AMERCO Reports Fiscal 2010 Financial Results

Jun 09, 2010, 17:28 ET from AMERCO

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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