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Related Party Transactions
 3 Months Ended
Jul. 31, 2015
Related Party Transactions [Abstract]  
Related Party Transactions

Note 7 - Related Party Transactions:

 

Investment Management (overview):

 

The Company has a substantial non-voting revenues and non-voting profits interests in EAM, the asset manager to the Value Line Mutual Funds. Accordingly, the Company does not report this operation as a separate business segment, although it maintains a significant interest in the cash flows generated by this business and will receive ongoing payments in respect of its non-voting revenues and non-voting profits interests.

 

Total assets in the Value Line Funds managed and/or distributed by EAM at July 31, 2015, were $2.36 billion, 2.1% above total assets of $2.31 billion in the Value Line Funds managed and/or distributed  by EAM at July 31, 2014.

 

The Company’s non-voting revenues and non-voting profits interests in EAM entitle it to receive quarterly distributions in a range of 41% to 55% of EAM’s revenues (excluding distribution revenues) from EAM’s mutual fund business and 90% of the Company’s 50% interest in the residual profits of EAM which are payable each fiscal quarter under the provisions of the EAM Trust Agreement. Value Line’s percent share of EAM’s revenues calculated each fiscal quarter was 50.05% and 49.18% during the first quarter of fiscal 2016 and 2015, respectively. The distributable amounts earned through the balance sheet date, which is included in the Investment in EAM Trust on the Consolidated Condensed Balance Sheets, and not yet paid, were $2,037,000 and $1,951,000 at July 31, 2015 and April 30, 2015, respectively.

 

EAM Trust - VLI’s non-voting revenues and non-voting profits interests:

 

The Company holds non-voting revenues and non-voting profits interests in EAM which entitle the Company to receive from EAM an amount ranging from 41% to 55% of EAM’s investment management fee revenues from its mutual fund and separate accounts business. EAM currently has no separately managed account clients. The Company recorded income from its non-voting revenues interest and its non-voting profits interest in EAM as follows:

                 
  Three Months Ended July 31,  
($ in thousands)   2015     2014  
Non-voting revenues interest in EAM   $ 1,902     $ 1,833  
Non-voting profits interest in EAM     140       189  
    $ 2,042     $ 2,022  

 

Transactions with Parent:

 

During the three months ended July 31, 2015 and July 31, 2014, the Company was reimbursed $31,000 and $41,000, respectively, for payments it made on behalf of and for services the Company provided to the Parent. There were no receivables from affiliates including receivables from the Parent on the Consolidated Condensed Balance Sheets at July 31, 2015 and April 30, 2015.

 

The Company is a party to a tax-sharing arrangement with the Parent which allocates the tax liabilities of the two Companies between them. The Company made no federal tax payments made to the Parent during the three months ended July 31, 2015 and July 31, 2014, respectively.

 

From time to time, the Parent has purchased additional shares of common stock of the Company in the market when and as the Parent has determined it to be appropriate. The Parent may make additional purchases of common stock of the Company from time to time in the future. As of July 31, 2015, the Parent owned 88.12% of the outstanding shares of common stock of the Company.