VALUE LINE INC
For the period ended Jan 31, 2025. Filed Mar 14, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jan 31, 2025 · Filed Mar 14, 2025
VALU$42.37-4.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-10-31; filed 2024-12-13.
0001437749-24-037459
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-01-31; filed 2025-03-14.
0001437749-25-007788
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 88 previous paragraphs and 88 current paragraphs.
51 unchanged; 32 reworded; 5 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
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.
Current report
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.
Current report
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.
Current report
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 1 st. 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.
Current report
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.
Removed paragraphs (5)
Previous report
The U.S. economy, after showing signs of slowing down during the first three months of calendar 2024, reaccelerated in the second and third quarters. The nation’s gross domestic product expanded by an estimated 2.8% in the September period, building on the 3.0% advance recorded in the June quarter. The growth was fueled by a hearty 3.5% increase in personal consumption expenditures. The consumer sector, which accounts for two-thirds of the nation’s output, has proven resilient amid higher inflation and elevated lending rates the last few years.
Previous report
The economic advance came as the Federal Reserve began to reverse course from its most restrictive monetary policy stretch in four decades in an effort to rein in inflation. The Fed looks close to achieving its goal, as the pace of both consumer and producer (wholesale) price growth eased further over the summer and, to a lesser extent, fall months and moved closer to the central bank’s target growth rate of 2%. This gave the lead bank the confidence to reduce the federal funds rate by three quarters of a percentage point, to a range of 4.50% to 4.75%, through the November Federal Open Market Committee (FOMC) meeting.
Previous report
The central bank also is keeping a watchful eye on the labor market, which is the other part of its dual mandate. Initial weekly unemployment claims were running at a level indicative of a tight labor market this fall, but other metrics suggest that overall conditions are softening a bit. Our sense is that the state of the job market going forward will play a big role in how much the Federal Reserve reduces the benchmark short-term interest rate in 2025. An interest-rate pause may also be in the cards during the early part of next year, if the economy continues to expand and the incoming Trump Administration’s pro-growth agenda—including tax cuts and regulation rollbacks—sparks a reacceleration in demand for goods and ultimately the pace of price growth.
Previous report
As 2024 drew to a close, the Federal Reserve appeared close to achieving its goal of taming inflation, which jumped to a 40-year high in June, 2022, without leading to a sharp deterioration in the U.S. labor market or pushing the economy into recession. Nationwide output is getting a boost from a still-vibrant consumer sector, which saw spending jump on a year-over-year basis during the early part of the holiday shopping season. The strength of the consumer sector has offset continued contraction in manufacturing and uneven performances from the housing and homebuilding industries. This has provided a supportive backdrop for Corporate America and the U.S. stock market.
Previous report
In all, the business environment held up very well during calendar 2024, with profit growth for S&P 500 companies averaging around 6% in the third quarter after rising by a low double-digit rate in the June period. This earnings growth was likely needed to justify the Index’s high price-to-earnings multiple, which at the end of November was above both its five- and 10-year averages.
Reworded paragraphs (32)
Previous wording
Results of Operations for the Three and Six Months Ended October 31, 2024 and 2023
Current wording
Results of Operations for the Three and Nine Months Ended January 31, 2025 and 2024
Previous wording
During the six months ended October 31, 2024, the Company’s net income of $11,572,000, or $1.23 per share, was 38.6% above net income of $8,347,000, or $0.89 per share, for the six months ended October 31, 2023. During the six months ended October 31, 2024, the Company’s income from operations of $3,591,000 was 33.8% below income from operations of $5,421,000 during the six months ended October 31, 2023. For the six months ended October 31, 2024, operating expenses increased 1.4% above those during the six months ended October 31, 2023.
Current wording
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.
Previous wording
During the three months ended October 31, 2024, the Company’s net income of $5,685,000, or $0.60 per share, was 63.0% above net income of $3,488,000, or $0.37 per share, for the three months ended October 31, 2023. During the three months ended October 31, 2024, the Company’s income from operations of $1,744,000 was 34.8% below income from operations of $2,674,000 during the three months ended October 31, 2023. For the three months ended October 31, 2024, operating expenses increased 2.3% above those during the three months ended October 31, 2023.
Current wording
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.
Previous wording
During the six months ended October 31, 2024, there were 9,419,006 average common shares outstanding as compared to 9,430,871 average common shares outstanding during the six months ended October 31, 2023.
Current wording
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.
Previous wording
During the six months ended October 31, 2024, 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.
Current wording
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.
Previous wording
Unearned subscription revenue as of October 31, 2024, is 6.4% below April 30, 2024 and 5.0% below October 31, 2023. 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.
Current wording
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.
Previous wording
Investment periodicals and related publications revenues of $12,469,000 (excluding copyright fees) during the six months ended October 31, 2024 were 3.0% below publications revenues of $12,855,000 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 October 31, 2024, was 2.3% below total product line circulation at October 31, 2023.
Current wording
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.
Previous wording
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 October 31, 2024 was 2.6% below the total print circulation at October 31, 2023. During the six months ended October 31, 2024, print publication revenues of $4,414,000 decreased 6.3%, below print publication revenues of $4,709,000 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 October 31, 2024 was 1.8% below total digital circulation at October 31, 2023. During the six months ended October 31, 2024, digital revenues of $8,055,000 were slightly lower when compared to the prior 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.
Current wording
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.
Previous wording
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 October 31, 2024, the combined Ranking System “Rank 1 & 2” stocks’ increase of 35.2% compared to the Russell 2000 Index’s increase of 31.6% during the comparable period.
Current wording
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.
Previous wording
During the six months ended October 31, 2024, copyright fees of $5,256,000 were 19.1% 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.
Current wording
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.
Previous wording
Total assets in the Value Line Funds managed and/or distributed by EAM at October 31, 2024, were $4.78 billion, which is $1.47 billion, or 44.6%, above total assets of $3.31 billion in the Value Line Funds managed and/or distributed by EAM at October 31, 2023.
Current wording
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.
Previous wording
The gross fees and net income of EAM’s investment management operations during the six months ended October 31, 2024, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $15,342,000, 12b-1 fees and other fees of $3,952,000 and other net gains of $316,000. For the same period, total investment management fee waivers were $87,000 and 12b-1 fee waivers were $46,000. During the six months ended October 31, 2024, EAM's net income was $2,290,000 after giving effect to Value Line’s non-voting revenues interest of $7,726,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.
Current wording
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.
Previous wording
The gross fees and net income of EAM’s investment management operations during the six months ended October 31, 2023, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $11,068,000, 12b-1 fees and other fees of $3,179,000 and other net gains of $103,000. For the same period, total investment management fee waivers were $162,000 and 12b-1 fee waivers were $48,000. During the six months ended October 31, 2023, EAM's net income was $1,030,000 after giving effect to Value Line’s non-voting revenues interest of $5,337,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.
Current wording
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.
Previous wording
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 October 31, 2024. At October 31, 2024, equity and hybrid AUM increased by 45.1% and fixed income AUM remained the same as last year at October 31, 2023.
Current wording
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.
Previous wording
Expenses within the Company are categorized into advertising and promotion, salaries and employee benefits, production and distribution, office and administration. Operating expenses of $14,134,000 during the six months ended October 31, 2024, were 1.4% above those during the six months ended October 31, 2023.
Current wording
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.
Previous wording
During six months ended October 31, 2024, advertising and promotion expenses of $1,722,000 increased 26.9% as compared to the prior fiscal year. During the six months ended October 31, 2024, increases were primarily due to increases in direct mail and third-party telemarketing & sales consulting.
Current wording
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.
Previous wording
During the six months ended October 31, 2024, salaries and employee benefits of $7,118,000 decreased 4.3% below the prior fiscal year, primarily due to decreases in salaries and employee benefits resulting from reduced employee headcount during fiscal years 2024 and 2025.
Current wording
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.
Previous wording
During the six months ended October 31, 2024, production and distribution expenses of $2,938,000 increased 2.2% 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 VLDC activity at April 30, 2024.
Current wording
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.
Previous wording
During the six months ended October 31, 2024, office and administrative expenses of $2,356,000 increased 4.1% above the prior fiscal year, due to an increases that resulted from software upgrade and modernization project to replace outdated software, and the costs of product billing and other outsourced fulfillment functions outsourced, replacing an in-house group based at VLDC previously handled internally by employees.
Current wording
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.
Previous wording
During the six months ended October 31, 2024, 29.7% of total publishing revenues of $17,725,000 were derived from a single customer.
Current wording
During the nine months ended January 31, 2025, 29.6% of total publishing revenues of $26,692,000 were derived from a single customer.
Previous wording
During the six months ended October 31, 2024, the Company’s total investment gains of $2,895,000 increased 993.5% 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 six months ended October 31, 2024 and October 31, 2023 were $3,075,000 and $999,000, respectively.
Current wording
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.
Previous wording
The overall effective income tax rates, as a percentage of pre-tax ordinary income for the six months ended October 31, 2024 and October 31, 2023 were 24.65% and 23.76%, respectively. The higher effective tax rate during six months ended October 31, 2024 as compared to October 31, 2023, is primarily a result of an increase in the state and local income taxes from 3.03% to 3.86% 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.
Current wording
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.
Previous wording
The Company had working capital, defined as current assets less current liabilities, of $52,961,000 as of October 31, 2024 and $48,770,000 as of April 30, 2024. These amounts include short-term unearned revenue of $15,856,000 and $15,764,000 reflected in total current liabilities at October 31, 2024 and April 30, 2024, respectively. Cash and short-term securities were $72,045,000 and $68,345,000 as of October 31, 2024 and April 30, 2024, respectively.
Current wording
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.
Previous wording
The Company’s cash and cash equivalents include $10,985,000 and $4,136,000 at October 31, 2024 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.
Current wording
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.
Previous wording
The Company had cash inflows from operating activities of $7,844,000 during the six months ended October 31, 2024, compared to cash inflows of $5,763,000 during the six months ended October 31, 2023. 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.
Current wording
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.
Previous wording
The Company had cash inflows from investing activities of $4,889,000 during the six months ended October 31, 2024, compared to cash outflows from investing activities of $3,808,000 for the six months ended October 31, 2023, respectively. The significant cash inflows in investing activities for the six months ended October 31, 2024 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.
Current wording
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.
Previous wording
During the six months ended October 31, 2024, the Company’s cash outflows from financing activities were $5,830,000, compared to cash outflows from financing activities of $5,621,000 for the six months ended October 31, 2023. Quarterly dividend payments of $0.30 per share during fiscal year 2025 aggregated $5,652,000. Quarterly regular dividend payments of $0.28 per share during fiscal year 2024 aggregated $5,283,000.
Current wording
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.
Previous wording
At October 31, 2024 there were 9,418,074 common shares outstanding as compared to 9,426,983 common shares outstanding at October 31, 2023. The Company expects financing activities to continue to include use of cash for dividend payments for the foreseeable future.
Current wording
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.
Previous wording
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 October 31, 2024, retained earnings and liquid assets were $110,170,000 and $72,045,000, 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.
Current wording
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.
Previous wording
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 are evaluating the impact of ASU 2023-07 on disclosures in our Consolidated Financial Statements.
Current wording
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.
Previous wording
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 six months ended October 31, 2024. 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.
Current wording
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.
Previous wording
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): $721 in 2025; $1,461 in 2026; $1,493 in 2027 and $882 in 2028 totaling $4,557.
Current wording
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.