Unico American Corporation Reports First Quarter 2015 Financial Results

WOODLAND HILLS, Calif.--()--Unico American Corporation (NASDAQ – “UNAM”) (“Unico,” the “Company”) announced today its consolidated financial results for the three months ended March 31, 2015. For the three months ended March 31, 2015, revenues were $7.8 million and net loss was $0.4 million ($0.07 diluted loss per share) compared with revenues of $7.4 million and net income of $0.6 million ($0.11 diluted income per share) for the three months ended March 31, 2014.

Stockholders’ equity was $71.4 million as of March 31, 2015, or $13.38 per common share including unrealized after-tax investment gains of $0.06 million, compared to stockholders’ equity of $71.8 million as of December 31, 2014, or $13.44 per common share including unrealized after- tax investment gains of $0.004 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 website 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)
 
March 31 December 31

2015

2014

(Unaudited)

ASSETS

Investments
Available for sale:

Fixed maturities, at fair value (amortized cost: March 31, 2015 $44,553; December 31, 2014 $35,153)

$44,643 $35,159
Short-term investments, at fair value 62,111 72,259
Total Investments 106,754 107,418
Cash 149 309
Accrued investment income 41 43
Receivables, net 5,508 5,170
Reinsurance recoverable:
Paid losses and loss adjustment expenses 393 201
Unpaid losses and loss adjustment expenses 4,786 5,163
Deferred policy acquisition costs 4,058 3,883
Property and equipment, net 10,578 10,510
Deferred income taxes 1,395 1,519
Other assets 1,894 1,800
Total Assets $135,556 $136,016
 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

LIABILITIES

Unpaid losses and loss adjustment expenses $43,485 $44,397
Unearned premiums 17,266 16,607
Advance premium and premium deposits 390 250
Income taxes payable 9 -
Accrued expenses and other liabilities 2,966 2,986
Total Liabilities $64,116 $64,240
 
Commitments and contingencies
 

STOCKHOLDERS' EQUITY

Common stock, no par – authorized 10,000,000 shares; issued and outstanding shares 5,341,147 at March 31, 2015, and 5,341,147 at December 31, 2014

$3,738 $3,732
Accumulated other comprehensive income 59 4
Retained earnings 67,643 68,040
Total Stockholders’ Equity $71,440 $71,776
 
Total Liabilities and Stockholders' Equity $135,556 $136,016
 
 
UNICO AMERICAN CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
($ in thousands, except per share data)
 
Three Months Ended

March 31

2015

 

2014

REVENUES

Insurance Company Revenues
Net premium earned $6,965 $6,388
Investment income 88 31
Other income 72 256

Total Insurance Company Revenues

7,125 6,675
 
Other Revenues from Insurance Operations
Gross commissions and fees 691 735
Finance fees earned 16 17
Other income - 13
Total Revenues 7,832 7,440
 

EXPENSES

Losses and loss adjustment expenses 4,894 2,892
Policy acquisition costs 1,493 1,477
Salaries and employee benefits 1,248 1,282
Commissions to agents/brokers 44 44
Other operating expenses 744 839
Total Expenses 8,423 6,534
 
Income (Loss) Before Taxes (591) 906
Income Tax Expense (Benefit) (194) 314
Net Income (Loss) $(397) $592
 
 
 
PER SHARE DATA:
Basic
Earnings (loss) per share $(0.07) $0.11
Weighted average shares 5,341,147 5,341,147
 
Diluted
Earnings (loss) per share $(0.07) $0.11
Weighted average shares 5,341,147 5,345,478
 
 
UNICO AMERICAN CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
($ in thousands)
 
Three Months Ended

March 31

2015

 

2014

Cash flows from operating activities:
Net Income (Loss) $(397) $592
Adjustments to reconcile net income to net cash from operations
Depreciation and amortization 117 138
Bond amortization, net (4) (1)
Non-cash stock based compensation 6 6
Changes in assets and liabilities
Net receivables and accrued investment income (336) 51
Reinsurance recoverable 185 (140)
Deferred policy acquisition costs (175) (32)
Other assets 203 120
Unpaid losses and loss adjustment expenses (912) (744)
Unearned premiums 659 (128)
Advance premium and premium deposits 140 25
Accrued expenses and other liabilities (20) 209
Income taxes current/deferred (193) 317
Net Cash Provided (Used) by Operating Activities (727) 413
 
Cash flows from investing activities:
Purchase of fixed maturity investments (10,145) -
Proceeds from maturity of fixed maturity investments 749 200
Net decrease (increase) in short-term investments 10,148 (756)
Additions to property and equipment (185) (136)
Net Cash Provided (Used) by Investing Activities 567 (692)
 
Cash flows from financing activities:
Net Cash Provided by Financing Activities - -
 
Net decrease in cash (160) (279)
Cash at beginning of period 309 376
Cash at End of Period $149 $97
 
Supplemental cash flow information
Cash paid during the period for:
Interest - -
Income taxes - -

Contacts

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

Contacts

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