21st Century Holding Company Reports Record Third-Quarter Results.Business Editors PLANTATION, Fla.--(BUSINESS WIRE)--Oct. 30, 2002 21st Century Holding Company (Nasdaq:TCHC TCHC Tri-City Homeless Coalition (Fremont, CA) ), a vertically integrated 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. holding company, today reported record earnings of $1,746,730 or $0.58 per share on 2,994,734 average shares outstanding in its fiscal quarter ending September 30, 2002 on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis. These results beat the Company's guidance of $0.50 by $0.08 per share. Included in the third quarter is an additional write-down of the Company's investment in WorldCom bonds of $500,000 or ($0.17) per share. This is in addition to the $1,500,000 write-down of the bonds in the second quarter. Net income for the quarter before the WorldCom bond write-down was $2,246,730 or $0.75 per share. This compares to a net loss, after an extraordinary gain, of ($148,882) or ($0.05) per share in the same quarter in 2001. The net loss before the extraordinary gain in 2001 was ($1,334,777) or ($0.43) per share. President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of 21st Century Holding Company, Edward J. Lawson, said, "I am very pleased with our results for the third quarter. As predicted, we had another solid quarter created by favorable insurance trends and growth in our franchising, claims adjusting, financing and managing general agency companies. Going forward we expect more of the same." An investor conference call will be held at 4:30 PM (EST EST electroshock therapy. EST abbr. electroshock therapy ) on October 30, 2002 to discuss the financial results and review the outlook of the Company. Listeners can access the conference call by dialing 973-582-2751. 21st Century Holding Company manages its 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 through its subsidiaries. - The Company's wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Federated Connected and treated as one. See federated database and federated directories. National Insurance Company and American Vehicle Insurance Company, 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. standard and non-standard personal automobile insurance in the state of Florida. Federated National also has authority to underwrite 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's wholly owned managing general agent, Assurance Managing General Agents, Inc., has underwriting authority for Federated National, American Vehicle, and third-party insurance companies. - The Company's wholly owned claims adjusting company, Superior Adjusting, Inc., processes claims made by the insureds of Federated National, American Vehicle, and third party insurance companies which contract with Superior. - Federated Premium Finance, Inc., another wholly owned subsidiary, offers premium financing Premium Financing involves the lending of funds to a person or company to cover the cost of an insurance premium. Premium finance loans are often provided by third party finance entity known as a "Premium Financing Company"; however insurance companies and brokerages occasionally to insureds of Federated National and American Vehicle, as well as to third party insureds. - Express Tax Service, Inc., an 80% owned subsidiary, licenses its tax preparation software products to retail tax preparers nationwide. - EXPRESSTAX(R) Franchise Corporation, a wholly owned franchiser subsidiary of Express Tax Service, Inc., offers franchise opportunities to individuals to own and operate their own business under the name and support of EXPRESSTAX(R). - The Company offers other ancillary services including electronic income tax filing, tax preparation and tag & title transfer services through Federated Agency Group, Inc., also a wholly owned subsidiary. - Fed USA, Inc., a wholly owned franchiser company, offers single and master franchise opportunities to individuals to own and operate their own business under the name and support of Fed USA Insurance / Financial Services. 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. statement 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 of the foregoing, words such as "may", "will", "expect", "believe", "anticipate", "intend", "could", "would", "estimate", or "continue" or the negative other 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 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 For the
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Three Months Ended, Nine Months Ended,
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9/30/02 9/30/01 9/30/02 9/30/01
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Total Revenue $11,831,594 $8,673,964 $29,955,447 $26,385,144
Net Realized
Investment
Gains (Losses) 3,223 (1,134,846) (1,456,513) (3,017,888)
Income (Loss)
Before Taxes &
Extraordinary Gain 2,793,448 (1,322,644) 5,261,076 (2,979,519)
Income Tax Expense
Benefit 1,046,718 12,133 2,490,934 (653,817)
Net Income (Loss)
Before
Extraordinary Gain 1,746,730 (1,334,777) 2,770,141 (2,325,702)
Extraordinary Gain -- 1,185,895 -- 1,185,895
Net Income (Loss)
After Extraordinary
Gain 1,746,730 (148,882) 2,770,141 (1,139,807)
Net Income (Loss)
Per Share Before
Extraordinary Gain 0.58 (0.43) 0.92 (0.73)
Extraordinary Gain
Per Share -- 0.38 -- 0.37
Net Income (Loss) Per
Share After
Extraordinary Gain 0.58 (0.05) 0.92 (0.36)
Weighted Average
Shares Outstanding 2,994,734 3,114,634 3,012,457 3,193,920
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