VALUE LINE, INC. ANNOUNCES SECOND QUARTER EARNINGS

Rhea-AI Summary

Value Line (NASDAQ: VALU) reported strong financial results for Q2 FY2024. Net income reached $5,685,000 ($0.60 per share) for the quarter, up 63.0% from $3,488,000 ($0.37 per share) in Q2 FY2023. For the six-month period, net income was $11,572,000 ($1.23 per share), increasing 38.6% from $8,347,000 ($0.89 per share) year-over-year.

The company's revenues from non-voting interests in EAM grew significantly, reaching $4,630,000 in Q2 (up 54.6%) and $8,871,000 for the six months (up 51.6%). Investment performance improved substantially, with gains of $1,186,000 in Q2 and $2,895,000 for six months, compared to losses in the previous year. Retained earnings increased 5.7% to $110,170,000, while shareholders' equity grew 6.5% to $96,715,000.

Positive

• Net income increased 63.0% YoY for Q2 FY2024
• EAM-related revenues grew 54.6% in Q2 FY2024
• Investment gains of $1,186,000 vs previous year loss
• Shareholders' equity increased 6.5% to $96,715,000
• Retained earnings grew 5.7% to $110,170,000

Negative

• None.

Insights

Financial Analyst

Value Line's Q2 FY2024 results showcase remarkable financial strength with net income surging 63.0% to $5.7 million ($0.60 per share) in Q2. The company's revenue streams from EAM interests demonstrated robust growth, increasing by 54.6%. A notable turnaround in investment performance, from a $1.1 million loss to $1.2 million gain, significantly boosted bottom-line results. The strengthening balance sheet, evidenced by a 6.5% increase in shareholders' equity to $96.7 million, reflects solid financial management and value creation for shareholders.

Market Research Analyst

The substantial growth in EAM-related revenues, up 51.6% for the six-month period, indicates strong market demand for Value Line's investment research products and services. The company's diversified revenue model, combining subscription-based research services with investment interests, provides stability while capturing market upside. The positive investment gains reflect improved market conditions and portfolio management, marking a significant improvement from the previous year's losses. This performance strengthens Value Line's position in the competitive investment research market.

NEW YORK, Dec. 13, 2024 (GLOBE NEWSWIRE) -- Value Line, Inc., (NASDAQ: VALU) reported financial results for the second fiscal quarter ended October 31, 2024.

• 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.
   
• The Company’s revenues of $8,871,000 from its non-voting revenues interest in EAM and non-voting profits interest in EAM increased $3,019,000 or 51.6% above the prior fiscal year.
   
• During the six months ended October 31, 2024, the Company’s total investment gains of $2,895,000 compared to a loss of $324,000 in the prior fiscal year.
   
• 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.
   
• The Company’s revenues of $4,630,000 from its non-voting revenues interest in EAM and non-voting profits interest in EAM increased $1,635,000 or 54.6% above the prior fiscal year.
   
• During the three months ended October 31, 2024, the Company’s total investment gains of $1,186,000 compared to a loss of $1,079,000 in the prior fiscal year.
   
• Retained earnings at October 31, 2024, were $110,170,000, an increase of 5.7% compared to retained earnings at April 30, 2024.
   
• Shareholders’ equity reached $96,715,000 at October 31, 2024, an increase of 6.5% 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, 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.;
• 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 October 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 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.

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

What was Value Line's (VALU) earnings per share for Q2 2024?

Value Line reported earnings of $0.60 per share for Q2 FY2024, up from $0.37 per share in Q2 FY2023.

How much did VALU's net income grow in Q2 2024?

Value Line's net income grew 63.0% to $5,685,000 in Q2 FY2024, compared to $3,488,000 in Q2 FY2023.

What was Value Line's revenue from EAM interests in Q2 2024?

Value Line's revenues from non-voting interests in EAM were $4,630,000 in Q2 FY2024, representing a 54.6% increase year-over-year.

How much were VALU's investment gains in Q2 2024?

Value Line reported investment gains of $1,186,000 in Q2 FY2024, compared to a loss of $1,079,000 in the same period last year.

What was Value Line's shareholders' equity as of October 31, 2024?

Value Line's shareholders' equity reached $96,715,000 as of October 31, 2024, representing a 6.5% increase from April 30, 2024.