $ 134,541 $

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements Value Line, Inc. Consolidated Condensed Statements of Income (in thousands, except share & per share amounts) (unaudited) For the Three Months Ended For the Nine Months Ended January 31, January 31, 2024 2023 2024 2023 Revenues: Investment periodicals and related publications $ 6,319 $ 6,592 $ 19,174 $ 19,795 Copyright fees 2,812 3,375 9,310 10,182 Total publishing revenues 9,131 9,967 28,484 29,977 Expenses: Advertising and promotion 782 703 2,139 2,247 Salaries and employee benefits 3,719 3,758 11,156 11,574 Production and distribution 1,219 1,371 4,094 3,829 Office and administration 1,179 1,151 3,442 3,614 Total expenses 6,899 6,983 20,831 21,264 Income from operations 2,232 2,984 7,653 8,713 Revenues and profits interests in EAM Trust 3,489 2,685 9,341 8,516 Investment gains/(losses) 2,009 1,250 1,685 1,276 Income before income taxes 7,730 6,919 18,679 18,505 Income tax provision 1,845 1,671 4,447 4,469 Net income $ 5,885 $ 5,248 $ 14,232 $ 14,036 Earnings per share, basic & fully diluted $ 0.62 $ 0.55 $ 1.51 $ 1.48 Weighted average number of common shares 9,426,983 9,456,877 9,429,575 9,465,955 The accompanying notes are an integral part of these consolidated condensed financial statements. 4

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements Value Line, Inc. Consolidated Condensed Statements of Comprehensive Income (in thousands) (unaudited) For the Three Months Ended For the Nine Months Ended January 31, January 31, 2024 2023 2024 2023 Net income $ 5,885 $ 5,248 $ 14,232 $ 14,036 Other comprehensive income/(loss), net of tax: Change in unrealized gains/(losses) on Fixed Income securities, net of tax 258 123 ( 402 ) 125 Other comprehensive income/(loss) 258 123 ( 402 ) 125 Comprehensive income $ 6,143 $ 5,371 $ 13,830 $ 14,161 The accompanying notes are an integral part of these consolidated condensed financial statements. 5

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements Value Line, Inc. Consolidated Condensed Statements of Cash Flows (in thousands) (unaudited) For the Nine Months Ended January 31, 2024 2023 Cash flows from operating activities: Net income $ 14,232 $ 14,036 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,054 1,006 Investment (gains)/losses 133 ( 438 ) Non-voting revenues interest in EAM Trust ( 8,420 ) ( 7,917 ) Non-voting profits interest in EAM Trust ( 921 ) ( 599 ) Distributions received from EAM Trust 8,476 9,660 Deferred income taxes ( 190 ) 57 Deferred rent ( 997 ) ( 920 ) Changes in operating assets and liabilities: Unearned revenue ( 476 ) ( 1,010 ) Accounts payable & accrued expenses ( 169 ) ( 195 ) Accrued salaries ( 41 ) ( 20 ) Accrued taxes on income ( 126 ) 80 Prepaid and refundable income taxes 419 278 Prepaid expenses and other current assets 373 62 Accounts receivable 822 ( 102 ) Total adjustments ( 63 ) ( 58 ) Net cash provided by operating activities 14,169 13,978 Cash flows from investing activities: Purchases of equity securities ( 2,073 ) ( 1,322 ) Purchases of fixed income securities classified as available-for-sale ( 38,855 ) ( 30,205 ) Proceeds from sales of equity securities 1,129 1,421 Proceeds from sales of fixed income securities classified as available-for-sale 32,113 9,907 Acquisition of property and equipment ( 14 ) ( 23 ) Expenditures for capitalized software ( 19 ) - Net cash used in investing activities ( 7,719 ) ( 20,222 ) Cash flows from financing activities: Purchase of treasury stock at cost ( 338 ) ( 4,487 ) Dividends paid ( 7,922 ) ( 7,111 ) Net cash used in financing activities ( 8,260 ) ( 11,598 ) Net change in cash and cash equivalents ( 1,810 ) ( 17,842 ) Cash, cash equivalents

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements Value Line, Inc. Consolidated Condensed Statement of Changes in Shareholders' Equity For the Three Months Ended July 31, 2023, Six Months Ended October 31, 2023, and Nine Months Ended January 31, 2024 (in thousands, except share amounts) (unaudited) Common stock Additional paid-in- Treasury stock Retained Accumulated other comprehensive Shares Amount capital Shares Amount earnings income Total Balance at April 30, 2023 10,000,000 $ 1,000 $ 991 ( 565,460 ) $ ( 14,671 ) $ 95,979 $ 374 $ 83,673 Net income 4,859 4,859 Change in unrealized gains on Fixed Income securities, net of taxes ( 212 ) ( 212 ) Purchase of treasury stock ( 4,011 ) ( 188 ) ( 188 ) Dividends declared ( 2,641 ) ( 2,641 ) Balance at July 31, 2023 10,000,000 $ 1,000 $ 991 ( 569,471 ) $ ( 14,859 ) $ 98,197 $ 162 $ 85,491 Dividends declared per common share were $0.28 for the three months ending July 31, 2023. Common stock Additional paid-in- Treasury stock Retained Accumulated other comprehensive Shares Amount capital Shares Amount earnings income Total Balance at July 31, 2023 10,000,000 $ 1,000 $ 991 ( 569,471 ) $ ( 14,859 ) $ 98,197 $ 162 $ 85,491 Net income 3,488 3,488 Change in unrealized gains on Fixed Income securities, net of taxes ( 448 ) ( 448 ) Purchase of treasury stock ( 3,546 ) ( 150 ) ( 150 ) Dividends declared ( 2,639 ) ( 2,639 ) Balance at October 31, 2023 10,000,000 $ 1,000 $ 991 ( 573,017 ) $ ( 15,009 ) $ 99,046 $ ( 286 ) $ 85,742 Dividends declared per common share were $0.56 for the six months ending October 31, 2023. Common stock Additional paid-in- Treasury stock Retained Accumulated other comprehensive Shares Amount capital Shares Amount earnings income Total Balance at October 31, 2023 1

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements Value Line, Inc. Consolidated Condensed Statement of Changes in Shareholders' Equity For the Three Months Ended July 31, 2022, Six Months Ended October 31, 2022 and Nine Months Ended January 31, 2023 (in thousands, except share amounts) (unaudited) Common stock Additional paid-in- Treasury stock Retained Accumulated other comprehensive Shares Amount capital Shares Amount earnings income Total Balance at April 30, 2022 10,000,000 $ 1,000 $ 991 ( 490,157 ) $ ( 9,967 ) $ 87,645 $ ( 24 ) $ 79,645 Net income 4,458 4,458 Change in unrealized gains on Fixed Income securities, net of taxes 5 5 Purchase of treasury stock ( 35,029 ) ( 2,382 ) ( 2,382 ) Dividends declared ( 2,369 ) ( 2,369 ) Balance at July 31, 2022 10,000,000 $ 1,000 $ 991 ( 525,186 ) $ ( 12,349 ) $ 89,734 $ ( 19 ) $ 79,357 Dividends declared per common share were $0.25 for the three months ending July 31, 2022. Common stock Additional paid-in- Treasury stock Retained Accumulated other comprehensive Shares Amount capital Shares Amount earnings income Total Balance at July 31, 2022 10,000,000 $ 1,000 $ 991 ( 525,186 ) $ ( 12,349 ) $ 89,734 $ ( 19 ) $ 79,357 Net income 4,330 4,330 Change in unrealized gains on Fixed Income securities, net of taxes ( 3 ) ( 3 ) Purchase of treasury stock ( 17,314 ) ( 1,100 ) ( 1,100 ) Dividends declared ( 2,364 ) ( 2,364 ) Balance at October 31, 2022 10,000,000 $ 1,000 $ 991 ( 542,500 ) $ ( 13,449 ) $ 91,700 $ ( 22 ) $ 80,220 Dividends declared per common share were $0.50 for the six months ending October 31, 2022. Common stock Additional paid-in- Treasury stock Retained Accumulated other comprehensive Shares Amount capital Shares Amount earnings income Total Balance at October 31, 2022

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View this 10-Q filing on SEC EDGAR