Unico American Corporation Reports First Quarter 2016 Financial Results

Unico American Corporation (NASDAQ - "UNAM") ("Unico," the "Company"), announced today its consolidated financial results for the three months ended March 31, 2016. For the three months ended March 31, 2016, revenues were $8.5 million and net loss was $0.2 million ($0.04 diluted loss per share) compared with revenues of $7.8 million and net loss of $0.4 million ($0.07 diluted loss per share) for the three months ended March 31, 2015.

Stockholders' equity was $70.1 million as of March 31, 2016, or $13.21 per common share including unrealized after-tax investment gains of $0.03 million, compared to stockholders' equity of $70.3 million as of December 31, 2015, or $13.23 per common share including unrealized after- tax investment losses of $0.03 million.

Headquartered in Calabasas, 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.

UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

($ in thousands)
 
March 31 December 31

2016

2015

( Unaudited)

ASSETS
Investments
Available-for-sale:
Fixed maturities, at fair value (amortized cost: March 31,
2016 $81,361; December 31, 2015 $82,203) $ 81,412 $ 82,161
Short-term investments, at fair value   11,289   15,641  
Total Investments 92,701 97,802
Cash 333 334
Accrued investment income 104 86
Receivables, net 5,763 5,505
Reinsurance recoverable:
Paid losses and loss adjustment expenses 621 751
Unpaid losses and loss adjustment expenses 10,639 9,637
Deferred policy acquisition costs 4,321 4,233
Property and equipment, net 10,457 10,221
Deferred income taxes 1,321 1,334
Other assets   15,238   10,268  
Total Assets $ 141,498 $ 140,171  
 

LIABILITIES AND STOCKHOLDERS' EQUITY
 

LIABILITIES
Unpaid losses and loss adjustment expenses $ 50,011 $ 49,094
Unearned premiums 18,214 18,079
Advance premium and premium deposits 494 212
Income taxes payable 9 -
Accrued expenses and other liabilities   2,649   2,443  
Total Liabilities $ 71,377 $ 69,828  
 
Commitments and contingencies
 

STOCKHOLDERS' EQUITY
Common stock, no par - authorized 10,000,000 shares; issued and
outstanding shares 5,307,133 at March 31, 2016, and 5,315,945 at
December 31, 2015 $ 3,744 $ 3,743
Accumulated other comprehensive income (loss) 34 (27 )
Retained earnings   66,343   66,627  
Total Stockholders' Equity $ 70,121 $ 70,343  
 
Total Liabilities and Stockholders' Equity $ 141,498 $ 140,171  
 

UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

($ in thousands, except per share)
 
Three Months Ended

March 31

2016
 

2015

REVENUES

Insurance company operation:
Net premium earned $ 7,572 $ 6,965
Investment income 212 88
Net realized investment losses (1 ) -
Other income   68     72  
Total Insurance Company Revenues 7,851 7,125
 
Other insurance operations:
Gross commissions and fees 657 691
Finance fees earned 17 16
Other income   5     -  
Total Revenues   8,530     7,832  

 

EXPENSES
Losses and loss adjustment expenses 5,085 4,894
Policy acquisition costs 1,700 1,493
Salaries and employee benefits 1,382 1,248
Commissions to agents/brokers 40 44
Other operating expenses   593     744  
Total Expenses   8,800     8,423  
 
Loss before taxes (270 ) (591 )
Income tax benefit   (71 )   (194 )
Net Loss $ (199 ) $ (397 )
 
 
 

PER SHARE DATA:
Basic
Loss Per Share $ (0.04 ) $ (0.07 )
Weighted Average Shares 5,309,377 5,341,147
 
Diluted
Loss Per Share $ (0.04 ) $ (0.07 )
Weighted Average Shares 5,309,377 5,341,147
 

UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

($ in thousands)
 
Three Months Ended

March 31

2016
 

2015
Cash flows from operating activities:
Net Loss $ (199 ) $ (397 )
Adjustments to reconcile net income to net cash from operations:
Depreciation and amortization 116 117
Bond amortization, net (4 ) (4 )
Non-cash stock based compensation 6 6
Changes in assets and liabilities:
Net receivables and accrued investment income (276 ) (336 )
Reinsurance recoverable (872 ) 185
Deferred policy acquisition costs (88 ) (175 )
Other assets (4,912 ) 203
Unpaid losses and loss adjustment expenses 917 (912 )
Unearned premiums 135 659
Advance premium and premium deposits 282 140
Accrued expenses and other liabilities 206 (20 )
Income taxes current/deferred   (69 )   (193 )
Net Cash Used by Operating Activities   (4,758 )   (727 )
 
Cash flows from investing activities:
Purchase of fixed maturity investments (200 ) (10,145 )
Proceeds from maturity of fixed maturity investments 1,046 749
Net decrease in short-term investments 4,352 10,148
Additions to property and equipment   (352 )   (185 )
Net Cash Provided by Investing Activities   4,846     567  
 
Cash flows from financing activities:
Repurchase of common stock   (89 )   -  
Net Cash Used by Financing Activities   (89 )   -  
 
Net decrease in cash (1 ) (160 )
Cash at beginning of period   334     309  
Cash at End of Period $ 333   $ 149  
 
Supplemental cash flow information
Cash paid during the period for:
Interest - -
Income taxes - -

View source version on businesswire.com: http://www.businesswire.com/news/home/20160511006430/en/

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