| Contact: |
Peter J. Prygelski, CFO, 21st Century Holding Company
(954) 308-1252 or (954) 581-9993 |
|
21st CENTURY HOLDING COMPANY REPORTS FIRST QUARTER 2010 FINANCIAL RESULTS
|
Lauderdale Lakes
,
Florida
,
May 17, 2010
21st Century Holding Company (Nasdaq: TCHC) today announced that it will release its 2010 first quarter financial results at 2:00 PM (ET) on Monday, May 17, 2010, followed by an investor conference call at 4:00 PM (ET).
The Company's CEO, Michael H. Braun, and its CFO, Peter J. Prygelski, III, will discuss the financial results and review the outlook for the Company. Messrs. Braun and Prygelski invite interested parties to participate in the conference call. A live webcast of the call will be available online at http://www.21stcenturyholding.com (in the Conference Calls section). Listeners interested in participating in the Q&A session can access the conference call by dialing toll free 866-501-5542. Participants are advised to join the call at least five minutes in advance. A webcast replay of the conference call will be available shortly after the live webcast is completed and may be accessed via the Company's website.
About the Company
The Company, through its subsidiaries, underwrites commercial general liability insurance, homeowners' property and casualty insurance, flood insurance, personal automobile insurance and commercial automobile insurance in the state of Florida. The Company underwrites general liability coverage as an admitted carrier in the states of Alabama, Louisiana and Texas 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 Arkansas, California, Georgia, Kentucky, Maryland, Missouri, Nevada, Oklahoma, South Carolina, Tennessee, and Virginia and offering the same general liability products. The Company is licensed and has the facilities to market and underwrite 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 statements under the Private Securities Litigation Reform Act of 1995: Statements in this press release that are not historical fact are forward-looking statements 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 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, the success of the Company's new growth and marketing initiatives and introduction of its new product lines, inflation and other changes in economic conditions (including changes in interest rates and financial markets); the impact of new regulations adopted in Florida which affect the property and casualty insurance market; the costs of reinsurance and the collectability or reinsurance, assessments charged by various governmental agencies; pricing competition and other initiatives by competitors; our ability to obtain regulatory approval for requested rate changes, and the timing thereof; legislative and regulatory developments; the outcome of litigation pending against us or which is commenced against the Company after the date hereof, including the terms of any settlements; risks related to the nature of our business; dependence on investment income and the composition of our investment portfolio; the adequacy of our liability for loss and loss adjustment expense; insurance agents; claims experience; ratings by industry services; catastrophe 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 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 us in our filings with the SEC, including, but not limited to, the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2008. In addition, investors should be aware that generally accepted accounting principles prescribe 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. The Company undertakes no obligations to update, change or revise any forward-looking statement, whether as a result of new information, additional or subsequent developments or otherwise.
#####
21st CENTURY HOLDING COMPANY
Consolidated Statements of Operations
(Unaudited)
| |
Three Months Ended March 31, |
| Revenue: |
2010
|
2009
|
| Gross premiums written |
$ 27,021,273 |
$ 28,430,928
|
| Gross premiums ceded |
(918,078) |
(328,077)
|
| |
|
|
| Net premiums written |
26,103,195 |
28,102,851
|
| |
|
|
| (Decrease) in prepaid reinsurance premiums |
(13,061,020) |
(8,069,446)
|
| (Increase) decrease in unearned premiums |
(2,025,741) |
(6,128,557)
|
| Net change in prepaid reinsurance premiums and unearned premiums |
(15,086,761) |
(14,198,003)
|
| |
|
|
| Net premiums earned |
11,016,434 |
13,904,848 |
| Commission Income |
386,217 |
237,918 |
| Finance revenue |
72,287 |
82,759 |
| Managing general agent fees |
494,150 |
430,624 |
| Net investment income |
934,608 |
680,952 |
| Net realized investment (losses) gains |
2,224,905 |
(536,541) |
| Regulatory assessments recovered |
515,307 |
547,509 |
| Other income |
136,830 |
312,058 |
| |
|
|
| Total revenue |
15,780,738 |
15,660,127 |
| |
|
|
| Expenses: |
|
|
| Loss and loss adjustment expenses |
9,064,732 |
8,872,965 |
| Operating and underwriting expenses |
2,716,558 |
1,953,140 |
| Salaries and wages |
2,071,963 |
1,908,757 |
| Policy acquisition costs, net of amortization |
3,459,804 |
2,744,209 |
| |
|
|
| Total expenses |
17,313,057 |
15,479,071 |
| |
|
|
| (Loss) Income before provision for income tax benefit |
(1,532,319) |
181,056 |
| Provision for income tax (benefit) expense |
(605,313) |
(122,164) |
| Net (loss) income |
$ (927,006)
|
$ 303,220
|
| Basic net (loss) income per share |
$ (0.12) |
$ 0.04 |
| Fully diluted net (loss) income per share |
$ (0.12) |
$ 0.04 |
| |
|
|
| Weighted average number of common shares outstanding |
7,946,374 |
8,013,894 |
| |
|
|
| Weighted average number of common shares outstanding (assuming dilution) |
7,946,374
|
8,013,894 |
| |
|
|
| Dividends paid per share |
$ 0.06 |
$ 0.18 |
21st CENTURY HOLDING COMPANY
Other Selected Data
(Unaudited)
Balance Sheet
| |
Period Ending |
| |
03/31/09 |
12/31/09 |
| Total Cash & Investments |
$163,939,601
|
$142,416,020
|
| Total Assets |
$214,571,482
|
$202,889,375
|
| Unpaid Loss and Loss Adjustment Expense |
$68,248,536
|
$70,610,480
|
| Total Liabilities |
$148,960,768
|
$135,447,779
|
| Total Shareholders’ Equity |
$65,610,714
|
$67,441,596
|
| Common Stock Outstanding |
7,946,374
|
7,953,384
|
| Book Value Per Share |
$8.26
|
$8.48
|
Premium Breakout
| |
3 Months Ending
|
| Line of Business |
03/31/10
|
03/31/09
|
| |
(Dollars in thousands)
|
| Homeowners' |
$21,098
|
$23,028
|
| General Liability |
3,499 |
4,523 |
| Federal Flood |
810 |
736 |
| Automobile |
1,614 |
144 |
| Gross Written Premiums |
$27,021 |
$28,431
|
Commercial General Liability
Written Premium by State
| |
3 Months Ending
|
| State |
03/31/10
|
03/31/09
|
| |
(Dollars in thousands)
|
| Alabama |
$17 |
$24 |
| Arkansas |
1 |
1 |
| California |
-- |
45 |
| Florida |
2,923 |
3,412 |
| Georgia |
19 |
86 |
| Louisiana |
374 |
792 |
| Oklahoma |
1 |
-- |
| South Carolina |
2 |
1 |
| Texas |
162 |
162 |
| Gross Written Premiums |
$3,499 |
$4,523 |
Loss Ratios
The loss ratio is calculated as losses and loss adjustment expense divided by net premiums earned for each
line of business in the given measured period.
| |
3 Months Ending
|
| Line of Business |
03/31/10
|
03/31/09
|
| Homeowners’ |
90.24% |
62.01% |
| Commercial General Liability |
63.47% |
65.98% |
| Automobile |
120.63% |
91.01% |
| Fire |
14.34% |
0.00% |
| Inland Marine |
48.75% |
0.00% |
| All Lines |
81.49% |
63.81% |
|
|
