21st Century Holding Company Reports Record Q2 Earnings of $0.69 Per Share.Business Editors PLANTATION, Fla.--(BUSINESS WIRE)--Aug. 4, 2003 21st Century Holding Company (Nasdaq:TCHC TCHC Tri-City Homeless Coalition (Fremont, CA) ), today reported results for the second quarter and six months ended June 30, 2003 (see attached tables). For the second quarter of 2003, the Company reported net income of $2,113,934, or $0.66 per 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 based on 3,194,747 average diluted shares outstanding, as compared to net income of $32,041, or $0.01 per share, based on 3,020,126 average diluted shares outstanding for the second quarter of 2002. These results exceeded Company guidance of $0.60 per share. Net premium earned in the second quarter of 2003 increased 68.8% to $10.9 million from $6.5 million in the same period last year. This increase is due primarily to changes in the Company's reinsurance treaties Reinsurance Treaty (June 18, 1887) Secret agreement between Germany and Russia. Arranged by Otto von Bismarck after the collapse of the Three Emperors' League, it provided that each party would remain neutral if either became involved in a war with a third nation, and that and increased property writings. Total revenue for the second quarter of 2003 increased 79% to $14.9 million from $8.4 million in the same period last year. Net income and total revenue for the second quarter of 2002 included a $1.5 million write down related to the Company's investment in WorldCom bonds. Edward J. (Ted) Lawson, President & Chairman of the Board, said, "These record results reflect the continued, successful execution of our business plan and the validity of our vertically integrated business model. By controlling all aspects of the insurance 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. , distribution and claims process, 21st Century has been able to generate revenues and profits from each of the businesses that we operate, while allowing us to effectively manage expenses and provide the highest level of customer and agent care." Mr. Lawson continued, "We are also focused on growing our existing products and creating new streams of revenue. In this regard, our American Vehicle Insurance Company subsidiary launched its recently approved general liability product in the state of Florida in June. This line of business is slated to be a significant contributor to our top and bottom line growth over time. Furthermore, our goal of becoming a regional insurance carrier is now beginning to unfold unfold - inline as American Vehicle has just recently been approved to write general liability insurance in Georgia on a surplus lines basis and has also applied for a license 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. and sell personal automobile and general liability insurance in Alabama. Other states in the Southeast will follow. "During the year our loss ratios in our automobile division have increased and our loss ratios in property have decreased. To correct our auto loss ratio, the Company is increasing auto rates by a projected 15-20% starting in October and shifting its writings from auto into general liability and property lines, which typically produce higher margins and lower loss ratios. These changes are expected to result in higher revenues and earnings starting in the first quarter of 2004. In our fourth quarter, 70% of our net writings are projected to be in property and general liability lines versus less than 30% in 2002. "Our financial condition has recently been bolstered by a $7.5 million 6% subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". offering, proceeds of which will be used to strengthen our balance sheet and provide funds to expand into the Southeast. With these added funds and our continued expectations of strong profitability, we remain confident of our financial condition. Investments during 2003 increased by 43% to $36.4 million due to increased writings and have been conservatively invested in primarily AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. rated securities. Total assets have increased by 14% to $86.2 million from $75.3 million as of December 31, 2002. Shareholder equity increased by $2.5 million from $21.0 at the end of the first quarter to $23.5 at the end of the second quarter and $8.8 million of operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. was generated for the first six months of 2003. "For the balance of the year our outlook remains positive and we will, as necessary, update guidance as the quarter progresses. "Finally, as a further sign of both mine and Michele's (my wife, cofounder co·found tr.v. co·found·ed, co·found·ing, co·founds To establish or found in concert with another or others. co·found and Treasurer) personal bullish Bullish Word used to describe an investor's attitude. Bullish refers to an optimistic outlook, while bearish means a pessimistic outlook. bullish outlook on the future of your company, we will be exercising (buying) within the next few weeks, with our own money, 26,000 stock options granted to us during the Company's initial public offering in 1998. The proceeds to the Company will be $260,000 when the transaction is completed and will give Michele and me a combined total of approximately 971,000 shares of common stock in the Company." The Company will hold an investor conference call today following this release at 10:00 AM (ET). Listeners can access the conference call by dialing toll free 877-780-2276. Please call at least five minutes in advance to ensure that you are connected prior to the presentation. 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. , mobile home insurance and homeowners' property and casualty insurance in the State of Florida. The Company also has underwriting authority and processes claims for third party insurance companies. In addition to insurance services, the Company offers financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. to its insureds as well as the insured of third party insurance companies. Lastly, the Company offers other ancillary services including licensing of its tax preparation software products, electronic income tax filing, tax preparation and tag and title transfer services. The Company offers single and master franchise opportunities to individuals through its subsidiaries Fed USA Insurance/Financial Services and EXPRESSTAX(R) Franchise Corporation. 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 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; 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 its liability for loss and loss adjustment expense ("LAE"); insurance agents; claims experience; limited experience in the insurance industry; ratings by industry services; catastrophe 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. Reported results may therefore appear to be volatile in certain accounting periods.
21st CENTURY HOLDING COMPANY
Financial Highlights (Unaudited)
For the Three Months For the Six Months
Ended, Ended,
6/30/03 6/30/02 6/30/03 6/30/02
------- ------- ------- -------
Operations Data
---------------
Total Revenue $14,944,779 $ 8,353,729 $29,806,789 $17,244,353
Net Realized
Investment
Gaines (Losses) 1,068,818 (1,513,517) 1,419,700 (1,459,736)
Pretax Income 3,148,996 923,391 6,755,865 2,467,627
Income Tax Expense 1,035,062 891,350 2,333,530 1,444,216
Net Income 2,113,934 32,041 4,422,335 1,023,411
Net Income Per Share 0.69 0.01 1.46 0.34
Weighted Average
Shares Outstanding 3,063,105 3,017,526 3,034,220 3,023,226
Weighted Average
Shares Outstanding
- Assuming Dilution 3,194,747 3,020,126 3,125,479 3,023,226
Diluted EPS 0.66 0.01 1.41 0.34
Period Ending
Balance Sheet Data 6/30/03 12/31/02
------------------ ------- --------
Total Cash & Investments $41,027,308 $29,856,179
Total Assets 86,188,276 75,318,011
Loss and Loss Adjustment Expense 24,127,582 16,983,756
Total Liabilities 62,676,035 57,220,347
Total Shareholders' Equity 23,512,241 18,097,664
|
|
|||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion