Value Line, Inc., (NASDAQ: VALU) reported results for the third
fiscal quarter ended January 31, 2019.
Income from operations of $1,413,000 during the
three months ended January 31, 2019 was 79.5% above income from
operations of $787,000 during the third quarter of fiscal
2018. Income from operations of $4,443,000 during the nine
months ended January 31, 2019 was 61.0% above income from
operations of $2,760,000 in the corresponding period of fiscal
2018. During the three and nine months ended January 31, 2019
operating expenses decreased $668,000 and $1,606,000, respectively,
below those during the three and nine months ended January 31,
2018. During the three months ended January 31, 2019, the
Company’s net income of $2,451,000, or $0.25 per share, was
$6,545,000 or 72.8% below net income of $8,996,000, or $0.93 per
share, for the three months ended January 31, 2018. During
the nine months ended January 31, 2019, the Company’s net income of
$8,857,000, or $0.91 per share, was $4,426,000 or 33.3% below net
income of $13,283,000, or $1.37 per share, for the nine months
ended January 31, 2018. The largest factor in the decrease in
net income during the three and nine months ended January 31, 2019
compared to the prior fiscal year was the January 1, 2018 reduction
in the U.S. statutory federal corporate income tax rate from 35% to
21% resulting in a one-time tax benefit of 65.87% of pre-tax income
for the three and nine months ended January 31, 2018, a reduction
that was not duplicated in the current fiscal year.
Shareholders’ equity of $46,891,000 at January
31, 2019, increased by $3,350,000 or 7.7% over shareholders’ equity
of $43,541,000 at April 30, 2018. As of January 31, 2019,
retained earnings of $48,238,000 increased by 7.4% above retained
earnings at April 30, 2018. Liquid assets of $23,633,000 at
January 31, 2019 were 0.6% below liquid assets at April 30,
2018. Copyright fees were up $579,000 or 12.2% during the
nine months ended January 31, 2019 as compared to the prior fiscal
year.
During the nine months ended January 31, 2019
there were 9,688,681 average common shares outstanding as compared
to 9,705,347 average common shares outstanding during the nine
months ended January 31, 2018. The reduction was the result
of buybacks by the Company under the repurchase program.
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 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: Dividend Income
& Growth, Value Line Select: ETFs 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 through 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 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 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, 2018; and in Part II, Item 1A of the
Quarterly Report on Form 10-Q for the period ended January 31,
2019; 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. BrecherValue Line,
Inc. (212)
907-1500
www.valueline.comwww.ValueLinePro.com,
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