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Note 6 - Reportable Segments
 12 Months Ended
Sep. 30, 2024
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

  
   

2024

    

2023

    

2024

    

2023

    

2024

    

2023

    

2024

    

2023

  

Revenues

                                                                

Advertising

   $ 9,325     $ 8,955     $ ---     $ ---     $ ---     $ ---     $ 9,325     $ 8,955  

Circulation

     4,462       4,403       ---       ---       ---       ---       4,462       4,403  

Advertising service fees and other

     3,039       2,895       ---       ---       ---       ---       3,039       2,895  

Licensing and maintenance fees

     ---       ---       28,265       23,503       ---       ---       28,265       23,503  

Consulting fees

     ---       ---       15,086       19,776       ---       ---       15,086       19,776  

Other public service fees

     ---       ---       9,754       8,177       ---       ---       9,754       8,177  

Total operating revenues

     16,826       16,253       53,105       51,456       ---       ---       69,931       67,709  

Operating expenses

                                                                

Salaries and employee benefits

     10,352       10,416       36,826       33,034       ---       ---       47,178       43,450  

Stock-based compensation

     30       ---       172       ---       ---       ---       202       ---  

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

     (495 )     (470 )     ---       175       ---       ---       (495 )     (295 )

Others

     5,360       4,626       13,616       13,276       ---       ---       18,976       17,902  

Total operating expenses

     15,247       14,572       50,614       46,485       ---       ---       65,861       61,057  

Income from operations

     1,579       1,681       2,491       4,971       ---       ---       4,070       6,652  
                                                                 

Dividends and interest income

     ---       ---       ---       ---       7,102       8,340       7,102       8,340  

Interest expenses on note payable collateralized by real estate and other

     ---       ---       ---       ---       (69 )     (77 )     (69 )     (77 )

Interest expense on margin loans

     ---       ---       ---       ---       (3,018 )     (4,255 )     (3,018 )     (4,255 )

Gains on sales of capital assets

     ---       ---       ---       ---       4       ---       4       ---  

Net realized and unrealized gains on marketable securities

     ---       ---       ---       ---       96,142       17,446       96,142       17,446  

Net unrealized gains (losses) on non-qualified deferred compensation plan

     ---       ---       ---       ---       47       (4 )     47       (4 )

Pretax income

     1,579       1,681       2,491       4,971       100,208       21,450       104,278       28,102  

Income tax expense

     (395 )     (520 )     (735 )     (1,450 )     (25,035 )     (4,680 )     (26,165 )     (6,650 )

Net income

   $ 1,184     $ 1,161     $ 1,756     $ 3,521     $ 75,173     $ 16,770     $ 78,113     $ 21,452  

Total assets

   $ 14,486     $ 18,744     $ 29,838     $ 33,100     $ 359,439     $ 303,016     $ 403,763     $ 354,860  

Capital expenditures

   $ 23     $ 70     $ 26     $ 16       ---       ---     $ 49     $ 86  

 

During fiscal 2024 and 2023, the Traditional Business had total operating revenues of $16,826,000 and $16,253,000 of which $12,364,000 and $11,850,000, respectively, were recognized after services were provided while $4,462,000 and $4,403,000, respectively, were recognized ratably over the subscription terms. Total operating revenues for the Company’s software business were $53,105,000 and $51,456,000, of which $25,112,000 and $28,209,000, respectively, were recognized upon completion of services while $27,993,000 and $23,247,000, respectively, were recognized ratably over the subscription periods.