<PAGE>
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
Filed by the Registrant / /
Filed by a party other than the Registrant / /
Check the appropriate box:
/ / Preliminary Proxy Statement
/ / Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
/X/ Definitive Proxy Statement
/ / Definitive Additional Materials
/ / Soliciting Material Pursuant to Section 240.14a-11(c) or Section
240.14a-12
VALUE LINE, INC.
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
/X/ No fee required
/ / Fee computed on table below per Exchange Act Rules 14a-6(i)(1)
and 0-11
(1) Title of each class of securities to which transaction applies:
------------------------------------------------------------------------
(2) Aggregate number of securities to which transaction applies:
------------------------------------------------------------------------
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which the
filing fee is calculated and state how it was determined):
------------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction:
------------------------------------------------------------------------
(5) Total fee paid:
------------------------------------------------------------------------
/ / Fee paid previously with preliminary materials.
/ / Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
------------------------------------------------------------------------
(2) Form, Schedule or Registration Statement No.:
------------------------------------------------------------------------
(3) Filing Party:
------------------------------------------------------------------------
(4) Date Filed:
------------------------------------------------------------------------
<PAGE>
VALUE LINE, INC.
220 EAST 42ND STREET
NEW YORK, NEW YORK 10017
--------------
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
-------------
TO THE SHAREHOLDERS:
Notice is hereby given that the Annual Meeting of the Shareholders of Value
Line, Inc. (the "Company") will be held on October 16, 1997, at 9:30 a.m. at the
offices of Value Line Distribution Center, Inc. 125 East Union Avenue, East
Rutherford, NJ 07073 for the following purposes:
1. To elect seven directors of Value Line, Inc.; and
2. To transact such other business as may properly come before the meeting.
Shareholders of record at the close of business on September 10, 1997 will
be entitled to notice of and to vote at the meeting and any adjournments
thereof.
We urge you to vote on the business to come before the meeting by promptly
executing and returning the enclosed proxy in the envelope provided or by
casting your vote in person at the meeting.
By order of the Board of Directors
HOWARD A. BRECHER,
VICE PRESIDENT AND SECRETARY
New York, New York
September 24, 1997
<PAGE>
VALUE LINE, INC.
220 EAST 42ND STREET
NEW YORK, NEW YORK 10017
--------------
ANNUAL MEETING OF SHAREHOLDERS--OCTOBER 16, 1997
--------------
PROXY STATEMENT
The following information is furnished to each shareholder in connection
with the foregoing notice of the Annual Meeting of Shareholders of Value Line,
Inc. (the "Company") to be held on October 16, 1997. The enclosed proxy is for
use at the meeting and any adjournments thereof. This Proxy Statement and the
form of proxy are being mailed to stockholders on or about September 24, 1997.
The enclosed proxy is being solicited by and on behalf of the Board of
Directors of the Company. A proxy executed on the enclosed form may be revoked
by the shareholder at any time before the shares are voted by delivering written
notice of revocation to the Secretary of the Company, by executing a later dated
proxy or by attending the meeting and voting in person. The shares represented
by all proxies which are received by the Company in proper form will be voted as
specified. If no specification is made in a proxy, the shares represented
thereby will be voted for the election of the Board's nominees as Directors.
The expense in connection with the solicitation of proxies will be borne by
the Company.
Only holders of Common Stock of record at the close of business on September
10, 1997 will be entitled to vote at the meeting. On that date, there were
9,978,625 shares of Common Stock issued and outstanding, the holders of which
are entitled to one vote per share.
Under the New York Business Corporation Law (the "BCL") and the Company's
By-Laws, the presence, in person or by proxy, of the holders of a majority of
the outstanding shares of Common Stock entitled to vote on a particular matter
is necessary to constitute a quorum of shareholders to take action at the Annual
Meeting with respect to such matter. For these purposes, shares which are
present, or represented by a proxy, at the Annual Meeting will be counted for
quorum purposes regardless of whether the holder of the shares or proxy fails to
vote on any particular matter or whether a broker with discretionary authority
fails to exercise its discretionary voting authority with respect to any
particular matter. Once a quorum of the shareholders is established, under the
BCL and the Company's By-Laws, the nominees standing for election as directors
will be elected by a plurality of the votes cast and each other matter will be
decided by a majority of the votes cast on the matter, except as otherwise
provided by law or the Company's Certificate of Incorporation or By-Laws. For
voting purposes (as opposed to for purposes of establishing a quorum)
abstentions and broker non-votes will not be counted in determining whether the
nominees standing for election as directors have been elected and whether each
other matter has been approved.
1
<PAGE>
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth information as of September 10, 1997 as to
shares of the Company's Common Stock held by persons known to the Company to be
the beneficial owners of more than 5% of the Company's Common Stock.
<TABLE>
<CAPTION>
Number of Shares
Name and Address Beneficially Percentage of Shares
of Beneficial Owner Owned Beneficially Owned(1)
- ----------------------------------- ----------------- -----------------------
<S> <C> <C>
Arnold Bernhard & Co., Inc.(1) 8,009,800 80.27%
220 East 42nd Street
New York, NY 10017
<FN>
- ---------
(1) Jean Bernhard Buttner, Chairman of the Board, President and Chief Executive
Officer of the Company, owns all of the outstanding voting stock of Arnold
Bernhard & Co., Inc.
</TABLE>
The following table sets forth information as of June 30, 1997 with respect
to shares of the Company's Common Stock owned by each director of the Company,
by each executive officer listed in the Summary Compensation Table and by all
executive officers and directors as a group.
<TABLE>
<CAPTION>
Number of Shares Percentage of
Name of Beneficially Shares Beneficially
Beneficial Owner Owned Owned
- ------------------------------------ ----------------- -------------------
<S> <C> <C>
Jean Bernhard Buttner 100(1) *
Harold Bernard, Jr. 389 *
Samuel Eisenstadt 0(1) *
William S. Kanaga 2,000 *
W. Scott Thomas 1,000 *
Howard A. Brecher 3,300(2) *
David T. Henigson 150 *
All directors and executive officers
as a group (7 persons) 6,939(1)(2) *
<FN>
- ---------
</TABLE>
* Less than one percent
(1) Excludes 8,009,800 shares (80.27% of the outstanding shares) owned by Arnold
Bernhard & Co., Inc. Jean Bernhard Buttner owns all of the outstanding
voting stock of Arnold Bernhard & Co., Inc. All of the non-voting stock of
Arnold Bernhard & Co. Inc. is held by members of the Bernhard family and
employees or former employees of Arnold Bernhard & Co., Inc. or the Company,
including Mr. Eisenstadt who owns 12,000 shares (approximately 1.44%).
(2) Includes 2,975 shares purchasable within 60 days of June 30, 1997 upon the
exercise of stock options by Mr. Brecher.
2
<PAGE>
ELECTION OF DIRECTORS
At the meeting, seven directors are to be elected, each to hold office until
the next Annual Meeting of Shareholders and until his or her successor has been
duly elected and qualified. If no contrary indication is made, the persons named
in the enclosed proxy will vote for the election of the nominees listed below.
If any nominee shall become unavailable for reasons presently unknown, the proxy
will be voted for the election of the other nominees named herein and may be
voted for the election of a substitute nominee.
During the fiscal year ended April 30, 1997, there were five meetings of the
Board of Directors. Each of the directors named below attended at least 75% of
the meetings held during the year of the Board of Directors and of each
committee on which he or she served.
The Board of Directors has established an Audit Committee presently
consisting of Jean Bernhard Buttner, Harold Bernard, Jr., William S. Kanaga and
W. Scott Thomas. The Committee held two meetings during the year ended April 30,
1997 to discuss audit and financial reporting matters with both management and
the Company's independent public accountants. The Board of Directors has also
established a Compensation Committee consisting of Jean Bernhard Buttner, Howard
A. Brecher and David T. Henigson. The Company does not have a standing
nominating committee.
A director who is also an employee of the Company receives no compensation
for his service on the Board in addition to that compensation which he receives
as an employee. A director who is not an employee of the Company is paid a
director's fee of $3,000 per year plus $1,750 for each Board meeting attended
and $2,500 for each meeting of the Audit Committee attended.
Information concerning the nominees for directors appears in the following
table. Except as otherwise indicated, each of the following has held an
executive position with the companies indicated for at least five years.
<TABLE>
<CAPTION>
NOMINEE, AGE AS OF AUGUST 7, 1997 DIRECTOR
AND PRINCIPAL OCCUPATION SINCE
- ---------------------------------------------------------------------------------- -----------
<S> <C>
Jean Bernhard Buttner* (62). Chairman of the Board, President, and Chief Executive 1982
Officer of the Company and Arnold Bernhard & Co., Inc., since 1988. President and
Chief Operating Officer of each since 1985; Director of Arnold Bernhard & Co.,
Inc. Chairman and Director or Trustee of each of the Value Line Funds; Trustee,
Radcliffe College.
Harold Bernard, Jr. (66). Retired Administrative Law Judge, National Labor 1982
Relations Board. Director of Arnold Bernhard & Co., Inc. Judge Bernard is the
cousin of Jean Bernhard Buttner.
Samuel Eisenstadt* (75). Senior Vice President and Research Chairman of the 1982
Company.
William S. Kanaga* (72). Retired Chairman of Arthur Young (now Ernst & Young, 1986
accounting firm). Director of The Center for International Private Enterprise, The
Business Council of the United Nations and member of advisory council of Mercy
Ships, Inc.
W. Scott Thomas (47). Partner, Brobeck, Phleger & Harrison, attorneys. 1986
Howard A. Brecher* (43). Vice President of the Company since 1996 and Secretary 1992
since 1992; Vice President, Secretary and General Counsel of Arnold Bernhard &
Co., Inc. since 1991 and Director since 1992.
David T. Henigson* (40). Vice President of the Company since 1992 and Treasurer 1992
since 1994; Director of Compliance and Internal Audit of the Company since 1988;
Vice President of each of the Value Line Funds since 1992 and Secretary and
Treasurer since 1994; Vice President of Arnold Bernhard & Co., Inc. since 1994 and
Director since 1992.
<FN>
- ---------
</TABLE>
* Member of the Executive Committee.
3
<PAGE>
EXECUTIVE COMPENSATION
SUMMARY COMPENSATION TABLE
The following table sets forth information concerning the compensation for
services in all capacities to the Company for the fiscal years ended April 30,
1997, 1996 and 1995 of the chief executive officer of the Company and each of
the other executive officers of the Company who were serving at April 30, 1997.
The Company has only four executive officers.
<TABLE>
<CAPTION>
Long-Term
Compensation
------------------------
Awards
------------------------
Restricted
Annual Compensation Stock Options All Other
Name and Fiscal -------------------------- Award(s) Granted Compensation (b)
Principal Position Year Salary ($) Bonus (a)($) ($) (#) ($)
- -------------------------- ----------- ----------- ------------- ----------- ----------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Jean B. Buttner 1997 772,500 600,000 -- -- 17,760
Chairman of the Board and 1996 766,875 500,000 -- -- 17,775
Chief Executive Officer 1995 641,250 450,000 -- -- 14,220
Samuel Eisenstadt 1997 100,000 100,000 -- -- 15,000
Senior Vice President and 1996 100,000 100,000 -- -- 12,000
Research Chairman 1995 100,000 100,000 -- -- 15,000
David T. Henigson 1997 99,600 180,000 -- -- 14,940
Vice President 1996 98,400 150,000 -- -- 14,760
1995 98,400 100,000 -- -- 11,808
Howard A. Brecher 1997 50,000 140,000 -- -- 7,500
Vice President 1996 60,000 100,000 -- -- 9,000
1995 70,000 55,000 -- -- 8,400
<FN>
- ----------
(a) A portion of the bonuses are contingent upon future employment.
(b) Employees of the Company are members of the Profit Sharing and Savings Plan
(the "Plan"). The Plan provides for a defined annual 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
Company's contribution expense was $1,550,000 for the year ended April 30,
1997. Each employee's interest in the Plan is invested in such proportions
as the employee may elect in shares of one or more of the mutual funds
available under the Plan for which the Company acts as investment adviser.
Distributions under the Plan vest in accordance with a schedule based upon
the employee's length of service and are payable upon request at the time
of the employee's retirement, death, total disability, or termination of
employment.
</TABLE>
4
<PAGE>
AGGREGATED OPTION EXERCISES IN LAST FISCAL YEAR AND FISCAL YEAR-END OPTION
VALUES
The following table sets forth the number of shares acquired by any of the
named persons upon exercise of stock options in fiscal 1997, the value realized
through the exercise of such options, and the number of unexercised options held
by such person, including both those which are presently exercisable, and those
which are not presently exercisable.
<TABLE>
<CAPTION>
Number of
Unexercised Options Value of Unexercised
at April 30, 1997 In-the-Money Options at
Shares Acquired ---------------------------- April 30, 1997 (1)
Upon Option Value Not ----------------------------
Name Exercise Realized (1) Exercisable Exercisable Exercisable Not Exercisable
- ------------------ ----------------- ------------- ------------- ------------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Howard A. Brecher 1,000 $ 2,040 3,475 -- $ 13,031 --
David T. Henigson 150 $ 2,400 -- -- -- --
<FN>
- ---------
(1) Market value of underlying securities at exercise date or year-end, as the
case may be, minus the exercise price.
</TABLE>
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Arnold Bernhard & Co., Inc. utilizes the services of officers and employees
of the Company to the extent necessary to conduct its business. The Company and
Arnold Bernhard & Co., Inc. allocate costs for office space, equipment and
supplies and staff pursuant to a servicing and reimbursement arrangement. During
the year ended April 30, 1997, the Company was reimbursed $493,000 for such
expenses. In addition, a tax-sharing arrangement allocates the tax liabilities
of the two companies between them. The Company pays to Arnold Bernard & Co.,
Inc. an amount equal to the Company's liability as if it filed separate tax
returns.
COMPENSATION COMMITTEE REPORT
The goals of the Company's executive compensation program are to enable the
Company to attract and retain outstanding executives, to promote improved
corporate performance and to reward executives who contribute to the long-term
success of the Company. The following guidelines have been established to carry
out this policy:
(a) Base salaries should be maintained at levels consistent with competitive
market compensation practices; and
(b) A portion of the executive compensation should be tied to the
performance of the Company and the individual.
The Company's compensation program is comprised of two main components: Base
Salary and Incentive Compensation (Bonus).
5
<PAGE>
BASE SALARY
Base salaries for the Company's executives are reviewed annually taking into
account the level of compensation offered by companies of comparable size
engaged in the business of publishing or investment management, as applicable.
The Committee believes that the base salary levels as established are reasonable
and necessary to attract and retain key employees.
ANNUAL INCENTIVE COMPENSATION PLAN
Bonus payments are awarded to executive officers based upon Company
performance and the individual's achievement of goals and objectives. The
financial performance of the Company and achievement of individual goals and
objectives are given approximately equal weighting in determining bonuses paid
to all executive officers.
CHIEF EXECUTIVE OFFICER COMPENSATION FOR FISCAL 1997
Jean B. Buttner's base salary in fiscal 1997 was increased from that paid in
fiscal 1996 by less than 1%. The base salary in fiscal 1996 had been increased
from that paid in fiscal 1995 on the basis of a general cost-of-living increase.
Mrs. Buttner was awarded a bonus under the Company's annual incentive
compensation plan for fiscal 1997 of $600,000. In establishing this bonus,
consideration was given to a number of her significant achievements during the
fiscal year, among which are the facts that revenues, income from operations,
income from securities transactions, net income and earnings per share all set
new record highs for the Company in fiscal 1997. The number of full-term
subscriptions also reached a record high in 1997.
The Company has two substantial lines of business, whereas most of its
competitors have a single line of business. In consideration of the Company's
dual lines of business, the Committee looked at CEO compensation in both the
investment management and publishing industries. Compensation in investment
management was deemed more relevant in determining compensation for the CEO
position.
At the request of the Compensation Committee, Watson Wyatt Worldwide
conducted a study of Mrs. Buttner's fiscal 1997 compensation. The study included
a comparative analysis of both Mrs. Buttner's compensation package and the
financial performance of the Company.
Watson Wyatt Worldwide observed in its report that, for 1997, the Company
performed extremely well relative to a peer group of mutual fund asset managers
and broker/dealers.
The report indicated that based on Watson Wyatt Worldwide's surveyed data,
Mrs. Buttner's compensation for fiscal 1997 fell between the median and the 75th
percentile of such data. It concluded that given the Company's outstanding
financial performance for fiscal 1997, Mrs. Buttner's total direct compensation
is below that of comparably performing companies. In addition, Mrs. Buttner has
not been granted any stock options unlike executives at comparable companies
because of her substantial equity interest in the Company through her ownership
of shares of Arnold Bernhard & Co., Inc.
COMPENSATION COMMITTEE
Jean B. Buttner, Chairman
Howard A. Brecher
David T. Henigson
6
<PAGE>
COMPENSATION COMMITTEE INTERLOCKS
AND INSIDER PARTICIPATION
The names of the members of the Compensation Committee during the fiscal
year ended April 30, 1997 are set forth above. During such fiscal year, each of
Jean Bernhard Buttner, Howard A. Brecher and David T. Henigson served as an
officer and director of the Company and each of its subsidiaries. Each of such
individuals also served as an officer and director of Arnold Bernhard & Co.,
Inc. Certain relationships between the Company and Arnold Bernhard & Co., Inc.
are described above under "Certain Relationships and Related Transactions."
7
<PAGE>
COMPARATIVE FIVE-YEAR TOTAL RETURNS*
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
VALUE LINE,
INC. RUSSEL 2000 INDEX PEER GROUP
<S> <C> <C> <C>
1992 100.00 100.00 100.00
1993 90.68 115.77 114.29
1994 107.40 132.92 124.98
1995 90.96 142.28 127.08
1996 109.54 189.20 157.51
1997 167.38 189.22 186.03
</TABLE>
Assumes $100 invested at the close of trading on April 30, 1992 in Value Line,
Inc. common stock, Russell 2000 Index, and Peer Group.
*Cumulative total return assumes reinvestment of dividends.
(1) The Peer Group is comprised of the following companies:
Alliance Capital Management L.P.
Dun & Bradstreet Corp.
Eaton Vance Corp.
McGraw Hill Companies, Inc.
Thomas Nelson, Inc.
Pioneer Group Inc.
Plenum Publishing Corp.
T. Rowe Price & Associates, Inc.
(2) The Company believes that its total return is impeded by the relatively
small float of public shares outstanding and the resulting illiquidity in
trading.
The Compensation Committee Report and the Comparative Five-Year Total
Returns graph shall not be deemed to be "soliciting material" or to be "filed"
with the Securities and Exchange Commission or subject to Regulation 14A or 14C
of the Regulations of the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), or to the
liabilities of Section 18 of the Exchange Act.
8
<PAGE>
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The independent certified public accountants selected by the Board of
Directors to audit the Company's books and records for the 1998 fiscal year are
the firm of Horowitz & Ullmann, P.C., which firm also audited the Company's
books and records for the fiscal year ended April 30, 1997. It is expected that
a representative of Horowitz & Ullmann, P.C. will be present at the Annual
Meeting.
SHAREHOLDER PROPOSALS FOR THE 1998 ANNUAL MEETING
Shareholder proposals intended for presentation at the Annual Meeting of
Shareholders to be held in October 1998 must be received by the Company for
inclusion in its proxy statement and form of proxy relating to that meeting no
later than May 20, 1998. The Company's By-Laws contain other procedures for
proposals to be properly brought before an annual meeting of shareholders. To be
timely, a shareholder must have given written notice thereof to the Chairman of
the Board of Directors with a copy to the Secretary and such notice must be
received at the principal executive offices of the Company not less than thirty
nor more than sixty days prior to the scheduled annual meeting; provided,
however, that if less than forty days' notice or prior public disclosure of the
date of the scheduled annual meeting is given or made, notice by the shareholder
to be timely must be so received not later than the close of business on the
tenth day following the earlier of the day on which such notice of the date of
the scheduled annual meeting was mailed or the day on which such public
disclosure was made. Such shareholder's notice shall set forth as to each matter
the shareholder proposes to bring before the annual meeting (i) a brief
description of the proposal desired to be brought before the annual meeting and
the reasons for conducting such business at the annual meeting, (ii) the name
and address, as they appear on the Company's books, of the shareholder proposing
such business, (iii) the class and number of shares which are beneficially owned
by the shareholder on the date of such shareholder notice and (iv) any material
interest of the shareholder in such proposal.
9
<PAGE>
FORM 10-K ANNUAL REPORT
ANY SHAREHOLDER WHO DESIRES A COPY OF THE COMPANY'S ANNUAL REPORT ON FORM
10-K FOR THE FISCAL YEAR ENDED APRIL 30, 1997 FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION MAY OBTAIN A COPY (EXCLUDING EXHIBITS) WITHOUT CHARGE BY
ADDRESSING A REQUEST TO THE SECRETARY OF THE COMPANY AT 220 EAST 42ND STREET,
NEW YORK, NEW YORK 10017. EXHIBITS MAY ALSO BE REQUESTED, AT A CHARGE EQUAL TO
THE REPRODUCTION AND MAILING COSTS.
GENERAL
The Board of Directors is not aware of any business to come before the
meeting other than that set forth in the Notice of Annual Meeting of
Shareholders. However, if any other business is properly brought before the
meeting, it is the intention of the persons named in the enclosed proxy to vote
such proxy in accordance with their best judgment.
The Company is mailing its Annual Report for the fiscal year ended April 30,
1997 to shareholders together with this Proxy Statement.
10
