Lease Commitments

12 Months Ended

Apr. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Lease Commitments

Note 9-Lease Commitments:

On June 4, 1993, the Company entered into a 15 year lease agreement to provide primary office space.  The lease included free rental periods as well as scheduled base rent escalations over the term of the lease.  In April 2007, the Company extended the term for 5 additional years at a market rental rate to May 2013. The total amount of the base rent payments is being charged to expense on the straight-line method over the term of the lease. The Company recorded a deferred charge on its Consolidated Balance Sheets to reflect the excess of annual rental expense over cash payments since inception of the lease.

On February 7, 2013, the Company and Citibank, N.A. (the “Sublandlord”) entered into a sublease agreement, pursuant to which Value Line will lease approximately 44,493 square feet of office space located on the ninth floor at 485 Lexington Ave., New York, NY (“Building” or “Premises”) beginning on or about July 1, 2013 and ending on February 27, 2017 (“Sublease”).  Base rent under the Sublease will be $1,468,269 per annum, subject to customary concessions in the Company’s favor and pass-through of certain increases in operating costs and real estate taxes.  The Company provided a security deposit in cash in the amount of $489,423.  This Building will become the Company’s new corporate office facility.  The Company is required to pay for certain operating expenses associated with the Premises as well as utilities supplied to the Premises.  The Sublease terms will provide for a significant decrease in the Company’s annual rental expenses.

Value Line reached an agreement with its current landlord to extend the term of the current lease for its current corporate office facility, which was due to expire on May 31, 2013, for a period of three and a half months beginning June 1, 2013 and expiring September 15, 2013 (“Lease Modification”) at a rental which approximates the Company’s monthly rent payments under the current lease obligation.

Future minimum payments, exclusive of potential increases in real estate taxes and operating cost escalations, under operating leases for office space, with remaining terms of one year or more, are as follows:

Fiscal Years Ending April 30,		Current Lease		New Sublease		Total
				($ in thousands)
	2014	$	1,326	$	490	$	1,816
	2015		-		1,468		1,468
	2016		-		1,468		1,468
	2017		-		1,224		1,224
		$	1,326	$	4,650	$	5,976

Rental expense for the years ended April 30, 2013, 2012, and 2011 under the current operating lease covering office space was $2,509,000, $2,509,000, and $3,862,000, respectively.  During fiscal years of 2013 and 2012, office space rental decreased as a result of the classification of a portion of the lease payments as a reduction of the accrued lease exit obligation related to EAM’s relocation in fiscal 2011.  The increase in fiscal 2011 rent expenses was a result of an accrual of $914,000 for operating lease exit costs related to the deconsolidation of EAM from the operating facility of the Company. As of April 30, 2013 and 2012, the remaining lease exit obligation related to EAM’s relocation was  $37,000 and $475,000, respectively.  For the fiscal year ended April 30, 2011, $914,000 of the accrued lease exit obligation related to EAM’s relocation, was included as an expense in office and administration in the Consolidated Statements of Income.