Exhibit 99.1

 

 

 

NEWS RELEASE

 

 

CONTACT: Lester A. Aaron

Chief Financial Officer

818-591-9800

 

 

UNICO AMERICAN CORPORATION REPORTS

FOURTH QUARTER AND FULL YEAR 2013 FINANCIAL RESULTS

 

Woodland Hills, CA, March 27, 2014

– Unico American Corporation (NASDAQ – “UNAM”) (“Unico,” the “Company”), announced today its consolidated financial results for the three and twelve months ended December 31, 2013. For the three months ended December 31, 2013, revenues were $7.7 million and net income was $0.7 million ($0.13 diluted income per share) compared with revenues of $7.9 million and net income of $0.6 million ($0.10 diluted income per share) for the three months ended December 31, 2012. For the twelve months ended December 31, 2013, revenues were $31.1 million and net income was $0.6 million ($0.11 diluted income per share) compared with revenue of $32.8 million and net income of $2.0 million ($0.36 diluted income per share) for the twelve months ended December 31, 2012.

 

Stockholders’ equity was $70.9 million as of December 31, 2013, or $13.27 per common share including unrealized after-tax investment losses of $0.006 million, compared to Stockholders’ equity of $70.4 million as of December 31, 2012, or $13.18 per common share including unrealized after-tax investment gains of $0.1 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 
    2013    2012 
    (Unaudited)      
ASSETS          
Investments          
   Available for sale:          
     Fixed maturities, at fair value (amortized cost:  December 31, 2013 $11,945; December 31, 2012 $33,444)  $11,936   $33,628 
   Short-term investments, at fair value   93,807    86,256 
Total Investments   105,743    119,884 
Cash   376    161 
Accrued investment income   5    156 
Receivables, net   5,157    5,745 
Reinsurance recoverable:          
   Paid losses and loss adjustment expenses   184    305 
   Unpaid losses and loss adjustment expenses   4,428    6,584 
Deferred policy acquisition costs   3,636    3,785 
Property and equipment, net   10,170    857 
Deferred income taxes   1,373    1,894 
Other assets   1,781    637 
Total Assets  $132,853   $140,008 
           
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES          
Unpaid losses and loss adjustment expenses  $43,877   $49,785 
Unearned premiums   15,261    16,030 
Advance premium and premium deposits   465    756 
Accrued expenses and other liabilities   2,354    3,041 
Total Liabilities   $61,957   $69,612 
           
Commitments and contingencies          
           
STOCKHOLDERS'  EQUITY          
Common stock, no par – authorized 10,000,000 shares; issued and outstanding shares 5,341,147 at December 31, 2013, and 5,341,147 at at December 31, 2012  $3,709   $3,686 
Accumulated other comprehensive (loss) income   (6)   121 
Retained earnings   67,193    66,589 
Total Stockholders’ Equity  $70,896   $70,396 
           
Total Liabilities and Stockholders' Equity  $132,853   $140,008 

 

 

 
 

 

UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

($ in thousands, except per share)

 

   Three Months Ended  Twelve Months Ended
        December 31  December 31
   2013  2012          2013          2012
   (Unaudited)  (Unaudited)  (Unaudited)   
REVENUES                    
Insurance Company Revenues                     
  Net premium earned  $6,657   $6,882   $26,862   $27,318 
  Investment income   31    169    332    1,528 
  Other income   275    52    612    490 
     Total Insurance Company Revenues   6,963    7,103    27,806    29,336 
                     
Other Revenues from Insurance Operations                    
  Gross commissions and fees   749    803    3,240    3,339 
  Investment income   —      —      1    1 
  Finance charges and fees earned   20    19    77    70 
  Other income   3    1    7    11 
     Total Revenues   7,735    7,926    31,131    32,757 
                     
EXPENSES                    
Losses and loss adjustment expenses   2,876    3,613    16,089    15,234 
Policy acquisition costs   1,516    1,616    6,032    6,744 
Salaries and employee benefits   1,234    1,262    5,011    5,180 
Commissions to agents/brokers   54    60    232    236 
Other operating expenses   713    626    2,526    2,508 
     Total Expenses   6,393    7,177    29,890    29,902 
                     
Income before taxes   1,342    749    1,241    2,855 
Income tax expense   629    198    637    901 

Net Income 

  $713   $551   $604   $1,954 
                     
                     
                     
PER SHARE DATA:                    
Basic                    
    Earnings Per Share  $0.13   $0.10   $0.11   $0.37 
    Weighted Average Shares   5,341    5,333    5,341    5,339 
Diluted                    
    Earnings Per Share  $0.13   $0.10   $0.11   $0.36 
    Weighted Average Shares   5,345    5,342    5,344    5,353 

 

 

 
 

 

UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in thousands)

 

   For the Twelve Months Ended
   December 31
   2013  2012
   (Unaudited)   
Cash flows from operating activities:          
   Net Income  $604   $1,954 
   Adjustments to reconcile net income to net cash from operations          
      Depreciation and amortization   307    139 
      Bond amortization, net   4    78 
      Non-cash stock based compensation   23    23 
      Tax benefit from disqualified incentive stock options   —      (16)
   Changes in assets and liabilities          
      Net receivables and accrued investment income   738    84 
      Reinsurance recoverable   2,277    1,146 
      Deferred policy acquisition costs   150    373 
      Other assets   (1,034)   (122)
      Unpaid losses and loss adjustment expenses   (5,908)   (4,702)
      Unearned premiums   (769)   118 
      Advance premium and premium deposits   (291)   (62)
      Accrued expenses and other liabilities   (686)   (269)
      Income taxes current/deferred   476    42 
Net Cash Used by Operating Activities   (4,109)   (1,214)
           
Cash flows from investing activities:          
Purchase of fixed maturity investments   (9,395)   (1,700)
Proceeds from maturity of fixed maturity investments   30,890    58,080 
Net increase in short-term investments   (7,551)   (48,117)
Acquisition of land and building   (9,000)   —   
Additions to property and equipment   (620)   (765)
Net Cash Provided by Investing Activities   4,324    7,498 
           
Cash flows from financing activities:          
Repurchase of common stock   —      (243)
Dividends paid to stockholders   —      (6,409)
Proceeds from exercise of stock options   —      46 
Tax benefit from disqualified incentive stock options   —      16 
Net Cash (Used) Provided by Financing Activities   —      (6,590)
           
Net (decrease) increase in cash   215    (306)
Cash at beginning of period   161    467 
Cash at End of Period  $376   $161 
           
Supplemental Cash Flow Information          
Cash paid during the period for:          
Interest   —      —   
Income taxes  $159   $859 

 

 

 
 


The following information was filed by Unico American Corp (UNAM) on Friday, March 28, 2014 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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