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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 16, 1996
VALUE LINE, INC.
(Exact name of registrant as specified in its charter)
New York 0-11306 13-3139843
(State or other jurisdiction) (Commission (IRS Employer
of incorporation) File Number) 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
Not Applicable
(Former name or former address, if changed since last report.)
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Item 5. Other Events.
On December 16, 1996, the Board of Directors of Value Line, Inc.
declared an extraordinary dividend of $15.00 per share payable on January 2,
1997 to holders of record of Common Stock at the close of business on
December 26, 1996.
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
VALUE LINE, INC.
Registrant
/s/ Howard A. Brecher
Date: December 17, 1996 ------------------------------
Howard A. Brecher, Secretary
PDL:psp
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Value Line, Inc.
220 East 42nd Street
New York, NY 10017
For Immediate Release Company Contact: Howard A. Brecher
December 16, 1996 (212) 907-1620
New York - Value Line, Inc. (NASDAQ - VALU). Value Line, Inc. announced that
the Board of Directors declared at a meeting this evening an extraordinary
dividend of $15.00 per share payable on January 2, 1997 to all record holders of
Common Stock as of the close of business on December 26, 1996. The aggregate
amount of the dividend will be approximately $149.7 million.
Value Line, Inc. reported revenues for the six months ended October 31, 1996
of $44,804,000, an increase of 5% compared to revenues of $42,839,000 for the
six months of fiscal 1996. Operating income for the six months ended October
31, 1996 was $18,445,000 a 4% increase from income of $17,683,000 for the
same period of fiscal 1996. Net earnings for the three months and six months
ended October 31, 1996 of $7,839,000 and $14,365,000 or $0.79 and $1.44
compared to net earnings of $8,250,000 and $18,474,000 or $0.83 and $1.85 per
share at October 31, 1995, respectively. The correction in the financial
markets during the first three months of fiscal 1997 as compared to the
rapidly rising market during the same period of fiscal 1996 was the primary
cause for the decrease in the six months net earnings. Both the second quarter
and six month period of fiscal 1996 include proceeds of $2,054,000 from the
settlement of a disputed securities trade.
In announcing these results, Jean Bernhard Buttner, Chairman and Chief
Executive Officer of Value Line, Inc. also said, "We are pleased to report
that in addition to the Company's record high levels of revenues and
operating income achieved during the six months ended October 31, 1996, full
term subscriptions for all products have risen to new record high levels.
The Company's asset management and mutual funds business has also performed
well with revenues increasing 13% from last year's level. Our newest
product, the Value Line Investment Survey for Windows, launched during July
1996 has been well received by the market. This product is a powerful tool
which enables investors to manipulate over 200 data items on more than 5,000
stocks while providing access to the acclaimed Value Line research.
Value Line, Inc. reported record high earnings in four of its last five
fiscal years. For the fiscal year ended April 30, 1996. Value Line, Inc.
had record earnings of $41.7 million or $4.18 per share.
Mrs. Buttner also stated that this dividend will benefit all shareholders by
releasing to them some of the value built up within Value Line, Inc. while
they retain their interest in Value Line, Inc.'s core publishing and asset
management businesses. Mrs. Buttner noted that this dividend would be paid
entirely from retained earnings with funds that Value Line, Inc. had been
investing in the Value Line family of mutual funds and marketable securities.
She noted that Value Line, Inc. would have, after payment of the dividend,
shareholders' equity of approximately $88 million and cash and other liquid
assets of approximately $142 million, which the management of Value Line,
Inc. believes will be more
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than adequate, with future cash flows from operations, to finance current and
forecasted operations.
The Board of Directors of Value Line, Inc. had been requested to declare this
dividend by Arnold Bernhard & Co., Inc. (AB&Co.) in order to facilitate AB&Co.'s
performance of its obligations under an agreement settling a lawsuit that had
been pending in the New York State Supreme Court that sought the dissolution of
AB&Co. As part of that agreement, AB&Co. will purchase on January 2, 1997 the
shares of AB&Co. common stock held by the Arnold Van Hoven Bernhard family and
two co-trustees of a trust of which he is an income beneficiary.
Value Line, Inc. is a leading New York-based investment publishing and
investment management company. The Value Line Investment Survey is the nation's
largest independent advisory service. In addition, the Company provides other
investment periodicals, which are produced in both printed and electronic form.
Value Line, Inc. provides investment management services to the Value Line
Family of 16 no-load mutual funds and to institutional and individual portfolios
through its asset management division.
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Value Line, Inc.
Consolidated Summary of Financial Results
(in thousands except per share amounts)
For the three For the six
months ended months ended
October 31, October 31,
1996 1995 1996 1995
(1) (1)
---------- ---------- ---------- ----------
Revenues $22,347 $22,811 $44,804 $42,839
Operating Income 9,024 10,134 18,445 17,683
Income from
Securities Transactions 4,040 3,279 5,496 12,601
Income Before Taxes 13,064 13,413 23,943 30,284
Net Earnings 7,839 8,250 14,365 18,474
Earnings Per Share $0.79 $0.83 $1.44 $1.85
(1) Revenues and operating income for both the three months and six months ended
October 31, 1995 include proceeds of $2,054,000 received in settlement of a
disputed securities trade.
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