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For the three months ended June 30, 2009, the Company reported net income of $784,254, or $0.10 per share on 8,013,894 average undiluted shares outstanding, as compared to a net loss of $2,500,031, or $0.31 per share on 7,974,053 average undiluted shares outstanding in the same three month period last year. On a diluted share basis, the Company reported earnings of $0.10 per share, based on 8,013,894 average diluted shares outstanding for the same three month period, as compared to a net loss of $0.31 per share, based on 7,974,053 average diluted shares outstanding for the three months ended June 30, 2008.
For the six months ended June 30, 2009, the Company reported net income of $1,087,474, or $0.14 per share on 8,013,894 undiluted shares versus net income of $1,808,558, or $0.23 per share on 7,944,305 undiluted shares in the same six month period last year. On a diluted share basis, the Company reported earnings of $0.14 per share, based on 8,013,894 average diluted shares outstanding for the same six month period, as compared to $0.23 per share, based on 7,975,057 average diluted shares outstanding for the six months ended June 30, 2008.
Net premiums earned decreased $1.2 million or 7.7% to $14.3 million for the three months ended June 30, 2009, as compared to $15.5 million for the same three-month period last year. Net premiums earned decreased $5.9 million or 17.3% to $28.2 million for the six months ended June 30, 2009, as compared to $34.1 million for the same six month period last year.
Total revenues increased $1.7 million or 11.0% to $17.1 million for the three months ended June 30, 2009, as compared to $15.4 million for the same three-month period last year. Total revenues decreased $2.7 million or 7.7% to $32.8 million for the six months ended June 30, 2009, as compared to $35.5 million for the same six month period last year.
Mr. Michael H. Braun, the Company's Chief Executive Officer, said "These results were consistent with our expectations. We expect improvements in our business fundamentals as we continue our growth initiatives and management of the inherent risks. Florida industry-wide challenges such as the impact of wind mitigation credits on policy premiums and rising reinsurance costs will impact the third and fourth quarters."
Mr. Braun and CFO, Peter J. Prygelski, III, will discuss the financial results and review the outlook for the Company at a conference call to be held on Monday, August 10, 2009 at 4:30 p.m. (ET). 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 877-419-6592. 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 Six Months Ended
June 30, June 30,
2009 2008 2009 2008
Revenue: ------------ ------------ ------------ ------------
Gross
premiums
written
$ 33,601,093 $ 27,240,913 $ 62,032,021 $ 54,844,309
Gross
premiums
ceded (19,588,159) (8,232,878) (19,916,236) (8,232,814)
------------ ------------ ------------ ------------
Net
premiums
written 14,012,934 19,008,035 42,115,785 46,611,495
------------ ------------ ------------ ------------
Increase
(Decrease)
in prepaid
reinsurance
premiums 10,305,109 (2,366,330) 2,235,663 (13,520,164)
(Increase)
Decrease in
unearned
premiums (10,053,372) (1,182,970) (16,181,929) 973,245
------------ ------------ ------------ ------------
Net change
in prepaid
reinsurance
premiums
and
unearned
premiums 251,737 (3,549,300) (13,946,266) (12,546,919)
------------ ------------ ------------ ------------
Net
premiums
earned 14,264,671 15,458,735 28,169,519 34,064,576
Commission
Income 382,994 964,288 620,912 1,082,409
Finance
revenue 91,250 91,518 174,009 177,267
Managing
general
agent fees 478,140 530,242 908,764 1,029,423
Net invest-
ment income 584,425 1,899,407 1,228,798 3,775,434
Net realized
investment
gains
(losses) 68,519 (4,663,912) (468,022) (6,313,289)
Regulatory
assessments
recovered 1,188,274 912,430 1,735,783 1,234,335
Other income 69,771 234,704 381,829 418,892
------------ ------------ ------------ ------------
Total
revenue 17,128,044 15,427,412 32,751,592 35,469,047
------------ ------------ ------------ ------------
Expenses:
Loss and
loss
adjustment
expenses 8,973,810 12,493,367 17,846,775 20,367,699
Operating
and under-
writing
expenses 2,307,753 1,473,439 4,224,314 3,028,610
Salaries
and wages 1,896,983 1,762,957 3,805,740 3,521,469
Interest
expense -- -- -- --
Policy
acquisition
costs, net
of amorti-
zation 2,915,107 3,787,474 5,659,316 7,623,315
------------ ------------ ------------ ------------
Total
expenses 16,093,653 19,517,237 31,536,145 34,541,093
------------ ------------ ------------ ------------
Income before
provision
for income
tax expense
(benefit) 1,034,391 (4,089,825) 1,215,447 927,954
Provision for
income tax
expense
(benefit) 250,137 (1,589,794) 127,973 (880,604)
------------ ------------ ------------ ------------
Net income
(loss) $ 784,254 $(2,500,031) $ 1,087,474 $ 1,808,558
============ ============ ============ ============
Basic net
income (loss)
per share $ 0.10 $ (0.31) $ 0.14 $ 0.23
============ ============ ============ ============
Fully diluted
net income
(loss) per
share $ 0.10 $ (0.31) $ 0.14 $ 0.23
============ ============ ============ ============
Weighted
average
number of
common shares
outstanding 8,013.894 7,974,053 8,013,894 7,944,305
============ ============ ============ ============
Weighted
average
number of
common shares
outstanding
(assuming
dilution) 8,013,894 7,974,053 8,013,894 7,975,057
============ ============ ============ ============
Dividends
paid per
share $ 0.06 $ 0.18 $ 0.24 $ 0.36
============ ============ ============ ============
21st CENTURY HOLDING COMPANY
Other Selected Data
(Unaudited)
Balance Sheet Period Ending
------------- 06/30/09 12/31/08
-------- --------
Total Cash & Investments $167,129,789 $150,642,267
Total Assets $216,180,318 $197,101,997
Unpaid Loss and Loss Adjustment
Expense $ 67,771,545 $ 64,775,241
Total Liabilities $138,577,226 $120,871,081
Total Shareholders' Equity $ 77,603,092 $ 76,230,916
Common Stock Outstanding 8,013,894 8,013,894
Book Value Per Share $ 9.68 $ 9.51
Premium Breakout
----------------
3 Months Ending 6 Months Ending
Line of Business 06/30/09 06/30/08 06/30/09 06/30/08
---------------- -------- -------- -------- --------
(Dollars in thousands)
Homeowners' $ 28,660 $ 19,931 $ 51,688 $ 39,920
Commercial General
Liability 3,895 7,235 8,418 14,590
Federal Flood 1,018 -- 1,754 --
Automobile 28 75 172 334
-------- -------- -------- --------
Gross Written Premiums $ 33,601 $ 27,241 $ 62,032 $ 54,844
======== ======== ======== ========
Commercial General
Liability Written Premium
by State
-------------------------
3 Months Ending 6 Months Ending
State 06/30/09 06/30/08 06/30/09 06/30/08
----- -------- -------- -------- --------
(Dollars in thousands)
Alabama $ 23 $ 28 $ 47 $ 72
Arkansas 1 4 3 12
California 9 104 54 200
Florida 3,040 4,507 6,452 9,394
Georgia 68 143 154 329
Kentucky 1 1 1 1
Louisiana 435 1,330 1,227 2,514
South Carolina 2 28 3 60
Texas 314 1,090 476 2,000
Virginia 2 -- 1 8
-------- -------- -------- --------
Gross Written Premiums $ 3,895 $ 7,235 $ 8,418 $ 14,590
======== ======== ======== ========
Loss Ratios
-----------
3 Months Ending 6 Months Ending
Line of Business 06/30/09 06/30/08 06/30/09 06/30/08
---------------- -------- -------- -------- --------
Homeowners' 65.58% 77.50% 63.89% 54.96%
Commercial General
Liability 60.32% 91.02% 63.31% 70.42%
Automobile (65.35)% (114.70)% 18.71% (45.09)%
All Lines 62.91% 80.81% 63.35% 59.79%
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: 21st Century Holding Company
21st Century Holding Company Peter J. Prygelski, CFO (954) 308-1252 (954) 581-9993
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