AMERCO Reports Fiscal 2013 Financial Results

RENO, Nev., June 5, 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 stockholders for the year ended March 31, 2013 were $264.7 million, or $13.56 per share, compared with $196.5 million, or $10.09 per share for the same period last year.  Included in the prior year results for March 31, 2012, was an after-tax charge of $1.61 per share associated with Repwest's third quarter excess workers' compensation reserve strengthening.  Excluding this after-tax charge, adjusted earnings were $11.70 per share for the year ended March 31, 2012.

For the quarter ended March 31, 2013, the Company reported net earnings available to common stockholders of $37.9 million, or $1.93 per share, compared with net earnings of $25.4 million, or $1.29 per share for the same period last year. 

"U-Haul employees, dealers and affiliates are to be commended for the company's strong performance over the last year," stated Joe Shoen, Chairman of AMERCO. "We continue our focus on improving the rental experience for our customers through convenient access to our rental locations, equipment availability and ease of the rental process," concluded Shoen.

Highlights of Full-Year and Fourth-Quarter 2013 Results

  • Self-moving equipment rental revenue increased $22.9 million or 6.6% in the fourth quarter of fiscal 2013 compared with the fourth quarter of fiscal 2012, and finished the full year up $89.3 million or 5.3% compared with the full year of fiscal 2012.  Along with the improvement in revenue during fiscal 2013 we also experienced an increase in rental transactions, growth in our independent dealer network, expansion of our company-operated locations and an increase in the number of trucks and trailers in the fleet.
  • Self-storage revenues increased $6.1 million or 17.7% in the fourth quarter of fiscal 2013 compared with the fourth quarter of fiscal 2012 and for the full year increased $18.3 million or 13.6% compared with fiscal 2012.  We are generating revenue and occupancy improvements from our existing portfolio of locations as well as from recent acquisitions.  Our average monthly amount of occupied square feet increased just over 15.4% compared with fiscal 2012 while our total available net rentable square feet increased by 2.1 million square feet over the last twelve months.
  • Operating earnings at our Moving and Storage segment increased $5.1 million in the fourth quarter of fiscal 2013 compared with the fourth quarter of fiscal 2012 and for the full year increased $29.6 million.  During the fourth quarter total revenues for this segment increased $29.9 million while being partially offset by a $24.8 million increase in total costs and expenses.  For the fourth quarter we experienced increases in personnel, fleet maintenance expense and liability costs.
  • Operating earnings at our Life Insurance segment increased $4.4 million in the fourth quarter of fiscal 2013 compared with the fourth quarter of fiscal 2012, and for the full year increased $2.8 million.  During fiscal 2013 Oxford shifted its primary focus for new business from life insurance policies to annuity contracts resulting in reported decreases in premiums and benefits and an increase in investment income.  As a result of this shift, during the year Oxford's annuity deposits increased $258.5 million compared to fiscal 2012.
  • Operating earnings at our Property and Casualty Insurance segment increased $4.3 million in the fourth quarter of fiscal 2013 compared with fourth quarter of fiscal 2012 and for the full year increased by $50.6 million.  In fiscal 2012 Repwest recorded a $48.3 million pre-tax charge for reserve strengthening on excess workers compensation policies.  No similar charge for reserve strengthening was necessary in fiscal 2013 resulting in much of the improvement in profitability.
  • Gross truck and trailer capital expenditures for fiscal 2013 were approximately $599 million compared with approximately $504 million in fiscal 2012.  Proceeds from the sales of rental equipment were $208 million for fiscal 2013 compared with $166 million in fiscal 2012.  Spending on real estate related acquisitions and projects increased approximately $68 million to $169.5 million in fiscal 2013 compared with fiscal 2012.

AMERCO will hold its investor call for fiscal year 2013 on Thursday, June 6, 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.

Use of Non-GAAP Financial Information
The Company reports its financial results in accordance with generally accepted accounting principles (GAAP). However, the Company uses certain non-GAAP performance measures, including adjusted earnings per share, to provide a better understanding of the Company's underlying operational results. The Company uses adjusted earnings per share to present the impact of certain transactions or events that management expects to occur only infrequently.

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-K for the year ended March 31, 2013, which is on file with the SEC.


Report on Business Operations

Listed on a consolidated basis are revenues for our major product lines for the fourth quarter and the full year of fiscal 2013 and fiscal 2012.



Quarter Ended Mar. 31,


Twelve Months Ended Mar. 31,



2013

2012


2013

2012



(In thousands)

Self-moving equipment rentals

$367,220

$344,338


$1,767,520

$1,678,256

Self-storage revenues


40,835

34,694


152,660

$134,376

Self-moving and self-storage products and

   service sales

 

47,718

 

46,502


 

221,117

 

213,854

Property management fees


8,531

8,337


24,378

23,266

Life insurance premiums


40,774

47,723


178,115

277,562

Property and casualty insurance premiums

8,336

7,555


34,342

32,631

Net investment and interest income

29,930

18,019


82,903

73,552

Other revenue


20,963

18,489


97,552

78,530

  Consolidated revenue


$564,307

$525,657


$2,558,587

$2,512,027

Listed below are revenues and earnings from operations at each of our operating segments for the fourth quarter and the full year of fiscal 2013 and fiscal 2012.



Quarter Ended Mar. 31,


Twelve Months Ended Mar. 31



2013

2012


2013

2012

Moving and storage


(In thousands)

  Revenues


$489,118

$459,240


2,282,342

$2,156,923

  Earnings from operations before equity in

     earnings of subsidiaries


 

54,761

 

49,694


 

462,328

 

432,766

Property and casualty insurance







  Revenues


15,679

10,115


48,200

42,586

  Earnings (loss) from operations


7,203

2,922


14,194

(36,426)

Life insurance







  Revenues


60,358

57,305


231,490

317,274

  Earnings from operations


10,148

5,719


22,955

20,149

Eliminations







  Revenues


(848)

(1,003)


(3,445)

(4,756)

  Earnings from operations before equity in

     earnings of subsidiaries


 

(76)

 

3


 

(294)

 

(482)

Consolidated results







  Revenues


564,307

525,657


2,558,587

2,512,027

  Earnings from operations


72,036

58,338


499,183

416,007









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 for the quarter and full year of fiscal 2013 and 2012.


Quarter Ended March 31


2013


2012


(Unaudited)


(In thousands, except occupancy rate)

Room count as of March 31

445


423

Square footage as of March 31

39,963


37,762

Average monthly number of rooms occupied

355


327

Average monthly occupancy rate based on room count

80%


77.3%

Average monthly square footage occupied

32,512


29,724






 


Twelve Months Ended

March 31,


2013


2012


(Unaudited)


(In thousands, except occupancy rate)

Room count as of March 31

445


423

Square footage as of March 31

39,963


37,762

Average monthly number of rooms occupied

352


329

Average monthly occupancy rate based on room count

81%


78.8%

Average monthly square footage occupied

32,090


29,856






 


AMERCO AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS



March 31,



2013


2012

ASSETS


(In thousands)

  Cash and cash equivalents


$463,744


$357,180

  Reinsurance recoverables and trade receivables, net


261,789


297,974

  Inventories, net


56,396


58,735

  Prepaid expenses


57,451


41,858

  Investments, fixed maturities and marketable equities


1,095,338


766,792

  Investments, other


241,765


258,551

  Deferred policy acquisition costs, net


93,043


63,914

  Other assets


99,986


120,525

  Related party assets


182,035


316,157



2,551,547


2,281,686

  Property, plant and equipment, at cost:





    Land


333,228


281,140

    Buildings and improvements


1,197,875


1,087,119

    Furniture and equipment


311,142


308,120

    Rental trailers and other rental equipment


317,476


255,010

    Rental trucks


2,154,688


1,856,433



4,314,409


3,787,822

  Less: Accumulated depreciation


(1,559,355)


(1,415,457)

    Total property, plant and equipment


2,755,054


2,372,365

  Total assets


$5,306,601


$4,654,051

 

LIABILITIES AND STOCKHOLDERS' EQUITY





Liabilities:





  Accounts payable and accrued expenses


$358,491


$335,326

  Notes, loans and leases payable


1,661,845


1,486,211

  Policy benefits and losses, claims and loss expenses payable


1,115,048


1,145,943

  Liabilities from investment contracts


510,789


240,961

  Other policyholders' funds and liabilities


7,294


7,273

  Deferred income


30,217


31,525

  Deferred income taxes


393,658


370,992

Total liabilities


4,077,342


3,618,231






Stockholders' equity:





  Common stock


10,497


10,497

  Additional paid-in capital


438,168


433,743

  Accumulated other comprehensive loss


(22,680)


(45,436)

  Retained earnings


1,482,630


1,317,064

  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


(1,706)


(2,398)

Total stockholders' equity


1,229,259


1,035,820

Total liabilities and stockholders' equity


$5,306,601


$4,654,051

 

AMERCO AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



Quarter Ended March 31,



2013


2012



(In thousands, except share and per share amounts)

Revenues:





  Self-moving equipment rentals


$367,220


$344,338

  Self-storage revenues


40,835


34,694

  Self-moving and self-storage products and service sales


47,718


46,502

  Property management fees


8,531


8,337

  Life insurance premiums


40,774


47,723

  Property and casualty insurance premiums


8,336


7,555

  Net investment and interest income


29,930


18,019

  Other revenue


20,963


18,489

    Total revenues


564,307


525,657






Costs and expenses:





  Operating expenses


286,676


257,041

  Commission expenses


47,323


43,325

  Cost of sales


20,924


26,813

  Benefits and losses


41,258


44,916

  Amortization of deferred policy acquisition costs


8,086


3,075

  Lease expense


27,486


31,944

  Depreciation, net of (gains) losses on disposals


60,518


60,205

    Total costs and expenses


492,271


467,319






Earnings from operations


72,036


58,338

  Interest expense


(23,016)


(22,031)

Pretax earnings


49,020


36,307

  Income tax expense


(11,147)


(10,902)

Earnings available to common stockholders


$37,873


$25,405

Basic and diluted earnings per common share


$1.93


$1.29

Weighted average common shares outstanding:





  Basic and diluted


19,536,630


19,492,159


 

AMERCO AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS


Twelve Months Ended March 31,



2013


2012


(In thousands, except share and per share amounts)

Revenues:





  Self-moving equipment rentals


$1,767,520


$1,678,256

  Self-storage revenues


152,660


134,376

  Self-moving and self-storage products and service sales


221,117


213,854

  Property management fees


24,378


23,266

  Life insurance premiums


178,115


277,562

  Property and casualty insurance premiums


34,342


32,631

  Net investment and interest income


82,903


73,552

  Other revenue


97,552


78,530

    Total revenues


2,558,587


2,512,027






Costs and expenses:





  Operating expenses


1,170,568


1,093,190

  Commission expenses


228,124


212,190

  Cost of sales


107,216


116,542

  Benefits and losses


180,676


320,191

  Amortization of deferred policy acquisition costs


17,376


13,791

  Lease expense


117,448


131,215

  Depreciation, net of (gains) losses on disposals


237,996


208,901

    Total costs and expenses


2,059,404


2,096,020






Earnings from operations


499,183


416,007

  Interest expense


(90,696)


(90,371)

Pretax earnings


408,487


325,636

  Income tax expense


(143,779)


(120,269)

Net earnings


264,708


205,367

  Less: Excess of redemption value over carrying value of preferred

  shares redeemed


 

-


 

(5,908)

  Less: Preferred stock dividends


-


(2,913)

Earnings available to common stockholders


$264,708


$196,546

Basic and diluted earnings per common share


$13.56


$10.09

Weighted average common shares outstanding:





  Basic and diluted


19,518,779


19,476,187

 

NON-GAAP FINANCIAL RECONCILIATION SCHEDULE



Year Ended



March 31, 2012

(In thousands, except share and per share amounts)






AMERCO and Consolidated Entities



Earnings per common share basic and diluted

$

10.09

Charge for strengthening reserves


1.61

Earnings per common share basic and diluted before charge for strengthening reserves

$

11.70




Charge for strengthening reserves

$

(48,250)

Income tax benefit


16,888

Charge for strengthening reserves, net of taxes

$

(31,362)

Charge for strengthening reserves, net of taxes, per common share basic and diluted

$

(1.61)

Weighted average shares outstanding: basic and diluted


19,476,187

 

SOURCE AMERCO



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