Note 12 - Operating Segments

3 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 12 - Operating Segments

The Company’s Traditional Business is one reportable segment and the other is Journal Technologies which includes Journal Technologies, Inc. and Journal Technologies (Canada) Inc. All inter-segment transactions were eliminated. Additional detail about each of the reportable segments and its income and expenses is set forth below:

Overall Financial Results (000)
For the three months ended December 31, 2022 and 2021
	Reportable Segments
	Traditional Business						Journal Technologies						Corporate						Total
	2022			2021			2022			2021			2022			2021			2022			2021
Revenues
Advertising	$	1,990		$	2,001		$	---		$	---		$	---		$	---		$	1,990		$	2,001
Circulation		1,098			1,110			---			---			---			---			1,098			1,110
Advertising service fees and other		699			671			---			---			---			---			699			671
Licensing and maintenance fees		---			---			4,395			4,480			---			---			4,395			4,480
Consulting fees		---			---			2,322			1,761			---			---			2,322			1,761
Other public service fees		---			---			1,797			1,713			---			---			1,797			1,713
Total operating revenues		3,787			3,782			8,514			7,954			---			---			12,301			11,736
Operating expenses
Salaries and employee benefits		2,218			2,315			7,413			6,162			---			---			9,631			8,477
Decrease to the long-term supplemental compensation accrual		(500	)		(90	)		(20	)		(40	)		---			---			(520	)		(130	)
Others		1,134			1,051			2,772			2,282			---			---			3,906			3,333
Total operating expenses		2,852			3,276			10,165			8,404			---			---			13,017			11,680
Income (loss) from operations		935			506			(1,651	)		(450	)		---			---			(716	)		56
Dividends and interest income		---			---			---			---			1,069			875			1,069			875
Interest expense on note payable collateralized by real estate and other		---			---			---			---			(12	)		(13	)		(12	)		(13	)
Interest expense on margin loans		---			---			---			---			(861	)		(86	)		(861	)		(86	)
Gains on sales of marketable securities, net		---			---			---			---			422			46,694			422			46,694
Net unrealized gains (losses) on marketable securities		---			---			---			---			24,025			(36,088	)		24,025			(36,088	)
Pretax income (loss)		935			506			(1,651	)		(450	)		24,643			11,382			23,927			11,438
Income tax (expense) benefit		(235	)		(205	)		350			250			(6,215	)		(4,605	)		(6,100	)		(4,560	)
Net income (loss)	$	700		$	301		$	(1,301	)	$	(200	)	$	18,428		$	6,777		$	17,827		$	6,878
Total assets	$	45,288		$	69,925		$	25,202		$	18,925		$	275,781		$	347,157		$	346,271		$	436,007
Capital expenditures		32			---			4			---			---			---			36			---

During the three months ended December 31, 2022, the Traditional Business had total operating revenues of $3,787,000 with $2,689,000 recognized after services were provided and $1,098,000 recognized ratably over the publication subscription terms, as compared with total operating revenues of $3,782,000 with $2,672,000 recognized after services were provided and $1,110,000 recognized ratably over the publication subscription terms in the prior fiscal year period. Total operating revenues for the Company’s software business were $8,514,000 with $4,121,000 recognized upon completion of services and $4,393,000 recognized ratably over the subscription periods, as compared with total operating revenues of $7,954,000 with $3,476,000 recognized upon completion of services and $4,478,000 recognized ratably over the subscription periods in the prior fiscal year period.

Approximately 69% of the Company’s revenues during the three-month period ended December 31, 2022 were derived from Journal Technologies, as compared with 68% in the prior year period. In addition, the Company’s revenues have been primarily from the United States with approximately 7% from foreign countries during the three-months ended December 31, 2022. Journal Technologies’ revenues are primarily from governmental agencies.