Unico American Corporation Reports First Quarter 2013 Financial Results

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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 31December 31
20132012
(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 Investments119,640119,884
Cash170161
Accrued investment income48156
Receivables, net5,5645,745
Reinsurance recoverable:
Paid losses and loss adjustment expenses506305
Unpaid losses and loss adjustment expenses5,7316,584
Deferred policy acquisition costs3,8433,785
Property and equipment, net1,049857
Deferred income taxes1,7941,894
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 premiums15,90016,030
Advance premium and premium deposits613756
Income taxes payable9-
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 income74121
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 income121582
Other income 234 112
Total Insurance Company Revenues7,0457,409
 
Other Revenues from Insurance Operations
Gross commissions and fees882906
Investment income--
Finance charges and fees earned2016
Other income 3 4
Total Revenues 7,950 8,335
 

EXPENSES

Losses and loss adjustment expenses4,5573,722
Policy acquisition costs1,4341,762
Salaries and employee benefits1,2631,359
Commissions to agents/brokers6160
Other operating expenses 579 659
Total Expenses 7,894 7,562
 
Income Before Taxes56773
Income Tax Expense 48 273
Net Income$8$500
 
 
 
PER SHARE DATA:
Basic
Earnings Per Share$0.00$0.09
Weighted Average Shares5,341,1475,341,742
 
Diluted
Earnings Per Share$0.00$0.09
Weighted Average Shares5,344,4635,360,782
 

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 amortization5313
Bond amortization, net527
Non-cash stock based compensation66
Changes in assets and liabilities
Net receivables and accrued investment income288(573)
Reinsurance recoverable653256
Deferred policy acquisition costs(58)82
Other assets36(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 investments7,9481,544
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 cash9(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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