BXL Bexil Corp

Bexil Corporation (AMEX: BXL) today reported its financial results for the third quarter of 2005. -0- *T BEXIL CORPORATION UNAUDITED CONDENSED STATEMENTS OF INCOME Three Months Ended Nine Months Ended September 30, September 30, 2005 2004 * 2005 2004 * --------- --------- ---------- ---------- Revenues: Consulting fees $ 37,500 $ 24,999 $ 112,500 $ 74,997 Other 38,992 6,162 86,115 58,368 --------- --------- ---------- ---------- 76,492 31,161 198,615 133,365 --------- --------- ---------- ---------- Expenses: General and administrative 166,434 152,279 499,208 535,022 Communications 4,762 6,055 13,042 23,032 Professional fees 125,665 19,763 298,403 102,728 --------- --------- ---------- ---------- 296,861 178,097 810,653 660,782 --------- --------- ---------- ---------- Loss before income taxes and equity in earnings of York Insurance Services Group, Inc. (220,369) (146,936) (612,038) (527,417) Income tax expense (benefit) 124,555 17,105 92,935 (48,068) Equity in earnings of York Insurance Services Group, Inc. 954,127 588,106 2,134,590 1,563,959 --------- --------- ---------- ---------- Net income $ 609,203 $ 424,065 $1,429,617 $1,084,610 ========= ========= ========== ========== Per share net income: Basic $ 0.69 $ 0.48 $ 1.63 $ 1.23 Diluted $ 0.69 $ 0.48 $ 1.63 $ 1.23 Average shares outstanding: Basic 879,592 879,591 879,592 879,591 Diluted 879,592 879,591 879,592 880,043 * Note: The unaudited statements of income for the three and nine month periods ended September 30, 2004 were restated to correct the presentation of equity in earnings of York Insurance Services Group, Inc. The restatement presents the equity in earnings of York after income taxes on the statement of income instead of as a component of revenue as originally reported. The correction had no effect on net income or earnings per share. *T Bexil Corporation is a holding company. Our primary holding is a 50% interest in privately held York Insurance Services Group, Inc. ("York"). We account for our interest in York using the equity method, and therefore our financial results are not consolidated with York's. Three Months Ended September 30, 2005 Compared to Three Months Ended September 30, 2004 For the three months ended September 30, 2005 compared to the three months ended September 30, 2004, total revenue of $76,492 increased $45,331 or 145.5% from $31,161, due to an increase in consulting fees of $12,501 and an increase in other revenue of $32,830. The increase in other revenue was primarily due to an increase in dividends earned from an investment in a money market fund. Equity in earnings of York of $954,127 increased $366,021 or 62.2% due to York's increased earnings. York's revenue in the same comparable period increased 5.1%. Total expenses of $296,861 increased $118,764 or 66.7% compared to the same period in 2004. Professional fees increased $105,902 or 535.9% primarily due to an increase in audit fees. General and administrative expense and communications expense increased $12,862. Net income for the three months ended September 30, 2005 was $609,203 or $0.69 per share on a diluted basis as compared to net income of $424,065 or $0.48 per share on a diluted basis for the three months ended September 30, 2004. Nine Months Ended September 30, 2005 Compared to Nine Months Ended September 30, 2004 For the nine months ended September 30, 2005 compared to the nine months ended September 30, 2004, total revenue of $198,615 increased $65,250 or 48.9% from $133,365, due to an increase in consulting fees of $37,503 and an increase in other revenue of $27,747. The increase in other revenue was primarily due to an increase in investment income from dividends earned from an investment in a money market fund. Equity in earnings of York of $2,134,590 increased $570,631 or 36.5% due to York's increased earnings. York's revenue in the same comparable period increased 14.7%. Total expenses of $810,653 increased $149,871 or 22.7% compared to the same period in 2004. Professional fees increased $195,675 or 190.5% primarily due to an increase in audit fees. The increase in professional fees was partially offset by decreases to general and administrative expenses of $38,814 or 6.7% and communications expenses of $9,990 or 43.4%. Net income for the nine months ended September 30, 2005 was $1,429,617 or $1.63 per share on a diluted basis as compared to net income of $1,084,610 or $1.23 per share on a diluted basis for the nine months ended September 30, 2004. York is a privately owned 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 claims data and risk related services to insurance companies, self insureds, and intermediaries throughout the United States. More recently, York has established business units in the program management, licensed private investigation, recovery, environmental consulting, retail logistics and large/complex loss adjusting markets. York's summarized and unaudited condensed financial information for the nine months ended September 30, 2005 and 2004 was as follows: -0- *T Nine Months Ended September 30, York Insurance Services Group, Inc. 2005 2004 ------------ ------------ Revenues $ 51,357,653 $ 44,761,334 Expenses $ 44,529,657 $ 39,694,559 Net income $ 4,269,181 $ 3,127,918 Working capital $ 12,820,028 $ 11,265,627 Total assets $ 29,309,281 $ 29,980,077 Total liabilities $ 11,534,510 $ 14,046,284 Shareholder's equity $ 17,774,771 $ 15,933,793 *T More information about Bexil may be found at its web site http://www.bexil.com. This press release may contain "forward looking information" and "forward looking statements" and similar expressions that reflect Bexil's current expectations about its future performance, and are subject to risks, uncertainties and other factors that could cause Bexil's actual performance to differ materially from those expressed in, or implied by, the forward looking information and these forward looking statements.