AMERCO Reports Fiscal 2011 Financial Results

News provided by

AMERCO

Jun 08, 2011, 05:52 ET

RENO, Nev., June 8, 2011 /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 the year ended March 31, 2011 were $171 million, or $8.80 per share, compared with $53.2 million, or $2.74 per share for the same period last year.

For the quarter ended March 31, 2011, the Company reported net earnings available to common shareholders of $10.2 million, or $0.52 per share, compared with a net loss of $8.2 million, or $0.43 per share for the same period last year.  

"We are pleased with our operating results for fiscal 2011," according to Joe Shoen, chairman of AMERCO.  "Throughout the year we made significant progress towards our goals of improving customer service and have continued to make the delivery of our products and services more efficient."

Highlights of Full-Year and Fourth-Quarter 2011 Results

  • Self-moving equipment rental revenue increased $19.2 million in the fourth quarter of fiscal 2011 compared with the fourth quarter of fiscal 2010, and finished the full year up $127.3 million compared with the full year of fiscal 2010.  We experienced strong growth in transactions during the year and achieved record equipment rental revenues.  
  • Self-storage revenues for Moving and Storage segment increased $3.2 million for the fourth quarter of fiscal 2011 compared with the fourth quarter of fiscal 2010 and finished the full year up $10.3 million compared with fiscal 2010.  Our average occupancy during the fourth quarter of fiscal 2011 increased just over 665,000 square feet compared with the fourth quarter of fiscal 2010.  During fiscal 2011 we added over 820,000 of net rentable square feet to the storage portfolio.
  • For the fourth quarter of fiscal 2011 net gains on the disposal of property, plant and equipment were $4.1 million compared with $0.5 million in fiscal 2010. For the full year in fiscal 2011 these gains were $23.1 million compared with $2.0 million in fiscal 2010.  Excluding these disposal gains and losses, total depreciation decreased $1.3 million for the fourth quarter of 2011 and $17.3 million for the full year.
  • Gross truck and trailer capital expenditures for the fiscal 2011 were approximately $387 million compared with $218 million in fiscal 2010.  Proceeds from the sales of rental equipment increased $37 million to $177.5 million for fiscal 2011 compared with fiscal 2010.

AMERCO will hold its investor call for the fiscal year 2011 on Thursday, June 9, 2011, 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. 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.

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 101,000 trucks, 82,000 trailers and 33,000 towing devices. U-Haul offers nearly 411,000 rooms and approximately 36.3 million square feet of storage space at nearly 1,115 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, 2011, 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 2011 and fiscal 2010.


Quarter Ended Mar. 31,

Twelve Months Ended Mar. 31,


2011

2010

2011

2010


(In thousands)

Self-moving equipment rentals

$317,471

$298,307

$1,547,015

$1,419,726

Self-storage revenues

31,186

28,022

120,698

110,369

Self-moving and self-storage





  products and service sales

43,926

44,364

205,570

198,785

Property management fees

7,887

7,200

22,132

21,632

Life insurance premiums

54,861

38,992

206,992

134,345

Property and casualty







  insurance premiums

7,227

6,554

30,704

27,625

Net investment and interest income

13,219

11,081

52,661

49,989

Other revenue

12,593

9,274

55,503

39,534

 Consolidated revenue

$488,370

$443,794

$2,241,275

$2,002,005

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


Quarter Ended Mar. 31,

Twelve Months Ended Mar. 31


2011

2010

2011

2010

Moving and storage

(In thousands)

 Revenues

$419,690

$393,268

$1,977,826

$1,816,322

 Earnings from operations

38,066

7,537

370,100

185,329

Property and casualty insurance





 Revenues

9,056

7,838

38,663

34,390

 Earnings from operations

358

1,593

5,638

6,279

Life insurance





 Revenues

60,812

43,729

229,911

155,725

 Earnings from operations

5,879

4,807

17,435

16,858

Eliminations





 Revenues

(1,188)

(1,041)

(5,125)

(4,432)

 Earnings from operations

(4,115)

(3,972)

(15,478)

(14,929)

Consolidated results





 Revenues

488,370

443,794

2,241,275

2,002,005

 Earnings from operations

40,188

9,965

377,695

193,537

AMERCO AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


March 31,


2011

2010

ASSETS

(In thousands)

 Cash and cash equivalents

$375,496

$244,118

 Reinsurance recoverables and trade receivables, net

205,371

198,283

 Inventories, net

59,942

52,837

 Prepaid expenses

57,624

53,379

 Investments, fixed maturities and

     marketable equities

659,809

549,318

 Investments, other

201,868

227,486

 Deferred policy acquisition costs, net

52,870

39,194

 Other assets

166,633

147,325

 Related party assets

301,968

302,126


2,081,581

1,814,066

 Property, plant and equipment, at cost:



   Land

239,177

224,904

   Buildings and improvements

1,024,669

970,937

   Furniture and equipment

310,671

323,334

   Rental trailers and other rental equipment

249,700

244,131

   Rental trucks

1,611,763

1,529,817


3,435,980

3,293,123

 Less: Accumulated depreciation

(1,341,407)

(1,344,735)

   Total property, plant and equipment

2,094,573

1,948,388

 Total assets

$4,176,154

$3,762,454

LIABILITIES AND STOCKHOLDERS' EQUITY



Liabilities:



 Accounts payable and accrued expenses

$304,006

$296,057

 Notes, loans and leases payable

1,397,842

1,347,635

 Policy benefits and losses, claims and loss expenses payable

927,376

816,909

 Liabilities from investment contracts

246,717

268,810

 Other policyholders' funds and liabilities

8,727

8,155

 Deferred income

27,209

25,207

 Deferred income taxes

271,257

186,770

Total liabilities

3,183,134

2,949,543





Stockholders' equity:



 Common stock


10,497

10,497

 Additional paid-in capital

418,023

419,811

 Accumulated other comprehensive loss

(46,467)

(56,207)

 Retained earnings

1,140,002

969,017

 Cost of common shares in treasury, net

(525,653)

(525,653)

 Unearned employee stock ownership plan shares

(3,382)

(4,554)

Total stockholders' equity

993,020

812,911

Total liabilities and stockholders' equity

$4,176,154

$3,762,454

AMERCO AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


Quarter Ended March 31,


2011

2010


(In thousands, except share and per share amounts)

Revenues:



 Self-moving equipment rentals

$317,471

$298,307

 Self-storage revenues

31,186

28,022

 Self-moving and self-storage products and service sales

43,926

44,364

 Property management fees

7,887

7,200

 Life insurance premiums

54,861

38,992

 Property and casualty insurance premiums

7,227

6,554

 Net investment and interest income

13,219

11,081

 Other revenue

12,593

9,274

   Total revenues

488,370

443,794





Costs and expenses:



 Operating expenses

250,198

245,117

 Commission expenses

38,832

35,621

 Cost of sales

22,170

24,443

 Benefits and losses

47,312

33,645

 Amortization of deferred policy acquisition costs

2,945

1,202

 Lease expense

37,020

39,205

 Depreciation, net of (gains) losses on disposals

49,705

54,596

   Total costs and expenses

448,182

433,829





Earnings from operations

40,188

9,965

 Interest expense

(22,893)

(22,671)

Pretax earnings (loss)

17,295

(12,706)

 Income tax benefit (expense)

(4,049)

7,686

Net earnings (loss)

13,246

(5,020)

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

(7)

7

 Less: Preferred stock dividends

(3,076)

(3,198)

Earnings (loss) available to common shareholders

$10,163

$(8,211)

Basic and diluted earnings (loss) per common share

$0.52

$(0.43)

Weighted average common shares outstanding: Basic and diluted

19,449,243

19,402,035






AMERCO AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

Twelve Months Ended March 31,


2011

2010

(In thousands, except share and per share amounts)

Revenues:



 Self-moving equipment rentals

$1,547,015

$1,419,726

 Self-storage revenues

120,698

110,369

 Self-moving and self-storage products and service sales

205,570

198,785

 Property management fees

22,132

21,632

 Life insurance premiums

206,992

134,345

 Property and casualty insurance premiums

30,704

27,625

 Net investment and interest income

52,661

49,989

 Other revenue

55,503

39,534

   Total revenues

2,241,275

2,002,005





Costs and expenses:



 Operating expenses

1,026,577

1,022,061

 Commission expenses

190,981

169,104

 Cost of sales

106,024

104,049

 Benefits and losses

190,429

121,105

 Amortization of deferred policy acquisition costs

9,494

7,569

 Lease expense

150,809

156,951

 Depreciation, net of (gains) losses on disposals

189,266

227,629

   Total costs and expenses

1,863,580

1,808,468





Earnings from operations

377,695

193,537

 Interest expense

(88,381)

(93,347)

Pretax earnings

289,314

100,190

 Income tax expense

(105,739)

(34,567)

Net earnings

183,575

65,623

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

(178)

388

 Less: Preferred stock dividends

(12,412)

(12,856)

Earnings available to common shareholders

$170,985

$53,155

Basic and diluted earnings per common share

$8.80

$2.74

Weighted average common shares outstanding: Basic and diluted

19,432,781

19,386,791






SOURCE AMERCO

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