Note 11 - Operating Segments

9 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 11 - Operating Segments

The Company’s reportable segments are: (i) the Traditional Business and (ii) Journal Technologies. All inter-segment transactions were eliminated. Summarized financial information regarding the Company’s reportable segments is shown in the following table:         

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate income and expenses			Total
Nine months ended June 30, 2021
Revenues
Advertising	$	5,649,000		$	-		$	-		$	5,649,000
Circulation		3,458,000			-			-			3,458,000
Advertising service fees and other		1,964,000			-			-			1,964,000
Licensing and maintenance fees		-			16,990,000			-			16,990,000
Consulting fees		-			4,649,000			-			4,649,000
Other public service fees		-			5,242,000			-			5,242,000
Operating expenses		11,001,000			24,637,000			-			35,638,000
Income from operations		70,000			2,244,000			-			2,314,000
Dividends and interest income		-			-			2,063,000			2,063,000
Other income		-			-			69,000			69,000
Realized gains on sales of marketable securities		-			-			18,478,000			18,478,000
Net unrealized gains on marketable securities		-			-			131,754,000			131,754,000
Interest expenses on note payable collateralized by real estate		-			-			(48,000	)		(48,000	)
Interest expenses on margin loans and others		-			-			(196,000	)		(196,000	)
Pretax income		70,000			2,244,000			152,120,000			154,434,000
Income tax expense		(15,000	)		(785,000	)		(39,315,000	)		(40,115,000	)
Net income		55,000			1,459,000			112,805,000			114,319,000
Total assets		17,894,000			21,498,000			350,108,000			389,500,000
Capital expenditures		22,000			7,000			-			29,000

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate income and expenses			Total
Nine months ended June 30, 2020
Revenues
Advertising	$	5,415,000		$	-		$	-		$	5,415,000
Circulation		3,857,000			-			-			3,857,000
Advertising service fees and other		1,923,000			-			-			1,923,000
Licensing and maintenance fees		-			16,246,000			-			16,246,000
Consulting fees		-			5,065,000			-			5,065,000
Other public service fees		-			4,401,000			-			4,401,000
Operating expenses		11,319,000			27,611,000			-			38,930,000
Loss from operations		(124,000	)		(1,899,000	)		-			(2,023,000	)
Dividends and interest income		-			-			4,573,000			4,573,000
Other income		-			-			3,000			3,000
Net unrealized losses on investments		-			-			(41,191,000	)		(41,191,000	)
Interest expenses on note payable collateralized by real estate		-			-			(63,000	)		(63,000	)
Interest expenses on margin loans and others		-			-			(401,000	)		(401,000	)
Pretax loss		(124,000	)		(1,899,000	)		(37,079,000	)		(39,102,000	)
Income tax benefit		15,000			380,000			10,865,000			11,260,000
Net loss		(109,000	)		(1,519,000	)		(26,214,000	)		(27,842,000	)
Total assets		17,752,000			24,667,000			155,545,000			197,964,000
Capital expenditures		99,000			69,000			-			168,000

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate income and expenses			Total
Three months ended June 30, 2021
Revenues
Advertising	$	2,195,000		$	-		$	-		$	2,195,000
Circulation		1,126,000			-			-			1,126,000
Advertising service fees and other		762,000			-			-			762,000
Licensing and maintenance fees		-			5,602,000			-			5,602,000
Consulting fees		-			2,100,000			-			2,100,000
Other public service fees		-			1,777,000			-			1,777,000
Operating expenses		3,665,000			8,573,000			-			12,238,000
Income from operations		418,000			906,000			-			1,324,000
Dividends and interest income		-			-			776,000			776,000
Other income		-			-			69,000			69,000
Net unrealized losses on marketable securities		-			-			55,686,000			55,686,000
Interest expenses on note payable collateralized by real estate		-			-			(14,000	)		(14,000	)
Interest expenses on margin loans and others		-			-			(68,000	)		(68,000	)
Pretax income		418,000			906,000			56,449,000			57,773,000
Income tax expense		(175,000	)		(460,000	)		(14,565,000	)		(15,200,000	)
Net income		243,000			446,000			41,884,000			42,573,000
Total assets		17,894,000			21,498,000			350,108,000			389,500,000
Capital expenditures		-			-			-			-

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate income and expenses			Total
Three months ended June 30, 2020
Revenues
Advertising	$	1,297,000		$	-		$	-		$	1,297,000
Circulation		1,259,000			-			-			1,259,000
Advertising service fees and other		575,000			-			-			575,000
Licensing and maintenance fees		-			5,531,000			-			5,531,000
Consulting fees		-			3,147,000			-			3,147,000
Other public service fees		-			1,065,000			-			1,065,000
Operating expenses		3,699,000			8,582,000			-			12,281,000
Income (loss) from operations		(568,000	)		1,161,000			-			593,000
Dividends and interest income		-			-			1,596,000			1,596,000
Net unrealized losses on investments		-			-			16,489,000			16,489,000
Interest expenses on note payable collateralized by real estate		-			-			(20,000	)		(20,000	)
Interest expenses on margin loans and others		-			-			(64,000	)		(64,000	)
Pretax (loss) income		(568,000	)		1,161,000			18,001,000			18,594,000
Income tax benefit (expense)		125,000			(545,000	)		(3,900,000	)		(4,320,000	)
Net (loss) income		(443,000	)		616,000			14,101,000			14,274,000
Total assets		17,752,000			24,667,000			155,545,000			197,964,000
Capital expenditures		-			-			-			-

During the nine months ended June 30, 2021, the Traditional Business had total operating revenues of $11,071,000 with $7,613,000 recognized after services were provided and $3,458,000 recognized ratably over the publication subscription terms, as compared with total operating revenues of $11,195,000 with $7,338,000 recognized after services were provided and $3,857,000 recognized ratably over the publication subscription terms in the prior fiscal year period. Total operating revenues for the Company’s software business were $26,881,000 with $11,029,000 recognized upon completion of services and $15,852,000 recognized ratably over the subscription periods, as compared with total operating revenues of $25,712,000 with $9,889,000 recognized upon completion of services and $15,823,000 recognized ratably over the subscription periods in the prior fiscal year period.

During the three months ended June 30, 2021, the Traditional Business had total operating revenues of $4,083,000 with $2,957,000 recognized after services were provided and $1,126,000 recognized ratably over the publication subscription terms, as compared with total operating revenues of $3,131,000 with $1,872,000 recognized after services were provided and $1,259,000 recognized ratably over the publication subscription terms in the prior fiscal year period. Total operating revenues for the Company’s software business were $9,479,000 with $4,312,000 recognized upon completion of services and $5,167,000 recognized ratably over the subscription periods, as compared with total operating revenues of $9,743,000 with $4,258,000 recognized upon completion of services and $5,485,000 recognized ratably over the subscription periods in the prior fiscal year period.

Approximately 71% of the Company’s revenues during the nine-month period ended June 30, 2021 were derived from Journal Technologies, as compared with 70% in the prior year period. In addition, the Company’s revenues have been primarily from the United States with approximately 4% from foreign countries during the nine-months ended June 30, 2021. Journal Technologies’ revenues are primarily from governmental agencies.