Note 6 - Reportable Segments

12 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

6. REPORTABLE SEGMENTS

Operating segments are defined as components of an enterprise which has discrete financial information that is evaluated regularly by the Company’s Chief Executive Officer to decide how to allocate resources and to access performance.

In accordance with ASC 280-10,

Segment Reporting

, the Company has two segments of business. The Company’s reportable segments are: (i) the Traditional Business and (ii) Journal Technologies. Journal Technologies is an aggregation of three technology operating segments – Sustain, New Dawn and ISD. All inter-segment transactions were eliminated.

The Company reclassified certain prior years’ figures to allocate the amounts related to the Company’s Corporate function and the related tax effects to Corporate from its other segments to conform to the presentation requirements of ASC 280. 

Summarized financial information concerning the Company’s reportable segments is shown in the following table:

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate income and expenses			Total
Fiscal 2015
Revenues
Advertising, net	$	10,502,000		$	---		$	---		$	10,502,000
Circulation		5,915,000			---			---			5,915,000
Advertising service fees and other		2,703,000			---			---			2,703,000
Licensing and maintenance fees		---			13,984,000			---			13,984,000
Consulting fees		---			4,704,000			---			4,704,000
Other public service fees		---			6,170,000			---			6,170,000
Operating expenses		18,038,000			29,452,000			---			47,490,000
Income (loss) from operations		1,082,000			(4,594,000	)		---			(3,512,000	)
Dividends and interest income		---			---			3,829,000			3,829,000
Other income and capital gains		---			---			69,000			69,000
Interest expense on margin loans		---			---			(224,000	)		(224,000	)
Interest expense accrued for uncertain and unrecognized tax benefits		---			(96,000	)		---			(96,000	)
Other-than-temporary impairment losses on investments		---			---			(376,000	)		(376,000	)
Pretax income (loss)		1,082,000			(4,690,000	)		3,298,000			(310,000	)
Income tax benefit		(70,000	)		1,580,000			(390,000	)		1,120,000
Net income (loss)		1,012,000			(3,110,000	)		2,908,000			810,000
Total assets		15,047,000			47,108,000			166,041,000			228,196,000
Capital expenditures		425,000			140,000			---			565,000
Amortization of intangible assets		12,000			4,895,000			---			4,907,000

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate income and expenses			Total
Fiscal 2014
Revenues
Advertising, net	$	11,435,000		$	---		$	---		$	11,435,000
Circulation		6,038,000			---			---			6,038,000
Advertising service fees and other		2,800,000			---			---			2,800,000
Licensing and maintenance fees		---			12,987,000			---			12,987,000
Consulting fees		---			4,002,000			---			4,002,000
Other public service fees		---			6,161,000			---			6,161,000
Operating expenses		17,154,000			28,459,000			---			45,613,000
Income (loss) from operations		3,119,000			(5,309,000	)		---			(2,190,000	)
Dividends and interest income		---			---			3,001,000			3,001,000
Other income and capital gains		---			---			97,000			97,000
Interest expenses		---			---			(230,000	)		(230,000	)
Interest expense accrued for uncertain and unrecognized tax benefits		---			(537,000	)		---			(537,000	)
Pretax income (loss)		3,119,000			(5,846,000	)		2,868,000			141,000
Income tax benefit		(1,460,000	)		2,350,000			(400,000	)		490,000
Net income (loss)		1,659,000			(3,496,000	)		2,468,000			631,000
Total assets		18,228,000			51,973,000			173,676,000			243,877,000
Capital expenditures		110,000			325,000			---			435,000
Amortization of intangible assets		---			4,866,000			---			4,866,000

	Reportable Segments
	Traditional Business			Journal Technologies*			Corporate income and expenses			Total
Fiscal 2013*
Revenues
Advertising, net	$	14,472,000		$	---		$	---		$	14,472,000
Circulation		6,346,000			---			---			6,346,000
Advertising service fees and other		3,012,000			---			---			3,012,000
Licensing and maintenance fees		---			9,942,000			---			9,942,000
Consulting fees		---			3,406,000			---			3,406,000
Other public service fees		---			498,000			---			498,000
Operating expenses		15,856,000			18,031,000			---			33,887,000
Income (loss) from operations		7,974,000			(4,185,000	)		---			3,789,000
Dividends and interest income		---			---			2,541,000			2,541,000
Other income and capital gains		---			---			55,000			54,000
Interest expenses		---			---			(97,000	)		(97,000	)
Other-than-temporary impairment losses on investments		---			---			(1,719,000	)		(1,719,000	)
Pretax income (loss)		7,974,000			(4,185,000	)		780,000			4,569,000
Income tax expense		(3,301,000	)		2,263,000			248,000			(790,000	)
Net income (loss)		4,673,000			(1,922,000	)		1,028,000			3,779,000
Total assets		18,458,000			47,611,000			136,994,000			203,063,000
Capital expenditures		96,000			184,000			---			280,000
Amortization of intangible assets		---			1,865,000			---			1,865,000

* Includes (i) New Dawn’s financial results from December 5, 2012 through September 30, 2013 with revenues of $10,403,000 and expenses of $10,625,000 (including intangible amortization expenses of $1,587,000), and (ii) ISD’s September 2013  financial results with revenues of $784,000 and expenses of $694,000 (including intangible amortization expenses of $278,000).