NEW YORK, May 17, 2006 (PRIMEZONE) -- Bexil Corporation (AMEX:BXL) today reported its financial results for the first quarter ended March 31, 2006.
York
Bexil's primary holding since 2002 has been its fifty percent interest in privately held York Insurance Services Group, Inc. ("York"). York is an insurance services business process outsourcing company. Since the 1930's, York (through predecessor companies) has served as both an independent adjustment company and third party administrator providing comprehensive claims, data, and risk related services to insurance companies, self-insureds, and intermediaries throughout the United States. York's business units include the program management, licensed private investigation, recovery, environmental consulting, retail logistics and large/complex loss adjusting. Bexil's fifty percent interest in York is accounted for using the equity method and, therefore, York's financial results are not consolidated with Bexil's.
On April 28, 2006, the Company consummated the sale of its fifty percent interest in York to a newly formed entity controlled by a private equity fund and certain other investors for approximately $39 million in cash and realized a gain of approximately $36 million.
On May 2, 2006, Bexil announced its business acquisition parameters. See www.bexil.com.
Financial Results
Total revenues of $138,429 increased $75,208. The increase in revenue was comprised of an increase in dividend and interest income of $124,208 partially offset by a decrease in consulting and other fees of $49,000. The increase in dividend and interest income was attributable to larger investable cash balances and rising yields on our money market fund investments. Consulting and other revenue decreased due to the discontinuance of the Company's consulting arrangement with York. In 2005 the consulting fee was $150,000 per annum or $37,500 per quarter.
Total expenses of $470,197 increased $294,786 for the three months ended March 31, 2006 compared to total expenses of $175,411 for the three months ended March 31, 2005. Compensation and benefits increased $90,968. The increase was due to recognizing $38,604 in compensation expense for unvested stock options due to the adoption of SFAS 123(R) as of January 1, 2006 and to the increase in jointly used administrative and support functions incurred by Bexil affiliates and allocated to the Company. Professional expenses increased $196,869. This was due to an increase in audit, legal, and the York expense sharing agreement arising from the sale of York.
The Company's equity in the earnings of York increased $477,471 for the three months ended March 31, 2006, from $594,420 for the three months ended March 31, 2005 to $1,071,891. This increase is attributable to the increase York's net income for the same period.
Net income was $466,353 for the three months ended March 31, 2006 compared to net income of $470,487 for the three months ended March 31, 2005, representing a 0.9% decrease. Net income on a per-share diluted basis was $0.50 compared with $0.53.
At March 31, 2006, the Company had positive working capital of $12,514,836, total assets of $17,498,704, no long-term debt, and shareholders' equity of $16,862,283.
Bexil's 10-QSB for the first quarter 2006 ending March 31, 2006 may be accessed at www.sec.gov and at www.bexil.com.
About Bexil Corporation
Bexil is a holding company. More information about Bexil may be found at www.bexil.com. Approximately 25% of Bexil's shares are owned by Winmill & Co. Incorporated (Pink Sheets:WNMLA), which is engaged through subsidiaries in stock market and gold investing through its investment management of equity and gold mutual funds, as well as through proprietary securities trading.
Safe Harbor Note
Certain of the statements and predictions contained herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. In particular, any statements, projections or estimates that include or reference the words "believes," "intends," "anticipates," "plans," "expects," "will," or any similar expression fall within the safe harbor for forward-looking statements contained in the Reform Act. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and other factors, including those set forth below, which may cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by those statements. More information on potential risks and uncertainties is available in the Company's recent filings with the Securities and Exchange Commission, including its Form 10-KSB, quarterly Form 10-QSB reports and Forms 8-K.