Ct Healthmarket via BizWire
08-04-2003, 04:20 AM
PLANTATION, Fla.--(BUSINESS WIRE)--Aug. 4, 2003--21st Century
Holding Company (Nasdaq:TCHC), today reported results for the second
quarter and six months ended June 30, 2003 (see attached tables).
For the second quarter of 2003, the Company reported net income of
$2,113,934, or $0.66 per diluted share based on 3,194,747 average
diluted shares outstanding, as compared to net income of $32,041, or
$0.01 per share, based on 3,020,126 average diluted shares outstanding
for the second quarter of 2002. These results exceeded Company
guidance of $0.60 per share.
Net premium earned in the second quarter of 2003 increased 68.8%
to $10.9 million from $6.5 million in the same period last year. This
increase is due primarily to changes in the Company's reinsurance
treaties and increased property writings.
Total revenue for the second quarter of 2003 increased 79% to
$14.9 million from $8.4 million in the same period last year.
Net income and total revenue for the second quarter of 2002
included a $1.5 million write down related to the Company's investment
in WorldCom bonds.
Edward J. (Ted) Lawson, President & Chairman of the Board, said,
"These record results reflect the continued, successful execution of
our business plan and the validity of our vertically integrated
business model. By controlling all aspects of the insurance
underwriting, distribution and claims process, 21st Century has been
able to generate revenues and profits from each of the businesses that
we operate, while allowing us to effectively manage expenses and
provide the highest level of customer and agent care."
Mr. Lawson continued, "We are also focused on growing our existing
products and creating new streams of revenue. In this regard, our
American Vehicle Insurance Company subsidiary launched its recently
approved general liability product in the state of Florida in June.
This line of business is slated to be a significant contributor to our
top and bottom line growth over time. Furthermore, our goal of
becoming a regional insurance carrier is now beginning to unfold as
American Vehicle has just recently been approved to write general
liability insurance in Georgia on a surplus lines basis and has also
applied for a license to underwrite and sell personal automobile and
general liability insurance in Alabama. Other states in the Southeast
will follow.
"During the year our loss ratios in our automobile division have
increased and our loss ratios in property have decreased. To correct
our auto loss ratio, the Company is increasing auto rates by a
projected 15-20% starting in October and shifting its writings from
auto into general liability and property lines, which typically
produce higher margins and lower loss ratios. These changes are
expected to result in higher revenues and earnings starting in the
first quarter of 2004. In our fourth quarter, 70% of our net writings
are projected to be in property and general liability lines versus
less than 30% in 2002.
"Our financial condition has recently been bolstered by a $7.5
million 6% subordinated debt offering, proceeds of which will be used
to strengthen our balance sheet and provide funds to expand into the
Southeast. With these added funds and our continued expectations of
strong profitability, we remain confident of our financial condition.
Investments during 2003 increased by 43% to $36.4 million due to
increased writings and have been conservatively invested in primarily
AAA rated securities. Total assets have increased by 14% to $86.2
million from $75.3 million as of December 31, 2002. Shareholder equity
increased by $2.5 million from $21.0 at the end of the first quarter
to $23.5 at the end of the second quarter and $8.8 million of
operating cash flow was generated for the first six months of 2003.
"For the balance of the year our outlook remains positive and we
will, as necessary, update guidance as the quarter progresses.
"Finally, as a further sign of both mine and Michele's (my wife,
cofounder and Treasurer) personal bullish outlook on the future of
your company, we will be exercising (buying) within the next few
weeks, with our own money, 26,000 stock options granted to us during
the Company's initial public offering in 1998. The proceeds to the
Company will be $260,000 when the transaction is completed and will
give Michele and me a combined total of approximately 971,000 shares
of common stock in the Company."
The Company will hold an investor conference call today following
this release at 10:00 AM (ET). Listeners can access the conference
call by dialing toll free 877-780-2276. 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, mobile
home insurance and homeowners' property and casualty insurance in the
State of Florida. The Company also has underwriting authority and
processes claims for third party insurance companies. In addition to
insurance services, the Company offers financial services to its
insureds as well as the insured of third party insurance companies.
Lastly, the Company offers other ancillary services including
licensing of its tax preparation software products, electronic income
tax filing, tax preparation and tag and title transfer services.
The Company offers single and master franchise opportunities to
individuals through its subsidiaries Fed USA Insurance/Financial
Services and EXPRESSTAX(R) Franchise Corporation.
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,
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 requested rate changes and the timing thereof;
legislative and regulatory developments; the outcome of litigation
pending against the Company; 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 its
liability for loss and loss adjustment expense ("LAE"); insurance
agents; claims experience; limited experience in the insurance
industry; 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 the Company in releases and publications, and in periodic reports
and other documents filed with the United States Securities and
Exchange Commission. 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.
21st CENTURY HOLDING COMPANY
Financial Highlights (Unaudited)
For the Three Months For the Six Months
Ended, Ended,
6/30/03 6/30/02 6/30/03 6/30/02
------- ------- ------- -------
Operations Data
---------------
Total Revenue $14,944,779 $ 8,353,729 $29,806,789 $17,244,353
Net Realized
Investment
Gaines (Losses) 1,068,818 (1,513,517) 1,419,700 (1,459,736)
Pretax Income 3,148,996 923,391 6,755,865 2,467,627
Income Tax Expense 1,035,062 891,350 2,333,530 1,444,216
Net Income 2,113,934 32,041 4,422,335 1,023,411
Net Income Per Share 0.69 0.01 1.46 0.34
Weighted Average
Shares Outstanding 3,063,105 3,017,526 3,034,220 3,023,226
Weighted Average
Shares Outstanding
- Assuming Dilution 3,194,747 3,020,126 3,125,479 3,023,226
Diluted EPS 0.66 0.01 1.41 0.34
Period Ending
Balance Sheet Data 6/30/03 12/31/02
------------------ ------- --------
Total Cash & Investments $41,027,308 $29,856,179
Total Assets 86,188,276 75,318,011
Loss and Loss Adjustment Expense 24,127,582 16,983,756
Total Liabilities 62,676,035 57,220,347
Total Shareholders' Equity 23,512,241 18,097,664
Holding Company (Nasdaq:TCHC), today reported results for the second
quarter and six months ended June 30, 2003 (see attached tables).
For the second quarter of 2003, the Company reported net income of
$2,113,934, or $0.66 per diluted share based on 3,194,747 average
diluted shares outstanding, as compared to net income of $32,041, or
$0.01 per share, based on 3,020,126 average diluted shares outstanding
for the second quarter of 2002. These results exceeded Company
guidance of $0.60 per share.
Net premium earned in the second quarter of 2003 increased 68.8%
to $10.9 million from $6.5 million in the same period last year. This
increase is due primarily to changes in the Company's reinsurance
treaties and increased property writings.
Total revenue for the second quarter of 2003 increased 79% to
$14.9 million from $8.4 million in the same period last year.
Net income and total revenue for the second quarter of 2002
included a $1.5 million write down related to the Company's investment
in WorldCom bonds.
Edward J. (Ted) Lawson, President & Chairman of the Board, said,
"These record results reflect the continued, successful execution of
our business plan and the validity of our vertically integrated
business model. By controlling all aspects of the insurance
underwriting, distribution and claims process, 21st Century has been
able to generate revenues and profits from each of the businesses that
we operate, while allowing us to effectively manage expenses and
provide the highest level of customer and agent care."
Mr. Lawson continued, "We are also focused on growing our existing
products and creating new streams of revenue. In this regard, our
American Vehicle Insurance Company subsidiary launched its recently
approved general liability product in the state of Florida in June.
This line of business is slated to be a significant contributor to our
top and bottom line growth over time. Furthermore, our goal of
becoming a regional insurance carrier is now beginning to unfold as
American Vehicle has just recently been approved to write general
liability insurance in Georgia on a surplus lines basis and has also
applied for a license to underwrite and sell personal automobile and
general liability insurance in Alabama. Other states in the Southeast
will follow.
"During the year our loss ratios in our automobile division have
increased and our loss ratios in property have decreased. To correct
our auto loss ratio, the Company is increasing auto rates by a
projected 15-20% starting in October and shifting its writings from
auto into general liability and property lines, which typically
produce higher margins and lower loss ratios. These changes are
expected to result in higher revenues and earnings starting in the
first quarter of 2004. In our fourth quarter, 70% of our net writings
are projected to be in property and general liability lines versus
less than 30% in 2002.
"Our financial condition has recently been bolstered by a $7.5
million 6% subordinated debt offering, proceeds of which will be used
to strengthen our balance sheet and provide funds to expand into the
Southeast. With these added funds and our continued expectations of
strong profitability, we remain confident of our financial condition.
Investments during 2003 increased by 43% to $36.4 million due to
increased writings and have been conservatively invested in primarily
AAA rated securities. Total assets have increased by 14% to $86.2
million from $75.3 million as of December 31, 2002. Shareholder equity
increased by $2.5 million from $21.0 at the end of the first quarter
to $23.5 at the end of the second quarter and $8.8 million of
operating cash flow was generated for the first six months of 2003.
"For the balance of the year our outlook remains positive and we
will, as necessary, update guidance as the quarter progresses.
"Finally, as a further sign of both mine and Michele's (my wife,
cofounder and Treasurer) personal bullish outlook on the future of
your company, we will be exercising (buying) within the next few
weeks, with our own money, 26,000 stock options granted to us during
the Company's initial public offering in 1998. The proceeds to the
Company will be $260,000 when the transaction is completed and will
give Michele and me a combined total of approximately 971,000 shares
of common stock in the Company."
The Company will hold an investor conference call today following
this release at 10:00 AM (ET). Listeners can access the conference
call by dialing toll free 877-780-2276. 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, mobile
home insurance and homeowners' property and casualty insurance in the
State of Florida. The Company also has underwriting authority and
processes claims for third party insurance companies. In addition to
insurance services, the Company offers financial services to its
insureds as well as the insured of third party insurance companies.
Lastly, the Company offers other ancillary services including
licensing of its tax preparation software products, electronic income
tax filing, tax preparation and tag and title transfer services.
The Company offers single and master franchise opportunities to
individuals through its subsidiaries Fed USA Insurance/Financial
Services and EXPRESSTAX(R) Franchise Corporation.
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,
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 requested rate changes and the timing thereof;
legislative and regulatory developments; the outcome of litigation
pending against the Company; 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 its
liability for loss and loss adjustment expense ("LAE"); insurance
agents; claims experience; limited experience in the insurance
industry; 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 the Company in releases and publications, and in periodic reports
and other documents filed with the United States Securities and
Exchange Commission. 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.
21st CENTURY HOLDING COMPANY
Financial Highlights (Unaudited)
For the Three Months For the Six Months
Ended, Ended,
6/30/03 6/30/02 6/30/03 6/30/02
------- ------- ------- -------
Operations Data
---------------
Total Revenue $14,944,779 $ 8,353,729 $29,806,789 $17,244,353
Net Realized
Investment
Gaines (Losses) 1,068,818 (1,513,517) 1,419,700 (1,459,736)
Pretax Income 3,148,996 923,391 6,755,865 2,467,627
Income Tax Expense 1,035,062 891,350 2,333,530 1,444,216
Net Income 2,113,934 32,041 4,422,335 1,023,411
Net Income Per Share 0.69 0.01 1.46 0.34
Weighted Average
Shares Outstanding 3,063,105 3,017,526 3,034,220 3,023,226
Weighted Average
Shares Outstanding
- Assuming Dilution 3,194,747 3,020,126 3,125,479 3,023,226
Diluted EPS 0.66 0.01 1.41 0.34
Period Ending
Balance Sheet Data 6/30/03 12/31/02
------------------ ------- --------
Total Cash & Investments $41,027,308 $29,856,179
Total Assets 86,188,276 75,318,011
Loss and Loss Adjustment Expense 24,127,582 16,983,756
Total Liabilities 62,676,035 57,220,347
Total Shareholders' Equity 23,512,241 18,097,664
