Exhibit 99.1

 

 

 

NEWS RELEASE

 

 

CONTACT: Lester A. Aaron

Chief Financial Officer

818-591-9800

 

 

UNICO AMERICAN CORPORATION REPORTS

FOURTH QUARTER AND FULL YEAR 2012 FINANCIAL RESULTS

 

Woodland Hills, CA, March 28, 2013

– Unico American Corporation (NASDAQ – “UNAM”) (“Unico,” the “Company”), announced today its consolidated financial results for the three and twelve months ended December 31, 2012. For the three months ended December 31, 2012, revenues were $7.9 million and net income was $0.6 million ($0.10 diluted income per share) compared with revenues of $8.3 million and net income of $0.6 million ($0.12 diluted income per share) for the three months ended December 31, 2011. For the twelve months ended December 31, 2012, revenues were $32.8 million and net income was $2.0 million ($0.36 diluted income per share) compared with revenue of $34.6 million and net income of $3.7 million ($0.70 diluted income per share) for the twelve months ended December 31, 2011.

 

Stockholders’ equity was $70.4 million as of December 31, 2012, or $13.18 per common share including unrealized after-tax investment gains of $0.1 million, compared to Stockholders’ equity of $75.8 million as of December 31, 2011, or $14.20 per common share including unrealized after-tax investment gains of $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,” “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)

 

    December 31    December 31 
    2012    2011 
    (Unaudited)      
ASSETS          
Investments          
   Available for sale:          
Fixed maturities, at fair value (amortized cost: December 31, 2012 $33,444; December 31, 2011 $89,903)  $33,628   $91,357 
   Short-term investments, at cost   86,256    38,139 
Total Investments   119,884    129,496 
Cash   161    467 
Accrued investment income   156    681 
Receivables, net   5,745    5,304 
Reinsurance recoverable:          
   Paid losses and loss adjustment expenses   305    60 
   Unpaid losses and loss adjustment expenses   6,584    7,975 
Deferred policy acquisition costs   3,785    4,158 
Property and equipment, net   857    231 
Deferred income taxes   1,894    1,394 
Other assets   637    609 
Total Assets  $140,008   $150,375 
           
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES          
Unpaid losses and loss adjustment expenses  $49,785   $54,487 
Unearned premiums   16,030    15,912 
Advance premium and premium deposits   756    818 
Accrued expenses and other liabilities   3,041    3,310 
Total Liabilities   $69,612   $74,527 
           
Commitments and contingencies          
           
STOCKHOLDERS'  EQUITY          
Common stock, no par – authorized 10,000,000 shares; issued and Outstanding shares 5,341,147 at December 31, 2012, and 5,341,992 at December 31, 2011  $3,686   $3,611 
Accumulated other comprehensive income   121    960 
Retained earnings   66,589    71,277 
Total Stockholders’ Equity  $70,396   $75,848 
           
Total Liabilities and Stockholders' Equity  $140,008   $150,375 

 

 
 

 

UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

($ in thousands, except per share)

 

   Three Months Ended  Twelve Months Ended
   December 31  December 31
   2012  2011  2012 2011
   (Unaudited)  (Unaudited)  (Unaudited)   
REVENUES                    
Insurance Company Revenues                     
  Net premium earned  $6,882   $6,677   $27,318   $26,724 
  Investment income   169    624    1,528    2,897 
  Other income   52    86    490    1,171 
     Total Insurance Company Revenues   7,103    7,387    29,336    30,792 
                     
Other Revenues from Insurance Operations                    
  Gross commissions and fees   803    907    3,339    3,698 
  Investment income   —      —      1    2 
  Finance charges and fees earned   19    16    70    71 
  Other income   1    2    11    14 
     Total Revenues   7,926    8,312    32,757    34,577 
                     
EXPENSES                    
Losses and loss adjustment expenses   3,613    3,771    15,234    14,387 
Policy acquisition costs   1,616    1,758    6,744    7,081 
Salaries and employee benefits   1,262    1,064    5,180    4,335 
Commissions to agents/brokers   60    58    236    225 
Other operating expenses   626    671    2,508    2,799 
     Total Expenses   7,177    7,322    29,902    28,827 
                     
Income Before Taxes   749    990    2,855    5,750 
Income Tax Expense   198    346    901    2,010 

Net Income 

  $551   $644   $1,954   $3,740 
                     
                     
                     
PER SHARE DATA:                    
Basic                    
    Earnings Per Share  $0.10   $0.12   $0.37   $0.70 
    Weighted Average Shares   5,333    5,339    5,339    5,336 
Diluted                    
    Earnings Per Share  $0.10   $0.12   $0.36   $0.70 
    Weighted Average Shares   5,342    5,361    5,353    5,359 

 

 

 
 

 

UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in thousands)

 

   For the Twelve Months Ended
      December 31
   2012  2011
   (Unaudited)   
Cash flows from operating activities:          
   Net Income  $1,954   $3,740 
   Adjustments to reconcile net income to net cash from operations          
      Depreciation and amortization   139    59 
      Bond amortization, net   78    154 
      Non-cash stock based compensation expense   23    31 
      Tax benefit from disqualified incentive stock options   (16)   (3)
   Changes in assets and liabilities          
      Net receivables and accrued investment income   84    (929)
      Reinsurance recoverable   1,146    3,830 
      Deferred policy acquisition costs   373    142 
      Other assets   (122)   161 
      Unpaid losses and loss adjustment expenses   (4,702)   (7,073)
      Unearned premiums   118    (17)
      Advance premium and premium deposits   (62)   (12)
      Accrued expenses and other liabilities   (269)   (1,259)
      Income taxes current/deferred   42    103 
Net Cash Used by Operating Activities   (1,214)   (1,073)
           
Cash flows from investing activities          
Purchase of fixed maturity investments   (1,700)   (14,794)
Proceeds from maturity of fixed maturity investments   58,080    48,039 
Net increase in short-term investments   (48,117)   (31,674)
Additions to property and equipment   (765)   (91)
Net Cash Provided by Investing Activities   7,498    1,480 
           
Cash flows from financing activities          
Repurchase of common stock   (243)   (11)
Dividends paid to stockholders   (6,409)   —   
Proceeds from exercise of stock options   46    23 
Tax benefit from disqualified incentive stock options   16    3 
Net Cash (Used) Provided by Financing Activities   (6,590)   15 
           
Net (decrease) increase in cash   (306)   422 
Cash at beginning of period   467    45 
Cash at End of Period  $161   $467 
           
Supplemental Cash Flow Information          
Cash paid during the period for:          
Interest   —      —   
Income taxes  $859   $1,909 
           
Supplemental schedule of non-cash investing activities          
      Write-offs of fixed assets   —     $(1,602)

 


The following information was filed by Unico American Corp (UNAM) on Thursday, March 28, 2013 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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