<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>a2059262z10-q.txt
<DESCRIPTION>FORM 10-Q
<TEXT>
<Page>

                       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, 2001                 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, 2001
           -----                          ----------------------------



Common stock, $.10 par value                    9,979,325 Shares
                                                ----------------

<Page>

Part I - Financial Information
  Item 1. Financial Statements

                                Value Line, Inc.
                           Consolidated Balance Sheets
                      (in thousands, except share amounts)
                                   (unaudited)

<Table>
<Caption>

                                                             July 31,      April 30,
                                                              2001           2001
                                                            ---------      ---------
<S>                                                         <C>            <C>
Assets
Current Assets:
  Cash and cash equivalents (including short term
    investments of $71,353 and $86,094, respectively)       $  71,883      $  86,424
  Trading securities                                           32,318         15,360
  Accounts receivable, net of allowance for doubtful
    accounts of $120 and $131, respectively                     1,879          2,216
  Receivable from affiliates                                    3,026          2,821
  Prepaid expenses and other current assets                       569          1,274
  Deferred income taxes                                           742            742
                                                            ---------      ---------
    Total current assets                                      110,417        108,837

  Long term securities available for sale                     149,009        148,784
  Property and equipment, net                                   9,105          9,423
  Capitalized software and other intangible assets, net         3,622          3,948
                                                            ---------      ---------
    Total assets                                            $ 272,153      $ 270,992
                                                            =========      =========
Liabilities and Shareholders' Equity
Current Liabilities:
  Accounts payable and accrued liabilities                  $   4,421      $   5,716
  Accrued salaries                                              1,415          2,291
  Dividends payable                                             2,495          2,494
  Accrued taxes payable                                         2,041            423
                                                            ---------      ---------
    Total current liabilities                                  10,372         10,924

  Unearned revenue                                             39,010         39,526
  Deferred income taxes                                        20,258         20,194
  Deferred charges                                                 72            142

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                                      967            963
  Retained earnings                                           165,520        163,416
  Treasury stock, at cost (20,675 shares on 7/31/01,
    and 21,075 on 4/30/01)                                       (398)          (406)
  Accumulated other comprehensive income, net of tax           35,352         35,233
                                                            ---------      ---------
    Total shareholders' equity                                202,441        200,206
                                                            ---------      ---------
    Total liabilities and shareholders' equity              $ 272,153      $ 270,992
                                                            =========      =========
</Table>


   The accompanying notes are an integral part of these financial statements.


                                        2

<Page>

Part I - Financial Information
  Item 1. Financial Statements

                                Value Line, Inc.
                        Consolidated Statements of Income
                     (in thousands except per share amounts)
                                   (unaudited)

<Table>
<Caption>

                                              For the three months
                                                     ended
                                              July 31,    July 31,
                                               2001         2000
                                              -------     -------
<S>                                           <C>         <C>
Revenues:
  Investment periodicals and
   related publications                       $13,330     $14,059
  Investment management fees & svcs             9,510      10,496
                                              -------     -------
    Total revenues                             22,840      24,555
                                              -------     -------

Expenses:
  Advertising and promotion                     5,591       5,152
  Salaries and employee benefits                5,884       6,019
  Production and distribution                   2,079       1,808
  Office and administration                     1,999       2,210
                                              -------     -------
    Total expenses                             15,553      15,189
                                              -------     -------

Income from operations                          7,287       9,366
Income from securities trans., net                266       1,191
                                              -------     -------
Income before income taxes                      7,553      10,557
Provision for income taxes                      2,954       4,332
                                              -------     -------
    Net income                                $ 4,599     $ 6,225
                                              =======     =======
Earnings per share, basic & fully diluted     $  0.46     $  0.62
                                              =======     =======
</Table>

   The accompanying notes are an integral part of these financial statements.


                                        3

<Page>

Part I - Financial Information
  Item 1. Financial Statements

                                Value Line, Inc.
                      Consolidated Statements of Cash Flows
                                 (in thousands)
                                  (unaudited)

<Table>
<Caption>

                                                               For the three months
                                                                      ended
                                                              July 31,      July 31,
                                                                2001          2000
                                                              --------      --------
<S>                                                           <C>           <C>
Cash flows from operating activities:
Net income                                                    $  4,599      $  6,225

Adjustments to reconcile net income to net cash
  provided by operating activities:
  Depreciation and amortization                                    761           802
  Gains on sales of trading securities and
    securities held for sale                                      (215)         (716)
  Unrealized losses on trading securities                          703           647

  Changes in assets and liabilities:
    Decrease in unearned revenue                                  (516)       (1,964)
    Decrease in deferred charges                                   (70)          (69)
    Decrease in accounts payable and accrued expenses           (1,295)         (917)
    Decrease in accrued salaries                                  (876)         (808)
    Increase in accrued taxes payable                            1,618         3,059
    Decrease in prepaid expenses and other current assets          705            90
    Decrease in accounts receivable                                337           312
    Increase in receivable from affiliates                        (205)         (712)
                                                              --------      --------
    Total adjustments                                              947          (276)
                                                              --------      --------
Net cash provided by operations                                  5,546         5,949

Cash flows from investing activities:
  Proceeds from sales of long term securities                       --        24,572
  Purchases of long term securities                                (42)       (1,267)
  Proceeds from sales of trading securities                      2,954        11,113
  Purchases of trading securities                              (20,400)      (11,111)
  Acquisition of property, and equipment                           (18)          (91)
  Expenditures for capitalized software                            (99)         (411)
                                                              --------      --------
Net cash (used in)/provided by investing activities            (17,605)       22,805

Cash flows from financing activities:
  Proceeds from sales of treasury stock                             12            --
  Dividends paid                                                (2,494)       (2,495)
                                                              --------      --------
Net cash used in financing activities                           (2,482)       (2,495)
                                                              --------      --------
Net (decrease)/increase in cash and cash equivalents           (14,541)       26,259
Cash and cash equivalents at beginning of year                  86,424        47,933
                                                              --------      --------
Cash and cash equivalents at end of period                    $ 71,883      $ 74,192
                                                              ========      ========
</Table>

   The accompanying notes are an integral part of these financial statements.


                                        4

<Page>

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)

<Table>
<Caption>

                             Common stock
                                                                                                       Accumulated
                                Number                 Additional                                         Other
                                  of                    paid-in    Treasury  Comprehensive   Retained  Comprehensive
                                shares      Amount      capital      Stock       income      earnings     income        Total
                               ---------   ---------   ---------   ---------    ---------   ---------    ---------    ---------

<S>                            <C>         <C>         <C>         <C>          <C>         <C>          <C>          <C>
Balance at May 1, 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
                               =========   =========   =========   =========                =========    =========    =========
</Table>

The accompanying notes are an integral part of these financial statements.


                                        5
<Page>

Part I - Financial Information
  Item 1. Financial Statements

                                VALUE LINE, INC.
                  STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                    FOR THE THREE MONTHS ENDED JULY 31, 2000
                      (in thousands, except share amounts)
                                   (unaudited)

<Table>
<Caption>

                             Common stock
                                                                                                       Accumulated
                                Number                 Additional                                         Other
                                  of                    paid-in    Treasury  Comprehensive   Retained  Comprehensive
                                shares      Amount      capital      Stock       income      earnings     income        Total
                               ---------   ---------   ---------   ---------    ---------   ---------    ---------    ---------
<S>                            <C>         <C>         <C>         <C>          <C>          <C>          <C>          <C>
Balance at May 1, 2000         9,978,625   $   1,000   $     959   ($    411)                $ 149,304    $  60,014    $ 210,866

Comprehensive income
 Net income                                                                     $   6,225        6,225                     6,225
 Other comprehensive income,
  net of tax:
   Change in unrealized
     gains on securities                                                           (1,413)                   (1,413)      (1,413)
                                                                                ---------
Comprehensive income                                                            $   4,812
                                                                                =========
Dividends declared                                                                              (2,495)                   (2,495)
                               ---------   ---------   ---------   ---------                 ---------    ---------    ---------
Balance at July 31, 2000       9,978,625   $   1,000   $     959   ($    411)                $ 153,034    $  58,601    $ 213,183
                               =========   =========   =========   =========                 =========    =========    =========
</Table>

The accompanying notes are an integral part of these financial statements.


                                        6

<PAGE>


                            HOROWITZ & ULLMANN, P.C.
                          Certified Public Accountants


                                                              275 Madison Avenue
                                                              New York, NY 10016
                                                       Telephone: (212) 532-3736
                                                       Facsimile: (212) 545-8997
                                               E-mail: cpaz@horowitz-ullmann.com



                       REPORT OF INDEPENDENT ACCOUNTANTS


To the Board of Directors and Shareholders of
Value Line, Inc.
New York, New York

We have reviewed the accompanying consolidated balance sheet of Value Line, Inc.
and its subsidiaries as of July 31, 2001 and the related consolidated statements
of income, changes in stockholders' equity, and cash flows for the three month
periods ended July 31, 2001 and 2000. All information included in these
financial statements is the representation of the Company's management.

We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquires of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should
be made to the accompanying financial statements for them to be in conformity
with generally accepted accounting principles.

We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet as of April 30, 2001 and the related
consolidated statements of income, changes in stockholders' equity, and cash
flows for the year then ended (not presented herein), and in our report dated
July 12, 2001, we expressed an unqualified opinion on those consolidated
financial statements. In our opinion, the information set forth in the
accompanying consolidated balance sheet as of April 30, 2001 is fairly stated in
all material respects.

September 14, 2001

                                          7
<Page>


                                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 30,
2001 for the fiscal year ended April 30, 2001. 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 hold 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, 2001 and April 30, 2001, cash
equivalents included $71,122,000 and $86,011,000, 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 are valued at market value in accordance with Statement
of Financial Accounting Standards No. 115, "Accounting for Certain Investments
in Debt and Equity Securities". Unrealized gains and losses on these securities
are reported, net of applicable taxes, as a separate component of Shareholders'
Equity. Realized gains and losses on sales of the securities are recorded in
earnings on trade date and are determined on the identified cost method.

Trading securities, which consist of securities held by Value Line Securities,
Inc., the Company's broker-dealer subsidiary, 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.


                                       8
<Page>

                                VALUE LINE, INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


MARKETABLE SECURITIES - NOTE 2:

Trading Securities:

Securities held by the Company and by Value Line Securities, Inc. had an
aggregate cost of $32,770,000 and $14,981,000 and a market value of $32,318,000
and $15,360,000 at July 31, 2001 and April 30, 2001, respectively.

Long-Term Securities Available for Sale:

The aggregate cost of the long-term securities was $94,617,000 and $94,579,000
and the market value was $149,009,000 and $148,784,000 at July 31, 2001 and
April 30, 2001, respectively. At July 31, 2001, the increase in gross
unrealized appreciation on these securities of $183,000, net of deferred taxes
of $64,000, was included in shareholders' equity.


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION - NOTE 3:

Cash payments for income taxes were $1,330,000 and $1,273,000 during the three
months ended July 31, 2001 and 2000, 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. Plan expense, included in salaries and employee benefits in
the Consolidated Statements of Income and Retained Earnings was $345,000, for
each of the three month periods ended July 31, 2001 and 2000, respectively.


                                       9
<Page>

                                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, 2001 and 2000, the Company held long term securities classified
as available-for-sale. The decrease during the first three months ended July
31, 2001 in gross unrealized gains on these securities and the related
deferred taxes was $183,000 and $64,000, respectively. The decrease during
the first quarter of fiscal 2000 in gross unrealized gains on these
securities and the related deferred taxes was $2,173,000 and $760,000,
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 thirteen of the fifteen mutual funds 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, 2001 and 2000 investment
management fees, 12b-1 service and distribution fees and brokerage commission
income, net of clearing fees, amounted to $8,925,000 and $9,554,000,
respectively. These amounts include service and distribution fees of
$1,693,000 and $860,000, respectively. The related receivables from the funds
for management advisory fees and 12b-1 service fees included in receivable
from affiliates were $2,812,000 and $2,697,000 at July 31, 2001 and April 30,
2001, respectively.

For the three months ended July 31, 2001 and 2000, the Company was reimbursed
$146,324 and $143,508 respectively, for payments it made on behalf of and
services it provided to Arnold Bernhard and Company, Inc. ("Parent"). At July
31, 2001 and April 30, 2001, receivable from affiliates included a receivable
from the Parent of $45,000 and $46,000, respectively. For the three months ended
July 31, 2001 and July 31, 2000, the Company made federal income tax payments to
the Parent amounting to $250,000 and $300,000, respectively.


                                       10
<Page>

                                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:

<Table>
<Caption>

                                   Three months ended July 31,

                                    2001                2000
                                -------------------------------
                                         (in thousands)
<S>                                <C>                <C>
   Current:
    Federal                        $2,692             $  3,662
    State and local                   507                  883
                                -------------------------------
                                    3,199                4,545
   Deferred:
    Federal                          (246)                (215)
    State and local                     1                    2
                                -------------------------------
                                     (245)                (213)
                                -------------------------------
                                 $  2,954             $  4,332
                                ===============================
</Table>

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.


                                       11
<Page>

                                VALUE LINE, INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


Disclosure of Reportable Segment Profit and Segment Assets

<Table>
<Caption>

                                                 July 31, 2001
                                       Publishing Investment         Total
                                                  Management
                                                  Services

<S>                                     <C>          <C>          <C>
Revenues from external customers        $ 13,330     $  9,510     $ 22,840
Intersegment revenues                         17           --           17
Income from securities transactions           41          225          266
Depreciation end 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

<Caption>

                                                 July 31, 2000
                                       Publishing Investment         Total
                                                  Management
                                                  Services

<S>                                      <C>         <C>          <C>
Revenues from external customers         $14,059     $ 10,496     $ 24,555
Intersegment revenues                         15           --           15
Income from securities transactions           65        1,126        1,191
Depreciation and amortization                770           17          787
Segment profit                             4,112        5,269        9,381
Segment assets                            20,891      277,507      298,398
Expenditures for segment assets              311           90          401
</Table>



                                       12
<Page>

                                VALUE LINE, INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


                 Reconciliation of Reportable Segment Revenues,
                           Operating Profit and Assets

<Table>
<Caption>

                                                      2001            2000
<S>                                                <C>            <C>
Revenues
Total revenues for reportable segments             $  22,957      $  24,570
Elimination of intersegment revenues                     (17)           (15)
                                                   -------------------------
 Total consolidated revenues                       $  22,840      $  24,555
                                                   =========================

Segment profit
Total profit for reportable segments               $   7,567      $  10,572
Less: Depreciation related to corporate assets           (14)           (15)
                                                   -------------------------
 Income before income taxes                        $   7,553      $  10,557
                                                   =========================

Assets
Total assets for reportable segments               $ 271,019      $ 298,398
Corporate assets                                       1,134            658
                                                   -------------------------
 Consolidated total assets                         $ 272,153      $ 299,056
                                                   =========================
</Table>




                                       13
<Page>

ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
        AND RESULTS OF OPERATIONS:

LIQUIDITY AND CAPITAL RESOURCES:

The Company had liquid resources, which are used in its business, of
$249,054,000 at July 31, 2001. In addition to $100,045,000 of working capital,
the Company had long-term securities available for sale with a market value of
$149,009,000, that, although classified as non-current assets, are also readily
marketable should the need arise.

The Company's cash flow from operations of $5,546,000 for the three months ended
July 31, 2001 was 7% lower than fiscal 2001's cash flow of $5,949,000. The
decrease was primarily due to the decline in operating income that resulted from
the substantial decline in the financial markets offset partially by the slow
down in the unearned revenue decline that resulted from new subscription sales
orders. Net cash outflows from investing activities during the first three
months of fiscal 2002 were $17,605,000 primarily as a result of the Company's
decision to re-deploy its cash holdings into the Company's trading portfolio
utilizing varied investment strategies.

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 2002.

RESULTS OF OPERATIONS:

Revenues of $22,840,000 for the three months ended July 31, 2001 ranked the
fifth highest during any first quarter period and were 7% below those during the
same period last fiscal year. Net income for the three months ended July 31,
2001 of $4,599,000, or $.46 per share compares to net income of $6,225,000, or
$.62 per share for the three months ended July 31, 2000. Operating income of
$7,287,000 for the three months ended July 31, 2001, compares to operating
income of $9,366,000 for the same period of last fiscal year.

Subscription revenues of $13,330,000 were 5% below revenues of the same
period of the prior fiscal year. The decrease in subscription revenues
compared to the prior year is a result of a 6% combined decline in revenues
from THE VALUE LINE INVESTMENT SURVEY and related products, The change in
subscription revenues is primarily attributable to the continued difficult
financial market conditions that investors face, with the NASDAQ index
falling 46% during the past 12 months. In turn, demand for the Company's
investment publications has been restrained. Recently, the Company
experienced a marked turnaround in subscription activity as our promotional
campaigns have been well received, with total new subscription orders
increasing over 24% from the first quarter of the prior fiscal year.
Investment management fees and services revenues of $9,510,000 for the three
months ended July 31, 2001, were 9% below the prior fiscal year's revenues.
The decline in the financial markets is also the primary reason for the lower
investment management fees and services. Average assets under management in
the Company's mutual funds were 9% below the prior year's average net assets.

Operating expenses for the three months ended July 31, 2001 of $15,553,000 were
2% higher than last year's expenses of $15,189,000. The increase in expenses
over the prior year was primarily attributable to additional advertising
expenses for the mutual funds which Value Line is the advisor. The increase in
mutual fund marketing expenses was partially offset by a significant decrease in
media advertising,


                                       14
<Page>

ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
        AND RESULTS OF OPERATIONS:

including television advertising for the Company's publications. The United
States Postal Service raised postage rates approximately 10% and 2% effective
January 1, 2001 and July 1, 2001, respectively, which has increased both direct
mail marketing and product distribution expenses during the fiscal 2002.
Salaries and employee benefit expenses of $5,884,000 were 2% below expenses of
$6,019,000 recorded in the prior fiscal year. Production and distribution costs
for the three months ended July 31, 2001 of $2,079,000 were 15% above expenses
of $1,808,000 for the three months ended July 31, 2000. The increase in
production expenses resulted from a reclassification, from administrative
expenses, of maintenance costs and amortization of new product development
expenditures for Version 2 of the Company's Website. Additionally, expenses
associated with outsourcing a portion of the Company's stock and mutual fund
data collection services and amortization of previously deferred costs for the
development of computer software for internal use contributed to the higher
production expenses. Office and administrative expenses of $1,999,000 were 10%
below last year's expenses of $2,210,000. The net decrease in administrative
expenses primarily resulted from the aforementioned reclassification of
maintenance expenses and amortization of software development expenditures for
Value Line's Internet site to production expenses.

The Company's securities portfolios produced income of $266,000 for the three
months ended July 31, 2001 compared to $1,191,000 during last fiscal year. The
steady decline in the valuation of equity securities that started at the
beginning of fiscal year 2001 and accelerated dramatically during the third
quarter of last fiscal year has continued during the first quarter of fiscal
2002. The decline in the financial markets resulted in losses in the Company's
trading portfolio of $488,000 during the three months ended July 31, 2001,
versus a gain of $128,000 during the same period of last fiscal year. Dividend
income from the Value Line mutual funds was 37% lower than the level during the
first three months of fiscal 2001.


                                       15
<Page>

                                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,
2001 to be signed on its behalf by the undersigned thereunto duly authorized.

                              Value Line, Inc.
                                  (Registrant)




Date:  September 14, 2001      By:  s/ Jean Bernhard Buttner
                                    -------------------------
                                    Jean Bernhard Buttner
                                    Chairman & Chief Executive Officer



Date:  September 14, 2001      By:  s/ Stephen R. Anastasio
                                    -------------------------
                                    Stephen R. Anastasio
                                    Chief Accounting Officer



Date:  September 14, 2001      By:  s/ David T. Henigson
                                    ----------------------------
                                    David T. Henigson
                                    Vice President and Treasurer



                                   16

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