Value Line, Inc., (NASDAQ: VALU) reported results through the
second fiscal quarter ended October 31, 2022 and fiscal first half
ended the same date.
During the six months (May 2022 through October
2022), the Company’s income from operations of $5,727,000 was 14.5%
above income from operations of $5,002,000 during the six months
ended October 31, 2021. For the six months ended October 31, 2022,
operating expenses decreased 5.6% below those during the six months
ended October 31, 2021. During the six months ended October 31,
2022, the Company’s net income of $8,786,000, or $0.93 per share,
was 39.0% below net income of $14,401,000, or $1.51 per share, for
the six months ended October 31, 2021 primarily because last fiscal
year’s second quarter and year to date results included a gain of
$2,331,000 from the tax-free forgiveness of the SBA’s PPP loan to
the Company, a decline of $2,076,000 for the three months and
$3,866,000 for the six months in passive income from the Company’s
investment in EAM Trust and the change in unrealized investment
gains/(losses) primarily from equity securities.
During the three months (August 2022 through
October 2022), the Company’s income from operations of $3,171,000
was 15.9% above income from operations of $2,737,000 during the
three months ended October 31, 2021. For the three months ended
October 31, 2022, operating expenses decreased 4.7% below those
during the three months ended October 31, 2021. During the three
months ended October 31, 2022, the Company’s net income of
$4,328,000, or $0.46 per share, was 49.1% below net income of
$8,504,000, or $0.89 per share, for the three months ended October
31, 2021 as a result of the factors mentioned above in the six
month results.
Retained earnings at October 31, 2022, were
$91,700,000, representing an increase of 4.6% over retained
earnings at April 30, 2022. The Company’s liquid assets at October
31, 2022, were $57,744,000, a slight decrease from liquid assets at
April 30, 2022. Shareholders’ equity reached $80,220,000 at October
31, 2022, an increase of almost 1% from the shareholders’ equity of
$79,645,000 at April 30, 2022 and reflected $3,482,000 of
repurchases of the company’s shares.
During the six months ended October 31, 2022,
there were 9,475,955 average common shares outstanding as compared
to 9,557,333 average common shares outstanding during the six
months ended October 31, 2021, also reflecting the Company’s
repurchases of shares.
The Company’s quarterly report on Form 10-Q has been filed with
the SEC and is available on the Company’s website at
https://www.valueline.com/About/InvestorRelation.aspx. Shareholders
may receive a printed copy, free of charge upon request.
Value Line, Inc. is a leading New York based
provider of investment research. The Value Line Investment
Survey is one of the most widely used sources of
independent equity investment research. Value Line also publishes a
range of proprietary investment research in both print and digital
formats including research in the areas of Mutual Funds, ETFs and
Options. Value Line’s acclaimed research also enables the Company
to provide specialized products such as Value Line Select,
Value Line Special Situations, Value Line Select: ETFs, Value Line
Select: Dividend Income & Growth, The New Value Line ETFs
Service, The Value Line M & A Service, The Value Line
Information You Should Know Wealth Newsletter, Value Line Climate
Change Investing Service and certain Value Line
copyrights, distributed under agreements including certain
proprietary ranking system information and other proprietary
information used in third party products. Investment Advisory
services are provided through its substantial non-voting interests
in EULAV Asset Management, the investment advisor to The Value Line
Family of Mutual Funds. Value Line’s products are available to
individual investors by mail, at www.valueline.com or by calling
1-800-VALUELINE or 1-800-825-8354, while institutional-level
services for professional investors, advisers, corporate, academic,
and municipal libraries are offered at www.ValueLinePro.com,
www.ValueLineLibrary.com and by calling 1-800-531-1425.
Cautionary Statement Regarding Forward-Looking
Information
In this report, “Value Line,” “we,” “us,” “our”
refers to Value Line, Inc. and “the Company” refers to Value Line
and its subsidiaries unless the context otherwise requires.
This report contains statements that are
predictive in nature, depend upon or refer to future events or
conditions (including certain projections and business trends)
accompanied by such phrases as “believe”, “estimate”, “expect”,
“anticipate”, “will”, “intend” and other similar or negative
expressions, that are “forward-looking statements” as defined in
the Private Securities Litigation Reform Act of 1995, as amended.
Actual results for the Company may differ materially from those
projected as a result of certain risks and uncertainties, including
but not limited to the following:
- maintaining revenue from
subscriptions for the Company’s digital and print published
products;
- changes in investment trends and
economic conditions, including global financial issues;
- protecting intellectual property
rights in Company methods and trademarks;
- protecting confidential information
including customer confidential or personal information that we may
possess;
- dependence on non-voting revenues
and non-voting profits interests in EULAV Asset Management, a
Delaware statutory trust (“EAM” or “EAM Trust”), which serves as
the investment advisor to the Value Line Funds and engages in
related distribution, marketing and administrative services;
- fluctuations in EAM’s and third
party copyright assets under management due to broadly based
changes in the values of equity and debt securities, redemptions by
investors and other factors;
- possible changes in the valuation
of EAM’s intangible assets from time to time;
- generating future revenues or
collection of receivables from significant customers;
- dependence on key executive and
specialist personnel;
- risks associated with the
outsourcing of certain functions, technical facilities, and
operations, including in some instances outside the U.S.;
- competition in the fields of
publishing, copyright and investment management, along with
associated effects on the level and structure of prices and fees,
and the mix of services delivered;
- the impact of government regulation
on the Company’s and EAM’s businesses;
- availability of free or low cost
investment data through discount brokers or generally over the
internet;
- military conflicts, civil unrest,
and associated travel and supply disruptions and other
effects;
- Russia’s
invasion of Ukraine and the impact on inflation;
- continued
availability of generally dependable energy supplies in the
geographic areas in which the company and certain suppliers
operate;
- terrorist
attacks, cyber attacks and natural disasters;
- insufficiency
in our business continuity plans or systems in the event of
anticipated or unpredictable disruption;
- the coronavirus
pandemic, which has drastically affected markets, employment, and
other economic conditions, and may have additional unpredictable
impacts on employees, suppliers, customers, and operations;
- other possible
epidemics;
- changes in prices
and availability of materials and other inputs and services, such
as freight and postage, required by the Company;
- other risks and
uncertainties, including but not limited to the risks described in
Item 1A, “Risk Factors” of the Company’s Annual Report on Form 10-K
for the year ended April 30, 2022 and in Part II, Item 1A of this
Quarterly Report on Form 10-Q for the period ended October 31,
2022; and other risks and uncertainties arising from time to
time.
These factors are not necessarily all of the
important factors that could cause actual results to differ
materially from those expressed in any of our forward-looking
statements. Other unknown or unpredictable factors which may
involve external factors over which we may have no control or
changes in our plans, strategies, objectives, expectations or
intentions, which may happen at any time at our discretion, could
also have material adverse effects on future results. Except as
otherwise required by applicable law, we have no duty to update
these statements, and we undertake no obligation to publicly update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise. In light of these
risks and uncertainties, current plans, anticipated actions, and
future financial conditions and results may differ from those
expressed in any forward-looking information contained herein.
www.valueline.comwww.ValueLinePro.com,
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Howard A. Brecher
Value Line, Inc.
212-907-1500
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