NEW YORK, Nov. 15, 2006 (PRIMEZONE) -- Bexil Corporation (AMEX:BXL) today reported its financial results for the third quarter ended September 30, 2006.
Revenue. Revenue increased approximately $497,000 and $951,000 for the three months and nine months ended September 30, 2006, respectively, compared to 2005 mainly due to an increase in dividend and interest income. Cash balances increased over the same period due to the proceeds from the sale of York on April 28, 2006 and to dividends received from York in 2005.
Expenses. Total expenses increased approximately $36,000 and $293,000 for the three months and nine months ended September 30, 2006, respectively, compared to 2005.
Compensation and benefits increased approximately $66,000 and $206,000 for the three months and nine months ended September 30, 2006, respectively, compared to 2005. The Company recognized approximately $26,000 and $93,000 in compensation expense for unvested stock options due to the adoption of SFAS 123(R) for the three months and nine months ended September 30, 2006, respectively. Compensation also increased due to an increase in jointly used administrative and support functions incurred by Winco and allocated to the Company.
Professional expenses decreased approximately $49,000 and increased approximately $81,000 for the three months and nine months ended September 30, 2006, respectively compared to 2005. The variances are attributable to the timing of expenses incurred leading up to the York sale transaction partially offset by lower audit and legal expenses in 2006 compared to 2005.
Business Overview. The Company is seeking to acquire and/or develop one or more businesses. There are no limits on the types of businesses or fields in which the Company may devote its assets. No businesses to acquire or develop have been identified by the Company at this time. We have no plans to dissolve and liquidate the Company. We may decide to use most of the proceeds from the sale to start up and develop a business or to explore other alternatives, such as an acquisition of, or business combination with, another entity or entities. At this time our Board of Directors has not made any decision to pursue any of these options.
On May 2, 2006, Bexil announced its business acquisition parameters. See www.bexil.com.
Net income. Net income was $21,804,524 or $23.69 per share on a diluted basis for the nine months ended September 30, 2006, compared to net income of $1,429,617 or $1.63 per share on a diluted basis for the nine months ended September 30, 2005.
Bexil's 10-QSB for the third quarter ended September 30, 2006 may be accessed at www.sec.gov and at www.bexil.com.
About Bexil Corporation
Bexil is a holding company. At September 30, 2006, the Company had positive working capital of $37,388,008, total assets of $40,676,441, no long-term debt, and shareholders' equity of $37,388,008. 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.
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.