BXL Bexil Corp

Bexil Corporation (AMEX: BXL) today reported its financial results for the second quarter of 2005. -0- *T BEXIL CORPORATION UNAUDITED CONDENSED STATEMENTS OF INCOME Three Months Ended Six Months Ended June 30, June 30, ------------------- -------------------- 2005 2004(a) 2005 2004(a) --------- --------- ---------- --------- Revenues: Consulting fees $37,500 $24,999 $75,000 $49,998 Other 21,402 11,764 47,123 52,206 --------- --------- ---------- --------- 58,902 36,763 122,123 102,204 --------- --------- ---------- --------- Expenses: General and Administrative 177,266 179,252 332,773 382,743 Communications 4,877 12,192 8,281 16,977 Professional fees 156,238 64,167 172,738 82,965 --------- --------- ---------- --------- 338,381 255,611 513,792 482,685 --------- --------- ---------- --------- Loss before income taxes and equity in earnings of York Insurance Services Group, Inc. (279,479) (218,848) (391,669) (380,481) Income tax benefit (43,362) (47,929) (31,620) (65,173) Equity in earnings of York Insurance Services Group, Inc. 586,043 456,348 1,180,462 975,853 --------- --------- ---------- --------- Net income $349,926 $285,429 $820,413 $660,545 ========= ========= ========== ========= Per share net income: Basic $0.40 $0.32 $0.93 $0.75 Diluted $0.40 $0.32 $0.93 $0.75 Average shares outstanding: Basic 879,591 879,591 879,591 879,591 Diluted 879,591 879,591 879,591 880,249 (a) Note: The unaudited statements of income for the three and six month periods ended June 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, therefore York's financial results are not consolidated with our own. Three Months Ended June 30, 2005 Compared to Three Months Ended June 30, 2004 For the three months ended June 30, 2005 compared to the three months ended June 30, 2004, total revenue of $58,902 increased $22,139 or 60.2% from $36,763, due to an increase in consulting fees of $12,500 and other revenue of $9,638. The increase in other revenue was due primarily to dividends earned from money market fund balances. The equity in the earnings of York of $586,043 increased $129,695 or 28.4% due to York's increased earnings. York's revenue in the same comparable period increased 25.7%. Total expenses of $338,381 increased $82,770 or 32.4% compared to the same period in 2004. Professional fees increased $92,071 or 143.5% primarily due to an increase in audit fees. General and administrative and communications expenses decreased $9,301. Net income for the three months ended June 30, 2005 was $349,926 or $0.40 per share on a diluted basis as compared to net income of $285,429 or $0.32 per share on a diluted basis for the three months ended June 30, 2004. Six Months Ended June 30, 2005 Compared to Six Months Ended June 30, 2004 For the six months ended June 30, 2005 compared to the six months ended June 30, 2004, total revenue of $122,123 increased $19,919 or 19.5% from $102,204, due to an increase in consulting fees of $25,002 partially offset by a decrease in other revenue of $5,083. The equity in the earnings of York of $1,180,462 increased $204,609 or 21.0% due to York's increased earnings. York's revenue in the same comparable period increased 20.3%. Total expenses of $513,792 increased $31,107 or 6.4% compared to the same period in 2004. Professional fees increased $89,773 or 108.2% primarily due to an increase in audit fees. General and administrative expenses decreased $49,970 or 13.1% due to lower compensation costs and directors fees of approximately $37,000 and $11,000, respectively. Communications expense decreased $8,696. Net income for the six months ended June 30, 2005 was $820,413 or $0.93 per share on a diluted basis as compared to net income of $660,545 or $0.75 per share on a diluted basis for the six months ended June 30, 2004. York is one of the leading privately owned insurance services business process sourcing 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 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 six months ended June 30, 2005 and 2004 was as follows: -0- *T Six Months Ended June 30, York Insurance Services Group, Inc. 2005 2004 --------------- --------------- Revenues $34,139,589 $28,380,576 Expenses $30,002,810 $25,309,800 Net income $2,360,926 $1,951,706 Working capital $11,512,969 $10,409,373 Total assets $27,359,677 $24,780,031 Total liabilities $11,151,779 $10,022,447 Shareholder's equity $16,207,898 $14,757,584 *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.