AMERCO Reports Second Quarter Fiscal 2014 Financial Results

RENO, Nev., Nov. 6, 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 shareholders for its second quarter ended September 30, 2013, of $138 million, or $7.06 per share, compared with net earnings of $109.4 million, or $5.61 per share, for the same period last year.

For the six-month period ended September 30, 2013, net earnings available to common shareholders were $251 million, or $12.84 per share compared with net earnings of $190 million, or $9.74 per share, for the same period last year.

"Our efforts to improve convenience for our customers through the addition of new company operated locations and independent dealers along with an expanded fleet of trucks and trailers has resulted in continued revenue growth," stated Joe Shoen, chairman of AMERCO. 

Highlights of Second Quarter Fiscal 2014 Results

  • Self-moving equipment rental revenues increased $60.6 million or 11% during the second quarter of fiscal 2014, compared with the second quarter of fiscal 2013 on continued growth in moving transactions. Continued expansion of the rental fleet, incremental improvements in utilization and additional retail locations are enabling us to serve more customers.
  • Self-storage revenues increased $7.6 million during the second quarter of fiscal 2014, compared with the second quarter of fiscal 2013. We are increasing both the number of rooms rented through acquisitions and by improving occupancy at existing locations. Over the last twelve months we have added approximately 2.2 million net rentable square feet to our owned self-storage portfolio.
  • Operating earnings at our Moving and Storage operating segment increased $38.3 million in the second quarter of fiscal 2014 compared with the same period last year. Total revenues climbed $96.6 million while being partially offset by a $58.3 million increase in total costs and expenses. The expense increases included personnel, rental equipment maintenance, operating costs associated with the U-Box program, equipment depreciation and commissions on rental equipment transactions.
  • For the first six months of fiscal 2014 compared with the first six months of fiscal 2013 gross truck and trailer capital expenditures were approximately $383 million compared with approximately $331 million, proceeds from sales of rental equipment were $167 million compared with $131 million and spending on real estate related acquisitions and projects increased approximately $84 million to $155 million.
  • Cash and credit availability at the Moving and Storage operating segment was $712.7 million at September 30, 2013 compared with $543.6 million at March 31, 2013. Subsequent to the quarter end, we entered into two new real estate loans totaling $150 million.

AMERCO will hold its investor call for the second quarter of fiscal 2014 on Thursday, November 7, 2013, at 8 a.m. Arizona Time (10 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 September 30, 2013, 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 second quarter of fiscal 2014 and 2013.


Quarter Ended September 30,



2013


2012


(Unaudited)


(In thousands)

Revenue:





  Self-moving equipment rentals

$

598,931

$

538,361

  Self-storage revenues


45,572


37,978

  Self-moving and self-storage products and service sales                                             


65,379


61,730

  Property management fees


5,292


4,902

  Life insurance premiums


39,448


47,667

  Property and casualty insurance premiums


10,867


8,947

  Net investment and interest income


19,960


15,853

  Other revenue


51,042


28,679

    Consolidated revenue

$

836,491

$

744,117










 

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



Quarter Ended September 30,



2013


2012



(Unaudited)



(In thousands)

Moving and storage





   Revenues

$

772,199

$

675,569

   Earnings from operations before equity in earnings of subsidiaries


226,109


187,827

Property and casualty insurance





   Revenues


13,330


11,213

   Earnings from operations


6,411


2,342

Life insurance





   Revenues


54,673


58,224

   Earnings from operations


7,542


4,222

Eliminations





  Revenues


(3,711)


(889)

  Earnings from operations before equity in earnings of subsidiaries


(96)


(69)

Consolidated results





  Revenues


836,491


744,117

  Earnings from operations


239,966


194,322

 


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:


Quarter Ended September 30,


2013


2012


(Unaudited)


(In thousands, except occupancy rate)

Room count as of September 30

456


435

Square footage as of September 30

40,980


38,818

Average monthly number of rooms occupied

387


359

Average monthly occupancy rate based on room count

85.0%


83.3%

Average monthly square footage occupied

35,455


32,603

 

Listed below on a consolidated basis are revenues for our major product lines for the first six months of fiscal 2014 and 2013.




Six Months Ended September 30,




2013


2012




(Unaudited)




(In thousands)

Revenue:





  Self-moving equipment rentals

$

1,120,580

$

1,005,355

  Self-storage revenues


87,671


72,714

  Self-moving and self-storage products and service sales                                                   


136,070


128,908

  Property management fees


10,453


9,762

  Life insurance premiums


80,510


94,093

  Property and casualty insurance premiums


18,833


16,190

  Net investment and interest income


38,949


30,370

  Other revenue


90,256


54,401

    Total revenues

$

1,583,322

$

1,411,793









 

Listed below are revenues and earnings from operations at each of our operating segments for the first six months of fiscal 2014 and 2013. The insurance companies first six months ended June 30, 2013 and 2012.



Six Months Ended September 30,



2013


2012



(Unaudited)



(In thousands)

Moving and storage





   Revenues

$

1,456,602

$

1,278,418

   Earnings from operations before equity in earnings of subsidiaries


420,117


334,786

Property and casualty insurance





   Revenues


23,773


20,656

   Earnings from operations


10,801


4,929

Life insurance





   Revenues


109,452


114,366

   Earnings from operations


11,602


5,626

Eliminations





  Revenues


(6,505)


(1,647)

  Earnings from operations before equity in earnings of subsidiaries


(178)


(140)

Consolidated results





  Revenues


1,583,322


1,411,793

  Earnings from operations


442,342


345,201







 

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:



Six Months Ended September 30,


2013


2012


(Unaudited)


(In thousands, except occupancy rate)

Room count as of September 30

456


435

Square footage as of September 30

40,980


38,818

Average monthly number of rooms occupied

379


350

Average monthly occupancy rate based on room count

83.7%


81.6%

Average monthly square footage occupied

34,668


31,745

 

 

 


AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED BALANCE SHEETS




September 30, 2013


March 31, 2013



(Unaudited)





ASSETS


(In thousands)

  Cash and cash equivalents

$

679,576

$

463,744


  Reinsurance recoverables and trade receivables, net


237,235


261,789


  Inventories, net


61,430


56,396


  Prepaid expenses


55,129


57,451


  Investments, fixed maturities and marketable equities


1,114,340


1,095,338


  Investments, other


212,707


241,765


  Deferred policy acquisition costs, net


109,303


93,043


  Other assets


104,591


99,986


  Related party assets


168,830


182,035




2,743,141


2,551,547








  Property, plant and equipment, at cost:






    Land


363,142


333,228


    Buildings and improvements


1,313,963


1,197,875


    Furniture and equipment


311,765


311,142


    Rental trailers and other rental equipment


350,101


317,476


    Rental trucks


2,330,298


2,154,688




4,669,269


4,314,409


  Less: Accumulated depreciation


(1,636,065)


(1,559,355)


    Total property, plant and equipment


3,033,204


2,755,054


  Total assets

$

5,776,345

$

5,306,601








LIABILITIES AND STOCKHOLDERS' EQUITY












Liabilities:






  Accounts payable and accrued expenses

$

362,493

$

358,491


  Notes, loans and leases payable


1,775,119


1,661,845


  Policy benefits and losses, claims and loss expenses payable


1,115,025


1,115,048


  Liabilities from investment contracts


570,321


510,789


  Other policyholders' funds and liabilities


7,788


7,294


  Deferred income


32,388


30,217


  Deferred income taxes


451,392


393,658


Total liabilities


4,314,526


4,077,342








Stockholders' equity:






  Common stock


10,497


10,497


  Additional paid-in capital


440,938


438,168


  Accumulated other comprehensive loss


(44,109)


(22,680)


  Retained earnings


1,733,589


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


(1,446)


(1,706)


Total stockholders' equity


1,461,819


1,229,259


Total liabilities and stockholders' equity

$

5,776,345

$

5,306,601









 

 

 

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



Quarter Ended September 30,


2013


2012


(Unaudited)


(In thousands, except share and per share data)

Revenues:





  Self-moving equipment rentals

$

598,931

$

538,361

  Self-storage revenues


45,572


37,978

  Self-moving and self-storage products and service sales


65,379


61,730

  Property management fees


5,292


4,902

  Life insurance premiums


39,448


47,667

  Property and casualty insurance premiums


10,867


8,947

  Net investment and interest income


19,960


15,853

  Other revenue


51,042


28,679

    Total revenues


836,491


744,117






Costs and expenses:





  Operating expenses


350,540


310,214

  Commission expenses


78,378


68,564

  Cost of sales


34,532


30,912

  Benefits and losses


37,992


48,472

  Amortization of deferred policy acquisition costs


6,057


3,088

  Lease expense


25,818


29,591

  Depreciation, net of (gains) on disposals of (($9,311) and ($5,532), respectively)


63,208


58,954

    Total costs and expenses


596,525


549,795






Earnings from operations


239,966


194,322

  Interest expense


(23,118)


(22,113)

Pretax earnings


216,848


172,209

  Income tax expense


(78,857)


(62,789)

Earnings available to common shareholders

$

137,991

$

109,420

Basic and diluted earnings per common share

$

7.06

$

5.61

Weighted average common shares outstanding: Basic and diluted


19,554,633


19,512,550











 

 


AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS







Six Months Ended September 30,



2013


2012



(Unaudited)



(In thousands, except share and per share data)

Revenues:





  Self-moving equipment rentals

$

1,120,580

$

1,005,355

  Self-storage revenues


87,671


72,714

  Self-moving and self-storage products and service sales


136,070


128,908

  Property management fees


10,453


9,762

  Life insurance premiums


80,510


94,093

  Property and casualty insurance premiums


18,833


16,190

  Net investment and interest income


38,949


30,370

  Other revenue


90,256


54,401

    Total revenues


1,583,322


1,411,793






Costs and expenses:





  Operating expenses


660,041


593,607

  Commission expenses


147,005


129,671

  Cost of sales


70,102


63,139

  Benefits and losses


80,625


96,810

  Amortization of deferred policy acquisition costs


9,740


5,899

  Lease expense


52,825


62,387

  Depreciation, net of (gains) on disposals of (($20,876) and ($13,048), respectively)


120,642


115,079

    Total costs and expenses


1,140,980


1,066,592






Earnings from operations


442,342


345,201

  Interest expense


(46,446)


(45,604)

Pretax earnings


395,896


299,597

  Income tax expense


(144,937)


(109,608)

Earnings available to common shareholders

$

250,959

$

189,989

Basic and diluted earnings per common share

$

12.84

$

9.74

Weighted average common shares outstanding: Basic and diluted


19,550,128


19,507,456












 

SOURCE AMERCO



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