21ST CENTURY HOLDING COMPANY

12 Months Ended

Dec. 31, 2011

21ST CENTURY HOLDING COMPANY [Abstract]

21ST CENTURY HOLDING COMPANY

(19)  21ST CENTURY HOLDING COMPANY

21st Century (the parent company only) has no long term obligations, guarantees or material contingencies as of December 31, 2011. The following summarizes the major categories of the parent company's financial statements.

Condensed Balance Sheets	Period Ending December 31,
ASSETS	2011		2010
	(Dollars in Thousands)
Cash and short term investments	$	2,283	$	3,202
Investments and advances to subsidiaries		60,554		59,708
Deferred income taxes receivable		8,612		7,916
Income taxes receivable		9,474		7,326
Property, plant and equipment, net		260		194
Other assets		4,024		4,316
Total assets	$	85,207	$	82,662
LIABILITIES AND SHAREHOLDERS' EQUITY
Income taxes payable		78		-
Other liabilities		143		913
Total liabilities		221		913
Shareholders' equity:
Common stock		80		79
Additional paid-in capital		45,250		45,250
Accumulated other comprehensive income		494		410
Retained earnings		39,162		36,010
Total shareholders' equity		84,986		81,749
Total liabilities and shareholders' equity	$	85,207	$	82,662

Condensed Statements of Operations	Years Ended December 31,
	2011			2010			2009
	(Dollars in Thousands)
Revenue:
Management fees from subsidiaries	$	1,734		$	1,669		$	1,628
Equity in income of subsidiaries		(48	)		(10,080	)		(13,934	)
Net investment income (loss)		31			2			(75	)
Other income		1,345			518			623
Total revenue		3,062			(7,891	)		(11,758	)
Expenses:
Salaries and wages		1,775			1,930			1,892
Legal fees		54			19			387
Other expenses		2,233			2,114			2,173
Total expenses		4,062			4,063			4,452
Loss before provision for income tax expense		(1,000	)		(11,955	)		(16,210	)
Provision for income tax benefit		(570	)		(3,959	)		(5,921	)
Net loss	$	(430	)	$	(7,996	)	$	(10,289	)

Condensed Statements of Cash Flow
	Years Ended December 31,
	2011			2010			2009
	(Dollars in Thousands)
Cash flow from operating activities:
Net loss	$	(430	)	$	(7,996	)	$	(10,289	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Equity in loss of subsidiaries		48			10,080			13,934
Depreciation and amortization of property plant and equipment, net		6,605			12,834			22,305
Deferred income tax expense (benefit)		696			3,241			(5,769	)
Income tax recoverable (payable)		78			-			(8,695	)
Change in dividends payable		-			(477	)		(966	)
Non-cash compensation		263			431			333
Changes in operating assets and liabilities:
Deferred gain on sale of assets		(506	)		(500	)		(488	)
Other assets		(292	)		(301	)		(8,210	)
Other liabilities		(770	)		(675	)		(773	)
Net cash provided by operating activities		5,692			16,637			1,382
Cash flow (used in) provided by investing activities:
(Purchases of) proceeds from investment securities available for sale		(846	)		(5,024	)		170
Increased capital of subsidiaries		-			(5,025	)		-
Cash flow (used in) provided by  investing activities:		(846	)		(10,049	)		170
Net cash (used in) provided by financing activities:
Dividends paid		-			(477	)		(1,920	)
Tax benefit related to non-cash compensation		25			39			160
Acquisition of common stock		-			-			(288	)
Advances (to) from subsidiaries		(5,792	)		(9,135	)		4,196
Net cash (used in) provided by financing activities:		(5,767	)		(9,573	)		2,148
Net (decrease) increase in cash and short term investments		(921	)		(2,985	)		3,700
Cash and short term investments at beginning of year		3,204			6,189			2,489
Cash and short term investments at end of year	$	2,283		$	3,204		$	6,189