Unico American Corporation Reports First Quarter 2013 Financial Results

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Updated

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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