Unico American Corporation Reports Third Quarter 2012 Financial Results

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Unico American Corporation Reports Third Quarter 2012 Financial Results

WOODLAND HILLS, Calif.--(BUSINESS WIRE)-- Unico American Corporation (NAS: UNAM) ("Unico," the "Company") announced today its consolidated financial results for the three and nine months ended September 30, 2012. For the three months ended September 30, 2012, revenues were $8.2 million and net income was $0.7 million ($0.14 diluted income per share) compared with revenues of $9.1 million and net income of $1.3 million ($0.24 diluted income per share) for the three months ended September 30, 2011. For the nine months ended September 30, 2012, revenues were $24.8 million and net income was $1.4 million ($0.26 diluted income per share) compared with revenues of $26.3 million and net income of $3.1 million ($0.58 diluted income per share) for the nine months ended September 30, 2011.

As of September 30, 2012, the Company had cash and investments (at amortized cost) of $124.6 million. $46.5 million, or 37% of these investments were fixed maturity investments, and 76% of those fixed maturity investments were U.S. treasury securities.


Stockholders' equity was $75.2 million as of September 30, 2012, or $14.11 per common share including unrealized gains, net of tax, of $0.2 million, compared to stockholders' equity of $75.8 million as of December 31, 2011, or $14.20 per common share including unrealized gains, net of tax, of $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.

Financial Tables Follow -

 
UNICO AMERICAN CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
($ in thousands)
 

 

 September 30 December 31

2012

2011

(Unaudited)

ASSETS

Investments
Available for sale:

Fixed maturities, at fair value (amortized cost: September 30, 2012 $46,499; December 31, 2011 $89,903)

$46,797$91,357
Short-term investments, at fair value78,04638,139
Total Investments124,843129,496
Cash95467
Accrued investment income270681
Premiums and notes receivable, net6,0205,304
Reinsurance recoverable:
Paid losses and loss adjustment expenses1260
Unpaid losses and loss adjustment expenses7,8147,975
Deferred policy acquisition costs3,9284,158
Property and equipment (net of accumulated depreciation)665231
Deferred income taxes1,8361,394
Other assets1,396609
Total Assets$146,879$150,375
 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

LIABILITIES

Unpaid losses and loss adjustment expenses$51,029$54,487
Unearned premiums16,59115,912
Advance premium and premium deposits930818
Accrued expenses and other liabilities3,1033,310
Total Liabilities$71,653$74,527
 
Commitments and contingencies
 

STOCKHOLDERS' EQUITY

Common stock, no par - authorized 10,000,000 shares;

Issued and outstanding shares 5,329,597 at September 30, 2012; and at December 31, 2011

$3,633$3,611
Accumulated other comprehensive income196960
Retained earnings71,39771,277
Total Stockholders' Equity$75,226$75,848
 
Total Liabilities and Stockholders' Equity$146,879$150,375
 
UNICO AMERICAN CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
($ in thousands, except per share)
 
 Three Months Ended Nine Months Ended

September 30

September 30

2012

 

2011

2012

 

2011

REVENUES

Insurance Company Revenues
Premium earned$8,233$8,022$24,236$24,021
Premium ceded1,2921,3213,7993,974
Net premium earned6,9416,70120,43720,047
Investment income3037331,3592,272
Other income1417464381,086
Total Insurance Company Revenues7,3858,18022,23423,405
 
Other Revenues from Insurance Operations
Gross commissions and fees8218762,5362,791
Investment income-112
Finance charges and fees earned19165155
Other income45912
Total Revenues8,2299,07824,83126,265

 

EXPENSES

Losses and loss adjustment expenses3,5723,35811,62010,616
Policy acquisition costs1,6601,7785,1285,323
Salaries and employee benefits1,2531,1483,9173,270
Commissions to agents/brokers5955176167
Other operating expenses5507921,8832,128
Total Expenses7,0947,13122,72421,504
 
Income Before Taxes1,1351,9472,1074,761
Income tax expense3896727041,665
Net Income$746$1,275$1,403$3,096
 
 
 

PER SHARE DATA:

Basic
Earnings Per Share$0.14$0.24$0.26$0.58
Weighted Average Shares5,3385,3355,3415,334
Diluted
Earnings Per Share$0.14$0.24$0.26$0.58
Weighted Average Shares5,3505,3585,3575,359
 
UNICO AMERICAN CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
($ in thousands)
 
 For the Nine Months Ended

September 30

2012

 

2011

Cash flows from operating activities:
Net Income$1,403$3,096
Adjustments to reconcile net income to net cash from operations
Depreciation9143
Bond amortization, net69121
Non-cash stock based compensation1723
Changes in assets and liabilities
Premium, notes and investment income receivable(306)(1,109)
Reinsurance recoverable2093,441
Deferred policy acquisitions costs2307
Other assets(779)81
Unpaid losses and loss adjustment expenses(3,457)(6,328)
Unearned premiums678137
Advance premium and premium deposits112392
Accrued expenses and other liabilities(206)(1,108)
Income taxes current/deferred(57)504 
Net Cash Used by Operating Activities(1,996)(700)
 
Cash flows from investing activities:
Purchase of fixed maturity investments(1,300)(6,045)
Proceeds from maturity of fixed maturity investments44,63527,506
Net increase in short-term investments(39,907)(20,676)
Additions to property and equipment(525)(50)
Net Cash Provided by Investing Activities2,903 735 
 
Cash flows from financing activities:
Proceeds from exercise of stock options152
Repurchase of common stock(226)(11)
Dividends paid to stockholders(1,068)- 
Net Cash Used by Financing Activities(1,279)(9)
 
Net (decrease) increase in cash(372)26
Cash at beginning of period467 45 
Cash at End of Period$95 $71 
 
Supplemental Cash Flow Information
Cash paid during the period for:
Interest--
Income taxes$759$1,159
 
Supplemental Schedule of Non-Cash Investing Activities
Write-offs of property and equipment-$1,432



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

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:

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