Note 12 - Operating Segments

6 Months Ended

Mar. 31, 2023

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 six months ended March 31

	Reportable Segments
	Traditional Business						Journal Technologies						Corporate						Total
	2023			2022			2023			2022			2023			2022			2023			2022
Revenues
Advertising	$	4,194		$	4,130		$	---		$	---		$	---		$	---		$	4,194		$	4,130
Circulation		2,206			2,182			---			---			---			---			2,206			2,182
Advertising service fees and other		1,477			1,413			---			---			---			---			1,477			1,413
Licensing and maintenance fees		---			---			10,074			9,088			---			---			10,074			9,088
Consulting fees		---			---			6,755			2,430			---			---			6,755			2,430
Other public service fees		---			---			3,749			3,442			---			---			3,749			3,442
Total operating revenues		7,877			7,725			20,578			14,960			---			---			28,455			22,685
Operating expenses
Salaries and employee benefits		4,499			4,730			15,137			12,594			---			---			19,636			17,324
Decrease to the long-term supplemental compensation accrual		(700	)		(2,010	)		(20	)		(40	)		---			---			(720	)		(2,050	)
Others		2,435			2,413			6,195			4,569			---			---			8,630			6,982
Total operating expenses		6,234			5,133			21,312			17,123			---			---			27,546			22,256
Income (loss) from operations		1,643			2,592			(734	)		(2,163	)		---			---			909			429
Dividends and interest income		---			---			---			---			5,132			2,988			5,132			2,988
Interest expenses on note payable collateralized by real estate		---			---			---			---			(24	)		(26	)		(24	)		(26	)
Interest expense on margin loans and others		---			---			---			---			(1,913	)		(236	)		(1,913	)		(236	)
Gains on sales of marketable securities, net		---			---			---			---			422			14,249			422			14,249
Net unrealized gains (losses) on marketable securities		---			---			---			---			32,669			(44,409	)		32,669			(44,409	)
Pretax income (loss)		1,643			2,592			(734	)		(2,163	)		36,286			(27,434	)		37,195			(27,005	)
Income tax (expense) benefit		(435	)		(560	)		135			705			(9,635	)		5,925			(9,935	)		6,070
Net income (loss)	$	1,208		$	2,032		$	(599	)	$	(1,458	)	$	26,651		$	(21,509	)	$	27,260		$	(20,935	)
Total assets	$	14,053		$	19,924		$	25,444		$	15,830		$	319,523		$	354,336		$	359,020		$	390,090
Capital expenditures	$	70		$	---		$	4		$	3		$	---		$	---		$	74		$	3

Overall Financial Results (000)

For the three months ended March 31

	Reportable Segments
	Traditional Business						Journal Technologies						Corporate						Total
	2023			2022			2023			2022			2023			2022			2023			2022
Revenues
Advertising	$	2,204		$	2,129		$	---		$	---		$	---		$	---		$	2,204		$	2,129
Circulation		1,108			1,072			---			---			---			---			1,108			1,072
Advertising service fees and other		778			742			---			---			---			---			778			742
Licensing and maintenance fees		---			---			5,679			4,608			---			---			5,679			4,608
Consulting fees		---			---			4,433			669			---			---			4,433			669
Other public service fees		---			---			1,952			1,729			---			---			1,952			1,729
Total operating revenues		4,090			3,943			12,064			7,006			---			---			16,154			10,949
Operating expenses
Salaries and employee benefits		2,281			2,415			7,724			6,432			---			---			10.005			8,847
Decrease to the long-term supplemental compensation accrual		(200	)		(1,920	)		---			---			---			---			(200	)		(1,920	)
Others		1,301			1,362			3,423			2,287			---			---			4,724			3,649
Total operating expenses		3,382			1,857			11,147			8,719			---			---			14,529			10,576
Income (loss) from operations		708			2,086			917			(1,713	)		---			---			1,625			373
Dividends and interest income		---			---			---			---			4,063			2,113			4,063			2,113
Interest expenses on note payable collateralized by real estate		---			---			---			---			(12	)		(13	)		(12	)		(13	)
Interest expense on margin loans and other		---			---			---			---			(1,052	)		(150	)		(1,052	)		(150	)
Losses on sales of marketable securities		---			---			---			---			---			(32,445	)		---			(32,445	)
Net unrealized gains (losses) on marketable securities		---			---			---			---			8,644			(8,321	)		8,644			(8,321	)
Pretax income (loss)		708			2,086			917			(1,713	)		11,643			(38,816	)		13,268			(38,443	)
Income tax (expense) benefit		(200	)		(355	)		(215	)		455			(3,420	)		10,530			(3,835	)		10,630
Net income (loss)	$	508		$	1,731		$	702		$	(1,258	)	$	8,223		$	(28,286	)	$	9,433		$	(27,813	)
Total assets	$	14,053		$	19,924		$	25,444		$	15,830		$	319,523		$	354,336		$	359,020		$	390,090
Capital expenditures	$	38		$	---		$	---		$	3		$	---		$	---		$	38		$	3

During the six months ended March 31, 2023, the Traditional Business had total operating revenues of $7,877,000 with $5,671,000 recognized after services were provided and $2,206,000 recognized ratably over the subscription terms, as compared with total operating revenues of $7,725,000 with $5,543,000 recognized after services were provided and $2,182,000 recognized ratably over the subscription terms in the prior fiscal year period. Total operating revenues for the Company’s software business were $20,578,000 with $10,687,000 recognized upon completion of services and $9,891,000 recognized ratably over the subscription periods, as compared with total operating revenues of $14,960,000 with $5,943,000 recognized upon completion of services and $9,017,000 recognized ratably over the subscription periods in the prior fiscal year period.

During the three months ended March 31, 2023, the Traditional Business had total operating revenues of $4,090,000 with $2,982,000 recognized after services were provided and $1,108,000 recognized ratably over the subscription terms, as compared with total operating revenues of $3,943,000 with $2,871,000 recognized after services were provided and $1,072,000 recognized ratably over the subscription terms in the prior fiscal year period. Total operating revenues for the Company’s software business were $12,064,000 with $6,566,000 recognized upon completion of services and $5,498,000 recognized ratably over the subscription periods, as compared with total operating revenues of $7,006,000 with $2,467,000 recognized upon completion of services and $4,539,000 recognized ratably over the subscription periods in the prior fiscal year period.

Approximately 72% of the Company’s revenues during the six-month period ended March 31, 2023 were derived from Journal Technologies, as compared with 66% in the prior year period. In addition, the Company’s revenues have been primarily from the United States with approximately 6% from foreign countries during the six-months ended March 31, 2023. Journal Technologies’ revenues are primarily from governmental agencies.