AMERCO Reports First Quarter Fiscal 2015 Financial Results

RENO, Nev., Aug. 6, 2014 /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, 2014, of $124.5 million, or $6.36 per share, compared with net earnings of $113.0 million, or $5.78 per share, for the same period last year. 

"Our businesses have a lot of moving parts.  The experienced, committed U-Haul Team continued to do a good job serving customers," stated Joe Shoen, chairman of AMERCO.  

Highlights of First Quarter Fiscal 2015 Results

  • Self-moving equipment rental revenues increased $59.1 million, or 11% for the first quarter of fiscal 2015 compared with the first quarter of fiscal 2014.  Growth of In-Town and one-way transactions in our truck, trailer and towing device fleets led to the revenue improvement.  Our distribution network continues to expand to meet the needs of our customers.  We added both Company-owned locations and independent dealerships during the quarter and increased the size of the rental equipment fleet.
  • Self-storage revenues increased $7.0 million for the first quarter of fiscal 2015 compared with the first quarter of fiscal 2014. The average monthly amount of occupied square feet increased by 14% during the first quarter of fiscal 2015 compared with 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. We added more than 470,000 of net rentable square feet during the quarter and over the last twelve months approximately 1.8 million of net rentable square feet to the self-storage portfolio.
  • Operating earnings at our Moving and Storage operating segment increased $16.7 million in the first quarter of fiscal 2015 compared with the same period last year.  Total revenues improved by $75.7 million with total costs and expenses increasing by $59.0 million.  Operating costs associated with the U-Box program, rental equipment maintenance and repair, personnel expense and depreciation increased during the quarter.
  • For the first quarter of fiscal 2015 compared with the first quarter of fiscal 2014 gross truck and trailer capital expenditures were approximately $326 million compared with approximately $213 million, proceeds from sales of rental equipment were $128 million compared with $93 million and spending on real estate related acquisitions and projects were approximately $86 million compared with $99 million, respectively.
  • Cash and credit availability at the Moving and Storage segment was $851.1 million at June 30, 2014 compared with $625.1 million at March 31, 2014.
  • We are holding our 8th Annual Virtual Analyst and Investor meeting on Thursday, August 28, 2014 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 2015 on Thursday, August 7, 2014, 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 Insurance Company, Repwest Insurance Company 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, 2014, 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 2015 and 2014.


Quarter Ended June 30,


2014


2013


(Unaudited)


(In thousands)

Revenue:





  Self-moving equipment rentals

$

580,708


521,649

  Self-storage revenues


49,134


42,099

  Self-moving and self-storage products and service sales                                             


74,479


70,691

  Property management fees


5,677


5,161

  Life insurance premiums


37,930


41,062

  Property and casualty insurance premiums


9,618


7,966

  Net investment and interest income


21,046


18,989

  Other revenue


45,596


41,340

    Consolidated revenue

$

824,188


748,957










Listed below are revenues and earnings from operations at each of our operating segments for the first quarter of fiscal 2015 and 2014.



Quarter Ended June 30,



2014


2013



(Unaudited)



(In thousands)

Moving and storage





   Revenues

$

760,154


684,403

   Earnings from operations before equity in

     earnings of subsidiaries


210,757


194,008

Property and casualty insurance





   Revenues


12,412


10,443

   Earnings from operations


4,022


4,390

Life insurance





   Revenues


52,620


54,779

   Earnings from operations


4,575


4,060

Eliminations





  Revenues


(998)


(668)

  Earnings from operations before equity in

     earnings of subsidiaries


(155)


(82)

Consolidated results





  Revenues


824,188


748,957

  Earnings from operations


219,199


202,376

The Company owns and manages self-storage facilities. Self-storage revenues reported in the consolidated financial statements represent Company-owned locations only. Self-storage data for our owned locations follows:


Quarter Ended June 30,


2014


2013


(Unaudited)


(In thousands, except occupancy rate)

Room count as of June 30

212


195

Square footage as of June 30

18,642


16,854

Average monthly number of rooms occupied

173


153

Average monthly occupancy rate based on room count

82.3%


80.2%

Average monthly square footage occupied

15,335


13,448

 


AMERCO AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS




June 30,

2014


March 31,

 2014



(Unaudited)


ASSETS


(In thousands)


  Cash and cash equivalents

$

692,585

$

495,112


  Reinsurance recoverables and trade receivables, net


200,015


199,322


  Inventories, net


69,341


67,020


  Prepaid expenses


49,909


55,269


  Investments, fixed maturities and marketable equities


1,213,312


1,138,275


  Investments, other


244,557


248,850


  Deferred policy acquisition costs, net


117,109


118,707


  Other assets


106,834


97,588


  Related party assets


159,721


169,624




2,853,383


2,589,767








  Property, plant and equipment, at cost:






    Land


425,953


405,177


    Buildings and improvements


1,498,731


1,430,330


    Furniture and equipment


323,906


322,088


    Rental trailers and other rental equipment


391,823


373,325


    Rental trucks


2,817,303


2,610,797




5,457,716


5,141,717


  Less: Accumulated depreciation


(1,782,417)


(1,732,506)


    Total property, plant and equipment


3,675,299


3,409,211


  Total assets

$

6,528,682

$

5,998,978








LIABILITIES AND STOCKHOLDERS' EQUITY












Liabilities:






  Accounts payable and accrued expenses

$

450,972

$

357,954


  Notes, loans and leases payable


2,185,365


1,942,359


  Policy benefits and losses, claims and loss expenses payable


1,073,488


1,082,598


  Liabilities from investment contracts


643,066


616,725


  Other policyholders' funds and liabilities


9,815


7,988


  Deferred income


39,121


31,390


  Deferred income taxes


452,398


432,596


Total liabilities


4,854,225


4,471,610








Stockholders' equity:






  Common stock


10,497


10,497


  Additional paid-in capital


445,863


444,210


  Accumulated other comprehensive loss


(33,048)


(53,923)


  Retained earnings


1,929,927


1,805,453


  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


(1,132)


(1,219)


Total stockholders' equity


1,674,457


1,527,368


Total liabilities and stockholders' equity

$

6,528,682

$

5,998,978









 


AMERCO AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



Quarter Ended June 30,


2014


2013


(Unaudited)


(In thousands, except share and per share data)

Revenues:





  Self-moving equipment rentals

$

580,708

$

521,649

  Self-storage revenues


49,134


42,099

  Self-moving and self-storage products and service sales


74,479


70,691

  Property management fees


5,677


5,161

  Life insurance premiums


37,930


41,062

  Property and casualty insurance premiums


9,618


7,966

  Net investment and interest income


21,046


18,989

  Other revenue


45,596


41,340

    Total revenues


824,188


748,957






Costs and expenses:





  Operating expenses


355,207


311,627

  Commission expenses


79,665


68,627

  Cost of sales


41,628


35,570

  Benefits and losses


40,784


42,633

  Amortization of deferred policy acquisition costs


4,184


3,683

  Lease expense


22,470


27,007

  Depreciation, net of (gains) on disposals of (($22,959) and ($11,565), respectively)


61,051


57,434

    Total costs and expenses


604,989


546,581






Earnings from operations


219,199


202,376

  Interest expense


(24,148)


(23,328)

Pretax earnings


195,051


179,048

  Income tax expense


(70,577)


(66,080)

Earnings available to common shareholders

$

124,474

$

112,968

Basic and diluted earnings per common share

$

6.36

$

5.78

Weighted average common shares outstanding: Basic and diluted


19,577,802


19,545,618










 

SOURCE AMERCO



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