American Country Holdings Inc. Reports Fourth Quarter and Year-end, 2001 Results.Business Editors CHICAGO--(BUSINESS WIRE)--March 27, 2002 American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Country Holdings Inc. (Nasdaq:ACHI ACHI Arkansas Center for Health Improvement ACHI International Conference on Advances in Computer-Human Interaction ) ("Company") today reported net income of $2.24 million, equal to $0.20 per 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, for its fourth quarter ended December December: see month. 31, 2001. The company reported a loss of $2.28 million equal to $0.27 per diluted share, for its fourth quarter ended December 31, 2000. The current quarter net income includes a tax benefit of $1.1 million, or $0.11 per diluted share. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , which excludes interest and taxes, amounted to $1.23 million for the current quarter, compared with a loss of $3.84 million for the corresponding prior year period. Total revenues for the 2001 fourth quarter increased 11.8% to $18.8 million from $16.8 million a year ago. Total net premiums earned increased 14.0% to $16.5 million from $14.4 million for the fourth quarter of 2000. In the fourth quarter, net earned premiums 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. for American Country's core business, its transportation insurance lines, increased 4.0% to $13.1 million from $12.6 million last year. Net premiums earned for the commercial lines, including hospitality lines, increased to $3.4 million, compared with $1.9 million a year ago. The company's loss ratio for the quarter was 72.5%, compared with 113.6% a year ago. The expense ratio for the quarter was 34.4%, compared with 29.6% in 2000. These factors resulted in a decrease in the combined ratio for the 2001 fourth quarter to 106.9% from 143.2% last year. The net loss for 2001 amounted to $11.3 million, equal to $1.26 per share, compared with a loss of $2.35 million, equal to $.29 per share, a year ago. The operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. was $16.2 million versus $3.5 million for the corresponding prior year. Revenues for the period declined 5.5% to $76.4 million from $80.8 million in the prior year. Net premiums earned decreased 6.6% to $67.5 million from $72.3 million for the comparable period in 2000. Net premiums earned for the Company's transportation and commercial lines business were $51.7 million and $15.8 million, respectively, for the current full-year period, compared with $50.0 million and $22.3 million last year. The loss ratio for the year was 112.7% versus 94.5% a year earlier. The expense ratio was 24.5% for the year, compared with 22.1% for the comparable period in 2000. The combined ratio for 2001 was 137.2% versus 116.6% last year. John A. Dore Do·ré , (Paul) Gustave 1832-1883. French artist best known for his imaginative drawings and lithographs in editions of Balzac's Droll Stories (1856) and Cervantes's Don Quixote (1863). , chairman, president and chief executive officer, said "American Country was pleased with the fourth quarter, after taking a $15 million reserve addition in the third quarter. The restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of American Country's business, which began in 2000, was beginning to be realized in the fourth quarter. As we have discussed in prior press releases, Kingsway 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. Inc. (NYSE NYSE See: New York Stock Exchange : KFS KFS Klippel-Feil Syndrome KFS Key Factor for Success KFS Knife, Fork, Spoon (piece of military kit carried on web belt) KFS Keane Federal Systems, Inc. KFS Kaiser-Friedrich-Straße ) has made a tender offer for all the outstanding shares of the common stock, convertible preferred and Class A warrants (the tender offer does not include the publically traded warrants, listed as ACHIW). The board of directors has recommended that shareholders of the common stock of American Country tender their shares." American Country Holdings Inc. is the holding company for American Country Insurance Company, American Country Financial Services Corp., American Country Professional Services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. Corp and American Country 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. Agency. American Country Insurance is a leading insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. of taxicabs and limousines, ranking as the second largest commercial auto writer in the State of Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. . American Country Insurance also offers commercial lines coverage for contractors and restaurants. American Country Financial Services operates as a premium finance company. American Country Professional Services operates as a finance company, providing collateralized loans to certain of the Company's larger customers, and is licensed as a third-party claims administrator. American Country Underwriting Agency Inc. is licensed as a managing general underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. . This news release contains 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 based upon the company's expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Such expectations include, but are not limited to, the company's ability to retain its current insureds, reduce its exposure to certain business lines and expand others, along with future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately, and many of which are beyond the company's control.
For the Three For the Twelve
Months ended Months ended
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December 31, December 31,
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2001 2000 2001 2000
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REVENUES:
Premiums earned $16,456 $14,434 $67,496 $72,262
Net investment income 1,982 2,282 8,481 8,522
Net realized gains (losses)
on investments 381 125 311 (194)
Other income (1) (5) 108 217
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Total revenues 18,818 16,836 76,396 80,807
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LOSSES AND EXPENSES:
Losses and loss adjustment
expenses 11,934 16,403 76,037 68,317
Amortization of deferred
policy acquisition costs 3,707 1,956 12,548 10,932
Administrative and general
expenses 1,949 2,321 3,980 5,055
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Total expenses 17,590 20,680 92,565 84,304
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Operating income 1,228 (3,844) (16,169) (3,497)
Interest expense 86 206 538 823
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Income before taxes 1,142 (4,050) (16,707) (4,320)
Provision for taxes (1,098) (1,772) (5,382) (1,970)
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Net Income $2,240 ($2,278) ($11,325) ($2,350)
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Preferred Dividends ($45) ($60) ($213) ($60)
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Net income available to
common shareholders $2,195 ($2,338) ($11,538) ($2,410)
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Basic earnings per share $0.23 ($0.28) ($1.26) ($0.29)
Diluted earnings per share $0.20 ($0.27) ($1.26) ($0.29)
Average common and common
equivalent shares
outstanding - Basic 9,611,384 8,201,096 9,158,983 8,087,471
Average common and common
equivalent shares
outstanding
- Diluted 11,354,241 8,548,685 9,158,983 8,176,150
Ratios:
Loss Ratio 72.5% 113.6% 112.7% 94.5%
Expense Ratio 34.4% 29.6% 24.5% 22.1%
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Total combined 106.9% 143.2% 137.2% 116.6%
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