Value Line(VALU) - 2025 Q4 - Annual Report

PART I Business Value Line produces investment periodicals, research, and licenses proprietary information, holding interests in EULAV Asset Management - Value Line's core business involves producing investment periodicals and research, and licensing Value Line copyrights, trademarks, and proprietary ranks to third parties for use in investment products[19] - The company holds substantial non-voting revenue and profit interests in EULAV Asset Management (EAM), which provides investment management services to the Value Line Funds[19][60][61] - Value Line's products and services are marketed under well-known brands such as Value Line®, The Value Line Investment Survey®, and Smart Research, Smarter Investing™[19] A. Investment Related Periodicals & Publications Value Line Publishing offers diverse investment periodicals, research, software, and financial databases in print and digital formats - VLP offers comprehensive research services (e.g., The Value Line Investment Survey, Small and Mid-Cap, Fund Advisor Plus) providing statistical and text coverage with proprietary research and ranks[22][27][28][29] - Niche newsletters cover specific interests like dividend income, ETFs, special situations, M&A, and climate change investing[23][32][33][34][38][39] - Digital versions of most products are available via www.valueline.com, with The Value Line Research Center offering packaged access to multiple services[25][44] - Institutional customers are provided with investment analysis software (e.g., Value Line Investment Analyzer) and current/historical financial databases (e.g., DataFile, Estimates & Projections, Mutual Fund DataFile)[26][40][41][42][43] B. Copyright Programs Value Line licenses its proprietary Ranking System and information to third parties for investment products, with fees based on asset market value - The Company's copyright services involve licensing proprietary Ranking System results and other information to third parties for use in their investment products[58] - Copyright fees are primarily based on the market value of assets invested in products utilizing Value Line's proprietary data, resulting in fluctuating payments[58] C. Investment Management Services Value Line holds non-voting interests in EAM, adviser to Value Line Funds, with assets under management increasing to $4.68 billion in fiscal 2025 - Value Line holds non-voting revenue and profit interests in EAM, entitling it to 41%-55% of EAM's non-distribution revenues and 50% of its residual profits[61] - EAM acts as the investment adviser to the Value Line Funds, utilizing Value Line's proprietary Ranking System information[62][65][67] Total Assets in Value Line Funds Managed by EAM | Metric | April 30, 2025 (in billions) | April 30, 2024 (in billions) | Change (YoY) | | :----- | :--------------------------- | :--------------------------- | :----------- | | Total Assets | $4.68 | $4.17 | +12.0% | D. Wholly-Owned Operating Subsidiaries Value Line's subsidiaries include Value Line Publishing, Vanderbilt Advertising, and Value Line Distribution Center, which outsourced print operations - Wholly-owned subsidiaries include Value Line Publishing LLC (VLP), Vanderbilt Advertising Agency, Inc., and Value Line Distribution Center, Inc. (VLDC)[68][74] - VLDC's print distribution operations were outsourced to third parties in the U.S. after April 30, 2024[74] E. Trademarks Value Line holds numerous global trademark and service mark registrations, which are significant assets for marketing its products, services, and funds - Value Line holds trademark and service mark registrations for various names and logos in multiple countries[68] - These trademarks are considered significant assets, crucial for marketing the Company's products, services, and the Value Line Funds[68] F. Investments Value Line held $43.314 million in investment assets as of April 30, 2025, primarily equity and fixed income securities, down from $63.955 million in 2024 Total Investment Assets (excluding EAM interests) | Metric | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | | :----- | :---------------------------- | :---------------------------- | | Total Investment Assets | $43,314 | $63,955 | - Investments include equity securities (SPDR Series Trust S&P Dividend ETF, First Trust Value Line Dividend Index ETF, ProShares Trust S&P 500 Dividend Aristocrats ETF, IShares DJ Select Dividend ETF, other ETFs, and common stock) and available-for-sale fixed income securities (U.S. federal government securities and bank certificates of deposit)[69] G. Employees Value Line and its subsidiaries employed 117 people as of April 30, 2025, with policies to prevent analyst conflicts of interest - The Company and its subsidiaries employed 117 people as of April 30, 2025[70] - Policies are in place to prevent conflicts of interest, including prohibiting analysts from owning covered securities and restricting trading based on rank changes[71] H. Principal Business Segments Information on Value Line's principal business segments is incorporated by reference, with Publishing identified as the sole reportable segment - Information on principal business segments is incorporated by reference to Note 18 of the Consolidated Financial Statements[72] - The Publishing segment, which includes investment periodicals, related publications, and copyright services, is the Company's only reportable business segment[120][375] I. Competition Value Line and EAM face intense competition in investment information, publishing, and asset management, including from larger firms and free online research - The investment information, publishing, and investment management businesses are highly competitive, with many firms and diverse product offerings[73] - Competition is intensified by larger firms with greater financial resources, the availability of free/low-cost online research, and the ease of asset transfer in the mutual fund industry[73][88] J. Executive Officers of the Registrant Value Line's executive officers include Howard A. Brecher (Chairman and CEO) and Stephen R. Anastasio (VP and Treasurer), both with extensive company experience - Howard A. Brecher serves as Chairman and Chief Executive Officer, with over 25 years of experience as an officer[76] - Stephen R. Anastasio is the Vice President and Treasurer, having been an officer for over 20 years[76] Risk Factors Value Line faces risks from key personnel, EAM revenue fluctuations, single customer reliance, declining print subscriptions, intellectual property, competition, and cyber threats - The Company's success depends on retaining and recruiting qualified executives and professionals; the loss of key personnel could have an adverse effect[79] - A significant portion of cash flow is derived from EAM, making the Company vulnerable to decreases in EAM's revenue due to market conditions, fund performance, or investor decisions[80][81] - The Company relies on a single significant customer for a substantial portion of its publishing revenues, and a decrease from this customer could adversely affect cash flow and financial condition[83] - Expected continued decline in retail print subscription revenue, with uncertainty if digital revenue growth will offset this trend[85] - Cyber risks pose a threat to continuous and secure operation of computer systems, potentially leading to loss or misuse of sensitive information and increased security costs[94] Item 1B. Unresolved Staff Comments There are no unresolved staff comments to report for Value Line, Inc - No unresolved staff comments[96] Item 1C. Cybersecurity Value Line considers information security critical, maintaining a continuously assessed cybersecurity program with management and Audit Committee oversight, and has not encountered material events - Information security is a critical component of the business strategy, with a continuously assessed and strengthened cybersecurity program[97] - Management, chaired by the Executive Director of Information Technology, is responsible for day-to-day risk administration, including identification, analysis, and response to risks[98] - Third-party services are regularly engaged for security control evaluations, including penetration testing and independent audits[99] - The Audit Committee oversees the Company's risk management program, including technology and cybersecurity risks[101] - The Company has not encountered a cybersecurity event that has had a material impact on its business[102] Item 2. Properties Value Line leases 24,726 square feet of New York office space until November 2027, with print distribution operations outsourced after April 2024 - The Company leases 24,726 square feet of office space at 551 Fifth Avenue, New York, NY, with a sublease agreement ending November 29, 2027[103][104] - Annual base rent for the New York office space is $1,126,000, with a 2.25% annual increase[104] - The New Jersey warehouse facility, previously used for print distribution, was vacated after April 30, 2024, with operations outsourced to third parties[103] Item 3. Legal Proceedings Value Line, Inc. has no legal proceedings to report - No legal proceedings[106] Item 4. Mine Safety Disclosures Mine Safety Disclosures are not applicable to Value Line, Inc - Not applicable[108] PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Value Line's common stock trades on NASDAQ, with 9.41 million shares outstanding and increasing quarterly dividends; the company repurchased $453,000 in shares in fiscal 2025 - Value Line's Common Stock is traded on NASDAQ under the symbol "VALU"[109] - As of April 30, 2025, the closing stock price was $40.90, and 9,409,522 shares of Common Stock were outstanding at June 30, 2025[7][109] Regular Dividend Declared Per Share | Quarter Ended | Regular Dividend Declared Per Share | | :------------ | :---------------------------------- | | April 30, 2025 | $0.325 | | January 31, 2025 | $0.30 | | October 31, 2024 | $0.30 | | July 31, 2024 | $0.30 | | April 30, 2024 | $0.30 | | January 31, 2024 | $0.28 | | October 31, 2023 | $0.28 | | July 31, 2023 | $0.28 | Issuer Purchases of Equity Securities (Fiscal Year Ended April 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Maximum Dollar Value Remaining Under Program (in thousands) | | :--------------------------------- | :------------------------------- | :--------------------------- | :---------------------------------------------------------- | | February 1, 2025 - April 30, 2025 | 4,961 | $36.40 | $758 | | Fiscal 2025 (aggregate) | 11,480 | $39.46 | N/A | - A share repurchase program authorized on October 21, 2022, allows for repurchases up to $3 million, with $758,000 remaining as of April 30, 2025[112][366] Item 6. [Reserved] This item is reserved and contains no information Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations This section discusses Value Line's financial performance for fiscal years 2025-2023, highlighting an 8.8% increase in net income driven by EAM interests and investment gains - Value Line's core business is producing investment periodicals and research, and licensing proprietary information, with a significant non-voting interest in EAM Trust for investment management services[117] - The U.S. economy experienced a weak start in calendar 2025 due to tariffs, but hard data suggested a return to growth in Q2, with S&P 500 companies showing double-digit earnings growth in Q1 2025, partly driven by AI-related stocks[124][126][128] Key Financial Highlights (Fiscal Years Ended April 30) | Metric (in thousands) | 2025 | 2024 | 2023 | Change '25 vs. '24 | Change '24 vs. '23 | | :-------------------- | :-------- | :-------- | :-------- | :----------------- | :----------------- | | Income from operations | $5,985 | $9,141 | $11,470 | -34.5% | -20.3% |\ | Non-voting revenues and non-voting profits interests from EAM Trust | $18,318 | $13,282 | $11,131 | 37.9% | 19.3% |\ | Income from operations plus EAM interests | $24,303 | $22,423 | $22,601 | 8.4% | -0.8% |\ | Operating expenses | $29,094 | $28,346 | $28,225 | 2.6% | 0.4% |\ | Investment gains | $3,238 | $2,764 | $1,174 | 17.1% | 135.4% |\ | Income before income taxes | $27,541 | $25,187 | $23,775 | 9.3% | 5.9% |\ | Net income | $20,686 | $19,016 | $18,069 | 8.8% | 5.2% |\ | Earnings per share | $2.20 | $2.02 | $1.91 | 8.9% | 5.6% | Executive Summary of the Business Value Line's core business involves producing investment periodicals and research, licensing proprietary information, and holding a significant non-voting investment in EAM Trust - The Company's core business is producing investment periodicals and research, and making available Value Line copyrights, trademarks, and proprietary ranks to third parties[117] - Value Line maintains a significant non-voting investment in EAM Trust, from which it receives payments based on non-voting revenues and profits interests[117] - Target audiences include individual investors, colleges, libraries, and investment management professionals, with revenue from subscriptions recognized ratably over the subscription life[118][119] Asset Management and Mutual Fund Distribution Businesses Value Line holds non-voting revenue and profit interests in EAM, the investment adviser to Value Line Funds, receiving 41%-55% of non-distribution revenues and 50% of residual profits - Value Line holds non-voting revenue and profit interests in EAM, entitling it to 41%-55% of EAM's non-distribution revenues and 50% of its residual profits[123] - The Company has no voting authority over EAM's trustees or control over its business[122] - At least 90% of EAM's profits are distributed each fiscal quarter to interest holders[123] Business Environment The U.S. economy saw a Q1 2025 GDP contraction but likely resumed growth in Q2, with easing inflation, a resilient job market, and S&P 500 earnings growth driven by AI stocks - U.S. GDP contracted by an estimated 0.5% in Q1 2025, attributed to pre-tariff buying, but the economy likely returned to growth in Q2[124][126] - The Federal Reserve kept the federal funds rate steady (4.25%-4.50%) in H1 2025 due to global uncertainties, with concerns about tariffs leading to stagflation[125] - Inflation eased, the job market remained resilient (unemployment at 4.1% in June), and manufacturing activity improved, suggesting the stagflation scenario has not materialized[126] - A new budget deal and potential Fed rate cuts in H2 2025 may boost corporate and consumer spending, while S&P 500 companies saw double-digit earnings growth in Q1 2025, driving major averages to record highs, partly due to AI-related stocks[127][128] Results of Operations for Fiscal Years 2025, 2024 and 2023 Value Line's net income increased 8.8% to $20.686 million in fiscal 2025, driven by EAM interests and investment gains, despite declining operating income and revenues Consolidated Income Statement Summary (in thousands, except EPS) | Metric | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | YoY Change (25 vs 24) | YoY Change (24 vs 23) | | :------------------------------------------------ | :-------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Income from operations | $5,985 | $9,141 | $11,470 | -34.5% | -20.3% |\ | Non-voting revenues and non-voting profits interests from EAM Trust | $18,318 | $13,282 | $11,131 | 37.9% | 19.3% |\ | Investment gains | $3,238 | $2,764 | $1,174 | 17.1% | 135.4% |\ | Net income | $20,686 | $19,016 | $18,069 | 8.8% | 5.2% |\ | Earnings per share (EPS) | $2.20 | $2.02 | $1.91 | 8.9% | 5.6% | - Net income increased by 8.8% in fiscal 2025, primarily due to significant increases in EAM interests and investment gains, offsetting a decline in operating income[130] Total Operating Revenues (in thousands) | Revenue Category | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | YoY Change (25 vs 24) | YoY Change (24 vs 23) | | :--------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Investment periodicals and related publications | $24,682 | $25,420 | $26,232 | -2.9% | -3.1% |\ | Copyright fees | $10,397 | $12,067 | $13,463 | -13.8% | -10.4% |\ | Total operating revenues | $35,079 | $37,487 | $39,695 | -6.4% | -5.6% | - Total operating revenues decreased by 6.4% in fiscal 2025, mainly due to a 13.8% decline in copyright fees and a 2.9% decrease in investment periodicals and related publications revenue[139] Operating Expenses (in thousands) | Expense Category | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | YoY Change (25 vs 24) | YoY Change (24 vs 23) | | :---------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Advertising and promotion | $3,797 | $2,955 | $3,049 | 28.5% | -3.1% |\ | Salaries and employee benefits | $14,455 | $14,851 | $15,203 | -2.7% | -2.3% |\ | Production and distribution | $5,987 | $5,455 | $5,210 | 9.8% | 4.7% |\ | Office and administration | $4,855 | $5,085 | $4,763 | -4.5% | 6.8% |\ | Total expenses | $29,094 | $28,346 | $28,225 | 2.6% | 0.4% | - Total operating expenses increased by 2.6% in fiscal 2025, driven by higher advertising and promotion (28.5%) and production and distribution (9.8%) costs, partially offset by a decrease in salaries and employee benefits (-2.7%) due to reduced headcount and outsourcing[165][168][171][175] Investment Gains/(Losses) (in thousands) | Metric | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | YoY Change (25 vs 24) | YoY Change (24 vs 23) | | :------------------------------------------------ | :-------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Dividend income | $553 | $551 | $595 | 0.4% | -7.4% |\ | Interest income | $2,126 | $1,934 | $706 | 9.9% | 173.9% |\ | Investment gains/(losses) recognized on sale of equity securities | $(123) | $(1) | $(81) | -12200.0% | 98.8% |\ | Unrealized gains/(losses) recognized on equity securities held at period end | $682 | $288 | $(45) | 136.8% | 740.0% |\ | Other | $- | $(8) | $(1) | 100.0% | -700.0% |\ | Total investment gains/(losses) | $3,238 | $2,764 | $1,174 | 17.1% | 135.4% | - Total investment gains increased by 17.1% to $3.238 million in fiscal 2025, primarily from unrealized gains on equity securities and increased interest income[183] Effective Income Tax Rate | Fiscal Year | Effective Income Tax Rate (%) | | :---------- | :---------------------------- | | 2025 | 24.89 |\ | 2024 | 24.50 |\ | 2023 | 24.00 | - The effective income tax rate increased to 24.89% in fiscal 2025 from 24.50% in fiscal 2024, mainly due to an increase in the state and local tax rate[185] Liquidity and Capital Resources Value Line's working capital increased to $56.230 million in fiscal 2025, with strong cash flows from operations and investing activities, maintaining liquidity Working Capital and Liquid Assets (in thousands) | Metric | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | | :---------------------- | :---------------------------- | :---------------------------- | | Working capital | $56,230 | $48,770 |\ | Cash and short-term securities | $77,391 | $68,345 | Cash Flows from Activities (in thousands) | Activity | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | | :---------------------- | :-------------------- | :-------------------- | :-------------------- | | Operating activities | $20,243 | $17,932 | $18,178 |\ | Investing activities | $21,200 | $(10,048) | $(26,116) |\ | Financing activities | $(11,756) | $(11,084) | $(14,175) | - Significant cash inflows from investing activities in fiscal 2025 ($21.2 million) were due to investing proceeds from fixed income maturities into higher-yield U.S. Government money market funds[189] - Financing outflows included $453,000 for share repurchases (11,480 shares) and $11.303 million for quarterly dividend payments in fiscal 2025[190] - Management believes current cash and liquid assets, along with future cash flows from operations and EAM interests, will be sufficient to meet liquidity needs for the foreseeable future[192] Recent Accounting Pronouncements Value Line adopted ASU 2023-07 in fiscal 2025 and is evaluating ASU 2023-09 and ASU 2024-03 for future impacts on financial statement disclosures - Adopted ASU 2023-07, "Improvements to Reportable Segment Disclosures," in fiscal 2025, requiring disclosures of significant expenses by segment and interim disclosures[194][290] - Evaluating ASU 2023-09, "Improvements to Income Tax Disclosures," effective for fiscal years beginning after December 15, 2024, which requires additional tax rate reconciliations and income taxes paid disclosures[195][291] - Evaluating ASU 2024-03, "Income Statement-Reporting Comprehensive Income- Expense Disaggregation Disclosures," effective for fiscal years beginning after December 15, 2026, which requires additional disclosure of expense nature[196][292] Critical Accounting Estimates and Policies Value Line's critical accounting policies involve significant estimates, particularly for the equity method valuation of its EAM Trust investment, annually assessed for impairment - The Company prepares financial statements in accordance with U.S. GAAP, requiring estimates and judgments affecting reported amounts[197][281] - The investment in EAM Trust is accounted for using the equity method, with an annual impairment assessment based on an independent valuation[198][199][288] - Contractual obligations include lease payments for office space, totaling $3.836 million over the next four fiscal years[200][357] Item 7A. Quantitative and Qualitative Disclosures About Market Risk Value Line's market risks primarily relate to interest rates and equity prices, managed through short-term debt investments and diversified equity portfolios - The Company's primary market risks are associated with interest rates and equity prices[202] - Interest rate risk is mitigated by investing primarily in short-term debt obligations maturing within one year[204] Estimated Fair Value of Fixed Income Securities after Hypothetical Interest Rate Changes (in thousands) | As of April 30, 2025 | Fair Value (in thousands) | 50 bp increase (in thousands) | 50 bp decrease (in thousands) | 100 bp increase (in thousands) | 100 bp decrease (in thousands) | | :------------------- | :------------------------ | :---------------------------- | :---------------------------- | :----------------------------- | :----------------------------- | | Fixed maturities | $22,435 | $22,043 | $22,480 | $21,830 | $22,702 |\ | As of April 30, 2024 | Fair Value (in thousands) | 50 bp increase (in thousands) | 50 bp decrease (in thousands) | 100 bp increase (in thousands) | 100 bp decrease (in thousands) | | :------------------- | :------------------------ | :---------------------------- | :---------------------------- | :----------------------------- | :----------------------------- | | Fixed maturities | $47,611 | $46,554 | $46,935 | $46,363 | $47,126 | - Equity investment strategy involves acquiring equity securities across diverse industry groups, primarily ETFs held for dividend yield[211] - The Company limits its holdings to no more than 5% of the approximate average daily trading volume in any one issue to maintain liquidity[211] Estimated Fair Value of Equity Securities after Hypothetical Price Changes (in thousands) | As of April 30, 2025 | Fair Value (in thousands) | Hypothetical Price Change | Estimated Fair Value after Change (in thousands) | Hypothetical % Change in Shareholders' Equity | | :------------------- | :------------------------ | :------------------------ | :----------------------------------------------- | :-------------------------------------------- | | Equity Securities and ETFs | $20,879 | 30% increase | $27,143 | 4.96% |\ | | | 30% decrease | $14,615 | -4.96% |\ | As of April 30, 2024 | Fair Value (in thousands) | Hypothetical Price Change | Estimated Fair Value after Change (in thousands) | Hypothetical % Change in Shareholders' Equity | | :------------------- | :------------------------ | :------------------------ | :----------------------------------------------- | :-------------------------------------------- | | Equity Securities and ETFs | $16,344 | 30% increase | $21,247 | 4.27% |\ | | | 30% decrease | $11,441 | -4.27% | Item 8. Financial Statements and Supplementary Data This section presents Value Line's audited consolidated financial statements for fiscal years 2025-2023, prepared under U.S. GAAP, with an unqualified opinion - The consolidated financial statements for Value Line, Inc. and its subsidiaries are included, covering fiscal years ended April 30, 2025, 2024, and 2023[214][256] - The independent auditors, Horowitz & Ullmann, P.C., issued an unqualified opinion, stating the financial statements present fairly the financial position and results of operations in conformity with U.S. GAAP[256] - A critical audit matter identified was the significant judgments made by management in estimating the fair value of the investment in the unconsolidated entity (EAM Trust)[261][262] Report of Independent Auditors Horowitz & Ullmann, P.C. issued an unqualified opinion on Value Line's financial statements, noting significant judgment in valuing the EAM Trust investment - The independent auditors issued an unqualified opinion on the consolidated financial statements for the three-year period ended April 30, 2025[256] - A critical audit matter involved the significant judgments and audit effort in evaluating management's estimation of the fair value of the investment in the unconsolidated EAM Trust[261][262] Consolidated Balance Sheets As of April 30, 2025, Value Line's total assets increased to $144.533 million, driven by higher cash and equity securities, with shareholders' equity rising to $99.678 million Consolidated Balance Sheet Highlights (in thousands) | Metric | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | | :-------------------------------------------- | :---------------------------- | :---------------------------- | | Assets: | | |\ | Cash and cash equivalents | $34,077 | $4,390 |\ | Equity securities | $20,879 | $16,344 |\ | Available-for-sale Fixed Income securities | $22,435 | $47,611 |\ | Total current assets | $79,883 | $71,024 |\ | Investment in EAM Trust | $60,807 | $60,134 |\ | Total assets | $144,533 | $136,035 |\ | Liabilities: | | |\ | Total current liabilities | $23,653 | $22,254 |\ | Total long term liabilities | $21,202 | $22,988 |\ | Total liabilities | $44,855 | $45,242 |\ | Shareholders' Equity: | | |\ | Retained earnings | $113,400 | $104,249 |\ | Total shareholders' equity | $99,678 | $90,793 | - Total assets increased by $8.498 million, driven by a significant increase in cash and cash equivalents and equity securities, partially offset by a decrease in fixed income securities[266] - Shareholders' equity increased by $8.885 million, primarily due to an increase in retained earnings[266] Consolidated Statements of Income Value Line's net income for fiscal 2025 was $20.686 million ($2.20 EPS), an 8.8% increase, supported by EAM interests and investment gains Consolidated Statements of Income (in thousands, except share & per share amounts) | Metric | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | | :-------------------------------------------- | :-------------------- | :-------------------- | :-------------------- | | Investment periodicals and related publications | $24,682 | $25,420 | $26,232 |\ | Copyright fees | $10,397 | $12,067 | $13,463 |\ | Total publishing revenues | $35,079 | $37,487 | $39,695 |\ | Total expenses | $29,094 | $28,346 | $28,225 |\ | Income from operations | $5,985 | $9,141 | $11,470 |\ | Revenues interest in EAM Trust | $16,183 | $11,900 | $10,397 |\ | Profits interest in EAM Trust | $2,135 | $1,382 | $734 |\ | Investment gains | $3,238 | $2,764 | $1,174 |\ | Income before income taxes | $27,541 | $25,187 | $23,775 |\ | Income tax provision | $6,855 | $6,171 | $5,706 |\ | Net income | $20,686 | $19,016 | $18,069 |\ | Earnings per share, basic & fully diluted | $2.20 | $2.02 | $1.91 |\ | Weighted average number of common shares | 9,417,097 | 9,428,379 | 9,458,605 | - Net income increased by 8.8% in fiscal 2025, driven by higher revenues and profits interests from EAM Trust and investment gains, despite a decrease in total publishing revenues and income from operations[268] Consolidated Statements of Comprehensive Income Value Line reported comprehensive income of $20.873 million in fiscal 2025, including net income and $187,000 in other comprehensive income Consolidated Statements of Comprehensive Income (in thousands) | Metric | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | | :-------------------------------------------- | :-------------------- | :-------------------- | :-------------------- | | Net income | $20,686 | $19,016 | $18,069 |\ | Change in unrealized gains/(losses) on Fixed Income securities, net of taxes | $187 | $(627) | $398 |\ | Other comprehensive income/(loss) | $187 | $(627) | $398 |\ | Comprehensive income | $20,873 | $18,389 | $18,467 | - Comprehensive income for fiscal 2025 was $20.873 million, reflecting net income and a positive change in unrealized gains on fixed income securities[270] Consolidated Statements of Cash Flows Value Line generated $20.243 million cash from operations and $21.200 million from investing activities in fiscal 2025, increasing cash and cash equivalents Consolidated Statements of Cash Flows (in thousands) | Cash Flow Category | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | | :-------------------------------------- | :-------------------- | :-------------------- | :-------------------- | | Net cash provided by operating activities | $20,243 | $17,932 | $18,178 |\ | Net cash provided by/(used in) investing activities | $21,200 | $(10,048) | $(26,116) |\ | Net cash used in financing activities | $(11,756) | $(11,084) | $(14,175) |\ | Net change in cash and cash equivalents | $29,687 | $(3,200) | $(22,113) |\ | Cash, cash equivalents and restricted cash at end of year | $34,382 | $4,695 | $7,895 | - Operating cash inflows increased due to higher cash receipts from EAM and publication subscription sales, and lower income tax payments[188] - Investing activities shifted from significant outflows to a $21.2 million inflow in fiscal 2025, driven by re-investing fixed income maturities into higher-yield money market funds[189][272] - Financing activities primarily consisted of dividend payments ($11.303 million) and treasury stock repurchases ($453,000) in fiscal 2025[190][272] Consolidated Statement of Changes in Shareholders' Equity Value Line's shareholders' equity increased to $99.678 million in fiscal 2025, driven by net income and unrealized gains, offset by dividends and share repurchases Consolidated Statement of Changes in Shareholders' Equity (in thousands) | Metric | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | April 30, 2023 (in thousands) | | :-------------------------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | | Balance as of April 30 | $99,678 | $90,793 | $83,673 |\ | Net income | $20,686 | $19,016 | $18,069 |\ | Change in unrealized gains/(losses) on Fixed Income securities, net of taxes | $187 | $(627) | $398 |\ | Purchase of treasury stock | $(453) | $(523) | $(4,704) |\ | Dividends declared | $(11,535) | $(10,746) | $(9,735) |\ | Retained earnings | $113,400 | $104,249 | $95,979 | - Shareholders' equity increased by $8.885 million in fiscal 2025, driven by net income and unrealized gains, partially offset by dividends and treasury stock repurchases[276][277] - Dividends declared per share increased to $0.325 for the quarter ended April 30, 2025, from $0.30 in the prior year[277] Notes to the Consolidated Financial Statements These notes detail Value Line's accounting policies, related party transactions, investments, income taxes, and lease commitments, including EAM equity method and fair value measurements - The Company's financial statements are prepared in conformity with U.S. GAAP, requiring management to make estimates and assumptions[281] - Revenue from subscriptions is recognized ratably over the subscription life, while copyright fees are recognized monthly based on asset-based contractual arrangements[284][285] - The investment in EAM Trust is accounted for using the equity method, as Value Line does not have a controlling financial interest despite significant non-voting revenue and profit interests[283][288][289][335] - Investments are classified as equity securities and available-for-sale fixed income securities, valued at market, with unrealized gains/losses recognized in income or comprehensive income, respectively[293] - The effective income tax rate for fiscal 2025 was 24.89%, an increase from 24.50% in 2024, primarily due to higher state and local tax rates[341] Note 1 - Organization and Summary of Significant Accounting Policies Value Line's core business involves investment periodicals and licensing, with its EAM Trust investment accounted for by the equity method as a VIE - Value Line's core business is producing investment periodicals and research, and licensing proprietary information, with a significant non-voting interest in EAM[280] - The Company accounts for its investment in EAM using the equity method, as it is a Variable Interest Entity (VIE) where Value Line is not the primary beneficiary and does not have a controlling financial interest[282][283][288][335] - Subscription revenues are recognized ratably over the subscription life, and copyright fees are recognized monthly based on asset-based contractual arrangements[284][285] - Recent ASUs (2023-07, 2023-09, 2024-03) on segment disclosures, income tax disclosures, and expense disaggregation are being adopted or evaluated[290][291][292] Fair Value Measurements of Investments (in thousands) | As of April 30, 2025 | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | Total (in thousands) | | :------------------- | :--------------------- | :--------------------- | :--------------------- | :------------------- | | Cash equivalents | $33,615 | $- | $- | $33,615 |\ | Equity securities | $20,879 | $- | $- | $20,879 |\ | Available-for-sale fixed income securities | $22,435 | $- | $- | $22,435 |\ | Total | $76,929 | $- | $- | $76,929 |\ | As of April 30, 2024 | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | Total (in thousands) | | :------------------- | :--------------------- | :--------------------- | :--------------------- | :------------------- | | Cash equivalents | $4,136 | $- | $- | $4,136 |\ | Equity securities | $16,344 | $- | $- | $16,344 |\ | Available-for-sale fixed income securities | $47,361 | $250 | $- | $47,611 |\ | Total | $67,841 | $250 | $- | $68,091 | Note 2 - Supplementary Cash Flow Information This note reconciles cash, cash equivalents, and restricted cash to $34.382 million at April 30, 2025, and details income tax payments Reconciliation of Cash, Cash Equivalents, and Restricted Cash (in thousands) | Metric | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | | :-------------------------------------------- | :-------------------- | :-------------------- | :-------------------- | | Cash and cash equivalents | $34,077 | $4,390 | $7,590 |\ | Restricted cash | $305 | $305 | $305 |\ | Total cash, cash equivalents, and restricted cash | $34,382 | $4,695 | $7,895 | Income Tax Payments (in thousands) | Tax Type | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | | :---------------------------- | :-------------------- | :-------------------- | :-------------------- | | State and local income tax payments | $1,179 | $1,090 | $923 |\ | Federal income tax payments | $5,058 | $5,448 | $4,425 | Note 3 - Related Party Transactions Value Line has significant non-voting revenue and profit interests in EAM, with EAM-managed assets increasing to $4.68 billion, and engages in transactions with its Parent, AB&Co. - Value Line holds non-voting revenue and profit interests in EAM, entitling it to 41%-55% of EAM's non-distribution revenues and 50% of its residual profits, with quarterly distributions[310][312] Non-voting Revenues and Profits Interests in EAM (in thousands) | Metric | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | | :-------------------------- | :-------------------- | :-------------------- | :-------------------- | | Non-voting revenues interest in EAM | $16,183 | $11,900 | $10,397 |\ | Non-voting profits interest in EAM | $2,135 | $1,382 | $734 |\ | Total | $18,318 | $13,282 | $11,131 | - Total assets in Value Line Funds managed by EAM increased by 12.0% to $4.68 billion at April 30, 2025[309] - The Company was reimbursed $356,000 by AB&Co. in fiscal 2025 for services and made federal income tax payments of $5.058 million to AB&Co. under a tax-sharing arrangement[314][315] - AB&Co., the Parent, owned 91.74% of Value Line's outstanding common stock as of April 30, 2025[316] Note 4 - Investments Value Line's investments include equity securities ($20.879 million fair value) and fixed income securities ($22.435 million fair value), with $3.238 million in investment gains - Investments consist of equity securities (ETFs) and available-for-sale fixed income securities (government debt, CDs), classified as current assets[317][318][321] Equity Securities (in thousands) | Metric | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | | :-------------- | :---------------------------- | :---------------------------- | | Aggregate Cost | $15,513 | $11,663 |\ | Fair Value | $20,879 | $16,344 |\ | Gross Unrealized Gains (2025) | $5,450 | N/A |\ | Gross Unrealized Losses (2025) | $(84) | N/A | Fixed Income Securities (in thousands) | Metric | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | | :-------------- | :---------------------------- | :---------------------------- | | Aggregate Cost | $22,518 | $47,931 |\ | Fair Value | $22,435 | $47,611 |\ | Average Yield (%) | 5.99 | 4.40 | Investment Gains/(Losses) (in thousands) | Metric | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | | :------------------------------------------------ | :-------------------- | :-------------------- | :-------------------- | | Dividend income | $553 | $551 | $595 |\ | Interest income | $2,126 | $1,934 | $706 |\ | Investment gains/(losses) recognized on sales of equity securities | $(123) | $(1) | $(81) |\ | Unrealized gains/(losses) recognized on equity securities held at period end | $682 | $288 | $(45) |\ | Total investment gains/(losses) | $3,238 | $2,764 | $1,174 | - The investment in EAM Trust was $60.807 million at April 30, 2025, and is monitored for impairment, with no losses recorded in fiscal 2025 or 2024[328][331] Note 5 - Variable Interest Entity EAM is a Variable Interest Entity (VIE) not consolidated by Value Line due to lack of control, with maximum exposure to loss limited to its $60.807 million investment - EAM is considered a Variable Interest Entity (VIE) in relation to Value Line[334] - Value Line does not consolidate EAM because it lacks the power to direct EAM's most significant economic activities, holding only non-voting interests and protective rights[335] Value Line's Exposure to EAM (in thousands) | Metric | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | | :-------------------------------------------- | :---------------------------- | :---------------------------- | | VIE Assets (EAM's total assets) | $63,699 | $63,076 |\ | Value Line Investment in EAM Trust | $60,807 | $60,134 |\ | Maximum Exposure to Loss | $60,807 | $60,134 | - Value Line's maximum exposure to loss from EAM is limited to its initial investment and any undistributed revenues and profits interests retained in EAM[337] Note 6 - Property and Equipment Net property and equipment totaled $3.475 million at April 30, 2025, carried at cost and depreciated, including a right-of-use asset for operating leases - Property and equipment are carried at cost, with depreciation and amortization provided using the straight-line method[339] Property and Equipment, Net (in thousands) | Metric | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | | :-------------------------------------------- | :---------------------------- | :---------------------------- | | Building and leasehold improvements | $652 | $652 |\ | Operating lease - right-of-use asset | $3,037 | $4,090 |\ | Furniture and equipment | $2,430 | $2,274 |\ | Total (gross) | $6,119 | $7,016 |\ | Accumulated depreciation and amortization | $(2,644) | $(2,576) |\ | Total property and equipment, net | $3,475 | $4,440 | Note 7 - Federal, State and Local Income Taxes Value Line's income tax provision was $6.855 million in fiscal 2025, with an effective tax rate of 24.89%, primarily due to increased state and local tax rates Income Tax Provision (in thousands) | Tax Type | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | | :---------------------------- | :-------------------- | :-------------------- | :-------------------- | | Current tax expense | $6,572 | $6,079 | $5,686 |\ | Deferred tax expense (benefit) | $283 | $92 | $20 |\ | Income tax provision | $6,855 | $6,171 | $5,706 | Effective Income Tax Rate | Fiscal Year | Effective Income Tax Rate (%) | | :---------- | :---------------------------- | | 2025 | 24.89 |\ | 2024 | 24.50 |\ | 2023 | 24.00 | - The increase in the effective tax rate in fiscal 2025 was primarily due to an increase in the state and local tax rate from 3.72% to 4.09%[341] Long-Term Deferred Tax Liability (in thousands) | Component | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | | :-------------------------------------------- | :---------------------------- | :---------------------------- | | Federal tax liability (benefit) | $10,772 | $10,596 |\ | State and local tax liabilities (benefits) | $2,423 | $2,297 |\ | Deferred tax liability, long-term | $13,195 | $12,893 | - The deferred tax liability is primarily from the deferred gain on deconsolidation of the Company's asset management and mutual fund distribution subsidiaries[342] Note 8 - Employees' Profit Sharing and Savings Plan Value Line maintains a contributory Profit Sharing and Savings Plan for employees, with a discretionary annual contribution estimated at $422,000 for fiscal 2025 - The Company maintains a qualified, contributory Profit Sharing and Savings Plan for substantially all employees[346] - The annual Company contribution is discretionary, based on eligible employee salaries and consolidated net operating income[346] Estimated Profit Sharing Plan Contribution (in thousands) | Fiscal Year | Contribution (in thousands) | | :---------- | :-------------------------- | | 2025 | $422 |\ | 2024 | $411 |\ | 2023 | $410 | Note 9 - Lease Commitments Value Line leases New York office space until November 2027, recognizing a right-of-use asset and lease liability under ASU 2016-02, with $1.276 million in lease expense - The Company leases office space in New York, NY, under an operating lease agreement ending November 29, 2027[348][352] - ASU 2016-02, "Leases (Topic 842)," was adopted in May 2019, requiring recognition of a right-of-use asset and lease liability for leases longer than one year[350][351] - As of April 30, 2025, the long-term lease asset was $3.037 million, and total operating lease liabilities were $3.579 million[354][357] - Lease expense for fiscal 2025 was $1.276 million, and $1.428 million was paid in rent, classified within operating activities[355][356] Undiscounted Future Minimum Lease Payments (in thousands) | Fiscal years ended April 30, | Amount (in thousands) | | :--------------------------- | :-------------------- | | 2026 | $1,461 |\ | 2027 | $1,493 |\ | 2028 | $882 |\ | Total | $3,836 | Note 10 - Disclosure of Credit Risk of Financial Instruments with Off-Balance Sheet Risk A single customer accounted for 29.6% of Value Line's publishing revenues in fiscal 2025, representing a significant concentration and credit risk - A single customer accounted for a significant portion of total publishing revenues[359] Publishing Revenues from Single Customer | Fiscal Year | Percentage of Total Publishing Revenues (%) | | :---------- | :------------------------------------------ | | 2025 | 29.6 |\ | 2024 | 32.2 |\ | 2023 | 33.9 | Note 11 - Comprehensive Income Value Line reports comprehensive income, including net income and other comprehensive income (OCI) of $187,000 from unrealized gains on fixed income securities - Comprehensive income includes net income and other comprehensive income (OCI)[360] - The change in valuation of fixed income securities, net of deferred income taxes, is recorded in Accumulated Other Comprehensive Income[361] Components of Comprehensive Income (in thousands) | Fiscal Year Ended April 30, 2025 | Amount Before Tax (in thousands) | Tax (Expense) / Benefit (in thousands) | Amount Net of Tax (in thousands) | | :------------------------------- | :------------------------------- | :------------------------------------- | :------------------------------- | | Change in unrealized gains on available-for-sale fixed income securities | $237 | $(50) | $187 |\ | Fiscal Year Ended April 30, 2024 | Amount Before Tax (in thousands) | Tax (Expense) / Benefit (in thousands) | Amount Net of Tax (in thousands) | | :------------------------------- | :------------------------------- | :------------------------------------- | :------------------------------- | | Change in unrealized losses on available-for-sale fixed income securities | $(793) | $166 | $(627) |\ | Fiscal Year Ended April 30, 2023 | Amount Before Tax (in thousands) | Tax (Expense) / Benefit (in thousands) | Amount Net of Tax (in thousands) | | :------------------------------- | :------------------------------- | :------------------------------------- | :------------------------------- | | Change in unrealized gains on available-for-sale fixed income securities | $503 | $(105) | $398 | [Note 12 - Accounting for the Costs of Computer Software Developed for Internal Use](index=79&type=section&id=No