Related Party Transactions

3 Months Ended

Jul. 31, 2013

Related Party Transactions [Abstract]

Related Party Transactions

Note 7 - Related Party Transactions:

Investment Management (overview):

On December 23, 2010, the Company deconsolidated its asset management and mutual fund distribution businesses and its interest in these businesses was restructured as a non-voting revenues and non-voting profits interests in EAM.  Accordingly, the Company no longer reports this operation as a separate business segment, although it still maintains a significant interest in the cash flows generated by this business and will receive non-voting revenues and non-voting profits interests going forward, as discussed below.  Total assets in the Value Line Funds managed and/or distributed by EAM at July 31, 2013, were $2.2 billion,10.5% above total assets of $2.0 billion in the Value Line Funds managed by EAM at July 31, 2012.  The increase is a result of net appreciation in equity assets under management partially offset by redemptions within the funds.

The non-voting revenues and 90% of the Company’s non-voting profits interests due from EAM to the Company are payable each fiscal quarter under the provisions of the EAM Trust Agreement.  The distributable amounts earned through the balance sheet date, which is included in the Investment in EAM Trust on the Condensed Consolidated Balance Sheets, and not yet paid, were $1,752,000 and $1,621,000 at July 31, 2013 and April 30, 2013, 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 interests in EAM as follows:

	Three Months Ended July 31,
($ in thousands)	2013		2012
Non-voting revenues interest in EAM	$	1,598	$	1,394
Non-voting profits interest in EAM		171		79
	$	1,769	$	1,473

Transactions with Parent:

During the three months ended July 31, 2013 and July 31, 2012, the Company was reimbursed $51,000 and $0,  respectively, for payments it made on behalf of and for services the Company provided to the Parent.  Receivables from affiliates  or receivables from the Parent on the Consolidated Condensed Balance Sheets were $2,000 and $0 at July 31, 2013 and April 30, 2013, respectively.

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 to the Parent during the three months ended July 31, 2013 or July 31, 2012.   There were no prepaid federal income tax due from the Parent at July 31, 2013 and April 30, 2013.

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, 2013, the Parent owned 87.65% of the outstanding shares of common stock of the Company.