BXL Bexil Corp

Bexil Corporation (AMEX: BXL) today announced its financial results for the year ended December 31, 2004. -0- *T 2004 ---------- Revenues: Realized and unrealized appreciation on investments Interest and dividends $ 51,052 Other 116,108 ---------- 167,160 ---------- Expenses: General and administrative 813,613 Communication costs 30,348 Professional fees 182,796 ---------- 1,026,757 ---------- Loss before income taxes and equity in earnings of York Insurance Services Group, Inc. (859,597) Income tax (benefit) (267,294) Equity in earnings of York Insurance Services Group, Inc. 2,812,088 ---------- Net income $2,219,785 ========== Per share net income: Basic $ 2.52 Diluted $ 2.52 Weighted average common shares outstanding: Basic 879,591 Diluted 879,591 *T Bexil Corporation is a holding company. The Company's primary holding is a 50% interest in privately held York Insurance Services Group, Inc. ("York"). For 2004 the Company's 50% interest in York is accounted for using the equity method and, therefore, York's financial statements are not consolidated with our own. For 2003, inasmuch as the Company was a registered investment company at that time, York is accounted for using the fair value method. York is one of the leading privately owned insurance services business process outsourcing ("BPO") companies in the United States. Since the 1930's, York, through predecessor companies, has served as both an independent adjustment company and third party administrator ("TPA") providing comprehensive 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. -0- *T York's summarized condensed consolidated financial information is as follows as of and for the year ended December 31: York Insurance Services Group, Inc. ----------------------------------- 2004 2003 ---------------- -------------- Revenues $ 71,409,418 $ 52,759,165 Expenses $ 60,599,590 $ 43,329,222 Net income $ 6,041,101 $ 5,600,129 Working capital $ 14,141,537 $ 8,801,701 Total assets $ 35,454,522 $ 20,880,621 Long term debt $ 1,209,949 $ 2,046,509 Shareholder's equity $ 18,846,973 $ 12,805,872 *T For the year ended December 31, 2004 compared to the year ended December 31, 2003, the Company's total revenues of $167,160 decreased $5,242,322 from $5,409,482 and equity earnings (net of taxes) of $2,812,088 were recognized in 2004 and not in 2003, due to an accounting change from fair value accounting to equity method accounting. Interest and dividends decreased by $115,295 primarily due to lower interest rates and lower investable assets. Total expenses of $1,026,757 increased $307,585 or 42.8%. General and administrative expenses increased $238,058 or 41.4% primarily due to higher employee costs. Professional fees of $182,796 were $73,391 higher than those in 2003 due to higher legal costs arising out of the adoption of the 2004 Long Term Incentive Plan and unanticipated higher auditing fees. Communication expense declined $3,728 or 11.3% from $34,212. The effective tax rate applicable to the deferred income tax expense is significantly lower under the equity method of accounting due to the benefit of the 80% dividend receive exclusion. For the reasons described above, relating to the change in accounting method, net income for the year ended December 31, 2004 was $2,219,785 or $2.52 per share on a diluted basis as compared to net income of $2,483,069 or $2.84 per share on a diluted basis for the twelve months ended December 31, 2003. The Company also announced today that the filing of its report on Form 10-QSB for the quarter ended March 31, 2005 had been further delayed and that it anticipated filing the report by July 11, 2005. The Company stated that the further delay was attributable to the time necessary to make an accounting presentation of the Company's conversion from an investment company to an operating company. 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.