valu20241031

valu20241031_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 31, 2024

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________________________________ to __________________________________

Commission File Number: 0-11306

VALUE LINE, INC.

(Exact name of registrant as specified in its charter)

New York	13-3139843
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

551 Fifth Avenue, New York, New York	10176-0001
(Address of principal executive offices)	(Zip Code)

(212) 907-1500

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of each Exchange on which registered
Common stock, $0.10 par value per share	VALU	The Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒

Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class	Outstanding at November 30, 2024
Common stock, $0.10 par value per share	9,417,674 shares

VALUE LINE, INC.

TABLE OF CONTENTS


		Page No.
	PART I. FINANCIAL INFORMATION

Item 1.	Consolidated Condensed Financial Statements

	Consolidated Condensed Balance Sheets as of October 31, 2024 and April 30, 2024	3

	Consolidated Condensed Statements of Income for the three and six months ended October 31, 2024 and October 31, 2023	4

	Consolidated Condensed Statements of Comprehensive Income for the three and six months ended October 31, 2024 and October 31, 2023	5

	Consolidated Condensed Statements of Cash Flows for the six months ended October 31, 2024 and October 31, 2023	6

	Consolidated Condensed Statement of Changes in Shareholders’ Equity for the three months ended July 31, 2024 and six months ended October 31, 2024	7
	Consolidated Condensed Statement of Changes in Shareholders’ Equity for the three months ended July 31, 2023 and six months ended October 31, 2023	8
	Notes to Consolidated Condensed Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34

Item 4.	Controls and Procedures	36

	PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	36

Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 3.	Defaults Upon Senior Securities	37
Item 4.	Mine Safety Disclosures	37
Item 5.	Other Information	37
Item 6.	Exhibits	38
	Signatures	39

Part I - Financial Information

Item 1. Financial Statements

Value Line, Inc.

Consolidated Condensed Balance Sheets

(in thousands, except share amounts)

	October 31,			April 30,
	2024			2024
	(unaudited)
Assets
Current Assets:
Cash and cash equivalents (including short term investments of $10,985 and $4,136, respectively)	$	11,293		$	4,390
Equity securities		21,837		$	16,344
Available-for-sale Fixed Income securities		38,915			47,611
Accounts receivable, net of allowance for credit losses of $22 and $31, respectively		1,259			1,310
Prepaid and refundable income taxes		599			209
Prepaid expenses and other current assets		955			1,160
Total current assets		74,858			71,024

Long term assets:
Investment in EAM Trust		60,786			60,134
Restricted money market investments		305			305
Property and equipment, net		3,940			4,440
Capitalized software and other intangible assets, net		103			132
Total long term assets		65,134			65,011

Total assets	$	139,992		$	136,035

Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable and accrued liabilities	$	952		$	1,430
Accrued salaries		989			1,020
Dividends payable		2,826			2,827
Accrued taxes on income		44			7
Operating lease obligation-short term		1,230			1,206
Unearned revenue		15,856			15,764
Total current liabilities		21,897			22,254

Long term liabilities:
Unearned revenue		5,010			6,517
Operating lease obligation-long term		2,966			3,578
Deferred income taxes		13,404			12,893
Total long term liabilities		21,380			22,988
Total liabilities		43,277			45,242

Shareholders' Equity:
Common stock, $0.10 par value; authorized 30,000,000 shares; issued 10,000,000 shares		1,000			1,000
Additional paid-in capital		991			991
Retained earnings		110,170			104,249
Treasury stock, at cost (581,926 shares and 577,517 shares, respectively)		(15,372	)		(15,194	)
Accumulated other comprehensive income, net of tax		(74	)		(253	)
Total shareholders' equity		96,715			90,793

Total liabilities and shareholders' equity	$	139,992		$	136,035

The accompanying notes are an integral part of these consolidated condensed financial statements.

Part I - Financial Information

Item 1. Financial Statements

Value Line, Inc.

Consolidated Condensed Statements of Income

(in thousands, except share & per share amounts)

(unaudited)

	For the Three Months Ended					For the Six Months Ended
	October 31,					October 31,
	2024		2023			2024		2023

Revenues:
Investment periodicals and related publications	$	6,182	$	6,398		$	12,469	$	12,855
Copyright fees		2,659		3,212			5,256		6,498
Total publishing revenues		8,841		9,610			17,725		19,353

Expenses:
Advertising and promotion		862		585			1,722		1,357
Salaries and employee benefits		3,575		3,697			7,118		7,437
Production and distribution		1,449		1,480			2,938		2,875
Office and administration		1,211		1,174			2,356		2,263
Total expenses		7,097		6,936			14,134		13,932
Income from operations		1,744		2,674			3,591		5,421

Revenues and profits interests in EAM Trust		4,630		2,995			8,871		5,852
Investment gains/(losses)		1,186		(1,079	)		2,895		(324	)
Income before income taxes		7,560		4,590			15,357		10,949
Income tax provision		1,875		1,102			3,785		2,602
Net income	$	5,685	$	3,488		$	11,572	$	8,347

Earnings per share, basic & fully diluted	$	0.60	$	0.37		$	1.23	$	0.89


Weighted average number of common shares		9,418,074		9,429,169			9,419,006		9,430,871

The accompanying notes are an integral part of these consolidated condensed financial statements.

Part I - Financial Information

Item 1. Financial Statements

Value Line, Inc.

Consolidated Condensed Statements of Comprehensive Income

(in thousands)

(unaudited)

	For the Three Months Ended				For the Six Months Ended
	October 31,				October 31,
	2024		2023		2024		2023


Net income	$	5,685	$	3,488	$	11,572	$	8,347

Other comprehensive income/(loss), net of tax:

SEC Form 10-Q filed by Value Line Inc.