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
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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
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(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