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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