21st Century Holding Company Reports Year-End Results and Raises Forward Guidance.PLANTATION Plantation, city (1990 pop. 66,692), Broward co., SE Fla., a residential suburb of Fort Lauderdale; inc. 1953. The city has grown rapidly along with the development of S Florida. , Fla. -- 21st Century Holding Company (Nasdaq:TCHC TCHC Tri-City Homeless Coalition (Fremont, CA) ), today reported results for the year ended December December: see month. 31, 2004 (see attached tables). For the three months ended December 31, 2004, the Company reported a net loss of $510,302, or $0.08 per share on 6,025,593 undiluted or 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. shares, versus net income of $1,951,710 or $0.38 per share on 5,186,108 undiluted shares, or $0.35 per share on 5,562,467 diluted shares in the same three-month period last year. For the twelve months ended December 31, 2004, the Company reported a net loss of $10,857,774, or $1.86 per share on 5,847,327 undiluted or diluted shares, versus net income of $8,364,875 or $1.76 per share on 4,756,973 undiluted shares, or $1.67 per share on 5,022,938 diluted shares in the same twelve-month period last year. The net loss was due to the four hurricanes that hit 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 during the third quarter. During the three months ended December 31, 2004, the net loss consisted primarily of approximately $10.5 million of an approximate total of $43.6 million incurred for the year as a result of hurricane claims paid and reserved, net of 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. recoveries. Without the effects of the four hurricanes and the sale of our agencies and franchise operations, net income for the year ending December 31, 2004 would have been approximately $12.4 million. Net premiums earned increased $5.9 million or 50.1% to $17.5 million for the three months ended December 31, 2004, as compared to $11.6 million for the same three-month period last year. Net premiums earned increased $23.9 million or 56.5% to $66.2 million for the twelve months ended December 31, 2004, as compared to $42.3 million for the same twelve-month period last year. Total revenues increased $6.2 million or 42.8% to $20.6 million for the three months ended December 31, 2004, as compared to $14.5 million for the same three-month period last year. Total revenues increased $23.0 million or 42.9% to $76.6 million for the twelve months ended December 31, 2004, as compared to $53.6 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
tr.v. dev·as·tat·ed, dev·as·tat·ing, dev·as·tates 1. To lay waste; destroy. 2. To overwhelm; confound; stun: was devastated by the rude remark. hurricanes hitting us last year was a compression of earnings in 2004 which has now been reported and is behind us. Going forward it is our belief that there will now be an equal and opposite reaction. We are now forecasting an acceleration of earnings much greater than would have been expected had this event not happened. This will come about due to rate increases, better selection of risk, better catastrophic risk modeling, and a greater diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. of profitable lines of business in other states. These results will start to become apparent when we report our first quarter numbers ending March 31st, in about four weeks. Forward guidance is now being increased from $0.65 per share in our first quarter to $0.70-$0.75 per share and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. guidance is also being increased from $2.67 per share to $2.75-$2.80 per share. Both of these results will be records for the company." Mr. Lawson continued, "In closing, both myself and our management team strongly believe that we are now on the path for substantial revenue and profitability growth for the company in 2005 and for many more years to come." The Company will hold an investor conference call at 4:30 PM (ET) today, March 23, 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 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 Twelve Months Ended
December 31, December 31,
Revenue: 2004 2003 2004 2003
----------- ----------- ------------ ------------
Gross premiums
written $26,732,455 $16,431,631 $100,662,025 $72,991,434
Gross premiums
ceded (9,936,191) (3,667,440) (15,485,917)(22,090,644)
----------- ----------- ------------ ------------
Net premiums
written 16,796,264 12,764,191 85,176,108 50,900,790
Decrease in
prepaid
reinsurance
premiums 2,430,205 (877,198) (2,904,716) (3,427,818)
Decrease
(increase) in
unearned premiums (1,687,785) (266,205) (16,030,048) (5,188,177)
----------- ----------- ------------ ------------
Net change in
prepaid
reinsurance
premiums
and unearned
premiums 742,420 (1,143,403) (18,934,764) (8,615,995)
----------- ----------- ------------ ------------
Net premiums
earned 17,538,684 11,620,788 66,241,344 42,284,795
Finance revenue 843,269 1,080,002 3,667,837 4,327,675
Managing general
agent fees 551,377 434,122 2,039,783 2,328,681
Net investment
income 1,029,934 395,031 3,171,620 1,624,216
Net realized
investment
gains (losses) 427,290 777,867 688,676 2,231,333
Other income 222,866 142,612 762,164 791,718
----------- ----------- ------------ ------------
Total revenue 20,613,420 14,450,422 76,571,424 53,588,418
----------- ----------- ------------ ------------
Expenses:
Loss and loss
adjustment
expenses 18,607,233 6,905,242 74,992,781 27,508,979
Operating and
underwriting
expenses 2,323,355 2,826,629 8,139,812 7,249,440
Salaries and wages 1,742,864 1,506,597 6,134,168 5,425,538
Interest expense 455,670 319,560 1,087,494 606,910
Policy acquisition
costs, net of
amortization 3,776,902 60,134 8,422,808 (854,279)
----------- ----------- ------------ ------------
Total expenses 26,906,024 11,618,162 98,777,063 39,936,588
----------- ----------- ------------ ------------
Income before provision
for income tax
expense (6,292,604) 2,832,260 (22,205,639) 13,651,830
Provision (benefit)
for income tax
expense (4,328,814) 584,024 (8,600,911) (4,357,961)
----------- ----------- ------------ ------------
Net income (loss)
from continuing
operations $(1,963,790) $2,248,236 $(13,604,728) $9,293,869
----------- ----------- ------------ ------------
Discontinued operations:
Income (loss) from
discontinued
operations
(including gain on
disposal of
$5,384,050) 4,657,435 (373,554) 4,483,577 (1,364,605)
Provision (benefit)
for income tax
expense 3,203,947 (77,028) 1,736,624 435,611
----------- ----------- ------------ ------------
Income (loss) on
discontinued
operations 1,453,488 (296,526) 2,746,953 (928,994)
----------- ----------- ------------ ------------
Net income (loss) $(510,302) $1,951,710 $(10,857,774) $8,364,875
=========== =========== ============ ============
Basic net income
(loss) per share from
continuing operations $(0.32) $0.44 $(2.34) $1.96
----------- ----------- ------------ ------------
Basic net income
(loss) per share from
discontinued operations $0.24 $(0.06) $0.47 $(0.20)
----------- ----------- ------------ ------------
Basic net income
(loss) per share $(0.08) $0.38 $(1.86) $1.76
=========== =========== ============ ============
Fully diluted net
income (loss) per
share from
continuing operations $(0.32) $0.40 $(2.34) $1.85
----------- ----------- ------------ ------------
Fully diluted net
income (loss) per
share from
discontinued operations $0.24 $(0.05) $0.47 $(0.18)
----------- ----------- ------------ ------------
Fully diluted net
income (loss) per
share $(0.08) $0.35 $(1.86) $1.67
=========== =========== ============ ============
Weighted average number
of common shares
outstanding 6,025,593 5,186,108 5,847,327 4,756,973
=========== =========== ============ ============
Weighted average number
of common shares
outstanding (assuming
dilution) 6,025,593 5,562,467 5,847,327 5,022,938
=========== =========== ============ ============
Dividends declared per
share $0.08 $0.08 $0.32 $0.25
=========== =========== ============ ============
21st CENTURY HOLDING COMPANY
Balance Sheet Data
(Unaudited)
Period Ending
12/31/04 12/31/03
------------ ------------
Total Cash & Investments $90,509,879 $54,060,589
Total Assets $163,601,372 $106,695,593
Unpaid Loss and Loss Adjustment Expense $46,570,679 $24,570,198
Total Liabilities $138,624,637 $74,649,217
Total Shareholders' Equity $24,976,735 $32,046,376
Premium Breakout
----------------
Line of Business 12/31/04 12/31/03
---------------- -------- --------
Automobile 24.1% 67.5%
Homeowners 62.0% 23.0%
General Liability 12.4% 7.1%
Mobile Home Owners 1.5% 2.4%
-------- --------
Gross Written Premiums 100.0% 100.0%
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion