RENO, Nev., June 9 /PRNewswire-FirstCall/ -- AMERCO (Nasdaq: UHAL), parent of U-Haul International, Inc., North America's largest "do-it-yourself" moving and storage operator, today reported that net earnings available to common shareholders for the year ended March 31, 2010 were $53.2 million, or $2.74 per share, compared with net earnings of $447 thousand, or $0.02 per share for the same period last year.
For the quarter ended March 31, 2010, the Company reported a net loss to common shareholders of $8.2 million, or $0.43 per share, compared with a net loss of $38.5 million, or $1.99 per share for the same period last year.
"We experienced marked improvement in our results over the second half of this past year," stated Joe Shoen, chairman of AMERCO. "While we are pleased with the progress made during the year, there is still much work to be done. Our employees, dealers and affiliates are to be commended for their dedication and efforts toward serving U-Haul customers," concluded Shoen.
Highlights of Full-Year and Fourth-Quarter 2010 Results
- Self-moving equipment rental revenue increased $16.1 million in the fourth quarter of fiscal 2010 compared with the fourth quarter of fiscal 2009, but finished the full year down $3.3 million compared with the full year of fiscal 2009. The quarterly improvement comes primarily from increased transactions in both our one-way and in-town markets.
- Self-storage revenues for Moving and Storage segment increased $0.3 million for the fourth quarter of fiscal 2010 compared with the fourth quarter of fiscal 2009 and finished the full year down $0.2 million compared with fiscal 2009. We began to generate occupancy gains over the last half of fiscal 2010 compared with the same period last year. During fiscal 2010 we added over 580,000 of net rentable square feet to the storage portfolio.
- Operating expenses at the Moving and Storage segment decreased $13.0 million for the fourth quarter of fiscal 2010 compared with the fourth quarter of fiscal 2009 and finished the full year down $35.8 million. Maintenance and repair costs have been positively influenced by the retirement of older equipment from the fleet and liability costs have decreased as expected losses from prior years are developing positively.
- For the fourth quarter of fiscal 2010 net gains on the disposal of property, plant and equipment were $0.5 million compared with losses of $1.6 million in fiscal 2009. For the full year in fiscal 2010 these gains were $2.0 million compared with net losses of $16.6 million in fiscal 2009. Excluding these disposal gains and losses, total depreciation decreased $8.5 million for the fourth quarter of 2010 and $19.0 million for the full year.
- Gross truck and trailer capital expenditures for the fiscal 2010 were approximately $218 million compared with $516 million in fiscal 2009. Proceeds from the sales of rental equipment increased $17.5 million to $140.5 million for fiscal 2010 compared with fiscal 2009.
AMERCO will hold its investor call for the fiscal year 2010 on Thursday, June 10, 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 nearly 402,000 rooms and approximately 35.5 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.
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-K for the year ended March 31, 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 fourth quarter and the full year of fiscal 2010 and fiscal 2009.
Quarter Ended Mar. 31, |
Twelve Months Ended Mar. 31, |
|||||
2010 |
2009 |
2010 |
2009 |
|||
(In thousands) |
||||||
Self-moving equipment rentals |
$298,307 |
$282,192 |
1,419,726 |
$1,423,022 |
||
Self-storage revenues |
28,022 |
27,699 |
110,369 |
110,548 |
||
Self-moving and self-storage products and service sales |
44,364 |
39,879 |
198,785 |
199,394 |
||
Property management fees |
7,200 |
7,696 |
21,632 |
23,192 |
||
Life insurance premiums |
38,992 |
28,047 |
134,345 |
109,572 |
||
Property & casualty insurance premiums |
6,554 |
6,725 |
27,625 |
28,337 |
||
Net investment & interest income |
11,081 |
13,529 |
49,989 |
58,021 |
||
Other revenue |
9,274 |
9,626 |
39,534 |
40,180 |
||
Consolidated revenue |
$443,794 |
$415,393 |
$2,002,005 |
$1,992,266 |
||
Listed below are revenues and earnings (loss) from operations at each of our operating segments for the fourth quarter and the full year of fiscal 2010 and fiscal 2009.
Quarter Ended Mar. 31, |
Twelve Months Ended Mar. 31, |
|||||
2010 |
2009 |
2010 |
2009 |
|||
Moving and storage |
(In thousands) |
|||||
Revenues |
$393,268 |
$373,679 |
$1,816,322 |
$1,823,049 |
||
Earnings (loss) from operations |
7,537 |
(33,951) |
185,329 |
112,080 |
||
Property and casualty insurance |
||||||
Revenues |
7,838 |
8,527 |
34,390 |
37,419 |
||
Earnings from operations |
1,593 |
496 |
6,279 |
7,505 |
||
Life insurance |
||||||
Revenues |
43,729 |
34,135 |
155,725 |
135,056 |
||
Earnings from operations |
4,807 |
4,357 |
16,858 |
17,748 |
||
Eliminations |
||||||
Revenues |
(1,041) |
(948) |
(4,432) |
(3,258) |
||
Earnings from operations |
(3,972) |
(3,037) |
(14,929) |
(16,285) |
||
Consolidated results |
||||||
Revenues |
443,794 |
415,393 |
2,002,005 |
1,992,266 |
||
Earnings (loss) from operations |
9,965 |
(32,135) |
193,537 |
121,048 |
||
AMERCO AND CONSOLIDATED ENTITIES CONSOLIDATED BALANCE SHEETS |
|||||
March 31, |
|||||
2010 |
2009 |
||||
ASSETS |
(In thousands) |
||||
Cash and cash equivalents |
$ |
244,118 |
$ |
240,587 |
|
Reinsurance recoverables and trade receivables, net |
198,283 |
213,853 |
|||
Notes and mortgage receivables, net |
1,461 |
2,931 |
|||
Inventories, net |
52,837 |
70,749 |
|||
Prepaid expenses |
53,379 |
53,733 |
|||
Investments, fixed maturities and marketable equities |
549,318 |
519,631 |
|||
Investments, other |
227,486 |
227,022 |
|||
Deferred policy acquisition costs, net |
39,194 |
44,993 |
|||
Other assets |
145,864 |
134,112 |
|||
Related party assets |
302,126 |
303,534 |
|||
1,814,066 |
1,811,145 |
||||
Property, plant and equipment, at cost: |
|||||
Land |
224,904 |
212,744 |
|||
Buildings and improvements |
970,937 |
920,294 |
|||
Furniture and equipment |
323,334 |
333,314 |
|||
Rental trailers and other rental equipment |
244,131 |
214,988 |
|||
Rental trucks |
1,529,817 |
1,666,151 |
|||
3,293,123 |
3,347,491 |
||||
Less: Accumulated depreciation |
(1,344,735) |
(1,333,563) |
|||
Total property, plant and equipment |
1,948,388 |
2,013,928 |
|||
Total assets |
$ |
3,762,454 |
$ |
3,825,073 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||
Liabilities: |
|||||
Accounts payable and accrued expenses |
$ |
296,057 |
$ |
329,227 |
|
Notes, loans and leases payable |
1,347,635 |
1,546,490 |
|||
Policy benefits and losses, claims and loss expenses payable |
816,909 |
779,309 |
|||
Liabilities from investment contracts |
268,810 |
303,332 |
|||
Other policyholders' funds and liabilities |
8,155 |
11,961 |
|||
Deferred income |
25,207 |
24,612 |
|||
Deferred income taxes |
186,770 |
112,513 |
|||
Total liabilities |
2,949,543 |
3,107,444 |
|||
Stockholders' equity: |
|||||
Common stock |
10,497 |
10,497 |
|||
Additional paid-in capital |
419,811 |
420,588 |
|||
Accumulated other comprehensive loss |
(56,207) |
(98,000) |
|||
Retained earnings |
969,017 |
915,862 |
|||
Cost of common shares in treasury, net |
(525,653) |
(525,653) |
|||
Unearned employee stock ownership plan shares |
(4,554) |
(5,665) |
|||
Total stockholders' equity |
812,911 |
717,629 |
|||
Total liabilities and stockholders' equity |
$ |
3,762,454 |
$ |
3,825,073 |
|
AMERCO AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||
Quarter Ended March 31, |
|||||
2010 |
2009 |
||||
(In thousands, except share and per share amounts) |
|||||
Revenues: |
|||||
Self-moving equipment rentals |
$ |
298,307 |
$ |
282,192 |
|
Self-storage revenues |
28,022 |
27,699 |
|||
Self-moving and self-storage products and service sales |
44,364 |
39,879 |
|||
Property management fees |
7,200 |
7,696 |
|||
Life insurance premiums |
38,992 |
28,047 |
|||
Property and casualty insurance premiums |
6,554 |
6,725 |
|||
Net investment and interest income |
11,081 |
13,529 |
|||
Other revenue |
9,274 |
9,626 |
|||
Total revenues |
443,794 |
415,393 |
|||
Costs and expenses: |
|||||
Operating expenses |
245,117 |
257,353 |
|||
Commission expenses |
35,621 |
32,592 |
|||
Cost of sales |
24,443 |
23,531 |
|||
Benefits and losses |
33,645 |
23,040 |
|||
Amortization of deferred policy acquisition costs |
1,202 |
5,225 |
|||
Lease expense |
39,205 |
40,621 |
|||
Depreciation, net of (gains) losses on disposals |
54,596 |
65,166 |
|||
Total costs and expenses |
433,829 |
447,528 |
|||
Earnings (loss) from operations |
9,965 |
(32,135) |
|||
Interest expense |
(22,671) |
(23,696) |
|||
Pretax loss |
(12,706) |
(55,831) |
|||
Income tax benefit |
7,686 |
20,543 |
|||
Net loss |
(5,020) |
(35,288) |
|||
Excess carrying amount of preferred stock over consideration paid |
7 |
- |
|||
Less: Preferred stock dividends |
(3,198) |
(3,240) |
|||
Loss available to common shareholders |
$ |
(8,211) |
$ |
(38,528) |
|
Basic and diluted loss per common share |
$ |
(0.43) |
$ |
(1.99) |
|
Weighted average common shares outstanding: |
|||||
Basic and diluted |
19,402,035 |
19,357,185 |
|||
AMERCO AND CONSOLIDATED ENTITIES CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||
Twelve Months Ended March 31, |
||||||
2010 |
2009 |
|||||
(In thousands, except share and per share amounts) |
||||||
Revenues: |
||||||
Self-moving equipment rentals |
$ |
1,419,726 |
$ |
1,423,022 |
||
Self-storage revenues |
110,369 |
110,548 |
||||
Self-moving and self-storage products and service sales |
198,785 |
199,394 |
||||
Property management fees |
21,632 |
23,192 |
||||
Life insurance premiums |
134,345 |
109,572 |
||||
Property and casualty insurance premiums |
27,625 |
28,337 |
||||
Net investment and interest income |
49,989 |
58,021 |
||||
Other revenue |
39,534 |
40,180 |
||||
Total revenues |
2,002,005 |
1,992,266 |
||||
Costs and expenses: |
||||||
Operating expenses |
1,022,061 |
1,057,880 |
||||
Commission expenses |
169,104 |
171,303 |
||||
Cost of sales |
104,049 |
114,387 |
||||
Benefits and losses |
121,105 |
97,617 |
||||
Amortization of deferred policy acquisition costs |
7,569 |
12,394 |
||||
Lease expense |
156,951 |
152,424 |
||||
Depreciation, net of (gains) losses on disposals |
227,629 |
265,213 |
||||
Total costs and expenses |
1,808,468 |
1,871,218 |
||||
Earnings from operations |
193,537 |
121,048 |
||||
Interest expense |
(93,347) |
(98,470) |
||||
Pretax earnings |
100,190 |
22,578 |
||||
Income tax expense |
(34,567) |
(9,168) |
||||
Net earnings |
65,623 |
13,410 |
||||
Excess carrying amount of preferred stock over consideration paid |
388 |
- |
||||
Less: Preferred stock dividends |
(12,856) |
(12,963) |
||||
Earnings available to common shareholders |
$ |
53,155 |
$ |
447 |
||
Basic and diluted earnings per common share |
$ |
2.74 |
$ |
0.02 |
||
Weighted average common shares outstanding: |
||||||
Basic and diluted |
19,386,791 |
19,350,041 |
||||
SOURCE AMERCO
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