Unico American Corporation Reports First Quarter 2013 Financial Results

WOODLAND HILLS, Calif.--(BUSINESS WIRE)-- Unico American Corporation (NAS: UNAM) ("Unico," the "Company") announced today its consolidated financial results for the three months ended March 31, 2013. For the three months ended March 31, 2013, revenues were $7.9 million and net income was $0.01 million ($0.00 diluted income per share) compared with revenues of $8.3 million and net income of $0.5 million ($0.09 diluted income per share) for the three months ended March 31, 2012.


Stockholders' equity was $70.4 million as of March 31, 2013, or $13.17 per common share including unrealized gains, net of tax, of $0.1 million, compared to stockholders' equity of $70.4 million as of December 31, 2012, or $13.18 per common share including unrealized gains, net of tax, of $0.1 million.

Headquartered in Woodland Hills, California, Unico is an insurance holding company that underwrites property and casualty insurance through its insurance company subsidiary; provides property, casualty, and health insurance through its agency subsidiaries; and through its other subsidiaries provides insurance premium financing and membership association services. Unico has conducted the majority of its operations through its subsidiary Crusader Insurance Company since 1985. For more information concerning Crusader Insurance Company, please visit Crusader's Web site at www.crusaderinsurance.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained herein that are not historical facts are forward-looking. These statements, which may be identified by forward-looking words or phrases such as "anticipate," "appears," "believe," "expect," "intend," "may," "should," and "would," involve risks and uncertainties, many of which are beyond the control of the Company. Such risks and uncertainties could cause actual results to differ materially from these forward-looking statements. Factors which could cause actual results to differ materially include underwriting actions not being effective, rate increases for coverages not being sufficient, premium rate adequacy relating to competition or regulation, actual versus estimated claim experience, regulatory changes or developments, unforeseen calamities, general market conditions, and the Company's ability to introduce new profitable products.

UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


($ in thousands)

 
March 31 December 31
2013 2012
(Unaudited)

ASSETS

Investments
Available for sale:

Fixed maturities, at fair value (amortized cost: March 31, 2013

$26,190; December 31, 2012 $33,444)

$ 26,302 $ 33,628
Short-term investments, at cost   93,338   86,256
Total Investments 119,640 119,884
Cash 170 161
Accrued investment income 48 156
Receivables, net 5,564 5,745
Reinsurance recoverable:
Paid losses and loss adjustment expenses 506 305
Unpaid losses and loss adjustment expenses 5,731 6,584
Deferred policy acquisition costs 3,843 3,785
Property and equipment, net 1,049 857
Deferred income taxes 1,794 1,894
Other assets   685   637
Total Assets $ 139,030 $ 140,008
 

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES

Unpaid losses and loss adjustment expenses $ 49,463 $ 49,785
Unearned premiums 15,900 16,030
Advance premium and premium deposits 613 756
Income taxes payable 9 -
Accrued expenses and other liabilities   2,682   3,041
Total Liabilities $ 68,667 $ 69,612
 
Commitments and contingencies
 

STOCKHOLDERS' EQUITY

Common stock, no par - authorized 10,000,000 shares; issued and
outstanding shares 5,341,147 at March 31, 2013, and 5,341,147 at
December 31, 2012 $ 3,691 $ 3,686
Accumulated other comprehensive income 74 121
Retained earnings   66,598   66,589
Total Stockholders' Equity $ 70,363 $ 70,396
 
Total Liabilities and Stockholders' Equity $ 139,030 $ 140,008
 

UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS


(UNAUDITED)

($ in thousands, except per share)

 
Three Months Ended

March 31

2013   2012

REVENUES

Insurance Company Revenues
Net premium earned $ 6,690 $ 6,715
Investment income 121 582
Other income   234   112
Total Insurance Company Revenues 7,045 7,409
 
Other Revenues from Insurance Operations
Gross commissions and fees 882 906
Investment income - -
Finance charges and fees earned 20 16
Other income   3   4
Total Revenues   7,950   8,335
 

EXPENSES

Losses and loss adjustment expenses 4,557 3,722
Policy acquisition costs 1,434 1,762
Salaries and employee benefits 1,263 1,359
Commissions to agents/brokers 61 60
Other operating expenses   579   659
Total Expenses   7,894   7,562
 
Income Before Taxes 56 773
Income Tax Expense   48   273
Net Income $ 8 $ 500
 
 
 
PER SHARE DATA:
Basic
Earnings Per Share $ 0.00 $ 0.09
Weighted Average Shares 5,341,147 5,341,742
 
Diluted
Earnings Per Share $ 0.00 $ 0.09
Weighted Average Shares 5,344,463 5,360,782
 

UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS


(UNAUDITED)

($ in thousands)

 
For the Three Months Ended
March 31
2013     2012  
Cash flows from operating activities:
Net Income $ 8 $ 500
Adjustments to reconcile net income to net cash from operations
Depreciation and amortization 53 13
Bond amortization, net 5 27
Non-cash stock based compensation 6 6
Changes in assets and liabilities
Net receivables and accrued investment income 288 (573 )
Reinsurance recoverable 653 256
Deferred policy acquisition costs (58 ) 82
Other assets 36 (44 )
Unpaid losses and loss adjustment expenses (322 ) (2,002 )
Unearned premiums (130 ) 107
Advance premium and premium deposits (143 ) 528
Accrued expenses and other liabilities (359 ) 106
Income taxes current/deferred   50     274  
Net Cash Provided (Used) by Operating Activities   87     (720 )
 
Cash flows from investing activities:
Purchase of fixed maturity investments (699 ) (150 )
Proceeds from maturity of fixed maturity investments 7,948 1,544
Net increase in short-term investments (7,082 ) (875 )
Additions to property and equipment   (245 )   (103 )
Net Cash (Used) Provided by Investing Activities   (78 )   416  
 
Cash flows from financing activities:
Repurchase and adjustment of common stock   -     (7 )
Net Cash Used by Financing Activities   -     (7 )
 
Net increase (decrease) in cash 9 (311 )
Cash at Beginning of period   161     467  
Cash at End of Period $ 170   $ 156  
 
Supplemental cash flow information
Cash paid during the period for:
Interest - -
Income taxes - $ 9
 



Unico American Corporation
Lester A. Aaron
Chief Financial Officer
818-591-9800

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:

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