21st Century Holding Company Reports 2nd Quarter Record Results with Earnings of $1.20 Per Share.LAUDERDALE Lauderdale is the name of various places:
For the three months ended June 30, 2006, the Company reported net income of $8,904,559, or $1.20 per share on 7,427,765 undiluted shares, versus net income of $3,023,541 or $0.48 per share on 6,349,182 undiluted shares in the same three-month period last year, beating Company guidance of $1.00 per share. On a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share basis, the Company reported earnings of $1.19 per share, based on 7,465,896 average diluted shares outstanding for the same three month period as compared to $0.46 per share based on 6,620,510 average diluted shares outstanding for the three months ended June 30, 2005. For the six months ended June 30, 2006, the Company reported net income of $14,917,871, or $2.02 per share on 7,370,592 undiluted shares versus net income of $8,843,821 or $1.43 per share on 6,171,134 undiluted shares in the same six month period last year. On a diluted share basis, the Company reported earnings of $1.89 per share, based on 7,880,251 average diluted shares outstanding for the same six month period as compared to $1.35 per share based on 6,550,789 average diluted shares outstanding for the six months ended June 30, 2005. Net premiums earned increased $6.9 million or 31.3% to $28.7 million for the three months ended June 30, 2006, as compared to $21.9 million for the same three-month period last year. Net premium earned increased $9.8 million or 24.1% to $50.5 million for the six months ended June 30, 2006, as compared to $40.7 million for the same six month period last year. Total revenues increased $7.7 million or 31.2% to $32.3 million for the three months ended June 30, 2006, as compared to $24.6 million for the same three-month period last year. Total revenues increased $11.0 million or 23.5% to $57.5 million for the six months ended June 30, 2006, as compared to $46.5 million for the same six month period last year. Edward Edward killed his father at his mother’s instigation. [Br. Balladry: Edward in Benét, 302] See : Patricide J. (Ted) Lawson The name Lawson can refer to a number of different things: People
Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and , our outlook for the remainder of the year remains positive and we will update guidance as each quarter progresses." The Company will hold an investor conference call at 4:30 PM (ET) today, August 2, 2006. Mr. Lawson and Mr. J. Gordon Gordon, river in W Tasmania, Australia, 125 mi (200 km) long. Flowing from mountains to the W coast, its main tributaries are the Franklin and Denison from the N, and Serpentine and Olga to the S. Jennings Jennings, city (1990 pop. 11,305), seat of Jefferson Davis parish, SW La., on the Mermentau River; inc. 1888. Cotton and rice are grown, there is a bottling plant, and drugs, machinery, apparel, and water-treatment systems are manufactured. III, CFO See Chief Financial Officer. , will discuss the financial results and review the outlook for the Company. Messrs. Lawson and Jennings invite interested parties to participate in the conference call. Listeners can access the conference call by dialing toll free 888-460-6235, conference ID 3760248. Please call at least five minutes in advance to ensure that you are connected prior to the presentation. A replay of the conference call will be available for 7 days at 800-642-1687. About the Company The Company, through its subsidiaries, underwrites standard and non-standard personal automobile insurance, flood insurance Flood insurance denotes the specific insurance coverage against property loss from flooding. To determine risk factors for specific properties, insurers will often refer to topographical maps that denote lowlands and floodplains that are susceptible to flooding. , general liability insurance, mobile home insurance and homeowners' property and casualty insurance in the State of Florida. The Company underwrites general liability coverage as an admitted carrier in the States of Louisiana CODE, OF LOUISIANA. In 1822, Peter Derbigny, Edward Livingston, and Moreau Lislet, were selected by the legislature to revise and amend the civil code, and to add to it such laws still in force as were not included therein. , Texas and Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). for more than 300 classes of business, including special events. The Company also operates as an approved (non-admitted) carrier in the States of Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. , Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. , Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). and South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. offering the same general liability products. In addition, the Company has underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. authority and processes claims for third party insurance companies. In addition to insurance services, the Company offers premium finance services to its insureds as well as insureds of certain third party insurance companies. Safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. statements under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Statements in this press release that are not historical fact are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to certain risks and uncertainties that could cause actual events and results to differ materially from those discussed herein. Without limiting the generality gen·er·al·i·ty n. pl. gen·er·al·i·ties 1. The state or quality of being general. 2. An observation or principle having general application; a generalization. 3. of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or "continue" or the other negative variations thereof or comparable terminology are intended to identify forward-looking statements. The risks and uncertainties include, without limitation, uncertainties related to estimates, assumptions and projections generally; inflation and other changes in economic conditions (including changes in interest rates and financial markets); pricing competition and other initiatives by competitors; ability to obtain regulatory approval for applications to underwrite To insure; to sell an issue of stocks and bonds or to guarantee the purchase of unsold stocks and bonds after a public issue. The word underwrite has two meanings. in an additional jurisdiction or for requested rate changes, and the timing thereof; legislative and regulatory developments; the outcome of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. pending against the Company and any settlement thereof; risks related to the nature of the Company's business; dependence on investment income and the composition of the Company's investment portfolio; the adequacy of the Company's liability for loss and loss adjustment expense; insurance agents; claims experience; limited experience in the insurance industry; ratings by industry services; catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). losses; reliance on key personnel; weather conditions (including the severity and frequency of storms, hurricanes, tornadoes and hail); changes in driving patterns and loss trends; acts of war Tom Clancy's Op-Center: Acts of War is a technothriller by Jeff Rovin Plot introduction The mobile Regional Operations Center (ROC) in Turkey investigates a dam blown up by Kurdish terrorists. and terrorist activities; court decisions and trends in litigation, and health care and auto repair costs; and other matters described from time to time by the Company in releases and publications, and in periodic reports and other documents filed with the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities and Exchange Commission. In addition, investors should be aware that generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting prescribe pre·scribe v. To give directions, either orally or in writing, for the preparation and administration of a remedy to be used in the treatment of a disease. when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when a reserve is established for a major contingency contingency n. an event that might not occur. . Reported results may therefore appear to be volatile in certain accounting periods.
21st CENTURY HOLDING COMPANY
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
Revenue: 2006 2005 2006 2005
------------ ------------ ------------ ------------
Gross premiums
written $50,752,672 $31,362,908 $86,361,745 $61,459,952
Gross premiums
ceded (3,371,781) (2,053,152) (3,371,781) (4,954,443)
------------ ------------ ------------ ------------
Net premiums
written 47,380,891 29,309,756 82,989,964 56,505,509
------------ ------------ ------------ ------------
Decrease in
prepaid
reinsurance
premiums (593,089) (2,835,083) (9,264,661) (5,510,378)
(Increase) in
unearned
premiums (18,047,162) (4,585,523) (23,177,223) (10,271,083)
------------ ------------ ------------ ------------
Net change in
prepaid
reinsurance
premiums and
unearned
premiums (18,640,251) (7,420,606) (32,441,884) (15,781,461)
------------ ------------ ------------ ------------
Net premiums
earned 28,740,640 21,889,150 50,548,080 40,724,048
Finance revenue 496,117 937,681 1,132,143 2,042,211
Managing general
agent fees 723,020 620,378 1,380,988 1,252,693
Net investment
income 1,612,014 910,925 2,808,279 1,803,796
Net realized
investment gains 283,341 125,510 479,552 285,033
Other income 486,962 161,913 1,107,761 404,381
------------ ------------ ------------ ------------
Total revenue 32,342,094 24,645,557 57,456,803 46,512,162
------------ ------------ ------------ ------------
Expenses:
Loss and loss
adjustment
expenses 9,343,158 12,308,775 16,912,001 19,218,772
Operating and
underwriting
expenses 2,308,331 2,206,281 4,612,576 3,788,812
Salaries and
wages 1,772,511 1,580,120 3,610,472 3,158,701
Interest expense 181,403 379,787 410,287 809,931
Policy
acquisition
costs, net of
amortization 4,126,985 3,222,441 8,045,037 7,048,042
------------ ------------ ------------ ------------
Total expenses 17,732,388 19,697,404 33,590,373 34,024,258
Income from cont'd
ops before
provision for inc
tax exp 14,609,706 4,948,153 23,866,430 12,487,904
Provision for
income tax
expense 5,705,147 1,924,612 8,948,559 4,678,687
------------ ------------ ------------ ------------
Net income from
continuing
operations 8,904,559 3,023,541 14,917,871 7,809,217
Discontinued
operations:
Income from
discontinued
operations
(including gain
on disposal of
$0 and
$1,630,000,
respectively) -- -- -- 1,630,000
Provision for
income tax expense -- -- -- 595,396
------------ ------------ ------------ ------------
Income from
discontinued
operations -- -- -- 1,034,604
------------ ------------ ------------ ------------
Net income $ 8,904,559 $ 3,023,541 $14,917,871 $ 8,843,821
============ ============ ============ ============
Basic net income
per share from
continuing
operations $ 1.20 $ 0.48 $ 2.02 $ 1.27
------------ ------------ ------------ ------------
Basic net income
per share from
discontinued
operations $ -- $ -- $ -- $ 0.16
------------ ------------ ------------ ------------
Basic net income
per share $ 1.20 $ 0.48 $ 2.02 $ 1.43
============ ============ ============ ============
Fully diluted net
income per share
from continuing
operations $ 1.19 $ 0.46 $ 1.89 $ 1.19
------------ ------------ ------------ ------------
Fully diluted net
income per share
from discontinued
operations $ -- $ -- $ -- $ 0.16
------------ ------------ ------------ ------------
Fully diluted net
income per share $ 1.19 $ 0.46 $ 1.89 $ 1.35
============ ============ ============ ============
Weighted average
number of common
shares outstanding 7,427,765 6,349,182 7,370,592 6,171,134
============ ============ ============ ============
Weighted average
number of common
shares outstanding
(assuming
dilution) 7,465,896 6,620,510 7,880,251 6,550,789
============ ============ ============ ============
Dividends declared
per share $ 0.12 $ 0.08 $ 0.24 $ 0.16
============ ============ ============ ============
21st CENTURY HOLDING COMPANY
Other Selected Data
(Unaudited)
Balance Sheet
------------- Period Ending
06/30/06 12/31/05
------------ -----------
Total Cash & Investments $143,715,315 $106,157,869
Total Assets $216,919,555 $290,154,753
Unpaid Loss and Loss Adjustment Expense $31,344,127 $154,038,543
Total Liabilities $155,759,072 $249,387,383
Total Shareholders' Equity $61,160,483 $40,767,370
Common Stock Outstanding 7,405,449 6,771,864
Book Value Per Share $8.26 $6.02
Premium Breakout
----------------
6 Months Ending
Line of Business 06/30/06 06/30/05
---------------- ------------ -----------
Automobile 5.7% 20.9%
Homeowners' 75.2% 60.3%
General Liability 19.1% 18.8%
-------- --------
Gross Written Premiums 100.0% 100.0%
Loss Ratios
-----------
3 Months Ending 6 Months Ending
Line of Business 06/30/06 06/30/05 06/30/06 06/30/05
---------------- -------- -------- -------- --------
Automobile 97.19% 71.91% 82.55% 61.92%
Homeowners' 25.91% 62.14% 26.04% 47.93%
General Liability 13.10% 20.79% 17.60% 23.04%
All Lines 32.51% 56.23% 33.46% 47.19%
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