21st Century Holding Company Reports Second Quarter Results with Earnings of $0.48 Per Share and Reaffirms Guidance.LAUDERDALE Lauderdale is the name of various places:
For the three months ended June 30, 2005, the Company reported net income of $3,023,541, or $0.48 per share on 6,349,182 undiluted shares, versus net income of $3,674,778 or $0.63 per share on 5,794,893 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 $0.46 per share, based on 6,620,510 average diluted shares outstanding for the three month period. For the six months ended June 30, 2005, the Company reported net income of $8,843,821, or $1.43 per share on 6,171,134 undiluted shares versus net income of $6,598,786 or $1.15 per share on 5,718,104 undiluted shares in the same six month period last year. On a diluted share basis, the Company reported earnings of $1.35 per share, based on 6,550,789 average diluted shares outstanding for the six month period. Net premiums earned increased $5.7 million or 34.8% to $21.9 million for the three months ended June 30, 2005, as compared to $16.2 million for the same three-month period last year. Net premium earned increased $12.2 million or 43.0% to $40.7 million for the six months ended June 30, 2005, as compared to $28.5 million for the same six month period last year. Total revenues increased $5.9 million or 32.0% to $24.6 million for the three months ended June 30, 2005, as compared to $18.7 million for the same three-month period last year. Total revenues increased $13.1 million or 39.4% to $46.5 million for the six months ended June 30, 2005, as compared to $33.4 million for the same six month period last year. Loss and loss adjustment expenses increased by $4.7 million, or 61.6%, to $12.3 million for the three months ended June 30, 2005, as compared to $7.6 million for the same three month period last year. Loss and loss adjustment expenses increased by $5.1 million, or 36.4%, to $19.2 million for the six months ended June 30, 2005, as compared to $14.1 million for the same six month period last year. The loss and loss adjustment expense increase for both the three months and six months ended June 30, 2005 can be primarily attributed to loss development from the four hurricanes that occurred in August and September September: see month. of 2004. For the 2005-2006 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:
(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 will insure Insure can mean:
tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. premium, will provide an
automatic reinstatement ReinstatementThe restoration of an insurance policy after it has lapsed for nonpayment of premiums. of another $212.0 million of loss and loss adjustment expense for a second occurrence, with the Company retaining the first $3.0 million. Unused coverage from the first two events carries forward to events beyond the second, in conjunction with a lowered attachment point as afforded by the Florida Florida, state, United States 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 Hurricane Catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). Fund. Edward J. (Ted) Lawson, President and Chairman of the Board, said, "I am pleased with our earned premium Earned premium is the portion of an insurance written premium which is considered "earned" by the insurer, based on the part of the policy period that the insurance has been in effect, and during which the insurer has been exposed to loss. and revenue growth to date. I expect these trends to continue through the balance of this year and next. We've now earned $1.43 per share through the first half of this year; therefore, our yearly guidance of $2.75 to $2.80 per share is hereby reaffirmed." The Company will hold an investor conference call at 4:30 PM (ET) today, August 3, 2005. Mr. Lawson, Mr. Richard A. Widdicombe, 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. , 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, Widdicombe and Jennings invite interested parties to participate in the conference call. Listeners can access the conference call by dialing toll free 888-460-6235. 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. , 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, as well as homeowners' coverage in the State of Louisiana. 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. and 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. 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 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: 2005 2004 2005 2004
------------ ------------ ------------ ------------
Gross premiums
written $31,362,908 $31,810,045 $61,459,952 $49,627,771
Gross premiums
ceded (2,053,152) (473,333) (4,954,443) (560,183)
------------ ------------ ------------ ------------
Net premiums
written 29,309,756 31,336,712 56,505,509 49,067,588
Decrease in
prepaid
reinsurance
premiums (2,835,083) (2,327,592) (5,510,378) (6,095,744)
(Increase) in
unearned
premiums (4,585,523) (12,770,311) (10,271,083) (14,499,217)
------------ ------------ ------------ ------------
Net change in
prepaid
reinsurance
premiums and
unearned
premiums (7,420,606) (15,097,903) (15,781,461) (20,594,961)
------------ ------------ ------------ ------------
Net premiums
earned 21,889,150 16,238,809 40,724,048 28,472,627
Finance revenue 937,681 949,164 2,042,211 2,039,984
Managing general
agent fees 620,378 539,822 1,252,693 987,180
Net investment
income 910,925 773,921 1,803,796 1,302,045
Net realized
investment gains 125,510 58,508 285,033 180,427
Other income 161,913 115,569 404,381 390,705
------------ ------------ ------------ ------------
Total revenue 24,645,557 18,675,793 46,512,162 33,372,968
------------ ------------ ------------ ------------
Expenses:
Loss and loss
adjustment
expenses 12,308,775 7,618,159 19,218,772 14,092,992
Operating and
underwriting
expenses 2,206,281 1,968,291 3,788,812 3,916,863
Salaries and
wages 1,580,120 1,345,058 3,158,701 2,768,171
Interest expense 379,787 213,841 809,931 444,922
Policy
acquisition
costs, net of
amortization 3,222,441 1,682,440 7,048,042 2,124,168
------------ ------------ ------------ ------------
Total expenses 19,697,404 12,827,789 34,024,258 23,347,116
------------ ------------ ------------ ------------
Income before
provision for
income tax expense 4,948,153 5,848,004 12,487,904 10,025,852
Provision for
income tax expense 1,924,612 2,113,049 4,678,687 3,659,866
------------ ------------ ------------ ------------
Net income from
continuing
operations $3,023,541 $3,734,955 $7,809,217 $6,365,986
------------ ------------ ------------ ------------
Discontinued
operations:
Income from
discontinued
operations
(including gain
on disposal of
$1,630,000 and
$0,
respectively) -- (98,583) 1,630,000 366,639
Provision for
income tax expense -- (38,406) 595,396 133,839
------------ ------------ ------------ ------------
Income on
discontinued
operations -- (60,177) 1,034,604 232,800
------------ ------------ ------------ ------------
Net income $3,023,541 $3,674,778 $8,843,821 $6,598,786
============ ============ ============ ============
Basic net income
per share from
continuing
operations $0.48 $0.64 $1.27 $1.11
Basic net income
per share from
discontinued
operations $-- $(0.01) $0.16 $0.04
------------ ------------ ------------ ------------
Basic net income
per share $0.48 $0.63 $1.43 $1.15
============ ============ ============ ============
Fully diluted net
income per share
from continuing
operations $0.46 $0.61 $1.19 $1.05
Fully diluted net
income per share
from discontinued
operations $-- $(0.01) $0.16 $0.03
------------ ------------ ------------ ------------
Fully diluted net
income per share $0.46 $0.60 $1.35 $1.08
============ ============ ============ ============
Weighted average
number of common
shares outstanding 6,349,182 5,794,893 6,171,134 5,718,104
============ ============ ============ ============
Weighted average
number of common
shares outstanding
(assuming
dilution) 6,620,510 6,083,916 6,550,789 6,088,098
============ ============ ============ ============
Dividends declared
per share $0.08 $0.08 $0.08 $0.08
============ ============ ============ ============
21st CENTURY HOLDING COMPANY
Balance Sheet Data
(Unaudited)
Period Ending
06/30/05 12/31/04
-------- --------
Total Cash & Investments $102,641,735 $90,509,879
Total Assets $162,308,858 $163,601,372
Unpaid Loss and Loss Adjustment Expense $26,025,816 $46,570,679
Total Liabilities $126,790,559 $138,624,637
Total Shareholders' Equity $35,518,299 $24,976,735
Premium Breakout
----------------
Line of Business 06/30/05 06/30/04
---------------- -------- --------
Automobile 20.9% 23.7%
Homeowners' 59.8% 61.7%
General Liability 18.8% 12.8%
Mobile Home Owners 0.5% 1.8%
----- -----
Gross Written Premiums 100.0% 100.0%
Loss Ratios
-----------
3 Months Ending 6 Months Ending
Line of Business 06/30/05 06/30/04 06/30/05 06/30/04
---------------- -------- -------- -------- --------
Automobile 72.67% 78.73% 63.26% 79.47%
Homeowners' 83.40% 25.88% 47.07% 25.32%
General Liability 20.79% 25.45% 23.04% 22.80%
------ ------ ------ ------
All Lines 66.92% 45.00% 47.19% 47.08%
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