x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE
ACT OF 1934
FOR
THE QUARTERLY PERIOD ENDED September 30, 2008
OR
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE
ACT OF 1934
FOR
THE TRANSITION PERIOD FROM ___________________TO
_______________________
Commission
File number 0-2500111
21
st
Century Holding Company
(Exact
name of registrant as specified in its charter)
Florida
65-0248866
(State
or Other Jurisdiction of
(IRS
Employer
Incorporation
or Organization)
Identification
Number)
3661
West Oakland Park Boulevard, Suite 300, Lauderdale Lakes, Florida
33311
(Address
of principal executive offices) (Zip Code)
954-581-9993
(Registrant's
telephone number, including area code)
Indicate
by check mark whether the registrant (1) has filed all reports required to
be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements
for
the past 90 days.
Yes
x
No
¨
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company.
See
the definitions of “large accelerated filer”, “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act
Large
accelerated filer
¨
Accelerated
filer
x
Non-accelerated
filer
¨
Smaller
reporting company
¨
Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).
Yes
¨
No
x
Indicate
the number of shares outstanding of each of the issuer’s classes of common
stock, as of the latest practicable date.
Common
Stock,
$.
0
1
par
value
– 8,013,894 outstanding as of November 10, 2008
21
ST
CENTURY HOLDING COMPANY
INDEX
PAGE
PART
I: FINANCIAL INFORMATION
ITEM
1
Financial
Statements and Supplementary Data
3
ITEM
2
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
21
ITEM
3
Quantitative
and Qualitative Disclosures about Market Risk
43
ITEM
4
Controls
and Procedures
43
PART
II: OTHER INFORMATION
ITEM
1
Legal
Proceedings
44
ITEM
1A
Risk
Factors
44
ITEM
2
Unregistered
Sales of Equity Securities and Use of Proceeds
45
ITEM
3
Defaults
upon Senior Securities
46
ITEM
4
Submission
of Matters to a Vote of Security Holders
46
ITEM
5
Other
Information
46
ITEM
6
Exhibits
46
SIGNATURES
47
2
PART
I: FINANCIAL INFORMATION
Item
1
21
st
CENTURY
HOLDING COMPANY
CONSOLIDATED
BALANCE SHEETS
(UNAUDITED)
Period
Ending
September 30, 2008
December 31, 2007
(Dollars in Thousands)
ASSETS
Investments
Fixed
maturities, available for sale, at fair value
$
67,239
$
99,484
Fixed
maturities, held to maturity, at amoritized cost
14,547
20,210
Equity
securities, available for sale, at fair value
6,240
16,530
Total
investments
88,027
136,224
Cash
and short term investments
69,465
22,524
Receivable
for investments sold
1,037
6,420
Finance
contracts, net of allowance for credit losses of $26 in 2008
and $38 in
2007, and net of unearned finance charges of $10 in 2008 and
$15 in
2007
199
420
Prepaid
reinsurance premiums
1,282
8,471
Premiums
receivable, net of allowance for credit losses of $183 and $288,
respectively
3,467
3,797
Reinsurance
recoverable, net
14,330
22,942
Deferred
policy acquisition costs
6,825
8,958
Deferred
income taxes, net
7,588
5,640
Income
taxes receivable
3,144
-
Property,
plant and equipment, net
894
1,046
Other
assets
2,176
2,918
Total
assets
$
198,435
$
219,361
LIABILITIES
AND SHAREHOLDERS' EQUITY
Unpaid
losses and loss adjustment expenses ("LAE")
$
59,202
$
59,685
Unearned
premiums
44,675
56,394
Premiums
deposits and customer credit balances
1,607
2,761
Bank
overdraft
8,912
8,695
Income
taxes payable
-
4,226
Deferred
gain from sale of property
1,615
1,998
Accounts
payable and accrued expenses
2,700
4,346
Total
liabilities
118,711
138,104
Commitments
and Contingencies
-
-
Shareholders'
equity:
Common
stock, $0.01 par value. Authorized 37,500,000 shares; issued
and
outstanding 8,013,894 and 7,871,234, respectively
80
79
Additional
paid-in capital
49,839
48,240
Accumulated
other comprehensive (deficit)
(1,770
)
(2,596
)
Retained
earnings
31,575
35,534
Total
shareholders' equity
79,724
81,257
Total
liabilities and shareholders' equity
$
198,435
$
219,361
SEE
ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3
21
ST
CENTURY
HOLDING COMPANY
CONSOLIDATED
STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended September 30,
Nine Months Ended September 30,
2008
2007
2008
2007
(Dollars in Thousands except EPS and dividend data)
(Dollars in Thousands except EPS and dividend data)
Next Section