Executive Summary of the Business
The Company's core business is producing investment periodicals and their underlying research and making available copyright data, including certain proprietary Ranking System and other proprietary information, to third parties under written agreements for use in third-party managed and marketed investment products and for other purposes. Value Line markets under well-known brands including Value Line®, the Value Line logo®, The Value Line Investment Survey®, Smart Research, Smarter Investing™ and The Most Trusted Name in Investment Research®. The name "Value Line" as used to describe the Company, its products, and its subsidiaries, is a registered trademark of the Company. Effective December 23, 2010, EULAV Asset Management Trust (“EAM”) was established to provide the investment management services to the Value Line Funds, institutional and individual accounts and provide distribution, marketing, and administrative services to the Value Line® Mutual Funds ("Value Line Funds"). The Company maintains a significant investment in EAM from which it receives payments in respect of its non-voting revenues and non-voting profits interests.
The Company’s target audiences within the investment research field are individual investors, colleges, libraries, and investment management professionals. Individuals come to Value Line for complete research in one package. Institutional licensees consist of corporations, financial professionals, colleges, and municipal libraries. Libraries and universities offer the Company’s detailed research to their patrons and students. Investment management professionals use the research and historical information in their day-to-day businesses. The Company has a dedicated department that solicits institutional subscriptions.
Payments received for new and renewal subscriptions and the value of receivables for amounts billed to retail and institutional customers are recorded as unearned revenue until the order is fulfilled. As the orders are fulfilled, the Company recognizes revenue in equal installments over the life of the particular subscription. Accordingly, the subscription fees to be earned by fulfilling subscriptions after the date of a particular balance sheet are shown on that balance sheet as unearned revenue within current and long-term liabilities.
The investment periodicals and related publications (retail and institutional) and fees from copyright data including the proprietary Ranking System information and other proprietary information consolidate into one segment called Publishing.
The Company’s move to new headquarters in February 2017 resulted in lower rent expense over the term of the sublease.
Asset Management and Mutual Fund Distribution Businesses
The business of EAM is managed by its trustees each owning 20% of the voting profits interest in EAM and by its officers subject to the direction of the trustees. The Company’s non-voting revenues and non-voting profits interests in EAM entitle it to receive a range of 41% to 55% of EAM’s revenues (excluding distribution revenues) from EAM’s mutual fund and separate account business and 50% of the residual profits of EAM (subject to temporary increase in certain limited circumstances). The Voting Profits Interest Holders will receive the other 50% of residual profits of EAM. Distribution is not less than 90% of EAM’s profits payable each fiscal quarter under the provisions of the EAM Trust Agreement. Value Line’s percent share of EAM’s revenues calculated each fiscal quarter was 49.73%, 50.28% and 50.88% during the first, second and third quarters of fiscal 2018, respectively, and 49.45%, 49.14% and 49.19% during the first, second and third quarters of fiscal 2017, respectively.
Pursuant to the EAM Declaration of Trust, the Company granted EAM the right to use the Value Line name for all existing Value Line Funds and agreed to supply the Value Line proprietary Ranking System information to EAM without charge or expense.
Business Environment
The nation's long business expansion, which is now approaching a decade in duration, continues to press ahead. On point, after a trio of solid quarterly increases in the gross domestic product to close out the final nine months of 2017, recent trends in employment, wage growth, personal income and spending, and the leading indicators suggest that the opening three months of this year will bring additional improvement.
Encouragingly, this latest buildup in economic momentum seems likely to continue this year. True, there could be some early-year choppiness, as there often is during the seasonally low opening period, although weather-related issues have been less numerous than in recent years. Meanwhile, once spring arrives, GDP should kick into somewhat higher gear, with growth moving back up into the 3% range that was in place during the middle quarters of last year. The likely improvement should be driven by increases in infrastructure spending, gains in industrial activity, additional durability in housing, and solid levels of consumer spending by a public that, for the most part, has seen its wealth expand due to the historic bull market, increasing pay checks and rising real estate values.
Of course, few up cycles continue without interruption, and this one figures to be no exception. And although we do not see a recession on the horizon--with the current expansion likely to last into the early years of the next decade given the absence of growth or inflation excesses to date--there are risks that should not be dismissed. Chief among these would be the failure of fiscal initiative and monetary policy adjustments to keep the economic ball rolling without inviting major overheating. Other risks would be serious political headwinds at home or damaging flare-ups overseas.
For now, though, the business outlook continues to be bright and this is helping to keep the stock market at a high level, albeit with a few high-profile reversals along the way, as P/E ratios remain at the upper end of their historic range.
Results of Operations for the Three and Nine Months Ended January 31, 2018 and January 31, 2017
The following table illustrates the Company’s key components of revenues and expenses.
| | | Three Months Ended January 31, | | | Nine Months Ended January 31, | |
($ in thousands, except earnings per share) | | 2018 | | | 2017 | | | Change | | | 2018 | | | 2017 | | | Change | |
Income from operations including gain on sale of operating facility in fiscal 2017 | | $ | 787 | | | $ | (212 | ) | | #N/A | | | $ | 2,760 | | | $ | 7,948 | | | | -65.3 | % |
Non-voting revenues and non-voting profits interests from EAM Trust | | $ | 2,284 | | | $ | 1,934 | | | | 18.1 | % | | | 6,657 | | | | 5,782 | | | | 15.1 | % |
Income from operations plus non-voting revenues and non-voting profits interests from EAM Trust | | $ | 3,071 | | | $ | 1,722 | | | | 78.3 | % | | $ | 9,417 | | | $ | 13,730 | | | | -31.4 | % |
Operating expenses | | $ | 8,307 | | | $ | 8,859 | | | | -6.2 | % | | $ | 24,237 | | | $ | 25,993 | | | | -6.8 | % |
Income from securities transactions, net | | $ | 258 | | | $ | 132 | | | | 95.5 | % | | $ | 445 | | | $ | 226 | | | | 96.9 | % |
Income before income taxes | | $ | 3,329 | | | $ | 1,854 | | | | 79.6 | % | | $ | 9,862 | | | $ | 13,956 | | | | -29.3 | % |
Net income | | $ | 8,996 | | | $ | 1,445 | | | | 522.6 | % | | $ | 13,283 | | | $ | 9,283 | | | | 43.1 | % |
Earnings per share | | $ | 0.93 | | | $ | 0.15 | | | | 520.0 | % | | $ | 1.37 | | | $ | 0.96 | | | | 42.7 | % |
During the nine months ended January 31, 2018, the Company’s net income of $13,283,000, or $1.37 per share, was $4,000,000 or 43.1% above net income of $9,283,000, or $0.96 per share, for the nine months ended January 31, 2017. During the nine months ended January 31, 2018 there were 9,705,347 average common shares outstanding as compared to 9,724,377 average common shares outstanding during the nine months ended January 31, 2017. Income from operations of $2,760,000 during the nine months ended January 31, 2018 was $5,188,000 below income from operations of $7,948,000, which included a pre-tax gain of $8,123,000 from the sale of the Company's operating facility during the nine months ended January 31, 2017 for which it received net proceeds of $11,555,000 on July 29, 2016. During the three months ended January 31, 2018, the Company’s net income of $8,996,000, or $0.93 per share, was $7,551,000 above net income of $1,445,000, or $0.15 per share, for the three months ended January 31, 2017 due to the fiscal 2018 reduction in the U.S. statutory federal corporate income tax rate from 35% to 21% on the Company’s long-term deferred tax liabilities, resulting in a tax benefit of 65.87% of pre-tax income for the nine months ended January 31, 2018. The Company re-calculated its net deferred tax assets and liabilities using the Federal Tax Rate under the Tax Act. The effect of the re-calculation is reflected entirely in the third quarter ended January 31, 2018 (the period that includes the enactment date) and is allocated directly to both current and deferred income tax expenses from continuing operations. The decrease in income from operations during the nine months ended January 31, 2018, was partially offset by a $2,913,000 decrease in depreciation and amortization expense in fiscal year 2018.
Total operating revenues
| | | Three Months Ended January 31, | | | Nine Months Ended January 31, | |
($ in thousands) | | 2018 | | | 2017 | | | Change | | | 2018 | | | 2017 | | | Change | |
Investment periodicals and related publications: | | | | | | | | | | | | | | | | | | | | | | | | |
Print | | $ | 3,479 | | | $ | 3,446 | | | | 1.0 | % | | $ | 10,405 | | | $ | 10,601 | | | | -1.8 | % |
Digital | | | 3,912 | | | | 4,022 | | | | -2.7 | % | | | 11,852 | | | | 12,146 | | | | -2.4 | % |
Total investment periodicals and related publications | | | 7,391 | | | | 7,468 | | | | -1.0 | % | | | 22,257 | | | | 22,747 | | | | -2.2 | % |
Copyright data fees | | | 1,703 | | | | 1,179 | | | | 44.4 | % | | | 4,740 | | | | 3,071 | | | | 54.3 | % |
Total publishing revenues | | | 9,094 | | | | 8,647 | | | | 5.2 | % | | | 26,997 | | | | 25,818 | | | | 4.6 | % |
Gain on sale of operating facility | | | - | | | | - | | | | n/a | | | | - | | | | 8,123 | | | | n/a | |
Total revenues | | $ | 9,094 | | | $ | 8,647 | | | | 5.2 | % | | $ | 26,997 | | | $ | 33,941 | | | | -20.5 | % |
Within investment periodicals and related publications, subscription sales orders are derived from print and digital products. The following chart illustrates the changes in the sales orders associated with print and digital subscriptions.
Sources of subscription sales
| | | Three Months Ended January 31, | | | Nine Months Ended January 31, | |
| | | 2018 | | | | | | | 2017 | | | | | | | 2018 | | | | | | | 2017 | | | | | |
| | | Print | | | Digital | | | Print | | | Digital | | | Print | | | Digital | | | Print | | | Digital | |
New Sales | | | 15.3 | % | | | 14.2 | % | | | 10.3 | % | | | 13.4 | % | | | 16.1 | % | | | 15.2 | % | | | 12.7 | % | | | 16.2 | % |
Conversion and Renewal Sales | | | 84.7 | % | | | 85.8 | % | | | 89.7 | % | | | 86.6 | % | | | 83.9 | % | | | 84.8 | % | | | 87.3 | % | | | 83.8 | % |
Total Gross Sales | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
During the nine months ended January 31, 2018 new sales of print publications increased as a percent of the total gross print sales as a result of an increase in new print retail sales orders while conversion and renewal sales of print orders decreased from the prior fiscal year. New sales of digital publications decreased as a percent of the total gross digital sales as a result of a decrease in new digital retail sales orders, related to a two-year trend of lower advertising expenditures. Conversion and renewal sales of digital services slightly increased as a percent of the total gross digital sales over the prior fiscal year as a result of a slower decline than the decline in new sales due to efforts by our in-house Retail and Institutional Sales departments.
| | | As of January 31, | | | As of April 30, | | | As of January 31, | | | Change | |
($ in thousands) | | 2018 | | | 2017 | | | 2017 | | | Jan-18 vs. Apr-17 | | | Jan-18 vs. Jan-17 | |
Unearned subscription revenue (current and long-term liabilities) | | $ | 24,112 | | | $ | 25,659 | | | $ | 24,239 | | | | -6.0 | % | | | -0.5 | % |
Unearned subscription revenue as of January 31, 2018 is comparable to January 31, 2017 and is 6.0% below April 30, 2017. The decline from April 30, 2017, reflects both the timing of advertising for order generation and the fact that April 30th is the usual annual peak. A certain amount of variation is to be expected due to the volume of new orders and timing of renewal orders, direct mail campaigns and large Institutional Sales orders.
Investment periodicals and related publications revenues
Investment periodicals and related publications revenues of $22,257,000 decreased $490,000, or 2.2%, for the nine months ended January 31, 2018, as compared to the prior fiscal year. The Company continued its efforts to attract new subscribers through various marketing channels, primarily direct mail, e-mail, and by the efforts of our sales personnel. Total product line circulation at January 31, 2018 was 3.7% below total product line circulation at January 31, 2017. The Company has been successful in growing revenues from digitally-delivered investment periodicals within the institutional market. Institutional Sales generated total sales orders of $9,789,000 for the nine months ended January 31, 2018 which were 1.1%, above comparable total sales orders of $9,687,000 for the nine months ended January 31, 2017. Revenues from institutional subscribers increased 1.6% above the prior fiscal year. This revenue growth continues a positive trend for Institutional Sales, but is not sufficient to wholly offset the lost revenues from retail subscribers. We have also benefited from the ability to realize modest price increases as well as “converting” an increased volume of customers from lower cost retail to the more robust professional priced services. The retail telemarketing sales team generated total sales orders of $6,102,000 for the nine months ended January 31, 2018 which compares to $6,661,000 in the prior fiscal year.
Print publication revenues of $10,405,000 decreased $196,000 or 1.8% for the nine months ended January 31, 2018 as compared to the prior fiscal year. Revenues from institutional print publications increased $146,000 or 8.6% while print publications revenues from retail subscribers decreased $342,000 or 3.8% for the nine months ended January 31, 2018, as compared to the prior fiscal year. Total print circulation at January 31, 2018 was 3.1% above total print circulation at January 31, 2017. Digital publications revenues of $11,852,000 during the nine months ended January 31, 2018 were $294,000 or 2.4% below the prior fiscal year. Revenues from institutional digital publications increased less than 1% as compared to the prior fiscal year. Digital publications revenues from retail subscribers decreased $315,000 or 9.5% as compared to the prior fiscal year. Total digital circulation at January 31, 2018 was 12.6% below total digital circulation at January 31, 2017.
Value Line serves primarily individual and professional investors in stocks, who pay, primarily on annual subscription plans, for basic services or as much as $100,000 or more annually for comprehensive premium quality research, not obtainable elsewhere. The ongoing goal of adding new subscribers has led us to experiment with varying terms for our reliable, proprietary research including periods of intensive promotion of “starter” services and publications.
Copyright data fees
The Value Line proprietary Ranking System information (the “Ranking System”), a component of the Company’s flagship product, The Value Line Investment Survey, is also utilized in the Company’s copyright data business. The Ranking System is made available to EAM for specific uses without charge. The Ranking System is designed to be predictive over a six to twelve month period. For the six month period ended January 31, 2018, the combined Ranking System “Rank 1 & 2” stocks’ increase of 13.2% outperformed the Russell 2000 index’s increase of 10.5% during the comparable period. For the twelve month period ended January 31, 2018, the combined Ranking System “Rank 1 & 2” stocks’ increase of 16.0% outperformed the Russell 2000 index’s increase of 15.7% during the comparable period.
During the three and nine months ended January 31, 2018, copyright data fees of $1,703,000 and $4,740,000, respectively, were 44.4% and 54.3%, respectively, above the prior fiscal year. As of January 31, 2018, total third party sponsored assets were attributable to three contracts for copyright data representing $4.4 billion in various products, as compared to three contracts for copyright data representing $3.2 billion in assets at January 31, 2017.
The Company believes this part of the business is dependent upon the desire of third parties to use the Value Line trademarks and proprietary research for their products, on competition and on fluctuations in segments of the equity markets. Our quantitative specialists are seeking to develop and confirm reliable models for additional copyright data products.
Gain on sale of operating facility
On July 29, 2016, Value Line closed the sale of its 85,000 sq. ft. distribution, fulfillment and warehouse operating facility located at 125 East Union Avenue, East Rutherford, NJ, received net proceeds of $11,555,000 and reported an increment to net profits after tax during the first quarter of fiscal 2017 of approximately $5.2 million. The distribution, fulfillment and warehouse operations were relocated to an alternative 24,110 sq. ft. leased facility.
Investment management fees and services – (unconsolidated)
The Company has a substantial non-voting revenues and non-voting profits interests in EAM, the asset manager to the Value Line Mutual Funds. Accordingly, the Company does not report this operation as a separate business segment, although it maintains a significant interest in the cash flows generated by this business and will receive ongoing payments in respect of its non-voting revenues and non-voting profits interests.
Total assets in the Value Line Funds managed and/or distributed by EAM at January 31, 2018, were $2.6 billion, which is $300 million, or 13%, above total assets of $2.2 billion in the Value Line Funds managed and/or distributed by EAM at January 31, 2017. The increase reflects successful investment selection capturing market appreciation, offset by net redemptions in nine of the eleven Value Line Funds over the twelve month period ended January 31, 2018.
Shares of Value Line Strategic Asset Management Trust (“SAM”) and Value Line Centurion Fund (“Centurion”) are within certain variable annuity and variable life insurance contracts issued by The Guardian Insurance & Annuity Company, Inc. (“GIAC”); new contracts of this type are no longer sold.
Value Line Mutual Funds
| | | As of January 31, | |
($ in millions) | | 2018 | | | 2017 | | | Change | |
Variable annuity assets ("GIAC") | | $ | 418 | | | $ | 419 | | | | -0.2 | % |
All other open end equity and hybrid fund assets | | | 2,078 | | | | 1,754 | | | | 18.5 | % |
Total equity and hybrid funds | | | 2,496 | | | | 2,173 | | | | 14.9 | % |
Fixed income funds | | | 116 | | | | 129 | | | | -10.1 | % |
Total EAM managed net assets | | $ | 2,612 | | | $ | 2,302 | | | | 13.5 | % |
The Daily Income Fund managed by Reich & Tang Asset Management LLC was liquidated on July 29, 2015. Since then the Value Line Fund shareholders have been provided a money market fund alternative investment managed by Federated Government Obligations Fund.
EAM has successfully broadened distribution, particularly within the Adviser/Independent Broker Dealer (“IBD”) channel. Assets in that channel are up $105 million or 17% year over year as a result of market appreciation. The channel accounts for approximately 61% of gross sales for the year. Due to stronger gross annual sales than that of the prior year, the Advisor/IBD channel continues to be positive and the leading channel for net sales for the period. The marketing efforts have led to clients of over 4,000 financial advisers (individual reps or RIAs) owning a Value Line fund as of January 31, 2018. The largest distribution channel for the Value Line Funds remains the fund supermarket platforms such as Charles Schwab & Co., Inc., Fidelity, Pershing and E-Trade.
As of January 31, 2018, four of six Value Line equity and hybrid mutual funds, excluding SAM and Centurion, held an overall four or five star rating by Morningstar, Inc. As of January 31, 2018, three of the six equity and hybrid funds were in the top quintile of their respective peer groups for the one year period, and three of the six funds were in the top quintile for the three year period according to Morningstar.
Several of the Value Line Funds have received national recognition. The Value Line Mid-Cap Focused Fund, the Value Line Small Cap Opportunities Fund and the Value Line Income and Growth Fund have been named “Category Kings” in The Wall Street Journal in multiple months in calendar 2017.
EAM Trust - Results of operations before distribution to interest holders
The overall results of EAM’s investment management operations during the nine months ended January 31, 2018, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $12,096,000, 12b-1 fees and other fees of $4,844,000 and other income of $156,000 which included dividend, interest and licensing fees income. For the same period, total investment management fee waivers were $392,000 and 12b-1 fee waivers for four Value Line Funds were $583,000. During the nine months ended January 31, 2018, EAM's net income was $1,166,000 after giving effect to Value Line’s non-voting revenues interest of $6,074,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.
The overall results of EAM’s investment management operations during the nine months ended January 31, 2017, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $10,991,000, 12b-1 fees and other fees of $4,357,000 and other income of $136,000 which includes, dividend, interest and licensing fees income. For the same period, total investment management fee waivers were $308,000 and 12b-1 fee waivers for four Value Line Funds were $700,000. During the nine months ended January 31, 2017, EAM's net income was $786,000 after giving effect to Value Line’s non-voting revenues interest of $5,389,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.
As of January 31, 2018, three of the Value Line Funds have all or a portion of the 12b-1 fees being waived, and one fund has partial investment management fee waivers in place. Although, under the terms of the EAM Declaration of Trust, the Company no longer receives or shares in the revenues from 12b-1 distribution fees, the Company could benefit from the fee waivers to the extent that the resulting reduction of expense ratios and enhancement of the performance of the Value Line Funds attracts new assets.
The Value Line equity and hybrid funds assets represent 79.6%, variable annuity funds issued by GIAC represent 16.0%, and fixed income fund assets represent 4.4%, respectively, of total fund assets under management (“AUM”) as of January 31, 2018. At January 31, 2018, equity, hybrid and GIAC variable annuities AUM increased by 14.9% and fixed income AUM decreased by 10.1% as compared to the prior fiscal year.
EAM - The Company’s non-voting revenues and non-voting profits interests
The Company holds non-voting revenues and non-voting profits interests in EAM which entitle the Company to receive from EAM an amount ranging from 41% to 55% of EAM's investment management fee revenues from its mutual fund and separate accounts business, and 50% of EAM’s net profits, not less than 90% of which is distributed in cash every fiscal quarter.
The Company recorded income from its non-voting revenues interest and its non-voting profits interest in EAM as follows:
| | | Three Months Ended January 31, | | | Nine Months Ended January 31, | |
($ in thousands) | | 2018 | | | 2017 | | | Change | | | 2018 | | | 2017 | | | Change | |
Non-voting revenues interest | | $ | 2,057 | | | $ | 1,803 | | | | 14.1 | % | | $ | 6,074 | | | $ | 5,389 | | | | 12.7 | % |
Non-voting profits interest | | | 227 | | | | 131 | | | | 73.3 | % | | | 583 | | | | 393 | | | | 48.3 | % |
| | | $ | 2,284 | | | $ | 1,934 | | | | 18.1 | % | | $ | 6,657 | | | $ | 5,782 | | | | 15.1 | % |
During the nine months ended January 31, 2018 and January 31, 2017, the Company recorded revenues of $6,657,000 and $5,782,000, respectively, consisting of $6,074,000 and $5,389,000, from its non-voting revenues interest in EAM and $583,000 and $393,000, from its non-voting profits interest in EAM without incurring any directly related expenses.
Operating expenses
| | | Three Months Ended January 31, | | | Nine Months Ended January 31, | |
($ in thousands) | | 2018 | | | 2017 | | | Change | | | 2018 | | | 2017 | | | Change | |
Advertising and promotion | | $ | 1,096 | | | $ | 908 | | | | 20.7 | % | | $ | 2,718 | | | $ | 2,436 | | | | 11.6 | % |
Salaries and employee benefits | | | 4,739 | | | | 4,621 | | | | 2.6 | % | | | 13,813 | | | | 12,830 | | | | 7.7 | % |
Production and distribution | | | 1,524 | | | | 2,134 | | | | -28.6 | % | | | 4,322 | | | | 6,958 | | | | -37.9 | % |
Office and administration | | | 948 | | | | 1,196 | | | | -20.7 | % | | | 3,384 | | | | 3,769 | | | | -10.2 | % |
Total expenses | | $ | 8,307 | | | $ | 8,859 | | | | -6.2 | % | | $ | 24,237 | | | $ | 25,993 | | | | -6.8 | % |
Expenses within the Company are categorized into advertising and promotion, salaries and benefits, production and distribution, office and administration.
Operating expenses of $24,237,000 for the nine months ended January 31, 2018 decreased $1,756,000, or 6.8%, as compared to the nine months ended January 31, 2017 primarily due to a $2,913,000 decrease in depreciation and amortization expense partially offset by a $282,000 increase in advertising expenses and a $983,000 increase in salaries and employee benefits in fiscal 2018. During the three months ended January 31, 2018 operating expenses of $8,307,000 decreased $552,000, or 6.2%, as compared to the three months ended January 31, 2017 primarily due to a $619,000 decrease in depreciation and amortization expense partially offset by a $188,000 increase in advertising expenses and a $118,000 increase in salaries and employee benefits during the third quarter of fiscal 2018 as compared to the third quarter of the prior fiscal year.
Advertising and promotion
During the three and nine months ended January 31, 2018, advertising and promotion expenses of $1,096,000 and $2,718,000, respectively, increased $188,000 and $282,000, respectively, as compared to the prior fiscal year primarily due to an increase in media advertising expense. Direct marketing expenses of $889,000 during the nine months ended January 31, 2018 increased $170,000 as compared to the prior fiscal year due to the increases in expenses for TheValue Line Investment Survey and The Value Line Special Situations in fiscal 2018.
Salaries and employee benefits
During the three and nine months ended January 31, 2018 salaries and employee benefits of $4,739,000 and $13,813,000, respectively, increased $118,000 and $983,000, respectively, above those of the prior fiscal year’s which included the effect of a decrease of $215,000 in the capitalization of internal salaries and benefits expenses for digital project development during the nine months ended January 31, 2018, as compared to the prior fiscal year. The remaining increases in salaries and employee benefits, primarily in the Information Technology department (“IT”) related to the Company’s digital infrastructure and production processes, and Research and Quantitative Research departments.
Production and distribution
During the three and nine months ended January 31, 2018 production and distribution expenses of $1,524,000 and $4,322,000, respectively, decreased $610,000 and $2,636,000, respectively, as compared to the prior fiscal year. During the nine months ended January 31, 2018 a decrease of $2,945,000 was attributable to a decline in amortization of internally developed software costs related to digital security and product production software. During the nine months ended January 31, 2018 the decrease in production costs was partially offset by a $280,000 increase in production support of the Company’s website, maintenance of the Company’s publishing and application software and operating systems and web “framework”.
Office and administration
During the three and nine months ended January 31, 2018 office and administration expenses of $948,000 and $3,384,000, respectively, decreased $248,000 and $385,000, respectively, as compared to the prior fiscal year. During the nine months ended January 31, 2018 a decrease in office and administration expenses was primarily as a result of a $321,000 decrease in the cost of space rental due to lower rent payments resulting from the sub-lease agreement with ABM Industries, Incorporated (“ABM” or the “Sublandlord”). In accordance with GAAP, we allocated the benefit of the free rent period and other concessions over the term of our new NYC sublease, commenced on December 1, 2016. In fact, however, the Company did not pay cash rent for the new New York City office facility from December 2016 through October 2017. Additional decreases include $109,000 savings in real estate taxes due to the relocation of VLDC operations to a new leased NJ facility upon the sale of the operating facility in July 2016 and relocation of the NYC office to a new smaller facility at 551 Fifth Ave., NY in February 2017.
Concentration
During the nine months ended January 31, 2018, 17% of total publishing revenues of $26,997,000 were derived from a single customer.
Income from Securities Transactions, net
During the three months ended January 31, 2018 and January 31, 2017 the Company’s income from securities transactions, net, primarily derived from dividend income, was $258,000 and $132,000, respectively. During the nine months ended January 31, 2018 and January 31, 2017 the Company’s income from securities transactions, net, primarily derived from dividend income, was $445,000 and $226,000, respectively. There were no sales, or gains or losses from sales of equity securities during the nine months ended January 31, 2018. Proceeds from maturities and sales of government debt securities classified as available-for-sale during the nine months ended January 31, 2018 were $1,634,000. Proceeds from equity securities classified as available-for-sale were $152,000 and $14,000 during the nine months ended January 31, 2018 and January 31, 2017, respectively. There were no sales or proceeds from sales of government debt securities in fiscal 2017. In fiscal 2018 income from securities transactions, net, included capital gain distribution from ETFs of $152,000 which compares to capital gain distribution from ETFs of $39,000 in fiscal 2017.
Lease Commitments
In February 2017 the Company's headquarters and offices moved to a new location. On November 30, 2016, Value Line, Inc., received consent from the landlord at 551 Fifth Avenue, New York, NY to the terms of a new sublease agreement between Value Line, Inc. and ABM Industries, Incorporated commencing on December 1, 2016. Pursuant to the agreement Value Line leased from ABM 24,726 square feet of office space located on the second and third floors at 551 Fifth Avenue, New York, NY (“Building” or “Premises”) beginning on December 1, 2016 and ending on November 29, 2027. Base rent under the sublease agreement is $1,126,000 per annum during the first year with an annual increase in base rent of 2.25% scheduled for each subsequent year, payable in equal monthly installments on the first day of each month, subject to customary concessions in the Company’s favor and pass-through of certain increases in utility costs and real estate taxes over the base year. The Company provided a security deposit represented by a letter of credit in the amount of $469,000 in October 2016, which is scheduled to be reduced to $305,000 on September 30, 2021 and fully refunded after the sublease ends. This Building became the Company’s new corporate office facility. The Company is required to pay for certain operating expenses associated with the Premises as well as utilities supplied to the Premises. The sublease terms provide for a significant decrease (23% initially) in the Company’s annual rental expenditure taking into account free rent for the first six months of the sublease. Sublandlord provided Value Line a work allowance of $417,000 which accompanied with the six months free rent worth $563,000 was applied against the Company’s obligation to pay rent at our NYC headquarters, delaying the actual rent payments until November 2017.
On February 29, 2016, the Company’s subsidiary Value Line Distribution Center (“VLDC”) and Seagis Property Group LP (the “Landlord”) entered into a lease agreement, pursuant to which VLDC has leased 24,110 square feet of warehouse and appurtenant office space located at 205 Chubb Ave., Lyndhurst, NJ (“Warehouse”) beginning on May 1, 2016 and ending on April 30, 2024 (“Lease”). Base rent under the Lease is $192,880 per annum payable in equal monthly installments on the first day of each month, in advance during fiscal 2017 and will gradually increase to $237,218 in fiscal 2024, subject to customary increases based on operating costs and real estate taxes. The Company provided a security deposit in cash in the amount of $32,146, which will be fully refunded after the lease term expires. The lease is a net lease requiring the Company to pay for certain operating expenses associated with the Warehouse as well as utilities supplied to the Warehouse.
Effective income tax rate
The overall effective income tax rates, as a percentage of pre-tax ordinary income for the nine months ended January 31, 2018 and January 31, 2017 were (34.69%) and 33.48%, respectively. The aforementioned reduction in the income tax rate results in a tax benefit of 65.87% of pre-tax income for the nine months ended January 31, 2018, primarily attributable to the effect on the long-term deferred tax liability. The Company re-calculated its net deferred tax assets and liabilities using the Federal Tax Rate under the Tax Act. The effect of the re-calculation is reflected entirely in the third quarter ended January 31, 2018 (the period that includes the enactment date) and is allocated directly to both current and deferred income tax expenses from continuing operations. The Company's annualized overall effective tax rate fluctuates due to a number of factors, in addition to the new tax law, including but not limited to an increase or decrease in the ratio of items that do not have tax consequences to pre-tax income, the Company's geographic profit mix between tax jurisdictions, taxation method adopted by each locality, new interpretations of existing tax laws and rulings and settlements with tax authorities.
Liquidity and Capital Resources
The Company had working capital, defined as current assets less current liabilities, of $2,008,000 as of January 31, 2018 and working capital of $1,200,000 as of April 30, 2017. These amounts include short term unearned revenue of $18,361,000 and $20,188,000 reflected in total current liabilities at January 31, 2018 and April 30, 2017, respectively. Cash and short term securities were $22,622,000 and $23,133,000 as of January 31, 2018 and April 30, 2017, respectively.
The Company’s cash and cash equivalents include $3,716,000 and $6,066,000 at January 31, 2018 and April 30, 2017, respectively, invested primarily in Money Market Funds at brokers, which operate under Rule 2a-7 of the 1940 Securities and Exchange Act and invest primarily in short term U.S. government securities.
Cash from operating activities
The Company had cash outflows from operating activities of $2,232,000 during the nine months ended January 31, 2018 compared to cash outflows from operations of $5,241,000 during the nine months ended January 31, 2017. The decrease in cash outflows from fiscal 2017 to fiscal 2018 was primarily attributable to the payment of federal state and local income taxes on the sale of the Company’s operating facility in fiscal 2017, partially offset by the timing of receipts from accounts receivable, payments of invoices to relocate the Company’s operating facilities and the timing of prepaid expenses.
Cash from investing activities
The Company’s cash inflows from investing activities of $5,327,000 during the nine months ended January 31, 2018, compared to cash inflows from investing activities of $4,293,000 for the nine months ended January 31, 2017. During fiscal 2018, the Company continued to invest in fixed income securities. During the nine months ended January 31, 2017, the Company invested $11,089,000 in fixed income and equity securities from the net proceeds of $11,555,000 received from sale of the Company’s operating facility and invested $469,000 in a bank money market fund and pledged this investment to represent cash securing a Bank Letter of Credit issued to the sublandlord as a security deposit for the Company's new leased corporate office facility.
Cash from financing activities
During the nine months ended January 31, 2018, the Company’s cash outflows from financing activities were $5,434,000 and compared to cash outflows from financing activities of $5,646,000 for the nine months ended January 31, 2017. Cash outflows for financing activities included $191,000 and $681,000 for the repurchase of 11,150 and 41,461 shares of the Company’s common stock under the September 19, 2012 board approved common stock repurchase program, during fiscal years 2018 and 2017, respectively. Quarterly dividend payments of $0.18 per share during the nine months ended January 31, 2018 aggregated $5,243,000 as compared to $4,965,000 aggregated quarterly dividend payments of $0.17 per share during the nine months ended January 31, 2017.
On January 19, 2018, the Board of Directors of Value Line declared a quarterly dividend of $0.18 per share and a special dividend of $0.20 per share. At January 31, 2018 there were 9,700,515 common shares outstanding as compared to 9,715,128 common shares outstanding at January 31, 2017. The Company expects financing activities to continue to include use of cash for dividend payments and common share repurchases for the foreseeable future.
Management believes that the Company’s cash and other liquid asset resources used in its business together with the future cash flows from operations and from the Company’s non-voting revenues and non-voting profits interests in EAM will be sufficient to finance current and forecasted liquidity needs for the next twelve months. Management does not anticipate making any borrowings during the next twelve months. As of January 31, 2018, retained earnings and liquid assets were $45,288,000 and $22,622,000, respectively.
Seasonality
Our publishing revenues are comprised of subscriptions which are generally annual subscriptions, paid in advance. Our cash flows from operating activities are minimally seasonal in nature, primarily due to the timing of customer payments made for orders and subscription renewals.
Off-balance sheet arrangements
We are not a party to any off-balance sheet arrangements, other than operating leases entered into in the ordinary course of business.
Recent Accounting Pronouncements
In November 2015, the FASB issued ASU 2015-17, Income taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. Under existing standards, deferred taxes for each tax-paying jurisdiction are presented as a net current asset or liability and net long-term asset or liability. To simplify presentation, the new guidance will require that all deferred tax assets and liabilities, along with related valuation allowances, be classified as long-term on the balance sheet. As a result, each tax-paying jurisdiction will now only have one net long-term asset or liability. The new guidance does not change the existing requirement that prohibits offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, which will be our fiscal year 2018 beginning May 1, 2017. Due to the full valuation allowance on our U.S. deferred tax assets, we do not expect the adoption of ASU 2015-17 to have a material impact on our consolidated financial statements and related disclosures.
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02"). The core principle of Topic 842 requires that a lessee should recognize the assets and liabilities on the balance sheet and disclose key information about leasing arrangements. The amendments in ASU 2016-2 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The guidance is required to be adopted at the earliest period presented using a modified retrospective approach. The Company is in the process of evaluating the impact of this standard on the consolidated financial statements.
In August, 2016, the FASB issued Accounting Standards Update No. 2016-15, Classification of Certain Cash Receipts and Cash Payments ( a consensus of the Emerging Issues Task Force) ( “ASU 2016-15”). The amendments in ASU 2016-15 address eight specific cash flow issues and apply to all entities that are required to present a statement of cash flows under ASC Topic 230, Statement of Cash Flows. The amendments in ASU 2016-15 are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption during an interim period. The Company is in the process of evaluating the impact of this standard on the consolidated financial statements.
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. In addition, ASU No. 2014-09 requires disclosures of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU No. 2014-09 supersedes most existing U.S. GAAP revenue recognition principles, and it permits the use of either the retrospective or cumulative effect transition method. ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods. The Company is evaluating the effect that ASU No. 2014-09 will have on its consolidated condensed financial statements and related disclosures, as well as the expected method of adoption. The Company plans to adopt ASU No. 2014-09 in the first quarter of fiscal 2019, and does not believe it will have a material impact on its consolidated condensed financial statements and related disclosures.
Critical Accounting Estimates and Policies
The Company prepares its Consolidated Condensed Financial Statements in accordance with accepted accounting principles as in effect in the United States (U.S. “GAAP”). The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent, and the Company evaluates its estimates on an ongoing basis. Actual results may differ from these estimates under different assumptions or conditions. The Company believes the following critical accounting policies reflect the significant judgments and estimates used in the preparation of its Consolidated Condensed Financial Statements.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Market Risk Disclosures
The Company’sCompany’s Consolidated Condensed Balance Sheet includes a substantial amount of assets whose fair values are subject to market risks. The Company’s market risks are primarily associated with interest rates and equity price risk. The following sections address the significant market risks associated with the Company’s investment activities.
Interest Rate Risk
The Company’s strategy has been to acquire debt securities with low credit risk. Despite this strategy management recognizes and accepts the possibility that losses may occur. To limit the price fluctuation in these securities from interest rate changes, the Company’s management invests primarily in short-term obligations maturing within one year.
The fair values of the Company’sCompany’s fixed maturity investments will fluctuate in response to changes in market interest rates. Increases and decreases in prevailing interest rates generally translate into decreases and increases in fair values of those instruments. Additionally, fair values of interest rate sensitive instruments may be affected by prepayment options, relative values of alternative investments, and other general market conditions.
Fixed income securities consist of certificates of deposits and securitiessecurities issued by federal, state and local governments within the United States. As of January 31, 2018 and April 30, 20172022 the aggregate cost and fair value of fixed income securities classified as available-for-sale were $8,486,000$598,000 and $7,484,000, respectively,$597,000, respectively. As of April 30, 2021 the aggregate cost and fair value was $8,478,000of fixed income securities classified as available-for-sale were $2,596,000 and $7,479,000,$2,600,000, respectively.
The following table summarizes the estimated effects of hypothetical increases and decreases in interest rates on assets that are subject to interest rate risk. It is assumed that the changes occur immediately and uniformly to each category of instrument containing interest rate risks. The hypothetical changes in market interest rates do not reflect what could be deemed best or worst case scenarios. Variations in market interest rates could produce significant changes in the timing of repayments due to prepayment options available. For these reasons, actual results might differ from those reflected in the table.
Fixed Income Securities
| | | | | | | Estimated Fair Value after Hypothetical Change in Interest Rates | | | Estimated Fair Value after | |
| | | | | (in thousands) | | | Hypothetical Change in Interest Rates | |
| | | | | | | | | | | | | | | | | | | | | | | (in thousands) | |
| | | | | | | (bp = basis points) | | | (bp = basis points) | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | 6 mos. | | | 6 mos. | | | 1 yr. | | | 1 yr. | | | | | 1 year | | 1 year | | 1 year | | 1 year | |
| | | | | | | | | | | | | |
| | | Fair | | | 50bp | | | 50bp | | | 100bp | | | 100bp | | | Fair | | 50 bp | | 50 bp | | 100 bp | | 100 bp | |
| | | Value | | | increase | | | decrease | | | increase | | | decrease | | | Value | | | increase | | | decrease | | | increase | | | decrease | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
As of January 31, 2018 | | | | | | | | | | | | | | | | | | | | | |
As of January 31, 2022 | | |
Investments in securities with fixed maturities | | $ | 8,478 | | | $ | 8,550 | | | $ | 8,548 | | | $ | 8,673 | | | $ | 8,583 | | | $ | 597 | | | n/a | | | n/a | | | n/a | | | n/a | |
| | | | | | | | | | | | | | | | | | | | | | |
As of April 30, 2017 | | | | | | | | | | | | | | | | | | | | | |
As of April 30, 2021 | | |
Investments in securities with fixed maturities | | $ | 7,479 | | | $ | 7,473 | | | $ | 7,504 | | | $ | 7,473 | | | $ | 7,500 | | | $ | 2,600 | | | n/a | | | n/a | | | n/a | | | n/a | |
Management regularly monitors the maturity structure of the Company’sCompany’s investments in debt securities in order to maintain an acceptable price risk associated with changes in interest rates.
Equity Price Risk
The carrying values of investments subject to equity price risks are based on quoted market prices as of the balance sheet dates. Market prices are subject to fluctuation and, consequently, the amount realized in the subsequent sale of an investment may significantly differ from the reported market value. Fluctuation in the market price of a security may result from perceived changes in the underlying economic characteristics of the issuer, the relative price of alternative investments and general market conditions. Furthermore, amounts realized in the sale of a particular security may be affected by the relative quantity of the security being sold.
The Company’s equity investment strategy has been to acquire equity securities across a diversediversity of industry group.groups. The portfolio consists of ETFs held for dividend yield that attempt to replicate the performance of certain equity indexes and ETFs that hold preferred shares primarily of ETFs and select common stock holdings of blue chip companies with a concentration on large capitalization companies with high relative dividend yields.financial institutions. In order to maintain liquidity in these securities, the Company’s policy has been to invest in and hold in its portfolio, no more than 5% of the approximate average daily trading volume in any one issue. Additionally, the Company may purchase and hold non-leveraged ETFs whose performance inversely corresponds to the market value changes of investments in other ETF securities held in the equity portfolio for dividend yield.
As of January 31, 20182022 and April 30, 2017,2021, the aggregate cost of the equity securities, classified as available-for-sale, which consist of investments in the SPDR Series Trust S&P Dividend ETF (SDY), First Trust Value Line Dividend Index ETF (FVD), PowerSharesInvesco Financial Preferred ETF (PGF), Select Utilities Select Sector SPDR ETF (XLU), First Trust Value Line 100 ETF (FVL) and ProsharesProShares Trust S&P 500 Dividend Aristocrats ETF (NOBL), iShares Preferred & Income Securities ETF (PFF), and other Exchange Traded Funds and common stock equity securities was $8,385,000a combined total $22,746,000 and $19,105,000, respectively, and the fair value was $9,926,000$27,316,000 and $9,097,000,$23,582,000, respectively.
Equity Securities | | | | | | | | Estimated Fair Value after | | | Hypothetical Percentage | | | | | | | | Estimated Fair Value after | | Hypothetical Percentage | |
| | | | | | | Hypothetical | | Hypothetical | | | Increase (Decrease) in | | | | | | Hypothetical | | Hypothetical | | Increase (Decrease) in | |
($ in thousands) | | | Fair Value | | Price Change | | Change in Prices | | | Shareholders’ Equity | | | | Fair Value | | Price Change | | Change in Prices | | Shareholders’ Equity | |
As of January 31, 2018 | Equity Securities and ETFs held for dividend yield | | $ | 9,926 | | 30% increase | | $ | 12,904 | | | | 4.39 | % | |
As of January 31, 2022 | | Equity Securities and ETFs held for dividend yield | | $ | 27,316 | | 30% increase | | $ | 35,512 | | | 7.64 | % |
| | | | | | | 30% decrease | | $ | 6,948 | | | | -4.39 | % | | | | | 30% decrease | | $ | 19,122 | | | -7.64 | % |
Equity Securities | | | | | | | | Estimated Fair Value after | | | Hypothetical Percentage | |
| | | | | | | Hypothetical | | Hypothetical | | | Increase (Decrease) in | |
($ in thousands) | | | Fair Value | | Price Change | | Change in Prices | | | Shareholders’ Equity | |
As of April 30, 2017 | Equity Securities and ETFs held for dividend yield | | $ | 9,097 | | 30% increase | | $ | 11,826 | | | | 4.69 | % |
| | | | | | | 30% decrease | | $ | 6,368 | | | | -4.69 | % |
Equity Securities | | | | | | | | Estimated Fair Value after | | | Hypothetical Percentage | |
| | | | | | | Hypothetical | | Hypothetical | | | Increase (Decrease) in | |
($ in thousands) | | | Fair Value | | Price Change | | Change in Prices | | | Shareholders’ Equity | |
As of April 30, 2021 | Equity Securities and ETFs held for dividend yield | | $ | 23,582 | | 30% increase | | $ | 30,657 | | | | 7.81 | % |
| | | | | | | 30% decrease | | $ | 16,507 | | | | -7.81 | % |
Item 4. CONTROLS AND PROCEDURES
| | (a) | The Company maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) that are designed to ensure that information required to be disclosed in the Company’s reports filed with the SEC is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding disclosure. |
The Company’sCompany’s management has evaluated, with the participation of the Company’s Principal Executive Officer and Principal Financial Officer, the effectiveness of the Company’s disclosure controls and procedures, (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based on that evaluation, the Principal Executive Officer and Principal Financial Officer have concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report.
| | (b) | The registrant’s Principal Executive Officer and Principal Financial Officer have determined that there have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Part II – OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 1A. Risk Factors
ThereIn Part II, Item 1A of this Quarterly Report on Form 10-Q for the period ended January 31, 2022 new risk factors have been no material changesadded to the risk factors disclosed in Item 1A –- Risk Factors in the Company’sCompany's Annual Report on Form 10-K for the year ended April 30, 20172021 filed with the SEC on July 26, 2017.29, 2021. The new risk factors reflect management's continuing analysis of developments in the Company's business environment, rather than any specific event or particular issue.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
| (a) | (c) Purchases of Equity Securities by the Company
|
The following table provides information with respect to all repurchases of common stock made by or on behalf of the Company during the fiscal quarter ended January 31, 2018.2022. All purchases listed below were made in the open market at prevailing market prices.
| | | ISSUER PURCHASES OF EQUITY SECURITIES | |
| | | (a) Total Number of Shares (or Units) Purchased | | | (b) Average Price Paid per Share (or Unit) | | | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | | | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | |
November 1 - 30, 2017 | | | 2,285 | | | $ | 18 | | | | 2,285 | | | $ | 418,000 | |
| | | | | | | | | | | | | | | | | |
December 1 - 31, 2017 | | | - | | | | - | | | | - | | | | 418,000 | |
| | | | | | | | | | | | | | | | | |
January 1 - 31, 2018 | | | - | | | | - | | | | - | | | | 418,000 | |
Total | | | 2,285 | | | $ | 18 | | | | 2,285 | | | $ | 418,000 | |
| | | ISSUER PURCHASES OF EQUITY SECURITIES | |
| | | (a) Total Number of Shares (or Units) Purchased | | | (b) Average Price Paid per Share (or Unit) | | | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | | | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | |
| | | | | | | | | | | | | | | | | |
November 1 - 30, 2021 | | | 6,074 | | | $ | 41.54 | | | | 6,074 | | | $ | 1,394,000 | |
| | | | | | | | | | | | | | | | | |
December 1 - 31, 2021 | | | 3,944 | | | | 41.88 | | | | 3,944 | | | | 1,229,000 | |
| | | | | | | | | | | | | | | | | |
January 1 - 31, 2022 | | | 7,400 | | | | 52.35 | | | | 7,400 | | | | 841,000 | |
Total | | | 17,418 | | | $ | 46.21 | | | | 17,418 | | | $ | 841,000 | |
| | | | | | | | | | | | | | | | | |
| March 14, 2022 | | | | | | | | | | | | | | $ | 2,000,000 | |
All shares represent shareswere repurchased pursuant to authorization of the Board ofof Directors.
On September 19, 2012,July 16, 2021, the Company’sCompany's Board of Directors authorizedapproved a share repurchase program authorizing the repurchase of shares of the Company’s common stock at such times and prices as management determined to be advisable, up to an aggregate purchase price of $3,000,000.$2,000,000. On March 14, 2022, the Board reviewed the program and approved a refreshed authorization again in the maximum amount of $2,000,000. The repurchases may be made from time to time on the open market at prevailing market prices, in negotiated transactions off the market, in block purchases or otherwise. The repurchase program may be suspended or discontinued at any time at the Company’s discretion and has no set expiration date.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
None.
Item 6. Exhibits
| |
| 101.INS 101.SCH
101.CAL
101.DEF
101.LAB
101.PRE
| Inline XBRL Instance Document |
| |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| |
104 | The cover page of this Quarterly Report on Form 10-Q, formatted in inline XBRL (including Exhibit 101). |
VALUE LINE, INC.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Value Line, Inc.
(Registrant)
| By: | /s/ /s/ Howard A. Brecher | |
| | Howard A. Brecher | |
| | Chief Executive Officer | |
| | | (Principal Executive Officer) | |
| | | | |
| | | | |
| | | | |
| | By: | /s/ Stephen R. Anastasio | |
| | | Stephen R. Anastasio | |
| | By: | /s/ Stephen R. AnastasioVice President & Treasurer | |
| | | Stephen R. Anastasio(Principal Financial Officer) | |
| | Vice President & Treasurer | |
| | (Principal Financial Officer) | |
Date: March 14, 201816, 2022
38
