Note 11 - Operating Segments

6 Months Ended

Mar. 31, 2022

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:         

Overall Financial Results (000)

For the six months ended March 31

	Reportable Segments
	Traditional Business						Journal Technologies						Corporate						Total
	2022			2021			2022			2021			2022			2021			2022			2021
Revenues
Advertising	$	3,690		$	3,454		$	---		$	---		$	---		$	---		$	3,690		$	3,454
Circulation		2,182			2,332			---			---			---			---			2,182			2,332
Advertising service fees and other		1,413			1,202			---			---			---			---			1,413			1,202
Licensing and maintenance fees		---			---			9,088			11,388			---			---			9,088			11,388
Consulting fees		---			---			2,430			2,549			---			---			2,430			2,549
Other public service fees		---			---			3,442			3,465			---			---			3,442			3,465
Total operating revenues		7,285			6,988			14,960			17,402			---			---			22,245			24,390
Operating expenses
Salaries and employee benefits		4,730			4,606			12,594			12,432			---			---			17,324			17,038
(Decrease) increase to the long-term supplemental compensation accrual		(2,010	)		755			(40	)		---			---			---			(2,050	)		755
Others		1,973			1,975			4,569			3,632			---			---			6,542			5,607
Total operating expenses		4,693			7,336			17,123			16,064			---			---			21,816			23,400
Income (loss) from operations		2,592			(348	)		(2,163	)		1,338			---			---			429			990
Dividends and interest income		---			---			---			---			2,988			1,287			2,988			1,287
Interest expenses on note payable collateralized by real estate and other		---			---			---			---			(26	)		(34	)		(26	)		(34	)
Interest expense on margin loans		---			---			---			---			(236	)		(128	)		(236	)		(128	)
Gains on sales of marketable securities, net		---			---			---			---			14,249			18,478			14,249			18,478
Net unrealized (losses) gains on marketable securities		---			---			---			---			(44,409	)		76,068			(44,409	)		76,068
Pretax income (loss)		2,592			(348	)		(2,163	)		1,338			(27,434	)		95,671			(27,005	)		96,661
Income tax (expense) benefit		(560	)		160			705			(325	)		5,925			(24,750	)		6,070			(24,915	)
Net income (loss)	$	2,032		$	(188	)	$	(1,458	)	$	1,013		$	(21,509	)	$	70,921		$	(20,935	)	$	71,746
Total assets	$	19,924		$	14,586		$	15,830		$	21,639		$	354,336		$	294,420		$	390,090		$	330,645
Capital expenditures		---		$	22		$	3		$	7			---			---		$	3		$	29

Overall Financial Results (000)

For the three months ended March 31

	Reportable Segments
	Traditional Business						Journal Technologies						Corporate						Total
	2022			2021			2022			2021			2022			2021			2022			2021
Revenues
Advertising	$	1,896		$	1,762		$	---		$	---		$	---		$	---		$	1,896		$	1,762
Circulation		1,072			1,129			---			---			---			---			1,072			1,129
Advertising service fees and other		743			568			---			---			---			---			743			568
Licensing and maintenance fees		---			---			4,608			6,355			---			---			4,608			6,355
Consulting fees		---			---			669			2,305			---			---			669			2,305
Other public service fees		---			---			1,729			1,851			---			---			1,729			1,851
Total operating revenues		3,711			3,459			7,006			10,511			---			---			10,717			13,970
Operating expenses
Salaries and employee benefits		2,415			2,436			6,432			6,460			---			---			8,847			8,896
(Decrease) increase to the long-term supplemental compensation accrual		(1,920	)		1,005			---			---			---			---			(1,920	)		1,005
Others		1,130			914			2,287			1,850			---			---			3,417			2,764
Total operating expenses		1,625			4,355			8,719			8,310			---			---			10,344			12,665
Income (loss) from operations		2,086			(896	)		(1,713	)		2,201			---			---			373			1,305
Dividends and interest income		---			---			---			---			2,113			649			2,113			649
Interest expenses on note payable collateralized by real estate and other		---			---			---			---			(13	)		(13	)		(13	)		(13	)
Interest expense on margin loans		---			---			---			---			(150	)		(64	)		(150	)		(64	)
(Losses) gains on sales of marketable securities		---			---			---			---			(32,445	)		18,478			(32,445	)		18,478
Net unrealized losses on marketable securities		---			---			---			---			(8,321	)		(5,144	)		(8,321	)		(5,144	)
Pretax income (loss)		2,086			(896	)		(1,713	)		2,201			(38,816	)		13,906			(38,443	)		15,211
Income tax (expense) benefit		(355	)		270			455			(730	)		10,530			(2,275	)		10,630			(2,735	)
Net income (loss)	$	1,731		$	(626	)	$	(1,258	)	$	1,471		$	(28,286	)	$	11,631		$	(27,813	)	$	12,476
Total assets	$	19,924		$	14,586		$	15,830		$	21,639		$	354,336		$	294,420		$	390,090		$	330,645
Capital expenditures		---		$	22		$	3		$	7			---			---		$	3		$	29

During the six months ended March 31, 2022, the Traditional Business had total operating revenues of $7,285,000 with $5,103,000 recognized after services were provided and $2,182,000 recognized ratably over the subscription terms, as compared with total operating revenues of $6,988,000 with $4,656,000 recognized after services were provided and $2,332,000 recognized ratably over the subscription terms in the prior fiscal year period. Total operating revenues for the Company’s software business were $14,960,000 with $5,943,000 recognized upon completion of services and $9,017,000 recognized ratably over the subscription periods, as compared with total operating revenues of $17,402,000 with $6,717,000 recognized upon completion of services and $10,685,000 recognized ratably over the subscription periods in the prior fiscal year period.

During the three months ended March 31, 2022, the Traditional Business had total operating revenues of $3,711,000 with $2,639,000 recognized after services were provided and $1,072,000 recognized ratably over the subscription terms, as compared with total operating revenues of $3,459,000 with $2,330,000 recognized after services were provided and $1,129,000 recognized ratably over the subscription terms in the prior fiscal year period. Total operating revenues for the Company’s software business were $7,006,000 with $2,467,000 recognized upon completion of services and $4,539,000 recognized ratably over the subscription periods, as compared with total operating revenues of $10,511,000 with $4,848,000 recognized upon completion of services and $5,663,000 recognized ratably over the subscription periods in the prior fiscal year period.

Approximately 67% of the Company’s revenues during the six-month period ended March 31, 2022 were derived from Journal Technologies, as compared with 71% 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 six-months ended March 31, 2022. Journal Technologies’ revenues are primarily from governmental agencies.