-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RLwMj95pTrpseKuAUz+ribwwoFj0KQ1qbxfeau3cw4Uu5afRDeLBPqCeOlf8PvIp Izqb2xgarKxWPXEcu2eV+g== 0000897101-02-000650.txt : 20020916 0000897101-02-000650.hdr.sgml : 20020916 20020916154303 ACCESSION NUMBER: 0000897101-02-000650 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020731 FILED AS OF DATE: 20020916 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VALUE LINE INC CENTRAL INDEX KEY: 0000717720 STANDARD INDUSTRIAL CLASSIFICATION: INVESTMENT ADVICE [6282] IRS NUMBER: 133139843 STATE OF INCORPORATION: NY FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-11306 FILM NUMBER: 02764910 BUSINESS ADDRESS: STREET 1: 220 E 42ND ST CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2129071500 10-Q 1 valueline024495_10q.txt VALUE LINE, INC. FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended July 31, 2002 Commission file number 0-11306 ------- VALUE LINE, INC. ---------------- (Exact name of registrant as specified in its charter) New York 13-3139843 - -------------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 220 East 42nd Street, New York, New York 10017-5891 - -------------------------------------------------------------------------------- (address of principal executive offices) (zip code) Registrant's telephone number including area code (212) 907-1500 -------------- Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes _X_ No ___ Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at July 31, 2002 ----- ---------------------------- Common stock, $.10 par value 9,980,125 Shares ---------------- PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS VALUE LINE, INC. CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AMOUNTS) (UNAUDITED)
July 31, April 30, 2002 2002 ------------ ------------ Assets Current Assets: Cash and cash equivalents (including short term investments of $92,118 and $117,177, respectively) $ 92,402 $ 117,401 Trading securities 489 3,624 Accounts receivable, net of allowance for doubtful accounts of $81 and $73, respectively 1,873 2,072 Receivable from affiliates 2,211 2,467 Prepaid expenses and other current assets 1,213 1,204 Deferred income taxes 575 575 ------------ ------------ Total current assets 98,763 127,343 Long term securities 147,532 129,044 Property and equipment, net 8,256 8,491 Capitalized software and other intangible assets, net 3,567 3,857 ------------ ------------ Total assets $ 258,118 $ 268,735 ============ ============ Liabilities and Shareholders' Equity Current Liabilities: Accounts payable and accrued liabilities $ 2,265 $ 3,681 Payable to clearing broker 14,259 10,803 Accrued salaries 2,102 1,859 Dividends payable 2,495 2,495 Accrued taxes payable 1,416 28 ------------ ------------ Total current liabilities 22,537 18,866 Unearned revenue 39,693 40,639 Deferred income taxes 8,379 13,225 Shareholders' Equity: Common stock, $.10 par value; authorized 30,000,000 shares; issued 10,000,000 shares 1,000 1,000 Additional paid-in capital 975 975 Retained earnings 174,265 173,760 Treasury stock, at cost (19,875 shares on 7/31/02 and 4/30/02) (383) (383) Accumulated other comprehensive income, net of tax 11,652 20,653 ------------ ------------ Total shareholders' equity 187,509 196,005 ------------ ------------ Total liabilities and shareholders' equity $ 258,118 $ 268,735 ============ ============
The accompanying notes are an integral part of these consolidated financial statements. 2 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS VALUE LINE, INC. CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
For the three months ended July 31, July 31, 2002 2001 ------------ ------------ Revenues: Investment periodicals and related publications $ 13,104 $ 13,330 Investment management fees & svcs 7,401 9,510 ------------ ------------ Total revenues 20,505 22,840 ------------ ------------ Expenses: Advertising and promotion 5,355 5,591 Salaries and employee benefits 5,702 5,884 Production and distribution 2,400 2,079 Office and administration 2,073 1,999 ------------ ------------ Total expenses 15,530 15,553 ------------ ------------ Income from operations 4,975 7,287 Income from securities trans., net 59 266 ------------ ------------ Income before income taxes 5,034 7,553 Provision for income taxes 2,034 2,954 ------------ ------------ Net income $ 3,000 $ 4,599 ============ ============ Earnings per share, basic & fully diluted $ 0.30 $ 0.46 ============ ============
The accompanying notes are an integral part of these consolidated financial statements. 3 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS VALUE LINE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED)
For the three months ended July 31, July 31, 2002 2001 ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 3,000 $ 4,599 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 825 761 Amortization of bond premium 2 -- (Gains)/losses on sales of trading securities and securities held for sale 612 (215) Unrealized losses on trading securities 159 703 Changes in assets and liabilities: Decrease in unearned revenue (946) (516) Decrease in deferred charges (135) (70) Decrease in accounts payable and accrued expenses (1,281) (1,295) Increase/(decrease) in accrued salaries 243 (876) Increase in accrued taxes payable 1,388 1,618 (Increase)/decrease in prepaid expenses and other current assets (9) 705 Decrease in accounts receivable 199 337 Decrease/(increase) in receivable from affiliates 256 (205) ------------ ------------ Total adjustments 1,313 947 ------------ ------------ NET CASH PROVIDED BY OPERATIONS 4,313 5,546 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sales of long term securities 21,396 -- Purchases of long term securities (77) (42) Purchases of securities held to maturity (50,046) -- Proceeds from sales of trading securities 2,702 2,954 Purchases of trading securities (492) (20,400) Acquisition of property, and equipment (118) (18) Expenditures for capitalized software (182) (99) ------------ ------------ NET CASH (USED IN) INVESTING ACTIVITIES (26,817) (17,605) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from sales of treasury stock -- 12 Dividends paid (2,495) (2,494) ------------ ------------ NET CASH USED IN FINANCING ACTIVITIES (2,495) (2,482) ------------ ------------ Net (decrease) in cash and cash equivalents (24,999) (14,541) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 117,401 86,424 ------------ ------------ CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 92,402 $ 71,883 ============ ============
The accompanying notes are an integral part of these consolidated financial statements. 4 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS VALUE LINE, INC. STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE THREE MONTHS ENDED JULY 31, 2002 (IN THOUSANDS, EXCEPT SHARE AMOUNTS) (UNAUDITED)
Common stock Accumulated Number Additional Other of paid-in Treasury Comprehensive Retained Comprehensive shares Amount capital Stock income earnings income Total ----------- -------- ---------- ----------- ------------ ---------- ------------- ---------- Balance at April 30, 2002 9,980,125 $ 1,000 $ 975 ($ 383) $ 173,760 $ 20,653 $ 196,005 Comprehensive income Net income $ 3,000 3,000 3,000 Other comprehensive income, net of tax: Change in unrealized gains on securities (9,001) (9,001) (9,001) ------------ Comprehensive income ($ 6,001) ============ Dividends declared (2,495) (2,495) ----------- -------- ---------- ----------- ---------- ------------ ---------- Balance at July 31, 2002 9,980,125 $ 1,000 $ 975 ($ 383) $ 174,265 $ 11,652 $ 187,509 =========== ======== ========== =========== ========== ============ ==========
The accompanying notes are an integral part of these consolidated financial statements. 5 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS VALUE LINE, INC. STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE THREE MONTHS ENDED JULY 31, 2001 (IN THOUSANDS, EXCEPT SHARE AMOUNTS) (UNAUDITED)
Common stock Accumulated Number Additional Other of paid-in Treasury Comprehensive Retained Comprehensive shares Amount capital Stock income earnings income Total ----------- -------- ---------- ----------- ------------ ---------- ------------- ---------- Balance at April 30, 2001 9,978,925 $ 1,000 $ 963 ($ 406) $ 163,416 $ 35,233 $ 200,206 Comprehensive income Net income $ 4,599 4,599 4,599 Other comprehensive income, net of tax: Change in unrealized gains on securities 119 119 119 ------------ Comprehensive income $ 4,718 ============ Exercise of stock options 400 4 8 12 Dividends declared (2,495) (2,495) ----------- -------- ---------- ----------- ---------- ------------ ---------- Balance at July 31, 2001 9,979,325 $ 1,000 $ 967 ($ 398) $ 165,520 $ 35,352 $ 202,441 =========== ======== ========== =========== ========== ============ ==========
The accompanying notes are an integral part of these consolidated financial statements. 6 VALUE LINE, INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Significant Accounting Policies - Note 1: - ----------------------------------------- In the opinion of management, the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of normal recurring accruals except as noted below) considered necessary for a fair presentation. This report should be read in conjunction with the financial statements and footnotes contained in the Company's annual report on Form 10-K, dated July 26, 2002 for the fiscal year ended April 30, 2002. Results of operations covered by this report may not be indicative of the results of operations for the entire year. Cash and Cash Equivalents: The Company considers all cash held at banks and invested in the Value Line money market funds with an original maturity of less than three months to be cash and cash equivalents. As of July 31, 2002 and April 30, 2002, cash equivalents included $91,821,000 and $116,885,000, respectively, invested in the Value Line money market funds. Valuation of Securities: The Company's long-term securities portfolio, which consists of shares of the Value Line Mutual Funds and government debt securities, is accounted for in accordance with Statement of Financial Accounting Standards No.115, "Accounting for Certain Investments in Debt and Equity Securities". The Value Line Mutual Funds are valued at market with unrealized gains and losses on these securities reported, net of applicable taxes, as a separate component of Shareholders' Equity. Investments in government debt securities that are held to maturity are carried at amortized cost. Realized gains and losses on sales of the long term securities are recorded in earnings on trade date and are determined on the identified cost method. Trading securities, which consist of securities held by the Company, are valued at market with realized and unrealized gains and losses included in earnings. Advertising expenses: The Company expenses advertising costs as incurred. Earnings per Share, basic & fully diluted: Earnings per share are based on the weighted average number of shares of common stock outstanding during the period. Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 7 VALUE LINE, INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Marketable Securities - Note 2: - ------------------------------- Trading Securities: Securities held by the Company had an aggregate cost of $532,000 and a market value of $489,000 at July 31, 2002, and an aggregate cost of $3,508,000 and a market value of $3,624,000 at April 30, 2002. Long-Term Securities: Equity Securities Available for Sale: The aggregate cost of the long-term equity securities was $42,662,000 and the market value was $60,591,000 at July 31, 2002. The aggregate cost of the long-term equity securities at April 30, 2002 was $61,451,000 and the market value was $93,226,000. For the three months ended July 31, 2002, the decrease in gross unrealized appreciation on these securities of $13,845,000, net of deferred taxes of $4,846,000, was included in shareholders' equity. During the quarter, the Company sold various securities from its long term equity securities portfolio. The proceeds from these sales were $18,984,000 and the related gain on these sales was $123,000. Government Debt Securities Held to Maturity: The Company's investment in debt securities are held to maturity and valued at amortized cost. The amortized cost and aggregate fair value at July 31, 2002 were $86,941,000 and $88,200,000 for U.S government debt securities which mature as follows:
(In Thousands) Amortized Gross Unrealized Cost Fair Value Holding Gains - ----------------------------------------------------------------------------------------------- Due in 1-2 years 8,011 8,127 116 Due in 2-5 years 78,930 80,073 1,143 --------------------------------------------------- Total investment in debt securities $86,941 $88,200 $1,259 ===================================================
The average yield on the debt securities held at July 31, 2002 was 4.11%. Supplemental Disclosure of Cash Flow Information - Note 3: - ---------------------------------------------------------- Cash payments for income taxes were $646,000 and $1,330,000 during the three months ended July 31, 2002 and 2001, respectively. Employees' Profit Sharing and Savings Plan - Note 4: - ---------------------------------------------------- Substantially all employees of the Company and its subsidiaries are members of the Value Line, Inc. Profit Sharing and Savings Plan (the "Plan"). In general, this is a qualified, contributory plan which provides for a discretionary annual Company contribution which is determined by a formula based upon the salaries of eligible employees and the amount of consolidated net operating income as defined in the Plan. The estimated profit sharing plan contribution, which is included as an expense in salaries and employee benefits in the Consolidated Statement of Income for the three months ended July 31, 2002 and 2001, was $199,000 and $375,000, respectively. 8 VALUE LINE, INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Comprehensive Income - Note 5: - ------------------------------ Statement no. 130 requires the reporting of comprehensive income in addition to net income from operations. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. At July 31, 2002 and 2001, the Company held long term equity securities classified as available-for-sale. For the three months ended July 31, 2002 decreases in gross unrealized gains on these securities were $13,845,000 and the decreases in related deferred taxes were $4,846,000. The increase during the first quarter of fiscal 2001 in gross unrealized gains on these securities and the related deferred taxes was $183,000 and $64,000, respectively. Related Party Transactions - Note 6: - ------------------------------------ The Company acts as investment adviser and manager for fifteen open-ended investment companies, the Value Line Family of Funds. The Company earns investment management fees based upon the average daily net asset values of the respective funds. Effective July 1, 2000, the Company received service and distribution fees under rule 12b-1 of the Investment Company Act of 1940 from all but two of the fifteen mutual funds for which Value Line is the adviser. The Company also earns brokerage commission income, net of clearing fees, on securities transactions executed by Value Line Securities, Inc. on behalf of the funds that are cleared on a fully disclosed basis through non-affiliated brokers. For the three months ended July 31, 2002 and 2001, investment management fees, 12b-1 service and distribution fees and brokerage commission income, net of clearing fee amounted to $6,945,000 and $8,925,000, respectively. These amounts include service and distribution fees of $1,390,000 and $1,693,000, respectively. The related receivables from the funds for management advisory fees and 12b-1 service fees included in Receivable from affiliates were $2,123,000 and $2,417,000 at July 31, 2002 and April 30, 2002, respectively. For the three months ended July 31, 2002 and 2001, the Company was reimbursed $140,000 and $146,000, respectively, for payments it made on behalf of and services it provided to Arnold Bernhard and Company, Inc. ("Parent"). At July 31, 2002 and April 30, 2002, Receivable from Affiliates included a receivable from the Parent of $41,000 and $47,000 respectively. 9 VALUE LINE, INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Federal, State and Local Income Taxes - Note 7: - ----------------------------------------------- The Company computes its tax in accordance with the provisions of Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes". The provision for income taxes includes the following: Three months ended July 31, 2002 2001 ---------------------------------- (in thousands) Current: Federal $1,650 $2,692 State and local 439 507 ---------------------------------- 2,089 3,199 Deferred: Federal (55) (246) State and local -- 1 ---------------------------------- (55) (245) ---------------------------------- $2,034 $2,954 ================================== Deferred taxes are provided for temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. The tax effect of temporary differences giving rise to the Company's deferred tax asset/(liability) are primarily a result of unrealized gains on the Company's trading and long-term securities portfolios. Business Segments - Note 8: - --------------------------- The Company operates two reportable business segments: Publishing and Investment Management Services. The publishing segment produces investment related periodicals in both print and electronic form. The investment management segment provides advisory services to mutual funds, institutional and individual clients as well as brokerage services for the Value Line family of mutual funds. The segments are differentiated by the products and services they offer. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company allocates all revenues and expenses, except for depreciation related to corporate assets, between the two reportable segments. 10 VALUE LINE, INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Disclosure of Reportable Segment Profit and Segment Assets (in thousands)
Three months ended July 31, 2002 Publishing Investment Total Management Services Revenues from external customers $13,104 $7,401 $20,505 Intersegment revenues 16 -- 16 Income from securities transactions 37 22 59 Depreciation and amortization 751 38 789 Segment profit 2,602 2,409 5,011 Segment assets 18,828 238,379 257,207 Expenditures for segment assets 298 2 300 Three months ended July 31, 2001 Publishing Investment Total Management Services Revenues from external customers $13,330 $9,510 $22,840 Intersegment revenues 17 -- 17 Income from securities transactions 41 225 266 Depreciation and amortization 731 16 747 Segment profit 3,511 3,790 7,301 Segment assets 19,143 251,876 271,019 Expenditures for segment assets 112 5 117
11 VALUE LINE, INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Reconciliation of Reportable Segment Revenues, Operating Profit and Assets (in thousands)
Three months ended July 31, 2002 2001 Revenues Total revenues for reportable segments $20,521 $22,857 Elimination of intersegment revenues (16) (17) ---------------------------------- Total consolidated revenues $20,505 $22,840 ================================== Segment profit Total profit for reportable segments $5,070 $7,567 Less: Depreciation related to corporate assets (36) (14) ---------------------------------- Income before income taxes $5,034 $7,553 ================================== Assets Total assets for reportable segments $257,207 $271,019 Corporate assets 911 1,134 ---------------------------------- Consolidated total assets $258,118 $272,153 ==================================
12 Item 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. LIQUIDITY AND CAPITAL RESOURCES The Company had liquid resources, which were used in its business, of $223,758,000 at July 31, 2002. In addition to $76,226,000 of working capital, the Company had long-term securities with a market value of $147,532,000, that, although classified as non-current assets, are also readily marketable should the need arise. The Company's cash flow from operations of $4,313,000 for the first quarter of fiscal 2003 was lower than cash flow of $5,546,000 for the same period last fiscal year. The decrease in cash flow from operations was primarily a result of lower net earnings that resulted primarily from lower investment management fees and services revenues. Net cash outflows from investing activities during the first three months of fiscal 2003 were $26,817,000 due largely to the Company's decision to re-deploy its cash holdings into government securities with higher yields than the cash instruments. From time to time, the Company's Parent has purchased additional shares of Value Line, Inc. in the market when, and as the Parent has determined it to be appropriate. The Company understands that the Parent may make additional purchases from time to time in the future. Management believes that the Company's cash and other liquid asset resources used in its business together with the future cash flows from operations will be sufficient to finance current and forecasted operations. Management anticipates no borrowing for fiscal year 2003. OPERATING RESULTS Net income of $3,000,000 or $0.30 per share for the first quarter of fiscal 2003 compared to net income of $4,599,000 or $0.46 per share for the same period last fiscal year. Operating income of $4,975,000 for the first three months ended July 31, 2002 was below operating income of $7,287,000 for the three months ended July 31, 2001. Revenues of $20,505,000 for the three months ended July 31, 2002 were 10% below revenues of $22,840,000 in fiscal 2002. The decline in net income during the three months ended July 31, 2002 was largely the result of the lower level of revenues, primarily reduced investment management fees and services revenues due to a decline in average net asset values in the Value Line mutual funds. The change in net asset values in the Value Line mutual funds was largely attributable to the overall decline in the financial markets with the NASDAQ index falling 34% during the twelve months ended July 31, 2002, representing a 74% decline from its all time high. Subscription revenues of $13,104,000 for the three months ended July 31, 2002 were 2% below revenues for the same period of the prior fiscal year. The decrease in subscription revenues compared to the prior year's was primarily a result of the decline in revenues from THE VALUE LINE INVESTMENT SURVEY and related products, which included THE VALUE LINE INVESTMENT SURVEY FOR WINDOWS, THE VALUE LINE RESEARCH CENTER, THE VALUE LINE 600, THE VLIS SMALL AND MID-CAP STOCK EDITION, AND VALUE LINE SELECT. As of July 31, 2002, combined circulation to THE VALUE INVESTMENT SURVEY, THE VALUE LINE INVESTMENT SURVEY FOR WINDOWS, THE VALUE LINE RESEARCH CENTER, AND THE VALUE LINE 600 was 7% higher than the prior year's circulation. Investment management fees and services revenues of $7,401,000 for the three months ended July 31, 2002 were 22% below the prior fiscal year's revenues. The change in total subscription and investment management fees and services revenues was primarily attributable to the continued difficult financial market conditions. 13 Operating expenses of $15,530,000 for the three months ended July 31, 2002 were comparable to last year's expenses of $15,553,000. Total advertising and promotional expenses of $5,355,000 were 4% below the prior year's expenses of $5,591,000. The decrease in advertising expenses resulted primarily from a lower level of media advertising and a reduced level of direct mail campaigns due to the weak financial market conditions. Salaries and employee benefits expenses of $5,702,000 were 3% below expenses of $5,884,000 recorded in the prior fiscal year. Printing, paper and distribution costs of $2,400,000 for the three months ended July 31, 2002 were 15% above expenses of $2,079,000 for the three months ended July 31, 2001. The increase in production and distribution expenses resulted from an increase in subscription circulation, an increase in U.S. postal rates and amortization costs for new product development expenditures. Office and administrative expenses of $2,073,000 were 4% higher than last year's expenses of $1,999,000. The net increase in administrative expenses resulted primarily from higher insurance fees and depreciation expenses offset in part by a decline in rent expenses. The Company's securities portfolios produced a gain of $59,000 for the first three months ended July 31, 2002 versus income of $266,000 for the same period last fiscal year. The Company's trading portfolio produced losses of $925,000 during the three months ended July 31, 2002 versus losses of $488,000 during the same period last fiscal year. The value of the Company's securities portfolios has been negatively impacted by the declining financial market with the NASDAQ down 21% during the three months ended July 31, 2002. Income from securities transactions also included dividend and interest income of $842,000 and capital gains of $123,000 from sales of securities from the Company's long-term portfolio for the three months ended July 31, 2002. This compares to dividend and interest income of $760,000 for the same period last fiscal year. 14 VALUE LINE, INC. Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Form 10Q report for the period ended July 31, 2002 to be signed on its behalf by the undersigned thereunto duly authorized. Value Line, Inc. (Registrant) Date: September 12, 2002 By: s/ Jean Bernhard Buttner ------------------------- Jean Bernhard Buttner Chairman & Chief Executive Officer Date: September 12, 2002 By: s/ Stephen R. Anastasio ------------------------- Stephen R. Anastasio Chief Accounting Officer Date: September 12, 2002 By: s/ David T. Henigson ---------------------------- David T. Henigson Vice President and Treasurer 15 CERTIFICATIONS I, Jean Bernhard Buttner, certify that: 1. I have reviewed this quarterly report on Form 10-Q of Value Line, Inc; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; and 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report. Date: September 12, 2002 By: s/ Jean Bernhard Buttner ---------------------------------- Jean Bernhard Buttner Chairman & Chief Executive Officer 16 CERTIFICATIONS I, David T. Henigson, certify that: 4. I have reviewed this quarterly report on Form 10-Q of Value Line, Inc; 5. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; and 6. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report. Date: September 12, 2002 By: s/ David T. Henigson ---------------------------------- David T. Henigson Vice President & Treasurer 17 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 In accordance with 18 U.S.C. Section 1350, the undersigned hereby certify, in the indicated capacities with respect to Value Line, Inc. (the "Issuer"), that the quarterly report on Form 10-Q for the quarter ended July 31, 2002 of the issuer fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934 and that the information contained in the quarterly report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the issuer. This certification is not to be deemed to be filed pursuant to the Securities Exchange Act of 1934 and does not constitute a part of the quarterly report on Form 10-Q of the issuer accompanying this certification. Date: September 12, 2002 By: s/ Jean Bernhard Buttner ---------------------------------- Jean Bernhard Buttner Chairman & Chief Executive Officer Date: September 12, 2002 By: s/ David T. Henigson ---------------------------------- David T. Henigson Vice President & Treasurer 18 -----END PRIVACY-ENHANCED MESSAGE-----