21st Century Holding Company Reports Third Quarter Results & Reiterates Guidance.LAUDERDALE LAKES, Fla. -- The Net investment income on the Consolidated Statements of Operations (Unaudited), for the Three Months Ended September 30, 2006, should read 1,572,606 (sted 1,572,606 283). The corrected Consolidated Statements of Operations is included in the corrected version of the release below. The corrected release reads: 21(ST) CENTURY HOLDING COMPANY REPORTS THIRD QUARTER RESULTS & REITERATES GUIDANCE 21st Century Holding Company (Nasdaq:TCHC TCHC Tri-City Homeless Coalition (Fremont, CA) ), today reported results for the quarter ended September 30, 2007 (see attached tables). For the three months ended September 30, 2007, the Company reported net income of $1,868,802, or $0.24 per share on 7,891,650 average undiluted shares outstanding, as compared to net income of $3,029,285, or $0.40 per share on 7,560,872 average undiluted shares outstanding 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 $0.24 per share, based on 7,948,385 average diluted shares outstanding for the same three month period, as compared to $0.40 per share on 7,562,563 average diluted shares outstanding for the three months ended September 30, 2006. The third quarter was impacted by a $2.8 million assessment which was imposed on the Company by the Florida Insurance Guarantee Association ("FIGA FIGA Florida Insurance Guaranty Association FIGA Fretted Instrument Guild of America FIGA Federazione Italiana Giovani Agricoltori (Young Farmers' Italian Association) FIGA Fans Italiani Gnocca Amica (Italian) "). This assessment centers on the Company's statutory requirement to participate in funding for the insolvency insolvency Condition in which liabilities exceed assets so that creditors cannot be paid. It is a financial condition that often precedes bankruptcy. In the context of equity, insolvency is the inability to pay debts as they become due; insolvency under the balance-sheet of other property and casualty insurance carriers that operated within the state of Florida. Upon regulatory approval, this assessment will be fully recouped by the Company through policy surcharges over an anticipated twelve-month period and reflected in the results of operations accordingly. Excluding this charge, the Company's earnings would have been $0.22 per share greater. For the nine months ended September 30, 2007, the Company reported net income of $13,190,036, or $1.66 per share on 7,927,366 undiluted shares versus net income of $17,947,156 or $2.41 per share on 7,433,953 undiluted shares in the same nine month period last year. On a diluted share basis, the Company reported earnings of $1.64 per share, based on 8,050,983 average diluted shares outstanding for the same nine month period, as compared to $2.27 per share based on 7,912,077 average diluted shares outstanding for the nine months ended September 30, 2006. Net premiums earned increased $5.5 million or 25.2% to $27.2 million for the three months ended September 30, 2007, as compared to $21.7 million for the same three-month period last year. Net premium earned increased $2.1 million or 2.9% to $74.4 million for the nine months ended September 30, 2007, as compared to $72.3 million for the same nine month period last year. Total revenues increased $4.8 million or 19.4% to $29.6 million for the three months ended September 30, 2007, as compared to $24.8 million for the same three-month period last year. Total revenues increased $7.4 million or 9.0% to $89.6 million for the nine months ended September 30, 2007, as compared to $82.2 million for the same nine month period last year. Edward J. (Ted) Lawson, Chief Executive Officer and Chairman, said, "Even with this charge to earnings, we believe our fourth quarter will be significantly more profitable and we are hereby reiterating guidance that the Company will report earnings of approximately $2.50 per share for calendar year 2007." Mr. Lawson continued, "The significant events that occurred in our third quarter are as follows: 1. The Company is now debt free for the first time in its history. 2. Surplus in both of the Company's insurance subsidiaries, American Vehicles Insurance Company and Federated Connected and treated as one. See federated database and federated directories. National Insurance Company, is at record levels. 3. The Company's subsidiary, American Vehicle Insurance Company, was approved to write commercial general liability business in California on an Excess & Surplus basis. This license will, over time, become a significant driver of future growth and earnings for the Company. 4. The Company's reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. costs continue to drop, with another drop in costs coming in our fourth quarter. 5. The Company increased its reserve levels at quarter end for both insurance subsidiaries." Mr. Lawson concluded saying, "Overall, I believe the Company had a solid third quarter and going forward we expect to report record earnings for the fourth quarter of approximately $0.80 per share." The Company will hold an investor conference call at 4:30 PM (ET) today, November 5, 2007. Mr. Lawson and Peter J. Prygelski, the Company's Chief Financial Officer, will discuss the financial results and review the outlook for the Company. Messrs. Lawson and Prygelski invite interested parties to participate in the conference call. Listeners can access the conference call by dialing toll free 888-460-6235, conference ID 21042064. 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 commercial general liability insurance, homeowners' property and casualty 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. and personal automobile 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 for more than 300 classes of business, including special events. The Company is approved to operate as a surplus lines/non-admitted carrier in the States of Georgia, Kentucky, Virginia, 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. , Missouri, Arkansas, Nevada, Maryland and California offering the same general liability products. The Company is licensed and has the facilities to market and 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. other insurance carriers' lines of business, as well as to process and adjust claims for third party insurance carriers. 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 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. Reported results may therefore appear to be volatile in certain accounting periods. 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