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Note 6 - Reportable Segments
 12 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

6. REPORTABLE SEGMENTS

 

An operating segment is defined as a component of an enterprise which has discrete financial information that is evaluated regularly by the Company’s Chief Executive Officer to decide how to allocate resources and to assess performance.

 

In accordance with ASC 280-10, Segment Reporting, the Company has two segments of business. The Company’s reportable segments are: (i) the Traditional Business and (ii) 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 corporate income and expenses is set forth below:

 

Overall Financial Results (000)

  

For the twelve months ended September 30

  
                                                                 
   

Reportable Segments

                                  
   

Traditional

Business

    

Journal

Technologies

    

Corporate

    

Total

  
   

2023

    

2022

    

2023

    

2022

    

2023

    

2022

    

2023

    

2022

  

Revenues

                                                                

Advertising

   $ 8,955     $ 8,591     $ ---     $ ---     $ ---     $ ---     $ 8,955     $ 8,591  

Circulation

     4,403       4,394       ---       ---       ---       ---       4,403       4,394  

Advertising service fees and other

     2,895       2,937       ---       ---       ---       ---       2,895       2,937  

Licensing and maintenance fees

     ---       ---       23,503       19,192       ---       ---       23,503       19,192  

Consulting fees

     ---       ---       19,776       11,865       ---       ---       19,776       11,865  

Other public service fees

     ---       ---       8,177       7,030       ---       ---       8,177       7,030  

Total operating revenues

     16,253       15,922       51,456       38,087       ---       ---       67,709       54,009  

Operating expenses

                                                                

Salaries and employee benefits

     10,416       9,618       33,034       26,862       ---       ---       43,450       36,480  

(Decrease) increase to the long-term Supplemental compensation accrual

     (470 )     1,130       175       115       ---       ---       (295 )     1,245  

Others

     3,923       4,472       13,979       9,823       ---       ---       17,902       14,295  

Total operating expenses

     13,869       15,220       47,188       36,800       ---       ---       61,057       52,020  

Income from operations

     2,384       702       4,268       1,287       ---       ---       6,652       1,989  
                                                                 

Dividends and interest income

     ---       ---       ---       ---       8,336       5,451       8,336       5,451  

Gains on sale of land

     ---       ---       ---       ---       ---       272       ---       272  

Interest expenses on note payable collateralized by real estate and other

     ---       ---       ---       ---       (77 )     (83 )     (77 )     (83 )

Interest expense on margin loans

     ---       ---       ---       ---       (4,255 )     (1,026 )     (4,255 )     (1,026 )

Gains on sales of marketable securities, net

     ---       ---       ---       ---       422       14,249       422       14,249  

Net unrealized gains (losses) on marketable securities

     ---       ---       ---       ---       17,024       (123,401 )     17,024       (123,401 )

Pretax income (loss)

     2,384       702       4,268       1,287       21,450       (104,538 )     28,102       (102,549 )

Income tax (expense) benefit

     (520 )     (185 )     (1,450 )     (205 )     (4,680 )     27,315       (6,650 )     26,925  

Net income (loss)

   $ 1,864     $ 517     $ 2,818     $ 1,082     $ 16,770     $ (77,223 )   $ 21,452     $ (75,624 )

Total assets

   $ 18,744     $ 22,743     $ 33,100     $ 27,868     $ 303,016     $ 268,500     $ 354,860     $ 319,111  

Capital expenditures

   $ 70     $ 3     $ 16     $ 33       ---       ---     $ 86     $ 36  

 

During fiscal 2023 and 2022, the Traditional Business had total operating revenues of $16,253,000 and $15,922,000 of which $11,850,000 and $11,528,000, respectively, were recognized after services were provided while $4,403,000 and $4,394,000, respectively, were recognized ratably over the subscription terms. Total operating revenues for the Company’s software business were $51,456,000 and $38,087,000, of which $28,209,000 and $19,459,000, respectively, were recognized upon completion of services while $23,247,000 and $18,628,000, respectively, were recognized ratably over the subscription periods.