NEW YORK, Dec. 14, 2010 /PRNewswire-FirstCall/ -- Value Line, Inc. (Nasdaq: VALU) reported results for its fiscal quarter ended October 31, 2010. For the six months ended October 31, 2010, the Company's net income of $3,404,000 or $0.34 per share compared to the net loss of $29,199,000 or $2.93 per share for the six months ended October 31, 2009. Net income for the second quarter ended October 31, 2010 of $1,087,000 or $0.11 per share was $1,294,000 or 54% below net income of $2,381,000 or $0.23 per share for the second quarter of the prior fiscal year. Operating income of $5,336,000 for the six months ended October 31, 2010 compared to an operating loss of $39,351,000 for the six months ended October 31, 2009. The operating and net losses of the Company during the first six months of the prior fiscal year were a result of the Company recording a provision for the SEC Settlement discussed in Item 3 of the Company's Annual Report on Form 10-K for the fiscal year ended April 30, 2010 of $47,706,000. Operating income for the second quarter ended October 31, 2010 of $1,790,000 was $1,645,000 or 48% below operating income of $3,435,000 for the second quarter of the prior fiscal year due largely to $1,120,000 of expenses related to the Company's restructuring of its asset management division in order to comply with the SEC's order requiring disassociation. The SEC granted an extension to complete the disassociation from the November 4, 2010 deadline to December 24, 2010. The Company believes the transaction for disassociation approved by the Board of Directors of the Company on July 20, 2010, as more fully described in Note 9 of the Financial Statements included in the Company's Form 10-Q for the quarter ended October 31, 2010, is probable and will occur on or before December 24, 2010. The Value Line Funds' shareholder approval process was completed as of November 24, 2010. Pro Forma financial information for the six months and latest fiscal year is provided in the Company's Form 10-Q for the quarter ended October 31, 2010, which was filed with the SEC on December 14, 2010.
Shareholders' equity of $2,859,000 at October 31, 2010 was 94% lower than shareholders' equity of $47,636,000 at October 31, 2009 primarily as a result of a special $3.00 per share dividend paid during April 2010 and a special $2.00 per share dividend declared during October 2010 and paid during November 2010.
About Value Line
Value Line, Inc. is a leading New York based publishing and investment management company. Value Line believes The Value Line Investment Survey is one of the most widely read independent investment publications. Value Line also produces and publishes other proprietary investment periodicals in both print and electronic formats. Value Line has copyrighted data, which it distributes under copyright agreements for fees, including certain proprietary ranking system information and other proprietary information used in third party products, and provides investment management services to the Value Line family of no-load mutual funds and institutional and individual portfolios.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This report may contain statements that are predictive in nature, depend upon or refer to future events or conditions (including certain projections and business trends) accompanied by such phrases as "believe", "estimate", "expect", "anticipate", "will", "intend" and other similar or negative expressions, that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to the following:
- dependence on key personnel;
- maintaining revenue from subscriptions for Value Line's products;
- protection of intellectual property rights;
- changes in market and economic conditions;
- fluctuations in Value Line's assets under management due to broadly based changes in the values of equity and debt securities, redemptions by investors and other factors;
- dependence on Value Line Funds for investment management and related fees;
- competition in the fields of publishing, copyright data and investment management;
- the impact of government regulation on Value Line's business and the uncertainties of litigation and regulatory proceedings;
- terrorist attacks; and
- other risks and uncertainties, including but not limited to the risks described in Item 1A, "Risk Factors" of Value Line's Annual Report on Form 10-K for the year ended April 30, 2010, and other risks and uncertainties from time to time.
Any forward-looking statements are made only as of the date hereof, and Value Line undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Value Line, Inc. Consolidated Condensed Summary of Financial Results (in thousands, except per share amounts)
For the three months ended October 31,
For the six months ended October 31,
Income from securities transactions, net
Income/(loss) before income taxes
Earnings/(loss) per share, basic and fully diluted
SOURCE Value Line, Inc.