Value Line, Inc. Announces Second Quarter Earnings And Settlement Of Derivative Shareholder's Suit

Value Line, Inc., (NASDAQ: VALU) reported results for the second fiscal quarter ended October 31, 2011 and announces settlement of derivative shareholder's suit.

During the six months ended October 31, 2011, the Company’s net income of $3,991,000, or $0.40 per share, was $587,000 or 17.2% above net income of $3,404,000, or $0.34 per share, for the six months ended October 31, 2010. Net income for the second quarter of fiscal 2012 of $1,915,000, or $0.19 per share, was $828,000 or 76% above net income of $1,087,000, or $0.11 per share, for the second quarter of fiscal 2011. Income before income taxes was $6,102,000, which is inclusive of the non-voting revenues and profits interests of $2,915,000 from EULAV Asset Management (EAM) through October 31, 2011, as compared to $5,424,000 for the six months ended October 31, 2010, an increase of $678,000 or 13%. Income before income taxes for the six months ended October 31, 2010, includes $8,281,000 of revenues from advisory management fees and service distribution fees and $394,000 of income from operations from the former Value Line subsidiaries, EULAV Asset Management LLC and EULAV Securities, Inc., that performed the operations of the investment management business prior to deconsolidation of these subsidiaries on December 23, 2010.

Shareholders’ equity of $32,297,000 at October 31, 2011compared favorably to shareholders’ equity of $2,859,000 at October 31, 2010. Retained earnings were $31,662,000 and cash and short term liquid assets were $13,895,000 at October 31, 2011.

On December 7, 2011, the New York County Supreme Court approved the settlement agreement, related to the derivative shareholder's suit, which calls for the payment of settlement funds in an aggregate sum of $2.9 million, from sources other than by Value Line or any of its subsidiaries, for the benefit of the Company’s minority shareholders with a record date of December 7, 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 that include our acclaimed research in the areas of Mutual Funds, Options, Convertible securities and ETFs. Value Line’s acclaimed research also enables the Company to provide specialized products such as the Value Line Select, Special Situations, the newly introduced Value Line Dividend Select and copyrighted 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. 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, achieved compliance with the requirements of the order issued by the Securities and Exchange Commission (“SEC”) 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;
  • 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 and in Part II, Item 1A of this Quarterly Report on Form 10-Q for the period ended October 31, 2011; and
  • other risks and uncertainties arising from time to time.

Any forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
   

Value Line, Inc.

Consolidated Condensed Summary of Financial Results

(in thousands, except per share amounts)
                 
For the three months

ended October 31,
For the six months

ended October 31,
  2011       2010     2011       2010  
Revenues $9,140       $13,498 $18,510       $27,107
Income from operations $1,518 $1,790 $3,156 $5,336
Revenues and profits interests in EAM Trust

$1,343

$-

$2,915

$-
Income from securities transactions, net

$20

$51

$31

$88
Income before income taxes $2,881 $1,841 $6,102 $5,424
Net income $1,915 $1,087 $3,991 $3,404
Earnings per share, basic and fully diluted

$0.19

$0.11

$0.40

$0.34
 

Copyright Business Wire 2010

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