VALUE LINE, INC. ANNOUNCES FIRST QUARTER EARNINGS

Rhea-AI Summary

Value Line, Inc. (NASDAQ: VALU) reported strong financial results for the first fiscal quarter ended July 31, 2024. The company's net income increased by 21.2% to $5,887,000, or $0.62 per share, compared to $4,859,000, or $0.52 per share, in the same period last year. Revenues from its non-voting interests in EAM grew by 48.4% to $4,241,000. Total investment gains surged by 126.4% to $1,709,000.

Retained earnings rose by 2.9% to $107,311,000, while shareholders' equity increased by 3.4% to $93,853,000. Value Line continues to be a leading provider of investment research, offering various products and services including The Value Line Investment Survey, research on Mutual Funds, ETFs, and Options, as well as specialized products for individual and institutional investors.

Positive

• Net income increased by 21.2% to $5,887,000 ($0.62 per share)
• Revenues from non-voting interests in EAM grew by 48.4% to $4,241,000
• Total investment gains surged by 126.4% to $1,709,000
• Retained earnings rose by 2.9% to $107,311,000
• Shareholders' equity increased by 3.4% to $93,853,000

Negative

• None.

Insights

Financial Analyst

Value Line's Q1 FY2025 results show impressive growth, with net income up 21.2% year-over-year to $5.89 million. The standout performer was the company's non-voting interest in EAM, which saw revenues surge by 48.4% to $4.24 million. This substantial increase suggests strong demand for Value Line's investment research products.

The company's investment gains also skyrocketed, up 126.4% to $1.71 million, indicating savvy portfolio management in a potentially volatile market. With retained earnings and shareholders' equity both growing, Value Line appears to be in a solid financial position. The 3.4% increase in shareholders' equity to $93.85 million reflects the company's ability to create value for its investors.

Overall, these results paint a picture of a company firing on all cylinders, with strong growth across multiple revenue streams and prudent financial management.

Market Research Analyst

Value Line's strong performance hints at a broader trend in the investment research industry. The significant growth in revenues from their EAM interest suggests increasing demand for sophisticated investment tools and analysis, particularly in a market that's likely becoming more complex and volatile.

The company's diverse product portfolio, spanning from traditional equity research to newer areas like ETFs and climate change investing, positions them well to capture a wide range of investor interests. This diversification strategy appears to be paying off, as evidenced by their robust financial results.

The growth in Value Line's proprietary products and copyrights also indicates a market that values unique, high-quality research. This could signal a shift away from commoditized financial information towards more specialized, value-added insights - a trend that could benefit boutique research providers like Value Line in the long term.

Value Line, Inc.
551 Fifth Avenue
New York, NY 10176

New York, Sept. 13, 2024 (GLOBE NEWSWIRE) -- Value Line, Inc., (NASDAQ: VALU) reported financial results for the first fiscal quarter ended July 31, 2024.

During the three months ended July 31, 2024, the Company’s net income of $5,887,000, or $0.62 per share, was 21.2% above net income of $4,859,000, or $0.52 per share, for the three months ended July 31, 2023. The Company’s revenues of $4,241,000 from its non-voting revenues interest in EAM and non-voting profits interest in EAM increased $1,384,000 or 48.4% above the prior fiscal year.

During the three months ended July 31, 2024, the Company’s total investment gains of $1,709,000 increased $954,000 or 126.4% above the prior fiscal year.

Retained earnings at July 31, 2024, were $107,311,000, an increase of 2.9% compared to retained earnings at April 30, 2024. Shareholders’ equity reached $93,853,000 at July 31, 2024, an increase of 3.4% from the shareholders’ equity of $90,793,000 as of April 30, 2024.

The Company’s quarterly report on Form 10-Q has been filed with the SEC and is available on the Company’s website at www.valueline.com/About/corporate_filings.aspx. Shareholders may receive a printed copy, free of charge upon request to the Company at the address above, Attn: Corporate Secretary.

Value Line, Inc. is a leading New York based provider of investment research. The Value Line Investment Survey is one of the most widely used sources of independent equity investment research. Value Line also publishes a range of proprietary investment research in both print and digital formats including research in the areas of Mutual Funds, ETFs and Options. Value Line’s acclaimed research also enables the Company to provide specialized products such as Value Line Select, The Value Line Special Situations Service, Value Line Select ETFs, Value Line Select: Dividend Income & Growth, The New Value Line ETFs Service, The Value Line M&A Service, Information You Should Know Wealth Newsletter, The Value Line Climate Change Investing Service and certain Value Line copyrights, distributed under agreements including certain proprietary ranking system information and other proprietary information used in third party products. Value Line’s products are available to individual investors by mail, at www.valueline.com or by calling 1-800-VALUELINE or 1-800-825-8354, while institutional-level services for professional investors, advisers, corporate, academic, and municipal libraries are offered at www.ValueLinePro.com, www.ValueLineLibrary.com and by calling 1-800-531-1425.

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, sectoral 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.;
• 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;
• insufficiency in our business continuity plans or systems in the event of anticipated or unpredictable disruption;
• 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 this Quarterly Report on Form 10-Q for the period ended July 31, 2024; and other risks and uncertainties arising from time to time.

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 or changes in our plans, strategies, objectives, expectations or intentions, which may happen at any time at our discretion, could also have material adverse effects on 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.

www.valueline.com
www.ValueLinePro.com, www.ValueLineLibrary.com
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FAQ

What was Value Line's (VALU) net income for Q1 2024?

Value Line (VALU) reported a net income of $5,887,000, or $0.62 per share, for the first fiscal quarter ended July 31, 2024.

How much did Value Line's (VALU) revenues from EAM interests increase in Q1 2024?

Value Line's (VALU) revenues from its non-voting interests in EAM increased by 48.4% to $4,241,000 in Q1 2024 compared to the same period last year.

What was the percentage increase in Value Line's (VALU) investment gains for Q1 2024?

Value Line's (VALU) total investment gains increased by 126.4% to $1,709,000 for the first quarter of fiscal year 2024.

How much did Value Line's (VALU) shareholders' equity grow as of July 31, 2024?

Value Line's (VALU) shareholders' equity reached $93,853,000 as of July 31, 2024, representing an increase of 3.4% from April 30, 2024.