Unico American Corporation Reports Second Quarter 2015 Financial Results

WOODLAND HILLS, Calif.--()--Unico American Corporation (NASDAQ: UNAM) (“Unico,” the “Company”), announced today its consolidated financial results for the three and six months ended June 30, 2015. For the three months ended June 30, 2015, revenues were $8.3 million and net income was $0.1 million ($0.02 diluted income per share) compared with revenues of $7.6 million and net income of $0.3 million ($0.05 diluted income per share) for the three months ended June 30, 2014. For the six months ended June 30, 2015, revenues were $16.1 million and net loss was $0.3 million ($0.05 diluted loss per share) compared with revenues of $15.1 million and net income of $0.9 million ($0.16 diluted income per share) for the six months ended June 30, 2014.

Stockholders’ equity was $71.5 million as of June 30, 2015, or $13.40 per common share including unrealized gains, net of tax, of $0.05 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 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.

Financial Tables Follow –

UNICO AMERICAN CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
($ in thousands)
 
  June 30   December 31

2015

2014

(Unaudited)

ASSETS

Investments
Available for sale:

Fixed maturities, at fair value (amortized cost: June 30, 2015 $54,537; December 31, 2014 $35,153)

$54,612 $35,159
Short-term investments, at fair value 51,612 72,259
Total Investments 106,224 107,418
Cash 366 309
Accrued investment income 59 43
Receivables, net 6,107 5,170
Reinsurance recoverable:
Paid losses and loss adjustment expenses 342 201
Unpaid losses and loss adjustment expenses 5,485 5,163
Deferred policy acquisition costs 4,270 3,883
Property and equipment, net 10,616 10,510
Deferred income taxes 1,381 1,519
Other assets 2,153 1,800
Total Assets $137,003 $136,016
 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

LIABILITIES

Unpaid losses and loss adjustment expenses $44,232 $44,397
Unearned premiums 18,324 16,607
Advance premium and premium deposits 383 250
Accrued expenses and other liabilities 2,539 2,986
Total Liabilities $65,478 $64,240
 
Commitments and contingencies
 

STOCKHOLDERS' EQUITY

Common stock, no par – authorized 10,000,000 shares; issued and outstanding shares 5,338,943 at June 30, 2015, and 5,341,147 at December 31, 2014

$3,742 $3,732
Accumulated other comprehensive income 50 4
Retained earnings 67,733 68,040
Total Stockholders’ Equity $71,525 $71,776
 
Total Liabilities and Stockholders' Equity $137,003 $136,016
 
UNICO AMERICAN CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
($ in thousands, except per share)
 
  Three Months Ended   Six Months Ended

June 30

June 30

2015

 

2014

2015

 

2014

REVENUES

Insurance company operation:
Net earned premium $7,328 $6,485 $14,293 $12,873
Investment income 98 30 185 61
Other income 168 340 242 596
Total Insurance Company Operation 7,594 6,855 14,720 13,530
 
Other insurance operations:
Gross commissions and fees 702 749 1,393 1,484
Finance fees earned 15 16 31 33
Other income 2 2 2 15
Total Revenues 8,313 7,622 16,146 15,062
 

EXPENSES

Losses and loss adjustment expenses 4,634 3,648 9,527 6,540
Policy acquisition costs 1,600 1,471 3,093 2,948
Salaries and employee benefits 1,166 1,271 2,414 2,553
Commissions to agents/brokers 45 54 89 98
Other operating expenses 686 776 1,431 1,614
Total Expenses 8,131 7,220 16,554 13,753
 
Income (loss) before taxes 182 402 (408) 1,309
Income tax expense (benefit) 70 132 (124) 447
Net Income (Loss) $112 $270 $(284) $862
 
 
 
PER SHARE DATA:
Basic
Earnings (loss) per share $0.02 $0.05 $(0.05) $0.16
Weighted average shares 5,339,392 5,341,147 5,340,270 5,341,147
Diluted
Earnings (loss) per share $0.02 $0.05 $(0.05) $0.16
Weighted average shares 5,342,944 5,345,082 5,340,270 5,345,280
 
UNICO AMERICAN CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
($ in thousands)
 
  Six Months Ended

June 30

2015

 

2014

Cash flows from operating activities:
Net Income (Loss) $(284 ) $862
Adjustments to reconcile net income to net cash from operations:
Depreciation and amortization 234 278
Bond amortization, net (9 ) (2 )
Non-cash stock based compensation 12 12
Changes in assets and liabilities:
Net receivables and accrued investment income (953 ) (806 )
Reinsurance recoverable (463 ) (125 )
Deferred policy acquisitions costs (387 ) (162 )
Other assets (112 ) 296
Unpaid losses and loss adjustment expenses (165 ) 270
Unearned premium 1,717 887
Advance premium and premium deposits 133 (6 )
Accrued expenses and other liabilities (447 ) 32
Income taxes current/deferred (128 ) (82 )
Net Cash Provided (Used) by Operating Activities (852 ) 1,454  
 
Cash flows from investing activities:
Purchase of fixed maturity investments (21,324 ) (100 )
Proceeds from maturity of fixed maturity investments 1,949 400
Net decrease (increase) in short-term investments 20,647 (1,712 )
Additions to property and equipment (340 ) (314 )
Net Cash Provided (Used) by Investing Activities 932   (1,726 )
 
Cash flows from financing activities:
Repurchase of common stock (23 ) -  
Net Cash Used by Financing Activities (23 ) -  
 
Net increase (decrease) in cash 57 (272 )
Cash at beginning of period 309   376  
Cash at End of Period $366   $104  
 
Supplemental Cash Flow Information
Cash paid during the period for:
Interest - -
Income taxes $9 $534

Contacts

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

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Release Summary

UNICO AMERICAN CORPORATION REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS

Unico American Corporation