AMERCO Reports First Quarter Fiscal 2016 Financial Results

Aug 05, 2015, 16:30 ET from AMERCO

RENO, Nev., Aug. 5, 2015 /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, 2015, of $171.3 million, or $8.74 per share, compared with net earnings of $124.5 million, or $6.36 per share, for the same period last year. 

"Our team is executing the customer initiatives put into place years ago," stated Joe Shoen, chairman of AMERCO. "We are building on those initiatives by becoming more service-oriented in very competitive marketplaces."

Highlights of First Quarter Fiscal 2016 Results

  • Self-moving equipment rental revenues increased $53.8 million, or 9% for the first quarter of fiscal 2016 compared with the first quarter of fiscal 2015. Compared to the same period last year we increased the number of trucks in our rental equipment fleet, expanded the number of independent dealers in our distribution network and added Company-owned locations. Revenue and transactions for both our In-Town and one-way moving markets increased.
  • Self-storage revenues increased $8.1 million for the first quarter of fiscal 2016 compared with the first quarter of fiscal 2015. The average monthly amount of occupied square feet increased by 13% during the first quarter of fiscal 2016 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 the addition of new facilities to the portfolio. Over the last twelve months we have added approximately 2.1 million net rentable square feet to the self-storage portfolio with over 0.4 million of that coming on during the first quarter.
  • Operating earnings at our Moving and Storage operating segment increased $71.2 million in the first quarter of fiscal 2016 compared with the same period last year. Total revenues improved by $59.9 million with total costs and expenses experiencing a decline of $9.9 million. Increases in personnel costs were more than offset by a reduction in direct operating costs associated with the U-Box program. Increased depreciation expense resulting from additional rental equipment was offset by increased sales of used equipment during the quarter.
  • For the first quarter of fiscal 2016 compared with the first quarter of fiscal 2015 gross truck and trailer capital expenditures were approximately $310 million compared with approximately $326 million, proceeds from sales of rental equipment were $193 million compared with $128 million and spending on real estate related acquisitions and projects were approximately $113 million compared with $86 million, respectively.
  • Cash and credit availability at the Moving and Storage segment was $544.6 million at June 30, 2015 compared with $561.9 million at March 31, 2015.
  • On June 5, 2015, we declared a cash dividend on our Common Stock of $1.00 per share to holders of record on June 19, 2015. The dividend was paid on July 1, 2015.
  • We are holding our 9th Annual Virtual Analyst and Investor meeting on Thursday, August 27, 2015 at 11:00 a.m. Arizona Time (2:00 p.m. Eastern). This is an opportunity to interact directly with Company representatives 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 2016 on Thursday, August 6, 2015, 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, 2015, 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 2016 and 2015.

Quarter Ended June 30,

2015

2014

(Unaudited)

(In thousands)

 Self-moving equipment rentals

$

629,286

$

575,475

 Self-storage revenues

57,191

49,134

 Self-moving and self-storage product and service sales

77,258

74,479

 Property management fees

6,111

5,677

 Life insurance premiums

40,266

37,930

 Property and casualty insurance premiums

10,556

9,618

 Net investment and interest income

21,972

21,046

 Other revenue

42,165

45,596

 Consolidated revenue

$

884,805

$

818,955

 

Listed below are revenues and earnings from operations at each of our operating segments for the first quarter of fiscal 2016 and 2015.

Quarter Ended June 30,

2015

2014

(Unaudited)

(In thousands)

 Moving and storage

 Revenues

$

814,840

$

754,921

 Earnings from operations before equity in earnings of subsidiaries

280,579

210,757

 Property and casualty insurance  

 Revenues

14,890

12,412

 Earnings from operations

6,478

4,022

 Life insurance   

 Revenues

56,069

52,620

 Earnings from operations

4,211

4,575

 Eliminations

 Revenues

(994)

(998)

 Earnings from operations before equity in earnings of subsidiaries

(160)

(155)

 Consolidated Results

 Revenues

884,805

818,955

 Earnings from operations

291,108

219,199

 

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,

2015

2014

(In thousands, except occupancy rate)

Room count as of June 30

237

212

Square footage as of June 30

20,735

18,642

Average monthly number of rooms occupied

194

173

Average monthly occupancy rate based on room count

82.5%

82.3%

Average monthly square footage occupied

17,334

15,335

 

AMERCO AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30,

March 31,

2015

2015

(Unaudited)

(In thousands)

ASSETS

Cash and cash equivalents

$

475,562

$

441,850

Reinsurance recoverables and trade receivables, net

209,274

189,869

Inventories, net

69,889

69,472

Prepaid expenses

67,511

126,296

Investments, fixed maturities and marketable equities

1,334,199

1,304,962

Investments, other

322,894

268,720

Deferred policy acquisition costs, net

115,388

115,422

Other assets

96,097

106,157

Related party assets

134,653

141,790

2,825,467

2,764,538

Property, plant and equipment, at cost:

Land

488,931

467,482

Buildings and improvements

1,812,899

1,728,033

Furniture and equipment

359,500

355,349

Rental trailers and other rental equipment

449,810

436,642

Rental trucks

3,133,198

3,059,987

6,244,338

6,047,493

Less: Accumulated depreciation

(1,979,171)

(1,939,856)

Total property, plant and equipment

4,265,167

4,107,637

Total assets

$

7,090,634

$

6,872,175

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Accounts payable and accrued expenses

$

470,925

$

495,135

Notes, loans and leases payable

2,192,671

2,190,869

Policy benefits and losses, claims and loss expenses payable

1,074,173

1,062,188

Liabilities from investment contracts

711,782

685,745

Other policyholders' funds and liabilities

13,467

8,999

Deferred income

26,438

18,081

Deferred income taxes

552,117

526,799

Total liabilities

5,041,573

4,987,816

Common stock

10,497

10,497

Additional paid-in capital

450,203

449,668

Accumulated other comprehensive loss

(22,818)

(34,365)

Retained earnings

2,294,291

2,142,600

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

(5,462)

(6,391)

Total stockholders' equity

2,049,061

1,884,359

Total liabilities and stockholders' equity

$

7,090,634

$

6,872,175

 

AMERCO AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Quarter Ended June 30,

2015

2014

(Unaudited)

(In thousands, except share and per share data)

Revenues:

Self-moving equipment rentals

$

629,286

$

575,475

Self-storage revenues

57,191

49,134

Self-moving and self-storage products and service sales

77,258

74,479

Property management fees

6,111

5,677

Life insurance premiums

40,266

37,930

Property and casualty insurance premiums

10,556

9,618

Net investment and interest income

21,972

21,046

Other revenue

42,165

45,596

Total revenues

884,805

818,955

Costs and expenses:

Operating expenses

363,169

363,299

Commission expenses

73,058

66,340

Cost of sales

41,255

41,628

Benefits and losses

43,391

40,784

Amortization of deferred policy acquisition costs

4,778

4,184

Lease expense

17,064

22,470

Depreciation, net of (gains) losses on disposals

50,982

61,051

Total costs and expenses

593,697

599,756

Earnings from operations

291,108

219,199

Interest expense

(22,100)

(24,148)

Pretax earnings

269,008

195,051

Income tax expense

(97,723)

(70,577)

Earnings available to common shareholders

$

171,285

$

124,474

Basic and diluted earnings per common share

$

8.74

$

6.36

Weighted average common shares outstanding: Basic and diluted

19,596,129

19,577,802

 

SOURCE AMERCO



RELATED LINKS

http://www.amerco.com