WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Unico American Corporation (NASDAQ: UNAM) (“Unico,” the “Company”), announced today its consolidated financial results for the three months ended March 31, 2014. For the three months ended March 31, 2014, revenues were $7.4 million and net income was $0.6 million ($0.11 diluted income per share) compared with revenues of $7.9 million and net income of $0.1 million ($0.00 diluted income per share) for the three months ended March 31, 2013.
Stockholders’ equity was $71.5 million as of March 31, 2014, or $13.39 per common share including unrealized after-tax investment losses of $0.001 million, compared to stockholders’ equity of $70.9 million as of December 31, 2013, or $13.27 per common share including unrealized after-tax investment losses of $0.006 million.
Headquartered in Woodland Hills, California, Unico is an insurance holding company that underwrites property and casualty insurance through its insurance company subsidiary; provides property, casualty, and health insurance through its agency subsidiaries; and through its other subsidiaries provides insurance premium financing and membership association services. Unico has conducted the majority of its operations through its subsidiary Crusader Insurance Company since 1985. For more information concerning Crusader Insurance Company, please visit Crusader’s website at www.crusaderinsurance.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained herein that are not historical facts are forward-looking. These statements, which may be identified by forward-looking words or phrases such as “anticipate,” “appears,” “believe,” ”expect,” “intend,” “may,” “should,” and “would,” involve risks and uncertainties, many of which are beyond the control of the Company. Such risks and uncertainties could cause actual results to differ materially from these forward-looking statements. Factors which could cause actual results to differ materially include underwriting actions not being effective, rate increases for coverages not being sufficient, premium rate adequacy relating to competition or regulation, actual versus estimated claim experience, regulatory changes or developments, unforeseen calamities, general market conditions, and the Company’s ability to introduce new profitable products.
Financial Tables Follow –
| UNICO AMERICAN CORPORATION | ||||||||
|
AND SUBSIDIARIES |
||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| ($ in thousands) | ||||||||
| March 31 | December 31 | |||||||
| 2014 | 2013 | |||||||
| (Unaudited) | ||||||||
|
ASSETS |
||||||||
| Investments | ||||||||
| Available for sale: | ||||||||
|
Fixed maturities, at fair value (amortized cost: March 31, 2014 $11,745; December 31, 2013 $11,945) |
$ | 11,743 | $ | 11,936 | ||||
| Short-term investments, at fair value | 94,563 | 93,807 | ||||||
| Total Investments | 106,306 | 105,743 | ||||||
| Cash | 97 | 376 | ||||||
| Accrued investment income | 11 | 5 | ||||||
| Receivables, net | 5,099 | 5,157 | ||||||
| Reinsurance recoverable: | ||||||||
| Paid losses and loss adjustment expenses | 21 | 184 | ||||||
| Unpaid losses and loss adjustment expenses | 4,731 | 4,428 | ||||||
| Deferred policy acquisition costs | 3,668 | 3,636 | ||||||
| Property and equipment, net | 10,168 | 10,170 | ||||||
| Deferred income taxes | 1,446 | 1,373 | ||||||
| Other assets | 1,414 | 1,781 | ||||||
| Total Assets | $ | 132,961 | $ | 132,853 | ||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
|
LIABILITIES |
||||||||
| Unpaid losses and loss adjustment expenses | $ | 43,133 | $ | 43,877 | ||||
| Unearned premiums | 15,133 | 15,261 | ||||||
| Advance premium and premium deposits | 490 | 465 | ||||||
| Income taxes payable | 144 | - | ||||||
| Accrued expenses and other liabilities | 2,563 | 2,354 | ||||||
| Total Liabilities | $ | 61,463 | $ | 61,957 | ||||
| Commitments and contingencies | ||||||||
|
STOCKHOLDERS' EQUITY |
||||||||
|
Common stock, no par – authorized 10,000,000 shares; issued and outstanding shares 5,341,147 at March 31, 2014, and 5,341,147 at December 31, 2013 |
$ | 3,714 | $ | 3,709 | ||||
| Accumulated other comprehensive loss | (1 | ) | (6 | ) | ||||
| Retained earnings | 67,785 | 67,193 | ||||||
| Total Stockholders’ Equity | $ | 71,498 | $ | 70,896 | ||||
| Total Liabilities and Stockholders' Equity | $ | 132,961 | $ | 132,853 | ||||
| UNICO AMERICAN CORPORATION | ||||||
| AND SUBSIDIARIES | ||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
| (UNAUDITED) | ||||||
| (In thousands, except per share) | ||||||
| Three Months Ended | ||||||
| March 31 | ||||||
| 2014 | 2013 | |||||
|
REVENUES |
||||||
| Insurance Company Revenues | ||||||
| Net premium earned | $ | 6,388 | $ | 6,690 | ||
| Investment income | 31 | 121 | ||||
| Other income | 256 | 234 | ||||
| Total Insurance Company Revenues | 6,675 | 7,045 | ||||
| Other Revenues from Insurance Operations | ||||||
| Gross commissions and fees | 735 | 882 | ||||
| Investment income | - | - | ||||
| Finance fees earned | 17 | 20 | ||||
| Other income | 13 | 3 | ||||
| Total Revenues | 7,440 | 7,950 | ||||
|
EXPENSES |
||||||
| Losses and loss adjustment expenses | 2,892 | 4,557 | ||||
| Policy acquisition costs | 1,477 | 1,434 | ||||
| Salaries and employee benefits | 1,282 | 1,263 | ||||
| Commissions to agents/brokers | 44 | 61 | ||||
| Other operating expenses | 839 | 579 | ||||
| Total Expenses | 6,534 | 7,894 | ||||
| Income Before Taxes | 906 | 56 | ||||
| Income Tax Expense | 314 | 48 | ||||
| Net Income | $ | 592 | $ | 8 | ||
| PER SHARE DATA: | ||||||
| Basic | ||||||
| Earnings Per Share | $ | 0.11 | $ | 0.00 | ||
| Weighted Average Shares | 5,341,147 | 5,341,147 | ||||
| Diluted | ||||||
| Earnings Per Share | $ | 0.11 | $ | 0.00 | ||
| Weighted Average Shares | 5,345,478 | 5,344,463 | ||||
| UNICO AMERICAN CORPORATION | ||||||||
| AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (UNAUDITED) | ||||||||
| ($ in thousands) | ||||||||
| For the Three Months Ended | ||||||||
| March 31 | ||||||||
| 2014 | 2013 | |||||||
| Cash flows from operating activities: | ||||||||
| Net Income | $ | 592 | $ | 8 | ||||
| Adjustments to reconcile net income to net cash from operations | ||||||||
| Depreciation and amortization | 138 | 53 | ||||||
| Bond amortization, net | (1 | ) | 5 | |||||
| Non-cash stock based compensation | 6 | 6 | ||||||
| Changes in assets and liabilities | ||||||||
| Net receivables and accrued investment income | 51 | 288 | ||||||
| Reinsurance recoverable | (140 | ) | 653 | |||||
| Deferred policy acquisition costs | (32 | ) | (58 | ) | ||||
| Other assets | 120 | 36 | ||||||
| Unpaid losses and loss adjustment expenses | (744 | ) | (322 | ) | ||||
| Unearned premiums | (128 | ) | (130 | ) | ||||
| Advance premium and premium deposits | 25 | (143 | ) | |||||
| Accrued expenses and other liabilities | 209 | (359 | ) | |||||
| Income taxes current/deferred | 317 | 50 | ||||||
| Net Cash Provided by Operating Activities | 413 | 87 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchase of fixed maturity investments | - | (699 | ) | |||||
| Proceeds from maturity of fixed maturity investments | 200 | 7,948 | ||||||
| Net increase in short-term investments | (756 | ) | (7,082 | ) | ||||
| Additions to property and equipment | (136 | ) | (245 | ) | ||||
| Net Cash Used by Investing Activities | (692 | ) | (78 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Net Cash Provided (Used) by Financing Activities | - | - | ||||||
| Net (decrease) increase in cash | (279 | ) | 9 | |||||
| Cash at beginning of period | 376 | 161 | ||||||
| Cash at End of Period | $ | 97 | $ | 170 | ||||
| Supplemental cash flow information | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | - | - | ||||||
| Income taxes | - | - | ||||||