CORRECTING and REPLACING American Safety Insurance Holdings, Ltd. Reports 199% Increase in First Quarter Earnings; 30% Increase in Insurance Earnings.Business Editors Correction CORRECTION,punishment. Chastisement by one having authority of a person who has committed some offence, for the purpose of bringing him to legal subjection. 2. It is chiefly exercised in a parental manner, by parents, or those who are placed in loco parentis. by 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 Holdings, Ltd. 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)--May 13, 2004 In BW5658 issued May 12, 2004: First graph graph, figure that shows relationships between quantities. The graph of a function y=f (x) is the set of points with coordinates [x, f (x)] in the xy-plane, when x and y are numbers. , first sentence of release dated May 12, 2004 should read: as compared to $1.2 million or $0.25 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 the first quarter of 2003 (sted as compared to $1.2 million or $.025 per diluted share for the first quarter of 2003). The corrected release reads: AMERICAN SAFETY INSURANCE HOLDINGS, LTD. REPORTS 199% INCREASE IN FIRST QUARTER EARNINGS; 30% INCREASE IN INSURANCE EARNINGS American Safety Insurance Holdings, Ltd. (NYSE NYSE See: New York Stock Exchange : ASI ASI, n See Anxiety Sensitivity Index. ) today reported earnings of $3.6 million or $0.49 per diluted share, from its insurance and real estate operations for the first quarter ended March 31, 2004, as compared to $1.2 million or $0.25 per diluted share for the first quarter of 2003, an increase of 199%. First quarter net earnings were as follows (in thousands):
Quarter Ended Quarter Ended
Mar. 31, 2004 Mar. 31, 2003
--------------------------
Insurance Operations $2,111 $1,628
Real Estate Operations 1,521 (458)
Other, including realized gains and (losses)
18 50
--------------------------
Net Earnings $3,650 $1,220
==========================
Earnings for the first quarter of 2004 from insurance operations increased by 30% to $2.1 million from $1.6 million for the same period of 2003. The increase in earnings from insurance operations was due to strong 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. results in the Company's core environmental, excess and surplus, and program business lines. The increase in earnings from real estate operations was due to increased closings of condominiums units and boat slips at Harbour Village. Total revenues for the first quarter of 2004 increased 69% to $50 million as compared to the same quarter of 2003 as a result of increased net premiums earned, investment income and real estate income. For the quarter, revenue from our insurance operations increased by 51% to $36 million from $24 million for the first quarter of 2003. Net premiums earned for the first quarter of 2004 increased 50% to $34 million from the same quarter of 2003 due to increases in the Company's core lines of business. Net cash flow generated from operations increased to $23 million for the first quarter of 2004 from $10 million in the same quarter of 2003. The Company's book value per share increased to $14.64 at March 31, 2004 from $13.80 at December December: see month. 31, 2003. This increase in book value per share is due to the Company's net earnings and an increase of $2.3 million in unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. on fixed income investments during the first quarter of 2004. However, increases in market interest rates in April have offset unrealized gains on the Company's fixed income investments. Commenting on the results, Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and R. Crim, President and Chief Executive Officer of American Safety Insurance Holdings, Ltd., said, "The first quarter of 2004 produced record results for American Safety Insurance, with strong growth in revenue, cash flow and net earnings. For the quarter, revenue from our insurance operations increased by 51% to $36 million and earnings from insurance operations increased by 30% to $2.1 million as compared to the same period of 2003. We expect to continue growing our insurance business in the current favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. market and obtain rate increases where possible. We also are pleased with the first quarter results from our real estate operations, which produced nearly $14 million in revenue and $1.5 million of earnings. We expect the Harbour Village real estate project to be substantially complete by the end of 2004 and will redeploy re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. our invested capital to our insurance operations." A conference call to discuss first quarter 2004 results is scheduled for Thursday Thursday: see week. , May 13, 2004 at 11:00 a.m. (Eastern Time), which will be broadcast through the Investor Broadcast Network's Vcall website at www.vcall.com or the Company's website at www.americansafetyinsurance.com. A replay will be available on the Company's website. American Safety Insurance Holdings, 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 holding company which, through its subsidiaries, provides innovative insurance solutions in the alternative insurance market for environmental remediation Generally, remediation means providing a remedy, so environmental remediation deals with the removal of pollution or contaminants from environmental media such as soil, groundwater, sediment, or surface water for the general protection of human health and the environment or from a , contracting and other specialty risks. Additional information about the Company can be found at www.americansafetyinsurance.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 future insurance claims and losses, and the Company's expectations with respect to the outcome of the Principal Management acquisition rescission The abrogation of a contract, effective from its inception, thereby restoring the parties to the positions they would have occupied if no contract had ever been formed. By Agreement 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. , and the future profitability and the value of the Harbour Village 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, timing or collectibility 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. recoverables, market acceptance of new coverages and enhancements, changes in reinsurance costs and availability, potential adverse decisions in court and arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the proceedings, and changes in levels of general business activity and economic conditions. With respect to the development of the Harbour Village project, 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, zoning, litigation, changes in interest rates and the availability of mortgage financing for prospective purchasers of 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 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.
American Safety Insurance Holdings, Ltd. and Subsidiaries
Financial and Operating Highlights
Three Months Ended
March 31
--------------------------
2004 2003
--------------------------
INCOME STATEMENT DATA:
Revenues:
Direct and assumed premiums earned $55,424,433 $42,808,901
Ceded premiums earned (21,305,696) (19,996,906)
--------------------------
Net premiums earned 34,118,737 22,811,995
Net investment income 2,071,112 1,219,743
Net realized gains 25,411 150,715
Real estate income 13,952,154 5,429,847
Other income 31,113 14,394
--------------------------
Total revenues $50,198,527 $29,626,694
--------------------------
Expenses:
Losses and loss adjustment expenses $22,359,442 $12,816,638
Acquisition expenses 6,610,218 4,677,225
Payroll and related expenses 2,623,376 2,221,912
Real estate expenses 11,493,835 6,161,641
Other expenses 2,096,542 2,379,455
Minority interest 174,111 71,386
Expense due to rescission 29,574 83,559
--------------------------
Total expenses $45,387,098 28,411,816
--------------------------
Earnings before income taxes 4,811,429 1,214,878
Income taxes 1,161,610 (5,475)
--------------------------
Net earnings $3,649,819 $1,220,353
==========================
Net earnings per share:
Basic $0.53 $0.26
==========================
Diluted $0.49 $0.25
==========================
Average number of shares outstanding:
Basic 6,916,099 4,739,888
==========================
Diluted 7,408,663 4,796,772
==========================
GAAP combined ratio 97.8% 95.2%
BALANCE SHEET DATA: March 31, December 31
2004 2003
Total investments, excluding real estate $266,452,582 $222,418,972
Total assets 558,160,818 514,259,644
Unpaid losses and loss adjustment expenses 250,108,070 230,103,754
Total liabilities 456,812,795 418,916,521
Total shareholders' equity 101,348,023 95,343,123
Book value per share $14.64 $13.80
Harbour Village Development Status
(000)s except references to Condo Units
Phase 1 Phase 2
--------------------------------------
Townhouses
---------------- The The
Marina Oak Links Links
Condos HammockRiverwalk North South
--------------------------------------
3/31/2004
--------------------------------
Planned Number of Condo Units
and Boat Slips 248 18 28 188 188
Condo Units and Boat Slips under
Contract 248 17 27 181 168
Value of Pre-sale Contracts
(Note 1) 62,892 7,931 10,479 46,178 47,070
Number of Buildings 8 4 6 4 4
Number of Closed Units 248 17 26 180 24
Number of Buildings Complete by Task
Building Foundation 8 4 6 4 4
Vertical Building Completed 8 4 6 4 4
Interior Finish Completed 8 4 6 4 2
Certificate of Occupancy
Received 8 4 6 4 2
1st Quarter Actual
--------------------------
Units Closed - 2 1 9 24
Revenue Recognized
Condos and Boat Slips 154 1,204 386 3,039 6,770
Land Sales and Other Revenue
Total Revenue
Gross Profit Recognized
Condos and Boat Slips 76 32 10 679 1,697
Land Sales and Other Revenue
Total Gross Profit
Other Expense (Income) Items
Pre-Tax Profit
Outlook For 2nd Quarter of 2004
--------------------------------------
Units Closed - - - 2 50
Sales Value of Closed Units - - - 678 13,569
Revenue Recognized
Condos and Boat Slips - - - 658 13,162
Land Sales and Other Revenue
Total Revenue
Gross Profit Recognized
Condos and Boat Slips - - - 135 2,172
Land Sales and Other Revenue
Total Gross Profit
Other Expense (Income) Items
Pre-Tax Profit
Harbour Village Development Status
(000)s except references to Condo Units
Total Boat
Condos Slips Total
--------------------------
3/31/2004
--------------------------------
Planned Number of Condo Units and Boat Slips 670 142 812
Condo Units and Boat Slips under Contract 641 142 783
Value of Pre-sale Contracts (Note 1) 174,550 13,082 187,632
Number of Buildings 26
Number of Closed Units 495 139 634
Number of Buildings Complete by Task
Building Foundation
Vertical Building Completed
Interior Finish Completed
Certificate of Occupancy Received
1st Quarter Actual
--------------------------
Units Closed 36 1 37
Revenue Recognized
Condos and Boat Slips 11,553 190 11,743
Land Sales and Other Revenue 2,209
Total Revenue 13,952
Gross Profit Recognized
Condos and Boat Slips 2,494 97 2,591
Land Sales and Other Revenue 856
Total Gross Profit 3,447
Other Expense (Income) Items (989)
Pre-Tax Profit 2,458
Outlook For 2nd Quarter of 2004
--------------------------------------
Units Closed 52 - 52
Sales Value of Closed Units 14,247 - 14,247
Revenue Recognized
Condos and Boat Slips 13,820 - 13,820
Land Sales and Other Revenue 200
Total Revenue 14,020
Gross Profit Recognized
Condos and Boat Slips 2,307 - 2,307
Land Sales and Other Revenue 74
Total Gross Profit 2,381
Other Expense (Income) Items (885)
Pre-Tax Profit 1,496
Note 1 - No assurance can be given that purchasers under binding pre-sale contracts with deposits will close each contemplated transaction. Note 2 - Other includes net brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. commissions, advertising, promotion, and other general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . These items are not allocated to specific buildings. The projected results contained above for unit closings, revenue, gross profit, fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). and pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta 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. |
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