10q10k10q10k.net

What changed in VALUE LINE INC's 10-K — 2022 vs 2023

vs

Paragraph-level year-over-year comparison of VALUE LINE INC's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+170 added−163 removedSource: 10-K (2023-07-28) vs 10-K (2022-07-26)

Top changes in VALUE LINE INC's 2023 10-K

170 paragraphs added · 163 removed · 136 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

52 edited+2 added−7 removed62 unchanged
Biggest changeThere are over 200 data fields that can be applied to help you make more informed decisions. Value Line has led its subscribers towards financial success by satisfying the demand for actionable insights and tools to manage equity investments.
Biggest changeValue Line has led its subscribers towards financial success by satisfying the demand for actionable insights and tools to manage equity investments. The Value Line Investment Survey – Library Elite offers libraries digital access to full reports, analyst commentary and Value Line proprietary ranks. This equity package monitors more than 3,300 companies. Online tools include a screener, and charting.
With regard to the investment management business conducted by EAM, the prevalence of broker supermarkets or platforms permitting easy transfer of assets among mutual funds, mutual fund families, and other investment vehicles tends to increase the speed with which shareholders can leave or enter the Value Line Funds based, among other things, on short-term fluctuations in performance. J.
With regard to the investment management business conducted by EAM, the prevalence of broker supermarkets or platforms permitting easy transfer of assets among mutual funds, mutual fund families, and other investment vehicles tends to increase the speed with which shareholders can leave or enter the Value Line Funds based, among other things, on short-term fluctuations in performance. 13 J.
Readers also receive supplemental reports as well as a monthly Index, which includes updated statistics, including proprietary ranks and ratings. Value Line Information You Should Know Wealth Newsletter This is a monthly service that started in January 2020. It is a general interest publication focusing on useful and actionable investing and financial information.
Readers also receive supplemental reports as well as a monthly Index, which includes updated statistics, including proprietary ranks and ratings. 7 Value Line Information You Should Know Wealth Newsletter This is a monthly service that started in January 2020. It is a general interest publication focusing on useful and actionable investing and financial information.
All data and information can be downloaded, exported, and printed. 7 The Value Line 600 The Value Line 600 is a monthly publication, which contains full-page research reports on approximately 600 equity securities. Its reports provide information on many actively traded, larger capitalization issues as well as some smaller growth stocks.
All data and information can be downloaded, exported, and printed. The Value Line 600 The Value Line 600 is a monthly publication, which contains full-page research reports on approximately 600 equity securities. Its reports provide information on many actively traded, larger capitalization issues as well as some smaller growth stocks.
Value Line’s primary copyright products are structured as ETFs and Unit Investment Trusts, all of which have in common some degree of reliance on the Value Line Ranking System for their portfolio creation. These products are offered and distributed by independent sponsors. C.
Value Line’s primary copyright products are structured as ETFs and Unit Investment Trusts, all of which have in common some degree of reliance on the Value Line Ranking System for their portfolio creation. These products are offered and distributed by independent sponsors. 10 C.
These rights were established to protect Value Line’s non-voting revenues and non-voting profits interests in EAM. EAM acts as the Adviser to the Value Line Funds. EULAV Securities acts as the Distributor for the Value Line Funds.
These rights were established to protect Value Line’s non-voting revenues and non-voting profits interests in EAM. 11 EAM acts as the Adviser to the Value Line Funds. EULAV Securities acts as the Distributor for the Value Line Funds.
As of April 30, 2022 and April 30, 2021, the Company held 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 and common stock equity securities.
As of April 30, 2023 and April 30, 2022, the Company held 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 and common stock equity securities.
Mr. Brecher has been an officer of the Company for more than 20 years. Stephen R. Anastasio 63 Vice President since December 2010; Director since February 2010; Treasurer since 2005. Mr. Anastasio has been an officer of the Company for more than 10 years. WEBSITE ACCESS TO SEC REPORTS The Company’s Internet site address is www.valueline.com .
Mr. Brecher has been an officer of the Company for more than 20 years. Stephen R. Anastasio 64 Vice President since December 2010; Director since February 2010; Treasurer since 2005. Mr. Anastasio has been an officer of the Company for more than 10 years. WEBSITE ACCESS TO SEC REPORTS The Company’s Internet site address is www.valueline.com .
The Value Line Investment Survey - Small and Mid-Cap The Value Line Investment Survey - Small and Mid-Cap is an investment research product introduced in 1995 that provides short descriptions of and extensive data for small and medium-capitalization stocks, many listed on The NASDAQ Exchange, beyond the equity securities of generally larger-capitalization companies covered in The Value Line Investment Survey .
The Value Line Investment Survey - Small and Mid-Cap The Value Line Investment Survey - Small and Mid-Cap is an investment research tool introduced in 1995 that provides short descriptions of and extensive data for small and medium-capitalization stocks, many listed on The NASDAQ Exchange, beyond the equity securities of generally larger-capitalization companies covered in The Value Line Investment Survey .
Brecher 68 Chairman and Chief Executive Officer since October 2011; Acting Chairman and Acting Chief Executive Officer from November 2009 to October 2011; Chief Legal Officer; Vice President and Secretary until January 2010; Vice President and Secretary of each of the Value Line Funds from June 2008 to December 2010; Secretary of EAM LLC from February 2009 until December 2010; Director and General Counsel of AB&Co.
Brecher 69 Chairman and Chief Executive Officer since October 2011; Acting Chairman and Acting Chief Executive Officer from November 2009 to October 2011; Chief Legal Officer; Vice President and Secretary until January 2010; Vice President and Secretary of each of the Value Line Funds from June 2008 to December 2010; Secretary of EAM LLC from February 2009 until December 2010; Director and General Counsel of AB&Co.
Each mutual fund may use "Value Line" in its name only to the extent permitted by the terms of the EAM Declaration of Trust. D. Wholly-Owned Operating Subsidiaries Wholly-owned operating subsidiaries of the Company as of April 30, 2022 include the following: 1.
Each mutual fund may use "Value Line" in its name only to the extent permitted by the terms of the EAM Declaration of Trust. D. Wholly-Owned Operating Subsidiaries Wholly-owned operating subsidiaries of the Company as of April 30, 2023 include the following: 1.
Executive Officers of the Registrant The following table lists the names, ages (at June 30, 2022), and principal occupations and employment during the past five years of the Company's Executive Officers. All officers are elected to terms of office for one year.
Executive Officers of the Registrant The following table lists the names, ages (at June 30, 2023), and principal occupations and employment during the past five years of the Company's Executive Officers. All officers are elected to terms of office for one year.
The most comprehensive of the Company’s online platforms is The Value Line Research Center , which allows subscribers to access most of the Company’s research and publications at a packaged price via the Internet. Investment analysis software ( The Value Line Investment Analyzer ) includes data sorting and filtering tools.
The most comprehensive of the Company’s online platforms is The Value Line Research Center , which allows subscribers to access most of the Company’s research and publications at a packaged price via the Internet. Investment analysis software ( The Value Line Investment Analyzer and The New Value Line ETFs Service ) includes data sorting and filtering tools.
EAM has elected to be taxed as a pass-through entity similar to a partnership. 11 Also, pursuant to the EAM Declaration of Trust, Value Line (1) granted each Fund use of the name “Value Line” so long as EAM remains the Fund’s adviser and on the condition that the Fund does not alter its investment objectives or fundamental policies from those in effect on the date of the investment advisory agreement with EAM, provided also that the Funds do not use leverage for investment purposes or engage in short selling or other complex or unusual investment strategies that create a risk profile similar to that of so-called hedge funds, (2) agreed to provide EAM its proprietary Ranking System information without charge or expense on as favorable basis as to Value Line’s best institutional customers and (3) agreed to capitalize the business with $7 million of cash and cash equivalents at inception.
Also, pursuant to the EAM Declaration of Trust, Value Line (1) granted each Fund use of the name “Value Line” so long as EAM remains the Fund’s adviser and on the condition that the Fund does not alter its investment objectives or fundamental policies from those in effect on the date of the investment advisory agreement with EAM, provided also that the Funds do not use leverage for investment purposes or engage in short selling or other complex or unusual investment strategies that create a risk profile similar to that of so-called hedge funds, (2) agreed to provide EAM its proprietary Ranking System information without charge or expense on as favorable basis as to Value Line’s best institutional customers and (3) agreed to capitalize the business with $7 million of cash and cash equivalents at inception.
The Value Line Investment Survey is comprised of three parts: The " Summary & Index " provides updated Timeliness and Safety Ranks, selected financial data, and "screens" of key financial measures; the " Ratings & Reports " section contains updated reports on 120-140 stocks each week; and the “ Selection & Opinion ” section provides economic commentary and data, general interest articles, and four model portfolios managed by analysts covering a range of investment approaches.
The Value Line Investment Survey is comprised of three parts: The " Summary & Index " provides updated Timeliness and Safety Ranks, selected financial data, and "screens" of key financial measures; the " Ratings & Reports " section contains the updated reports on stocks each week; and the “ Selection & Opinion ” section provides economic commentary and data, articles, and model portfolios managed by analysts covering a range of investment approaches.
As a lower priced service, it offers investors who want the same type of analysis provided in The Value Line Investment Survey , but who do not want or need coverage of all the companies covered by that product a suitable alternative.
It offers investors who want the same type of analysis provided in The Value Line Investment Survey , but who do not want or need coverage of all the companies covered by that product a suitable alternative.
The Company maintains registrations of all active and eligible trademarks. F. Investments As of April 30, 2022 and April 30, 2021, the Company held total investment assets (excluding its interests in EAM) with a fair market value of $28,122,000 and $26,182,000, respectively, including equity securities and available-for-sale fixed income securities on the Consolidated Balance Sheets.
The Company maintains registrations of all active and eligible trademarks. F. Investments As of April 30, 2023 and April 30, 2022, the Company held total investment assets (excluding its interests in EAM) with a fair market value of $54,474,000 and $28,122,000, respectively, including equity securities and available-for-sale fixed income securities on the Consolidated Balance Sheets.
The niche newsletters ( Value Line Select ®, Value Line Select: Dividend Income & Growth , Value Line Select: ETFs, The Value Line Special Situations Service ®, The Value Line M&A Service , The Value Line Climate Change Investing Service, and The Value Line Information You Should Know Wealth Newsletter) provide information on a less comprehensive basis for securities that the Company believes will be of particular interest to subscribers.
The niche newsletters ( Value Line Select ®, Value Line Select: Dividend Income & Growth , Value Line Select: ETFs, The Value Line Special Situations Service ®, The Value Line M&A Service , The Value Line Climate Change Investing Service, and The Value Line Information You Should Know Wealth Newsletter) provide information on a less comprehensive basis for securities that the Company believes will be of particular interest to subscribers and may include topics of interest on markets and the business environment.
Below is a listing of the DataFile products: 8 Fundamental DataFile I and II Value Line ’ s Fundamental DataFile I contains fundamental data (both current and historical) on more than 5,500 publicly traded companies that follow U.S. generally accepted accounting principles (“GAAP”).
Below is a listing of the DataFile products: Fundamental DataFile I and II The Value Line Fundamental DataFile I contains fundamental data (both current and historical) on nearly 5,500 publicly traded companies that follow U.S. generally accepted accounting principles (“GAAP”).
The Value Line Pro Equity Research Center is an equities-only package that includes access to exclusive premium services and provides online access to all of Value Line’s equity products.
Print capabilities are included. The Value Line Pro Equity Research Center is an equities-only package that includes access to exclusive premium services and provides online access to all of Value Line’s equity products.
The Value Line Daily Options Survey The Value Line Daily Options Survey is a daily digital service that evaluates and ranks approximately 500,000 U.S. equity and equity index options. Features include an interactive database, spreadsheet tools, and a weekly email newsletter. This product is only offered as an online subscription.
This publication was introduced in 1951. 6 The Value Line Daily Options Survey The Value Line Daily Options Survey is a daily digital service that evaluates and ranks approximately 600,000 U.S. equity and equity index options. Features include an interactive database, spreadsheet tools, and a weekly email newsletter. This product is only offered as an online subscription.
The Company is the successor to substantially all of the operations of Arnold Bernhard & Co, Inc. ("AB&Co."). AB&Co. is the controlling shareholder of the Company and, as of April 30, 2022, owns 90.79% of the outstanding shares of the common stock of the Company. A.
The Company is the successor to substantially all of the operations of Arnold Bernhard & Co, Inc. ("AB&Co."). AB&Co. is the controlling shareholder of the Company and, as of April 30, 2023, owns 91.51% of the outstanding shares of the common stock of the Company. A.
The Value Line Special Situations Service The Value Line Special Situations Service ’s core focus is on smaller companies whose equity securities are perceived by Value Line’s analysts as having exceptional appreciation potential. This publication was introduced in 1951.
The Value Line Special Situations Service The Value Line Special Situations Service ’s core focus is on smaller companies whose equity securities are perceived by Value Line’s analysts as having exceptional appreciation potential.
For our library subscribers, the Research Center also includes the Value Line Climate Change Investing Service. Users can screen more than 250 data fields, create graphs using multiple different variables, and access technical history. The Value Line Research Center has the ability to track model portfolios (large, small and mid-cap) as well as providing ranks and news.
Users can screen more than 250 data fields, create graphs using multiple different variables, and access technical history. Value Line Library Research Center has the ability to track model portfolios (large, small and mid-cap) as well as providing ranks and news.
Value Line Pro Basic digital service has coverage on stocks that comprise over 90% of the value of all stocks that trade on U.S. exchanges included in The Value Line Investment Survey ®, drawn from 100 industries,. There are over 200 data fields that can be screened to help make informed decisions.
The Value Line Investment Survey – Library Basic has coverage on stocks that comprise over 90% of the value of all stocks that trade on U.S. exchanges included in The Value Line Investment Survey , drawn from nearly 100 industries. There are over 200 data fields that can be applied to help you make more informed decisions.
Estimates are for the current year and next year, while projections encompass the three to five year period. Mutual Fund DataFile The Value Line Mutual Fund DataFile covers approximately 20,000 mutual funds with up to 20 years of historical data with more than 200 data fields.
Data includes earnings, sales, cash flow, book value, margin, and other popular fields. Estimates are for the current year and next year, while projections encompass the three to five year period. Mutual Fund DataFile The Value Line Mutual Fund DataFile covers approximately 20,000 mutual funds with up to 20 years of historical data with more than 200 data fields.
Pro Elite service package aimed at professional industry includes digital access to full page reports and Value Line proprietary ranks on stocks representing 95% of daily U.S. trading volume. In addition, our database of mostly microcap firms adds more than 2,000 additional names. Five years’ history is included. Online tools include a screener, alerts, watch-lists and charting.
Pro Elite service package aimed at professional industry includes digital access to full page reports and Value Line proprietary ranks. In addition, our database of mostly microcap firms adds more than 2,000 additional names. Five years’ history is included. Online tools include a screener, alerts, watch-lists and charting. Downloading and print capabilities are included.
All of these quantitative investment products have a solid theoretical foundation and have demonstrated superior empirical results. These strategies are available for licensing by Financial Professionals such as RIAs and Portfolio Managers. All the digital services have Charting features, including many options to chart against popular indexes with the ability to save settings and print.
These strategies are available for licensing by Financial Professionals such as RIAs and Portfolio Managers. All the digital services have Charting features, including many options to chart against popular indexes with the ability to save settings and print.
Value Line Publishing LLC (“VLP”) is the publishing unit for the investment related periodical publications and copyrights. 2. Vanderbilt Advertising Agency, Inc. places advertising on behalf of the Company's publications. 3. Value Line Distribution Center, Inc. (“VLDC”) provides subscription fulfillment services and subscriber relations services for Value Line’s publications and continues to distribute Value Line’s print publications. E.
Value Line Publishing LLC (“VLP”) is the publishing unit for the investment related periodical publications and copyrights. 2. Vanderbilt Advertising Agency, Inc. places advertising on behalf of the Company's publications. 3. Value Line Distribution Center, Inc. (“VLDC”) distributes Value Line’s print publications. 12 E.
As of April 30, 2022 and April 30, 2021, the Company held fixed income securities classified as available-for-sale, that consist of securities issued by federal, state and local governments within the United States. G. Employees At April 30, 2022, the Company and its subsidiaries employed 140 people.
As of April 30, 2023 and April 30, 2022, the Company held fixed income securities classified as available-for-sale, that consist of securities issued by United States federal government and bank certificates of deposit within the United States. G. Employees At April 30, 2023, the Company and its subsidiaries employed 138 people.
Total assets in the Value Line Funds managed and/or distributed by EAM at April 30, 2022, were $3.36 billion, which is $1.6 billion, or 32.4%, below total assets of $4.96 billion in the Value Line Funds managed and/or distributed by EAM at April 30, 2021.
Total assets in the Value Line Funds managed and/or distributed by EAM at April 30, 2023, were $3.09 billion, which is $0.27 billion, or 8.0%, below total assets of $3.36 billion in the Value Line Funds managed and/or distributed by EAM at April 30, 2022.
There are over 250 data fields that can be screened to help make informed decisions. Features of the service include three years of historical reports and data, customizable modules, alerts and screening.
There are over 250 data fields that can be screened to help make informed decisions. Features of the service include three years of historical reports and data, customizable modules, alerts and screening. Value Line Pro Basic digital service has coverage on stocks drawn from 100 industries.
The 400 stocks of the Small & Mid-Cap universe selected for inclusion in the print component of the service are those of most importance to subscribers and are mailed to subscribers in updated monthly groups of approximately 130 each. This provides coverage of each of the 400 stocks once per quarter.
The 400 stocks of the Small & Mid-Cap universe selected for inclusion in the print component of the service are those of most importance to subscribers and are mailed to subscribers in updated monthly groups. Each stock is covered 4 times per year – once per quarterly cycle.
Print capabilities are included. 9 Value Line Pro Premium digital service includes The Value Line Investment Survey ® and The Value Line Investment Survey ® — Small & Mid-Cap . This equity package monitors companies with market values ranging from $100 million to well over $1 trillion, across nearly 100 industries, representing 95% of daily U.S. trading volume.
Print capabilities are included. Value Line Pro Premium digital service includes The Value Line Investment Survey ® and The Value Line Investment Survey ® — Small & Mid-Cap . This equity package monitors more than 3,300 companies with market values ranging from less than $1 billion to nearly $3 trillion across 100 industries.
Principal Business Segments The information with respect to revenues from external customers and profit and loss of the Company's identifiable principal business segments is incorporated herein by reference to Note 18 of the Notes to the Company's Consolidated Financial Statements included in this Form 10-K. 13 The investment periodicals and related publications (retail and institutional) and Value Line copyrights and Value Line Proprietary Ranks and other proprietary information, consolidated into one segment called Publishing.
Principal Business Segments The information with respect to revenues from external customers and profit and loss of the Company's identifiable principal business segments is incorporated herein by reference to Note 18 of the Notes to the Company's Consolidated Financial Statements included in this Form 10-K.
This publication, designed for the climate-conscious, profit-oriented investor, seeks to provide key climate news alongside a managed portfolio of twenty stocks, chosen by our analysts, which stand to benefit from responses to climate change.
New recommendations are then added to the M&A Model Portfolio. The Value Line Climate Change Investing Service This monthly service was introduced in April 2021. This publication, designed for the climate-conscious, profit-oriented investor, seeks to provide key climate news alongside a managed portfolio of twenty stocks, chosen by our analysts, which stand to benefit from responses to climate change.
The remaining two highlight mutual funds and ETFs globally. The Value Line Fund Advisor Plus contains data on approximately 20,000 no-load and low-load funds and a digital screener.
One recommends specific U.S. mutual funds from different objective groups, while the other highlights similar exchange traded funds (ETFs). The remaining two highlight mutual funds and ETFs globally. The Value Line Fund Advisor Plus contains data on approximately 20,000 no-load and low-load funds and a digital screener.
Features of the service include three years of historical reports and data, customizable modules, alerts and screening. Value Line Pro Elite digital service includes The Value Line Investment Survey ® and The Value Line Investment Survey ® — Small & Mid-Cap.
There are over 200 data fields that can be screened to help make informed decisions. Features of the service include three years of historical reports and data, customizable modules, alerts and screening. 9 Value Line Pro Elite digital service includes The Value Line Investment Survey ® and The Value Line Investment Survey ® — Small & Mid-Cap.
The Fundamental DataFile has over 400 annual and over 80 quarterly fields for each of the companies included in the database. DataFile is sold primarily to the institutional and academic markets. Value Line also offers a scaled down DataFile product, Fundamental DataFile II , which includes a limited set of historical fundamental data.
The Fundamental DataFile has over 400 annual and over 80 quarterly fields for each of the companies included in the database. DataFile is sold primarily to the institutional and academic markets.
The selection process utilizes an industry approach, with the same data-focused analysis that is the hallmark of Value Line. The New Value Line ETFs Service In September 2019, we introduced The New Value Line ETFs Service . This online-only product provides data, analysis, and screening capabilities on more than 2,700 publicly traded ETFs.
The New Value Line ETFs Service In September 2019, we introduced The New Value Line ETFs Service . This online-only, web based analysis software provides data, analysis, and screening capabilities on more than 2,700 publicly traded ETFs.
Total net assets of the Value Line Funds at April 30, 2022, were: ($ in thousands) Value Line Asset Allocation Fund $ 1,272,552 Value Line Capital Appreciation Fund 516,143 Value Line Mid Cap Focused Fund 430,815 Value Line Small Cap Opportunities Fund 419,373 Value Line Select Growth Fund 401,478 Value Line Larger Companies Focused Fund 272,529 Value Line Core Bond Fund 44,736 Total EAM managed net assets $ 3,357,626 12 Investment management fees and distribution service fees (“12b-1 fees”) vary among the Value Line Funds and may be subject to certain limitations.
Total net assets of the Value Line Funds at April 30, 2023, were: ($ in thousands) Value Line Asset Allocation Fund $ 937,202 Value Line Capital Appreciation Fund 406,868 Value Line Mid Cap Focused Fund 695,794 Value Line Small Cap Opportunities Fund 408,656 Value Line Select Growth Fund 366,324 Value Line Larger Companies Focused Fund 236,706 Value Line Core Bond Fund 41,104 Total EAM managed net assets $ 3,092,654 Investment management fees and distribution service fees (“12b-1 fees”) vary among the Value Line Funds and may be subject to certain limitations.
The Publishing segment constitutes the Company’s only reportable business segment. I. Competition The investment information and publishing business conducted by the Company and the investment management business conducted by EAM are very competitive. There are many competing firms and a wide variety of product offerings.
Competition The investment information and publishing business conducted by the Company and the investment management business conducted by EAM are very competitive. There are many competing firms and a wide variety of product offerings. Some of the firms in these industries are substantially larger and have greater financial resources than the Company and EAM.
Value Line Select: Dividend Income and Growth is available online and in print. Value Line Select: ETFs In May 2017, we launched Value Line Select: ETFs , a monthly ETF selection service. This product focuses on ETFs that appear poised to outperform the broader market.
Value Line Select: ETFs In May 2017, we launched Value Line Select: ETFs , a monthly ETF selection service. This product focuses on ETFs that appear poised to outperform the broader market. The selection process utilizes an industry approach, with the same data-focused analysis that is the hallmark of Value Line.
Value Line Investment Analyzer Professional is a more comprehensive product which covers some 5,500 stocks and allows subscribers to create both standardized and customized screens. Value Line DataFile Products For our institutional customers, Value Line offers both current and historical data for equities, mutual funds and exchange traded funds (“ETFs”). Value Line DataFile products are offered via an FTP site.
Value Line DataFile Products For our institutional customers, Value Line offers both current and historical data for equities, mutual funds and exchange traded funds (“ETFs”). Value Line DataFile products are offered via an FTP site.
Users can screen more than 250 data fields, create graphs using multiple different variables, and access technical history.
For our library subscribers, the Research Center also includes the Value Line Climate Change Investing Service. Users can screen more than 250 data fields, create graphs using multiple different variables, and access technical history.
Included with this product is online access to Value Line’s database of approximately 20,000 mutual funds, including screening tools and full-page printable reports on each fund. Four model portfolios are also part of the service. One recommends specific U.S. mutual funds from different objective groups, while the other highlights similar exchange traded funds (ETFs).
A full statistical review, including latest performance, ranks, and sector weightings, is updated each month on approximately 800 leading load, no-load and low-load funds. Included with this product is online access to Value Line’s database of approximately 20,000 mutual funds, including screening tools and full-page printable reports on each fund. Four model portfolios are also part of the service.
Some of the firms in these industries are substantially larger and have greater financial resources than the Company and EAM. The Internet continues to increase the amount of competition in the form of free and paid online investment research.
The Internet continues to increase the amount of competition in the form of free and paid online investment research.
Each issue offers strategies for maximizing total return, and highlights of specific mutual funds. It also includes information about retirement planning and industry news. A full statistical review, including latest performance, ranks, and sector weightings, is updated each month on approximately 800 leading load, no-load and low-load funds.
It is the system utilized in the Fund Advisor Plus, featuring load, no-load, and low-load open-end mutual funds. Each issue offers strategies for maximizing total return, and highlights of specific mutual funds. It also includes information about retirement planning and industry news.
Value Line Library Research Center has the ability to track model portfolios (large, small and mid-cap) as well as providing ranks and news. 10 Quantitative Strategies Value Line Quantitative Strategy Portfolios are developed based on our renowned proprietary Ranking Systems for TimelinessTM, Performance and SafetyTM, Financial Strength Ratings, and a comprehensive database of fundamental research and analysis.
Quantitative Strategies Value Line Quantitative Strategy Portfolios are developed based on our renowned proprietary Ranking Systems for TimelinessTM, Performance and SafetyTM, Financial Strength Ratings, and a comprehensive database of fundamental research and analysis. All of these quantitative investment products have a solid theoretical foundation and have demonstrated superior empirical results.
Estimates and Projections DataFile This DataFile offering contains the proprietary estimates and projections from Value Line analysts on companies that account for more than 90% of the value of all stocks traded on U.S. exchanges. Data includes earnings, sales, cash flow, book value, margin, and other popular fields.
Value Line also offers a scaled down DataFile product, Fundamental DataFile II , which includes a limited set of historical fundamental data. 8 Estimates and Projections DataFile This DataFile offering contains the proprietary estimates and projections from Value Line analysts on a wide range of the stocks traded on U.S. exchanges.
Value Line Investment Analyzer allows subscribers to apply numerous charting and graphing variables for comparative research. In addition to containing digital replicas of the entire Value Line Investment Survey , the Value Line Investment Analyzer includes 20-minute delayed data updates through its integration with the Value Line databases via the Internet.
Value Line Investment Analyzer allows subscribers to apply numerous charting and graphing variables for comparative research, and is integrated with the Value Line databases via the Internet. Value Line Investment Analyzer Professional is a more comprehensive product which covers nearly 5,500 stocks and allows subscribers to create customized screens.
Each stock is covered 4 times per year – once per quarterly cycle. The Digital component of the service remains unchanged -- updated weekly with the complete stock coverage universe available for review.
The Digital component of the service remains unchanged -- updated weekly with the complete stock coverage universe available for review. The Performance Rank is designed to predict relative price performance over the next six to twelve months. The Value Line Fund Advisor Plus The Value Line Mutual Fund Ranking System was introduced in 1993.
Removed
A fifth model portfolio, the Aggressive Growth portfolio, is included in the weekly “ Ratings & Reports ”, as well as in the weekly subscriber-only email newsletter.
Added
EAM has elected to be taxed as a pass-through entity similar to a partnership.
Removed
The Performance Rank is based on facts, such as earnings growth and price momentum, and is designed to predict relative price performance over the next six to twelve months.
Added
The investment periodicals and related publications (retail and institutional) and Value Line copyrights and Value Line Proprietary Ranks and other proprietary information, consolidated into one segment called Publishing. The Publishing segment constitutes the Company’s only reportable business segment. I.
Removed
The principal differences between the Small and Mid-Cap Survey and The Value Line Investment Survey are that the Small and Mid-Cap Survey does not include Value Line’s Timeliness Ranks and price targets, financial forecasts, analyst commentary, or a Selection & Opinion section.
Removed
These modifications allow VLP to offer this service at a lower price. 6 The Value Line Fund Advisor Plus The Value Line Mutual Fund Ranking System was introduced in 1993. It is the system utilized in the Fund Advisor Plus product , a 48-page newsletter featuring load, no-load, and low-load open-end mutual funds.
Removed
New recommendations are then added to the M&A Model Portfolio. Each month, the service provides updates on all previous recommendations, until we suggest that subscribers sell their shares. The Value Line Climate Change Investing Service This monthly service was introduced in April 2021.
Removed
Downloading and print capabilities are included. The Value Line Investment Survey – Library Basic has coverage on stocks that comprise over 90% of the value of all stocks that trade on U.S. exchanges included in The Value Line Investment Survey , drawn from nearly 100 industries.
Removed
The Value Line Investment Survey – Library Elite offers libraries digital access to full reports, analyst commentary and Value Line proprietary ranks on stocks representing 95% of daily U.S. trading volume, along with one year of fully-detailed history. Online tools include a screener, and charting. Print capabilities are included.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

2 edited+1 added−0 removed52 unchanged
Biggest changePoor performance could therefore reduce the amount of cash flow that the Company receives from EAM, which reduction could adversely affect the Company’s financial condition. EAM derives all of its investment management fees from the Value Line Funds. EAM is dependent upon management contracts and service and distribution contracts with the Value Line Funds under which these fees are paid.
Biggest changePoor performance could therefore reduce the amount of cash flow that the Company receives from EAM, which reduction could adversely affect the Company’s financial condition. EAM derives nearly all of its investment management fees from the Value Line Funds.
Our controlling stockholder exercises voting control over the Company and has the ability to elect or remove from office all of our directors. As of April 30, 2022, AB&Co., Inc. beneficially owned 90.79% of the outstanding shares of the Company’s voting stock.
Our controlling stockholder exercises voting control over the Company and has the ability to elect or remove from office all of our directors. As of April 30, 2023, AB&Co., Inc. beneficially owned 91.51% of the outstanding shares of the Company’s voting stock.
Added
EAM is dependent upon management contracts and service and distribution contracts with the Value Line Funds under which these fees are paid.

Item 2. Properties

Properties — owned and leased real estate

2 edited+0 added−0 removed8 unchanged
Biggest changeThe Company provided a security deposit represented by a letter of credit in the amount of $469,000 in October 2016, was reduced to $305,000 on September 30, 2021 and is to be fully refunded after the sublease ends. This Building became the Company’s new corporate office facility.
Biggest changeThe 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 September 30, 2021 and is to be fully refunded after the sublease ends. This Building became the Company’s new corporate office facility.
Pursuant to the agreement Value Line leased from ABM 24,726 square feet sof 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.
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.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

6 edited+0 added−1 removed4 unchanged
Biggest changeThe reported high and low prices and the dividends declared on these shares during the past two fiscal years were as follows: Quarter Ended High Low Regular Dividend Declared Per Share April 30, 2022 $91.72 $52.61 $0.25 January 31, 2022 $61.79 $33.46 $0.22 October 31, 2021 $39.51 $30.44 $0.22 July 31, 2021 $33.77 $28.60 $0.22 April 30, 2021 $33.00 $26.53 $0.22 January 31, 2021 $35.95 $25.40 $0.21 October 31, 2020 $31.80 $23.76 $0.21 July 31, 2020 $34.00 $20.46 $0.21 On July 22, 2022, the Board of Directors of Value Line declared a quarterly dividend of $0.25 per share to shareholders of record as of August 1, 2022 to be paid on August 11, 2022.
Biggest changeThe reported high and low prices and the dividends declared on these shares during the past two fiscal years were as follows: Quarter Ended High Low Regular Dividend Declared Per Share April 30, 2023 $ 53.77 $ 45.00 $ 0.28 January 31, 2023 $ 69.85 $ 42.02 $ 0.25 October 31, 2022 $ 118.40 $ 42.52 $ 0.25 July 31, 2022 $ 92.00 $ 52.55 $ 0.25 April 30, 2022 $ 91.72 $ 52.61 $ 0.25 January 31, 2022 $ 61.79 $ 33.46 $ 0.22 October 31, 2021 $ 39.51 $ 30.44 $ 0.22 July 31, 2021 $ 33.77 $ 28.60 $ 0.22 On July 21, 2023, the Board of Directors of Value Line declared a quarterly dividend of $0.28 per share to shareholders of record as of July 31, 2023 to be paid on August 10, 2023.
The Company did not sell any unregistered shares of common stock during the fiscal year ended April 30, 2022. 19 Purchases of Equity Securities by the Company The following table provides information with respect to all repurchases of common stock made by or on behalf of the Company during the fiscal quarter ended April 30, 2022.
The Company did not sell any unregistered shares of common stock during the fiscal year ended April 30, 2023. 19 Purchases of Equity Securities by the Company The following table provides information with respect to all repurchases of common stock made by or on behalf of the Company during the fiscal quarter ended April 30, 2023.
The repurchases may be made from time to time on the open market at prevailing market prices, in negotiated transactions off the market, in block purchases or otherwise. The repurchase program may be suspended or discontinued at any time at the Company’s discretion and has no set price limit and no expiration date.
The repurchases may be made from time to time on the open market at prevailing market prices, in negotiated transactions off the market, in block purchases or otherwise. The repurchase program may be suspended or discontinued at any time at the Company’s discretion and has no set expiration date.
Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. The Registrant's Common Stock is traded on NASDAQ under the symbol “VALU”. The approximate number of record holders of the Registrant's Common Stock at April 30, 2022 was 30. As of April 29, 2022, the closing stock price was $65.47.
Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. The Registrant's Common Stock is traded on NASDAQ under the symbol “VALU”. The approximate number of record holders of the Registrant's Common Stock at April 30, 2023 was 32. As of April 28, 2023, the closing stock price was $45.80.
ISSUER PURCHASES OF EQUITY SECURITIES Period (a) Total Number of Shares (or Units) Purchased (b) Average Price Paid per Share (or Unit) (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (1) February 1, 2022 through February 28, 2022 7,000 $ 57.62 7,000 $ 438,000 March 1, 2022 through March 31, 2022 435 67.74 435 1,970,000 April 1, 2022 through April 30, 2022 11,885 61.35 11,885 1,241,000 Total 19,320 $ 60.14 19,320 $ 1,241,000 (1) On March 14, 2022, the Company's Board of Directors approved a renewal of a share repurchase program authorizing the repurchase of shares of the Company’s common stock up to an aggregate purchase price of $2,000,000.
ISSUER PURCHASES OF EQUITY SECURITIES Period (a) Total Number of Shares (or Units) Purchased (b) Average Price Paid per Share (or Unit) (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (1) February 1, 2023 through February 28, 2023 3,050 $ 51.07 3,050 $ 1,795,000 March 1, 2023 through March 31, 2023 1,009 48.20 1,009 1,746,000 April 1, 2023 through April 30, 2023 263 46.48 263 1,734,000 Total 4,322 $ 50.12 4,322 $ 1,734,000 On October 21, 2022, the Company's Board of Directors approved a share repurchase program authorizing the repurchase of shares of the Company’s common stock up to an aggregate purchase price of $3,000,000.
During fiscal 2021, the Company repurchased an aggregate of 53,551 shares of the Company's common stock for $1,526,000 at an average price of $28.50 per share. During fiscal 2020, the Company repurchased an aggregate of 46,840 shares of the Company's common stock for $1,214,000 at an average price of $25.91 per share.
During fiscal 2023, the Company repurchased an aggregate 75,303 shares of the Company's common stock for $4,704,000 at an average price of $62.47 per share including a repurchase of an aggregate 23,665 shares of the Company's common stock for $1,266,000 at an average price of $53.50 per share under the repurchase program authorized on October 21, 2022.
Removed
(2) On May 31, 2022, the Company's Board of Directors approved a renewal of a share repurchase program authorizing the repurchase of shares of the Company’s common stock up to an aggregate purchase price of $3,000,000.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

67 edited+27 added−18 removed69 unchanged
Biggest changeThe applicable recent non-voting revenues interest percentage for the fourth quarter of fiscal 2022 was 54.0%. 28 The Company recorded income from its non-voting revenues interest and its non-voting profits interest in EAM as follows: Fiscal Years Ended April 30, Change ($ in thousands) 2022 2021 2020 '22 vs. '21 '21 vs. '20 Non-voting revenues interest $ 15,899 $ 15,190 $ 11,184 4.7 % 35.8 % Non-voting profits interest 2,142 2,131 1,166 0.5 % 82.8 % $ 18,041 $ 17,321 $ 12,350 4.2 % 40.3 % Operating expenses Fiscal Years Ended April 30, Change ($ in thousands) 2022 2021 2020 '22 vs. '21 '21 vs. '20 Advertising and promotion $ 3,223 $ 3,745 $ 3,350 -13.9 % 11.8 % Salaries and employee benefits 17,323 18,865 18,189 -8.2 % 3.7 % Production and distribution 5,003 5,440 4,945 -8.0 % 10.0 % Office and administration 4,176 4,807 4,725 -13.1 % 1.7 % Total expenses $ 29,725 $ 32,857 $ 31,209 -9.5 % 5.3 % Expenses within the Company are categorized into advertising and promotion, salaries and employee benefits, production and distribution, office and administration.
Biggest changeEAM - 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. 29 The Company recorded income from its non-voting revenues interest and its non-voting profits interest in EAM as follows: Fiscal Years Ended April 30, Change ($ in thousands) 2023 2022 2021 '23 vs. '22 '22 vs. '21 Non-voting revenues interest $ 10,397 $ 15,899 $ 15,190 -34.6 % 4.7 % Non-voting profits interest 734 2,142 2,131 -65.7 % 0.5 % $ 11,131 $ 18,041 $ 17,321 -38.3 % 4.2 % Operating expenses Fiscal Years Ended April 30, Change ($ in thousands) 2023 2022 2021 '23 vs. '22 '22 vs. '21 Advertising and promotion $ 3,049 $ 3,223 $ 3,745 -5.4 % -13.9 % Salaries and employee benefits 15,203 17,323 18,865 -12.2 % -8.2 % Production and distribution 5,210 5,003 5,440 4.1 % -8.0 % Office and administration 4,763 4,176 4,807 14.1 % -13.1 % Total expenses $ 28,225 $ 29,725 $ 32,857 -5.0 % -9.5 % Expenses within the Company are categorized into advertising and promotion, salaries and employee benefits, production and distribution, office and administration.
Investment periodicals and related publications revenues Investment periodicals and related publications revenues of $27,145,000 (excluding copyright fees) during the twelve months ended April 30, 2022 were 1.8% below publishing revenues of $27,629,000, which included an extra week of servings for the weekly print products during the twelve months ended April 30, 2021, (decreased 1.1% excluding the extra week of print products servings), as compared to the prior fiscal year.
Investment periodicals and related publications revenues of $27,145,000 (excluding copyright fees) during the twelve months ended April 30, 2022 were 1.8% below publishing revenues of $27,629,000, which included an extra week of servings for the weekly print products during the twelve months ended April 30, 2021, (decreased 1.1% excluding the extra week of print products servings), as compared to the prior fiscal year.
Copyright fees During the twelve months ended April 30, 2022, copyright fees of $13,380,000 were 4.8% above those during the corresponding period in the prior fiscal year. During the twelve months ended April 30, 2021, copyright fees of $12,763,000 were 0.7% above those during the corresponding period in the prior fiscal year.
During the twelve months ended April 30, 2022, copyright fees of $13,380,000 were 4.8% above those during the corresponding period in the prior fiscal year. During the twelve months ended April 30, 2021, copyright fees of $12,763,000 were 0.7% above those during the corresponding period in the prior fiscal year.
Salaries and employee benefits During the twelve months ended April 30, 2022, salaries and employee benefits of $17,323,000 decreased 8.2% below the prior fiscal year, primarily due to decreases in salaries and employee benefits resulting from a reduced employee headcount in fiscal year 2022 along with a decrease in Profit Sharing employee benefits expense.
During the twelve months ended April 30, 2022, salaries and employee benefits of $17,323,000 decreased 8.2% below the prior fiscal year, primarily due to decreases in salaries and employee benefits resulting from a reduced employee headcount in fiscal year 2022 along with a decrease in Profit Sharing employee benefits expense.
Production and distribution During the twelve months ended April 30, 2022, production and distribution expenses of $5,003,000 decreased 8.0% below the prior fiscal year, primarily due to decreases in service mailers and distribution expenses and a decrease in production support of the Company’s website, maintenance of the Company’s publishing and application software and operating systems.
During the twelve months ended April 30, 2022, production and distribution expenses of $5,003,000 decreased 8.0% below the prior fiscal year, primarily due to decreases in service mailers and distribution expenses and a decrease in production support of the Company’s website, maintenance of the Company’s publishing and application software and operating systems.
Actual results may differ from these estimates under different assumptions or conditions. The Company believes the following critical accounting policies reflect the significant judgments and estimates used in the preparation of its Consolidated Financial Statements: ● Valuation of EAM 34 Investment in EAM Trust The Company accounts for its investment in EAM using the equity method of accounting.
Actual results may differ from these estimates under different assumptions or conditions. The Company believes the following critical accounting policies reflect the significant judgments and estimates used in the preparation of its Consolidated Financial Statements: ● Valuation of EAM Investment in EAM Trust The Company accounts for its investment in EAM using the equity method of accounting.
During the twelve months ended April 30, 2022, Institutional Sales department generated total sales orders of $13,853,000 and the retail telemarketing sales team generated total sales orders of $8,292,000. Total print circulation at April 30, 2022 was 7.6% below the total print circulation at April 30, 2021.
During the twelve months ended April 30, 2022, Institutional Sales department generated total sales orders of $13,853,000 and the retail telemarketing sales team generated total sales orders of $8,292,000. 26 Total print circulation at April 30, 2022 was 7.6% below the total print circulation at April 30, 2021.
During the twelve months ended April 30, 2021, salaries and employee benefits of $18,865,000 increased 3.7% above the prior fiscal year. The increase during the twelve months ended April 30, 2021, was primarily due to increases in Profit Sharing employee benefits expense during fiscal 2021 and increases in salaries and employee benefits.
During the twelve months ended April 30, 2021, salaries and employee benefits of $18,865,000 increased 3.7% above the prior fiscal year. The increase during the twelve months ended April 30, 2021, was primarily due to increases in Profit Sharing employee benefits during fiscal 2021 and increases in salaries and employee benefits.
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. 33 Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, “Income Taxes (Topic740): Simplifying the Accounting for Income Taxes” as part of its initiative to reduce complexity in the accounting standards.
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. 34 Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, “Income Taxes (Topic740): Simplifying the Accounting for Income Taxes” as part of its initiative to reduce complexity in the accounting standards.
Value Line Funds experienced net redemptions and the associated net asset outflows (redemptions less new sales) in fiscal 2022 and fiscal 2021. 26 The following table shows the change in assets for the past three fiscal years including sales (inflows), redemptions (outflows), dividends and capital gain distributions, and market value changes.
Value Line Funds experienced net redemptions and the associated net asset outflows (redemptions less new sales) in fiscal 2023 and fiscal 2022. 27 The following table shows the change in assets for the past three fiscal years including sales (inflows), redemptions (outflows), dividends and capital gain distributions, and market value changes.
During the twelve months ended April 30, 2021, advertising and promotion expenses of $3,745,000 increased 11.8% as compared to the prior fiscal year. During the twelve months ended April 30, 2021, increases were primarily due to advertising expenses and institutional sales promotion. Total sales commissions increased by $110,000 during the twelve months ended April 30, 2021.
Total sales commissions decreased 8% during the twelve months ended April 30, 2022. 30 During the twelve months ended April 30, 2021, advertising and promotion expenses of $3,745,000 increased 11.8% as compared to the prior fiscal year. During the twelve months ended April 30, 2021, increases were primarily due to advertising expenses and institutional sales promotion.
The decrease in the effective tax rate during for the twelve months ended April 30, 2022 as compared to April 30, 2021, is primarily a result of the non-taxable revenue derived from forgiveness of the PPP loan by the SBA offset by an increase in the state and local income taxes from 2.05% to 3.12% as a result of changes in state and local income tax allocation factors, on deferred taxes in fiscal 2022.
The increase in the effective tax rate during for the twelve months ended April 30, 2023 as compared to April 30, 2022, is primarily a result of the non-taxable revenue derived from forgiveness of the PPP loan by the SBA offset by an increase in the state and local income taxes from 3.12% to 3.25% as a result of changes in state and local income tax allocation factors, on deferred taxes in fiscal 2023.
During the twelve months ended April 30, 2021, 31.6% of total publishing revenues of $40,392,000 were derived from a single customer. During the twelve months ended April 30, 2020, 31.4% of total publishing revenues of $40,299,000 were derived from a single customer.
During the twelve months ended April 30, 2021, 31.6% of total publishing revenues of $40,392,000 were derived from a single customer.
Inflows for sales, and outflows for redemptions reflect decisions of individual investors and/or their investment advisors. The table also illustrates the assets within the Value Line Funds broken down into equity funds, variable annuity funds and fixed income funds as of April 30, 2022, 2021 and 2020.
Inflows for sales, and outflows for redemptions reflect decisions of individual investors and/or their investment advisors. The table also illustrates the assets within the Value Line Funds broken down into equity funds, variable annuity funds (prior to fiscal 2023) and fixed income funds as of April 30, 2023, 2022 and 2021.
Office and administration During the twelve months ended April 30, 2022, office and administrative expenses of $4,176,000 decreased 13.1% below the prior fiscal year, primarily due to a reversal of selected settlement reserves and favorable settlement of a disputed fee with a contractor and decreases in outside data processing (communication, server hosting backup, antivirus software).
During the twelve months ended April 30, 2022, office and administrative expenses of $4,176,000 decreased 13.1% below the prior fiscal year, primarily due to a reversal of selected settlement reserves and favorable settlement of a disputed fee with a contractor and decreases in outside data processing (communication, server hosting backup, antivirus software). 31 During the twelve months ended April 30, 2021, office and administrative expenses of $4,807,000 increased 1.7% above the prior fiscal year.
The decrease in net assets was primarily due to fund shareholder redemptions, closing of two variable annuity funds, and significant market declines.
The decrease in net assets was primarily due to fund shareholder redemptions and closing of two variable annuity funds.
There were no capital gain distributions from ETFs in fiscal 2021 or fiscal 2020. Effective income tax rate The overall effective income tax rates, as a percentage of pre-tax ordinary income for the twelve months ended April 30, 2022, April 30, 2021 and April 30, 2020 were 22.25%, 23.11% and 27.64%, respectively.
There were no capital gain distributions from ETFs in fiscal 2022 or fiscal 2021. Effective income tax rate The overall effective income tax rates, as a percentage of pre-tax ordinary income for the twelve months ended April 30, 2023, April 30, 2022 and April 30, 2021 were 24.00%, 22.25% and 23.11%, respectively.
There were no capital gain distributions from ETFs in fiscal 2022 or fiscal 2021.
There were no capital gain distributions from ETFs in fiscal 2023 or fiscal 2022.
During fiscal 2020, the Company applied for and received an SBA loan under the Paycheck Protection Program in the amount of $2,331,000. The obligation to repay the SBA loan under the Paycheck Protection Program was forgiven during fiscal 2022. Quarterly regular dividend payments of $0.22 per share during fiscal 2022 aggregated $8,405,000.
During fiscal 2020, the Company applied for and received an SBA loan under the Paycheck Protection Program in the amount of $2,331,000. The obligation to repay the SBA loan under the Paycheck Protection Program was forgiven during fiscal 2022. Quarterly regular dividend payments of $0.25 per share during fiscal 2023 aggregated $9,471,000.
Cash from operating activities The Company had cash inflows from operating activities of $24,646,000 during the twelve months ended April 30, 2022, compared to cash inflows from operations of $16,410,000 and $13,745,000 during the twelve months ended April 30, 2021 and 2020, respectively.
Cash from operating activities The Company had cash inflows from operating activities of $18,178,000 during the twelve months ended April 30, 2023, compared to cash inflows from operations of $24,646,000 and $16,410,000 during the twelve months ended April 30, 2022 and 2021, respectively.
Cash from investing activities The Company’s cash outflows from investing activities of $3,389,000 during the twelve months ended April 30, 2022, compared to cash inflows from investing activities of $7,381,000 and cash outflows of $8,657,000 for the twelve months ended April 30, 2021 and April 30, 2020, respectively.
Cash from investing activities The Company’s cash outflows from investing activities of $26,116,000 during the twelve months ended April 30, 2023, compared to cash outflows from investing activities of $3,389,000 and cash inflows of $7,381,000 for the twelve months ended April 30, 2022 and April 30, 2021, respectively.
Cash from financing activities During the twelve months ended April 30, 2022, the Company’s cash outflows from financing activities were $10,889,000 and compared to cash outflows from financing activities of $9,574,000 and $6,627,000 for the twelve months ended April 30, 2021 and 2020, respectively.
Cash from financing activities During the twelve months ended April 30, 2023, the Company’s cash outflows from financing activities were $14,175,000 and compared to cash outflows from financing activities of $10,889,000 and $9,574,000 for the twelve months ended April 30, 2022 and 2021, respectively.
Management does not anticipate making any additional borrowings during the next twelve months. As of April 30, 2022, retained earnings and liquid assets were $87,645,000 and $57,825,000, respectively. As of April 30, 2021, retained earnings and liquid assets were $72,502,000 and $45,353,000, respectively. Seasonality Our publishing revenues are comprised of subscriptions which are generally annual subscriptions.
Management does not anticipate making any additional borrowings during the next twelve months. As of April 30, 2023, retained earnings and liquid assets were $95,979,000 and $62,064,000, respectively. As of April 30, 2022, retained earnings and liquid assets were $87,645,000 and $57,825,000, respectively. Seasonality Our publishing revenues are comprised of subscriptions which are generally annual subscriptions.
Cash and short-term securities were $57,825,000 and $45,353,000 as of April 30, 2022 and April 30, 2021, respectively. 32 The Company’s cash and cash equivalents include $28,965,000 and $18,209,000 at April 30, 2022 and April 30, 2021, 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 and short-term securities were $62,064,000 and $57,825,000 as of April 30, 2023 and April 30, 2022, respectively. 33 The Company’s cash and cash equivalents include $7,240,000 and $28,965,000 at April 30, 2023 and April 30, 2022, respectively, invested primarily in commercial banks and in Money Market Funds at brokers, which operate under Rule 2a-7 of the 1940 Act and invest primarily in short-term U.S. government securities.
As of April 30, 2022, one of the Value Line Funds has full or partial 12b-1 fees waivers in place, and one fund has partial investment management fee waivers in place.
As of April 30, 2023, one of the Value Line Funds has full 12b-1 fees waivers in place, and five funds have partial investment management fee waivers in place.
The lease is a net lease requiring the Company to pay for certain operating expenses associated with the Warehouse as well as utilities supplied to the Warehouse. 31 Investment gains / (losses) Fiscal Years Ended April 30, Change ($ in thousands) 2022 2021 2020 '22 vs. '21 '21 vs. '20 Dividend income $ 851 $ 573 $ 352 48.5 % 62.8 % Interest income 18 137 279 -86.9 % -50.9 % Investment gains/(losses) recognized on sale of equity securities during the period (1,568 ) 835 (1,075 ) n/a n/a Unrealized gains/(losses) recognized on equity securities held at the end of the period 167 3,875 (339 ) n/a n/a Other (2 ) - (6 ) n/a n/a Total investment gains/(losses) $ (534 ) $ 5,420 $ (789 ) n/a n/a During the twelve months ended April 30, 2022, the Company’s investment gains, primarily derived from dividend and interest income, investment losses recognized on sales of equity securities during the period and unrealized gains recognized on equity securities held at the end of the period in fiscal 2022, resulted in a loss of $534,000.
The lease is a net lease requiring the Company to pay for certain operating expenses associated with the Warehouse as well as utilities supplied to the Warehouse. 32 Investment gains / (losses) Fiscal Years Ended April 30, Change ($ in thousands) 2023 2022 2021 '23 vs. '22 '22 vs. '21 Dividend income $ 595 $ 851 $ 573 -30.1 % 48.5 % Interest income 706 18 137 n/a -86.9 % Investment gains/(losses) recognized on sale of equity securities during the period (81 ) (1,568 ) 835 -94.8 % n/a Unrealized gains/(losses) recognized on equity securities held at the end of the period (45 ) 167 3,875 -126.9 % n/a Other (1 ) (2 ) - n/a n/a Total investment gains/(losses) $ 1,174 $ (534 ) $ 5,420 n/a n/a During the twelve months ended April 30, 2023, the Company’s investment gains, primarily derived from dividend and interest income, investment gains recognized on sales of equity securities during the period and unrealized gains recognized on equity securities held at the end of the period in fiscal 2023, resulted in a gain of $1,174,000.
Liquidity and Capital Resources The Company had working capital, defined as current assets less current liabilities, of $37,580,000 as of April 30, 2022 and $23,312,000 as of April 30, 2021. These amounts include short-term unearned revenue of $17,688,000 and $19,162,000 reflected in total current liabilities at April 30, 2022 and April 30, 2021, respectively.
Liquidity and Capital Resources The Company had working capital, defined as current assets less current liabilities, of $42,788,000 as of April 30, 2023 and $37,580,000 as of April 30, 2022. These amounts include short-term unearned revenue of $16,771,000 and $17,688,000 reflected in total current liabilities at April 30, 2023 and April 30, 2022, respectively.
The increase during the twelve months ended April 30, 2021 was primarily a result of an increase in bank service costs based on higher credit card gross receipts of $13.2 million in fiscal 2021 which were 18.5% higher than credit card gross receipts of $11.2 million in the prior fiscal year. 30 During the twelve months ended April 30, 2020, office and administrative expenses of $4,725,000, increased 6.5% above the prior fiscal year.
The increase during the twelve months ended April 30, 2021 was primarily a result of an increase in bank service costs based on higher credit card gross receipts of $13.2 million in fiscal 2021 which were 18.5% higher than credit card gross receipts of $11.2 million in the prior fiscal year.
During the twelve months ended April 30, 2020, the Company’s investment losses, primarily derived from dividend and interest income, investment losses recognized on sales of equity securities during the period and unrealized losses recognized on equity securities held at the end of the period in fiscal 2020, were $789,000.
During the twelve months ended April 30, 2022, the Company’s investment gains, primarily derived from dividend and interest income, investment losses recognized on sales of equity securities during the period and unrealized gains recognized on equity securities held at the end of the period in fiscal 2022, resulted in a loss of $534,000.
During the twelve months ended April 30, 2020, EAM's net income was $2,332,000 after giving effect to Value Line’s non-voting revenues interest of $11,184,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.
During the twelve months ended April 30, 2023, EAM's net income was $1,468,000 after giving effect to Value Line’s non-voting revenues interest of $10,397,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.
Estimated payments of these liabilities in each of the next five fiscal years and thereafter are (in thousands): $1,597 in 2023; $1,634 in 2024; $1,429 in 2025; $1,461 in 2026; $1,493 in 2027 and $882 thereafter totaling $8,496. 35
Estimated payments of these liabilities in each of the next four fiscal years and thereafter are (in thousands): $1,634 in 2024; $1,429 in 2025; $1,461 in 2026; $1,493 in 2027 and $882 thereafter totaling $6,899. 35
Total operating revenues Fiscal Years Ended April 30, Change ($ in thousands) 2022 2021 2020 '22 vs. '21 '21 vs. '20 Investment periodicals and related publications: Print $ 11,253 $ 11,929 $ 12,351 -5.7 % -3.4 % Digital 15,892 15,700 15,277 1.2 % 2.8 % Total investment periodicals and related publications 27,145 27,629 27,628 -1.8 % 0.0 % Copyright fees 13,380 12,763 12,671 4.8 % 0.7 % Total operating revenues $ 40,525 $ 40,392 $ 40,299 0.3 % 0.2 % Within investment periodicals and related publications, subscription sales orders are derived from print and digital products.
Total operating revenues Fiscal Years Ended April 30, Change ($ in thousands) 2023 2022 2021 '23 vs. '22 '22 vs. '21 Investment periodicals and related publications: Print $ 9,963 $ 11,253 $ 11,929 -11.5 % -5.7 % Digital 16,269 15,892 15,700 2.4 % 1.2 % Total investment periodicals and related publications 26,232 27,145 27,629 -3.4 % -1.8 % Copyright fees 13,463 13,380 12,763 0.6 % 4.8 % Total operating revenues $ 39,695 $ 40,525 $ 40,392 -2.0 % 0.3 % Within investment periodicals and related publications, subscription sales orders are derived from print and digital products.
Cash outflows for financing activities included $2,484,000, $1,526,000 and $1,214,000 for the repurchase of 53,327 shares, 53,551 shares and 46,840 shares of the Company’s common stock under the April 2020, July 2021 and March 2022 board approved common stock repurchase programs, during fiscal years 2022, 2021 and 2020, respectively.
Cash outflows for financing activities included $4,704,000, $2,484,000 and $1,526,000 for the repurchase of 75,303 shares, 53,327 shares and 53,551 shares of the Company’s common stock under the July 2021, March 2022, May 2022 & October 2022 board approved common stock repurchase programs, during fiscal years 2023, 2022 and 2021, respectively.
Quarterly regular dividend payments of $0.21 per share during fiscal 2021 aggregated $8,068,000. Quarterly regular dividend payments of $0.20 per share during fiscal 2020 aggregated $7,724,000. At April 30, 2022 there were 9,509,843 common shares outstanding as compared to 9,563,170 common shares outstanding at April 30, 2021.
Quarterly regular dividend payments of $0.22 per share during fiscal 2022 aggregated $8,405,000. Quarterly regular dividend payments of $0.21 per share during fiscal 2021 aggregated $8,068,000. At April 30, 2023 there were 9,434,540 common shares outstanding as compared to 9,509,843 common shares outstanding at April 30, 2022.
The gross fees and net income of EAM’s investment management operations during the twelve months ended April 30, 2020, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $21,985,000, 12b-1 fees and other fees of $8,436,000 and other net losses of $156,000.
The gross fees and net income of EAM’s investment management operations during the twelve months ended April 30, 2022, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $29,598,000, 12b-1 fees and other fees of $9,310,000 and other net losses of $20,000.
The Publishing segment constitutes the Company’s only reportable business segment. 21 Asset Management and Mutual Fund Distribution Businesses Pursuant to the EAM Declaration of Trust, the Company maintains an interest in certain revenues of EAM and a portion of the residual profits of EAM but has no voting authority with respect to the election or removal of the trustees of EAM or control of its business.
Asset Management and Mutual Fund Distribution Businesses Pursuant to the EAM Declaration of Trust, the Company maintains an interest in certain revenues of EAM and a portion of the residual profits of EAM but has no voting authority with respect to the election or removal of the trustees of EAM or control of its business. 21 The business of EAM is managed by its trustees each owning 20% of the voting interest in EAM and by its officers subject to the direction of the trustees.
During the twelve months ended April 30, 2021 renewal sales of digital publications increased as a percent of the total gross digital sales versus the prior fiscal year due to an increase in renewal gross sales of Institutional digital publications as customer migration to digital services continues gradually. 24 As of April 30, Change ($ in thousands) 2022 2021 2020 '22 vs. '21 '21 vs. '20 Unearned subscription revenue (current and long-term liabilities) $ 23,773 $ 25,088 $ 24,738 -5.2 % 1.4 % A certain amount of variation is to be expected due to the volume of new orders and timing of renewal orders, direct mail campaigns and large Institutional Sales orders.
During the twelve months ended April 30, 2022, renewal sales of print and digital publications increased as a percent of the total gross sales versus the prior fiscal year as a result of increased efforts by our in-house Retail and Institutional Sales departments. 25 As of April 30, Change ($ in thousands) 2023 2022 2021 '23 vs. '22 '22 vs. '21 Unearned subscription revenue (current and long-term liabilities) $ 22,973 $ 23,773 $ 25,088 -3.4 % -5.2 % A certain amount of variation is to be expected due to the volume of new orders and timing of renewal orders, direct mail campaigns and large Institutional Sales orders.
Sources of subscription sales Fiscal Years Ended April 30, 2022 2021 2020 Print Digital Print Digital Print Digital New Sales 11.7 % 13.0 % 14.6 % 15.4 % 10.0 % 15.8 % Renewal Sales 88.3 % 87.0 % 85.4 % 84.7 % 90.0 % 84.2 % Total Gross Sales 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % During the twelve months ended April 30, 2022, new sales of print and digital publications decreased as a percent of the total gross sales versus the prior fiscal year.
Sources of subscription sales Fiscal Years Ended April 30, 2023 2022 2021 Print Digital Print Digital Print Digital New Sales 10.9 % 11.0 % 11.7 % 13.0 % 14.6 % 15.4 % Renewal Sales 89.1 % 89.0 % 88.3 % 87.0 % 85.4 % 84.7 % Total Gross Sales 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % During the twelve months ended April 30, 2023, new sales of print and digital publications decreased as a percent of the total gross sales versus the prior fiscal years as a result of weakened sentiment among prospective customers in a period of market volatility.
Fiscal Years Ended April 30, Change ($ in thousands, except earnings per share) 2022 2021 2020 '22 vs. '21 '21 vs. '20 Income from operations $ 10,800 $ 7,535 $ 9,090 43.3 % -17.1 % Gain on forgiveness of SBA loan 2,331 - - n/a n/a Non-voting revenues and non-voting profits interests from EAM Trust 18,041 17,321 12,350 4.2 % 40.3 % Income from operations plus non-voting revenues and non-voting profits interests from EAM Trust and gain on SBA loan forgiveness 31,172 24,856 21,440 25.4 % 15.9 % Operating expenses 29,725 32,857 31,209 -9.5 % 5.3 % Investment gains (534 ) 5,420 (789 ) n/a n/a Income before income taxes $ 30,638 $ 30,276 $ 20,651 1.2 % 46.6 % Net income $ 23,822 $ 23,280 $ 14,943 2.3 % 55.8 % Earnings per share $ 2.50 $ 2.43 $ 1.55 2.9 % 56.8 % During the twelve months ended April 30, 2022, the Company’s net income of $23,822,000, or $2.50 per share, was 2.3% above net income of $23,280,000, or $2.43 per share, for the twelve months ended April 30, 2021.
Fiscal Years Ended April 30, Change ($ in thousands, except earnings per share) 2023 2022 2021 '23 vs. '22 '22 vs. '21 Income from operations $ 11,470 $ 10,800 $ 7,535 6.2 % 43.3 % Gain on forgiveness of SBA loan - 2,331 - n/a n/a Non-voting revenues and non-voting profits interests from EAM Trust 11,131 18,041 17,321 -38.3 % 4.2 % Income from operations plus non-voting revenues and non-voting profits interests from EAM Trust and gain on SBA loan forgiveness 22,601 31,172 24,856 -27.5 % 25.4 % Operating expenses 28,225 29,725 32,857 -5.0 % -9.5 % Investment gains / (losses) 1,174 (534 ) 5,420 n/a n/a Income before income taxes $ 23,775 $ 30,638 $ 30,276 -22.4 % 1.2 % Net income $ 18,069 $ 23,822 $ 23,280 -24.1 % 2.3 % Earnings per share $ 1.91 $ 2.50 $ 2.43 -23.6 % 2.9 % During the twelve months ended April 30, 2023, the Company’s net income of $18,069,000, or $1.91 per share, was 24.1% below net income of $23,822,000, or $2.50 per share, for the twelve months ended April 30, 2022.
During the six month period ended April 30, 2022, the combined Ranking System “Rank 1 & 2” stocks’ decrease of 15.3% compared to the Russell 2000 Index’s decrease of 18.9% during the comparable period.
During the six month period ended April 30, 2023, the combined Ranking System “Rank 1 & 2” stocks’ increase of 7.0% compared to the Russell 2000 Index’s decrease of 4.2% during the comparable period.
Asset Flows For the Years Ended April 30, 2022 2021 2020 2022 2021 vs. vs. 2021 2020 Value Line equity fund assets (excludes variable annuity)— beginning $ 4,432,630,658 $ 3,107,549,794 $ 2,582,416,326 42.6 % 20.3 % Sales/inflows 489,135,580 1,444,784,921 1,516,434,399 -66.1 % -4.7 % Dividends/Capital Gains Reinvested 350,143,149 245,356,118 206,956,280 42.7 % 18.6 % Redemptions/outflows (1,228,854,315 ) (1,265,805,045 ) (1,006,449,848 ) -2.9 % 25.8 % Dividend and Capital Gain Distributions (365,486,450 ) (257,754,064 ) (214,033,328 ) 41.8 % 20.4 % Market value change (364,678,944 ) 1,158,498,934 22,225,964 -131.5 % 5112.4 % Value Line equity fund assets (non-variable annuity)— ending 3,312,889,678 4,432,630,658 3,107,549,794 -25.3 % 42.6 % Variable annuity fund assets — beginning $ 431,605,833 $ 365,271,893 $ 402,171,626 18.2 % -9.2 % Sales/inflows 4,277,236 4,494,490 3,489,595 -4.8 % 28.8 % Dividends/Capital Gains Reinvested 329,335,773 46,943,739 34,384,214 601.6 % 36.5 % Redemptions/outflows (1) (444,323,548 ) (48,782,673 ) (50,911,955 ) 810.8 % -4.2 % Dividend and Capital Gain Distributions (329,335,773 ) (46,943,739 ) (34,384,214 ) 601.6 % 36.5 % Market value change 8,440,479 110,622,123 10,522,627 -92.4 % 951.3 % Variable annuity fund assets — ending 0 431,605,833 365,271,893 -100.0 % 18.2 % Fixed income fund assets — beginning $ 100,536,371 $ 103,255,601 $ 106,204,372 -2.6 % -2.8 % Sales/inflows 2,519,668 2,690,636 5,872,737 -6.4 % -54.2 % Dividends/Capital Gains Reinvested 1,140,663 1,810,046 2,247,503 -37.0 % -19.5 % Redemptions/outflows (2) (52,180,984 ) (8,240,615 ) (13,556,768 ) 533.2 % -39.2 % Dividend and Capital Gain Distributions (1,219,715 ) (2,084,557 ) (2,578,873 ) -41.5 % -19.2 % Market value change (6,059,508 ) 3,105,260 5,066,630 -295.1 % -38.7 % Fixed income fund assets — ending 44,736,495 100,536,371 103,255,601 -55.5 % -2.6 % Assets under management — ending $ 3,357,626,173 $ 4,964,772,862 $ 3,576,077,288 -32.4 % 38.8 % (1) Guardian Insurance redeemed from Value Line Centurion and Value Line Strategic Asset Management on April 29, 2022 and the two funds were closed.
Asset Flows For the Years Ended April 30, 2023 2022 2021 2023 2022 vs. vs. 2022 2021 Value Line equity fund assets (excludes variable annuity)— beginning $ 3,312,889,678 $ 4,432,630,658 $ 3,107,549,794 -25.3 % 42.6 % Sales/inflows 514,725,223 489,135,580 1,444,784,921 5.2 % -66.1 % Dividends/Capital Gains Reinvested 194,068,940 350,143,149 245,356,118 -44.6 % 42.7 % Redemptions/outflows (858,248,017 ) (1,228,854,315 ) (1,265,805,045 ) -30.2 % -2.9 % Dividend and Capital Gain Distributions (202,981,966 ) (365,486,450 ) (257,754,064 ) -44.5 % 41.8 % Market value change 91,096,182 (364,678,944 ) 1,158,498,934 -125.0 % -131.5 % Value Line equity fund assets (non-variable annuity)— ending 3,051,550,040 3,312,889,678 4,432,630,658 -7.9 % -25.3 % Variable annuity fund assets — beginning $ 0 $ 431,605,833 $ 365,271,893 N/A 18.2 % Sales/inflows 0 4,277,236 4,494,490 N/A -4.8 % Dividends/Capital Gains Reinvested 0 329,335,773 46,943,739 N/A 601.6 % Redemptions/outflows (1) 0 (444,323,548 ) (48,782,673 ) N/A 810.8 % Dividend and Capital Gain Distributions 0 (329,335,773 ) (46,943,739 ) N/A 601.6 % Market value change 0 8,440,479 110,622,123 N/A -92.4 % Variable annuity fund assets — ending 0 0 431,605,833 N/A -100.0 % Fixed income fund assets — beginning $ 44,736,495 $ 100,536,371 $ 103,255,601 -55.5 % -2.6 % Sales/inflows 196,436 2,519,668 2,690,636 -92.2 % -6.4 % Dividends/Capital Gains Reinvested 808,077 1,140,663 1,810,046 -29.2 % -37.0 % Redemptions/outflows (2) (3,240,355 ) (52,180,984 ) (8,240,615 ) -93.8 % 533.2 % Dividend and Capital Gain Distributions (877,002 ) (1,219,715 ) (2,084,557 ) -28.1 % -41.5 % Market value change (519,400 ) (6,059,508 ) 3,105,260 -91.4 % -295.1 % Fixed income fund assets — ending 41,104,251 44,736,495 100,536,371 -8.1 % -55.5 % Assets under management — ending $ 3,092,654,291 $ 3,357,626,173 $ 4,964,772,862 -7.9 % -32.4 % (1) Guardian Insurance redeemed from Value Line Centurion and Value Line Strategic Asset Management on April 29, 2022 and the two funds were closed and subsequently liquidated.
During the twelve months ended April 30, 2022, renewal sales of print and digital publications increased as a percent of the total gross sales versus the prior fiscal year as a result of increased efforts by our in-house Retail and Institutional Sales departments.
During the twelve months ended April 30, 2023, renewal sales of print and digital publications increased as a percent of the total gross sales versus the prior fiscal years. During the twelve months ended April 30, 2022, new sales of print and digital publications decreased as a percent of the total gross sales versus the prior fiscal year.
For the same period, total investment management fee waivers were $302,000 and 12b-1 fee waivers for three Value Line Funds were $667,000.
For the same period, total investment management fee waivers were $164,000 and 12b-1 fee waivers were $105,000.
During the twelve months ended April 30, 2022, decreases were primarily due to a decline in direct mail campaigns and lower media marketing and lower institutional sales commissions. Total sales commissions decreased 8% during the twelve months ended April 30, 2022.
During the twelve months ended April 30, 2022, advertising and promotion expenses of $3,223,000 decreased 13.9% as compared to the prior fiscal year. During the twelve months ended April 30, 2022, decreases were primarily due to a decline in direct mail campaigns and lower media marketing and lower institutional sales commissions.
Cash outflows for the twelve months ended April 30, 2022, were primarily due to the Company’s decision to invest in additional fixed income securities in fiscal 2022. Cash inflows for the twelve months ended April 30, 2021, were higher than in fiscal 2020 primarily due to the Company’s decision not to reinvest proceeds in fixed income securities in fiscal 2021.
Cash outflows for the twelve months ended April 30, 2023 and April 30, 2022, were primarily due to the Company’s decision to invest in additional fixed income securities, primarily United States government obligations, in fiscal 2023 and 2022.
During the twelve months ended April 30, 2021, Institutional gross sales increased by $1.5 million and the retail telemarketing gross sales orders increased by $336,000 above the prior fiscal year. 29 During the twelve months ended April 30, 2020, advertising and promotion expenses of $3,350,000, decreased 1.6% as compared to the prior fiscal year.
Total sales commissions increased by $110,000 during the twelve months ended April 30, 2021. During the twelve months ended April 30, 2021, Institutional gross sales increased by $1.5 million and the retail telemarketing gross sales orders increased by $336,000 above the prior fiscal year.
During the three months ended April 30, 2021, the Company’s income from operations of $838,000 was 35.9% below income from operations of $1,307,000 during the three months ended April 30, 2020. 23 During the twelve months ended April 30, 2020, the Company’s income from operations of $9,090,000 was $3,677,000 or 67.9% above income from operations of $5,413,000 in the prior fiscal year.
During the three months ended April 30, 2021, the Company’s income from operations of $838,000 was 35.9% below income from operations of $1,307,000 during the three months ended April 30, 2020.
Total assets in the Value Line Funds managed and/or distributed by EAM at April 30, 2021, were $4.96 billion, which is $1.4 billion, or 38.8%, above total assets of $3.58 billion in the Value Line Funds managed and/or distributed by EAM at April 30, 2020.
Total assets in the Value Line Funds managed and/or distributed by EAM at April 30, 2023, were $3.09 billion, which is $0.27 billion, or 8.0%, below total assets of $3.36 billion in the Value Line Funds managed and/or distributed by EAM at April 30, 2022.
Proceeds from maturities and sales of government debt securities classified as available-for-sale during the twelve months ended April 30, 2021 and April 30, 2020, were $14,902,000 and $8,663,000, respectively. Proceeds from the sales of equity securities during the twelve months ended April 30, 2021 and April 30, 2020 were $8,212,000 and $4,387,000, respectively.
Proceeds from maturities and sales of government debt securities classified as available-for-sale during the twelve months ended April 30, 2023 and April 30, 2022, were $9,907,000 and $2,496,000, respectively. Proceeds from the sales of equity securities during the twelve months ended April 30, 2023 and April 30, 2022 were $4,706,000 and $12,039,000, respectively.
The increase in cash flows from fiscal 2020 to fiscal 2021 is primarily attributable to higher net income and an increase in cash receipts from EAM and the timing of receipts from copyright programs.
The decrease in cash flows from fiscal 2022 to fiscal 2023 is primarily attributable to lower pre-tax income and a decrease in cash receipts from EAM and the timing of receipts from copyright programs.
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. business expansion appears to be slowing at mid-year 2022.
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 pace of economic growth slowed moderately in the first half of calendar 2023.
During the twelve months ended April 30, 2022, 2021 and 2020, the Company recorded profit sharing expenses of $557,000, $980,000 and $870,000, respectively.
During the twelve months ended April 30, 2023, 2022 and 2021, the Company recorded profit sharing expenses of $410,000, $557,000 and $980,000, respectively. Production and distribution During the twelve months ended April 30, 2023, production and distribution expenses of $5,210,000 increased 4.1% above prior fiscal year.
Total digital circulation at April 30, 2020, was 4.4% below total digital circulation in the prior fiscal year, however, digital publications revenues of $15,277,000 during the twelve months ended April 30, 2020, were only 1.3% below the prior fiscal year, as higher-priced subscriptions were generally retained. 25 Value Line serves primarily individual and professional investors in stocks, who pay mostly on annual subscription plans, for basic services or as much as $100,000 or more annually for comprehensive premium quality research, not obtainable elsewhere.
Digital revenues of $15,700,000 were up 2.8% offsetting the decrease in revenues from print publications, as compared to the prior fiscal year. Value Line serves primarily individual and professional investors in stocks, who pay mostly on annual subscription plans, for basic services or as much as $100,000 or more annually for comprehensive premium quality research, not obtainable elsewhere.
Digital revenues of $15,700,000 were up 2.8% offsetting the decrease in revenues from print publications, as compared to the prior fiscal year. Investment periodicals and related publications revenues of $27,628,000 (excluding copyright fees), decreased 4.1% during the twelve months ended April 30, 2020, as compared to the prior fiscal year.
Investment periodicals and related publications revenues Investment periodicals and related publications revenues of $26,232,000 (excluding copyright fees) during the twelve months ended April 30, 2023 were 3.4% below publishing revenues of $27,145,000, as compared to the prior fiscal year.
The Value Line equity and hybrid funds’ assets represent 89.1%, variable annuity funds issued by GIAC represent 8.9%, and fixed income fund assets represent 2.0%, respectively, of total fund assets under management (“AUM”) as of April 30, 2021.
The Value Line equity and hybrid funds’ assets represent 98.7% and fixed income fund assets represent 1.3%, respectively, of total fund assets under management (“AUM”) as of April 30, 2023. At April 30, 2023, equity and hybrid AUM decreased by 7.9% and fixed income AUM decreased by 8.1% as compared to last year at April 30, 2022.
During the twelve months ended April 30, 2021, office and administrative expenses of $4,807,000 increased 1.7% above the prior fiscal year.
Office and administration During the twelve months ended April 30, 2023, office and administrative expenses of $4,763,000 increased 14.1% above the prior fiscal year, primarily due to an increases in settlement costs and professional fees.
During the twelve months ended April 30, 2020, an increase in media marketing expenses and institutional sales promotion was offset by a 15.7% decrease in direct marketing expenses. During the twelve months ended April 30, 2020, sales commissions decreased 3.7% as compared to the prior fiscal year.
Advertising and promotion During twelve months ended April 30, 2023, advertising and promotion expenses of $3,049,000 decreased 5.4% as compared to the prior fiscal year. During the twelve months ended April 30, 2023, decreases were primarily due to decreases in media advertising expenses and direct mail campaigns, partially offset by the increases in renewal solicitation costs and institutional sales commissions.
During the twelve month period ended April 30, 2021, the combined Ranking System “Rank 1 & 2” stocks’ decrease of 10.3% compared to the Russell 2000 Index’s decrease of 17.8% during the comparable period.
During the twelve month period ended April 30, 2023, the combined Ranking System “Rank 1 & 2” stocks’ were flat compared to the Russell 2000 Index’s decrease of 5.1% during the comparable period. Copyright fees During the twelve months ended April 30, 2023, copyright fees of $13,463,000 were 0.6% above those during the corresponding period in the prior fiscal year.
The increase of $222,000 during the twelve months ended April 30, 2020, was a result of the operating lease amortization expense in fiscal 2020 due to a change in lease accounting standard ASU 2016-02,"Leases (Topic 842)". Concentration During the twelve months ended April 30, 2022, 33.0% of total publishing revenues of $40,525,000 were derived from a single customer.
Concentration During the twelve months ended April 30, 2023, 33.9% of total publishing revenues of $39,695,000 were derived from a single customer. During the twelve months ended April 30, 2022, 33.0% of total publishing revenues of $40,525,000 were derived from a single customer.
During the twelve months ended April 30, 2020, there were 9,646,885 average common shares outstanding as compared to 9,683,771 average common shares outstanding in the prior fiscal year. For the twelve months ended April 30, 2020, operating expenses increased 1.2% above those in the prior fiscal year.
For the twelve months ended April 30, 2023, operating expenses decreased 5.0% below those during the twelve months ended April 30, 2022. During the twelve months ended April 30, 2023, there were 9,458,605 average common shares outstanding as compared to 9,544,421 average common shares outstanding during the twelve months ended April 30, 2022.
During the three months ended April 30, 2020, the Company’s net income of $1,807,000, or $0.19 per share, was 36.2% below net income of $2,833,000, or $0.29 per share in the prior fiscal year.
During the three months ended April 30, 2023, the Company’s net income of $4,033,000, or $0.43 per share, was 5.9% below net income of $3,807,000, or $0.40 per share, for the three months ended April 30, 2022.
The Advisor/Independent Broker Dealer channel has successfully become the largest channel for sales and distribution of The Value Line Funds. 27 EAM Trust - Results of operations before distribution to interest holders The gross fees and net income of EAM’s investment management operations during the twelve months ended April 30, 2022, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $29,598,000, 12b-1 fees and other fees of $9,310,000 and other net losses of $20,000.
As of April 30, 2023, four of six Value Line equity and hybrid mutual funds held an overall four or five star rating by Morningstar, Inc. 28 EAM Trust - Results of operations before distribution to interest holders The gross fees and net income of EAM’s investment management operations during the twelve months ended April 30, 2023, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $19,824,000, 12b-1 fees and other fees of $5,964,000 and other net gains of $142,000.
Print publication revenues of $12,351,000, decreased 7.4%, during the twelve months ended April 30, 2020, as compared to the prior fiscal year as a result of a 6.1% decline in total print circulation in fiscal 2020.
Total digital circulation at April 30, 2023 was 2.7% below total digital circulation at April 30, 2022 with the professional clientele offsetting individual subscribers. During the twelve months ended April 30, 2023, digital revenues of $16,269,000 were up 2.4% as compared to the prior fiscal year.
During the twelve months ended April 30, 2020, production and distribution expenses of $4,945,000, decreased 5.3% below the prior fiscal year.
Operating expenses of $28,225,000 during the twelve months ended April 30, 2023, were 5.0% below those during the twelve months ended April 30, 2022 as a result of cost controls in fiscal year 2023. Operating expenses of $6,961,000 during the three months ended April 30, 2023, were 3.4% below those during the three months ended April 30, 2022.
Total product line circulation at April 30, 2020, was 5.4% below total product line circulation in the prior fiscal year. During the twelve months ended April 30, 2020, Institutional Sales department generated total sales orders of $13,566,000 and the retail telemarketing sales team generated total sales orders of $8,322,000.
However, during the twelve months ended April 30, 2023, Institutional Sales department total sales orders, representing our growing business with financial advisors and professional investors, reached a record of $15,236,000, 10.0% above the prior fiscal year. The retail telemarketing sales team generated total sales orders of $7,409,000 or 10.6% below the prior fiscal year.
During the twelve months ended April 30, 2020, salaries and employee benefits of $18,189,000, increased 2.3% above the prior fiscal year due to a 47.0% increase in Profit Sharing employee benefits expense during fiscal 2020 and an increase in independent contractors’ costs over the prior year.
Salaries and employee benefits During the twelve months ended April 30, 2023, salaries and employee benefits of $15,203,000 decreased 12.2% below the prior fiscal year, primarily due to decreases in salaries and employee benefits resulting from a reduced employee headcount in fiscal year 2023, as well as reductions in payment for a profit sharing contribution and the company’s share of medical benefits.
During the twelve months ended April 30, 2020, the Company’s net income of $14,943,000, or $1.55 per share, was $2,934,000 or 24.4% above net income of $12,009,000, or $1.24 per share in the prior fiscal year.
During the three months ended April 30, 2023, the Company’s income from operations of $2,757,000 was 5.7% below income from operations of $2,923,000 during the three months ended April 30, 2022. 24 During the twelve months ended April 30, 2022, the Company’s net income of $23,822,000, or $2.50 per share, was 2.3% above net income of $23,280,000, or $2.43 per share, for the twelve months ended April 30, 2021.
Removed
The business of EAM is managed by its trustees each owning 20% of the voting profits interest in EAM and by its officers subject to the direction of the trustees.
Added
The Publishing segment constitutes the Company’s only reportable business segment.
Removed
The nation’s gross domestic product (GDP) contracted by an estimated annualized rate of 1.6% in the first calendar quarter, hurt by elevated import growth and lower inventory restocking over the first three months of the year. There are a number of headwinds in place that point to a slower pace of expansion ahead; nor can a recession be ruled out.
Added
The gross domestic product (GDP) expanded by an annualized rate of 2.0% in the March period and the consensus forecast expected that the pace eased to around 1.0% in the June interim.
Removed
Persistently high inflation, fueled by disruptions to global commodity prices from the war in Ukraine, rising labor market wages, and renewed COVID-19 mandated lockdowns in China, is continuing to erode consumer purchasing power. Higher borrowing costs are taking a toll on demand in the housing and homebuilding markets, the second-largest contributor to GDP after the consumer sector.
Added
(The first estimate for second-quarter GDP surprised to the upside with a reading of 2.4%.) This followed respective annualized advances of 3.2% and 2.6% in the third and fourth quarters of 2022.
Removed
This changing business climate comes as the Federal Reserve continues to appear committed to aggressively tightening the monetary reins in an effort to slow demand and ultimately combat stubbornly high prices.
Added
The Federal Reserve’s increasingly restrictive monetary policies—implemented to battle inflation by slowing demand for goods and services and ultimately putting downward pressure on prices—hurt the housing and manufacturing sectors, though recent data suggests that the housing market may be emerging from a recessionary phase in 2022.
Removed
This more-restrictive monetary policy stance likely includes a number of potential hikes to the benchmark short-term interest rate by year’s end, and the Fed will be continuing its monthly reduction of the central bank’s holdings of Treasury bonds and mortgage-backed securities.
Added
The Federal Reserve, faced with inflation running at a 40-year high entering 2022, embarked on a highly restrictive monetary policy tightening course. This resulted in the central bank hiking the benchmark short-term interest rate at 10-consecutive Federal Open Market Committee (FOMC) meetings before pausing at the June meeting.
Removed
The Fed will be challenged with crafting a monetary tightening course that can stabilize prices, part of its dual mandate along with fostering full employment, while producing a “soft landing” for the economy.
Added
This hawkish stance raised the federal funds rate from near-zero in the spring of 2022 to the current range of 5.25% to 5.50% announced on July 26th. Recent data have shown that inflation eased some this spring, with both consumer and producer price growth well off multi-decade highs established in 2021.
Removed
Any missteps in policy could potentially push the economy into a period of recession or stagflation, where high inflation accompanies slowing growth and rising unemployment. 22 Results of Operations for Fiscal Years 2022, 2021 and 2020 The following table illustrates the Company’s key components of revenues and expenses.

… 32 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

7 edited+4 added−1 removed4 unchanged
Biggest changeAs of April 30, 2022 and April 30, 2021, 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 and common stock equity securities was a combined total $13,318,000 and $19,105,000, respectively, and the fair value was $17,647,000 and $23,582,000, respectively. 36 Equity Securities Estimated Fair Value after Hypothetical Percentage Hypothetical Hypothetical Increase (Decrease) in ($ in thousands) Fair Value Price Change Change in Prices Shareholders’ Equity As of April 30, 2022 Equity Securities and ETFs held for dividend yield $ 17,647 30% increase $ 22,942 4.92 % 30% decrease $ 12,353 -4.92 % Equity Securities Estimated Fair Value after Hypothetical Percentage Hypothetical Hypothetical Increase (Decrease) in ($ in thousands) Fair Value Price Change Change in Prices Shareholders’ Equity As of April 30, 2021 Equity Securities and ETFs held for dividend yield $ 23,582 30% increase $ 30,657 7.81 % 30% decrease $ 16,507 -7.81 % Item 8.
Biggest changeAs of April 30, 2023 and April 30, 2022, 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 and common stock equity securities was a combined total $10,169,000 and $13,318,000, respectively, and the fair value was $14,546,000 and $17,647,000, respectively.
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 securities issued by federal, state and local governments within the United States.
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 certificates of deposits and securities issued by federal, state and local governments within the United States.
The following consolidated financial statements of the registrant and its subsidiaries are included as a part of this Form 10-K: Page Number Report of independent auditors (PCAOB ID No. 921) 48 Consolidated balance sheets at April 30, 2022 and 2021 50 Consolidated statements of income for the fiscal years ended April 30, 2022, 2021 and 2020 51 Consolidated statements of comprehensive income for the fiscal years ended April 30, 2022, 2021 and 2020 52 Consolidated statements of cash flows for the fiscal years ended April 30, 2022, 2021 and 2020 53 Consolidated statement of changes in shareholders’ equity for the fiscal years ended April 30, 2022, 2021 and 2020 54 Notes to the consolidated financial statements 55 37
The following consolidated financial statements of the registrant and its subsidiaries are included as a part of this Form 10-K: Page Number Report of independent auditors (PCAOB ID No. 921) 49 Consolidated balance sheets at April 30, 2023 and 2022 51 Consolidated statements of income for the fiscal years ended April 30, 2023, 2022 and 2021 52 Consolidated statements of comprehensive income for the fiscal years ended April 30, 2023, 2022 and 2021 53 Consolidated statements of cash flows for the fiscal years ended April 30, 2023, 2022 and 2021 54 Consolidated statement of changes in shareholders’ equity for the fiscal years ended April 30, 2023, 2022 and 2021 55 Notes to the consolidated financial statements 56 38
As of April 30, 2022 the aggregate cost and fair value of fixed income securities classified as available-for-sale were $10,505,000 and $10,475,000, respectively. As of April 30, 2021 the aggregate cost and fair value of fixed income securities classified as available-for-sale were $2,596,000 and $2,600,000, respectively.
As of April 30, 2023 the aggregate cost and fair value of fixed income securities classified as available-for-sale were $39,455,000 and $39,928,000, respectively. As of April 30, 2022 the aggregate cost and fair value of fixed income securities classified as available-for-sale were $10,505,000 and $10,475,000, respectively.
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 and ETFs that hold preferred shares primarily of financial institutions.
The portfolio consists of ETFs held for dividend yield that attempt to replicate the performance of certain equity indexes and ETFs that hold preferred shares primarily of financial institutions.
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.
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.
There was no interest rate risk in fixed income investments in securities with fixed maturities as of April 30, 2022 or April 30, 2021 since the short-term obligations were maturing within one year. 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.
Fixed Income Securities Estimated Fair Value after Hypothetical Change in Interest Rates (in thousands) (bp = basis points) 1 year 1 year 1 year 1 year Fair 50 bp 50 bp 100 bp 100 bp Value increase decrease increase decrease As of April 30, 2023 Investments in securities with fixed maturities $ 39,928 $ 39,202 $ 39,512 $ 39,048 $ 39,667 As of April 30, 2022 Investments in securities with fixed maturities $ 10,505 N/A N/A N/A N/A 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. 36 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.
Removed
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.
Added
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.
Added
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.
Added
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.
Added
Equity Securities Estimated Fair Value after Hypothetical Percentage Hypothetical Hypothetical Increase (Decrease) in ($ in thousands) Fair Value Price Change Change in Prices Shareholders’ Equity As of April 30, 2023 Equity Securities and ETFs held for dividend yield $ 14,546 30% increase $ 18,910 4.12 % 30% decrease $ 10,182 -4.12 % Equity Securities Estimated Fair Value after Hypothetical Percentage Hypothetical Hypothetical Increase (Decrease) in ($ in thousands) Fair Value Price Change Change in Prices Shareholders’ Equity As of April 30, 2022 Equity Securities and ETFs held for dividend yield $ 17,647 30% increase $ 22,942 4.92 % 30% decrease $ 12,353 -4.92 % 37 Item 8.

Other VALU 10-K year-over-year comparisons