NEW YORK, April 4, 2007 (PRIME NEWSWIRE) -- Bexil Corporation (AMEX:BXL) today reported its financial results for the year ended December 31, 2006.
2006 Financial Results
On April 28, 2006, we consummated the sale of our 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 $37.5 million before income taxes on such sale. Our net income was $22,301,533 or $24.23 per share on a diluted basis in 2006 compared to net income of $1,400,222 or $1.59 per share on a diluted basis in 2005.
Our primary source of revenue since the sale of York has been from interest and dividend income earned from U.S. Treasury securities and money market funds. Revenue decreased $167,000 for the year ended December 31, 2006, compared to 2005, due to the decrease in consulting fees earned from York as a result of the sale of our fifty percent interest in York. Total expenses increased approximately $1,100,000 for the year ended December 31, 2006, compared to 2005. Other income increased approximately $39,000,000 for the year ended December 31, 2006, compared to 2005 due to the gain from the sale of our fifty percent interest in York of approximately $37,500,000 and an increase in interest and dividend income of approximately $1,500,000.
At December 31, 2006, we had positive working capital of $37,739,552, total assets of $38,071,710, no long-term debt, and shareholders' equity of $37,864,881.
Business Overview. Since the sale of the York shares, we have been operating to acquire and/or develop one or more businesses. There are no limits on the types of businesses or fields in which we may devote our assets. We have no plans to dissolve and liquidate the Company. We are currently engaged in the business of evaluating opportunities to develop and acquire long-term acute care hospitals.
The Company's acquisition parameters for a public company and private business are
-- A proven track record with demonstrated earning power. -- Sales between $10 million and $50 million. -- A seasoned business with solid customer relations. -- Good return (at least 15%) on equity, little or no debt. -- Solid management must remain. Audited financials required. -- Particularly interested in a "spin-off" from a larger company.
We generally are not interested in acquiring (but we may develop) start-ups, turnarounds, or high tech. We will sign a confidentiality agreement and will protect broker's sell agreements. If the seller quotes a price, we will respond promptly.
About Bexil Corporation
Bexil is a holding company. Bexil's 10-KSB for the year ended December 31, 2006 may be accessed at www.sec.gov and at www.bexil.com. 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.