Middletown-based BNS Co. reported Friday a net loss of $629,000, or 21 cents per share basic and diluted, for the third quarter ended Sept. 30. The loss for the quarter included an adjustment to insurance expense of $301,000 resulting from a change in an insurance policy that was prepaid in 2003, the company said in a press release. This policy was purchased in anticipation of the company’s liquidation after the sale of its U.K. assets. As the company did not liquidate, the policy was revised and, after a credit from the insurer, the remaining prepaid premium was expensed.
The balance of the quarter’s loss arose from normal overhead costs and the costs of exploring strategic alternatives. The company had no revenue in the quarter.
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Following its June 11 annual meeting, the company initiated a search for a suitable acquisition candidate or merger partner. Management and the board of directors have reviewed a number of merger and acquisition proposals, and continue to search for a suitable partner, the company said.
Michael Warren, company president and CEO, indicated that with the sale of its U.K. assets, consummated in June, and the 2003 sale of the its Rhode Island property, the company now has in excess of $21 million in unrestricted cash and marketable securities, and has no debt.
“The company has everything in place to close a deal,” Warren said. “The acquisition of, or merger with, an operating business will allow the company to preserve the use of its approximately $45 million in net operating loss carry-forwards to offset otherwise taxable earnings. The company is continuing to successfully resolve, through settlement or dismissal, its contingent product liability claims.”
BNS Co., formerly known as Brown & Sharpe Manufacturing Company, is considered a Rhode Island icon and one of the oldest corporations in America. Established in 1833, it played a significant role in the Industrial Revolution as an innovative manufacturer of machine tools and precision measurement instruments. It has been in continuous operation since then, but in recent years began gradually selling its operating units and other assets.
