Value Line(VALU) - 2025 Q3 - Quarterly Report

Financial Performance - For the three months ended January 31, 2025, the company's net income was $5,163,000, a decrease of 12.3% compared to $5,885,000 for the same period in 2024[146]. - The company's income from operations for the nine months ended January 31, 2025, was $5,155,000, down 32.6% from $7,653,000 in the prior year[146]. - Total publishing revenues decreased by 1.8% to $8,967,000 for the three months ended January 31, 2025, from $9,131,000 in 2024[150]. - The company's operating expenses increased by 7.3% to $7,403,000 for the three months ended January 31, 2025, compared to $6,899,000 in 2024[146]. - Total operating expenses for the nine months ended January 31, 2025, were $21,537,000, a 3.4% increase from $20,831,000 in the previous year[168]. - The company experienced a 3.4% decrease in print publication revenues to $6,750,000 during the nine months ended January 31, 2025, compared to $6,987,000 in the prior year[155]. Revenue Sources - Non-voting revenues and non-voting profits interests from EAM Trust increased by 40.7% to $4,910,000 for the three months ended January 31, 2025, compared to $3,489,000 in 2024[146]. - Subscription sales orders from print and digital products are a key revenue driver, with total investment periodicals and related publications showing a slight decline of 0.1% for the three months ended January 31, 2025[150]. - Investment periodicals and related publications revenues were $18,782,000, a decrease of 2.0% compared to $19,174,000 in the prior fiscal year[154]. - New sales of print publications increased to 14.8% of total gross sales during the nine months ended January 31, 2025, while renewal and conversion sales decreased to 85.2%[151]. - 29.6% of total publishing revenues of $26,692,000 were derived from a single customer during the nine months ended January 31, 2025[173]. Investment Gains - The company reported a significant increase in investment gains, with a 209.9% rise to $662,000 for the three months ended January 31, 2025, compared to $2,009,000 in 2024[146]. - Total investment gains for the nine months ended January 31, 2025, were $3,557,000, an increase of 111.1% compared to $1,685,000 in the prior year[175]. - Non-voting revenues interest from EAM increased by 43.6% to $12,089,000 during the nine months ended January 31, 2025, compared to $8,420,000 in the prior year[167]. Economic Context - The U.S. GDP expanded by an estimated 2.8% during 2024, nearly matching the 2.9% gain recorded in 2023, driven by strong consumer spending[140]. - The company anticipates challenges in sustaining earnings growth due to potential changes in fiscal policies and the Federal Reserve's monetary policy stance[144]. Cash Flow and Capital - Cash inflows from operating activities were $14,703,000 for the nine months ended January 31, 2025, compared to $14,169,000 for the same period in 2024, driven by increased unrealized gains on equity securities[182]. - Cash inflows from investing activities were $16,475,000 for the nine months ended January 31, 2025, a significant increase from cash outflows of $7,719,000 for the same period in 2024[184]. - Cash outflows from financing activities were $8,752,000 for the nine months ended January 31, 2025, compared to $8,260,000 for the same period in 2024, with quarterly dividend payments of $0.30 per share totaling $8,478,000[185]. - The Company had working capital of $55,483,000 as of January 31, 2025, compared to $48,770,000 as of April 30, 2024, including short-term unearned revenue of $16,634,000[180]. Securities and Dividends - As of January 31, 2025, the aggregate cost and fair value of fixed income securities classified as available-for-sale were $27,269,000 and $27,167,000, respectively[200]. - The aggregate cost of equity securities was $15,509,000 as of January 31, 2025, with a fair value of $21,808,000, compared to a cost of $11,663,000 and fair value of $16,344,000 as of April 30, 2024[207]. - The dividend yield for equity securities as of January 31, 2025, is 5.22%[208]. - The dividend yield for equity securities as of April 30, 2024, is 4.27%[208]. - A hypothetical 30% decrease in equity securities value as of January 31, 2025, would result in a fair value of $15,266,000[208]. - A hypothetical 30% decrease in equity securities value as of April 30, 2024, would result in a fair value of $11,441,000[208]. Future Outlook - The Company expects to finance current and forecasted liquidity needs for the next twelve months and beyond without making any borrowings[187]. - The Company is required to make estimated lease payments totaling $4,198,000 over the next four fiscal years[193]. - The Company has adopted ASU 2023-07, which requires disclosures of significant expenses by segment, effective for fiscal years beginning after December 15, 2023[189]. - As of January 31, 2025, the estimated fair value of equity securities held is $21,808,000, reflecting a 30% increase in dividend yield[208]. - As of April 30, 2024, the estimated fair value of equity securities held is $16,344,000, with a potential 30% increase leading to a value of $21,247,000[208].