AMERCO Reports First Quarter Fiscal 2015 Financial Results

06 Aug, 2014, 16:10 ET from AMERCO

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



RELATED LINKS

http://www.amerco.com