AMERCO Reports Third Quarter Fiscal 2014 Financial Results

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



RELATED LINKS
http://www.amerco.com

More by this Source

Best of Content We Love 2014 


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.