[August 12, 2014] |
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Unico American Corporation Reports Second Quarter 2014 Financial Results
WOODLAND HILLS, Calif. --(Business Wire)--
Unico American Corporation (NASDAQ - "UNAM") ("Unico," the "Company"),
announced today its consolidated financial results for the three and six
months ended June 30, 2014. For the three months ended June 30, 2014,
revenues were $7.6 million and net income was $0.3 million ($0.05
diluted income per share) compared with revenues of $7.8 million and net
income of $0.3 million ($0.05 diluted income per share) for the three
months ended June 30, 2013. For the six months ended June 30, 2014,
revenues were $15.1 million and net income was $0.9 million ($0.16
diluted income per share) compared with revenues of $15.7 million and
net income of $0.3 million ($0.05 diluted income per share) for the six
months ended June 30, 2013.
As of June 30, 2014, the Company had cash and investments (at amortized
cost) of $107.2 million. $11.9 million, or 10% of these investments were
fixed maturity investments, and 44% of those fixed maturity investments
were U.S. treasury securities.
Stockholders' equity was $71.8 million as of June 30, 2014, or $13.44
per common share including unrealized gains, net of tax, of $0.002
million, compared to stockholders' equity of $70.9 million as of
December 31, 2013, or $13.27 per common share including unrealized
losses, net of tax, of $0.006 million.
Headquartered in Woodland Hills, California, Unico is an insurance
holding company that underwrites property and casualty insurance through
its insurance company subsidiary; provides property, casualty, and
health insurance through its agency subsidiaries; and through its other
subsidiaries provides insurance premium financing and membership
association services. Unico has conducted the majority of its operations
through its subsidiary Crusader Insurance Company since 1985. For more
information concerning Crusader Insurance Company, please visit the
Crusader's Web site at www.crusaderinsurance.com.
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995: Certain statements contained herein that are not historical
facts are forward-looking. These statements, which may be identified by
forward-looking words or phrases such as "anticipate," "appears,"
"believe," "expect," "intend," "may," "should," and "would," involve
risks and uncertainties, many of which are beyond the control of the
Company. Such risks and uncertainties could cause actual results to
differ materially from these forward-looking statements. Factors which
could cause actual results to differ materially include underwriting
actions not being effective, rate increases for coverages not being
sufficient, premium rate adequacy relating to competition or regulation,
actual versus estimated claim experience, regulatory changes or
developments, unforeseen calamities, general market conditions, and the
Company's ability to introduce new profitable products.
Financial Tables Follow -
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UNICO AMERICAN CORPORATION
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AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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($ in thousands)
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June 30
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December 31
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2014
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2013
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(Unaudited)
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ASSETS
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Investments
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Available for sale:
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Fixed maturities, at fair value (amortized cost: June 30, 2014
$11,646; December 31, 2013 $11,945)
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$11,648
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$11,936
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Short-term investments, at fair value
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95,520
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93,807
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Total Investments
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107,168
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105,743
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Cash
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104
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376
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Accrued investment income
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7
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5
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Receivables, net
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5,961
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5,157
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Reinsurance recoverable:
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Paid (News - Alert) losses and loss adjustment expenses
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36
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184
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Unpaid losses and loss adjustment expenses
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4,700
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4,428
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Deferred policy acquisition costs
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3,798
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3,636
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Property and equipment, net
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10,206
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10,170
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Deferred income taxes
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1,506
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1,373
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Other assets
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1,431
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1,781
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Total Assets
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$134,917
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$132,853
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LIABILITIES AND STOCKHOLDERS' EQUITY
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LIABILITIES
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Unpaid losses and loss adjustment expenses
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$44,147
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$43,877
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Unearned premiums
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16,148
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15,261
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Advance premium and premium deposits
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459
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465
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Accrued expenses and other liabilities
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2,386
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2,354
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Total Liabilities
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$63,140
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$61,957
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Commitments and contingencies
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STOCKHOLDERS' EQUITY
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Common stock, no par - authorized 10,000,000 shares; issued and outstanding
shares 5,341,147 at June 30, 2014, and 5,341,147 at December
31, 2013
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$3,720
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$3,709
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Accumulated other comprehensive loss
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2
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(6)
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Retained earnings
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68,055
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67,193
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Total Stockholders' Equity
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$71,777
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$70,896
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Total Liabilities and Stockholders' Equity
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$134,917
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$132,853
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UNICO AMERICAN CORPORATION
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AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(UNAUDITED)
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(In thousands, except per share)
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Three Months Ended
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Six Months Ended
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June 30
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June 30
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2014
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2013
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2014
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2013
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REVENUES
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Insurance company revenues
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Net premium earned
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$6,485
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$6,758
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$12,873
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$13,447
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Investment income
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30
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111
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61
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232
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Other income
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340
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46
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596
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281
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Total Insurance Company Revenues
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6,855
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6,915
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13,530
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13,960
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Other revenues from insurance operations
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Gross commissions and fees
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749
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829
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1,484
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1,712
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Investment income
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-
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1
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-
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1
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Finance charges and fees earned
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16
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17
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33
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37
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Other income
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2
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1
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15
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3
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Total Revenues
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7,622
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7,763
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15,062
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15,713
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EXPENSES
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Losses and loss adjustment expenses
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3,648
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3,891
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6,540
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8,447
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Policy acquisition costs
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1,471
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1,544
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2,948
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2,978
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Salaries and employee benefits
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1,271
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1,286
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2,553
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2,550
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Commissions to agents/brokers
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54
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62
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98
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123
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Other operating expenses
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776
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594
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1,614
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1,173
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Total Expenses
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7,220
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7,377
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13,753
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15,271
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Income before taxes
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402
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386
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1,309
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442
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Income tax expense
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132
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136
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447
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184
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Net Income
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$270
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$250
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$862
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$258
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PER SHARE DATA:
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Basic
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Earnings Per Share
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$0.05
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$0.05
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$0.16
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$0.05
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Weighted Average Shares
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5,341,147
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5,341,147
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5,341,147
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5,341,147
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Diluted
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Earnings Per Share
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$0.05
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$0.05
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$0.16
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$0.05
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Weighted Average Shares
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5,345,082
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5,344,479
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5,345,280
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5,344,471
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UNICO AMERICAN CORPORATION
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AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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(UNAUDITED)
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($ in thousands)
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For the Six Months Ended
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June 30
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2014
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2013
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Cash flows from operating activities:
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Net Income
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$862
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$258
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Adjustments to reconcile net income to net cash from operations
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Depreciation and amortization
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278
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107
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Bond amortization, net
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(2)
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4
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Non-cash stock based compensation
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12
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12
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Changes in assets and liabilities
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Net receivables and accrued investment income
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(806)
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(185)
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Reinsurance recoverable
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(125)
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1,800
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Deferred policy acquisitions costs
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(162)
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(32)
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Other assets
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296
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(86)
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Unpaid losses and loss adjustment expenses
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270
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(2,107)
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Unearned premium
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887
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177
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Advance premium and premium deposits
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(6)
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(179)
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Accrued expenses and other liabilities
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32
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(626)
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Income taxes current/deferred
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(82)
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28
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Net Cash Provided (Used) by Operating Activities
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1,454
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(829)
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Cash flows from investing activities:
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Purchase of fixed maturity investments
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(100)
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(2,050)
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Proceeds from maturity of fixed maturity investments
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400
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11,595
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Net increase in short-term investments
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(1,712)
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(8,364)
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Additions to property and equipment
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(314)
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(425)
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Net Cash Provided (Used) by Investing Activities
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(1,726)
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756
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Cash flows from financing activities:
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Proceeds from exercise of stock options
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-
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-
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Repurchase and adjustment of common stock
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-
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-
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Dividends paid to stockholders
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-
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-
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Net Cash Used by Financing Activities
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-
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-
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Net decrease in cash
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(272)
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(73)
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Cash at beginning of period
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376
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161
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Cash at End of Period
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$104
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$88
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Supplemental Cash Flow Information
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Cash paid during the period for:
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Interest
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-
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-
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Income taxes
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$534
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$159
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