AMERCO Reports First Quarter Fiscal 2011 Financial Results

News provided by

AMERCO

Aug 04, 2010, 04:35 ET

RENO, Nev., Aug. 4 /PRNewswire-FirstCall/ -- AMERCO (Nasdaq: UHAL), parent of U-Haul International, Inc., North America's largest "do-it-yourself" moving and storage operator, today reported net earnings available to common shareholders for its first quarter ending June 30, 2010, of $63.3 million, or $3.26 per share, compared with net earnings of $19.5 million, or $1.01 per share, for the same period last year.

"Programs implemented over the past 18 months have provided the momentum for increased transaction levels during the first quarter," stated Joe Shoen, chairman of AMERCO.  "Revenue growth combined with our continuing cost control measures are generating improved operating results," concluded Shoen.

Highlights of First Quarter 2011 Results

  • Self-moving equipment rental revenues increased $46.5 million, or 12.5% for the first quarter of fiscal 2011 compared with the first quarter of fiscal 2010.  In-town and one-way transactions increased during the quarter and we were able to improve our equipment utilization.  The $419.5 million of self-moving equipment rental revenues is a record high for first quarter U-Move revenue.    
  • Self-storage revenues increased $1.2 million for the first quarter of fiscal 2011 compared with the first quarter of fiscal 2010.  The average number of occupied rooms during the quarter increased nearly 5% compared with the same period last year.  We have added over 590,000 net rentable square feet to the portfolio over the last twelve months, including 150,000 net rentable square feet during the quarter.  
  • Operating expenses at the Moving and Storage segment decreased $6.5 million for the first quarter of fiscal 2011 compared with the first quarter of fiscal 2010.  Maintenance and repair expenses and liability costs related to the equipment fleet continue to trend lower than last year.
  • For the first quarter of fiscal 2011 net gains from the disposal of property, plant and equipment were $8.4 million compared with net losses of $1.3 million in the first quarter of fiscal 2010.  Fiscal 2011 included gains from the disposal of real estate of $1.2 million with the remaining portion coming from equipment disposals.  Excluding these disposal gains and losses, total depreciation decreased $4.9 million for the first quarter of fiscal 2011 compared with the same period last year.

AMERCO will hold its investor call for the first quarter of fiscal 2011 on Thursday, August 5, 2010, 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., North America's largest "do-it-yourself" moving and storage operator, AMERCO Real Estate Company, Republic Western Insurance Company and Oxford Life Insurance Company.

Since 1945, U-Haul has been the choice for the do-it-yourself mover, with a network of more than 16,300 locations in all 50 States and 10 Canadian provinces. U-Haul customers' patronage has enabled the Company to maintain the largest rental fleet in the "do-it-yourself" moving industry with approximately 98,000 trucks, 77,000 trailers and 34,000 towing devices. U-Haul offers more than 403,000 rooms and 35.6 million square feet of storage space at nearly 1,100 owned and managed facilities throughout North America. U-Haul is the consumer's number one choice as the largest installer of permanent trailer hitches in the automotive aftermarket industry. The Company supplies alternative-fuel for vehicles and backyard barbecues as one of the nation's largest retailers of propane.

U-Haul was founded by a Navy veteran who grew up during the Great Depression. Tires and gas were still rationed or in short supply during the late 1940s when U-Haul began serving U.S. customers. Today, that background is central to the U-Haul Sustainability Program: "Serving the needs of the present without compromising the ability of future generations to meet their own needs."  Our commitment to reduce, reuse and recycle includes fuel-efficient moving vans, neighborhood proximity, moving box reuse, moving pads made from discarded material and packing peanuts that are 100 percent biodegradable.  Learn more about these facts and others at uhaul.com/sustainability.

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 Form 10-Q for the quarter ended June 30, 2010, 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 first quarter of
fiscal 2011 and fiscal 2010.


Quarter Ended June 30,


2010

2009


(Unaudited)


(In thousands)

Revenue:



   Self-moving equipment rentals

$

419,463

$

372,941

   Self-storage revenues

28,227

27,004

   Self-moving and self-storage products and service sales

63,290

57,822

   Property management fees

4,536

4,450

   Life insurance premiums

37,803

27,604

   Property and casualty insurance premiums

6,179

6,215

   Net investment and interest income

13,355

13,680

   Other revenue

13,094

10,943

       Consolidated revenue

$

585,947

$

520,659

Listed below are revenues and earnings from operations at each of our operating segments for
the first quarter of fiscal 2011 and fiscal 2010.


Quarter Ended June 30,


2010

2009


(Unaudited)


(In thousands)

Moving and storage



   Revenues

$

535,158

$

479,673

   Earnings from operations

126,435

57,777

Property and casualty insurance



   Revenues

8,094

8,051

   Earnings from operations

1,397

1,427

Life insurance



   Revenues

43,842

33,872

   Earnings from operations

3,403

2,578

Eliminations



   Revenues

(1,147)

(937)

   Earnings from operations

(3,126)

(2,586)

Consolidated results



   Revenues

585,947

520,659

   Earnings from operations

128,109

59,196

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 June 30,

2010

2009

(Unaudited)

(In thousands, except occupancy rate)

Room count as of June 30

403

398

Square footage as of June 30

35,624

35,103

Average number of rooms occupied

312

307

Average occupancy rate based on room count

77.4%

77.3%

Average square footage occupied

28,224

27,664

AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED BALANCE SHEETS


June 30, 2010

March 31, 2010


(Unaudited)

ASSETS

(In thousands)

   Cash and cash equivalents

$

288,114

$

244,118

   Reinsurance recoverables and trade receivables, net

213,656

198,283

   Notes and mortgage receivables, net

1,227

1,461

   Inventories, net

55,626

52,837

   Prepaid expenses

55,710

53,379

   Investments, fixed maturities and marketable equities

593,562

549,318

   Investments, other

192,724

227,486

   Deferred policy acquisition costs, net

38,905

39,194

   Other assets

146,993

145,864

   Related party assets

296,601

302,126


1,883,118

1,814,066





   Property, plant and equipment, at cost:



       Land

223,753

224,904

       Buildings and improvements

992,336

970,937

       Furniture and equipment

324,988

323,334

       Rental trailers and other rental equipment

242,451

244,131

       Rental trucks

1,562,423

1,529,817


3,345,951

3,293,123

   Less: Accumulated depreciation

(1,349,529)

(1,344,735)

       Total property, plant and equipment

1,996,422

1,948,388

   Total assets

$

3,879,540

$

3,762,454





LIABILITIES AND STOCKHOLDERS' EQUITY








Liabilities:



   Accounts payable and accrued expenses

$

338,794

$

296,057

   Notes, loans and leases payable

1,338,636

1,347,635

   Policy benefits and losses, claims and loss expenses payable

826,189

816,909

   Liabilities from investment contracts

263,142

268,810

   Other policyholders' funds and liabilities

8,055

8,155

   Deferred income

31,889

25,207

   Deferred income taxes

207,727

186,770

Total liabilities

3,014,432

2,949,543





Stockholders' equity:



   Common stock


10,497

10,497

   Additional paid-in capital

418,899

419,811

   Accumulated other comprehensive loss

(66,708)

(56,207)

   Retained earnings

1,032,332

969,017

   Cost of common shares in treasury, net

(525,653)

(525,653)

   Unearned employee stock ownership plan shares

(4,259)

(4,554)

Total stockholders' equity

865,108

812,911

Total liabilities and stockholders' equity

$

3,879,540

$

3,762,454

AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


Quarter Ended June 30,


2010

2009


(Unaudited)


(In thousands, except share and
per share amounts)

Revenues:



   Self-moving equipment rentals

$

419,463

$

372,941

   Self-storage revenues

28,227

27,004

   Self-moving and self-storage products and service sales

63,290

57,822

   Property management fees

4,536

4,450

   Life insurance premiums

37,803

27,604

   Property and casualty insurance premiums

6,179

6,215

   Net investment and interest income

13,355

13,680

   Other revenue

13,094

10,943

       Total revenues

585,947

520,659





Costs and expenses:



   Operating expenses

253,134

258,501

   Commission expenses

52,169

44,411

   Cost of sales

31,665

30,450

   Benefits and losses

35,422

27,694

   Amortization of deferred policy acquisition costs

2,193

1,917

   Lease expense

38,666

39,273

   Depreciation, net of (gains) losses on disposals

44,589

59,217

       Total costs and expenses

457,838

461,463





Earnings from operations

128,109

59,196

   Interest expense

(21,464)

(23,221)

Pretax earnings

106,645

35,975

   Income tax expense

(40,143)

(13,543)

Net earnings

66,502

22,432

   Excess (loss) of carrying amount of preferred stock over consideration paid

(31)

323

   Less: Preferred stock dividends

(3,156)

(3,241)

Earnings available to common shareholders

$

63,315

$

19,514

Basic and diluted earnings per common share

$

3.26

$

1.01

Weighted average common shares outstanding: Basic and diluted

19,414,815

19,369,591






SOURCE AMERCO

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