Exhibit 99.1

 

 

NEWS RELEASE

 

 

CONTACT: Lester A. Aaron

Chief Financial Officer

818-591-9800

 

 

UNICO AMERICAN CORPORATION REPORTS

FOURTH QUARTER AND FULL YEAR 2014 FINANCIAL RESULTS

 

Woodland Hills, CA, March 30, 2015

– Unico American Corporation (NASDAQ – “UNAM”) (“Unico,” the “Company”), announced today its consolidated financial results for the three and twelve months ended December 31, 2014. For the three months ended December 31, 2014, revenues were $7.6 million and net loss was $0.05 million ($0.01 diluted loss per share) compared with revenues of $7.7 million and net income of $0.7 million ($0.13 diluted income per share) for the three months ended December 31, 2013. For the twelve months ended December 31, 2014, revenues were $30.5 million and net income was $0.8 million ($0.16 diluted income per share) compared with revenue of $31.1 million and net income of $0.6 million ($0.11 diluted income per share) for the twelve months ended December 31, 2013.

 

Stockholders’ equity was $71.8 million as of December 31, 2014, or $13.44 per common share including unrealized after-tax investment gains of $0.004 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 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 –

 

 

1
 

 

  UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

($ in thousands)

 

    December 31    December 31 
    2014    2013 
    (Unaudited)      
ASSETS          
Investments          
   Fixed maturities, at fair value (amortized cost: December 31, 2014 $35,153; December 31, 2013 $11,945)  $35,159   $11,936 
   Short-term investments, at fair value   72,259    93,807 
Total Investments   107,418    105,743 
Cash   309    376 
Accrued investment income   43    5 
Receivables, net   5,170    5,157 
Reinsurance recoverable:          
   Paid losses and loss adjustment expenses   201    184 
   Unpaid losses and loss adjustment expenses   5,163    4,428 
Deferred policy acquisition costs   3,883    3,636 
Property and equipment, net   10,510    10,170 
Deferred income taxes   1,519    1,373 
Other assets   1,800    1,781 
Total Assets  $136,016   $132,853 
           
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES          
Unpaid losses and loss adjustment expenses  $44,397   $43,877 
Unearned premiums   16,607    15,261 
Advance premium and premium deposits   250    465 
Accrued expenses and other liabilities   2,986    2,354 
Total Liabilities   $64,240   $61,957 
           
Commitments and contingencies          
           
STOCKHOLDERS'  EQUITY          
Common stock, no par – authorized 10,000,000 shares; issued and outstanding shares 5,341,147 at December 31, 2014, and 5,341,147 at December 31, 2013  $3,732   $3,709 
Accumulated other comprehensive income (loss)   4    (6)
Retained earnings   68,040    67,193 
Total Stockholders’ Equity  $71,776   $70,896 
           
Total Liabilities and Stockholders' Equity  $136,016   $132,853 

 

 

2
 

 

UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

($ in thousands, except per share)

 

   Three Months Ended  Twelve Months Ended
   December 31  December 31
   2014  2013          2014          2013
   (Unaudited)  (Unaudited)  (Unaudited)   
REVENUES                    
Insurance Company Revenues:                     
  Net premium earned  $6,814   $6,657   $26,373   $26,862 
  Investment income   68    31    161    332 
  Other income   22    275    932    612 
     Total Insurance Company Revenues   6,904    6,963    27,466    27,806 
                     
Other Revenues from Insurance Operations:                    
  Gross commissions and fees   721    749    2,918    3,240 
  Investment income   —      —      1    1 
  Finance fees earned   17    20    67    77 
  Other income   2    3    18    7 
     Total Revenues   7,644    7,735    30,470    31,131 
                     
EXPENSES                    
Losses and loss adjustment expenses   3,921    2,876    14,617    16,089 
Policy acquisition costs   1,527    1,516    5,986    6,032 
Salaries and employee benefits   1,213    1,234    4,992    5,011 
Commissions to agents/brokers   46    54    193    232 
Other operating expenses   1,007    713    3,386    2,526 
     Total Expenses   7,714    6,393    29,174    29,890 
                     
Income (loss) before taxes   (70)   1,342    1,296    1,241 
Income tax expense (benefit)   (22)   629    450    637 

Net Income (loss) 

  $(48)  $713   $846   $604 
                     
                     
PER SHARE DATA:                    
Basic                    
    Earnings (loss) per share  $(0.01)  $0.13   $0.16   $0.11 
    Weighted average shares   5,341    5,341    5,341    5,341 
Diluted                    
    Earnings (loss) per share  $(0.01)  $0.13   $0.16   $0.11 
    Weighted average shares   5,341    5,345    5,347    5,344 

 

 

3
 

 

UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in thousands)

 

   For the Twelve Months Ended
   December 31
   2014  2013
   (Unaudited)   
Cash flows from operating activities:          
   Net Income  $846   $604 
   Adjustments to reconcile net income to net cash from operations:          
      Depreciation and amortization   540    307 
      Bond amortization, net   (5)   4 
      Non-cash stock based compensation   23    23 
      Tax benefit from disqualified incentive stock options   —      —   
   Changes in assets and liabilities:          
      Net receivables and accrued investment income   (51)   738 
      Reinsurance recoverable   (752)   2,277 
      Deferred policy acquisition costs   (247)   150 
      Other assets   64    (1,034)
      Unpaid losses and loss adjustment expenses   520    (5,908)
      Unearned premiums   1,346    (769)
      Advance premium and premium deposits   (214)   (291)
      Accrued expenses and other liabilities   632    (686)
      Income taxes current/deferred   (234)   476 
Net Cash Provided (Used) by Operating Activities   2,468    (4,109)
           
Cash flows from investing activities:          
Purchase of fixed maturity investments   (25,303)   (9,395)
Proceeds from maturity of fixed maturity investments   2,100    30,890 
Net increase in short-term investments   21,548    (7,551)
   Acquisition of land and building   —      (9,000)
Additions to property and equipment   (880)   (620)
Net Cash (Used) Provided by Investing Activities   (2,535)   4,324 
           
Cash flows from financing activities:          
Net Cash Used by Financing Activities   —      —   
           
Net (decrease) increase in cash   (67)   215 
Cash at beginning of period   376    161 
Cash at End of Period  $309   $376 
           
Supplemental Cash Flow Information          
Cash paid during the period for Income taxes  $684   $159 

 

 

4
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The following information was filed by Unico American Corp (UNAM) on Monday, March 30, 2015 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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