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Note 12 - Operating Segments
 6 Months Ended
Mar. 31, 2024
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

  
   

2024

    

2023

    

2024

    

2023

    

2024

    

2023

    

2024

    

2023

  

Revenues

                                                                

Advertising

   $ 4,403     $ 4,194     $ -     $ -     $ -     $ -     $ 4,403     $ 4,194  

Circulation

     2,194       2,206       -       -       -       -       2,194       2,206  

Advertising service fees and other

     1,402       1,477       -       -       -       -       1,402       1,477  

Licensing and maintenance fees

     -       -       13,411       10,074       -       -       13,411       10,074  

Consulting fees

     -       -       6,501       6,755       -       -       6,501       6,755  

Other public service fees

     -       -       4,653       3,749       -       -       4,653       3,749  

Total operating revenues

     7,999       7,877       24,565       20,578       -       -       32,564       28,455  

Operating expenses

                                                                

Salaries and employee benefits

     5,173       4,499       18,185       15,279       -       -       23,358       19,778  

Decrease to the long-term supplemental compensation accrual

     (800 )     (700 )     (30 )     (20 )     -       -       (830 )     (720 )

Others

     2,765       2,435       6,015       6,053       -       -       8,780       8,488  

Total operating expenses

     7,138       6,234       24,170       21,312       -       -       31,308       27,546  

Income (loss) from operations

     861       1,643       395       (734 )     -       -       1,256       909  

Dividends and interest income

     -       -       -       -       2,858       5,132       2,858       5,132  

Interest expenses on note payable collateralized by real estate

     -       -       -       -       (21 )     (24 )     (21 )     (24 )

Interest expense on margin loans and others

     -       -       -       -       (2,187 )     (1,913 )     (2,187 )     (1,913 )

Gains on sales of marketable securities, net

     -       -       -       -       14,261       422       14,261       422  

Net unrealized gains on marketable securities

     -       -       -       -       20,193       32,669       20,193       32,669  

Pretax income (loss)

     861       1,643       395       (734 )     35,104       36,286       36,360       37,195  

Income tax (expense) benefit

     (200 )     (435 )     (90 )     135       (8,040 )     (9,635 )     (8,330 )     (9,935 )

Net income (loss)

   $ 661     $ 1,208     $ 305     $ (599 )   $ 27,064     $ 26,651     $ 28,030     $ 27,260  

Total assets

   $ 14,807     $ 14,053     $ 23,937     $ 25,444     $ 297,003     $ 319,523     $ 335,747     $ 359,020  

Capital expenditures

   $ 23     $ 70     $ -     $ 4     $ -     $ -     $ 23     $ 74  

 

 

Overall Financial Results (000)

For the three months ended March 31

 

   

Reportable Segments

                                  
   

Traditional

Business

    

Journal

Technologies

    

Corporate

    

Total

  
   

2024

    

2023

    

2024

    

2023

    

2024

    

2023

    

2024

    

2023

  

Revenues

                                                                

Advertising

   $ 2,316     $ 2,204     $ -     $ -     $ -     $ -     $ 2,316     $ 2,204  

Circulation

     1,099       1,108       -       -       -       -       1,099       1,108  

Advertising service fees and other

     697       778       -       -       -       -       697       778  

Licensing and maintenance fees

     -       -       6,854       5,679       -       -       6,854       5,679  

Consulting fees

     -       -       3,199       4,433       -       -       3,199       4,433  

Other public service fees

     -       -       2,406       1,952       -       -       2,406       1,952  

Total operating revenues

     4,112       4,090       12,459       12,064       -       -       16,571       16,154  

Operating expenses

                                                                

Salaries and employee benefits

     2,624       2,281       9,387       7,866       -       -       12,011       10,147  

Decrease to the long-term supplemental compensation accrual

     (380 )     (200 )     (30 )     -       -       -       (410 )     (200 )

Others

     1,294       1,301       3,043       3,281       -       -       4,337       4,582  

Total operating expenses

     3,538       3,382       12,400       11,147       -       -       15,938       14,529  

Income from operations

     574       708       59       917       -       -       633       1,625  
                                                                 

Dividends and interest income

     -       -       -       -       1,289       4,063       1,289       4,063  

Interest expenses on note payable collateralized by real estate

     -       -       -       -       (10 )     (12 )     (10 )     (12 )

Interest expense on margin loans and other

     -       -       -       -       (1,056 )     (1,052 )     (1,056 )     (1,052 )

Gains on sales of marketable securities

     -       -       -       -       14,261       -       14,261       -  

Net unrealized gains on marketable securities

     -       -       -       -       5,503       8,644       5,503       8,644  

Pretax income

     574       708       59       917       19,987       11,643       20,620       13,268  

Income tax (expense) benefit

     (145 )     (200 )     160       (215 )     (5,220 )     (3,420 )     (5,205 )     (3,835 )

Net income

   $ 429     $ 508     $ 219     $ 702     $ 14,767     $ 8,223     $ 15,415     $ 9,433  

Total assets

   $ 14,807     $ 14,053     $ 23,937     $ 25,444     $ 297,003     $ 319,523     $ 335,747     $ 359,020  

Capital expenditures

   $ 18     $ 38     $ -     $ -     $ -     $ -     $ 18     $ 38  

 

During the six months ended March 31, 2024, the Traditional Business had total operating revenues of $7,999,000 with $5,805,000 recognized after services were provided and $2,194,000 recognized ratably over the subscription terms, as compared with 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 in the prior fiscal year period. Total operating revenues for the Company’s software business were $24,565,000 with $11,384,000 recognized upon completion of services and $13,181,000 recognized ratably over the subscription periods, as compared with total operating revenues of $20,578,000 with $10,687,000 recognized upon completion of services and $9,891,000 recognized ratably over the subscription periods in the prior fiscal year period.

 

During the three months ended March 31, 2024, the Traditional Business had total operating revenues of $4,112,000 with $3,013,000 recognized after services were provided and $1,099,000 recognized ratably over the subscription terms, as compared with 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 in the prior fiscal year period. Total operating revenues for the Company’s software business were $12,459,000 with $5,814,000 recognized upon completion of services and $6,645,000 recognized ratably over the subscription periods, as compared with total operating revenues of $12,064,000 with $6,566,000 recognized upon completion of services and $5,498,000 recognized ratably over the subscription periods in the prior fiscal year period.

 

Approximately 75% of the Company’s revenues were derived from Journal Technologies during both the three-month periods ended March 31, 2024 and 2023. In addition, the Company’s revenues have been primarily from the United States with approximately 14% from foreign countries during the six-months ended March 31, 2023. Journal Technologies’ revenues are primarily from governmental agencies.