10-Q 1 a2118650z10-q.txt 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, 2003 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, 2003 ----- ---------------------------- Common stock, $.10 par value 9,981,600 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, 2003 2003 ---------- ---------- Assets Current Assets: Cash and cash equivalents (including short term investments of $13,368 and $9,774, respectively) $ 13,762 $ 10,217 Trading securities 10,385 3,093 Accounts receivable, net of allowance for doubtful accounts of $45 and $41, respectively 2,731 2,846 Receivable from affiliates 2,500 2,310 Prepaid expenses and other current assets 912 1,244 Deferred income taxes 48 48 ---------- ---------- Total current assets 30,338 19,758 Long term securities 211,026 216,063 Property and equipment, net 7,114 7,393 Capitalized software and other intangible assets, net 3,374 3,600 ---------- ---------- Total assets $ 251,852 $ 246,814 ========== ========== Liabilities and Shareholders' Equity Current Liabilities: Accounts payable and accrued liabilities $ 2,747 $ 2,852 Accrued salaries 1,371 1,390 Dividends payable 2,495 2,495 Accrued taxes payable 2,573 613 ---------- ---------- Total current liabilities 9,186 7,350 Unearned revenue 37,658 38,579 Deferred income taxes 5,725 5,157 Deferred charges 350 350 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 991 991 Retained earnings 186,271 183,768 Treasury stock, at cost (18,400 shares on 7/31/03 and 4/30/03) (354) (354) Accumulated other comprehensive income, net of tax 11,025 9,973 ---------- ---------- Total shareholders' equity 198,933 195,378 ---------- ---------- Total liabilities and shareholders' equity $ 251,852 $ 246,814 ========== ==========
The accompanying notes are an integral part of these consolidated financial statements. 2 VALUE LINE, INC. CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
FOR THE THREE MONTHS ENDED JULY 31, JULY 31, 2003 2002 ---------- ---------- Revenues: Investment periodicals and related publications $ 13,004 $ 13,104 Investment management fees & svcs 7,914 7,401 ---------- ---------- Total revenues 20,918 20,505 ---------- ---------- Expenses: Advertising and promotion 5,597 5,355 Salaries and employee benefits 5,554 5,702 Production and distribution 2,220 2,400 Office and administration 1,975 2,073 ---------- ---------- Total expenses 15,346 15,530 ---------- ---------- Income from operations 5,572 4,975 Income from securities trans., net 2,539 59 ---------- ---------- Income before income taxes 8,111 5,034 Provision for income taxes 3,113 2,034 ---------- ---------- Net income $ 4,998 $ 3,000 ========== ========== Earnings per share, basic & fully diluted $ 0.50 $ 0.30 ========== ==========
The accompanying notes are an integral part of these consolidated financial statements. 3 VALUE LINE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED)
FOR THE THREE MONTHS ENDED JULY 31, JULY 31, 2003 2002 ---------- ---------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 4,998 $ 3,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 706 827 (Gains)/losses on sales of trading securities and securities available for sale (609) 612 Unrealized (gains)/losses on trading securities (726) 159 Changes in assets and liabilities: Decrease in unearned revenue (921) (946) Decrease in deferred charges (69) (135) Decrease in accounts payable and accrued expenses (36) (1,281) Increase/(decrease) in accrued salaries (19) 243 Increase in accrued taxes payable 1,960 1,388 (Increase)/decrease in prepaid expenses and other current assets 332 (9) Decrease in accounts receivable 115 199 (Increase)/decrease in receivable from affiliates (190) 256 ---------- ---------- Total adjustments 543 1,313 ---------- ---------- NET CASH PROVIDED BY OPERATIONS 5,541 4,313 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sales of long term equity securities 2,094 21,396 Purchases of long term equity securities (1,033) (77) Proceeds from sales of long term fixed income securities 44,178 -- Purchases of long term fixed income securities (38,182) (50,046) Proceeds from sales of trading securities 3,787 2,702 Purchases of trading securities (10,144) (492) Acquisition of property, and equipment (20) (118) Expenditures for capitalized software (181) (182) ---------- ---------- NET CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES 499 (26,817) CASH FLOWS FROM FINANCING ACTIVITIES: Dividends paid (2,495) (2,495) ---------- ---------- NET CASH USED IN FINANCING ACTIVITIES (2,495) (2,495) ---------- ---------- Net increase/(decrease) in cash and cash equivalents 3,545 (24,999) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 10,217 117,401 ---------- ---------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 13,762 $ 92,402 ========== ==========
The accompanying notes are an integral part of these consolidated financial statements. 4 VALUE LINE, INC. STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE THREE MONTHS ENDED JULY 31, 2003 (IN THOUSANDS, EXCEPT SHARE AMOUNTS) (UNAUDITED)
COMMON STOCK NUMBER ADDITIONAL OF PAID-IN TREASURY COMPREHENSIVE RETAINED SHARES AMOUNT CAPITAL STOCK INCOME EARNINGS ------------ ------- ---------- -------- ------------- ---------- Balance at April 30, 2003 9,981,600 $ 1,000 $ 991 $ (354) $ 183,768 Comprehensive income Net income $ 4,998 4,998 Other comprehensive income, net of tax: Change in unrealized gains on securities 1,052 ------------- Comprehensive income $ 6,050 ============= Dividends declared (2,495) ------------ ------- ---------- -------- ---------- Balance at July 31, 2003 9,981,600 $ 1,000 $ 991 $ (354) $ 186,271 ============ ======= ========== ======== ========== ACCUMULATED OTHER COMPREHENSIVE INCOME TOTAL ------------- --------- Balance at April 30, 2003 $ 9,973 $ 195,378 Comprehensive income Net income 4,998 Other comprehensive income, net of tax: Change in unrealized gains on securities 1,052 1,052 Comprehensive income Dividends declared (2,495) ------------- --------- Balance at July 31, 2003 $ 11,025 $ 198,933 ============= =========
The accompanying notes are an integral part of these consolidated financial statements. 5 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 NUMBER ADDITIONAL OF PAID-IN TREASURY COMPREHENSIVE RETAINED SHARES AMOUNT CAPITAL STOCK INCOME EARNINGS ------------ ------- ---------- -------- ------------- ---------- Balance at April 30, 2002 9,980,125 $ 1,000 $ 975 $ (383) $ 173,760 Comprehensive income Net income $ 3,000 3,000 Other comprehensive income, net of tax: Change in unrealized gains on securities (9,001) ------------- Comprehensive income $ (6,001) ============= Dividends declared (2,495) ------------ ------- ---------- -------- ---------- Balance at July 31, 2002 9,980,125 $ 1,000 $ 975 $ (383) $ 174,265 ============ ======= ========== ======== ========== ACCUMULATED OTHER COMPREHENSIVE INCOME TOTAL ------------- --------- Balance at April 30, 2002 $ 20,653 $ 196,005 Comprehensive income Net income 3,000 Other comprehensive income, net of tax: Change in unrealized gains on securities (9,001) (9,001) Comprehensive income Dividends declared (2,495) ------------- --------- Balance at July 31, 2002 $ 11,652 $ 187,509 ============= =========
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 25, 2003 for the fiscal year ended April 30, 2003. Results of operations covered by this report may not be indicative of the results of operations for the entire year. Cash and Cash Equivalents: For purposes of the Consolidated Statements of Cash Flows, the Company considers all cash held at banks and short term liquid investments with an original maturity of less than three months to be cash and cash equivalents. As of July 31, 2003 and April 30, 2003, cash equivalents included $10,767,000 and $4,979,000 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 securities are valued at market with unrealized gains and losses on these securities reported, net of applicable taxes, as a separate component of Shareholders' Equity. 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 held by the Company are valued at market with 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 and common stock equivalents 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 MARKETABLE SECURITIES - NOTE 2: Trading Securities: Securities held by the Company had an aggregate cost of $9,473,000 and a market value of $10,385,000 at July 31, 2003, and an aggregate cost of $2,908,000 and a market value of $3,093,000 at April 30, 2003. Long-Term Securities: Equity Securities Available for Sale: The aggregate cost of the long term equity securities, which are primarily invested in the Value Line mutual funds, was $30,295,000 and the market value was $47,750,000 at July 31, 2003. The aggregate cost of the long term equity securities at April 30, 2003 was $31,366,000 and the market value was $45,150,000. For the three months ended July 31, 2003, the increase in gross unrealized appreciation on these securities of $3,667,000, net of deferred taxes of $1,284,000, was included in shareholders' equity. During the first three months of fiscal 2004, the Company sold various securities from its long term equity securities portfolio. The proceeds from sales of equity securities were $2,094,000 and the related loss on these sales was $6,000. This compares to proceeds of $18,984,000 and the related gain of $123,000 on sales from the long term equity securities portfolio including capital gain distributions from the Value Line mutual funds for the three months ended July 31, 2002. Government Debt Securities: The Company's investments in debt securities are available for sale and valued at market value. The aggregate cost and fair value at July 31, 2003 for U.S. government debt securities classified as available for sale were as follows:
(IN THOUSANDS) HISTORICAL GROSS UNREALIZED COST FAIR VALUE HOLDING LOSSES ------------------------------------------------------------------------------------- Due in 1-2 years $ 54,204 $ 54,177 $ (27) Due in 2-5 years 109,564 109,099 $ (465) ------------------------------------------ Total investment in debt securities $ 163,768 $ 163,276 $ (492) ==========================================
The aggregate cost and fair value at April 30, 2003 for U.S. government debt securities classified as available for sale were as follows:
(IN THOUSANDS) HISTORICAL GROSS UNREALIZED MATURITY COST FAIR VALUE HOLDING GAINS ------------------------------------------------------------------------------------- Due in 1-2 years $ 104,401 $ 104,718 $ 317 Due in 2-5 years $ 64,953 66,195 1,242 ------------------------------------------ Total investment in debt securities $ 169,354 $ 170,913 $ 1,559 ==========================================
The average yield on the U.S. Government debt securities held to maturity at July 31, 2003 and April 30, 2003 was 2.28% and 3.36%, respectively. During the first quarter of fiscal 2004 the decrease in unrealized holding gains of $2,051,000 net of deferred taxes of $720,000 was included in shareholders' equity. Proceeds from sales of long-term fixed income securities during the three months ended July 31, 2003 were $44,178,000 and the related gain on sales was $406,000. This compares to proceeds of $2,412,000 and the related gain of $31,000 from sales of long term debt securities for the three months ended July 31, 2002. 8 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION - NOTE 3: Cash payments for income taxes were $1,152,000 and $646,000 during the three months ended July 31, 2003 and 2002, 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, 2003 and 2002, was $360,000 and $199,000, respectively. 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, 2003 and 2002, the Company held long term equity and long term fixed income securities classified as available for sale. The change in valuation of these securities, net of deferred taxes has been recorded in the Company's Consolidated Balance Sheets. For the three months ended July 31, 2003, increases in gross unrealized gains on these securities were $1,616,000 and the increases in related deferred taxes were $564,000. The decreases during the first three months of fiscal 2003 in gross unrealized gains on these securities and the related deferred taxes were $13,845,000 and $4,844,000, respectively. RELATED PARTY TRANSACTIONS - NOTE 6: The Company acts as investment adviser and manager for fourteen 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 (rule 12b-1) from all but two of the fourteen mutual funds for which Value Line is the adviser. Effective September 18, 2002, the Company began receiving service and distribution fees under rule 12b-1 from the remaining two funds, for which Value Line, Inc. 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, 2003 and 2002, investment management fees, 12b-1 service and distribution fees and brokerage commission income, net of clearing fees, amounted to $7,527,000 and $6,945,000, respectively. These amounts include service and distribution fees of $2,362,000 and $1,390,000, respectively. The related receivables from the funds for management advisory fees and 12b-1 service fees included in Receivable from affiliates were $2,415,000 and $2,249,000 at July 31, 2003 and April 30, 2003, respectively. For the three months ended July 31, 2003 and 2002, the Company was reimbursed $134,000 and $140,000, respectively, for payments it made on behalf of and services it provided to Arnold Bernhard and Company, Inc. ("Parent"). At July 31, 2003 and April 30, 2003, Receivable from affiliates included a receivable from the Parent of $44,000 and $45,000 respectively. 9 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, 2003 2002 ------------------------------ (IN THOUSANDS) Current: Federal $ 2,429 $ 1,650 State and local 495 439 ------------------------------ 2,924 2,089 Deferred: Federal 200 (55) State and local (11) 0 ------------------------------ 189 (55) ------------------------------ $ 3,113 $ 2,034 ==============================
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 Disclosure of Reportable Segment Profit and Segment Assets (in thousands)
THREE MONTHS ENDED JULY 31, 2003 INVESTMENT MANAGEMENT PUBLISHING SERVICES TOTAL Revenues from external customers $ 13,004 $ 7,914 $ 20,918 Intersegment revenues 52 -- 52 Income from securities transactions 6 2,533 2,539 Depreciation and amortization 678 19 697 Segment operating profit 3,401 2,180 5,581 Segment assets 18,300 233,230 251,530 Expenditures for segment assets 201 -- 201
THREE MONTHS ENDED JULY 31, 2002 INVESTMENT MANAGEMENT PUBLISHING SERVICES TOTAL 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 operating profit 2,602 2,409 5,011 Segment assets 18,828 238,379 257,207 Expenditures for segment assets 298 2 300
11 Reconciliation of Reportable Segment Revenues, Operating Profit and Assets (in thousands)
THREE MONTHS ENDED JULY 31, 2003 2002 Revenues Total revenues for reportable segments $ 20,970 $ 20,521 Elimination of intersegment revenues (52) (16) ----------------------------- Total consolidated revenues $ 20,918 $ 20,505 ============================= Segment profit Total profit for reportable segments $ 8,120 $ 5,070 Less: Depreciation related to corporate assets (9) (36) ----------------------------- Income before income taxes $ 8,111 $ 5,034 ============================= Assets Total assets for reportable segments $ 251,530 $ 257,207 Corporate assets 322 911 ----------------------------- Consolidated total assets $ 251,852 $ 258,118 =============================
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 $232,178,000 at July 31, 2003. In addition to $21,152,000 of working capital, the Company has long-term securities with a market value of $211,026,000, that, although classified as non-current assets, are also readily marketable should the need arise. The Company's cash flow from operations of $5,541,000 for the three months ended July 31, 2003 was 28% higher than fiscal 2003's cash flow of $4,313,000. The rise in cash flow from operations was primarily due to a 12% increase in income from operations that resulted from a 7% rise in investment management fees, 2% increase in total new full term subscription orders and containment of expenses. Net cash inflows of $499,000 from investing activities during the three months of fiscal 2004 were higher than net cash outflows of $26,817,000 for the three months of fiscal 2003 due largely to the Company's decision during last fiscal year to re-deploy its cash holdings into Government debt obligations with higher effective yields. 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 2004. OPERATING RESULTS Net income for the three months ended July 31, 2003 of $4,998,000 or $0.50 per share was 67% above income of $3,000,000 or $0.30 per share in fiscal 2003. Operating income of $5,572,000 for the three months ended July 31, 2003 was 12% higher than operating income of $4,975,000 for the same period of last fiscal year. Income from securities transactions rose $2,480,000 above fiscal 2003 first quarter's income. Revenues of $20,918,000 for the three months ended July 31, 2003 also increased and were 2% above revenues of $20,505,000 in the prior year. Subscription revenues of $13,004,000 were less than 1% 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 2% decline in revenues from THE VALUE LINE 13 INVESTMENT SURVEY and related products, which included 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. Investment management fees and services revenues of $7,914,000 for the three months ended July 31, 2003 were 7% above the prior fiscal year's revenues of $7,401,000, and resulted primarily from an 18% rise in the NASDAQ index for the same period. Operating expenses for the three months ended July 31, 2003 of $15,346,000 were 1% below last year's expenses of $15,530,000. Total advertising and promotional expenses of $5,597,000 were 5% above the prior year's expenses of $5,355,000 primarily due to higher postage rates and additional costs associated with marketing two of the Company's equity mutual funds. Salaries and employee benefit expenses of $5,554,000 were 3% below expenses of $5,702,000 recorded in the prior fiscal year due to reductions in staff levels partially offset by some annual increases in salaries, benefits and incentive compensation. Production and distribution costs for the three months ended July 31, 2003 of $2,220,000 were 8% below expenses of $2,400,000 for the three months ended July 31, 2002. Office and administrative expenses of $1,975,000 were 5% below last year's expenses of $2,073,000 largely as a result of lower professional fees and depreciation expenses. The Company's securities portfolios produced a gain of $2,539,000 for the three months ended July 31, 2003, which was 4203% above the gain of $59,000 for the same period of last fiscal year. The Company reported gains in its trading portfolio of $934,000 during the three months ended July 31, 2003 versus losses of $925,000 during the same period of last fiscal year. Other than the effect from sales of fixed income securities to realign their maturity dates, that resulted in capital gains of $406,000, the value of the Company's long-term securities portfolio has been fairly stable. Income from securities transactions for the three months ended July 31, 2003 also included dividend and interest income of $1,197,000 and capital gains of $401,000 from sales of securities from the Company's long-term securities portfolio. This compares to dividend and interest income of $842,000 and capital gains of $154,000 from sales of securities from the Company's long-term portfolio for the same period of last fiscal year. 14 Item 4. Disclosure Controls and Procedures (a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Exchange Act Rule 13a - 15(e)), based on their evaluation of these controls and procedures as of the end of the period covered by this report, are appropriately designed to ensure that material information relating to the registrant is made known to such officers and are operating effectively. (b) The registrant's principal executive officer and principal financial officer have determined that there have been no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. 15 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, 2003 to be signed on its behalf by the undersigned thereunto duly authorized. Value Line, Inc. (Registrant) Date: September 15, 2003 By: s/Jean Bernhard Buttner -------------------------- Jean Bernhard Buttner Chairman & Chief Executive Officer Date: September 15, 2003 By: s/Stephen R. Anastasio -------------------------- Stephen R. Anastasio Chief Financial Officer Date: September 15, 2003 By: s/ David T. Henigson -------------------------- David T. Henigson Vice President and Treasurer