Unico American Corporation Reports Fourth Quarter and Full Year 2015 Financial Results

CALABASAS, Calif.--()--Unico American Corporation (NASDAQ: UNAM) (“Unico,” the “Company”), announced today its consolidated financial results for the three and twelve months ended December 31, 2015. For the three months ended December 31, 2015, revenues were $8.7 million and net loss was $0.2 million ($0.05 diluted loss per share) compared with revenues of $7.6 million and net loss of $0.05 million ($0.01 diluted loss per share) for the three months ended December 31, 2014. For the twelve months ended December 31, 2015, revenues were $33.3 million and net loss was $1.2 million ($0.22 diluted loss per share) compared with revenue of $30.5 million and net income of $0.8 million ($0.16 diluted income per share) for the twelve months ended December 31, 2014.

Stockholders’ equity was $70.3 million as of December 31, 2015, or $13.23 per common share including unrealized after-tax investment losses of $0.03 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 Calabasas, 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,” “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)
 
      December 31       December 31
2015 2014
(Unaudited)

ASSETS

Investments
Available for sale:

Fixed maturities, at fair value (amortized cost: $82,203 at December 31, 2015, and $35,153 at December 31, 2014)

$

82,161

$

35,159

Short-term investments, at fair value   15,641     72,259
Total Investments 97,802 107,418
Cash 334 309
Accrued investment income 86 43
Receivables, net 5,505 5,170
Reinsurance recoverable:
Paid losses and loss adjustment expenses 751 201
Unpaid losses and loss adjustment expenses 9,637 5,163
Deferred policy acquisition costs 4,233 3,883
Property and equipment, net 10,221 10,510
Deferred income taxes 1,334 1,519
Other assets   10,268     1,800
Total Assets $ 140,171   $ 136,016

 

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES

Unpaid losses and loss adjustment expenses $ 49,094 $ 44,397
Unearned premiums 18,079 16,607
Advance premium and premium deposits 212 250
Accrued expenses and other liabilities   2,443     2,986
Total Liabilities $ 69,828   $ 64,240
 
Commitments and contingencies
 

STOCKHOLDERS' EQUITY

Common stock, no par – authorized 10,000,000 shares; issued and outstanding shares 5,315,945 at December 31, 2015, and 5,341,147 at December 31, 2014

$ 3,743 $ 3,732
Accumulated other comprehensive income (loss) (27 ) 4
Retained earnings   66,627     68,040
Total Stockholders’ Equity $ 70,343   $ 71,776
 
Total Liabilities and Stockholders' Equity $ 140,171   $ 136,016
 
 
UNICO AMERICAN CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
($ in thousands, except per share)
 
      Three Months Ended       Twelve Months Ended
December 31 December 31
2015       2014 2015       2014
(Unaudited) (Unaudited) (Unaudited)

REVENUES

Insurance company operation:
Net premium earned $ 7,717 $ 6,814 $ 29,574 $ 26,373
Investment income 165 68 479 161
Net realized investment losses (7 ) - (7 ) -
Other income   65     22     375     932
Total Insurance Company Operation 7,940 6,904 30,421 27,466
 
Other insurance operations:
Gross commissions and fees 708 721 2,774 2,918
Investment income - - - 1
Finance fees earned 18 17 66 67
Other income   2     2     4     18
Total Revenues   8,668     7,644     33,265     30,470
 

EXPENSES

Losses and loss adjustment expenses 5,289 3,921 19,163 14,617
Policy acquisition costs 1,713 1,527 6,465 5,986
Salaries and employee benefits 1,184 1,213 4,853 4,992
Commissions to agents/brokers 40 46 167 193
Other operating expenses   800     1,007     4,351     3,386
Total Expenses   9,026     7,714     34,999     29,174
 
Income (loss) before taxes (358 ) (70 ) (1,734 ) 1,296
Income tax expense (benefit)   (110 )   (22 )   (552 )   450
Net Income (Loss) $ (248 ) $ (48 ) $ (1,182 ) $ 846
 
 
 

PER SHARE DATA:

Basic
Earnings (loss) per share $ (0.05 ) $ (0.01 ) $ (0.22 ) $ 0.16
Weighted average shares 5,326,301 5,341,147 5,335,540 5,341,147
Diluted
Earnings (loss) per share $ (0.05 ) $ (0.01 ) $ (0.22 ) $ 0.16
Weighted average shares 5,326,301 5,341,147 5,335,540 5,346,552
 
 
UNICO AMERICAN CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in thousands)
 
      For the Twelve Months Ended
December 31
2015       2014
(Unaudited)
Cash flows from operating activities:
Net income (loss) $ (1,182 ) $ 846
Adjustments to reconcile net income (loss) to net cash from operations:
Depreciation and amortization 341 540
Bond amortization, net (19 ) (5 )
Non-cash stock based compensation 23 23
Loss on asset impairment 1,287 -
Changes in assets and liabilities:
Net receivables and accrued investment income (378 ) (51 )
Reinsurance recoverable (5,024 ) (752 )
Deferred policy acquisition costs (350 ) (247 )
Other assets (7,706 ) 64
Unpaid losses and loss adjustment expenses 4,697 520
Unearned premiums 1,472 1,346
Advance premium and premium deposits (38 ) (214 )
Accrued expenses and other liabilities (543 ) 632
Income taxes current/deferred   (561 )   (234 )
Net Cash Provided (Used) by Operating Activities   (7,981 )   2,468  
 
Cash flows from investing activities:
Purchase of fixed maturity investments (57,930 ) (25,303 )
Proceeds from maturity of fixed maturity investments 10,899 2,100
Net decrease in short-term investments 56,618 21,548
Additions to property and equipment   (1,339 )   (880 )
Net Cash (Used) Provided by Investing Activities   8,248     (2,535 )
 
Cash flows from financing activities:
Repurchase of common stock   (242 )   -  
Net Cash Used by Financing Activities   (242 )   -  
 
Net (decrease) increase in cash 25 (67 )
Cash at beginning of period   309     376  
Cash at End of Period $ 334   $ 309  
 
Supplemental Cash Flow Information
Cash paid during the period for income taxes $ 9 $ 684
 

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