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<SEC-DOCUMENT>0001047469-03-030545.txt : 20030912
<SEC-HEADER>0001047469-03-030545.hdr.sgml : 20030912
<ACCEPTANCE-DATETIME>20030912141121
ACCESSION NUMBER:		0001047469-03-030545
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20030731
FILED AS OF DATE:		20030912

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			VALUE LINE INC
		CENTRAL INDEX KEY:			0000717720
		STANDARD INDUSTRIAL CLASSIFICATION:	INVESTMENT ADVICE [6282]
		IRS NUMBER:				133139843
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			0430

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11306
		FILM NUMBER:		03893557

	BUSINESS ADDRESS:	
		STREET 1:		220 E 42ND ST
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017
		BUSINESS PHONE:		2129071500
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>a2118650z10-q.txt
<DESCRIPTION>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, 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.

<Table>
<Caption>
           CLASS                   OUTSTANDING AT JULY 31, 2003
           -----                   ----------------------------
<S>                                       <C>
Common stock, $.10 par value              9,981,600 SHARES
</Table>
<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,
                                                             2003          2003
                                                          ----------    ----------
<S>                                                       <C>           <C>
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
                                                          ==========    ==========
</Table>

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

                                        2
<Page>

                                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,
                                                   2003         2002
                                                ----------   ----------
<S>                                             <C>          <C>
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
                                                ==========   ==========
</Table>

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

                                        3
<Page>

                                VALUE LINE, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)
                                   (UNAUDITED)

<Table>
<Caption>
                                                                           FOR THE THREE MONTHS
                                                                                   ENDED
                                                                          JULY 31,      JULY 31,
                                                                            2003          2002
                                                                         ----------    ----------
<S>                                                                      <C>           <C>
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
                                                                         ==========    ==========
</Table>

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

                                        4
<Page>

                                VALUE LINE, INC.
                  STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                    FOR THE THREE MONTHS ENDED JULY 31, 2003
                      (IN THOUSANDS, EXCEPT SHARE AMOUNTS)
                                   (UNAUDITED)

<Table>
<Caption>
                                   COMMON STOCK

                                      NUMBER                ADDITIONAL
                                        OF                   PAID-IN     TREASURY   COMPREHENSIVE     RETAINED
                                      SHARES       AMOUNT    CAPITAL      STOCK         INCOME        EARNINGS
                                   ------------   -------   ----------   --------   -------------    ----------
<S>                                   <C>         <C>       <C>          <C>        <C>              <C>
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
                                   ============   =======   ==========   ========                    ==========

<Caption>
                                    ACCUMULATED
                                       OTHER
                                   COMPREHENSIVE
                                       INCOME        TOTAL
                                   -------------   ---------
<S>                                <C>             <C>
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
                                   =============   =========
</Table>

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

                                        5
<Page>

                                VALUE LINE, INC.
                  STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                    FOR THE THREE MONTHS ENDED JULY 31, 2002
                      (IN THOUSANDS, EXCEPT SHARE AMOUNTS)
                                   (UNAUDITED)

<Table>
<Caption>
                                   COMMON STOCK

                                      NUMBER                ADDITIONAL
                                        OF                   PAID-IN     TREASURY   COMPREHENSIVE     RETAINED
                                      SHARES       AMOUNT    CAPITAL      STOCK         INCOME        EARNINGS
                                   ------------   -------   ----------   --------   -------------    ----------
<S>                                   <C>         <C>       <C>          <C>        <C>              <C>
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
                                   ============   =======   ==========   ========                    ==========

<Caption>
                                    ACCUMULATED
                                       OTHER
                                   COMPREHENSIVE
                                       INCOME        TOTAL
                                   -------------   ---------
<S>                                <C>             <C>
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
                                   =============   =========
</Table>

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

                                        6
<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 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
<Page>

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:

<Table>
<Caption>
                                                         (IN THOUSANDS)
                                           HISTORICAL                GROSS UNREALIZED
                                              COST      FAIR VALUE    HOLDING LOSSES
- -------------------------------------------------------------------------------------
<S>                                        <C>          <C>          <C>
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)
                                           ==========================================
</Table>

The aggregate cost and fair value at April 30, 2003 for U.S. government debt
securities classified as available for sale were as follows:

<Table>
<Caption>
                                                         (IN THOUSANDS)
                                           HISTORICAL                GROSS UNREALIZED
MATURITY                                      COST      FAIR VALUE    HOLDING GAINS
- -------------------------------------------------------------------------------------
<S>                                        <C>          <C>          <C>
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
                                           ==========================================
</Table>

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
<Page>

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
<Page>

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,
                                2003             2002
                            ------------------------------
                                    (IN THOUSANDS)
<S>                         <C>             <C>
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
                            ==============================
</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.

                                       10
<Page>

    Disclosure of Reportable Segment Profit and Segment Assets (in thousands)

<Table>
<Caption>
                                               THREE MONTHS ENDED JULY 31, 2003
                                                           INVESTMENT
                                                           MANAGEMENT
                                            PUBLISHING      SERVICES       TOTAL
<S>                                        <C>            <C>            <C>
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
</Table>

<Table>
<Caption>
                                               THREE MONTHS ENDED JULY 31, 2002
                                                           INVESTMENT
                                                           MANAGEMENT
                                            PUBLISHING      SERVICES       TOTAL
<S>                                        <C>            <C>            <C>
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
</Table>

                                       11
<Page>

                 Reconciliation of Reportable Segment Revenues,
                   Operating Profit and Assets (in thousands)

<Table>
<Caption>
                                                       THREE MONTHS ENDED JULY 31,
                                                         2003            2002
<S>                                                  <C>             <C>
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
                                                     =============================
</Table>

                                       12
<Page>

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
<Page>

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
<Page>

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

<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,
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

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.(A)
<SEQUENCE>3
<FILENAME>a2118650zex-31_a.txt
<DESCRIPTION>EX-31.(A)
<TEXT>
<Page>

                                                                  Exhibit 31 (a)

                                 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;

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;

4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

        a)  Designed such disclosure controls and procedures, or caused such
            disclosure controls and procedures to be designed under our
            supervision, to ensure that material information relating to the
            registrant, including its consolidated subsidiaries, is made known
            to us by others within those entities, particularly during the
            period in which this quarterly report is being prepared;

        b)  Evaluated the effectiveness of the registrant's disclosure controls
            and procedures and presented in this report our conclusions about
            the effectiveness of the disclosure controls and procedures, as of
            the end of the period covered by this report based on such
            evaluation; and

        c)  Disclosed in this report any change in the registrant's internal
            control over financial reporting that occurred during the
            registrant's most recent fiscal quarter (the registrant's fourth
            fiscal quarter in the case of an annual report) that has materially
            affected, or is reasonably likely to materially affect, the
            registrant's internal control over financial reporting; and

5.   The registrant's other certifying officer(s) and I have disclosed, based on
     our most recent evaluation of internal control over financial reporting, to
     the registrant's auditors and the audit committee of the registrant's board
     of directors (or persons performing the equivalent functions):

        a)  All significant deficiencies and material weaknesses in the design
            or operation of internal control over financial reporting which are
            reasonably likely to adversely affect the registrant's ability to
            record, process, summarize and report financial information; and

        b)  Any fraud, whether or not material, that involves management or
            other employees who have a significant role in the registrant's
            internal control over financial reporting.


     Date:  September 15, 2003        By:  s/ Jean Bernhard Buttner
                                              ------------------------
                                              Jean Bernhard Buttner
                                              Chairman & Chief Executive Officer

                                       17

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.(B)
<SEQUENCE>4
<FILENAME>a2118650zex-31_b.txt
<DESCRIPTION>EX-31.(B)
<TEXT>
<Page>

                                                                  Exhibit 31 (b)

                                 CERTIFICATIONS

I, David T. Henigson, 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;

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;

4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

        a)  Designed such disclosure controls and procedures, or caused such
            disclosure controls and procedures to be designed under our
            supervision, to ensure that material information relating to the
            registrant, including its consolidated subsidiaries, is made known
            to us by others within those entities, particularly during the
            period in which this quarterly report is being prepared;

        b)  Evaluated the effectiveness of the registrant's disclosure controls
            and procedures and presented in this report our conclusions about
            the effectiveness of the disclosure controls and procedures, as of
            the end of the period covered by this report based on such
            evaluation; and

        c)  Disclosed in this report any change in the registrant's internal
            control over financial reporting that occurred during the
            registrant's most recent fiscal quarter (the registrant's fourth
            fiscal quarter in the case of an annual report) that has materially
            affected, or is reasonably likely to materially affect, the
            registrant's internal control over financial reporting; and

5.   The registrant's other certifying officer(s) and I have disclosed, based on
     our most recent evaluation of internal control over financial reporting, to
     the registrant's auditors and the audit committee of the registrant's board
     of directors (or persons performing the equivalent functions):

        a)  All significant deficiencies and material weaknesses in the design
            or operation of internal control over financial reporting which are
            reasonably likely to adversely affect the registrant's ability to
            record, process, summarize and report financial information; and

        b)  Any fraud, whether or not material, that involves management or
            other employees who have a significant role in the registrant's
            internal control over financial reporting.


     Date: September 15, 2003       By: s/David T. Henigson
                                          ------------------------
                                          David T. Henigson
                                          Vice President & Treasurer

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.(C)
<SEQUENCE>5
<FILENAME>a2118650zex-31_c.txt
<DESCRIPTION>EX-31.(C)
<TEXT>
<Page>

                                                                  EXHIBIT 31 (c)

                                 CERTIFICATIONS

I, Stephen Anastasio, 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;

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;

4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

        a)  Designed such disclosure controls and procedures, or caused such
            disclosure controls and procedures to be designed under our
            supervision, to ensure that material information relating to the
            registrant, including its consolidated subsidiaries, is made known
            to us by others within those entities, particularly during the
            period in which this quarterly report is being prepared;

        b)  Evaluated the effectiveness of the registrant's disclosure controls
            and procedures and presented in this report our conclusions about
            the effectiveness of the disclosure controls and procedures, as of
            the end of the period covered by this report based on such
            evaluation; and

        c)  Disclosed in this report any change in the registrant's internal
            control over financial reporting that occurred during the
            registrant's most recent fiscal quarter (the registrant's fourth
            fiscal quarter in the case of an annual report) that has materially
            affected, or is reasonably likely to materially affect, the
            registrant's internal control over financial reporting; and

5.   The registrant's other certifying officer(s) and I have disclosed, based on
     our most recent evaluation of internal control over financial reporting, to
     the registrant's auditors and the audit committee of the registrant's board
     of directors (or persons performing the equivalent functions):

        a)  All significant deficiencies and material weaknesses in the design
            or operation of internal control over financial reporting which are
            reasonably likely to adversely affect the registrant's ability to
            record, process, summarize and report financial information; and

        b)  Any fraud, whether or not material, that involves management or
            other employees who have a significant role in the registrant's
            internal control over financial reporting.


     Date: September 15, 2003       By: s/Stephen R. Anastasio
                                          ------------------------
                                          Stephen R. Anastasio
                                          Chief Financial Officer

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>6
<FILENAME>a2118650zex-32.txt
<DESCRIPTION>EX-32
<TEXT>
<Page>

                                                                      Exhibit 32

                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, 2003 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 15, 2003            By: s/ Jean Bernhard Buttner
                                           -----------------------------------
                                           Jean Bernhard Buttner
                                           Chairman & Chief Executive Officer


Date: September 15, 2003            By: s/ David T. Henigson
                                           -----------------------------------
                                           David T. Henigson
                                           Vice President & Treasurer


Date: September 15, 2003            By: s/Stephen R. Anastasio
                                           -----------------------------------
                                           Stephen R. Anastasio
                                           Chief Financial Officer

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
