Value Line, Inc., (NASDAQ: VALU) reported results for the third
fiscal quarter ended January 31, 2018.
During the nine months ended, 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 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 income tax rate under the Tax Cuts and Jobs
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. 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. 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.
Shareholders’ equity of $44,518,000 at January
31, 2018 increased $6,664,000 or 17.6% compared to shareholders’
equity of $37,854,000 at April 30, 2017. As of January 31,
2018, retained earnings and liquid assets were $45,288,000 and
$22,622,000, respectively. 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.
The Company’s quarterly report on Form 10-Q has
been filed with the SEC and is available on the Company’s website
at www.valueline.com/About/corporate_filings.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, Options and Convertible securities. 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: Dividend Income &
Growth, Value Line Select: ETFs
and copyright data, distributed
under copyright agreements for fees, including certain proprietary
ranking system information and other proprietary information used
in third party products. Investment Management services are
provided through its substantial non-controlling and 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
through 1-800-VALUELINE or 1-800-535-9648, while
institutional-level services for professional investors, advisers,
corporate, academic, municipal and legal libraries are offered at
www.ValueLinePro.com, www.ValueLineLibrary.com and at
1-800-531-1425.
Cautionary Statement Regarding
Forward-Looking Information
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 Value Line, Inc. (“Value Line” or
“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 market and economic conditions, including global
financial issues;
- protection of intellectual property rights;
- 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 assets under management due to broadly
based changes in the values of equity and debt securities,
redemptions by investors and other factors, and the effect these
changes may have on the valuation of EAM’s intangible assets;
- generating future revenues or collection of receivables from
significant customers;
- dependence on key personnel;
- competition in the fields of publishing, copyright data and
investment management;
- 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;
- terrorist attacks, cyber attacks and natural disasters;
- 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, 2017 and in
Part II, Item 1A of this Quarterly Report on Form 10-Q for the
period ended January 31, 2018; 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 to be disclosed in
periodic reports required to be filed by public companies with the
SEC pursuant to the SEC's rules, 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.
Contact:
Howard A. Brecher
Value Line, Inc.
(212) 907-1500
www.valueline.com
www.ValueLinePro.com, www.ValueLineLibrary.com
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