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Note 12 - Operating Segments
 9 Months Ended
Jun. 30, 2025
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. Corporate is presented below as a non-operating segment to reconcile segment results to the Company’s consolidated financial statement line-item totals. Additional detail about each of the reportable segments and its income and expenses is set forth below:

 

Overall Financial Results (000)

For the nine months ended June 30

 

   

Reportable Segments

                                  
   

Traditional

Business

    

Journal

Technologies

    

Corporate

    

Total

  
   

2025

    

2024

    

2025

    

2024

    

2025

    

2024

    

2025

    

2024

  

Revenues

                                                                

Advertising

   $ 7,642     $ 6,939     $ -     $ -     $ -     $ -     $ 7,642     $ 6,939  

Circulation

     3,196       3,283       -       -       -       -       3,196       3,283  

Advertising service fees and other

     2,514       2,204       -       -       -       -       2,514       2,204  

Licensing and maintenance fees

     -       -       22,990       20,572       -       -       22,990       20,572  

Consulting fees

     -       -       11,792       9,939       -       -       11,792       9,939  

Other public service fees

     -       -       11,152       7,121       -       -       11,152       7,121  

Total operating revenues

     13,352       12,426       45,934       37,632       -       -       59,286       50,058  

Operating expenses

                                                                

Salaries and employee benefits

     8,313       7,829       31,207       27,354       -       -       39,520       35,183  

Stock-based compensation

     17       -       95       -       -       -       112       -  

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

     (70 )     (1,380 )     10       (30 )     -       -       (60 )     (1,410 )

Others

     4,855       4,376       9,930       9,563       -       -       14,785       13,939  

Total operating expenses

     13,115       10,825       41,242       36,887       -       -       54,357       47,712  

Income from operations

     237       1,601       4,692       745       -       -       4,929       2,346  

Dividends and interest income

     -       -       -       -       6,158       5,857       6,158       5,857  

Rental income

     -       -       -       -       24       -       24       -  

Interest expense on note payable collateralized by real estate

     -       -       -       -       (27 )     (31 )     (27 )     (31 )

Interest expense on margin loans and others

     -       -       -       -       (1,050 )     (2,622 )     (1,050 )     (2,622 )

Increase in fair value of derivative asset

     -       -       -       -       75       -       75       -  

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

     -       -       -       -       (33 )     173       (33 )     173  

Net realized and unrealized gains on marketable securities

     -               -       -       84,320       62,472       84,320       62,472  

Pretax income

     237       1,601       4,692       745       89,467       65,849       94,396       68,195  

Income tax expense

     (60 )     (390 )     (1,255 )     (380 )     (23,095 )     (16,040 )     (24,410 )     (16,810 )

Net income

   $ 177     $ 1,211     $ 3,437     $ 365     $ 66,372     $ 49,809     $ 69,986     $ 51,385  

Total assets

   $ 19,853     $ 12,893     $ 31,857     $ 31,231     $ 443,011     $ 325,737     $ 494,721     $ 369,861  

Capital expenditures

   $ -     $ 23     $ -     $ -     $ -     $ -     $ -     $ 23  

 

Overall Financial Results (000)

For the three months ended June 30

 

   

Reportable Segments

                                  
   

Traditional

Business

    

Journal

Technologies

    

Corporate

    

Total

  
   

2025

    

2024

    

2025

    

2024

    

2025

    

2024

    

2025

    

2024

  

Revenues

                                                                

Advertising

   $ 2,798     $ 2,536     $ -     $ -     $ -     $ -     $ 2,798     $ 2,536  

Circulation

     1,069       1,089       -       -       -       -       1,069       1,089  

Advertising service fees and other

     1,014       802       -       -       -       -       1,014       802  

Licensing and maintenance fees

     -       -       7,964       7,161       -       -       7,964       7,161  

Consulting fees

     -       -       6,529       3,438       -       -       6,529       3,438  

Other public service fees

     -       -       4,032       2,468       -       -       4,032       2,468  

Total operating revenues

     4,881       4,427       18,525       13,067       -       -       23,406       17,494  

Operating expenses

                                                                

Salaries and employee benefits

     3,303       2,656       11,475       9,341       -       -       14,778       11,997  

Stock-based compensation

     3       -       20       -       -       -       23       -  

Increase (decrease) to the long-term supplemental compensation accrual

     565       (580 )     10       -       -       -       575       (580 )

Others

     1,944       1,611       2,862       3,376       -       -       4,806       4,987  

Total operating expenses

     5,815       3,687       14,367       12,717       -       -       20,182       16,404  

Income from operations

     (934 )     740       4,158       350       -       -       3,224       1,090  

Dividends and interest income

     -       -       -       -       3,796       2,999       3,796       2,999  

Rental income

     -       -       -       -       15       -       15       -  

Interest expense on note payable collateralized by real estate

     -       -       -       -       (9 )     (10 )     (9 )     (10 )

Interest expense on margin loans and other

     -       -       -       -       (323 )     (435 )     (323 )     (435 )

Decrease in fair value of derivative asset

     -       -       -       -       (13 )     -       (13 )     -  

Net unrealized gains on non-qualified compensation plan

     -       -       -       -       20       173       20       173  

Net unrealized gains on marketable securities

     -       -       -       -       11,521       28,018       11,521       28,018  

Pretax income

     (934 )     740       4,158       350       15,007       30,745       18,231       31,835  

Income tax expense

     255       (190 )     (1,070 )     (290 )     (2,995 )     (8,000 )     (3,810 )     (8,480 )

Net income

   $ (679 )   $ 550     $ 3,088     $ 60     $ 12,012     $ 22,745     $ 14,421     $ 23,355  

Total assets

   $ 19,853     $ 12,893     $ 31,857     $ 31,231     $ 443,011     $ 325,737     $ 494,721     $ 369,861  

Capital expenditures

   $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -  

 

 

During the nine months ended June 30, 2025, the Traditional Business had total operating revenues of $13,352,000 with $10,156,000 recognized after services were provided and $3,196,000 recognized ratably over the subscription terms, as compared with total operating revenues of $12,426,000 with $9,143,000 recognized after services were provided and $3,283,000 recognized ratably over the subscription terms in the prior fiscal year period. Total operating revenues for the Company’s software business were $45,934,000 with $23,033,000 recognized upon completion of services and $22,901,000 recognized ratably over the subscription periods, as compared with total operating revenues of $37,632,000 with $17,329,000 recognized upon completion of services and $20,303,000 recognized ratably over the subscription periods in the prior fiscal year period.

 

During the three months ended June 30, 2025, the Traditional Business had total operating revenues of $4,881,000 with $3,812,000 recognized after services were provided and $1,069,000 recognized ratably over the subscription terms, as compared with total operating revenues of $4,427,000 with $3,338,000 recognized after services were provided and $1,089,000 recognized ratably over the subscription terms in the prior fiscal year period. Total operating revenues for the Company’s software business were $18,525,000 with $10,561,000 recognized upon completion of services and $7,964,000 recognized ratably over the subscription periods, as compared with total operating revenues of $13,067,000 with $5,945,000 recognized upon completion of services and $7,122,000 recognized ratably over the subscription periods in the prior fiscal year period.

 

Approximately 79% of the Company’s revenues were derived from Journal Technologies during the three months ended June 30, 2025 and 75% during the three months ended June 30, 2024. In addition, the Company’s revenues have been primarily from the United States with approximately 9% from foreign countries during the nine months ended June 30, 2024. Journal Technologies’ revenues are primarily from governmental agencies.