AMERCO Reports Third Quarter Fiscal 2014 Financial Results

Feb 05, 2014, 16:26 ET from AMERCO

RENO, Nev., Feb. 5, 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 its third quarter ended December 31, 2013, of $52.2 million, or $2.67 per share, compared with net earnings of $36.8 million, or $1.89 per share, for the same period last year.

For the nine-month period ended December 31, 2013, net earnings available to shareholders were $303.2 million, or $15.50 per share compared with net earnings of $226.8 million, or $11.62 per share, for the same period last year.

"In multiple very competitive marketplaces, U-Haul team members are working to increase our service to the customer," stated AMERCO chairman Joe Shoen.

Highlights of Third Quarter Fiscal 2014 Results

  • Self-moving equipment rental revenues increased $41.3 million or 10% during the third quarter of fiscal 2014, compared with the third quarter of fiscal 2013 largely due to transaction growth.  Our ability to serve these additional customers has been made possible through the continued expansion of the rental equipment fleet combined with incremental utilization improvements along with the convenience of additional retail locations.  
  • Self-storage revenues increased $7.0 million during the third quarter of fiscal 2014, compared with the third quarter of fiscal 2013. Over the last twelve months we have added approximately 2.1 million net rentable square feet to our owned self-storage portfolio. These additions along with improvements in occupancy at our existing locations combined to drive our increased storage revenue.
  • Operating earnings at our Moving and Storage operating segment increased $19.4 million in the third quarter of fiscal 2014 compared with the same period last year.  Total revenues improved by $63.4 million with total costs and expenses increasing by $44.0 million.  Personnel expense, rental equipment maintenance, operating costs associated with the U-Box program, equipment depreciation and commissions on rental equipment transactions increased during the quarter.
  • For the first nine months of fiscal 2014 compared with the first nine months of fiscal 2013 gross truck and trailer capital expenditures were approximately $512 million compared with approximately $422 million. Proceeds from sales of rental equipment were approximately $204 million compared with approximately $159 million and spending on real estate related acquisitions and projects increased approximately $126 million to $256 million.
  • Cash, cash equivalents and credit availability at the Moving and Storage operating segment was $646.4 million at December 31, 2013 compared with $543.6 million at March 31, 2013. Subsequent to the quarter end, we entered into two new revolving loans for a combined total of $175 million.
  • In the third quarter of fiscal 2014, the Company declared a special cash dividend of $1.00 per share on its stock for holders of record as of January 10, 2014 and payable on February 14, 2014. 

AMERCO will hold its investor call for the third quarter of fiscal 2014 on Thursday, February 6, 2014, 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 December 31, 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 third quarter of fiscal 2014 and 2013.

Quarter Ended December 31,

2013

2012

(Unaudited)

(In thousands)

Revenue:

  Self-moving equipment rentals

$

436,207

394,945

  Self-storage revenues

46,120

39,111

  Self-moving and self-storage products and service sales                                             

47,045

44,491

  Property management fees

7,133

6,085

  Life insurance premiums

39,198

43,248

  Property and casualty insurance premiums

12,219

9,816

  Net investment and interest income

20,887

22,603

  Other revenue

32,537

22,188

    Consolidated revenue

$

641,346

582,487

 

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

Quarter Ended December 31,

2013

2012

(Unaudited)

(In thousands)

Moving and storage

   Revenues

$

578,162

514,806

   Earnings from operations before equity in earnings of subsidiaries

92,173

72,781

Property and casualty insurance

   Revenues

15,228

11,865

   Earnings from operations

5,716

2,062

Life insurance

   Revenues

53,152

56,766

   Earnings from operations

8,229

7,181

Eliminations

  Revenues

(5,196)

(950)

  Earnings from operations before equity in earnings of subsidiaries

(145)

(78)

Consolidated results

  Revenues

641,346

582,487

  Earnings from operations

105,973

81,946

 

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 December 31,

2013

2012

(Unaudited)

(In thousands, except occupancy rate)

Room count as of December 31

203

183

Square footage as of December 31

17,793

15,648

Average monthly number of rooms occupied

161

141

Average monthly occupancy rate based on room count

80.0%

78.1%

Average monthly square footage occupied

14,290

12,249

 

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

Nine Months Ended December 31,

2013

2012

(Unaudited)

(In thousands)

Revenue:

  Self-moving equipment rentals

$

1,556,787

1,400,300

  Self-storage revenues

133,791

111,825

  Self-moving and self-storage products and service sales                                                   

183,115

173,399

  Property management fees

17,586

15,847

  Life insurance premiums

119,708

137,341

  Property and casualty insurance premiums

31,052

26,006

  Net investment and interest income

59,836

52,973

  Other revenue

122,793

76,589

    Consolidated revenue

$

2,224,668

1,994,280

 

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

Nine Months Ended December 31,

2013

2012

(Unaudited)

(In thousands)

Moving and storage

   Revenues

$

2,034,764

1,793,224

   Earnings from operations before equity in earnings of subsidiaries

512,290

407,567

Property and casualty insurance

   Revenues

39,001

32,521

   Earnings from operations

16,517

6,991

Life insurance

   Revenues

162,604

171,132

   Earnings from operations

19,831

12,807

Eliminations

  Revenues

(11,701)

(2,597)

  Earnings from operations before equity in earnings of subsidiaries

(323)

(218)

Consolidated results

  Revenues

2,224,668

1,994,280

  Earnings from operations

548,315

427,147

 

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:

Nine Months Ended December 31,

2013

2012

(Unaudited)

(In thousands, except occupancy rate)

Room count as of December 31

203

183

Square footage as of December 31

17,793

15,648

Average monthly number of rooms occupied

159

138

Average monthly occupancy rate based on room count

80.9%

79.1%

Average monthly square footage occupied

14,016

11,795

 

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED BALANCE SHEETS

December 31, 2013

March 31, 2013

(Unaudited)

ASSETS

(In thousands)

  Cash and cash equivalents

$

601,615

$

463,744

  Reinsurance recoverables and trade receivables, net

228,424

261,789

  Inventories, net

65,258

56,396

  Prepaid expenses

44,344

57,451

  Investments, fixed maturities and marketable equities

1,122,121

1,095,338

  Investments, other

239,348

241,765

  Deferred policy acquisition costs, net

114,467

93,043

  Other assets

95,395

99,986

  Related party assets

170,038

182,035

2,681,010

2,551,547

  Property, plant and equipment, at cost:

    Land

392,725

333,228

    Buildings and improvements

1,382,182

1,197,875

    Furniture and equipment

320,587

311,142

    Rental trailers and other rental equipment

356,416

317,476

    Rental trucks

2,426,453

2,154,688

4,878,363

4,314,409

  Less: Accumulated depreciation

(1,685,264)

(1,559,355)

    Total property, plant and equipment

3,193,099

2,755,054

  Total assets

$

5,874,109

$

5,306,601

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

  Accounts payable and accrued expenses

$

351,796

$

358,491

  Notes, loans and leases payable

1,862,869

1,661,845

  Policy benefits and losses, claims and loss expenses payable

1,095,610

1,115,048

  Liabilities from investment contracts

596,268

510,789

  Other policyholders' funds and liabilities

7,271

7,294

  Deferred income

29,489

30,217

  Deferred income taxes

436,384

393,658

Total liabilities

4,379,687

4,077,342

Stockholders' equity:

  Common stock

10,497

10,497

  Additional paid-in capital

442,841

438,168

  Accumulated other comprehensive loss

(46,192)

(22,680)

  Retained earnings

1,766,242

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

(1,316)

(1,706)

Total stockholders' equity

1,494,422

1,229,259

Total liabilities and stockholders' equity

$

5,874,109

$

5,306,601

 

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Quarter Ended December 31,

2013

2012

(Unaudited)

(In thousands, except share and per share data)

Revenues:

  Self-moving equipment rentals

$

436,207

$

394,945

  Self-storage revenues

46,120

39,111

  Self-moving and self-storage products and service sales

47,045

44,491

  Property management fees

7,133

6,085

  Life insurance premiums

39,198

43,248

  Property and casualty insurance premiums

12,219

9,816

  Net investment and interest income

20,887

22,603

  Other revenue

32,537

22,188

    Total revenues

641,346

582,487

Costs and expenses:

  Operating expenses

313,227

290,285

  Commission expenses

55,573

51,130

  Cost of sales

28,229

23,153

  Benefits and losses

38,630

42,608

  Amortization of deferred policy acquisition costs

4,457

3,391

  Lease expense

24,468

27,575

  Depreciation, net of (gains) on disposals of (($1,961) and ($1,831), respectively)

70,789

62,399

    Total costs and expenses

535,373

500,541

Earnings from operations

105,973

81,946

  Interest expense

(23,607)

(22,076)

Pretax earnings

82,366

59,870

  Income tax expense

(30,145)

(23,024)

Earnings available to common shareholders

$

52,221

$

36,846

Basic and diluted earnings per common share

$

2.67

$

1.89

Weighted average common shares outstanding: Basic and diluted

19,563,663

19,523,794

 

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Nine Months Ended December 31,

2013

2012

(Unaudited)

(In thousands, except share and per share data)

Revenues:

  Self-moving equipment rentals

$

1,556,787

$

1,400,300

  Self-storage revenues

133,791

111,825

  Self-moving and self-storage products and service sales

183,115

173,399

  Property management fees

17,586

15,847

  Life insurance premiums

119,708

137,341

  Property and casualty insurance premiums

31,052

26,006

  Net investment and interest income

59,836

52,973

  Other revenue

122,793

76,589

    Total revenues

2,224,668

1,994,280

Costs and expenses:

  Operating expenses

973,268

883,892

  Commission expenses

202,578

180,801

  Cost of sales

98,331

86,292

  Benefits and losses

119,255

139,418

  Amortization of deferred policy acquisition costs

14,197

9,290

  Lease expense

77,293

89,962

  Depreciation, net of (gains) on disposals of (($22,837) and ($14,879), respectively)

191,431

177,478

    Total costs and expenses

1,676,353

1,567,133

Earnings from operations

548,315

427,147

  Interest expense

(70,053)

(67,680)

Pretax earnings

478,262

359,467

  Income tax expense

(175,082)

(132,632)

Earnings available to common shareholders

$

303,180

$

226,835

Basic and diluted earnings per common share

$

15.50

$

11.62

Weighted average common shares outstanding: Basic and diluted

19,554,641

19,512,974

 

SOURCE AMERCO



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