NEW YORK, NY / ACCESSWIRE / August 12, 2020 / Bexil Corporation (OTC PINK:BXLC) ("Bexil" or the "Company") today reported its financial results for the second quarter ended June 30, 2020.
For the three months ended June 30, 2020, Bexil recorded net income attributable to Bexil shareholders of approximately $1.46 million or $1.74 of diluted earnings per share, compared to net income attributable to Bexil shareholders of approximately $0.45 million or $0.50 of diluted earnings per share for the three months ended June 30, 2019.
For the six months ended June 30, 2020, Bexil recorded a net loss attributable to Bexil shareholders of approximately $4.01 million or $4.88 per share compared to net income attributable to Bexil shareholders of approximately $2.60 million or $2.88 of diluted earnings per share for the six months ended June 30, 2019.
The Company's book value per share attributable to Bexil shareholders at June 30, 2020 was $21.86, based on shareholders' equity attributable to Bexil shareholders of approximately $17.9 million and 822,132 shares issued and outstanding.
The Company's unaudited consolidated balance sheet, statements of comprehensive income (loss), and statements of cash flows as of and for the six months ended June 30, 2020 are appended to the copy of this press release on www.Bexil.com.
Effects of COVID-19 on the Company
To the extent COVID-19 has caused prices of publicly traded securities generally to decline in 2020, it has indirectly impacted the Company's financial condition and results of operations because the Company's assets are substantially invested in such securities and revenue from its operations are largely dependent on the value of gross assets under management invested in such securities. The full impact of COVID-19 on the Company's financial condition and results of operations is uncertain and cannot be predicted at the current time as it depends on several factors beyond the control of the Company including, but not limited to the uncertainty around (i) the severity and duration of the outbreak, (ii) the effectiveness of the U.S. public health response, (iii) the pandemic's impact on the U.S. and global economies, (iv) the timing, scope, and effectiveness of additional governmental responses to the pandemic, (v) the timing and speed of economic recovery, including the availability of a treatment or vaccination for COVID-19, and (vi) the impact on financial markets. Due to these and similar factors, on May 19, 2020 a Company affiliate (the "Borrower") entered into a Paycheck Protection Program Term Note ("PPP Note") on behalf of itself and certain of its affiliates, including the Company (collectively, the "Affiliates"), under the Paycheck Protection Program of the recently enacted Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). Interest accrues on the PPP Note at the rate per annum of 1.00%. The Borrower may apply for forgiveness of the amount due on the PPP Note which is anticipated to be an amount equal to the sum of eligible payroll, mortgage interest, rent, and utility expenses incurred by the Affiliates during, at the Borrower's discretion and whichever is most advantageous, either the eight weeks or twenty-four weeks (the "Covered Period") following disbursement under the PPP Note. To the extent the PPP Note is forgiven, and legal release is received, the Company expects to record a gain in an amount proportionate to its share of such eligible expenses incurred during the Covered Period. On May 19, 2022, all accrued interest that is not forgiven shall be due and payable.
About Bexil Corporation
Bexil is primarily engaged through a wholly owned subsidiary in investment management. To learn more about Bexil, including Rule 15c2-11 information, please visit www.Bexil.com.
Safe Harbor Note
This release may contain certain "forward looking statements" within the meaning of federal securities laws including, but not limited to the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Bexil, which may cause the Company's actual results to be materially different from those expressed or implied by such statements. The Company may also make additional forward looking statements from time to time. All such subsequent forward looking statements, whether written or oral, by the Company or on its behalf, are also expressly qualified by these cautionary statements. Investors should carefully consider the risks, uncertainties, and other factors, together with all of the other information included in the Company's Annual Report, at http://www.bexil.com/cautionary-language.html, and similar information. All forward looking statements made herein are only made as of the date of this release, and the Company undertakes no obligation to publicly update such forward looking statements to reflect subsequent events or circumstances.
The Company views book value per share, a non-GAAP financial measure, as an important indicator of financial performance. Presented in conjunction with other financial information, the combined presentation can enhance an investor's understanding of the Company's underlying financial condition and results from operations. The definition of book value as presented in this press release is shareholders' equity attributable to Bexil shareholders divided by currently issued and outstanding shares.
SOURCE: Bexil Corporation