VALUE LINE, INC. ANNOUNCES HIGHER FISCAL YEAR 2024 EARNINGS

Rhea-AI Summary

Value Line, Inc. (NASDAQ: VALU) reported strong financial results for fiscal year 2024 ended April 30. Net income rose 5.2% to $19,016,000 ($2.02 per share), up from $18,069,000 ($1.91 per share) in FY 2023. The company's non-voting revenues and profits interest in EAM increased 19.3% to $13,282,000. Operating expenses decreased by 1.0%, excluding restructuring costs. For Q4 2024, net income jumped 18.6% to $4,784,000 ($0.51 per share).

Value Line declared total dividends of $1.14 per share in FY 2024, with a new quarterly dividend of $0.30 per share, marking the tenth consecutive year of increases. The company's liquid assets grew 10.1% to $68,345,000, while shareholders' equity increased 8.5% to $90,793,000. Value Line continues to be a leading provider of investment research, offering various products and services to individual and institutional investors.

Positive

• Net income increased 5.2% year-over-year to $19,016,000
• Non-voting revenues and profits interest in EAM grew 19.3% to $13,282,000
• Operating expenses decreased by 1.0% (excluding restructuring costs)
• Q4 2024 net income rose 18.6% to $4,784,000
• Declared tenth consecutive year of dividend increases
• Liquid assets increased 10.1% to $68,345,000
• Shareholders' equity grew 8.5% to $90,793,000

Negative

• Restructuring costs incurred due to outsourcing of certain fulfillment and distribution operations

Insights

Financial Analyst

Value Line's fiscal year 2024 results demonstrate solid financial performance and shareholder value creation. Net income increased by 5.2% to $19,016,000, or $2.02 per share. This growth was primarily driven by a significant 19.3% increase in receipts from the company's non-voting interests in EAM, totaling $13,282,000.

The company's cost management efforts are noteworthy, with operating expenses decreasing by 1.0% year-over-year, excluding restructuring costs. This efficiency improvement, coupled with revenue growth, has contributed to the enhanced bottom line.

Value Line's commitment to shareholder returns is evident in its dividend policy. The company declared total dividends of $1.14 per share for fiscal year 2024 and announced a quarterly dividend increase to $0.30 per share. This marks the tenth consecutive year of dividend increases, reflecting financial stability and confidence in future cash flows. The new annualized dividend of $1.20 per share yields approximately 3.3%, which is attractive in the current market environment.

The company's balance sheet remains strong, with liquid assets increasing by 10.1% to $68,345,000. Shareholders' equity grew by 8.5% to $90,793,000, indicating a solid financial foundation for future growth and stability.

While these results are positive, investors should note that a significant portion of Value Line's income is derived from its interests in EAM. This concentration could pose a risk if EAM's performance were to decline. Additionally, the company's core business of investment research faces ongoing challenges from the shift to passive investing and free online resources. Value Line's ability to adapt its products and services to changing market dynamics will be important for long-term success.

Market Research Analyst

Value Line's fiscal year 2024 results reflect the company's resilience in a challenging market for traditional investment research providers. The 5.2% increase in net income, despite industry headwinds, suggests that Value Line's brand strength and diversified revenue streams are paying off.

The standout performance comes from the company's non-voting interests in EAM, which saw a 19.3% increase in receipts. This growth indicates that Value Line's strategic partnerships and intellectual property licensing are becoming increasingly important revenue drivers. It's a smart move in an industry where traditional subscription-based models are under pressure from free and low-cost alternatives.

Value Line's cost management efforts, resulting in a 1.0% decrease in operating expenses, demonstrate the company's commitment to operational efficiency. The outsourcing of certain fulfillment and distribution operations to U.S.-based companies is likely part of this strategy, potentially allowing for more focus on core competencies.

The company's dividend policy, with its tenth consecutive year of increases, positions Value Line as an attractive option for income-focused investors. The 3.3% yield is competitive, especially considering the company's long-standing reputation in the investment research industry.

However, Value Line faces significant challenges in the evolving investment landscape. The rise of passive investing and robo-advisors continues to put pressure on traditional research providers. To maintain its growth trajectory, Value Line will need to continue innovating its product offerings, potentially expanding its digital presence and exploring new ways to monetize its proprietary ranking systems and research methodologies.

The company's focus on specialized products like the Climate Change Investing Service and M&A Service shows an awareness of emerging trends and niche markets. Continued development in these areas could help Value Line differentiate itself and capture new revenue streams in an increasingly crowded market.

New York, July 26, 2024 (GLOBE NEWSWIRE) -- Value Line, Inc., (NASDAQ: VALU) reported results for the fiscal year ended April 30, 2024. During the twelve months ended April 30, 2024, the Company’s net income of $19,016,000, or $2.02 per share, was 5.2% above net income of $18,069,000, or $1.91 per share, for the twelve months ended April 30, 2023. The Company’s receipts of $13,282,000 from its non-voting revenues interest in EAM and non-voting profits interest in EAM increased $2,151,000 or 19.3% above the prior fiscal year. For the twelve months ended April 30, 2024, excluding restructuring costs related to outsourcing to two U.S. based companies of certain fulfillment and distribution operations, operating expenses decreased approximately 1.0% below those during the twelve months ended April 30, 2023.

During the three months ended April 30, 2024, the Company’s net income of $4,784,000, or $0.51 per share, was 18.6% above net income of $4,033,000, or $0.43 per share, for the three months ended April 30, 2023. The Company’s revenues of $3,941,000 from its non-voting revenues interest in EAM and non-voting profits interest in EAM increased $1,326,000 or 50.7% above the prior fiscal year.

Total dividends declared during fiscal year 2024 were $1.14 per share. In April 2024, the Company declared a quarterly dividend of $0.30 per share which represents the tenth consecutive year of increases for the 93-year old investment research icon. Based on a full year at the new rate, the new dividend level will be $1.20 per share. Based on the closing stock price April 30, 2024, the dividend yield was approximately 3.3%.

Retained earnings at April 30, 2024, were $104,249,000, an increase of 8.6% compared to retained earnings at April 30, 2023. The Company’s liquid assets at April 30, 2024, were $68,345,000, a 10.1% increase from liquid assets at April 30, 2023. Shareholders’ equity reached $90,793,000 at April 30, 2024, an increase of 8.5% from the shareholders’ equity of $83,673,000 as of April 30, 2023.

The Company’s annual report on Form 10-K 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 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 this Company’s Annual Report on Form 10-K for the year ended April 30, 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 fiscal year 2024?

Value Line's net income for fiscal year 2024 was $19,016,000, or $2.02 per share, representing a 5.2% increase from the previous year.

How much did Value Line (VALU) receive from its interest in EAM for fiscal year 2024?

Value Line received $13,282,000 from its non-voting revenues interest and non-voting profits interest in EAM, which was a 19.3% increase from the prior fiscal year.

What was Value Line's (VALU) dividend yield as of April 30, 2024?

Based on the closing stock price on April 30, 2024, Value Line's dividend yield was approximately 3.3%.

How much did Value Line's (VALU) shareholders' equity increase in fiscal year 2024?

Value Line's shareholders' equity increased by 8.5% to $90,793,000 as of April 30, 2024, compared to $83,673,000 as of April 30, 2023.