Document and Entity Information
Document and Entity Information | 6 Months Ended |
Oct. 31, 2015shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | VALUE LINE INC |
Entity Central Index Key | 717,720 |
Trading Symbol | valu |
Current Fiscal Year End Date | --04-30 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 9,772,161 |
Document Type | 10-Q |
Document Period End Date | Oct. 31, 2015 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q2 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2015 | Apr. 30, 2015 |
Current Assets: | ||
Cash and cash equivalents (including short term investments of $11,179 and $5,272, respectively) | $ 11,583 | $ 5,874 |
Securities available-for-sale | 2,503 | 9,632 |
Accounts receivable, net of allowance for doubtful accounts of $21 and $28, respectively | 1,171 | 1,409 |
Prepaid and refundable income taxes | 103 | 114 |
Prepaid expenses and other current assets | 1,260 | 1,460 |
Deferred income taxes | 360 | 356 |
Total current assets | 16,980 | 18,845 |
Long term assets: | ||
Investment in EAM Trust | 58,071 | 58,048 |
Property and equipment, net | 3,549 | 3,690 |
Capitalized software and other intangible assets, net | 6,480 | 6,838 |
Total long term assets | 68,100 | 68,576 |
Total assets | 85,080 | 87,421 |
Current Liabilities: | ||
Accounts payable and accrued liabilities | 1,625 | 1,787 |
Accrued salaries | 1,071 | 1,219 |
Dividends payable | 1,564 | 1,472 |
Accrued taxes on income | 71 | 226 |
Unearned revenue | 19,305 | 21,510 |
Total current liabilities | 23,636 | 26,214 |
Long term liabilities: | ||
Unearned revenue | 4,742 | 4,537 |
Deferred charges | 67 | 167 |
Deferred income taxes | 21,790 | 22,064 |
Total long term liabilities | 26,599 | 26,768 |
Total liabilities | 50,235 | 52,982 |
Shareholders' Equity: | ||
Common stock, $0.10 par value; authorized 30,000,000 shares; issued 10,000,000 shares | 1,000 | 1,000 |
Additional paid-in capital | 991 | 991 |
Retained earnings | 35,567 | 34,587 |
Treasury stock, at cost (227,839 and 190,504 shares, respectively) | (2,792) | (2,244) |
Accumulated other comprehensive income, net of tax | 79 | 105 |
Total shareholders' equity | 34,845 | 34,439 |
Total liabilities and shareholders' equity | $ 85,080 | $ 87,421 |
Consolidated Condensed Balance3
Consolidated Condensed Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Oct. 31, 2015 | Apr. 30, 2015 |
Statement Of Financial Position [Abstract] | ||
Short term investments (in dollars) | $ 11,179 | $ 5,272 |
Allowance for doubtful accounts (in dollars) | $ 21 | $ 28 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 10,000,000 | 10,000,000 |
Treasury stock, shares | 227,839 | 190,504 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Revenues: | ||||
Investment periodicals and related publications | $ 8,039 | $ 8,547 | $ 16,223 | $ 16,820 |
Copyright data fees | 598 | 714 | 1,246 | 1,511 |
Total revenues | 8,637 | 9,261 | 17,469 | 18,331 |
Expenses: | ||||
Advertising and promotion | 748 | 1,378 | 1,732 | 2,353 |
Salaries and employee benefits | 3,925 | 3,839 | 7,704 | 7,954 |
Production and distribution | 2,065 | 1,759 | 4,030 | 3,399 |
Office and administration | 1,073 | 1,239 | 2,218 | 2,517 |
Total expenses | 7,811 | 8,215 | 15,684 | 16,223 |
Income from operations | 826 | 1,046 | 1,785 | 2,108 |
Revenues and profits interests in EAM Trust | 1,940 | 1,949 | 3,982 | 3,971 |
Income from securities transactions, net | 31 | 66 | 82 | 107 |
Income before income taxes | 2,797 | 3,061 | 5,849 | 6,186 |
Income tax provision | 805 | 1,079 | 1,738 | 2,168 |
Net income | $ 1,992 | $ 1,982 | $ 4,111 | $ 4,018 |
Earnings per share, basic & fully diluted (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.42 | $ 0.41 |
Weighted average number of common shares (in shares) | 9,787,610 | 9,813,875 | 9,795,672 | 9,814,525 |
Consolidated Condensed Stateme5
Consolidated Condensed Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Statement Of Other Comprehensive Income [Abstract] | ||||
Net income | $ 1,992 | $ 1,982 | $ 4,111 | $ 4,018 |
Other comprehensive income (loss), net of tax: | ||||
Change in unrealized gains on securities, net of taxes | 66 | 68 | (26) | (17) |
Other comprehensive income (loss) | 66 | 68 | (26) | (17) |
Comprehensive income | $ 2,058 | $ 2,050 | $ 4,085 | $ 4,001 |
Consolidated Condensed Stateme6
Consolidated Condensed Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 4,111 | $ 4,018 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 1,430 | 1,239 |
Non-voting revenues interest in EAM Trust | (3,721) | (3,636) |
Non-voting profits interest in EAM Trust | (261) | (335) |
Realized losses on securities | 15 | |
Unrealized gains on securities | (30) | (30) |
Deferred rent | (100) | (100) |
Deferred income taxes | (399) | 64 |
Changes in operating assets and liabilities: | ||
Unearned revenue | (2,000) | (1,025) |
Reserve for settlement | (5) | (54) |
Accounts payable & accrued expenses | (157) | (245) |
Accrued salaries | (148) | (266) |
Accrued taxes on income | (19) | 100 |
Prepaid and refundable income taxes | 11 | 15 |
Prepaid expenses and other current assets | 200 | 36 |
Accounts receivable | 238 | (42) |
Total adjustments | (4,946) | (4,279) |
Net cash used in operating activities | (835) | (261) |
Cash flows from investing activities: | ||
Purchases of securities classified as available-for-sale | (1,611) | |
Proceeds from sales of securities available for sale | 8,684 | |
Distributions received from EAM Trust | 3,989 | 3,889 |
Acquisition of property and equipment | (99) | |
Expenditures for capitalized software | (931) | (1,148) |
Net cash provided by investing activities | 10,131 | 2,642 |
Cash flows from financing activities: | ||
Purchase of treasury stock at cost | (548) | (71) |
Dividends paid | (3,039) | (2,944) |
Net cash used in financing activities | (3,587) | (3,015) |
Net change in cash and cash equivalents | 5,709 | (634) |
Cash and cash equivalents at beginning of year | 5,874 | 5,788 |
Cash and cash equivalents at end of period | $ 11,583 | $ 5,154 |
Consolidated Condensed Stateme7
Consolidated Condensed Statement of Changes in Shareholders' Equity (unaudited) - USD ($) $ in Thousands | Common stock | Additional paid-in capital | Treasury Stock | Retained earnings | Accumulated Other Comprehensive income/(loss) | Total |
Balance at Apr. 30, 2014 | $ 1,000 | $ 991 | $ (2,122) | $ 33,183 | $ 246 | $ 33,298 |
Balance (in shares) at Apr. 30, 2014 | 10,000,000 | (182,071) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 4,018 | 4,018 | ||||
Change in unrealized gains on securities, net of taxes | (17) | (17) | ||||
Purchase of treasury stock | $ (71) | (71) | ||||
Purchase of treasury stock (in shares) | (5,061) | |||||
Dividends declared | (2,944) | (2,944) | ||||
Balance at Oct. 31, 2014 | $ 1,000 | 991 | $ (2,193) | 34,257 | 229 | 34,284 |
Balance (in shares) at Oct. 31, 2014 | 10,000,000 | (187,132) | ||||
Balance at Apr. 30, 2015 | $ 1,000 | 991 | $ (2,244) | 34,587 | 105 | 34,439 |
Balance (in shares) at Apr. 30, 2015 | 10,000,000 | (190,504) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 4,111 | 4,111 | ||||
Change in unrealized gains on securities, net of taxes | (26) | (26) | ||||
Purchase of treasury stock | $ (548) | (548) | ||||
Purchase of treasury stock (in shares) | (37,335) | |||||
Dividends declared | (3,131) | (3,131) | ||||
Balance at Oct. 31, 2015 | $ 1,000 | $ 991 | $ (2,792) | $ 35,567 | $ 79 | $ 34,845 |
Balance (in shares) at Oct. 31, 2015 | 10,000,000 | (227,839) |
Consolidated Condensed Stateme8
Consolidated Condensed Statement of Changes in Shareholders' Equity (unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |||
Oct. 31, 2015 | Jul. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | |
Statement Of Stockholders Equity [Abstract] | ||||
Dividends declared per share (in dollars per share) | $ 0.16 | $ 0.16 | $ 0.15 | $ 0.15 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 6 Months Ended |
Oct. 31, 2015 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | Note 1 - Organization and Summary of Significant Accounting Policies: Value Line, Inc. (“Value Line” or “VLI”, and collectively with its subsidiaries, the “Company”) is incorporated in the State of New York. The name “Value Line” as used to describe the Company, its products, and its subsidiaries, is a registered trademark of the Company. The Company’s primary business is producing investment periodicals and related publications and making available copyright data including certain Value Line trademarks and Value Line Proprietary Ranking System information to third parties under written agreements for use in third party managed and marketed investment products. The Consolidated Condensed Balance Sheets as of October 31, 2015 and April 30, 2015, which have been derived from the unaudited interim Consolidated Condensed Financial Statements and the audited Consolidated Financial Statements, respectively, were prepared following the interim reporting requirements of the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying Unaudited Interim Consolidated Condensed Financial Statements contain all adjustments (consisting of normal recurring accruals except as noted below) considered necessary for a fair presentation. This report should be read in conjunction with the audited financial statements and footnotes contained in the Compan’s Annual Report on Form 10-K for the fiscal year ended April 30, 2015 filed with the SEC on July 22, 2015 (the “Form 10-K”). Results of operations covered by this report may not be indicative of the results of operations for the entire year. Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates. Principles of Consolidation: The Company follows the guidance in the Financial Accounting Standards Board’s (“FASB”) Topic 810 “Consolidation” to determine if it should consolidate its investment in a variable interest entity (“VIE”). A VIE is a legal entity in which either (i) equity investors do not have sufficient equity investment at risk to enable the entity to finance its activities independently or (ii) the equity holders at risk lack the obligation to absorb losses, the right to receive residual returns or the right to make decisions about the entity’s activities that most significantly affect the entity’s economic performance. A holder of a variable interest in a VIE is required to consolidate the entity if it is determined that it has a controlling financial interest in the VIE and is therefore the primary beneficiary. The determination of a controlling financial interest in a VIE is based on a qualitative assessment to identify the variable interest holder, if any, that has (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (ii) either the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The accounting guidance requires the Company to perform an ongoing assessment of whether the Company is the primary beneficiary of a VIE and the Company has determined it is not the primary beneficiary of a VIE (see Note 3). In accordance with FASB’s Topic 810, the assets, liabilities, and results of operations of subsidiaries in which the Company has a controlling interest have been consolidated. All significant intercompany accounts and transactions have been eliminated in consolidation. On December 23, 2010, the Company completed the deconsolidation of the investment management related affiliates (the “Restructuring Transaction”) in accordance with FASB’s Topic 810. As part of the Restructuring Transaction, the Company received a significant non-voting revenues interest (excluding distribution revenues) and a significant non-voting profits interest in the new entity, EULAV Asset Management, a Delaware statutory trust (“EAM” or “EAM Trust”). The Company relied on the guidance in FASB’s ASC Topics 323 and 810 in its determination not to consolidate its investment in EAM and to account for such investment under the equity method of accounting. The Company reports the amount it receives for its non-voting revenues and non-voting profits interests as a separate line item below operating income in the Consolidated Condensed Statements of Income. Revenue Recognition: Depending upon the product, subscriptions to Value Line periodicals and related publications are available in print or digitally, via internet access. The length of a subscription varies by product and offer received by the subscriber. Generally, subscriptions are offered as annual subscriptions. Subscription revenues, net of discounts, are recognized ratably on a straight line basis when the product is served to the client over the life of the subscription. Accordingly, the amount of subscription fees to be earned by fulfilling subscriptions after the date of the balance sheets are shown as unearned revenue within current and long term liabilities. Copyright data revenues are derived from providing certain Value Line trademarks and Value Line Proprietary Ranking System information to third parties under written agreements for use in selecting securities for third party marketed products, including unit investment trusts, annuities and exchange traded funds (“ETFs”). The Company earns asset-based copyright data fees as specified in the individual agreements. Revenue is recognized monthly over the term of the agreement and, because it is asset-based, will fluctuate as the market value of the underlying portfolio increases or decreases in value. Investment in Unconsolidated Entities: The Company accounts for its investment in its unconsolidated entity, EAM, using the equity method of accounting in accordance with FASB’s ASC 323. The equity method is an appropriate means of recognizing increases or decreases measured by GAAP in the economic resources underlying the investments. Under the equity method, an investor recognizes its share of the earnings or losses of an investee in the periods for which they are reported by the investee in its financial statements rather than in the period in which an investee declares a dividend or distribution. An investor adjusts the carrying amount of an investment for its share of the earnings or losses recognized by the investee. The Company’s “interests” in EAM, the investment adviser to and the sole member of the distributor of the Value Line Funds, consist of a “non-voting revenues interest” and a “non-voting profits interest” in EAM as defined in the EAM Trust Agreement. The non-voting revenues interest entitles the Company to receive a range of 41% to 55%, based on the amount of EAM’s adjusted gross revenues, excluding ES’s distribution revenues (“Revenues Interest”). The non-voting profits interest entitles the Company to receive 50% of EAM’s profits, subject to certain limited adjustments as defined in the EAM Trust Agreement (“Profits Interest”). 100% of the Revenues Interest and not less than 90% of the Profits Interest are to be distributed each quarter to all interest holders of EAM, including Value Line. Subsequent to the Restructuring Date, the Company’s Revenues Interest in EAM excludes participation in the service and distribution fees of EAM’s subsidiary ES. The Company reflects its non-voting revenues and non-voting profits interests in EAM as non-operating income under the equity method of accounting subsequent to the Restructuring Transaction. Although the Company does not have control over the operating and financial policies of EAM, pursuant to the EAM Trust Agreement, the Company has a contractual right to receive its share of EAM’s revenues and profits. Valuation of Securities: The Company’s securities classified as cash equivalents and available-for-sale consist of shares of money market funds that invest primarily in short-term U.S. Government securities, investments in equity securities including Exchange traded funds (“ETFs”), and deposits in savings accounts at large commercial banks and are valued in accordance with the requirements of the Fair Value Measurements Topic of the FASB’s ASC 820. The securities classified as available-for-sale reflected in the Consolidated Condensed Balance Sheets are valued at market and unrealized gains and losses, net of applicable taxes, are reported as a separate component of shareholders’ equity. Realized gains and losses on sales of the securities classified as available-for-sale are recorded in earnings as of the trade date and are determined on the identified cost method. The Company classifies its securities available-for-sale as current assets to properly reflect its liquidity and to recognize the fact that it has liquid assets available-for-sale should the need arise. Market valuations of securities listed on a securities exchange and ETF shares are based on the closing sales prices on the last business day of each month. The market values of fixed maturity U.S. Government debt securities are determined utilizing publicly quoted market prices. Cash equivalents consist of investments in money market funds that invest primarily in U.S. Government securities valued in accordance with rule 2a-7 under the 1940 Act. The Fair Value Measurements Topic of FASB’s ASC 820 defines fair value as the price that the Company would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market for the investment. The Fair Value Measurements Topic established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the information that market participants would use in pricing the asset or liability, including assumptions about risk. Examples of risks include those inherent in a particular valuation technique used to measure fair value such as the risk inherent in the inputs to the valuation technique. Inputs are classified as observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the factors market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below. Level 1 – quoted prices in active markets for identical investments Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) Level 3 – significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments) The following summarizes the levels of fair value measurements of the Company’s investments: As of October 31, 2015 ($ in thousands) Level 1 Level 2 Level 3 Total Cash equivalents $ 11,179 $ - $ - $ 11,179 Securities available-for-sale 2,503 - - 2,503 $ 13,682 $ - $ - $ 13,682 As of April 30, 2015 ($ in thousands) Level 1 Level 2 Level 3 Total Cash equivalents $ 5,272 $ - $ - $ 5,272 Securities available-for-sale 9,632 - - 9,632 $ 14,904 $ - $ - $ 14,904 The Company had no other financial instruments such as futures, forwards and swap contracts. For the periods ended October 31, 2015 and April 30, 2015, there were no Level 2 nor Level 3 investments. The Company does not have any liabilities subject to fair value measurement. Advertising expenses: The Company expenses advertising costs as incurred. Income Taxes: The Company computes its income tax provision in accordance with the Income Tax Topic of the FASB’s ASC. Deferred tax liabilities and assets are recognized for the expected future tax consequences of events that have been reflected in the Consolidated Condensed Financial Statements. Deferred tax liabilities and assets are determined based on the differences between the book values and the tax bases of particular assets and liabilities, using tax rates currently in effect for the years in which the differences are expected to reverse. The Income Tax Topic of the FASB’s ASC establishes for all entities, a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures. As of October 31, 2015, management has reviewed the tax positions for the years still subject to tax audit under the statute of limitations, evaluated the implications, and determined that there is no material impact to the Company’s financial statements. Earnings per share: Earnings per share are based on the weighted average number of shares of common stock and common stock equivalents outstanding during each period. Any shares that are reacquired during the period are weighted for the portion of the period that they are outstanding. The Company does not have any potentially dilutive common shares from outstanding stock options, warrants, restricted stock, or restricted stock units. Cash and Cash Equivalents: For purposes of the Consolidated Condensed Statements of Cash Flows, the Company considers all cash held at banks and short term liquid investments with an original maturity of less than three months to be cash and cash equivalents. As of October 31, 2015 and April 30, 2015, cash equivalents included $11,179,000 and $5,272,000, respectively, for amounts invested in savings accounts at commercial banks and investments in money market mutual funds that invest in short term U.S. government securities. |
Investments
Investments | 6 Months Ended |
Oct. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Note 2 - Investments: Securities Available-for-Sale: Investments held by the Company and its subsidiaries are classified as securities available-for-sale in accordance with FASB’s ASC 320, Investments - Debt and Equity Securities. All of the Company’s securities classified as available-for-sale are readily marketable and have a maturity of twelve months or less and are classified as current assets on the Consolidated Condensed Balance Sheets. Equity Securities: Equity securities classified as available-for-sale on the Consolidated Condensed Balance Sheets, consist 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. As of October 31, 2015 and April 30, 2015, the aggregate cost of the equity securities classified as available-for-sale, which consist of investments in the SPDR Series Trust S&P Dividend ETF (SDY), First Trust Value Line Dividend Index ETF (FVD), PowerShares Financial Preferred ETF (PGF), small, mid and large cap high dividend yielding ETFs, and conservative equity ETFs (VLSM, VLML, VLLV), was $2,381,000 and $9,470,000, respectively, and the fair value was $2,503,000 and $9,632,000, respectively. Proceeds from sales of equity securities classified as available-for-sale during the six months ended October 31, 2015 were $8,684,000 and the related capital losses of $15,000 were reclassified from Accumulated Other Comprehensive Income in the Consolidated Condensed Balance Sheet to the Consolidated Condensed Statement of Income. During the second quarter ended October 31, 2015, the Company made a decision to sell the dividend paying ETF and non dividend paying inverse ETF positions. There were no sales or proceeds from sales of equity securities during the six months ended October 31, 2014. The decrease in gross unrealized gains on equity securities classified as available-for-sale of $55,000, net of deferred taxes of $19,000 was included in Shareholders’ Equity at October 31, 2015. The decrease in gross unrealized gains on equity securities classified as available-for-sale of $27,000, net of deferred taxes of $10,000 was included in Shareholders’ Equity at October 31, 2014. The changes in the value of equity securities investments are recorded in Other Comprehensive Income in the Consolidated Condensed Financial Statements. Realized gains and losses are recorded as of the trade date in the Consolidated Condensed Statements of Income when securities are sold, mature or are redeemed. As of October 31, 2015 and April 30, 2015, accumulated other comprehensive income included net unrealized gains of $122,000 and $162,000, net of deferred taxes of $43,000 and $57,000, respectively. The carrying value and fair value of securities available-for-sale at October 31, 2015 were as follows: ($ in thousands) Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value ETFs - equities 2,381 125 (3 ) 2,503 $ 2,381 $ 125 $ (3 ) $ 2,503 The carrying value and fair value of securities available-for-sale at April 30, 2015 were as follows: ($ in thousands) Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Common stocks $ 101 $ 74 $ - $ 175 ETFs - equities 3,903 1,508 - 5,411 Inverse ETFs - equities 5,466 - (1,420 ) 4,046 $ 9,470 $ 1,582 $ (1,420 ) $ 9,632 Income from Securities Transactions: Income from securities transactions was comprised of the following: Three Months Ended October 31, Six Months Ended October 31, ($ in thousands) 2015 2014 2015 2014 Dividend income $ 38 $ 39 $ 80 $ 77 Interest income - - - 3 Capital loss (15 ) - (15 ) - Other 8 27 17 27 Total income from securities transactions, net $ 31 $ 66 $ 82 $ 107 Investment in Unconsolidated Entities: Equity Method Investment: As of October 31, 2015 and April 30, 2015, the Company’s investment in EAM Trust, on the Consolidated Condensed Balance Sheets was $58,071,000 and $58,048,000, respectively. The value of VLI’s investment in EAM at October 31, 2015 and April 30, 2015 reflects the fair value of contributed capital of $55,805,000 at inception which included $5,820,000 of cash and liquid securities in excess of working capital requirements contributed to EAM’s capital account by VLI, plus VLI’s share of non-voting revenues and non-voting profits from EAM less distributions, made quarterly to VLI by EAM, during the period subsequent to its initial investment through the dates of the Consolidated Condensed Balance Sheets. It is anticipated that EAM will have sufficient liquidity and earn enough profit to conduct its current and future operations so the management of EAM will not need additional funding. The Company monitors its Investment in EAM Trust for impairment to determine whether an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of the investment. Impairment indicators include, but are not limited to the following: (a) a significant deterioration in the earnings performance, asset quality, or business prospects of the investee, (b) a significant adverse change in the regulatory, economic, or technological environment of the investee, (c) a significant adverse change in the general market condition of the industry in which the investee operates, or (d) factors that raise significant concerns about the investee’s ability to continue as a going concern such as negative cash flows, working capital deficiencies, or noncompliance with statutory capital and regulatory requirements. EAM did not record any impairment losses for its assets during the fiscal years 2016 or 2015. The components of EAM’s investment management operations, provided to the Company by EAM, were as follows: Three Months Ended October 31, Six Months Ended October 31, ($ in thousands) (unaudited) 2015 2014 2015 2014 Investment management fees earned from the Value Line Funds, net of fee waivers $ 3,653 $ 3,690 $ 7,491 $ 7,477 12b-1 fees and other fees, net of fee waivers $ 1,442 $ 1,349 $ 2,838 $ 2,709 Other income (loss) $ (18 ) $ 4 $ (27 ) $ 9 Investment management fee waivers (1) $ 48 $ 62 $ 95 $ 90 12b-1 fee waivers (1) $ 242 $ 374 $ 613 $ 769 Value Line’s non-voting revenues interest $ 1,819 $ 1,803 $ 3,721 $ 3,636 EAM’s net income (2) $ 242 $ 292 $ 522 $ 670 (1) During fiscal 2016 investment management fee waivers primarily related to the Value Line Core Bond Fund and the 12b-1 fee waivers related to four of the Value Line Mutual Funds. During fiscal 2015 investment management fee waivers primarily related to the Value Line Core Bond Fund and the 12b-1 fee waivers related to six of the Value Line Mutual Funds. (2) Represents EAM’s net income, after giving effect to Value Line’s non-voting revenues interest, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest. ($ in thousands) October 31, 2015 April 30, 2015 (unaudited) EAM’s total assets $ 60,193 $ 60,159 EAM’s total liabilities (1) (3,021 ) (3,104 ) EAM’s total equity $ 57,172 $ 57,055 (1) At October 31, 2015 and April 30, 2015, EAM’s total liabilities included a payable to VLI for its accrued non-voting revenues, interest and the 90% distributable share of its non-voting profits interest of $1,927,000 and $1,951,000, respectively. |
Variable Interest Entity
Variable Interest Entity | 6 Months Ended |
Oct. 31, 2015 | |
Variable Interest Entity [Abstract] | |
Variable Interest Entity | Note 3 - Variable Interest Entity The Company retained a non-voting revenues interest and a 50% non-voting profits interest in EAM, which was formed, as a result of the Restructuring Transaction on December 23, 2010, to carry on the asset management and mutual fund distribution businesses formerly conducted by the Company. EAM is considered to be a VIE. The Company makes its determination for consolidation of EAM as a VIE based on a qualitative assessment of the purpose and design of EAM, the terms and characteristics of the variable interests in EAM, and the risks EAM is designed to originate and pass through to holders of variable interests. Other than EAM, the Company does not have an interest in any other VIEs. The Company has determined that it does not have a controlling financial interest in EAM because it does not have the power to direct the activities of EAM that most significantly impact its economic performance. Value Line does not hold any voting stock of EAM and it does not have any involvement in the day-to-day activities or operations of EAM. Although the EAM Trust Agreement provides Value Line with certain consent rights and contains certain restrictive covenants related to the activities of EAM, these are considered to be protective rights and therefore Value Line does not maintain control over EAM. In addition, although EAM is expected to be profitable, there is a risk that it could operate at a loss. While all of the profit interest shareholders in EAM are subject to variability based on EAM’s operations risk, Value Line’s non-voting revenues interest in EAM is a preferred interest in the revenues of EAM, rather than a profits interest in EAM, and Value Line accordingly believes it is subject to proportionately less risk than other holders of the profits interests. The Company has not provided any explicit or implicit financial or other support to EAM other than what was contractually agreed to in the EAM Trust Agreement. Value Line has no obligation to fund EAM in the future and, as a result, has no exposure to loss beyond its initial investment and any undistributed revenues and profits interests retained in EAM. The following table presents the total assets of EAM, the maximum exposure to loss due to involvement with EAM, as well as the value of the assets and liabilities the Company has recorded on its Consolidated Condensed Balance Sheets for its interest in EAM. Value Line ($ in thousands) VIE Assets Investment in EAM Trust (1) Liabilities Maximum Exposure to Loss As of October 31, 2015 (unaudited) $ 60,193 $ 58,071 $ - $ 58,071 As of April 30, 2015 $ 60,159 $ 58,048 $ - $ 58,048 (1) Reported within Long Term Assets on the Consolidated Condensed Balance Sheets. |
Supplementary Cash Flow Informa
Supplementary Cash Flow Information | 6 Months Ended |
Oct. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplementary Cash Flow Information | Note 4 - Supplementary Cash Flow Information: Six Months Ended October 31, ($ in thousands) 2015 2014 State and local income tax payments $ 153 $ 116 Federal income tax payments to the Parent $ 1,990 $ 1,850 |
Employees' Profit Sharing and S
Employees' Profit Sharing and Savings Plan | 6 Months Ended |
Oct. 31, 2015 | |
Compensation Related Costs [Abstract] | |
Employees' Profit Sharing and Savings Plan | Note 5 - Employees’ Profit Sharing and Savings Plan: Substantially all employees of the Company and its subsidiaries are members of the Value Line, Inc. Profit Sharing and Savings Plan (the “Plan”). In general, this is a qualified, contributory plan which provides for a discretionary annual Company contribution which is determined by a formula based on the salaries of eligible employees and the amount of consolidated net operating income as defined in the Plan. For the six months ended October 31, 2015 and October 31, 2014, the estimated profit sharing plan contribution, which is included as an expense in salaries and employee benefits in the Consolidated Condensed Statements of Income, was $200,000 both years. |
Comprehensive Income
Comprehensive Income | 6 Months Ended |
Oct. 31, 2015 | |
Comprehensive Income (Loss) Note [Abstract] | |
Comprehensive Income | Note 6 - Comprehensive Income: The FASB’s ASC Comprehensive Income topic requires the reporting of comprehensive income in addition to net income from operations. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that otherwise would not be recognized in the calculation of net income. Beginning in fiscal 2013, the Company adopted the provisions of Accounting Standards Update 2011-05 to reflect comprehensive income in two statements which include the components of net income and total net income in the first statement, immediately followed by a financial statement that presents the components of other comprehensive income, a total for other comprehensive income and a total for comprehensive income. As of October 31, 2015 and October 31, 2014, the Company held equity securities consisting primarily of ETFs with high relative dividend yields that are classified as securities available-for-sale on the Consolidated Condensed Balance Sheets. The change in valuation of these securities, net of deferred income taxes, has been recorded in accumulated other comprehensive income in the Company’s Consolidated Condensed Balance Sheets. The components of comprehensive income included in the Consolidated Condensed Statements of Income and Changes in Shareholders’ Equity for the six months ended October 31, 2015 are as follows: ($ in thousands) Amount Before Tax Tax Benefit Amount Net of Tax Change in unrealized gains on securities $ (55 ) $ 19 $ (36 ) Add: Losses realized in net income $ 15 $ (5 ) $ 10 $ (40 ) $ 14 $ (26 ) The components of comprehensive income included in the Consolidated Condensed Statements of Income and Changes in Shareholders’ Equity for the six months ended October 31, 2014 are as follows: ($ in thousands) Amount Before Tax Tax Benefit Amount Net of Tax Change in unrealized gains on securities $ (27 ) $ 10 $ (17 ) $ (27 ) $ 10 $ (17 ) |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Oct. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 7 - Related Party Transactions: Investment Management (overview): The Company has a substantial non-voting revenues and non-voting profits interests in EAM, the asset manager to the Value Line Mutual Funds. Accordingly, the Company does not report this operation as a separate business segment, although it maintains a significant interest in the cash flows generated by this business and will receive ongoing payments in respect of its non-voting revenues and non-voting profits interests. Total assets in the Value Line Funds managed and/or distributed by EAM at October 31, 2015, were $2.29 billion, 2.1% below total assets of $2.34 billion in the Value Line Funds managed and/or distributed by EAM at October 31, 2014. The Company’s non-voting revenues and non-voting profits interests in EAM entitle it to receive quarterly distributions in a range of 41% to 55% of EAM’s revenues (excluding distribution revenues) from EAM’s mutual fund business and not less than 90% of the Company’s 50% interest in the residual profits of EAM which are payable each fiscal quarter under the provisions of the EAM Trust Agreement. Value Line’s percent share of EAM’s revenues calculated each fiscal quarter was 50.05% and 50.16% during the first and second quarters of fiscal 2016, respectively, and 49.18% and 49.63% during the first and second quarters of fiscal 2015, respectively. The distributable amounts earned through the balance sheet date, which is included in the Investment in EAM Trust on the Consolidated Condensed Balance Sheets, and not yet paid, were $1,927,000 and $1,951,000 at October 31, 2015 and April 30, 2015, respectively. EAM Trust - VLI’s non-voting revenues and non-voting profits interests: The Company holds non-voting revenues and non-voting profits interests in EAM which entitle the Company to receive from EAM an amount ranging from 41% to 55% of EAM’s investment management fee revenues from its mutual fund and separate accounts business. EAM currently has no separately managed account clients. The Company recorded income from its non-voting revenues interest and its non-voting profits interest in EAM as follows: Three Months Ended October 31, Six Months Ended October 31, ($ in thousands) 2015 2014 2015 2014 Non-voting revenues interest in EAM $ 1,819 $ 1,803 $ 3,721 $ 3,636 Non-voting profits interest in EAM 121 146 261 335 $ 1,940 $ 1,949 $ 3,982 $ 3,971 Transactions with Parent: During the six months ended October 31, 2015 and October 31, 2014, the Company was reimbursed $65,000 and $71,000, respectively, for payments it made on behalf of and for services the Company provided to the Parent. There were no receivables from affiliates including receivables from the Parent on the Consolidated Condensed Balance Sheets at October 31, 2015 and April 30, 2015. The Company is a party to a tax-sharing arrangement with the Parent which allocates the tax liabilities of the two Companies between them. The Company made federal tax payments of $1,990,000 and $1,850,000 to the Parent during the six months ended October 31, 2015 and October 31, 2014, respectively. From time to time, the Parent has purchased additional shares of common stock of the Company in the market when and as the Parent has determined it to be appropriate. The Parent may make additional purchases of common stock of the Company from time to time in the future. As of October 31, 2015, the Parent owned 88.35% of the outstanding shares of common stock of the Company. |
Federal, State and Local Income
Federal, State and Local Income Taxes | 6 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Federal, State and Local Income Taxes | Note 8 - Federal, State and Local Income Taxes: In accordance with the requirements of the Income Tax Topic of the FASB’s ASC, the Company’s provision for income taxes includes the following: Three Months Ended October 31, Six Months Ended October 31, ($ in thousands) 2015 2014 2015 2014 Current tax expense: Federal $ 986 $ 1,083 $ 2,010 $ 1,952 State and local 55 62 127 152 Current tax expense 1,041 1,145 2,137 2,104 Deferred tax expense (benefit): Federal (166 ) (106 ) (178 ) - State and local (70 ) 40 (221 ) 64 Deferred tax expense (benefit): (236 ) (66 ) (399 ) 64 Income tax provision $ 805 $ 1,079 $ 1,738 $ 2,168 Deferred income taxes are provided for temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. The tax effect of temporary differences giving rise to the Company’s deferred tax asset and deferred tax liability are as follows: ($ in thousands) October 31, April 30, Federal tax benefit (liability): Unrealized gains on securities available-for-sale $ (43 ) $ (57 ) Operating lease deferred obligation 94 70 Deferred professional fees 76 34 Deferred charges 199 263 Total federal tax benefit 326 310 State and local tax benefits: Other 34 46 Total state and local tax benefits 34 46 Deferred tax asset, short term $ 360 $ 356 ($ in thousands) October 31, April 30, Federal tax liability (benefit): Deferred gain on deconsolidation of EAM $ 17,711 $ 17,679 Deferred non-cash post-employment compensation (619 ) (619 ) Depreciation and amortization 2,342 2,435 Other 460 401 Total federal tax liability 19,894 19,896 State and local tax liabilities (benefits): Deferred gain on deconsolidation of EAM 1,735 1,970 Deferred non-cash post-employment compensation (61 ) (69 ) Depreciation and amortization 229 271 Deferred professional fees (7 ) (4 ) Total state and local tax liabilities 1,896 2,168 Deferred tax liability, long term $ 21,790 $ 22,064 At the end of each interim reporting period, the Company estimates the effective income tax rate to apply for the full fiscal year. The Company uses the effective income tax rate determined to provide for income taxes on a year-to-date basis and reflects the tax effect of any tax law changes and certain other discrete events in the period in which they occur. The overall effective income tax rates, as a percentage of pre-tax ordinary income for the six months ended October 31, 2015 and October 31, 2014 were 29.71% and 35.05%, respectively. The Company’s annual effective tax rate will change due to a number of factors including but not limited to an increase or decrease in the ratio of items that do not have tax consequences to pre-tax income, the Company’s geographic profit mix between tax jurisdictions, new tax laws, new interpretations of existing tax laws and rulings and settlements with tax authorities. The fluctuation in the effective income tax rate during fiscal 2016 is primarily attributable to the affect from the scheduled reduction in the allocation factors on the state and local current and deferred tax liability (primarily associated with the gain on deconsolidation of EAM), dividend exclusion and an increase in the domestic production tax credits. The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory income tax rate to pretax income as a result of the following: Six Months Ended October 31, 2015 2014 U.S. statutory federal rate 35.00 % 35.00 % Increase (decrease) in tax rate from: State and local income taxes, net of federal income tax benefit -2.48 % 2.27 % Effect of dividends received deductions -0.32 % -0.29 % Domestic production tax credit -0.62 % -0.65 % Other, net -1.87 % -1.28 % Effective income tax rate 29.71 % 35.05 % The Company believes that, as of October 31, 2015, there were no material uncertain tax positions that would require disclosure under GAAP. The Company is included in the consolidated federal income tax return of the Parent. The Company has a tax sharing agreement which requires it to make tax payments to the Parent equal to the Company’s liability/(benefit) as if it filed a separate return. The Company’s federal income tax returns (included in the Parent’s consolidated returns) and state and city tax returns for fiscal years 2014, 2013, and 2012, are subject to examination by the tax authorities, generally for six years after they were filed with the tax authorities. The Company’s tax returns for the fiscal years ended April 30, 2013 and 2012 are being examined by the Internal Revenue Service (IRS) and by New York City (NYC). The Company does not expect the audit examinations to have a material effect on its financial statements. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Oct. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 9 - Property and Equipment: Property and equipment are carried at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the assets, or in the case of leasehold improvements, over the remaining terms of the leases. For income tax purposes, depreciation of furniture and equipment is computed using accelerated methods and buildings and leasehold improvements are depreciated over prescribed extended tax lives. Property and equipment, net, on the Consolidated Condensed Balance Sheets was comprised of the following: ($ in thousands) October 31, 2015 April 30, 2015 Land $ 726 $ 726 Building and leasehold improvements 5,037 5,037 Furniture and equipment 4,085 4,084 9,848 9,847 Accumulated depreciation and amortization (6,299 ) (6,157 ) Total property and equipment, net $ 3,549 $ 3,690 |
Accounting for the Costs of Com
Accounting for the Costs of Computer Software Developed for Internal Use | 6 Months Ended |
Oct. 31, 2015 | |
Internal Use Software [Abstract] | |
Accounting for the Costs of Computer Software Developed for Internal Use | Note 10 - Accounting for the Costs of Computer Software Developed for Internal Use: The Company has adopted the provisions of the Statement of Position 98-1 (SOP 98-1), “Accounting for the Costs of Computer Software Developed for Internal Use”. SOP 98-1 requires companies to capitalize as long-lived assets many of the costs associated with developing or obtaining software for internal use and amortize those costs over the software’s estimated useful life in a systematic and rational manner. The Company capitalized $931,000 and $1,148,000 related to the development of software for internal use for the six months ended October 31, 2015 and 2014, respectively. Capitalized software includes $675,000 and $710,000 of internal costs to develop software and $256,000 and $438,000 of third party programmers’ costs for the six months ended October 31, 2015, and October 31, 2014, respectively. Such costs are capitalized and amortized over the expected useful life of the asset which is 5 years. Total amortization expenses for the six months ended October 31, 2015 and October 31, 2014, were $1,289,000 and $1,093,000, respectively. |
Treasury Stock and Repurchase P
Treasury Stock and Repurchase Program | 6 Months Ended |
Oct. 31, 2015 | |
Treasury Stock [Abstract] | |
Treasury Stock and Repurchase Program | Note 11 - Treasury Stock and Repurchase Program: On September 19, 2012, 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. 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. Treasury stock, at cost, consists of the following: (in thousands except for shares and cost per share) Shares Total Average Cost Assigned Average Cost per Share Aggregate Purchase Price Remaining Under the Program Balance as of April 30, 2015 (1)(2) 190,504 $ 2,244 $ 11.78 $ 2,146 Purchases effected in open market during the quarters ended: July 31, 2015 (2) 12,237 $ 166 $ 13.58 $ 1,980 October 31, 2015 (2) 25,098 $ 382 $ 15.23 $ 1,598 Balance as of October 31, 2015 227,839 $ 2,792 $ 12.25 $ 1,598 (1) Includes 85,219 shares with a total average cost of $1,036,000 that were acquired during the former repurchase program, which was authorized in January 2011 and expired in January 2012; 18,400 shares were acquired prior to the repurchase program authorized in January 2011. (2) Were acquired during the $3 million repurchase program authorized in September 2012. |
Lease Commitments
Lease Commitments | 6 Months Ended |
Oct. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Commitments | Note 12 - Lease Commitments: On February 7, 2013, the Company and Citibank, N.A. (the “Sublandlord”) entered into a sublease agreement, pursuant to which Value Line has leased approximately 44,493 square feet of office space located on the ninth floor at 485 Lexington Ave., New York, NY (“Building” or “Premises”) beginning on July 1, 2013 and ending on February 27, 2017 (“Sublease”). On August 16, 2013, the Company moved to the Building which became its new corporate office facility. Base rent under the Sublease is $1,468,269 per annum, subject to customary concessions in the Company’s favor and pass-through of certain increases in operating costs and real estate taxes. The Company provided a security deposit in cash in the amount of $489,423, which is to be partially returned over the course of the sublease term with the remainder returnable at the end of the lease. In March 2015 the Company received from sublandlord $122,355 that represented a partial return of the security deposit. The Company is required to pay for certain operating expenses associated with the Premises as well as utilities supplied to the Premises. The Sublease terms have provided for a significant decrease in the Company’s annual rental expenses as compared to the space previously occupied. The Company recorded a deferred charge on its Consolidated Condensed Balance Sheets to reflect the excess of annual rental expense over cash payments since inception of the lease due to free rent for the first six months of the sublease. The total amount of the base rent payments is being charged to expense on the straight-line method over the term of the lease. Future minimum payments, exclusive of potential increases in real estate taxes and operating cost escalations, under operating leases for office space, with remaining terms of one year or more, are as follows: Fiscal Years Ended April 30, Sublease ($ in thousands) 2016 $ 1,468 2017 1,224 2018 and thereafter - $ 2,692 For the six months ended October 31, 2015 and 2014, rental expenses were $634,000 both years. |
Organization and Summary of S21
Organization and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Oct. 31, 2015 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates. |
Principles of Consolidation | Principles of Consolidation: The Company follows the guidance in the Financial Accounting Standards Board’s (“FASB”) Topic 810 “Consolidation” to determine if it should consolidate its investment in a variable interest entity (“VIE”). A VIE is a legal entity in which either (i) equity investors do not have sufficient equity investment at risk to enable the entity to finance its activities independently or (ii) the equity holders at risk lack the obligation to absorb losses, the right to receive residual returns or the right to make decisions about the entity’s activities that most significantly affect the entity’s economic performance. A holder of a variable interest in a VIE is required to consolidate the entity if it is determined that it has a controlling financial interest in the VIE and is therefore the primary beneficiary. The determination of a controlling financial interest in a VIE is based on a qualitative assessment to identify the variable interest holder, if any, that has (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (ii) either the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The accounting guidance requires the Company to perform an ongoing assessment of whether the Company is the primary beneficiary of a VIE and the Company has determined it is not the primary beneficiary of a VIE (see Note 3). In accordance with FASB’s Topic 810, the assets, liabilities, and results of operations of subsidiaries in which the Company has a controlling interest have been consolidated. All significant intercompany accounts and transactions have been eliminated in consolidation. On December 23, 2010, the Company completed the deconsolidation of the investment management related affiliates (the “Restructuring Transaction”) in accordance with FASB’s Topic 810. As part of the Restructuring Transaction, the Company received a significant non-voting revenues interest (excluding distribution revenues) and a significant non-voting profits interest in the new entity, EULAV Asset Management, a Delaware statutory trust (“EAM” or “EAM Trust”). The Company relied on the guidance in FASB’s ASC Topics 323 and 810 in its determination not to consolidate its investment in EAM and to account for such investment under the equity method of accounting. The Company reports the amount it receives for its non-voting revenues and non-voting profits interests as a separate line item below operating income in the Consolidated Condensed Statements of Income. |
Revenue Recognition | Revenue Recognition: Depending upon the product, subscriptions to Value Line periodicals and related publications are available in print or digitally, via internet access. The length of a subscription varies by product and offer received by the subscriber. Generally, subscriptions are offered as annual subscriptions. Subscription revenues, net of discounts, are recognized ratably on a straight line basis when the product is served to the client over the life of the subscription. Accordingly, the amount of subscription fees to be earned by fulfilling subscriptions after the date of the balance sheets are shown as unearned revenue within current and long term liabilities. Copyright data revenues are derived from providing certain Value Line trademarks and Value Line Proprietary Ranking System information to third parties under written agreements for use in selecting securities for third party marketed products, including unit investment trusts, annuities and exchange traded funds (“ETFs”). The Company earns asset-based copyright data fees as specified in the individual agreements. Revenue is recognized monthly over the term of the agreement and, because it is asset-based, will fluctuate as the market value of the underlying portfolio increases or decreases in value. |
Investment in Unconsolidated Entities | Investment in Unconsolidated Entities: The Company accounts for its investment in its unconsolidated entity, EAM, using the equity method of accounting in accordance with FASB’s ASC 323. The equity method is an appropriate means of recognizing increases or decreases measured by GAAP in the economic resources underlying the investments. Under the equity method, an investor recognizes its share of the earnings or losses of an investee in the periods for which they are reported by the investee in its financial statements rather than in the period in which an investee declares a dividend or distribution. An investor adjusts the carrying amount of an investment for its share of the earnings or losses recognized by the investee. The Company’s “interests” in EAM, the investment adviser to and the sole member of the distributor of the Value Line Funds, consist of a “non-voting revenues interest” and a “non-voting profits interest” in EAM as defined in the EAM Trust Agreement. The non-voting revenues interest entitles the Company to receive a range of 41% to 55%, based on the amount of EAM’s adjusted gross revenues, excluding ES’s distribution revenues (“Revenues Interest”). The non-voting profits interest entitles the Company to receive 50% of EAM’s profits, subject to certain limited adjustments as defined in the EAM Trust Agreement (“Profits Interest”). 100% of the Revenues Interest and not less than 90% of the Profits Interest are to be distributed each quarter to all interest holders of EAM, including Value Line. Subsequent to the Restructuring Date, the Company’s Revenues Interest in EAM excludes participation in the service and distribution fees of EAM’s subsidiary ES. The Company reflects its non-voting revenues and non-voting profits interests in EAM as non-operating income under the equity method of accounting subsequent to the Restructuring Transaction. Although the Company does not have control over the operating and financial policies of EAM, pursuant to the EAM Trust Agreement, the Company has a contractual right to receive its share of EAM’s revenues and profits. |
Valuation of Securities | Valuation of Securities: The Company’s securities classified as cash equivalents and available-for-sale consist of shares of money market funds that invest primarily in short-term U.S. Government securities, investments in equity securities including Exchange traded funds (“ETFs”), and deposits in savings accounts at large commercial banks and are valued in accordance with the requirements of the Fair Value Measurements Topic of the FASB’s ASC 820. The securities classified as available-for-sale reflected in the Consolidated Condensed Balance Sheets are valued at market and unrealized gains and losses, net of applicable taxes, are reported as a separate component of shareholders’ equity. Realized gains and losses on sales of the securities classified as available-for-sale are recorded in earnings as of the trade date and are determined on the identified cost method. The Company classifies its securities available-for-sale as current assets to properly reflect its liquidity and to recognize the fact that it has liquid assets available-for-sale should the need arise. Market valuations of securities listed on a securities exchange and ETF shares are based on the closing sales prices on the last business day of each month. The market values of fixed maturity U.S. Government debt securities are determined utilizing publicly quoted market prices. Cash equivalents consist of investments in money market funds that invest primarily in U.S. Government securities valued in accordance with rule 2a-7 under the 1940 Act. The Fair Value Measurements Topic of FASB’s ASC 820 defines fair value as the price that the Company would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market for the investment. The Fair Value Measurements Topic established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the information that market participants would use in pricing the asset or liability, including assumptions about risk. Examples of risks include those inherent in a particular valuation technique used to measure fair value such as the risk inherent in the inputs to the valuation technique. Inputs are classified as observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the factors market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below. Level 1 – quoted prices in active markets for identical investments Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) Level 3 – significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments) The following summarizes the levels of fair value measurements of the Company’s investments: As of October 31, 2015 ($ in thousands) Level 1 Level 2 Level 3 Total Cash equivalents $ 11,179 $ - $ - $ 11,179 Securities available-for-sale 2,503 - - 2,503 $ 13,682 $ - $ - $ 13,682 As of April 30, 2015 ($ in thousands) Level 1 Level 2 Level 3 Total Cash equivalents $ 5,272 $ - $ - $ 5,272 Securities available-for-sale 9,632 - - 9,632 $ 14,904 $ - $ - $ 14,904 The Company had no other financial instruments such as futures, forwards and swap contracts. For the periods ended October 31, 2015 and April 30, 2015, there were no Level 2 nor Level 3 investments. The Company does not have any liabilities subject to fair value measurement. |
Advertising expenses | Advertising expenses: The Company expenses advertising costs as incurred. |
Income Taxes | Income Taxes: The Company computes its income tax provision in accordance with the Income Tax Topic of the FASB’s ASC. Deferred tax liabilities and assets are recognized for the expected future tax consequences of events that have been reflected in the Consolidated Condensed Financial Statements. Deferred tax liabilities and assets are determined based on the differences between the book values and the tax bases of particular assets and liabilities, using tax rates currently in effect for the years in which the differences are expected to reverse. The Income Tax Topic of the FASB’s ASC establishes for all entities, a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures. As of October 31, 2015, management has reviewed the tax positions for the years still subject to tax audit under the statute of limitations, evaluated the implications, and determined that there is no material impact to the Company’s financial statements. |
Earnings per share | Earnings per share: Earnings per share are based on the weighted average number of shares of common stock and common stock equivalents outstanding during each period. Any shares that are reacquired during the period are weighted for the portion of the period that they are outstanding. The Company does not have any potentially dilutive common shares from outstanding stock options, warrants, restricted stock, or restricted stock units. |
Cash and Cash Equivalents | Cash and Cash Equivalents: For purposes of the Consolidated Condensed Statements of Cash Flows, the Company considers all cash held at banks and short term liquid investments with an original maturity of less than three months to be cash and cash equivalents. As of October 31, 2015 and April 30, 2015, cash equivalents included $11,179,000 and $5,272,000, respectively, for amounts invested in savings accounts at commercial banks and investments in money market mutual funds that invest in short term U.S. government securities. |
Organization and Summary of S22
Organization and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
Schedule of levels of fair value measurements of investments | As of October 31, 2015 ($ in thousands) Level 1 Level 2 Level 3 Total Cash equivalents $ 11,179 $ - $ - $ 11,179 Securities available-for-sale 2,503 - - 2,503 $ 13,682 $ - $ - $ 13,682 As of April 30, 2015 ($ in thousands) Level 1 Level 2 Level 3 Total Cash equivalents $ 5,272 $ - $ - $ 5,272 Securities available-for-sale 9,632 - - 9,632 $ 14,904 $ - $ - $ 14,904 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of carrying value and fair value of securities available-for-sale | ($ in thousands) Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value ETFs - equities 2,381 125 (3 ) 2,503 $ 2,381 $ 125 $ (3 ) $ 2,503 ($ in thousands) Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Common stocks $ 101 $ 74 $ - $ 175 ETFs - equities 3,903 1,508 - 5,411 Inverse ETFs - equities 5,466 - (1,420 ) 4,046 $ 9,470 $ 1,582 $ (1,420 ) $ 9,632 |
Schedule of income from securities transactions | Three Months Ended October 31, Six Months Ended October 31, ($ in thousands) 2015 2014 2015 2014 Dividend income $ 38 $ 39 $ 80 $ 77 Interest income - - - 3 Capital loss (15 ) - (15 ) - Other 8 27 17 27 Total income from securities transactions, net $ 31 $ 66 $ 82 $ 107 |
Schedule of components of EAM's investment management operations | Three Months Ended October 31, Six Months Ended October 31, ($ in thousands) (unaudited) 2015 2014 2015 2014 Investment management fees earned from the Value Line Funds, net of fee waivers $ 3,653 $ 3,690 $ 7,491 $ 7,477 12b-1 fees and other fees, net of fee waivers $ 1,442 $ 1,349 $ 2,838 $ 2,709 Other income (loss) $ (18 ) $ 4 $ (27 ) $ 9 Investment management fee waivers (1) $ 48 $ 62 $ 95 $ 90 12b-1 fee waivers (1) $ 242 $ 374 $ 613 $ 769 Value Line’s non-voting revenues interest $ 1,819 $ 1,803 $ 3,721 $ 3,636 EAM’s net income (2) $ 242 $ 292 $ 522 $ 670 (1) During fiscal 2016 investment management fee waivers primarily related to the Value Line Core Bond Fund and the 12b-1 fee waivers related to four of the Value Line Mutual Funds. During fiscal 2015 investment management fee waivers primarily related to the Value Line Core Bond Fund and the 12b-1 fee waivers related to six of the Value Line Mutual Funds. (2) Represents EAM’s net income, after giving effect to Value Line’s non-voting revenues interest, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest. |
Schedule of assets and liabilities | ($ in thousands) October 31, 2015 April 30, 2015 (unaudited) EAM’s total assets $ 60,193 $ 60,159 EAM’s total liabilities (1) (3,021 ) (3,104 ) EAM’s total equity $ 57,172 $ 57,055 (1) At October 31, 2015 and April 30, 2015, EAM’s total liabilities included a payable to VLI for its accrued non-voting revenues, interest and the 90% distributable share of its non-voting profits interest of $1,927,000 and $1,951,000, respectively. |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Variable Interest Entity [Abstract] | |
Schedule of total assets, the maximum exposure to loss, value of the assets and liabilities in EAM | Value Line ($ in thousands) VIE Assets Investment in EAM Trust (1) Liabilities Maximum Exposure to Loss As of October 31, 2015 (unaudited) $ 60,193 $ 58,071 $ - $ 58,071 As of April 30, 2015 $ 60,159 $ 58,048 $ - $ 58,048 (1) Reported within Long Term Assets on the Consolidated Condensed Balance Sheets. |
Supplementary Cash Flow Infor25
Supplementary Cash Flow Information (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of cash flow supplemental disclosures | Six Months Ended October 31, ($ in thousands) 2015 2014 State and local income tax payments $ 153 $ 116 Federal income tax payments to the Parent $ 1,990 $ 1,850 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Comprehensive Income (Loss) Note [Abstract] | |
Schedule of components of comprehensive income included in the consolidated condensed statements of income and changes in shareholders' equity | ($ in thousands) Amount Before Tax Tax Benefit Amount Net of Tax Change in unrealized gains on securities $ (55 ) $ 19 $ (36 ) Add: Losses realized in net income $ 15 $ (5 ) $ 10 $ (40 ) $ 14 $ (26 ) ($ in thousands) Amount Before Tax Tax Benefit Amount Net of Tax Change in unrealized gains on securities $ (27 ) $ 10 $ (17 ) $ (27 ) $ 10 $ (17 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of non voting revenues interest and non voting profits interests | Three Months Ended October 31, Six Months Ended October 31, ($ in thousands) 2015 2014 2015 2014 Non-voting revenues interest in EAM $ 1,819 $ 1,803 $ 3,721 $ 3,636 Non-voting profits interest in EAM 121 146 261 335 $ 1,940 $ 1,949 $ 3,982 $ 3,971 |
Federal, State and Local Inco28
Federal, State and Local Income Taxes (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | Three Months Ended October 31, Six Months Ended October 31, ($ in thousands) 2015 2014 2015 2014 Current tax expense: Federal $ 986 $ 1,083 $ 2,010 $ 1,952 State and local 55 62 127 152 Current tax expense 1,041 1,145 2,137 2,104 Deferred tax expense (benefit): Federal (166 ) (106 ) (178 ) - State and local (70 ) 40 (221 ) 64 Deferred tax expense (benefit): (236 ) (66 ) (399 ) 64 Income tax provision $ 805 $ 1,079 $ 1,738 $ 2,168 |
Schedule of components of deferred tax asset and deferred tax liability | ($ in thousands) October 31, April 30, Federal tax benefit (liability): Unrealized gains on securities available-for-sale $ (43 ) $ (57 ) Operating lease deferred obligation 94 70 Deferred professional fees 76 34 Deferred charges 199 263 Total federal tax benefit 326 310 State and local tax benefits: Other 34 46 Total state and local tax benefits 34 46 Deferred tax asset, short term $ 360 $ 356 ($ in thousands) October 31, April 30, Federal tax liability (benefit): Deferred gain on deconsolidation of EAM $ 17,711 $ 17,679 Deferred non-cash post-employment compensation (619 ) (619 ) Depreciation and amortization 2,342 2,435 Other 460 401 Total federal tax liability 19,894 19,896 State and local tax liabilities (benefits): Deferred gain on deconsolidation of EAM 1,735 1,970 Deferred non-cash post-employment compensation (61 ) (69 ) Depreciation and amortization 229 271 Deferred professional fees (7 ) (4 ) Total state and local tax liabilities 1,896 2,168 Deferred tax liability, long term $ 21,790 $ 22,064 |
Schedule of effective income tax rate reconciliation | Six Months Ended October 31, 2015 2014 U.S. statutory federal rate 35.00 % 35.00 % Increase (decrease) in tax rate from: State and local income taxes, net of federal income tax benefit -2.48 % 2.27 % Effect of dividends received deductions -0.32 % -0.29 % Domestic production tax credit -0.62 % -0.65 % Other, net -1.87 % -1.28 % Effective income tax rate 29.71 % 35.05 % |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | ($ in thousands) October 31, 2015 April 30, 2015 Land $ 726 $ 726 Building and leasehold improvements 5,037 5,037 Furniture and equipment 4,085 4,084 9,848 9,847 Accumulated depreciation and amortization (6,299 ) (6,157 ) Total property and equipment, net $ 3,549 $ 3,690 |
Treasury Stock and Repurchase30
Treasury Stock and Repurchase Program (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Treasury Stock [Abstract] | |
Schedule of treasury stock, at cost | (in thousands except for shares and cost per share) Shares Total Average Cost Assigned Average Cost per Share Aggregate Purchase Price Remaining Under the Program Balance as of April 30, 2015 (1)(2) 190,504 $ 2,244 $ 11.78 $ 2,146 Purchases effected in open market during the quarters ended: July 31, 2015 (2) 12,237 $ 166 $ 13.58 $ 1,980 October 31, 2015 (2) 25,098 $ 382 $ 15.23 $ 1,598 Balance as of October 31, 2015 227,839 $ 2,792 $ 12.25 $ 1,598 (1) Includes 85,219 shares with a total average cost of $1,036,000 that were acquired during the former repurchase program, which was authorized in January 2011 and expired in January 2012; 18,400 shares were acquired prior to the repurchase program authorized in January 2011. (2) Were acquired during the $3 million repurchase program authorized in September 2012. |
Lease Commitments (Tables)
Lease Commitments (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum payments | Fiscal Years Ended April 30, Sublease ($ in thousands) 2016 $ 1,468 2017 1,224 2018 and thereafter - $ 2,692 |
Organization and Summary of S32
Organization and Summary of Significant Accounting Policies - Levels of fair value measurements of investments (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Apr. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 11,179 | $ 5,272 |
Securities available-for-sale | 2,503 | 9,632 |
Investments, fair value disclosure | 13,682 | 14,904 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 11,179 | 5,272 |
Securities available-for-sale | 2,503 | 9,632 |
Investments, fair value disclosure | $ 13,682 | $ 14,904 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | ||
Securities available-for-sale | ||
Investments, fair value disclosure | ||
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | ||
Securities available-for-sale | ||
Investments, fair value disclosure |
Organization and Summary of S33
Organization and Summary of Significant Accounting Policies (Detail Textuals) - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 31, 2015 | Apr. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||
Cash equivalents | $ 11,179 | $ 5,272 |
EAM Trust | ||
Schedule of Equity Method Investments [Line Items] | ||
Non-voting profits interest ("Profits Interest") | 50.00% | |
Percentage of revenue | 100.00% | |
Minimum percentage of non voting profits interests due each quarter from EAM | 90.00% | |
EAM Trust | Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of non-voting revenues interest based on adjusted gross revenues | 41.00% | |
EAM Trust | Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of non-voting revenues interest based on adjusted gross revenues | 55.00% |
Investments - Carrying value an
Investments - Carrying value and fair value of securities available-for-sale (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Apr. 30, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $ 2,381 | $ 9,470 |
Gross Unrealized Gains | 125 | 1,582 |
Gross Unrealized Losses | (3) | (1,420) |
Fair Value | 2,503 | 9,632 |
Common stocks | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 101 | |
Gross Unrealized Gains | $ 74 | |
Gross Unrealized Losses | ||
Fair Value | $ 175 | |
ETFs - equities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 2,381 | 3,903 |
Gross Unrealized Gains | 125 | 1,508 |
Gross Unrealized Losses | (3) | |
Fair Value | $ 2,503 | 5,411 |
Inverse ETFs - equities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $ 5,466 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | $ (1,420) | |
Fair Value | $ 4,046 |
Investments - Composition of in
Investments - Composition of income from securities transactions (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Dividend income | $ 38 | $ 39 | $ 80 | $ 77 |
Interest income | 3 | |||
Capital loss | (15) | (15) | ||
Other | 8 | 27 | 17 | 27 |
Total income from securities transactions, net | $ 31 | $ 66 | $ 82 | $ 107 |
Investments - Components of EAM
Investments - Components of EAM's investment management operations (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | ||
Schedule of Investments [Line Items] | |||||
Value Line's non-voting revenues interest | $ 1,819 | $ 1,803 | $ 3,721 | $ 3,636 | |
EAM's net income | 1,992 | 1,982 | 4,111 | 4,018 | |
EAM Trust | |||||
Schedule of Investments [Line Items] | |||||
Investment management fees earned from the Value Line Funds, net of fee waivers | 3,653 | 3,690 | 7,491 | 7,477 | |
12b-1 fees and other fees, net of fee waivers | 1,442 | 1,349 | 2,838 | 2,709 | |
Other income / (loss) | (18) | 4 | (27) | 9 | |
Investment management fee waivers | [1] | 48 | 62 | 95 | 90 |
12b-1 fee waivers | [1] | 242 | 374 | 613 | 769 |
Value Line's non-voting revenues interest | 1,819 | 1,803 | 3,721 | 3,636 | |
EAM's net income | [2] | $ 242 | $ 292 | $ 522 | $ 670 |
[1] | During fiscal 2016 investment management fee waivers primarily related to the Value Line Core Bond Fund and the 12b-1 fee waivers related to four of the Value Line Mutual Funds. During fiscal 2015 investment management fee waivers primarily related to the Value Line Core Bond Fund and the 12b-1 fee waivers related to six of the Value Line Mutual Funds. | ||||
[2] | Represents EAM's net income, after giving effect to Value Line's non-voting revenues interest, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest. |
Investments - Components of E37
Investments - Components of EAM's investment management operations (Parentheticals) (Details 2) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
EAM Trust | ||||
Schedule of Investments [Line Items] | ||||
Non-voting profits interest ("Profits Interest") | 50.00% | 50.00% | 50.00% | 50.00% |
Investments - Components of ass
Investments - Components of assets and liabilities (Details 3) - EAM Trust - USD ($) $ in Thousands | Oct. 31, 2015 | Apr. 30, 2015 | |
Schedule of Investments [Line Items] | |||
EAM's total assets | $ 60,193 | $ 60,159 | |
EAM's total liabilities | [1] | (3,021) | (3,104) |
EAM's total equity | $ 57,172 | $ 57,055 | |
[1] | At October 31, 2015 and April 30, 2015, EAM's total liabilities included a payable to VLI for its accrued non-voting revenues, interest and the 90% distributable share of its non-voting profits interest of $1,927,000 and $1,951,000, respectively. |
Investments - Components of a39
Investments - Components of assets and liabilities (Parentheticals) (Details 3) - EAM Trust - USD ($) | Oct. 31, 2015 | Apr. 30, 2015 |
Schedule Of Equity Method Investments [Line Items] | ||
Payable to VLI for its accrued non-voting revenues and non-voting profits interests | $ 1,927,000 | $ 1,951,000 |
Percentage of accrued payable non-voting revenues and non-voting profits interests | 90.00% | 90.00% |
Investments (Detail Textuals)
Investments (Detail Textuals) - USD ($) | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Apr. 30, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Aggregate cost of equity securities available for sale | $ 2,381,000 | $ 9,470,000 | |
Fair value of equity securities | 2,503,000 | 9,632,000 | |
Decrease in gross unrealized gains on equity securities classified as available-for-sale | (40,000) | $ (27,000) | |
Capital losses | 15,000 | ||
Proceeds from sales of equity securities classified as available-for-sale | 8,684,000 | ||
Equity Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Aggregate cost of equity securities available for sale | 2,381,000 | 9,470,000 | |
Fair value of equity securities | 2,503,000 | 9,632,000 | |
Decrease in gross unrealized gains on equity securities classified as available-for-sale | 55,000 | 27,000 | |
Deferred taxes on unrealized gains on securities | 19,000 | $ 10,000 | |
Accumulated other comprehensive income included unrealized gains, net of tax | 122,000 | 162,000 | |
Deferred taxes on accumulated other comprehensive income | 43,000 | $ 57,000 | |
Capital losses | 15,000 | ||
Proceeds from sales of equity securities classified as available-for-sale | $ 8,684,000 |
Investments - Equity Method Inv
Investments - Equity Method Investment (Detail Textuals 1) - USD ($) | Oct. 31, 2015 | Apr. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Investment in EAM Trust | $ 58,071,000 | $ 58,048,000 | |
EAM Trust | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in EAM Trust | [1] | 58,071,000 | 58,048,000 |
Fair value of contributed capital at inception | 55,805,000 | 55,805,000 | |
Cash and liquid securities in excess of working capital requirements contributed to capital account | $ 5,820,000 | $ 5,820,000 | |
[1] | Reported within Long Term Assets on the Consolidated Condensed Balance Sheets. |
Variable Interest Entity - Tota
Variable Interest Entity - Total assets of EAM, maximum exposure to loss due to involvement with EAM and value of assets and liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Apr. 30, 2015 | |
Variable Interest Entity [Line Items] | |||
Investment in EAM Trust | $ 58,071 | $ 58,048 | |
EAM Trust | |||
Variable Interest Entity [Line Items] | |||
VIE Assets | 60,193 | 60,159 | |
Investment in EAM Trust | [1] | $ 58,071 | $ 58,048 |
Liabilities | |||
Maximum Exposure to Loss | $ 58,071 | $ 58,048 | |
[1] | Reported within Long Term Assets on the Consolidated Condensed Balance Sheets. |
Variable Interest Entity (Detai
Variable Interest Entity (Detail textuals) | 6 Months Ended |
Oct. 31, 2015 | |
EAM Trust | |
Variable Interest Entity [Line Items] | |
Non-voting profits interest in EAM | 50.00% |
Supplementary Cash Flow Infor44
Supplementary Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ||
State and local income tax payments | $ 153 | $ 116 |
Federal income tax payments to the Parent | $ 1,990 | $ 1,850 |
Employees' Profit Sharing and45
Employees' Profit Sharing and Savings Plan (Detail Textuals) - USD ($) | 6 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Compensation Related Costs [Abstract] | ||
Estimated profit sharing plan contribution included in salaries and employee benefits | $ 200,000 | $ 200,000 |
Comprehensive Income - Componen
Comprehensive Income - Components of comprehensive income that are included in Consolidated Statement of Changes in Shareholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Comprehensive Income (Loss) Note [Abstract] | ||||
Change in unrealized gains on securities, Amount Before Tax | $ (55) | $ (27) | ||
Change in unrealized gains on securities, Tax Benefit | 19 | 10 | ||
Change in unrealized gains on securities, Amount Net of Tax | (36) | (17) | ||
Add: Losses realized in net income, Amount Before Tax | 15 | |||
Add: Losses realized in net income, Tax Benefit | (5) | |||
Add: Losses realized in net income, Amount Net of Tax | 10 | |||
Other comprehensive income (loss), available-for-sale securities adjustment, Amount Before Tax | (40) | (27) | ||
Other comprehensive income (loss), available-for-sale securities, Tax Benefit | 14 | 10 | ||
Other comprehensive income (loss), available-for-sale securities adjustment, Amount Net of Tax | $ 66 | $ 68 | $ (26) | $ (17) |
Related Party Transactions - In
Related Party Transactions - Income from non-voting revenues interest and non-voting profits interests in EAM (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Related Party Transactions [Abstract] | ||||
Non-voting revenues interest in EAM | $ 1,819 | $ 1,803 | $ 3,721 | $ 3,636 |
Non-voting profits interest in EAM | 121 | 146 | 261 | 335 |
Non-voting revenues and non-voting profits interests in EAM Trust | $ 1,940 | $ 1,949 | $ 3,982 | $ 3,971 |
Related Party Transactions (Det
Related Party Transactions (Detail Textuals) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Oct. 31, 2015 | Jul. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | Apr. 30, 2015 | |
Related Party Transaction [Line Items] | |||||||
Federal income tax payments to the Parent | $ 1,990,000 | $ 1,850,000 | |||||
EAM Trust | |||||||
Related Party Transaction [Line Items] | |||||||
Total assets of value line funds managed by EAM | $ 2,290,000,000 | $ 2,340,000,000 | $ 2,290,000,000 | 2,340,000,000 | |||
Percentage of assets increased in funds | 2.10% | ||||||
Minimum percentage of non voting profits interests due each quarter from EAM | 90.00% | ||||||
Non-voting profits interest in EAM | 50.00% | ||||||
Percentage of non-voting revenues interest in unconsolidated entity | 50.16% | 50.05% | 49.63% | 49.18% | |||
Non voting profits interest in variable entity not yet paid | $ 1,927,000 | $ 1,927,000 | $ 1,951,000 | ||||
EAM Trust | Minimum | |||||||
Related Party Transaction [Line Items] | |||||||
Investment management fee revenues from its mutual fund and separate accounts business | 41.00% | ||||||
EAM Trust | Maximum | |||||||
Related Party Transaction [Line Items] | |||||||
Investment management fee revenues from its mutual fund and separate accounts business | 55.00% | ||||||
Value Line Inc | |||||||
Related Party Transaction [Line Items] | |||||||
Reimbursed income | $ 65,000 | $ 71,000 | |||||
Percentage of ownership in outstanding shares of common stock of the company by parent | 88.35% | 88.35% |
Federal, State and Local Inco49
Federal, State and Local Income Taxes - Provision for income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Current tax expense: | ||||
Federal | $ 986 | $ 1,083 | $ 2,010 | $ 1,952 |
State and local | 55 | 62 | 127 | 152 |
Current tax expense | 1,041 | 1,145 | 2,137 | 2,104 |
Deferred tax expense (benefit): | ||||
Federal | (166) | (106) | (178) | |
State and local | (70) | 40 | (221) | 64 |
Deferred tax expense (benefit): | (236) | (66) | (399) | 64 |
Income tax provision | $ 805 | $ 1,079 | $ 1,738 | $ 2,168 |
Federal, State and Local Inco50
Federal, State and Local Income Taxes - Tax effect of temporary differences in deferred tax asset and deferred tax liability (Details 1) - USD ($) $ in Thousands | Oct. 31, 2015 | Apr. 30, 2015 |
Deferred Tax Assets and Liabilities [Line Items] | ||
Deferred tax asset, short term | $ 360 | $ 356 |
Deferred tax liability, long term | 21,790 | 22,064 |
Federal tax liability (benefit) | ||
Deferred Tax Assets and Liabilities [Line Items] | ||
Unrealized gains on securities available-for-sale | (43) | (57) |
Operating lease deferred obligation | 94 | 70 |
Deferred professional fees | 76 | 34 |
Deferred charges | 199 | 263 |
Deferred tax asset, short term | 326 | 310 |
Deferred gain on deconsolidation of EAM | 17,711 | 17,679 |
Deferred non-cash post-employment compensation | (619) | (619) |
Depreciation and amortization | 2,342 | 2,435 |
Other | 460 | 401 |
Deferred tax liability, long term | 19,894 | 19,896 |
State and local tax liabilities (benefits) | ||
Deferred Tax Assets and Liabilities [Line Items] | ||
Other | 34 | 46 |
Deferred tax asset, short term | 34 | 46 |
Deferred gain on deconsolidation of EAM | 1,735 | 1,970 |
Deferred non-cash post-employment compensation | (61) | (69) |
Depreciation and amortization | 229 | 271 |
Deferred professional fees | (7) | (4) |
Deferred tax liability, long term | $ 1,896 | $ 2,168 |
Federal, State and Local Inco51
Federal, State and Local Income Taxes - Provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory income tax rate (Details 2) | 6 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||
U.S. statutory federal rate | 35.00% | 35.00% |
Increase (decrease) in tax rate from: | ||
State and local income taxes, net of federal income tax benefit | (2.48%) | 2.27% |
Effect of dividends received deductions | (0.32%) | (0.29%) |
Domestic production tax credit | (0.62%) | (0.65%) |
Other, net | (1.87%) | (1.28%) |
Effective income tax rate | 29.71% | 35.05% |
Federal, State and Local Inco52
Federal, State and Local Income Taxes (Detail Textuals) | 6 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 29.71% | 35.05% |
Property and Equipment - Compon
Property and Equipment - Components of property and equipment, net (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Apr. 30, 2015 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 726 | $ 726 |
Building and leasehold improvements | 5,037 | 5,037 |
Furniture and equipment | 4,085 | 4,084 |
Property and equipment, gross | 9,848 | 9,847 |
Accumulated depreciation and amortization | (6,299) | (6,157) |
Total property and equipment, net | $ 3,549 | $ 3,690 |
Accounting for the Costs of C54
Accounting for the Costs of Computer Software Developed for Internal Use (Detail Textuals) - USD ($) | 6 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Internal Use Software [Abstract] | ||
Capitalized cost of development of software for internal use | $ 931,000 | $ 1,148,000 |
Internal costs to develop software | 675,000 | 710,000 |
Third party programmers' costs | $ 256,000 | 438,000 |
Expected useful life of asset | 5 years | |
Amortization expense | $ 1,289,000 | $ 1,093,000 |
Treasury Stock and Repurchase55
Treasury Stock and Repurchase Program - Components of treasury stock, at cost (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Oct. 31, 2015 | Jul. 31, 2015 | Oct. 31, 2015 | Oct. 31, 2014 | ||||
Shares | |||||||
Balance as of April 30, 2015 | 190,504 | [1],[2] | 190,504 | 190,504 | |||
Purchases effected in open market | [2] | 25,098 | 12,237 | ||||
Balance as of October 31, 2015 | 227,839 | 190,504 | [1],[2] | 227,839 | |||
Total Average Cost Assigned | |||||||
Balance as of April 30, 2015 | $ 2,244 | [1],[2] | $ 2,244 | $ 2,244 | |||
Purchases effected in open market | 382 | [2] | 166 | [2] | 548 | $ 71 | |
Balance as of October 31, 2015 | $ 2,792 | $ 2,244 | [1],[2] | $ 2,792 | |||
Average Cost per Share | |||||||
Balance as of April 30, 2014 | [1],[2] | $ 11.78 | |||||
Purchases effected in open market | [2] | 15.23 | $ 13.58 | ||||
Balance as of October 31, 2015 | $ 12.25 | $ 11.78 | [1],[2] | $ 12.25 | |||
Aggregate Purchase Price Remaining Under the Program | |||||||
Balance as of April 30, 2015 | [1],[2] | $ 2,146 | |||||
Purchases effected in open market | [2] | 1,598 | $ 1,980 | $ 1,598 | |||
Balance as of October 31, 2015 | $ 1,598 | $ 2,146 | [1],[2] | $ 1,598 | |||
[1] | Includes 85,219 shares with a total average cost of $1,036,000 that were acquired during the former repurchase program, which was authorized in January 2011 and expired in January 2012; 18,400 shares were acquired prior to the repurchase program authorized in January 2011. | ||||||
[2] | Were acquired during the $3 million repurchase program authorized in September 2012. |
Treasury Stock and Repurchase56
Treasury Stock and Repurchase Program - Components of treasury stock, at cost (Parentheticals) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Jan. 31, 2012 | Jan. 31, 2011 | Oct. 31, 2015 | Jul. 31, 2015 | Oct. 31, 2015 | Oct. 31, 2014 | Sep. 19, 2012 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Number of treasury shares | [1] | 25,098 | 12,237 | |||||||
Total average cost | $ 382,000 | [1] | $ 166,000 | [1] | $ 548,000 | $ 71,000 | ||||
September 2012 Share Repurchase Program | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Authorized repurchase amount of common stock | $ 3,000,000 | |||||||||
January 2011 Share Repurchase Program | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Number of treasury shares | 18,400 | |||||||||
Former Repurchase Program | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Number of treasury shares | 85,219 | |||||||||
Total average cost | $ 1,036,000 | |||||||||
[1] | Were acquired during the $3 million repurchase program authorized in September 2012. |
Treasury Stock and Repurchase57
Treasury Stock and Repurchase Program (Detail Textuals) $ in Millions | Sep. 19, 2012USD ($) |
Share repurchase program | |
Equity, Class Of Treasury Stock [Line Items] | |
Authorized repurchase amount of common stock | $ 3 |
Lease Commitments - Future mini
Lease Commitments - Future minimum payments under operating lease (Details) $ in Thousands | Oct. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 1,468 |
2,017 | $ 1,224 |
2018 and thereafter | |
Operating leases, total | $ 2,692 |
Lease Commitments (Detail Textu
Lease Commitments (Detail Textuals) | Feb. 07, 2013USD ($)ft² | Mar. 31, 2015USD ($) | Oct. 31, 2015USD ($) | Oct. 31, 2014USD ($) |
Operating Leased Assets [Line Items] | ||||
Amount received from sublandlord | $ 122,355 | |||
Rental expenses | $ 634,000 | $ 634,000 | ||
Citibank, N.A. (the "Sublandlord") | ||||
Operating Leased Assets [Line Items] | ||||
Area of land for lease | ft² | 44,493 | |||
Base rent under the sublease agreement per annum | $ 1,468,269 | |||
Security deposit in cash | $ 489,423 |