American Safety Insurance Group, Ltd. Reports Profit for Third Quarter.Business Editors HAMILTON Hamilton, city, Bermuda Hamilton, city (1990 est. pop. 3,100), capital of Bermuda, on Bermuda Island. It is a port at the head of Great Sound, a huge lagoon and deepwater harbor protected by coral reefs. , Bermuda--(BUSINESS WIRE)--Nov. 7, 2001 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 Safety Insurance Group, Ltd. (NYSE NYSE See: New York Stock Exchange :ASI ASI, n See Anxiety Sensitivity Index. ) today reported its results for the third quarter ended September September: see month. 30, 2001 and for the nine months ended September 30, 2001. Net operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before for the third quarter of 2001 increased to $792,748, or $.16 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 on 5.0 million average shares outstanding compared with earnings of $663,178, or $.12 per diluted share on 5.4 million average shares outstanding for the third quarter of 2000. Net earnings for the third quarter of 2001 increased to $978,753 or $.20 per diluted share, compared with earnings of $653,826, or $.12 per diluted share, for the third quarter of 2000. Total revenues for the third quarter of 2001 increased 92% to $20,068,403 compared with $10,459,678 for the same quarter of 2000. Net premiums earned for the third quarter of 2001 increased 84% to $14,339,135 over the same quarter of 2000. Sales of real estate for third quarter of 2001 were $3,180,705. For the nine months ended September 30, 2001, net operating earnings increased to $3,224,843, or $.65 per diluted share on 4.9 million average shares outstanding compared with a loss of $1,571,961, or $.28 per diluted share on 5.6 million average shares outstanding over the same period in 2000. Net earnings increased to $3,826,197, or $.77 per diluted share, compared with a loss of $1,787,024, or $.32 per diluted share for the same period in 2000. Total revenues increased 125% to $55,791,619 compared with $24,752,797 over the same period in 2000. Net premiums earned increased 163% to $44,745,150 over the same period in 2000. Sales of real estate for the nine months ended September 30, 2001 were $3,180,705. The book value of the Company increased 11% to $12.81 per share at September 30, 2001, as compared to $11.53 per share at December December: see month. 31, 2000. In connection with the development of the Harbour Village Golf & Yacht yacht: see motorboating; sailing. yacht Sail- or motor-driven vessel used for racing or recreation. The term is popularly applied to large recreational engine-powered boats; the sailboats known as yachts and used for racing are usually light and Club in Ponce Inlet, Florida Ponce Inlet is a town in Volusia County, Florida, United States. The population was 2,513 at the 2000 census. As of 2004, the population recorded by the U.S. Census Bureau is 3,178 [1]. , the certificate of occupancy A document issued by a local building or Zoning authority to the owner of premises attesting that the premises have been built and maintained according to the provisions of building or zoning ordinances, such as those that govern the number of fire exits or the safety of for the first building was received in September 2001, and as of September 30, 2001, twelve condominium condominium In modern property law, individual ownership of one dwelling unit within a multidwelling building. Unit owners have undivided ownership interest in the land and those portions of the building shared in common. units and six boat slips were closed. The certificate of occupancy on building 200 was received in October October: see month. 2001 and the closings for that building are progressing. The Company also expects to receive certificates of occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy for buildings 300 and 400 during the fourth quarter. Commenting on the results for the third quarter, Lloyd A. Fox, President and Chief Executive Officer said, "I am very pleased with our results for the third quarter, which continue to show increases in net premiums earned, total revenues and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. earnings. We are also pleased that condominium units at Harbour Village have begun closing, and we continue to expect that this project will provide significant value to our shareholders over the anticipated three to five year development period." A conference call to discuss third quarter of 2001 results is scheduled for Thursday Thursday: see week. , November November: see month. 8, at 11 a.m. E.S.T., which will be broadcast through the Investor Broadcast Network's Vcall website at http://www.vcall or the Company's website at http://www.americansafetygroup.com. American Safety Insurance Group, Ltd. is a specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. insurance and 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 which, through its subsidiaries, develops, underwrites, manages and markets primary casualty insurance and 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. programs in the alternative insurance market for environmental risks and other specialty risks, and provides a broad range of financial services and products to middle market businesses. The Company is also the owner/developer of the Harbour Village Golf & Yacht Club, a residential condominium, marina Marina “a piece of virtue.” [Br. Lit.: Pericles] See : Virtuousness , par 3 golf course and beach club in Ponce Inlet, Florida. Additional information about American Safety can be found at http://www.americansafetygroup.com. This press 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. . These forward-looking statements reflect the Company's current views with respect to future events and financial performance, including the Company's future profitability and the value of the Company's real estate development project. Forward-looking statements involve risks and uncertainties which may cause actual results to differ materially, and are subject to change based on various factors, including competitive conditions in the insurance industry, levels of new and renewal insurance business, unpredictable developments in loss trends, adequacy and changes in loss reserves, market acceptance of new coverages and enhancements, changes in reinsurance costs and availability, and changes in levels of general business activity and economic conditions. With respect to the development of the Harbour Village property, such forward looking statements involve risks and uncertainties which may cause actual results to differ materially, and are subject to change based on various real estate development industry factors, including competitive housing conditions housing conditions npl → condiciones fpl de habitabilidad housing conditions npl → conditions fpl de logement in the local market area, risks inherent in real estate development and new construction, increases in construction costs, construction delays, weather, 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. , changes in interest rates and the availability of mortgage financing for prospective purchasers of condominium units and boat slips, and changes in local and national levels of general business activity and economic conditions. For additional factors which could influence the results of the Company's operating and financial performance, see the Company's filings with the Securities and Exchange Commission.
Harbour Village Development Status
$(000)s except references to Condo Units and Boat Slips
Phase 1
-----------------------------------
Buildings
-----------------------------------
100 200 300 400 500
-----------------------------------
Status at 9/30/2001
----------------------------------
Planned Number of Condo Units and
Boat Slips 32 32 32 32 24
Condo Units and Boat Slips under
Contract 32 32 32 32 19
Value of Pre-sale Contracts (Note 1) 7,574 7,312 7,607 8,213 5,560
Building Foundation Completed Yes Yes Yes Yes Yes
Vertical Building Completed Yes Yes Yes Yes No
Interior Finish Completed Yes No No No No
Certificate of Occupancy Received Yes No No No No
Actual 9/20/2001 Quarter to Date
----------------------------------
Units Closed at 9/30/2001 QTD 12 - - - -
Revenue Recognized at 9/30/2001 QTD 2,667 - - - -
Gross Profit Recognized at
9/30/2001 QTD 272 - - - -
Total Fixed Costs at 9/30/2001 QTD
(Note 2)
Pre-Tax Profit at 9/30/2001 QTD
Projected 12/31/2001 Quarter to Date
----------------------------------
Projected Unit Closings at
12/31/2001 QTD 20 32 21 15
Projected Revenue Recognized at
12/31/2001 QTD 4,344 6,727 4,593 3,542
Projected Gross Profit at
12/31/2001 QTD 443 686 468 361
Projected Total Fixed Costs at
12/31/2001 QTD
Projected Pre-Tax Profit at
12/31/2001 QTD
Harbour Village Development Status
$(000)s except references to Condo Units and Boat Slips
Phase 1
-----------------------------------
Buildings Townhouses
-----------------------------------
Oak River-
600 700 800 Hammock walk
-----------------------------------
Status at 9/30/2001
----------------------------------
Planned Number of Condo Units and
Boat Slips 32 32 32 18 28
Condo Units and Boat Slips under
Contract 28 27 31 14 25
Value of Pre-sale Contracts (Note 1) 7,494 7,614 7,759 6,434 9,229
Building Foundation Completed Yes Yes Yes No No
Vertical Building Completed No No Yes No No
Interior Finish Completed No No No No No
Certificate of Occupancy Received No No No No No
Actual 9/20/2001 Quarter to Date
----------------------------------
Units Closed at 9/30/2001 QTD - - - - -
Revenue Recognized at 9/30/2001 QTD - - - - -
Gross Profit Recognized at
9/30/2001 QTD - - - - -
Total Fixed Costs at 9/30/2001 QTD
(Note 2)
Pre-Tax Profit at 9/30/2001 QTD
Projected 12/31/2001 Quarter to Date
----------------------------------
Projected Unit Closings at
12/31/2001 QTD
Projected Revenue Recognized at
12/31/2001 QTD
Projected Gross Profit at
12/31/2001 QTD
Projected Total Fixed Costs at
12/31/2001 QTD
Projected Pre-Tax Profit at
12/31/2001 QTD
Harbour Village Development Status
$(000)s except references to Condo Units and Boat Slips
Phase 2
-----------------------------------
8 Bldgs Total
-------
Total Boat Condos &
Links Condos Slips Boat Slips
-----------------------------------
Status at 9/30/2001
----------------------------------
Planned Number of Condo Units and
Boat Slips 376 670 142 812
Condo Units and Boat Slips under
Contract 67 339 132 471
Value of Pre-sale Contracts
(Note 1) 16,365 91,161 12,012 103,173
Building Foundation Completed No
Vertical Building Completetd No
Interior Finish Completed No
Certificate of Occupancy Received No
Actual 9/20/2001 Quarter to Date
----------------------------------
Units Closed at 9/30/2001 QTD - 12 6 18
Revenue Recognized at 9/30/2001 QTD - 2,667 513 3,180
Gross Profit Recognized at
9/30/2001 QTD - 272 213 485
Total Fixed Costs at 9/30/2001 QTD
(Note 2) 399
Pre-Tax Profit at 9/30/2001 QTD 86
Projected 12/31/2001 Quarter to Date
----------------------------------
Projected Unit Closings at
12/31/2001 QTD 88 40 128
Projected Revenue Recognized at
12/31/2001 QTD 19,206 2,560 21,766
Projected Gross Profit at
12/31/2001 QTD 1,959 1,063 3,022
Projected Total Fixed Costs
at 12/31/2001 QTD 700
Projected Pre-Tax Profit at
12/31/2001 QTD 2,322
Note 1 - No assurance can be given that purchasers under binding
pre-sale contracts with deposits will close each transaction.
Note 2 - Fixed costs include advertising, promotion, and other
general and administrative costs. These costs are not allocated to
specific buildings.
The projected results contained above for unit closings, revenue,
gross profit, fixed costs and pre-tax profit are forward looking
statements. With respect to the Company's development of the Harbour
Village property, such forward looking statements involve risks and
uncertainties which may cause actual results to differ materially, and
are subject to change based on various real estate development
industry factors, including competitive
housing conditions in the local market area, risks inherent in
real estate development and new construction, increases in
construction costs, construction delays, weather, litigation, changes
in interest rates and the availability of mortgage financing for
prospective purchasers of condominium units and boat slips, and
changes in local and national levels of general business activity and
economic conditions.
AMERICAN SAFETY INSURANCE GROUP, LTD. AND SUBSIDIARIES
Financial and Operating Highlights
Three Months Ended Nine months Ended
September 30, September 30,
2001 2000 2001 2000
INCOME STATEMENT DATA:
Revenues:
Direct and
assumed
premiums
earned $ 34,596,227 $ 15,727,728 $ 98,501,427 $ 30,890,591
Ceded premiums
earned (20,257,092) (7,939,922) (53,756,277) (13,853,846)
-------------------------------------------------------
Net premiums
earned 14,339,135 7,787,806 44,745,150 17,036,745
Net investment
income 946,765 667,623 2,709,385 2,001,630
Interest on
notes
receivable 207,622 377,679 766,937 1,252,648
Brokerage
commission
income 716,003 1,215,987 1,715,027 2,840,150
Management fees
from related
party 363,354 350,392 1,094,662 1,068,738
Net realized
gains (losses) 186,005 (9,352) 601,354 (215,063)
Sales -
Real Estate 3,180,705 - 3,180,705 -
Other income 128,814 69,543 978,399 767,949
-------------------------------------------------------
Total Revenues 20,068,403 10,459,678 55,791,619 24,752,797
-------------------------------------------------------
Expenses:
Losses and loss
adjustment
expenses 9,636,161 4,980,766 28,501,533 11,801,592
Acquisition
expenses 2,561,742 1,221,384 8,801,854 3,087,669
Payroll and
related
expenses 2,073,232 1,921,571 6,255,317 5,503,629
Costs -
Real Estate 3,096,454 181,714 3,578,941 367,157
Other expenses 1,455,311 1,376,494 4,301,627 3,475,325
Expense due to
rescission - - - 3,541,848
-------------------------------------------------------
Total expenses 18,822,900 9,681,929 51,439,272 27,777,220
-------------------------------------------------------
Earnings (loss)
before income
taxes 1,245,503 777,749 4,352,347 (3,024,423)
Income taxes 266,750 123,923 526,150 (1,237,399)
-------------------------------------------------------
Net earnings
(loss) $ 978,753 $ 653,826 $ 3,826,197 $ (1,787,024)
-------------------------------------------------------
Net earnings
(loss) per
share:
Basic $ 0.20 $ 0.12 $ 0.79 $ (0.32)
=======================================================
Diluted $ 0.20 $ 0.12 $ 0.77 $ (0.32)
=======================================================
Average number
of shares
outstanding:
Basic 4,788,648 5,377,597 4,823,066 5,609,170
=======================================================
Diluted 4,996,787 5,377,597 4,949,942 5,610,944
=======================================================
GAAP combined
ratio 90.1% 85.1% 88.9% 92.6%
=======================================================
BALANCE SHEET DATA: September 30, December 31,
2001 2000
Total investments excluding
real estate $ 81,813,956 $ 61,460,355
Total assets 285,513,683 207,298,116
Unpaid losses and loss
adjustment expenses 80,674,922 50,508,627
Total liabilities 224,712,736 149,494,971
Total shareholders' equity 60,800,947 57,803,145
Book value per share $ 12.81 $ 11.53
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