AMERCO Reports Fiscal 2014 Financial Results

RENO, Nev., May 28, 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 shareholders for the year ended March 31, 2014, were $342.4 million, or $17.51 per share, compared with $264.7 million, or $13.56 per share for the same period last year.

For the quarter ended March 31, 2014, the Company reported net earnings available to shareholders of $39.2 million, or $2.00 per share compared with net earnings of $37.9 million, or $1.93 per share for the same period last year.  The fourth quarter of fiscal 2013 included an $8.4 million pre-tax gain at our insurance companies resulting from an investment gain.

"Our employees, dealers and affiliates continue to find ways to improve the U-Haul rental experience," stated Joe Shoen, chairman of AMERCO.  "We operate in very competitive markets.  We are surrounded by uncertainty.  The better we serve the customer, the better our longer term prospects."  

Highlights of Fiscal Year and Fourth Quarter 2014 Results

  • Self-moving equipment rental revenues increased $31.4 million or 8.6% in the fourth quarter of fiscal 2014 compared with the fourth quarter of fiscal 2013, and finished the full year up $187.9 million or 10.6% compared with fiscal 2013. The increase in revenue was largely due to transaction growth fueled by the expansion of our rental equipment fleet, growth in our independent dealer network and the addition of Company-operated locations.
  • Self-storage revenues increased $7.2 million or 17.6% in the fourth quarter of fiscal 2014 compared with the fourth quarter of fiscal 2013 and for the full year increased $29.1 million or 19.1% compared with fiscal 2013. Recent acquisitions, along with occupancy improvements at existing locations, contributed to the increase in storage revenue. During both fiscal 2014 and fiscal 2013 we added approximately 2.1 million square feet of owned net rentable storage each year.
  • Operating earnings at our Moving and Storage operating segment increased $17.6 million in the fourth quarter of fiscal 2014 compared with the same period last year and for the full year increased $122.4 million.
  • Operating earnings at our Life Insurance segment increased $3.7 million for fiscal year 2014 compared with fiscal 2013. On May 7, 2014, A.M. Best upgraded the financial strength rating of Oxford Life to A- (Excellent) with a stable outlook.
  • Operating earnings at our Property and Casualty Insurance segment increased $5.1 million for fiscal year 2014 compared with fiscal year 2013 led by sales of insurance products related to the increased rental transactions at U-Haul.
  • Gross truck and trailer capital expenditures for fiscal 2014 were approximately $776 million compared with approximately $599 million for fiscal 2013. Proceeds from the sales of rental equipment were $258 million for fiscal 2014 compared with $208 million in fiscal 2013. Spending on real estate related acquisitions and projects increased approximately $152 million to $321 million in fiscal 2014 compared with fiscal 2013.

AMERCO will hold its investor call for fiscal 2014 on Thursday, May 29, 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-K for the quarter ended March 31, 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 fourth quarter and the full year of fiscal 2014 and 2013.


Quarter Ended Mar. 31,


Twelve Months Ended Mar. 31,


2014

2013


2014

2013


        (In thousands)

Revenues:






Self-moving equipment rentals                  

$398,636

$367,220


$1,955,423

$1,767,520

Self-storage revenues

48,003

40,835


181,794

152,660

Self-moving & self-storage products &    

   service sales                          

51,072

47,718


234,187

221,117

Property management fees

6,907

8,531


24,493

24,378

Life insurance premiums

38,211

40,774


157,919

178,115

Property and casualty insurance premiums

10,000

8,336


41,052

34,342

Net investment and interest income

19,755

29,930


79,591

82,903

Other revenue

38,000

20,963


160,793

97,552

    Total revenues

$610,584

$564,307


$2,835,252

$2,558,587

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



Quarter Ended Mar. 31,


Twelve Months Ended Mar. 31,


2014

2013


2014

2013

Moving and storage

            (In thousands)

   Revenues

$537,186

$489,118


$2,571,950

$2,282,342

   Earnings from operations before equity     






      earnings of subsidiaries

72,391

54,761


584,681

462,328

Property and casualty insurance






   Revenues

12,643

15,679


51,644

48,200

   Earnings from operations

2,815

7,203


19,332

14,194

Life insurance






   Revenues

52,924

60,358


215,528

231,490

   Earnings from operations

6,840

10,148


26,671

22,955

Eliminations






  Revenues

7,831

(848)


(3,870)

(3,445)

  Earnings from operations before equity in






     earnings of subsidiaries

(147)

(76)


(470)

(294)

Consolidated results






  Revenues

610,584

564,307


2,835,252

2,558,587

  Earnings from operations

81,899

72,036


630,214

499,183







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 storage locations follows:



Quarter Ended March 31,


2014


2013


(In thousands, except occupancy rate)

Room count as of March 31

207


186

Square footage as of March 31

18,164


16,034

Average monthly number of rooms occupied

163


144

Average monthly occupancy rate based on room count

79.3%


77.8%

Average monthly square footage occupied

14,543


12,613










Twelve Months Ended March 31,


2014


2013


(In thousands, except occupancy rate)

Room count as of March 31

207


186

Square footage as of March 31

18,164


16,034

Average monthly number of rooms occupied

160


139

Average monthly occupancy rate based on room count

80.5%


78.7%

Average monthly square footage occupied

14,148


11,999

 

 


AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED BALANCE SHEETS



 

March 31,


2014


2013







ASSETS


    (In thousands)

  Cash and cash equivalents

$

495,112


$

463,744

  Reinsurance recoverables and trade receivables, net


199,322



261,789

  Inventories, net


67,020



56,396

  Prepaid expenses


55,269



57,451

  Investments, fixed maturities and marketable equities


1,138,275



1,095,338

  Investments, other


248,850



241,765

  Deferred policy acquisition costs, net


118,707



93,043

  Other assets


97,588



99,986

  Related party assets


169,624



182,035



2,589,767



2,551,547







  Property, plant and equipment, at cost:






    Land


405,177



333,228

    Buildings and improvements


1,430,330



1,197,875

    Furniture and equipment


322,088



311,142

    Rental trailers and other rental equipment


373,325



317,476

    Rental trucks


2,610,797



2,154,688



5,141,717



4,314,409

  Less: Accumulated depreciation


(1,732,506)



(1,559,355)

    Total property, plant and equipment


3,409,211



2,755,054

  Total assets

$

5,998,978


$

5,306,601







LIABILITIES AND STOCKHOLDERS' EQUITY












Liabilities:






  Accounts payable and accrued expenses

$

357,954


$

358,491

  Notes, loans and leases payable


1,942,359



1,661,845

  Policy benefits and losses, claims and loss expenses payable


1,082,598



1,115,048

  Liabilities from investment contracts


616,725



510,789

  Other policyholders' funds and liabilities


7,988



7,294

  Deferred income


31,390



30,217

  Deferred income taxes


432,596



393,658

Total liabilities


4,471,610



4,077,342







Stockholders' equity:






  Common stock


10,497



10,497

  Additional paid-in capital


444,210



438,168

  Accumulated other comprehensive loss


(53,923)



(22,680)

  Retained earnings


1,805,453



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


(1,219)



(1,706)

Total stockholders' equity


1,527,368



1,229,259

Total liabilities and stockholders' equity

$

5,998,978


$

5,306,601







 

 


AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



Quarter Ended March 31,


2014


2013




(In thousands, except share and
per share data)

Revenues:


  Self-moving equipment rentals

$

398,636


$

367,220

  Self-storage revenues


48,003



40,835

  Self-moving and self-storage products and service sales


51,072



47,718

  Property management fees


6,907



8,531

  Life insurance premiums


38,211



40,774

  Property and casualty insurance premiums


10,000



8,336

  Net investment and interest income


19,755



29,930

  Other revenue


38,000



20,963

    Total revenues


610,584



564,307







Costs and expenses:






  Operating expenses


315,213



286,676

  Commission expenses


49,947



47,323

  Cost of sales


28,939



20,924

  Benefits and losses


37,447



41,258

  Amortization of deferred policy acquisition costs


5,785



8,086

  Lease expense


23,173



27,486

  Depreciation, net of (gains) losses on disposals


68,181



60,518

    Total costs and expenses


528,685



492,271







Earnings from operations


81,899



72,036

  Interest expense


(22,639)



(23,016)

Pretax earnings


59,260



49,020

  Income tax expense


(20,049)



(11,147)

Earnings available to common shareholders

$

39,211


$

37,873

Basic and diluted earnings per common share

$

2.00


$

1.93

Weighted average common shares outstanding: Basic and diluted


19,571,417



19,536,630







 

 

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



Twelve Months Ended March 31,


2014


2013




(In thousands, except share and
per share data)

Revenues:


  Self-moving equipment rentals

$

1,955,423


$

1,767,520

  Self-storage revenues


181,794



152,660

  Self-moving and self-storage products and service sales


234,187



221,117

  Property management fees


24,493



24,378

  Life insurance premiums


157,919



178,115

  Property and casualty insurance premiums


41,052



34,342

  Net investment and interest income


79,591



82,903

  Other revenue


160,793



97,552

    Total revenues


2,835,252



2,558,587







Costs and expenses:






  Operating expenses


1,288,481



1,170,568

  Commission expenses


252,525



228,124

  Cost of sales


127,270



107,216

  Benefits and losses


156,702



180,676

  Amortization of deferred policy acquisition costs


19,982



17,376

  Lease expense


100,466



117,448

  Depreciation, net of (gains) losses on disposals


259,612



237,996

    Total costs and expenses


2,205,038



2,059,404







Earnings from operations


630,214



499,183

  Interest expense


(92,692)



(90,696)

Pretax earning


537,522



408,487

  Income tax expense


(195,131)



(143,779)

Earnings available to common shareholders

$

342,391


$

264,708

Basic and diluted earnings per common share

$

17.51


$

13.56

Weighted average common shares outstanding: Basic and diluted


19,558,758



19,518,779







 

SOURCE AMERCO



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