Note 12 - Operating Segments

9 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 12 - 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 nine months ended June 30

	Reportable Segments
	Traditional Business						Journal Technologies						Corporate income and expenses						Total
	2022			2021			2022			2021			2022			2021			2022			2021
Revenues
Advertising	$	5,679		$	5,649		$	---		$	---		$	---		$	---		$	5,679		$	5,649
Circulation		3,279			3,458			---			---			---			---			3,279			3,458
Advertising service fees and other		2,200			1,964			---			---			---			---			2,200			1,964
Licensing and maintenance fees		---			---			13,721			16,990			---			---			13,721			16,990
Consulting fees		---			---			4,697			4,649			---			---			4,697			4,649
Other public service fees		---			---			5,221			5,242			---			---			5,221			5,242
Total revenues		11,158			11,071			23,639			26,881			---			---			34,797			37,952
Operating expenses
Salaries and employee benefits		6,864			6,687			19,881			19,131			---			---			26,745			25,818
(Decrease) increase to the long-term supplemental compensation accrual		(25	)		1,410			(40	)		---			---			---			(65	)		1,410
Others		2,877			2,904			6,914			5,506			---			---			9,791			8,410
Total operating expenses		9,716			11,001			26,755			24,637			---			---			36,471			35,638
Income (loss) from operations		1,442			70			(3,116	)		2,244			---			---			(1,674	)		2,314
Dividends and interest income		---			---			---			---			4,251			2,063			4,251			2,063
Gains on sale of land		---			---			---			---			272			---			272			---
Other income		---			---			---			---			---			69			---			69
Interest expenses on note payable collateralized by real estate and other		---			---			---			---			(38	)		(48	)		(38	)		(48	)
Interest expenses on margin loans		---			---			---			---			(517	)		(196	)		(517	)		(196	)
Net realized gains on sales of marketable securities		---			---			---			---			14,249			18,478			14,249			18,478
Net unrealized (losses) gains on marketable securities		---			---			---			---			(57,075	)		131,754			(57,075	)		131,754
Pretax income (loss)		1,442			70			(3,116	)		2,244			(38,858	)		152,120			(40,532	)		154,434
Income tax (expense) benefit		(335	)		(15	)		985			(785	)		9,085			(39,315	)		9,735			(40,115	)
Net income (loss)	$	1,107		$	55		$	(2,131	)	$	1,459		$	(29,773	)	$	112,805		$	(30,797	)	$	114,319
Total assets	$	22,091		$	17,894		$	20,814		$	21,498		$	341,669		$	350,108		$	384,574		$	389,500
Capital expenditures	$	4		$	22		$	10		$	7		$	---		$	---		$	14		$	29

Overall Financial Results (000)

For the three months ended June 30

	Reportable Segments
	Traditional Business						Journal Technologies						Corporate income and expenses						Total
	2022			2021			2022			2021			2022			2021			2022			2021
Revenues
Advertising	$	1,989		$	2,195		$	---		$	---		$	---		$	---		$	1,989		$	2,195
Circulation		1,097			1,126			---			---			---			---			1,097			1,126
Advertising service fees and other		787			762			---			---			---			---			787			762
Licensing and maintenance fees		---			---			4,633			5,602			---			---			4,633			5,602
Consulting fees		---			---			2,267			2,100			---			---			2,267			2,100
Other public service fees		---			---			1,779			1,777			---			---			1,779			1,777
Total revenues		3,873			4,083			8,679			9,479			---			---			12,552			13,562
Operating expenses
Salaries and employee benefits		2,134			2,081			7,287			6,699			---			---			9,421			8,780
Increase to the long-term Supplemental compensation accrual		1,985			655			---			---			---			---			1,985			655
Others		904			929			2,345			1,874			---			---			3,249			2,803
Total operating expenses		5,023			3,665			9,632			8,573			---			---			14,655			12,238
Income (loss) from operations		(1,150	)		418			(953	)		906			---			---			(2,103	)		1,324
Dividends and interest income		---			---			---			---			1,263			776			1,263			776
Gains on land sale		---			---			---			---			272			---			272			---
Other income		---			---			---			---			---			69			---			69
Interest expenses on note payable collateralized by real estate and other		---			---			---			---			(12	)		(14	)		(12	)		(14	)
Interest expenses on margin loans		---			---			---			---			(281	)		(68	)		(281	)		(68	)
Net unrealized (losses) gains on marketable securities		---			---			---			---			(12,666	)		55,686			(12,666	)		55,686
Pretax (loss) income		(1,150	)		418			(953	)		906			(11,424	)		56,449			(13,527	)		57,773
Income tax benefit (expense)		225			(175	)		280			(460	)		3,160			(14,565	)		3,665			(15,200	)
Net (loss) income	$	(925	)	$	243		$	(673	)	$	446		$	(8,264	)	$	41,884		$	(9,862	)	$	42,573
Total assets	$	22,091		$	17,894		$	20,814		$	21,498		$	341,669		$	350,108		$	384,574		$	389,500
Capital expenditures	$	4		$	---		$	7		$	---		$	---		$	---		$	11		$	---

During the nine months ended June 30, 2022, the Traditional Business had total operating revenues of $11,158,000 with $7,879,000 recognized after services were provided and $3,279,000 recognized ratably over the subscription terms, as compared with total operating revenues of $11,071,000 with $7,613,000 recognized after services were provided and $3,458,000 recognized ratably over the subscription terms in the prior fiscal year period. Total operating revenues for the Company’s software business were $23,639,000 with $9,989,000 recognized upon completion of services and $13,650,000 recognized ratably over the subscription periods, as compared with total operating revenues of $26,881,000 with $11,029,000 recognized upon completion of services and $15,852,000 recognized ratably over the subscription periods in the prior fiscal year period.

During the three months ended June 30, 2022, the Traditional Business had total operating revenues of $3,873,000 with $2,776,000 recognized after services were provided and $1,097,000 recognized ratably over the subscription terms, as compared with total operating revenues of $4,083,000 with $2,957,000 recognized after services were provided and $1,126,000 recognized ratably over the subscription terms in the prior fiscal year period. Total operating revenues for the Company’s software business were $8,679,000 with $4,046,000 recognized upon completion of services and $4,633,000 recognized ratably over the subscription periods, as compared with total operating revenues of $9,479,000 with $4,312,000 recognized upon completion of services and $5,167,000 recognized ratably over the subscription periods in the prior fiscal year period.

Approximately 68% of the Company’s revenues during the nine-month period ended June 30, 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 5% from foreign countries during the nine-months ended June 30, 2022. Journal Technologies’ revenues are primarily from governmental agencies.