# Value Line Inc: Form 10-Q for the period ended Jan 31, 2025

- Company: [Value Line Inc](/companies/valu.md) (CIK 717720)
- Form: 10-Q
- Filed: 2025-03-14
- Accepted by EDGAR: Mar 14, 2025, 21:25 ET
- Period: 2025-01-31
- Accession: 0001437749-25-007788
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/717720/000143774925007788/valu20250131_10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/717720/000143774925007788/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-01-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2024-11-01 to 2025-01-31 | $9.0m | us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax |
| Revenue | 9 months, 2024-05-01 to 2025-01-31 | $26.7m | us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax |
| Operating income | 3 months, 2024-11-01 to 2025-01-31 | $1.6m | us-gaap:OperatingIncomeLoss |
| Operating income | 9 months, 2024-05-01 to 2025-01-31 | $5.2m | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months, 2024-11-01 to 2025-01-31 | $2.0m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months, 2024-05-01 to 2025-01-31 | $5.8m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2024-11-01 to 2025-01-31 | $5.2m | us-gaap:NetIncomeLoss |
| Net income | 9 months, 2024-05-01 to 2025-01-31 | $16.7m | us-gaap:NetIncomeLoss |
| Basic EPS | 3 months, 2024-11-01 to 2025-01-31 | $0.55 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 9 months, 2024-05-01 to 2025-01-31 | $1.78 | us-gaap:EarningsPerShareBasic |
| Operating cash flow | 9 months, 2024-05-01 to 2025-01-31 | $14.7m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 9 months, 2024-05-01 to 2025-01-31 | $174.0k | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 9 months, 2024-05-01 to 2025-01-31 | $8.5m | us-gaap:PaymentsOfDividendsCommonStock |
| Share repurchases | 9 months, 2024-05-01 to 2025-01-31 | $274.0k | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2025-01-31 | $26.8m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-01-31 | $78.3m | us-gaap:AssetsCurrent |
| Total assets | at 2025-01-31 | $143.6m | us-gaap:Assets |
| Current liabilities | at 2025-01-31 | $22.8m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-01-31 | $44.6m | us-gaap:Liabilities |
| Shareholders' equity | at 2025-01-31 | $99.0m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 38,353 characters.

### Cautionary Statement Regarding Forward-Looking Information

In this report, “Value Line,” “we,” “us,” “our” refers to Value Line, Inc. and “the Company” refers to Value Line and its subsidiaries unless the context otherwise requires.

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 investment trends and economic conditions, including global financial issues;
- changes in Federal Reserve policies affecting interest rates and liquidity along with resulting effects on equity markets;
- stability of the banking system, including the success of U.S. government policies and actions in regard to banks with liquidity or capital issues, along with the associated impact on equity markets;
- continuation of orderly markets for equities and corporate and governmental debt securities;
- problems protecting intellectual property rights in Company methods and trademarks;
- protecting confidential information including customer confidential or personal information that we may possess;
- 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 and third party copyright assets under management due to broadly based changes in the values of equity and debt securities, market sector variations, redemptions by investors and other factors;
- possible changes in the valuation of EAM’s intangible assets from time to time;
- possible changes in future revenues or collection of receivables from significant customers;
- dependence on key executive and specialist personnel;
- risks associated with the outsourcing of certain functions, technical facilities, and operations, including in some instances outside the U.S.;
- risks of potential tariffs and other restrictions affecting the cost and availability of materials, equipment, and other necessary inputs to the Company’s operations;
- competition in the fields of publishing, copyright and investment management, along with associated effects on the level and structure of prices and fees, and the mix of services delivered;
- the impact of government regulation on the Company’s and EAM’s businesses;
- federal and/or state legislative changes that might affect Value Line’s business;
- the availability of free or low cost investment information through discount brokers or generally over the internet;
- the economic and other impacts of global political and military conflicts;
- continued availability of generally dependable energy supplies and transportation facilities in the geographic areas in which the company and certain suppliers operate;
- terrorist attacks, cyber attacks and natural disasters;
- the need for changes in our business plans because of unexpected events that occur;
- widespread illnesses which may drastically affect markets, employment, and other economic conditions, and may have additional unpredictable impacts on employees, suppliers, customers, and operations;
- changes in prices and availability of materials and other inputs and services, such as freight and postage, required by the Company;
- other risks and uncertainties, including but not limited to the risks described in Part I, Item 1A, “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended April 30, 2024 and in Part II, Item 1A of the Quarterly Report on Form 10-Q for the period ended January 31, 2025; and other risks and uncertainties arising from time to time.

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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 could also have material adverse effects on future results. Likewise, changes we make in our plans, objectives, strategies, or intentions, which may occur at any time in our discretion, could also have material favorable or adverse effects on our 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.

### Executive Summary of the Business

The Company's core business is producing investment periodicals and their underlying research and making available certain Value Line copyrights, Value Line trademarks and Value Line Proprietary Ranks and other proprietary information, to third parties under written agreements for use in third-party managed and marketed investment products and for other purposes. Value Line markets under well-known brands including *Value Line®, the Value Line* logo®, *The Value Line Investment Survey®, Smart Research, Smarter Investing™* and *The Most Trusted Name in Investment Research®.* The name "Value Line" as used to describe the Company, its products, and its subsidiaries, is a registered trademark of the Company. EULAV Asset Management Trust (“EAM”) was established to provide the investment management services to the Value Line Funds, institutional and individual accounts and provide distribution, marketing, and administrative services to the Value Line® Mutual Funds ("Value Line Funds"). The Company maintains a significant investment in EAM from which it receives payments in respect of its non-voting revenues and non-voting profits interests.

The Company’s target audiences within the investment research field are individual investors, colleges, libraries, and investment management professionals. Individuals come to Value Line for complete research in one package. Institutional licensees consist of corporations, financial professionals, colleges, and municipal libraries. Libraries and universities offer the Company’s detailed research to their patrons and students. Investment management professionals use the research and historical information in their day-to-day businesses. The Company has a dedicated department that solicits institutional subscriptions.

Payments received for new and renewal subscriptions and the value of receivables for amounts billed to retail and institutional customers are recorded as unearned revenue until the order is fulfilled. As the orders are fulfilled, the Company recognizes revenue in equal installments over the life of the particular subscription. Accordingly, the subscription fees to be earned by fulfilling subscriptions after the date of a particular balance sheet are shown on that balance sheet as unearned revenue within current and long-term liabilities.

The investment periodicals and related publications (retail and institutional) and Value Line copyrights and Value Line Proprietary Ranks and other proprietary information consolidate into one segment called Publishing. The Publishing segment constitutes the Company’s only reportable business segment.

### Asset Management and Mutual Fund Distribution Businesses

Pursuant to the EAM Declaration of Trust, the Company maintains an interest in certain revenues of EAM and a portion of the residual profits of EAM but has no voting authority with respect to the election or removal of the trustees of EAM or control of its business.

The business of EAM is managed by its trustees each owning 20% of the voting interest in EAM and by its officers subject to the direction of the trustees. The Company’s non-voting revenues and non-voting profits interests in EAM entitle it to receive a range of 41% to 55% of EAM’s revenues (excluding distribution revenues) from EAM’s mutual fund and separate account business and 50% of the residual profits of EAM (subject to temporary increase in certain limited circumstances). The Voting Profits Interest Holders will receive the other 50% of residual profits of EAM. Distribution is not less than 90% of EAM’s profits payable each fiscal quarter under the provisions of the EAM Trust Agreement.

### Business Environment

The U.S. economy performed well in 2024. The nation’s gross domestic product (GDP) expanded by an estimated 2.8% during the 12-month period and nearly matched the 2.9% gain recorded in 2023. The advance was powered by the consumer sector, which was helped by a solid job market and a continued low unemployment rate of around 4.0%. In all, personal consumption expenditures rose by a healthy 2.8%, with the biggest gain in consumer spending (+4.2%) coming during the final three months of last year.

However, as the calendar turned to 2025, there were some signs of fatigue in the consumer sector, as inflation reaccelerated during the late fall/early winter months. Both the University of Michigan’s Consumer Sentiment Index and The Conference Board’s Consumer Confidence Survey declined notably in February, with each citing consumer concerns about stubbornly high prices for both goods and services. Not surprisingly, given this weakening sentiment, retail sales fell 0.9%in January and consumer spending dropped 0.2%, with the latter figure marking the first decline in nearly two years. Higher borrowing costs also are hurting the housing market, with both new and existing home sales falling sharply during the first month of this year.

With inflation still running above the Federal Reserve’s comfort level of 2.0%, the consensus forecast is that the central bank will hold off on cutting the federal funds rate again until the second half of this year. The lead bank’s decision to reduce the benchmark short-term rate by a full-percentage point last fall did not have the desired result, as the yield on the 10-year Treasury note, which is used as a barometer for setting longer-term lending rates, increased sharply during the same stretch. Reports indicating a reacceleration in the pace of price growth at both the consumer and producer (wholesale) levels and fears about near-term fiscal policy changes were the primary reasons for the late-2024 spike in Treasury yields.

Meanwhile, the Trump Administration has promised a pro-growth agenda, highlighted by lower taxes and a rollback in regulations, with the hope that these policies will further stimulate economic growth stateside. The new fiscal policy measures coming from the White House have included a series of tariff announcements. The first round of levies were placed on selective goods coming from Canada and Mexico, as well as shipments from China. President Trump also announced a series of reciprocal tariffs against trading partners around the world, which are currently set to take place on April 1st. There is a fear that the duties will put additional upward pressure on near-term prices for goods and services. The tariff situation, though, remains quite fluid.

In all, the business environment held up very well during calendar 2024, with profit growth for S&P 500 companies averaging around 18% in the fourth quarter. Moving forward, the S&P 500 companies may have a harder time sustaining this pace of earnings growth, with the Federal Reserve not planning to loosen monetary policy until it gets a better sense of what impact the potential changes in fiscal policies will have on price stability and the labor market.

### Results of Operations for the Three and Nine Months Ended January 31, 2025 and 2024

The following table illustrates the Company’s key components of revenues and expenses.

*($ in thousands, except earnings per share)*

|  | Three Months Ended January 31, 2025 | 2024 | Change | Nine Months Ended January 31, 2025 | 2024 | Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Income from operations | $1,564 | $2,232 | -29.9% | $5,155 | $7,653 | -32.6% |
| Non-voting revenues and non-voting profits interests from EAM Trust | 4,910 | 3,489 | 40.7% | 13,781 | 9,341 | 47.5% |
| Income from operations plus non-voting revenues and non-voting profits interests from EAM Trust | $6,474 | $5,721 | 13.2% | $18,936 | $16,994 | 11.4% |
| Operating expenses | $7,403 | $6,899 | 7.3% | $21,537 | $20,831 | 3.4% |
| Investment gains/(losses) | $662 | $2,009 | 209.9% | $3,557 | $1,685 | 993.5% |
| Income before income taxes | $7,136 | $7,730 | -7.7% | $22,493 | $18,679 | 20.4% |
| Net income | $5,163 | $5,885 | -12.3% | $16,735 | $14,232 | 17.6% |
| Earnings per share | $0.55 | $0.62 | -12.2% | $1.78 | $1.51 | 17.7% |

During the nine months ended January 31, 2025, the Company’s net income of $16,735,000, or $1.78 per share, was 17.6% above net income of $14,232,000, or $1.51 per share, for the nine months ended January 31, 2024. During the nine months ended January 31, 2025, the Company’s income from operations of $5,155,000 was 32.6% below income from operations of $7,653,000 during the nine months ended January 31, 2024. For the nine months ended January 31, 2025, operating expenses increased 3.4% above those during the nine months ended January 31, 2024.

During the three months ended January 31, 2025, the Company’s net income of $5,163,000, or $0.55 per share, was 12.3% below net income of $5,885,000, or $0.62 per share, for the three months ended January 31, 2024. During the three months ended January 31, 2025, the Company’s income from operations of $1,564,000 was 29.9% below income from operations of $2,232,000 during the three months ended January 31, 2024. For the three months ended January 31, 2025, operating expenses increased 7.3% above those during the three months ended January 31, 2024.

During the nine months ended January 31, 2025, there were 9,418,527 average common shares outstanding as compared to 9,429,575 average common shares outstanding during the nine months ended January 31, 2024.

#### Total operating revenues

*($ in thousands)*

| Investment periodicals and related publications: | Three Months Ended January 31, 2025 | 2024 | Change | Nine Months Ended January 31, 2025 | 2024 | Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Print | $2,336 | $2,278 | 2.5% | $6,750 | $6,987 | -3.4% |
| Digital | 3,977 | 4,041 | -1.6% | 12,032 | 12,187 | -1.3% |
| Total investment periodicals and related publications | 6,313 | 6,319 | -0.1% | 18,782 | 19,174 | -2.0% |
| Copyright fees | 2,654 | 2,812 | -5.6% | 7,910 | 9,310 | -15.0% |
| Total publishing revenues | $8,967 | $9,131 | -1.8% | $26,692 | $28,484 | -6.3% |

Within investment periodicals and related publications, subscription sales orders are derived from print and digital products. The following chart illustrates the changes in the sales orders associated with print and digital subscriptions.

#### Sources of subscription sales

|  | Three Months Ended January 31, 2025 Print | Digital | 2024 Print | Digital | Nine Months Ended January 31, 2025 Print | Digital | 2024 Print | Digital |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| New Sales | 13.4% | 8.7% | 12.7% | 9.8% | 14.8% | 8.7% | 12.4% | 10.4% |
| Renewal & Conversion Sales | 86.6% | 91.3% | 87.3% | 90.2% | 85.2% | 91.3% | 87.6% | 89.6% |
| Total Gross Sales | 100.0% | 100.0% | 100.0% | 100.0% | 100% | 100% | 100% | 100% |

During the nine months ended January 31, 2025, new sales of print publications increased as a percent of the total gross sales as a result of an increase in new sales orders while conversion and renewal sales orders decreased from the prior fiscal year.

*($ in thousands)*

|  | As of January 31, 2025 | As of April 30, 2024 | As of January 31, 2024 | Change January-25 vs. Apr-24 | January-25 vs. January-24 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Unearned subscription revenue (current and long-term liabilities) | $21,942 | $22,281 | $22,497 | -1.5% | -2.5% |

Unearned subscription revenue as of January 31, 2025, is 1.5% below April 30, 2024 and 2.5% below January 31, 2024. A certain amount of variation is to be expected due to the volume of new orders and timing of long-term renewal contracts, direct mail campaigns and large Institutional Sales orders.

#### Investment periodicals and related publications revenues

Investment periodicals and related publications revenues of $18,782,000 (excluding copyright fees) during the nine months ended January 31, 2025, which included an extra week of servings for the weekly print products were 2.0% below publications revenues of $19,174,000 in the prior fiscal year. The Company continued actions to attract new subscribers through various marketing channels, primarily direct mail, e-mail, and by the efforts of our sales personnel. As fewer individual investors manage their own portfolios, particularly in volatile markets, total product line circulation at January 31, 2025, was 2.8% below total product line circulation at January 31, 2024.

Circulation also reflected management’s decision to reduce marketing efforts temporarily while the challenging stock market environment persisted during the fiscal year ended April 30, 2024. Total print circulation at January 31, 2025 was 3.2% below the total print circulation at January 31, 2024. During the nine months ended January 31, 2025, print publication revenues of $6,750,000 decreased 3.4%, below print publication revenues of $6,987,000 during the corresponding period of 2024 because we deferred advertising in light of negative sentiment among prospective individual customers in a challenging market environment. Total digital circulation at January 31, 2025 was 2.3% below total digital circulation at January 31, 2024. During the nine months ended January 31, 2025, digital revenues of $12,032,000 was 1.3% below last fiscal year. These figures reflect weak investor sentiment, likely temporary, and the ongoing shift from our print services to digital counterparts. Sales of our higher-price, higher-profit, publications have been stronger than sales of lower price “starter” products.

Value Line serves primarily individual and professional investors in stocks, and other securities, who pay mostly on annual or multi-year subscription plans, for basic services or as much as $100,000 or more annually for comprehensive premium quality research, not obtainable elsewhere.

The Value Line Proprietary Ranks (the “Ranking System”), a component of the Company’s flagship product, *The Value Line Investment Survey*, are also utilized in the Company’s copyright business. The Ranking System is made available to EAM for specific uses without charge. During the twelve month period ended January 31, 2025, the combined Ranking System “Rank 1 & 2” stocks’ increase of 23.2% compared to the Russell 2000 Index’s increase of 17.5% during the comparable period.

#### Copyright fees

During the nine months ended January 31, 2025, copyright fees of $7,910,000 were 15.0% below those during the corresponding period in the prior fiscal year. These fees depend on the assets under management in financial products with contractual arrangements to use the Ranks and other Value Line proprietary information.

#### Investment management fees and services – (unconsolidated)

The Company has substantial non-voting revenues and non-voting profits interests in EAM, the asset manager to the Value Line Mutual Funds. Accordingly, the Company does not report this operation as a separate business segment, although it maintains a significant interest in the cash flows generated by this business and will receive ongoing payments in respect of its non-voting revenues and non-voting profits interests.

Total assets in the Value Line Funds managed and/or distributed by EAM at January 31, 2025, were $4.97 billion, which is $0.91 billion, or 22.6%, above total assets of $4.06 billion in the Value Line Funds managed and/or distributed by EAM at January 31, 2024.

#### Value Line Mutual Funds

*($ in millions)*

|  | As of January 31, 2025 | 2024 | Change |
| --- | ---: | ---: | ---: |
| Equity and hybrid funds | $4,937 | $4,019 | 22.9% |
| Fixed income funds | 35 | 37 | -5.3% |
| Total EAM managed net assets | $4,972 | $4,056 | 22.6% |

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#### EAM Trust - Results of operations before distribution to interest holders

The gross fees and net income of EAM’s investment management operations during the nine months ended January 31, 2025, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $23,724,000, 12b-1 fees and other fees of $6,032,000 and other net gains of $456,000. For the same period, total investment management fee waivers were $131,000 and 12b-1 fee waivers were $69,000. During the nine months ended January 31, 2025, EAM's net income was $3,384,000 after giving effect to Value Line’s non-voting revenues interest of $12,089,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.

The gross fees and net income of EAM’s investment management operations during the nine months ended January 31, 2024, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $17,388,000, 12b-1 fees and other fees of 4,811,000 and other net gains of $295,000. For the same period, total investment management fee waivers were $260,000 and 12b-1 fee waivers were $72,000. During the nine months ended January 31, 2024, EAM's net income was $1,842,000 after giving effect to Value Line’s non-voting revenues interest of $8,420,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.

As of January 31, 2025, one of the Value Line Funds has 12b-1 fees waivers in place, and five funds have partial investment management fee waivers in place. Although, under the terms of the EAM Declaration of Trust, the Company does not receive or share in the revenues from 12b-1 distribution fees, the Company could benefit from the fee waivers to the extent that the resulting reduction of expense ratios and enhancement of the performance of the Value Line Funds attracts new assets.

The Value Line equity and hybrid funds’ assets represent 99.3% and fixed income fund assets represent 0.7%, respectively, of total fund assets under management (“AUM”) as of January 31, 2025. At January 31, 2025, equity and hybrid AUM increased by 22.9% and fixed income AUM decreased by 5.3% as compared to last year at January 31, 2024.

#### EAM - The Company’s non-voting revenues and non-voting profits interests

The Company holds non-voting revenues and non-voting profits interests in EAM which entitle the Company to receive from EAM an amount ranging from 41% to 55% of EAM's investment management fee revenues from its mutual fund and separate accounts business, and 50% of EAM’s net profits, not less than 90% of which is distributed in cash every fiscal quarter.

The Company recorded income from its non-voting revenues interest and its non-voting profits interest in EAM as follows:

*($ in thousands)*

|  | Three Months Ended January 31, 2025 | 2024 | Change | Nine Months Ended January 31, 2025 | 2024 | Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Non-voting revenues interest | $4,363 | $3,083 | 41.5% | $12,089 | $8,420 | 43.6% |
| Non-voting profits interest | 547 | 406 | 34.7% | 1,692 | 921 | 83.7% |
|  | $4,910 | $3,489 | 40.7% | $13,781 | $9,341 | 47.5% |

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### Operating expenses

*($ in thousands)*

|  | Three Months Ended January 31, 2025 | 2024 | Change | Nine Months Ended January 31, 2025 | 2024 | Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Advertising and promotion | $976 | $782 | 24.8% | $2,698 | $2,139 | 26.1% |
| Salaries and employee benefits | 3,623 | 3,719 | -2.6% | 10,741 | 11,156 | -3.7% |
| Production and distribution | 1,457 | 1,219 | 19.5% | 4,395 | 4,094 | 7.4% |
| Office and administration | 1,347 | 1,179 | 14.2% | 3,703 | 3,442 | 7.6% |
| Total expenses | $7,403 | $6,899 | 7.3% | $21,537 | $20,831 | 3.4% |

Expenses within the Company are categorized into advertising and promotion, salaries and employee benefits, production and distribution, office and administration. Operating expenses of $21,537,000 during the nine months ended January 31, 2025, were 3.4% above those during the nine months ended January 31, 2024.

#### Advertising and promotion

During nine months ended January 31, 2025, advertising and promotion expenses of $2,698,000 increased 26.1% as compared to the prior fiscal year. During the nine months ended January 31, 2025, increases were primarily due to increases in direct mail and third-party telemarketing & sales consulting.

#### Salaries and employee benefits

During the nine months ended January 31, 2025, salaries and employee benefits of $10,741,000 decreased 3.7% below the prior fiscal year, primarily due to decreases in salaries and employee benefits resulting from reduced employee headcount and the outsourcing of the Company’s distribution operation to a domestic contractor during fiscal years 2024 and 2025.

#### Production and distribution

During the nine months ended January 31, 2025, production and distribution expenses of $4,395,000 increased 7.4% above prior fiscal year primarily due to increases in third-party distribution and mailing expenses that resulted from outsourcing our internal distribution operations in early May 2024, while ending our internal VLDC operation at April 30, 2024.

#### Office and administration

During the nine months ended January 31, 2025, office and administrative expenses of $3,703,000 increased 7.6% above the prior fiscal year, due to an increase that resulted from software upgrade and modernization project to replace outdated software, and the costs of product billing and other outsourced fulfillment functions, replacing an in-house group based at VLDC previously handled internally by employees.

#### Concentration

During the nine months ended January 31, 2025, 29.6% of total publishing revenues of $26,692,000 were derived from a single customer.

#### Investment gains / (losses)

*($ in thousands)*

|  | Three Months Ended January 31, 2025 | 2024 | Change | Nine Months Ended January 31, 2025 | 2024 | Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Dividend income | $216 | $153 | 41.2% | $544 | $431 | 26.2% |
| Interest income | 474 | 511 | -7.2% | 1,518 | 1,387 | 9.4% |
| Investment gains/(losses) recognized on sale of equity securities during the period | 12 | 2 | 500.0% | (113) | (1) | -11200.0% |
| Unrealized gains/(losses) recognized on equity securities held at the end of the period | (40) | 1,343 | -103.0% | 1,608 | (132) | 1,318.2% |
| Total investment gains/(losses) | $662 | $2,009 | -67.0% | $3,557 | $1,685 | 111.1% |

During the nine months ended January 31, 2025, the Company’s total investment gains of 3,557,000 increased 111.1% above prior fiscal year, primarily derived from unrealized gains on equity securities and increases in the interest income. Proceeds from the sales of equity securities during the nine months ended January 31, 2025 and January 31, 2024 were $3,173,000 and $1,129,000, respectively.

#### Effective income tax rate

The overall effective income tax rates, as a percentage of pre-tax ordinary income for the nine months ended January 31, 2025 and January 31, 2024 were 25.60% and 23.80%, respectively. The higher effective tax rate during nine months ended January 31, 2025 as compared to January 31, 2024, is primarily a result of an increase in the state and local income taxes from 3.04% to 4.85% due to changes in state and local income tax allocations. The Company's annualized overall effective tax rate fluctuates due to a number of factors, in addition to changes in tax law, including but not limited to an increase or decrease in the ratio of items that do not have tax consequences to pre-tax income, the Company's geographic profit mix among tax jurisdictions, taxation method adopted by each locality, new interpretations of existing tax laws and rulings and settlements with tax authorities.

#### Lease Commitments

On November 30, 2016, Value Line, Inc., received consent from the landlord at 551 Fifth Avenue, New York, NY to the terms of a new sublease agreement between Value Line, Inc. and ABM Industries, Incorporated (“ABM” or the “Sublandlord”) commencing on December 1, 2016. Pursuant to the agreement Value Line leased from ABM 24,726 square feet of office space located on the second and third floors at 551 Fifth Avenue, New York, NY (“Building” or “Premises”) beginning on December 1, 2016 and ending on November 29, 2027. Base rent under the sublease agreement is $1,126,000 per annum during the first year with an annual increase in base rent of 2.25% scheduled for each subsequent year, payable in equal monthly installments on the first day of each month, subject to customary concessions in the Company’s favor and pass-through of certain increases in utility costs and real estate taxes over the base year. The Company provided a security deposit represented by a letter of credit in the amount of $469,000 in October 2016, which was reduced to $305,000 on October 3, 2021 and is to be fully refunded after the sublease ends. This Building became the Company’s new corporate office facility. The Company is required to pay for certain operating expenses associated with the Premises as well as utilities supplied to the Premises. Sublandlord provided Value Line a work allowance of $417,000 which accompanied with the six months free rent worth $563,000 was applied against the Company’s obligation to pay rent at our NYC headquarters.

From 2016 to 2024, the Company’s subsidiary VLDC and Seagis Property Group LP (the “Landlord”) entered into a lease agreement, pursuant to which VLDC leased 24,110 square feet of warehouse and appurtenant office space located at Lyndhurst, NJ (“Warehouse”). Base rent under the Lease was $237,218 per annum. The Company provided a security deposit in cash in the amount of $32,146, which has been fully refunded after the Company vacated the premises. VLDC distributed Value Line’s print publications from the Warehouse. The Company has outsourced to U.S. contractors the functions formerly performed at the Warehouse.

### Liquidity and Capital Resources

The Company had working capital, defined as current assets less current liabilities, of $55,483,000 as of January 31, 2025 and $48,770,000 as of April 30, 2024. These amounts include short-term unearned revenue of $16,634,000 and $15,764,000 reflected in total current liabilities at January 31, 2025 and April 30, 2024, respectively. Cash and short-term securities were $75,791,000 and $68,345,000 as of January 31, 2025 and April 30, 2024, respectively.

The Company’s cash and cash equivalents include $26,005,000 and $4,136,000 at January 31, 2025 and April 30, 2024, respectively, invested primarily in commercial banks and in Money Market Funds at brokers, which operate under Rule 2a-7 of the 1940 Act and invest primarily in short-term U.S. government securities.

#### Cash from operating activities

The Company had cash inflows from operating activities of $14,703,000 during the nine months ended January 31, 2025, compared to cash inflows of $14,169,000 during the nine months ended January 31, 2024. The change in cash inflows was a result of an increase in unrealized gains on equity securities and a decrease in accounts receivable from customers, offset by a smaller decline of unearned revenue from the same period last year.

#### Cash from investing activities

The Company had cash inflows from investing activities of $16,475,000 during the nine months ended January 31, 2025, compared to cash outflows from investing activities of $7,719,000 for the nine months ended January 31, 2024, respectively. The significant cash inflows in investing activities for the nine months ended January 31, 2025 was a result of the company’s conscious decisions to invest the proceeds from maturities of fixed income short-term securities in the company’s short-term U.S. Government money market funds at higher yields than U.S Treasury Bills.

#### Cash from financing activities

During the nine months ended January 31, 2025, the Company’s cash outflows from financing activities were $8,752,000, compared to cash outflows from financing activities of $8,260,000 for the nine months ended January 31, 2024. Quarterly dividend payments of $0.30 per share during fiscal year 2025 aggregated $8,478,000. Quarterly regular dividend payments of $0.28 per share during fiscal year 2024 aggregated $7,922,000.

At January 31, 2025 there were 9,418,527 common shares outstanding as compared to 9,429,575 common shares outstanding at January 31, 2024. The Company expects financing activities to continue to include use of cash for dividend payments for the foreseeable future.

### Debt and Liquid Assets

Management believes that the Company’s cash and other liquid asset resources used in its business together with future cash flows from operations and from the Company’s non-voting revenues and non-voting profits interests in EAM will be sufficient to finance current and forecasted liquidity needs for the next twelve months and beyond. Management does not anticipate making any borrowings during the next twelve months. As of January 31, 2025, retained earnings and liquid assets were $112,508,000 and $75,791,000, respectively. As of April 30, 2024, retained earnings and liquid assets were $104,249,000 and $68,345,000, respectively. There are no off-balance-sheet arrangements, so none affect the interpretations of reported assets, liquidity, and debt.

### Seasonality

Our publishing revenues are comprised of subscriptions which are generally annual subscriptions. Our cash flows from operating activities are minimally seasonal in nature, primarily due to the timing of customer payments made for orders and subscription renewals.

### Recent Accounting Pronouncements

In November 2023, the FASB issued Accounting Standards Update 2023-07, “Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which requires disclosures of significant expenses by segment and interim disclosure of items that were previously required on an annual basis. ASU 2023-07 is to be applied on a retrospective basis and is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. We adopted ASU 2023-07 with such disclosures included in Note 16 to our Consolidated Financial Statements.

In December 2023, the FASB issued Accounting Standards Update 2023-09, “Improvements to Income Tax Disclosures” (“ASU 2023-09”), which provides for additional disclosures primarily related to the income tax rate reconciliations and income taxes paid. ASU 2023-09 requires entities to annually disclose the income tax rate reconciliation using both amounts and percentages, considering several categories of reconciling items, including state and local income taxes, foreign tax effects, tax credits and nontaxable or nondeductible items, among others. Disclosure of the reconciling items is subject to a quantitative threshold and disaggregation by nature and jurisdiction. ASU 2023-09 also requires entities to disclose net income taxes paid or received to federal, state and foreign jurisdictions, as well as by individual jurisdiction, subject to a five percent quantitative threshold. ASU 2023-09 may be adopted on a prospective or retrospective basis and is effective for fiscal years beginning after December 15, 2024 with early adoption permitted. We are evaluating the impact of ASU 2023-09 on disclosures in our Consolidated Financial Statements.

### Critical Accounting Estimates and Policies

The Company prepares its Consolidated Financial Statements in accordance with Generally Accepted Accounting Principles as in effect in the United States (U.S. “GAAP”). The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent, and the Company evaluates its estimates on an ongoing basis. Actual results may differ from these estimates under different assumptions or conditions.

The Company’s critical accounting policy relates to the valuation of EAM. There have been no material changes in our critical accounting policies during the nine months ended January 31, 2025. For a complete discussion of our critical accounting policies, refer to “Critical Accounting Policies and Estimates” discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10-K for fiscal year ended April 30, 2024.

### Contractual Obligations

We are a party to a lease contract which will result in cash payments to a lessor in future periods. Operating lease liabilities are included in our Consolidated Balance Sheets. Estimated payments of these liabilities in each of the next four fiscal years and thereafter are (in thousands): $362 in 2025; $1,461 in 2026; $1,493 in 2027 and $882 in 2028 totaling $4,198.

## Market risk

As filed, 5,478 characters.

### Market Risk Disclosures

The Company’s Consolidated Condensed Balance Sheet includes a substantial amount of assets whose fair values are subject to market risks. The Company’s market risks are primarily associated with interest rates and equity price risk. The following sections address the significant market risks associated with the Company’s investment activities.

### Interest Rate Risk

The Company’s strategy has been to acquire debt securities with low credit risk. Despite this strategy management recognizes and accepts the possibility that losses may occur. To limit the price fluctuation in these securities from interest rate changes, the Company’s management invests primarily in short-term obligations maturing within one year.

The fair values of the Company’s fixed maturity investments will fluctuate in response to changes in market interest rates. Increases and decreases in prevailing interest rates generally translate into decreases and increases in fair values of those instruments. Additionally, fair values of interest rate sensitive instruments may be affected by prepayment options, relative values of alternative investments, and other general market conditions.

Fixed income securities consist of bank certificates of deposits and securities issued by the United States federal government. As of January 31, 2025, the aggregate cost and fair value of fixed income securities classified as available-for-sale were $27,269,000 and $27,167,000, respectively. As of April 30, 2024 the aggregate cost and fair value of fixed income securities classified as available-for-sale were $47,931,000 and $47,611,000, respectively.

The following table summarizes the estimated effects of hypothetical increases and decreases in interest rates on assets that are subject to interest rate risk. It is assumed that the changes occur immediately and uniformly to each category of instrument containing interest rate risks. The hypothetical changes in market interest rates do not reflect what could be deemed best or worst case scenarios. Variations in market interest rates could produce significant changes in the timing of repayments due to prepayment options available. For these reasons, actual results might differ from those reflected in the table.

Fixed Income Securities

| As of January 31, 2025 | Estimated Fair Value after Hypothetical Change in Interest Rates (in thousands) (bp = basis points) 1 year Fair Value | 1 year 50 bp increase | 1 year 50 bp decrease | 1 year 100 bp increase | 1 year 100 bp decrease |
| --- | ---: | ---: | ---: | ---: | ---: |
| Investments in securities with fixed maturities | $27,167 | $26,879 | $27,257 | $26,693 | $27,449 |
| As of April 30, 2024 |  |  |  |  |  |
| Investments in securities with fixed maturities | $47,611 | $46,554 | $46,935 | $46,363 | $47,126 |

Management regularly monitors the maturity structure of the Company’s investments in debt securities in order to maintain an acceptable price risk associated with changes in interest rates.

### Equity Price Risk

The carrying values of investments subject to equity price risks are based on quoted market prices as of the balance sheet dates. Market prices are subject to fluctuation and, consequently, the amount realized in the subsequent sale of an investment may significantly differ from the reported market value. Fluctuation in the market price of a security may result from perceived changes in the underlying economic characteristics of the issuer, the relative price of alternative investments and general market conditions. Furthermore, amounts realized in the sale of a particular security may be affected by the relative quantity of the security being sold.

The Company’s equity investment strategy has been to acquire equity securities across a diversity of industry groups. The portfolio consists of ETFs held for dividend yield that attempt to replicate the performance of certain equity indexes. In order to maintain liquidity in these securities, the Company’s policy has been to invest in and hold in its portfolio, no more than 5% of the approximate average daily trading volume in any one issue.

As of January 31, 2025 and April 30, 2024, the aggregate cost of the equity securities, which consist of investments in the SPDR Series Trust S&P Dividend ETF (SDY), First Trust Value Line Dividend Index ETF (FVD), ProShares Trust S&P 500 Dividend Aristocrats ETF (NOBL), IShares DJ Select Dividend ETF (DVY) and other Exchange Traded Funds was a combined total of $15,509,000 and $11,663,000, respectively, and the fair value was $21,808,000 and $16,344,000, respectively.

*($ in thousands)*

| Equity Securities |  | Fair Value | Hypothetical Price Change | Estimated Fair Value after Hypothetical Change in Prices | Hypothetical Percentage Increase (Decrease) in Shareholders’ Equity |
| --- | --- | ---: | --- | ---: | ---: |
| As of January 31, 2025 | Equity Securities and ETFs held for dividend yield | $21,808 | 30% increase | $28,350 | 5.22% |
|  |  |  | 30% decrease | $15,266 | (5.22%) |

*($ in thousands)*

| Equity Securities |  | Fair Value | Hypothetical Price Change | Estimated Fair Value after Hypothetical Change in Prices | Hypothetical Percentage Increase (Decrease) in Shareholders’ Equity |
| --- | --- | ---: | --- | ---: | ---: |
| As of April 30, 2024 | Equity Securities and ETFs held for dividend yield | $16,344 | 30% increase | $21,247 | 4.27% |
|  |  |  | 30% decrease | $11,441 | (4.27%) |

35

## Controls and procedures

As filed, 1,591 characters.

(a) The Company maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) that are designed to ensure that information required to be disclosed in the Company’s reports filed with the SEC is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding disclosure.

The Company’s management has evaluated, with the participation of the Company’s Principal Executive Officer and Principal Financial Officer, the effectiveness of the Company’s disclosure controls and procedures, (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based on that evaluation, the Principal Executive Officer and Principal Financial Officer have concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report.

(b) The registrant’s Principal Executive Officer and Principal Financial Officer have determined that there have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

## Risk factors

As filed, 502 characters.

Part I, Item 2 of this Quarterly Report on Form 10-Q for the period ended January 31, 2025, reflects any changes and updates (see page 22) in addition to the list of the risk factors disclosed in Item 1A - Risk Factors in the Company's Annual Report on Form 10-K for the year ended April 30, 2024 filed with the SEC on July 26, 2024. Any new risk factors reflect management's continuing analysis of developments in the Company's business environment, rather than any specific event or particular issue.

Filed Mar 14, 2025.
Source: SEC EDGAR, the filing index for accession 0001437749-25-007788. Last ingested by Listed: Oct 24, 2026, 14:56 ET. No prices; not investment advice.