EX-99.1 3 news0603.txt NEWS RELEASE EXHIBIT 99.1 NEWS RELEASE CONTACT: Lester A. Aaron Chief Financial Officer (818) 591-9800 UNICO AMERICAN CORPORATION REPORTS RESULTS FOR ITS SECOND QUARTER ENDED JUNE 30, 2003 Woodland Hills, California, August 13, 2003 - Unico American Corporation (NASDAQ - "UNAM") announced today that for its quarter ended June 30, 2003, revenues were $12,292,016 and the net income was $561,276 ($0.10 diluted income per share) compared with revenues of $11,328,455 and net loss of $3,662,872 ($0.67 diluted loss per share) for the quarter ended June 30, 2002. Revenues for the six months ended June 30, 2003, were $23,708,607 and the net income was $794,359 ($0.14 diluted income per share) compared with revenues of $21,980,448 and a net loss of $3,556,820 ($0.65 diluted loss per share) for the six months ended June 30, 2002. Stockholders' equity was $39,309,033 at June 30, 2003, or $7.16 per common share including unrealized after-tax investment gains of $3,223,446 compared to stockholders' equity of $38,408,990 or $7.00 per common share including unrealized after-tax investment gains of $3,117,762 at December 31, 2002. In August 2003, an adverse binding arbitration decision on a 1993 claim exceeded Crusader's reinsurance coverage. As a result of this decision, the Company will incur adverse development on this claim, net of reinsurance, of approximately $2,000,000 or approximately $1,320,000 net of taxes. The adverse development on this claim will be recognized in the quarter ending September 30, 2003, and may result in the Company incurring a net loss for that quarter. This release contains forward-looking statements and information relating to the Unico American Corporation that are based on our beliefs as well as assumptions made by and information currently available to us. The words "anticipate", "may" and similar expressions, as they relate to us, are intended to identify forward-looking statements. Actual results could differ materially from those projected in such forward-looking statements. Information concerning certain factors that could cause actual results to differ materially is included in the Unico American's Form 10-K for the year ended 2002, as filed with the SEC. Unico American Corporation is an insurance holding company that provides property, casualty, health and life insurance, and related premium financing through its wholly owned subsidiaries. (Table Follows) 1 UNICO AMERICAN CORPORATION AND SUBSIDIARIES SUMMARY OF CONSOLIDATED FINANCIAL DATA (UNAUDITED) ($ in thousands, except per share)
Three Months Ended Ended Six Months Ended June 30 June 30 ------- ------- 2003 2002 2003 2002 ---- ---- ---- ---- Revenues Insurance Company Revenues Premium earned $12,648 $9,788 $24,073 $19,041 Premium ceded 3,915 1,533 7,379 3,194 ----- ----- ------ ------ Net premium earned 8,733 8,255 16,694 15,847 Investment income 1,214 1,368 2,481 2,758 Other income 24 7 43 9 ----- ----- ------ ------ Total Insurance Company Revenues 9,971 9,630 19,218 18,614 Other Revenues from Insurance Operations Gross commissions and fees 2,070 1,449 4,007 2,888 Investment income 13 21 26 27 Finance charges and late fees earned 231 220 451 439 Other income 7 8 7 12 ------ ------ ------ ------ Total Revenues 12,292 11,328 23,709 21,980 ------ ------ ------ ------ Expenses Losses and loss adjustment expenses 6,996 12,496 13,676 18,826 Policy acquisition costs 1,870 2,279 3,654 4,429 Salaries and employee benefits 1,286 1,052 2,479 2,039 Commissions to agents/brokers 382 303 785 606 Other operating expenses 886 735 1,883 1,481 ------ ------ ------ ------ Total Expenses 11,420 16,865 22,477 27,381 ------ ------ ------ ------ Income (Loss) Before Income Taxes 872 (5,537) 1,232 (5,401) Income Tax Provision (Benefit) 311 (1,874) 438 (1,844) --- ----- ---- ----- Net Income (Loss) $561 $(3,663) $794 $(3,557) === ===== === ===== PER SHARE DATA Basic Earnings (Loss) Per Share $0.10 $(0.67) $0.14 $(0.65) Weighted Average Shares (000) 5,490 5,488 5,490 5,485 Diluted Earnings (Loss) Per Share $0.10 $(0.67) $0.14 $(0.65) Weighted Average Shares (000) 5,526 5,488 5,517 5,485 INSURANCE COMPANY STATUTORY OPERATING RATIOS Losses and Loss Adjustment Expenses 79.7% 151.0% 81.6% 118.4% Underwriting Expenses 28.9% 34.7% 29.1% 35.4% ----- ----- ----- ----- Combined Ratio 108.6% 185.7% 110.7% 153.8% ===== ===== ===== =====
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