Core Insights - Value Line, Inc. (VALU) reported a net income of 60 cents per share for the fiscal second quarter, marking a 62% increase from 37 cents per share in the same quarter last year [1] - The company's overall net income rose to $5.7 million, up from $3.5 million in the previous year [3] - Revenue from non-voting revenues and profits interests in EULAV Asset Management (EAM) increased by 54.6% year-over-year to $4.6 million [2] Financial Performance - Retained earnings reached $110.2 million as of October 31, 2024, reflecting a 5.7% increase from April 30, 2024 [5] - Shareholders' equity grew by 6.5% to $96.7 million from $90.8 million as of April 30, 2024 [5] - Investment gains for the fiscal second quarter amounted to $1.2 million, a significant recovery from a loss of $1.1 million in the same period last year [8] Revenue Drivers - The substantial growth in EAM revenues and the reversal of prior investment losses into gains were key factors driving the increases in net income and revenues [7] - EAM-related revenue contributed to over 50% growth during the quarter, highlighting its importance to the company's financial performance [7] Management Insights - Management attributed the strong performance to the significant increase in EAM revenues and robust investment gains, emphasizing the strength of the asset management business [6] - The consistent growth in EAM-related revenue streams is seen as a critical component of Value Line's financial stability [6] Strategic Focus - Value Line is committed to enhancing its research offerings, with proprietary services attracting a diverse range of individual and institutional investors [9] - The company's ongoing investment in digital products and expanded service offerings underscores its dedication to maintaining market leadership [9]

Core Insights - Value Line, Inc. reported significant financial growth for the second fiscal quarter ended October 31, 2024, with net income increasing by 38.6% year-over-year [2] - The company's revenues from non-voting interests in EAM rose by 51.6%, indicating strong performance in this segment [2] - Total investment gains turned positive at $2,895,000 compared to a loss in the previous fiscal year, reflecting improved investment performance [2] Financial Performance - For the six months ended October 31, 2024, net income was $11,572,000, or $1.23 per share, compared to $8,347,000, or $0.89 per share, for the same period in 2023 [2] - Revenues for the same period were $8,871,000, an increase of $3,019,000 or 51.6% from the prior fiscal year [2] - Total investment gains for the six months were $2,895,000, a significant recovery from a loss of $324,000 in the previous year [2] Quarterly Highlights - In the three months ended October 31, 2024, net income was $5,685,000, or $0.60 per share, up 63.0% from $3,488,000, or $0.37 per share, in the same quarter of 2023 [2] - Revenues for this quarter reached $4,630,000, an increase of $1,635,000 or 54.6% year-over-year [2] - The company reported total investment gains of $1,186,000 for the quarter, compared to a loss of $1,079,000 in the prior year [2] Retained Earnings and Shareholders' Equity - Retained earnings as of October 31, 2024, were $110,170,000, reflecting a 5.7% increase from April 30, 2024 [2] - Shareholders' equity reached $96,715,000, a 6.5% increase from $90,793,000 as of April 30, 2024 [2] Company Overview - Value Line, Inc. is a prominent provider of investment research, known for its widely used Value Line Investment Survey [4] - The company offers a range of proprietary investment research products in both print and digital formats, catering to individual and institutional investors [4]

Financial Performance - For the six months ended October 31, 2024, the company's net income was $11,572,000, or $1.23 per share, representing a 38.6% increase from $8,347,000, or $0.89 per share, in the same period of 2023[164]. - During the three months ended October 31, 2024, the company's net income was $5,685,000, or $0.60 per share, which is 63.0% higher than $3,488,000, or $0.37 per share, for the same period in 2023[165]. - The company's income before income taxes for the three months ended October 31, 2024, was $7,560,000, reflecting a 64.7% increase from $4,590,000 in the same period of 2023[163]. - The company's income from operations for the six months ended October 31, 2024, was $3,591,000, a decrease of 33.8% from $5,421,000 in the same period of 2023[164]. Revenue and Expenses - Total publishing revenues for the six months ended October 31, 2024, were $17,725,000, down 8.4% from $19,353,000 in the prior fiscal year[175]. - Print publication revenues decreased by 6.3% to $4,414,000 during the six months ended October 31, 2024, compared to $4,709,000 in the same period last year[176]. - Digital revenues for the same period were $8,055,000, slightly lower than $8,146,000 in the prior fiscal year, reflecting weak investor sentiment[176]. - Copyright fees fell by 19.1% to $5,256,000 during the six months ended October 31, 2024, compared to $6,498,000 in the previous year[179]. - The company's total operating expenses for the six months ended October 31, 2024, were $14,134,000, which is a 1.4% increase from $13,932,000 in the same period of 2023[164]. - Advertising and promotion expenses increased by 26.9% to $1,722,000 during the six months ended October 31, 2024, compared to $1,357,000 in the prior fiscal year[192]. - Office and administrative expenses increased by 4.1% to $2,356,000 for the six months ended October 31, 2024, due to software upgrades and outsourced fulfillment costs[195]. Investment Performance - Total investment gains increased by 993.5% to $2,895,000, primarily from unrealized gains on equity securities and increased interest income[198]. - Investment gains for the three months ended October 31, 2024, were $1,186,000, a significant increase of 209.9% compared to a loss of $1,079,000 in the same period of 2023[163]. - EAM's investment management fees for the six months ended October 31, 2024, were $15,342,000, up from $11,068,000 in the same period last year[184]. - Total assets in the Value Line Funds managed by EAM increased by 44.6% to $4.78 billion as of October 31, 2024, from $3.31 billion a year earlier[181]. Cash Flow - Cash inflows from operating activities rose to $7,844,000 for the six months ended October 31, 2024, compared to $5,763,000 in the same period last year[205]. - Cash inflows from investing activities were $4,889,000 for the six months ended October 31, 2024, compared to cash outflows of $3,808,000 in the prior year[208]. - Cash outflows from financing activities were $5,830,000 for the six months ended October 31, 2024, with quarterly dividend payments totaling $5,652,000[209]. Tax and Working Capital - The effective income tax rate increased to 24.65% for the six months ended October 31, 2024, up from 23.76% in the prior year, primarily due to higher state and local income taxes[200]. - Working capital increased to $52,961,000 as of October 31, 2024, compared to $48,770,000 as of April 30, 2024[203]. Market and Economic Conditions - The U.S. economy's GDP expanded by an estimated 2.8% in the September 2024 period, following a 3.0% advance in the June quarter, driven by a 3.5% increase in personal consumption expenditures[158]. - The Federal Reserve reduced the federal funds rate by 0.75 percentage points to a range of 4.50% to 4.75% as of November 2024, indicating a shift in monetary policy to support economic growth[159]. Securities and Investments - The aggregate cost and fair value of fixed income securities classified as available-for-sale were $39,008,000 and $38,915,000, respectively, as of October 31, 2024[226]. - The fair value of fixed income securities would decrease to $37,909,000 with a hypothetical 100 basis points increase in interest rates[228]. - The fair value of fixed income securities would increase to $39,359,000 with a hypothetical 100 basis points decrease in interest rates[228]. - The estimated fair value of equity securities as of October 31, 2024, is $21,837,000, up from $16,344,000 as of April 30, 2024[233]. - The aggregate cost of equity securities increased from $11,663,000 to $15,505,000 between April 30, 2024, and October 31, 2024[233]. - A hypothetical 30% increase in equity prices would raise the estimated fair value of equity securities to $28,388,000, while a 30% decrease would lower it to $15,286,000[234]. - The company's policy limits investments in any single issue to no more than 5% of the approximate average daily trading volume to maintain liquidity[232]. - The estimated fair value of equity securities would change by 5.35% in shareholders' equity with a hypothetical 30% price change[234]. - The company regularly monitors the maturity structure of its investments to manage price risk associated with interest rate changes[228].

Core Insights - Value Line, Inc. reported a net income of $5.9 million for the fiscal first quarter ended July 31, 2024, representing a 21.2% increase from the previous year's $4.9 million [1] - The company's revenues rose significantly, driven by non-voting revenues and profits interests in EAM, totaling $4.2 million, a 48.4% year-over-year increase [2] - Total investment gains for the quarter reached $1.7 million, reflecting a 126.4% rise from the prior year's gains of $1 million [5] Financial Performance - Earnings per share (EPS) for the quarter was 62 cents, up from 52 cents in the same quarter last year [1] - The growth in earnings was attributed to operational gains and improved financial market conditions, particularly from EAM's strong asset management performance [3][4] - Retained earnings increased to $107.3 million, a 2.9% rise from April 30, 2024, while shareholders' equity grew to $93.9 million, a 3.4% increase from the prior quarter [6] Business Drivers - The strong performance of EAM in managing equity and debt securities was a key driver of revenue growth [2][3] - Management highlighted that gains from EAM were supported by positive market conditions and strategic asset allocation [4] - The diversified portfolio of the company, especially its non-voting revenue interests in EAM, significantly contributed to the overall performance [3]

Financial Performance - For the three months ended July 31, 2024, net income was $5,887,000, or $0.62 per share, representing a 21.2% increase from $4,859,000, or $0.52 per share, in the same period of 2023[118]. - Total operating revenues for the three months ended July 31, 2024, were $8,884,000, down 8.8% from $9,743,000 in the same period of 2023[119]. - The company's operating expenses increased slightly to $7,037,000, up 0.6% from $6,996,000 in the same period of 2023[118]. - Cash inflows from operating activities for the three months ended July 31, 2024, were $4,771,000, a decrease from $5,058,000 during the same period in 2023[147]. - Cash outflows from financing activities were $3,006,000 for the three months ended July 31, 2024, compared to $2,830,000 for the same period in 2023[150]. Revenue Sources - Non-voting revenues and non-voting profits interests from EULAV Asset Management Trust increased by 48.4% to $4,241,000 compared to $2,857,000 in the prior year[118]. - Subscription sales for print publications accounted for 18.2% of total gross sales, while digital subscriptions accounted for 9.2% in the three months ended July 31, 2024[121]. - Investment periodicals and related publications revenues were $6,287,000 for the three months ended July 31, 2024, a decrease of 2.6% compared to $6,457,000 in the prior fiscal year[123]. - Digital revenues for the three months ended July 31, 2024, were $4,054,000, slightly lower compared to the prior fiscal year, indicating a shift from print to digital services[124]. Investment Performance - Investment gains for the three months ended July 31, 2024, were $1,709,000, a significant increase of 126.4% from $755,000 in the prior year[118]. - Total investment gains for the three months ended July 31, 2024, were $1,709,000, a 126.4% increase from $755,000 in the prior year, primarily due to unrealized gains on equity securities[141]. - During the three months ended July 31, 2024, total investment management fees earned from the Value Line Funds were $7,376,000, an increase from $5,428,000 in the same period of the prior year[130][131]. Assets and Capital - Total assets in the Value Line Funds managed by EAM increased to $4.60 billion, up $1.13 billion or 32.6% from $3.47 billion at July 31, 2023[129]. - As of July 31, 2024, the company had working capital of $50,381,000, an increase from $48,770,000 as of April 30, 2024[146]. - As of July 31, 2024, retained earnings were $107,311,000, up from $104,249,000 as of April 30, 2024[151]. Market Conditions - The U.S. GDP expanded by an estimated 3.0% in the June quarter of 2024, more than double the 1.4% gain recorded in the March period[114]. - The Federal Reserve is expected to begin reducing the federal funds rate after holding it steady in a range of 5.25% to 5.50% for eight consecutive meetings[115]. Tax and Compliance - The effective income tax rate for the three months ended July 31, 2024, was 24.50%, up from 23.87% in the prior year, primarily due to increased state and local income taxes[143]. - The company is evaluating the impact of new accounting standards on disclosures in its Consolidated Financial Statements[152][153]. Other Financial Metrics - The average common shares outstanding decreased slightly to 9,419,938 in the three months ended July 31, 2024, from 9,432,573 in the same period of 2023[118]. - Unearned subscription revenue as of July 31, 2024, was $21,076,000, a decrease of 5.4% from $22,281,000 as of April 30, 2024[122]. - The aggregate cost and fair value of fixed income securities classified as available-for-sale as of July 31, 2024, were $34,042,000 and $33,928,000, respectively[159]. - The fair value of equity securities as of July 31, 2024, was $21,724,000, an increase from $16,344,000 as of April 30, 2024[169]. - The company expects to continue using cash for dividend payments, with quarterly dividends of $0.30 per share during fiscal year 2025 totaling $2,827,000[150]. - The company does not anticipate making any borrowings during the next twelve months[151]. Circulation and Marketing - Total print circulation decreased by 2.2% compared to the previous year, reflecting management's decision to reduce marketing efforts in a challenging market environment[124]. - Non-voting revenues interest from EAM increased by 40.7% to $3,680,000 compared to $2,616,000 in the prior year[135]. - The Value Line equity and hybrid funds' assets increased by 33.0% to $4,566 million, while fixed income funds decreased by 5.1% to $37 million as of July 31, 2024[134].

Market Value and Shares - The aggregate market value of the registrant's voting and non-voting common stock held by non-affiliates at October 31, 2023, was $32,483,588[29]. - There were 9,418,839 shares of the registrant's Common Stock outstanding at June 30, 2024[30]. - The registrant's controlling shareholder, Arnold Bernhard & Co, Inc., owns 91.63% of the outstanding shares[19]. Company Operations and Classification - The Company is the successor to substantially all of the operations of Arnold Bernhard & Co, Inc., which owns 91.63% of the outstanding shares of the common stock of the Company as of April 30, 2024[19]. - The Company is classified as a smaller reporting company under SEC regulations[8]. - The registrant is a smaller reporting company and has filed all required reports during the preceding 12 months[11]. - The registrant is not a shell company[13]. - The registrant is not a well-known seasoned issuer[11]. Compliance and Reporting - The Company has filed all reports required by Section 13 or 15 of the Securities Exchange Act of 1934 during the preceding 12 months[11]. - The registrant has not filed a report on an attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act[12]. - The registrant has not disclosed any delinquent filers[8]. - The registrant has been subject to filing requirements for the past 90 days[11]. - The registrant has submitted electronically every Interactive Data File required during the preceding 12 months[8]. Value Line Services - Value Line offers digital versions of most of its products through its website, enhancing accessibility for subscribers[10]. - The Value Line Mutual Fund Ranking System includes data on approximately 20,000 mutual funds, providing comprehensive performance analysis and investment strategies[25]. - The Value Line Special Situations Service focuses on smaller companies with exceptional appreciation potential, introduced in 1951[26]. - The Value Line Daily Options Survey evaluates and ranks approximately 600,000 U.S. equity and equity index options, available only as an online subscription[27].

New York, July 26, 2024 (GLOBE NEWSWIRE) -- Value Line, Inc., (NASDAQ: VALU) reported results for the fiscal year ended April 30, 2024. During the twelve months ended April 30, 2024, the Company's net income of $19,016,000, or $2.02 per share, was 5.2% above net income of $18,069,000, or $1.91 per share, for the twelve months ended April 30, 2023. The Company's receipts of $13,282,000 from its non-voting revenues interest in EAM and non-voting profits interest in EAM increased $2,151,000 or 19.3% above the ...

NEW YORK, July 19, 2024 (GLOBE NEWSWIRE) -- Value Line, Inc. (NASDAQ: VALU) announced today that its Board of Directors declared on July 19, 2024 a quarterly cash dividend of $0.30 per common share, payable on August 12, 2024, to stockholders of record on July 29, 2024. The Company has 9,418,074 shares of common stock outstanding as of July 19, 2024. In this report, "Value Line," "we," "us," "our" refers to Value Line, Inc. and "the Company" refers to Value Line and its subsidiaries unless the context other ...

Cautionary Statement Regarding Forward-Looking Information maintaining revenue from subscriptions for the Company's digital and print published products; changes in investment trends and economic conditions, including global financial issues; changes in Federal Reserve policies affecting interest rates and liquidity along with resulting effects on equity markets; stability of the banking system, including the success of U.S. government policies and actions in regard to banks with liquidity or capital issues ...

Zacks Investment Research has recently initiated coverage of Value Line, Inc. (VALU) with a Neutral recommendation. This evaluation comes as the company navigates a landscape of diversified revenue streams and robust financial health while contending with certain market challenges. Value Line has demonstrated effective expense management, leading to consistent profitability, as highlighted by the research report. Net income reached $14.2 million for the nine months ended Jan 31, 2024, showcasing operational ...