AMERCO Reports First Quarter Fiscal 2017 Financial Results

RENO, Nev., Aug. 3, 2016 /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 first quarter ended June 30, 2016, of $147.2 million, or $7.51 per share, compared with net earnings of $171.3 million, or $8.74 per share, for the same period last year. 

"Our moving and storage business remains strong.  People are still moving," stated Joe Shoen, chairman of AMERCO. "We are seeing the strong truck chassis cost increases put through by Ford and General Motors reflected in our bottom line."

Highlights of First Quarter Fiscal 2017 Results

• Self-moving equipment rental revenues increased $17.1 million, or 2.7% for the first quarter of fiscal 2017 compared with the first quarter of fiscal 2016. We increased the number of trucks in our rental equipment fleet, expanded the number of independent dealers in our distribution network and added Company-owned locations compared with the same period last year. Revenue increased primarily from transaction gains.
• Self-storage revenues increased $10.5 million, or 18.4% for the first quarter of fiscal 2017 compared with the first quarter of fiscal 2016. The average monthly amount of occupied square feet increased by 14.2% during the first quarter of fiscal 2017 compared with the same period last year. The growth in revenues and square feet rented comes from a combination of improved occupancy at existing locations as well as the addition of new facilities to the portfolio. Over the last twelve months we have added approximately 4.2 million net rentable square feet to the self-storage portfolio with approximately 1.0 million of that coming on during the first quarter.
• Depreciation, net of gains and losses on disposals increased $44.4 million due to increased costs of acquisition, the sale of fewer trucks in the period and lower relative sales values compared to the same period last year.
• For the first quarter of fiscal 2017 compared with the first quarter of fiscal 2016 gross truck and trailer capital expenditures were approximately $419 million compared with approximately $310 million. Proceeds from sales of rental equipment were $146 million compared with $193 million and spending on real estate related acquisitions and projects were approximately $124 million compared with $113 million, respectively.
• As a result of changes in IRS regulations regarding the capitalization of low value assets, the Company has changed its policy. This shift in procedure results in the immediate recognition of reported operating costs with a lagging decrease in depreciation expense over the term that these assets would have been depreciated. For the first quarter of fiscal 2017 this resulted in an additional $4.7 million of operating expenses. This change is expected to benefit the Company through the immediate recognition of tax deductible costs.
• Cash and credit availability at the Moving and Storage segment was $719.7 million at June 30, 2016 compared with $633.7 million at March 31, 2016.
• On March 15, 2016, we declared a cash dividend on our Common Stock of $1.00 per share to holders of record on April 5, 2016. The dividend was paid on April 21, 2016.
• Gary Horton, AMERCO's long serving and valued Treasurer, passed away suddenly on March 9, 2016. Jason Berg, our former Chief Accounting Officer, has been promoted to Chief Financial Officer. Mary Thompson, Treasurer of Repwest, has succeeded Jason as Chief Accounting Officer.
• We are holding our 10^th Annual Virtual Analyst and Investor meeting on Thursday, August 25, 2016 at 11:00 a.m. Arizona Time (2:00 p.m. Eastern). This is an opportunity to interact directly with Company representatives through a live video webcast. A brief presentation by the Company will be followed by a question and answer session.

AMERCO will hold its investor call for the first quarter of fiscal 2017 on Thursday, August 4, 2016, 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-Q for the quarter ended June 30, 2016, 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 first quarter of fiscal 2017 and 2016.

Listed below are revenues and earnings from operations at each of our operating segments for the first quarter of fiscal 2017 and 2016.

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 locations follows:

SOURCE AMERCO

Related Links

http://www.amerco.com