AMERCO Reports First Quarter Fiscal 2014 Financial Results

RENO, Nev., Aug. 7, 2013 /PRNewswire/ -- AMERCO (Nasdaq: UHAL), parent of U-Haul International, Inc., Oxford Life Insurance Company, Repwest Insurance Company and Amerco Real Estate Company, today reported net earnings available to common shareholders for its first quarter ended June 30, 2013, of $113.0 million, or $5.78 per share, compared with net earnings of $80.6 million, or $4.13 per share, for the same period last year. 

"We continue to reap the rewards of the programs initiated in the past few years," stated Joe Shoen, chairman of AMERCO.  "Hopefully the work being done now will produce results in future years."

Highlights of First Quarter Fiscal 2014 Results

  • Self-moving equipment rental revenues increased $54.7 million, or nearly 12% for the first quarter of fiscal 2014 compared with the first quarter of fiscal 2013.  Growth in both truck and trailer transactions continued during the quarter. The increase in transactions over last year's quarter was facilitated by an increase in the amount of equipment available to rent along with incremental utilization improvements.
  • Self-storage revenues increased $7.4 million for the first quarter of fiscal 2014 compared with the first quarter of fiscal 2013. The average monthly amount of occupied square feet increased by nearly 21% during the first quarter of fiscal 2014 compared to the same period last year. The growth in revenues and square feet rented comes from a combination of improved occupancy at existing locations as well as from the addition of new facilities to the portfolio.
  • For the first quarter of fiscal 2014 compared to the first quarter of fiscal 2013 gross truck and trailer capital expenditures were approximately $213 million compared with approximately $196 million, proceeds from sales of rental equipment were $93 million compared with $62 million and spending on real estate related acquisitions and projects increased approximately $63 million to $99 million.
  • Cash and credit availability at the Moving and Storage segment was $581.8 million at June 30, 2013 compared with $543.6 million at March 31, 2013.
  • We are holding our 2014 Virtual Analyst and Investor meeting on Thursday, August 29, 2013 at 11:00 a.m. Arizona Time (2:00 p.m. Eastern).  This is an opportunity to interact directly with senior management of the Company through a live video webcast.  A brief presentation by the Company will be followed by a question and answer session.

AMERCO will hold its investor call for the first quarter of fiscal 2014 on Thursday, August 8, 2013, at 8 a.m. Arizona Time (11 a.m. Eastern). The call will be broadcast live over the Internet at www.amerco.com. To hear a simulcast of the call, or a replay, visit www.amerco.com.

About AMERCO

AMERCO is the parent company of U-Haul International, Inc., Oxford Life and Repwest insurance companies and Amerco Real Estate Company. U-Haul is in the shared use business and was founded on the fundamental philosophy that the division of use and specialization of ownership is good for both U-Haul customers and the environment.

Certain of the statements made in this press release regarding our business constitute forward-looking statements as contemplated under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those anticipated as a result of various risks and uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. The Company undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law. For a brief discussion of the risks and uncertainties that may affect AMERCO's business and future operating results, please refer to our Form 10-Q for the quarter ended June 30, 2013, which is on file with the SEC.

Report on Business Operations

Listed below on a consolidated basis are revenues for our major product lines for the first quarter of fiscal 2014 and 2013.



Quarter Ended June 30,



2013


2012



(Unaudited)



(In thousands)

Revenue:





  Self-moving equipment rentals

$

521,649

$

466,994

  Self-storage revenues


42,099


34,736

  Self-moving and self-storage products and service sales                                                   


70,691


67,178

  Property management fees


5,161


4,860

  Life insurance premiums


41,062


46,426

  Property and casualty insurance premiums


7,966


7,243

  Net investment and interest income


18,989


14,517

  Other revenue


39,214


25,722

    Consolidated revenue

$

746,831

$

667,676

Listed below are revenues and earnings from operations at each of our operating segments for the first quarter of fiscal 2014 and 2013.



Quarter Ended June 30,



2013


2012



(Unaudited)



(In thousands)

Moving and storage





   Revenues

$

684,403

$

602,849

   Earnings from operations before equity in earnings of subsidiaries


194,008


146,959

Property and casualty insurance





   Revenues


10,443


9,443

   Earnings from operations


4,390


2,587

Life insurance





   Revenues


54,779


56,142

   Earnings from operations


4,060


1,404

Eliminations





  Revenues


(2,794)


(758)

  Earnings from operations before equity in earnings of subsidiaries


(82)


(71)

Consolidated results





  Revenues


746,831


667,676

  Earnings from operations


202,376


150,879

The Company owns and manages self-storage facilities. Self-storage revenues reported in the consolidated financial statements represent Company-owned locations only. U-Haul also provides property management services for storage locations and earns a fee for these services. These storage centers are not owned by the Company and therefore are not reported on the balance sheet and the rental revenues are not reported in the statements of operations. Self-storage data for both our owned and managed locations follows:


Quarter Ended June 30,


2013


2012


(Unaudited)


(In thousands, except occupancy rate)

Room count as of June 30

453


428

Square footage as of June 30

40,786


38,174

Average monthly number of rooms occupied

371


341

Average monthly occupancy rate based on room count

82.4%


80.0%

Average monthly square footage occupied

33,881


30,888

 

AMERCO AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS








June 30, 2013


March 31, 2013



(Unaudited)



ASSETS


(In thousands, except share data)

  Cash and cash equivalents

$

552,587

$

463,744

  Reinsurance recoverables and trade receivables, net


284,518


261,789

  Inventories, net


58,304


56,396

  Prepaid expenses


43,378


57,451

  Investments, fixed maturities and marketable equities


1,117,008


1,095,338

  Investments, other


231,418


241,765

  Deferred policy acquisition costs, net


97,823


93,043

  Other assets


104,744


99,986

  Related party assets


151,127


182,035



2,640,907


2,551,547






  Property, plant and equipment, at cost:





    Land


348,234


333,228

    Buildings and improvements


1,278,622


1,197,875

    Furniture and equipment


313,796


311,142

    Rental trailers and other rental equipment


331,433


317,476

    Rental trucks


2,263,692


2,154,688



4,535,777


4,314,409

  Less: Accumulated depreciation


(1,597,922)


(1,559,355)

    Total property, plant and equipment


2,937,855


2,755,054

  Total assets

$

5,578,762

$

5,306,601






LIABILITIES AND STOCKHOLDERS' EQUITY










Liabilities:





  Accounts payable and accrued expenses

$

366,302

$

358,491

  Notes, loans and leases payable


1,737,277


1,661,845

  Policy benefits and losses, claims and loss expenses payable


1,115,821


1,115,048

  Liabilities from investment contracts


538,777


510,789

  Other policyholders' funds and liabilities


7,114


7,294

  Deferred income


37,752


30,217

  Deferred income taxes


429,428


393,658

Total liabilities


4,232,471


4,077,342






Stockholders' equity:





  Common stock


10,497


10,497

  Additional paid-in capital


439,524


438,168

  Accumulated other comprehensive loss


(20,099)


(22,680)

  Retained earnings


1,595,598


1,482,630

  Cost of common shares in treasury, net


(525,653)


(525,653)

  Cost of preferred shares in treasury, net


(151,997)


(151,997)

  Unearned employee stock ownership plan shares


(1,579)


(1,706)

Total stockholders' equity


1,346,291


1,229,259

Total liabilities and stockholders' equity

$

5,578,762

$

5,306,601

 

AMERCO AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




Quarter Ended June 30,


2013


2012



(Unaudited)


(In thousands, except share and per share data)

Revenues:


  Self-moving equipment rentals

$

521,649

$

466,994

  Self-storage revenues


42,099


34,736

  Self-moving and self-storage products and service sales


70,691


67,178

  Property management fees


5,161


4,860

  Life insurance premiums


41,062


46,426

  Property and casualty insurance premiums


7,966


7,243

  Net investment and interest income


18,989


14,517

  Other revenue


39,214


25,722

    Total revenues


746,831


667,676






Costs and expenses:





  Operating expenses


309,501


283,393

  Commission expenses


68,627


61,107

  Cost of sales


35,570


32,227

  Benefits and losses


42,633


48,338

  Amortization of deferred policy acquisition costs


3,683


2,811

  Lease expense


27,007


32,796

  Depreciation, net of (gains) on disposals of (($11,565) and ($7,516), respectively)


57,434


56,125

    Total costs and expenses


544,455


516,797






Earnings from operations


202,376


150,879

  Interest expense


(23,328)


(23,491)

Pretax earnings


179,048


127,388

  Income tax expense


(66,080)


(46,819)

Earnings available to common shareholders

$

112,968

$

80,569

Basic and diluted earnings per common share

$

5.78

$

4.13

Weighted average common shares outstanding: Basic and diluted


19,545,618


19,502,369

SOURCE AMERCO



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