Value Line, Inc., (NASDAQ: VALU) reported results for the first fiscal quarter ended July 31, 2011.
The Company’s net income for the three months ended July 31, 2011, of $2,076,000, or $0.21 per share, was $241,000 or 10% below net income of $2,317,000, or $0.23 per share, for the three months ended July 31, 2010. Operating income of $1,638,000 for the first quarter of fiscal 2012 was $1,908,000 or 54% below operating income of $3,546,000 for the first quarter of fiscal 2011. Operating income for the three months ended July 31, 2011, does not include the non-voting revenues and profits interests from EAM of $1,572,000, while operating income for the first three months of fiscal 2011 includes $4,215,000 of operating revenues and $308,000 of operating profit from the former Value Line subsidiaries, that performed the operations of the investment management business prior to deconsolidation on December 23, 2010. Income before income taxes, which is inclusive of the non-voting revenues and profits interest from EAM through July 31, 2011, was $3,221,000 as compared to $3,583,000 for the three months ended July 31, 2010, a decrease of $362,000 or 10%.
Shareholders’ equity of $33,130,000 at July 31, 2011, was 52% higher than shareholders’ equity of $21,759,000 at July 31, 2010. Retained earnings were $31,727,000 and cash and short term liquid assets were $16,782,000 at July 31, 2011.
Value Line, Inc. is a leading New York based publishing company. Value Line believes The Value Line Investment Survey is one of the most widely read independent investment publications. Value Line also produces and publishes other proprietary investment periodicals in both print and electronic formats, including the newly introduced Value Line Dividend Select product supported by Value Line’s acclaimed research. Value Line has copyrighted data, which it distributes 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. Value Line’s products are available at www.valueline.com or by calling a representative at 1-800-VALUELINE.Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 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. 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:
- dependence on key personnel;
- maintaining revenue from subscriptions for the Company’s published products;
- protection of intellectual property rights;
- changes in market and economic conditions, including global financial issues;
- dependence on non-voting revenues and non-voting profits interests in EULAV Asset Management Trust, a Delaware business trust (“EAM”), which provides investment management and distribution, marketing and administrative services to the Value Line branded mutual funds;
- 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;
- competition in the fields of publishing, copyright data and investment management;
- the impact of government regulation on the Company’s and EAM’s business and the uncertainties of litigation and regulatory proceedings;
- availability of free or low cost investment data through discount brokers or generally over the internet;
- the risk that, while the Company believes that the restructuring transaction that closed on December 23, 2010, has achieved compliance with the requirements of the order issued by the Securities and Exchange Commission on November 4, 2009, the Company might be required to take additional steps which could adversely affect the Company’s results of operations or the Company’s financial condition;
- terrorist attacks and natural disasters; and
- 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, 2011 filed with the SEC on July 29, 2011, and other risks and uncertainties from time to time.
|Value Line, Inc.|
|Consolidated Condensed Summary of Financial Results|
|(in thousands, except per share amounts)|
|For the three months ended July 31,|
|Revenues and profits interests from EAM Trust||$1,572||-|
|Income from securities transactions, net||$11||$37|
|Income before income taxes||$3,221||$3,583|
|Earnings per share, basic and fully diluted||$0.21||$0.23|
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