Value Line, Inc., (NASDAQ: VALU) reported results for the second fiscal quarter ended October 31, 2013. 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.
During the second quarter ended October 31, 2013, the Company’s net income of $1,616,000, or $0.16 per share was $44,000 or 2.8% above net income of $1,572,000, or $0.16 per share, for the second quarter ended October 31, 2012. For the six months ended October 31, 2013, the Company’s net income of $3,061,000, or $0.31 per share was $287,000 or $0.03, respectively, below net income of $3,348,000, or $0.34 per share, for the six months ended October 31, 2012. Income from operations of $1,115,000 for the six months ended October 31, 2013 included additional depreciation and amortization expense of $229,000 and short term overlapping rent expense of $771,000 for the previously occupied office facilities during the lease extension that ended September 15, 2013. Income from operations for the six months ended October 31, 2012 was $2,272,000. Income before income taxes of $4,810,000 and $5,330,000 for the six months ended October 31, 2013 and October 31, 2012, respectively, is inclusive of the non-voting revenues and non-voting profits interests from EULAV Asset Management (“EAM”) of $3,623,000 and $3,002,000, and depreciation and amortization expense of $985,000 and $756,000, respectively.
Shareholders’ equity of $32,783,000 at October 31, 2013 compared favorably to shareholders’ equity of $32,690,000 at October 31, 2012. As of October 31, 2013, retained earnings were $32,422,000 and liquid assets were $11,861,000.
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 Dividend Select, 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 adviser 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 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:
- dependence on key personnel;
- maintaining revenue from subscriptions for the Company’s digital and print 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, 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;
- 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 security 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, 2013 and in Part II, Item 1A of the Quarterly Report on Form 10-Q for the period ended October 31, 2013; and
- other risks and uncertainties arising from time to time.