Unico American Corporation Reports Second Quarter 2013 Financial Results

Unico American Corporation Reports Second 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 and six months ended June 30, 2013. For the three months ended June 30, 2013, revenues were $7.8 million and net income was $0.3 million ($0.05 diluted income per share) compared with revenues of $8.3 million and net income of $0.2 million ($0.03 diluted income per share) for the three months ended June 30, 2012. For the six months ended June 30, 2013, revenues were $15.7 million and net income was $0.3 million ($0.05 diluted income per share) compared with revenues of $16.6 million and net income of $0.7 million ($0.12 diluted income per share) for the six months ended June 30, 2012.


As of June 30, 2013, the Company had cash and investments (at amortized cost) of $118.6 million. $23.9 million, or 20% of these investments were fixed maturity investments, and 67% of those fixed maturity investments were U.S. treasury securities.

Stockholders' equity was $70.6 million as of June 30, 2013, or $13.21 per common share including unrealized gains, net of tax, of $0.02 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 the 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)

         
June 30December 31
20132012
(Unaudited)

ASSETS

Investments
Available for sale:

Fixed maturities, at fair value (amortized cost: June 30,
2013 $23,894; December 31, 2012 $33,444)

$23,932$33,628
Short-term investments, at fair value 94,620 86,256
Total Investments118,552119,884
Cash88161
Accrued investment income113156
Receivables, net5,9725,745
Reinsurance recoverable:
Paid losses and loss adjustment expenses14305
Unpaid losses and loss adjustment expenses5,0756,584
Deferred policy acquisition costs3,8183,785
Property and equipment, net1,175857
Deferred income taxes1,7641,894
Other assets 875 637
Total Assets$137,446$140,008
 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

LIABILITIES

Unpaid losses and loss adjustment expenses$47,678$49,785
Unearned premiums16,20716,030
Advance premium and premium deposits577756
Accrued expenses and other liabilities 2,414 3,041
Total Liabilities$66,876$69,612
 
Commitments and contingencies
 

STOCKHOLDERS' EQUITY

Common stock, no par - authorized 10,000,000 shares; issued and
outstanding shares 5,341,147 at June 30, 2013, and 5,341,147 at
December 31, 2012

$3,697$3,686
Accumulated other comprehensive income25121
Retained earnings 66,848 66,589
Total Stockholders' Equity$70,570$70,396
 
Total Liabilities and Stockholders' Equity$137,446$140,008
 

UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS


(UNAUDITED)

(In thousands, except per share)

       
Three Months EndedSix Months Ended
June 30June 30
2013   20122013   2012

REVENUES

Insurance company revenues
Net premium earned$6,758$6,781$13,447$13,496
Investment income1114742321,056
Other income 46 184 281 296
Total Insurance Company Revenues6,9157,43913,96014,848
 
Other revenues from insurance operations
Gross commissions and fees8298091,7121,715
Investment income1111
Finance charges and fees earned17163732
Other income 1 2 3 6
Total Revenues 7,763 8,267 15,713 16,602
 

EXPENSES

Losses and loss adjustment expenses3,8914,3268,4478,048
Policy acquisition costs1,5441,7072,9783,468
Salaries and employee benefits1,2861,3052,5502,665
Commissions to agents/brokers6257123117
Other operating expenses 594 673 1,173 1,332
Total Expenses 7,377 8,068 15,271 15,630
 
Income Before Taxes386199442972
Income tax expense 136 42 184 315
Net Income$250$157$258$657
 
 

PER SHARE DATA:

Basic
Earnings Per Share$0.05$0.03$0.05$0.12
Weighted Average Shares5,3415,3445,3415,343
Diluted
Earnings Per Share$0.05$0.03$0.05$0.12
Weighted Average Shares5,3455,3605,3455,361
 
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UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS


(UNAUDITED)

($ in thousands)

     
For the Six Months Ended
June 30
 2013      2012 
Cash flows from operating activities:
Net Income$258$657
Adjustments to reconcile net income to net cash from operations
Depreciation and amortization10740
Bond amortization, net454
Non-cash stock based compensation1212
Changes in assets and liabilities
Net receivables and accrued investment income(185)(651)
Reinsurance recoverable1,800(652)
Deferred policy acquisitions costs(32)132
Other assets(86)(779)
Unpaid losses and loss adjustment expenses(2,107)(1,896)
Unearned premium177735
Advance premium and premium deposits(179)207
Accrued expenses and other liabilities(626)(232)
Income taxes current/deferred 28  (191)