21st Century Holding Company Reports Record Results with Earnings of $1.95 Per Share Exceeding Company Guidance.LAUDERDALE Lauderdale is the name of various places:
For the three months ended December 31, 2005, the Company reported net income of $1,418,991, or $0.22 per share on 6,502,350 undiluted shares, versus a net loss of $510,302 or $0.08 per share on 6,024,693 undiluted shares in the same three month period last year. 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 $0.21 per share, based on 6,872,879 average diluted shares outstanding for the three month period. For the twelve months ended December 31, 2005, the Company reported record net income of $12,115,530, or $1.95 per share on 6,228,043 undiluted shares versus net loss of $10,857,775 or $1.86 per share on 5,847,102 undiluted shares in the same twelve month period last year. On a diluted share basis, the Company reported record earnings of $1.83 per share, based on 6,628,076 average diluted shares outstanding for the twelve month period. Both of these results exceeded revised Company guidance of $1.80-1.82 per share. Gross premiums written When a non-life insurance company closes a contract to provide insurance against loss, the revenues (premiums) expected to be received over the life of the contract are called gross premiums written. increased $5.9 million or 22.0% to $32.6 million for the three months ended December 31, 2005, as compared to $26.7 million for the same three month period last year. Gross premiums written increased $18.7 million or 18.7% to $119.4 million for the twelve months ended December 31, 2005, as compared to $100.7 million for the same twelve month period last year. Net premiums earned increased $4.0 million or 22.8% to $21.5 million for the three months ended December 31, 2005 as compared to $17.5 million for the same three month period last year. Net Premiums earned increased $16.7 million or 25.2% to $83.0 million for the twelve months ended December 31, 2005 as compared to $66.2 million for the same twelve month period last year. Total revenues increased $4.5 million or 21.7% to $25.1 million for the three months ended December 31, 2005, as compared to $20.6 million for the same three-month period last year. Total revenues increased $23.6 million or 33.0% to $95.3 million for the twelve months ended December 31, 2005, as compared to $76.6 million for the same twelve 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
KATRINA Krewe Aiding Trash Removal In the New Orleans Area , and Wilma). We believe that the 2006 hurricane season Hurricane season refers to a period in a year when hurricanes usually form. For more information see: Tropical cyclone#Times of formation. For a lists of past seasons, see:
Mr. Lawson continued, "For the first two months of 2006, net written premiums, in both general liability and property, are up between 30%-40% above last year's levels and we expect this trend to continue for the balance of this year and into next year. Guidance for our first quarter ending March 31, 2006 is for the Company to earn $0.80 per share. The Company will be reporting its first quarter results at the end of April. In conclusion, we consider last year to have been a very good year and we expect this year and next to be even better." The Company will hold an investor conference call at 4:30 PM (ET) today, March 6, 2006. Mr. Lawson and Mr. J. Gordon Jennings 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 5818765. 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 Dec 31, Twelve Months Ended Dec 31,
Revenue: 2005 2004 2005 2004
------------ ------------ ------------ ------------
Gross premiums
written $ 32,625,110 $ 26,732,454 $119,440,297 $100,662,025
Gross premiums
ceded (19,271,029) (9,936,1912) (31,413,815) (15,485,917)
------------ ------------ ------------ ------------
Net premiums
written 13,354,081 16,796,262 88,026,482 85,176,108
------------ ------------ ------------ ------------
Increase
(Decrease) in
prepaid
reinsurance
premiums 12,060,987 2,430,205 6,623,354 (2,904,716)
(Increase) in
unearned
premiums (3,877,832) (1,687,785) (11,686,340) (16,030,048)
------------ ------------ ------------ ------------
Net change in
prepaid
reinsurance
premiums
and unearned
premiums 8,183,155 742,420 (5,062,986) (18,934,764)
------------ ------------ ------------ ------------
Net premiums
earned 21,537,236 17,538,682 82,963,496 66,241,344
Finance revenue 716,881 843,269 3,566,870 3,667,837
Managing general
agent fees 608,441 551,378 2,420,017 2,039,783
Net investment
income 1,065,056 1,029,934 3,841,154 3,171,620
Net realized
investment
gains 173,273 427,290 458,306 688,676
Other income 988,451 222,864 2,007,225 762,164
------------ ------------ ------------ ------------
Total revenue 25,089,338 20,613,417 95,257,068 76,571,424
------------ ------------ ------------ ------------
Expenses:
Loss and loss
adjustment
expenses 15,841,968 18,607,233 48,336,430 74,992,781
Operating and
underwriting
expenses 3,427,763 2,323,353 8,824,324 8,139,812
Salaries and
wages 1,624,665 1,742,862 6,384,082 6,134,168
Interest expense 273,746 455,670 1,397,639 1,087,494
Policy
acquisition
costs, net of
amortization 3,575,120 3,776,902 14,543,841 8,422,808
------------ ------------ ------------ ------------
Total
expenses 24,743,262 26,906,020 79,486,316 98,777,063
Income (loss)
from cont'd
ops before
provision
(benefit) for
inc tax exp 346,076 (6,292,603) 15,770,752 (22,205,639)
Provision
(benefit) for
income tax
expense (1,072,915) (2,923,519) 4,689,826 (8,600,911)
------------ ------------ ------------ ------------
Net income
(loss) from
continuing
operations 1,418,991 (3,369,084) 11,080,926 (13,604,728)
Discontinued
operations:
Income from
discontinued
operations
(including
gain on
disposal of
$5,384,050,
$1,630,000
and $5,384,050,
respectively) -- 4,657,434 1,630,000 4,483,577
Provision for
income tax
expense -- 1,798,652 595,396 1,736,624
------------ ------------ ------------ ------------
Income from
discontinued
operations -- 2,858,782 1,034,604 2,746,953
------------ ------------ ------------ ------------
Net income
(loss) $ 1,418,991 $ (510,302) $ 12,115,530 $(10,857,775)
============ ============ ============ ============
Basic net income
(loss) per share
from continuing
operations $ 0.22 $ (0.56) $ 1.78 $ (2.33)
------------ ------------ ------------ ------------
Basic net income
per share from
discontinued
operations $ -- $ 0.47 $ 0.17 $ 0.47
------------ ------------ ------------ ------------
Basic net income
(loss) per
share $ 0.22 $ (0.08) $ 1.95 $ (1.86)
============ ============ ============ ============
Fully diluted net
income (loss)
per share from
continuing
operations $ 0.21 $ (0.56) $ 1.67 $ (2.33)
------------ ------------ ------------ ------------
Fully diluted net
income per
share from
discontinued
operations $ -- $ 0.47 $ 0.16 $ 0.47
------------ ------------ ------------ ------------
Fully diluted net
income (loss)
per share $ 0.21 $ (0.08) $ 1.83 $ (1.86)
============ ============ ============ ============
Weighted average
number of
common shares
outstanding 6,502,350 6,024,693 6,228,043 5,847,102
============ ============ ============ ============
Weighted average
number of
common shares
outstanding
(assuming
dilution) 6,872,879 6,268,876 6,628,076 6,211,625
============ ============ ============ ============
Dividends
declared per
share $ 0.08 $ 0.08 $ 0.32 $ 0.32
============ ============ ============ ============
21st CENTURY HOLDING COMPANY
Balance Sheet Data
(Unaudited)
Period Ending
12/31/05 12/31/04
------------- -------------
Total Cash & Investments $106,157,869 $90,509,879
Total Assets $290,158,386 $163,601,372
Unpaid Loss and Loss Adjustment Expense $154,049,490 $46,570,679
Total Liabilities $249,391,016 $138,624,637
Total Shareholders' Equity $40,767,370 $24,976,735
Common Stock Outstanding 6,771,864 6,047,942
Book Value Per Share $6.02 $4.13
Premium Breakout
----------------
12 Months Ending
Line of Business 12/31/05 12/31/04
---------------- ------------ ------------
Automobile 17.3% 24.1%
Homeowners' 63.4% 62.0%
General Liability 18.9% 12.4%
Mobile Home Owners 0.4% 1.5%
------------ ------------
Gross Written Premiums 100.0% 100.0%
============ ============
Loss Ratios
-----------
3 Months Ending 12 Months Ending
Line of Business 12/31/05 12/31/04 12/31/05 12/31/04
---------------- ------------ ------------ ------------ ------------
Automobile 123.7% 18.9% 74.9% 73.2%
Homeowners' 237.9% 371.5% 65.4% 163.5%
General Liability 24.7% 21.5% 19.1% 18.7%
All Lines 160.4% 142.0% 58.3% 113.2%
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