RENO, Nev., June 6, 2012 /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, 2012 were $196.5 million, or $10.09 per share, compared with $171 million, or $8.80 per share for the same period last year. Included in the results for March 31, 2012, was an after-tax charge of $1.61 per share associated with Repwest's third quarter excess workers' compensation reserve strengthening. Excluding this after-tax charge, adjusted earnings were $11.70 per share for the year ended March 31, 2012.
For the quarter ended March 31, 2012, the Company reported net earnings available to common shareholders of $25.4 million, or $1.29 per share, compared with net earnings of $10.2 million, or $0.52 per share for the same period last year.
"As expected, we finished the year on a strong note with continued growth in our core moving and storage business," stated Joe Shoen, chairman of AMERCO. "Our goal is to capitalize on this momentum amidst a challenging backdrop and continue to better serve customers."
Highlights of Full-Year and Fourth-Quarter 2012 Results
- Self-moving equipment rental revenue increased $26.9 million or 8% in the fourth quarter of fiscal 2012 compared with the fourth quarter of fiscal 2011, and finished the full year up $131.2 million or 9% compared with the full year of fiscal 2011. Transaction growth for both In-Town and one-way moves continued throughout the year across both our truck and trailer fleets resulting in our second consecutive year of record equipment rental revenues.
- Self-storage revenues for our Moving and Storage segment increased $3.5 million for the fourth quarter of fiscal 2012 compared with the fourth quarter of fiscal 2011 and for the full year increased $13.7 million compared with fiscal 2011. Our average amount of occupied square feet increased just over 10% compared with fiscal 2011 while our total available net rentable square feet increased by 1.4 million square feet over the last twelve months.
- Total costs and expenses increased $16.9 million for the fourth quarter of fiscal 2012 compared with the fourth quarter of fiscal 2011 and increased $223.1 million for all of fiscal 2012 compared with fiscal 2011. Our Life Insurance segment accounted for $75.3 million of the fiscal year increase due to costs associated with the increase in their new premiums. Our Property and Casualty segment was responsible for $46.0 million of the fiscal year increase due to their third quarter reserve strengthening charge. The remaining quarterly and fiscal year increases are primarily associated with costs at the Moving and Storage segment related to our growth in business.
- Gross truck and trailer capital expenditures for the fiscal 2012 were just under $505 million compared with $387 million in fiscal 2011. Proceeds from the sales of rental equipment were $166 million for fiscal 2012 compared with $178 million in fiscal 2011. Spending on real estate related acquisitions and projects increased approximately $38 million in fiscal 2012 compared with fiscal 2011.
- In April and May of 2012 the Company received $118 million from SAC Holdings as partial repayment of principal and interest on outstanding notes held by the Company.
- In the fourth quarter of fiscal 2012 the Company paid a special cash dividend of $1.00 per share on its Common Stock resulting in a $19.5 million cash outflow. During fiscal 2012 the Company also used $156 million to redeem all of its outstanding Preferred Stock. Cash and credit availability at the Moving and Storage segment was $628.2 million at March 31, 2012 compared with $596.7 million at March 31, 2011.
AMERCO will hold its investor call for fiscal year 2012 on Thursday, June 7, 2012, 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.
Use of Non-GAAP Financial Information
The Company reports its financial results in accordance with generally accepted accounting principles (GAAP). However, the Company uses certain non-GAAP performance measures, including adjusted earnings per share, to provide a better understanding of the Company's underlying operational results. The Company uses adjusted earnings per share to present the impact of certain transactions or events that management expects to occur only infrequently.
About AMERCO
AMERCO is the parent company of Oxford Life and Repwest insurance companies, Amerco Real Estate Company and 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.
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-K for the year ended March 31, 2012, 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 2012 and fiscal 2011.
| Quarter Ended Mar. 31, |
Twelve Months Ended Mar. 31, |
|||||
| 2012 |
2011 |
2012 |
2011 |
|||
| (In thousands) |
||||||
| Self-moving equipment rentals |
$344,338 |
$317,471 |
$1,678,256 |
$1,547,015 |
||
| Self-storage revenues |
34,694 |
31,186 |
$134,376 |
120,698 |
||
| Self-moving and self-storage products and service sales |
46,502 |
43,926 |
213,854 |
205,570 |
||
| Property management fees |
8,337 |
7,887 |
23,266 |
22,132 |
||
| Life insurance premiums |
47,723 |
54,861 |
277,562 |
206,992 |
||
| Property and casualty insurance premiums |
7,555 |
7,227 |
32,631 |
30,704 |
||
| Net investment and interest income |
15,802 |
13,219 |
64,200 |
52,661 |
||
| Other revenue |
18,489 |
12,593 |
78,530 |
55,503 |
||
| Consolidated revenue |
$523,440 |
$488,370 |
$2,502,675 |
$2,241,275 |
||
Listed below are revenues and earnings from operations at each of our operating segments for the fourth quarter and the full year of fiscal 2012 and fiscal 2011.
| Quarter Ended Mar. 31, |
Twelve Months Ended Mar. 31 |
||||||
| 2012 |
2011 |
2012 |
2011 |
||||
| Moving and storage |
(In thousands) |
||||||
| Revenues |
$459,240 |
$419,690 |
$2,156,923 |
$1,977,826 |
|||
| Earnings from operations before equity in earnings of subsidiaries |
49,694 |
34,115 |
432,766 |
355,173 |
|||
| Property and casualty insurance |
|||||||
| Revenues |
10,115 |
9,056 |
42,586 |
38,663 |
|||
| Earnings (loss) from operations |
2,922 |
358 |
(36,426) |
5,638 |
|||
| Life insurance |
|||||||
| Revenues |
55,088 |
60,812 |
307,922 |
229,911 |
|||
| Earnings from operations |
5,719 |
5,879 |
20,149 |
17,435 |
|||
| Eliminations |
|||||||
| Revenues |
(1,003) |
(1,188) |
(4,756) |
(5,125) |
|||
| Earnings from operations before equity in earnings of subsidiaries |
3 |
(164) |
(482) |
(551) |
|||
| Consolidated results |
|||||||
| Revenues |
523,440 |
488,370 |
2,502,675 |
2,241,275 |
|||
| Earnings from operations |
58,338 |
40,188 |
416,007 |
377,695 |
|||
| AMERCO AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED BALANCE SHEETS |
||||
| March 31, |
||||
| 2012 |
2011 |
|||
| ASSETS |
(In thousands) |
|||
| Cash and cash equivalents |
$350,100 |
$375,496 |
||
| Reinsurance recoverables and trade receivables, net |
297,974 |
220,650 |
||
| Inventories, net |
58,735 |
59,942 |
||
| Prepaid expenses |
41,858 |
57,624 |
||
| Investments, fixed maturities and marketable equities |
766,792 |
659,809 |
||
| Investments, other |
265,631 |
201,868 |
||
| Deferred policy acquisition costs, net |
63,914 |
52,870 |
||
| Other assets |
120,525 |
166,633 |
||
| Related party assets |
316,157 |
301,968 |
||
| 2,281,686 |
2,096,860 |
|||
| Property, plant and equipment, at cost: |
||||
| Land |
281,140 |
239,177 |
||
| Buildings and improvements |
1,087,119 |
1,024,669 |
||
| Furniture and equipment |
308,120 |
310,671 |
||
| Rental trailers and other rental equipment |
255,010 |
249,700 |
||
| Rental trucks |
1,856,433 |
1,611,763 |
||
| 3,787,822 |
3,435,980 |
|||
| Less: Accumulated depreciation |
(1,415,457) |
(1,341,407) |
||
| Total property, plant and equipment |
2,372,365 |
2,094,573 |
||
| Total assets |
$4,654,051 |
$4,191,433 |
||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
| Liabilities: |
||||
| Accounts payable and accrued expenses |
$335,326 |
$304,006 |
||
| Notes, loans and leases payable |
1,486,211 |
1,397,842 |
||
| Policy benefits and losses, claims and loss expenses payable |
1,145,943 |
934,234 |
||
| Liabilities from investment contracts |
240,961 |
255,134 |
||
| Other policyholders' funds and liabilities |
7,273 |
8,731 |
||
| Deferred income |
31,525 |
27,209 |
||
| Deferred income taxes |
370,992 |
271,257 |
||
| Total liabilities |
3,618,231 |
3,198,413 |
||
| Stockholders' equity: |
||||
| Common stock |
10,497 |
10,497 |
||
| Additional paid-in capital |
433,743 |
425,212 |
||
| Accumulated other comprehensive loss |
(45,436) |
(46,467) |
||
| Retained earnings |
1,317,064 |
1,140,002 |
||
| Cost of common shares in treasury, net |
(525,653) |
(525,653) |
||
| Cost of preferred shares in treasury, net |
(151,997) |
(7,189) |
||
| Unearned employee stock ownership plan shares |
(2,398) |
(3,382) |
||
| Total stockholders' equity |
1,035,820 |
993,020 |
||
| Total liabilities and stockholders' equity |
$4,654,051 |
$4,191,433 |
||
| AMERCO AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||
| Quarter Ended March 31, |
||||
| 2012 |
2011 |
|||
| (In thousands, except share and per share amounts) |
||||
| Revenues: |
||||
| Self-moving equipment rentals |
$344,338 |
$317,471 |
||
| Self-storage revenues |
34,694 |
31,186 |
||
| Self-moving and self-storage products and service sales |
46,502 |
43,926 |
||
| Property management fees |
8,337 |
7,887 |
||
| Life insurance premiums |
47,723 |
54,861 |
||
| Property and casualty insurance premiums |
7,555 |
7,227 |
||
| Net investment and interest income |
15,802 |
13,219 |
||
| Other revenue |
18,489 |
12,593 |
||
| Total revenues |
523,440 |
488,370 |
||
| Costs and expenses: |
||||
| Operating expenses |
257,041 |
250,198 |
||
| Commission expenses |
43,325 |
38,832 |
||
| Cost of sales |
26,813 |
22,170 |
||
| Benefits and losses |
42,699 |
47,312 |
||
| Amortization of deferred policy acquisition costs |
3,075 |
2,945 |
||
| Lease expense |
31,944 |
37,020 |
||
| Depreciation, net of (gains) losses on disposals |
60,205 |
49,705 |
||
| Total costs and expenses |
465,102 |
448,182 |
||
| Earnings from operations |
58,338 |
40,188 |
||
| Interest expense |
(22,031) |
(22,893) |
||
| Pretax earnings |
36,307 |
17,295 |
||
| Income tax expense |
(10,902) |
(4,049) |
||
| Net earnings |
25,405 |
13,246 |
||
| Less: Excess of redemption value over carrying value of preferred shares redeemed |
- |
(7) |
||
| Less: Preferred stock dividends |
- |
(3,076) |
||
| Earnings available to common shareholders |
$25,405 |
$10,163 |
||
| Basic and diluted earnings per common share |
$1.29 |
$0.52 |
||
| Weighted average common shares outstanding: |
||||
| Basic and diluted |
19,492,159 |
19,449,243 |
||
| AMERCO AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS |
||||
| Twelve Months Ended March 31, |
||||
| 2012 |
2011 |
|||
| (In thousands, except share and per share amounts) |
||||
| Revenues: |
||||
| Self-moving equipment rentals |
$1,678,256 |
$1,547,015 |
||
| Self-storage revenues |
134,376 |
120,698 |
||
| Self-moving and self-storage products and service sales |
213,854 |
205,570 |
||
| Property management fees |
23,266 |
22,132 |
||
| Life insurance premiums |
277,562 |
206,992 |
||
| Property and casualty insurance premiums |
32,631 |
30,704 |
||
| Net investment and interest income |
64,200 |
52,661 |
||
| Other revenue |
78,530 |
55,503 |
||
| Total revenues |
2,502,675 |
2,241,275 |
||
| Costs and expenses: |
||||
| Operating expenses |
1,093,190 |
1,026,577 |
||
| Commission expenses |
212,190 |
190,981 |
||
| Cost of sales |
116,542 |
106,024 |
||
| Benefits and losses |
310,839 |
190,429 |
||
| Amortization of deferred policy acquisition costs |
13,791 |
9,494 |
||
| Lease expense |
131,215 |
150,809 |
||
| Depreciation, net of (gains) losses on disposals |
208,901 |
189,266 |
||
| Total costs and expenses |
2,086,668 |
1,863,580 |
||
| Earnings from operations |
416,007 |
377,695 |
||
| Interest expense |
(90,371) |
(88,381) |
||
| Pretax earnings |
325,636 |
289,314 |
||
| Income tax expense |
(120,269) |
(105,739) |
||
| Net earnings |
205,367 |
183,575 |
||
| Less: Excess of redemption value over carrying value of preferred shares redeemed |
(5,908) |
(178) |
||
| Less: Preferred stock dividends |
(2,913) |
(12,412) |
||
| Earnings available to common shareholders |
$196,546 |
$170,985 |
||
| Basic and diluted earnings per common share |
$10.09 |
$8.80 |
||
| Weighted average common shares outstanding: |
||||
| Basic and diluted |
19,476,187 |
19,432,781 |
||
| NON-GAAP FINANCIAL RECONCILIATION SCHEDULE |
||
| Year Ended |
||
| March 31, 2012 |
||
| (In thousands, except share and per share amounts) |
||
| AMERCO and Consolidated Entities |
||
| Earnings per common share basic and diluted |
$ |
10.09 |
| Charge for strengthening reserves |
1.61 |
|
| Earnings per common share basic and diluted before charge for strengthening reserves |
$ |
11.70 |
| Charge for strengthening reserves |
$ |
(48,250) |
| Income tax benefit |
16,888 |
|
| Charge for strengthening reserves, net of taxes |
$ |
(31,362) |
| Charge for strengthening reserves, net of taxes, per common share basic and diluted |
$ |
(1.61) |
| Weighted average shares outstanding: basic and diluted |
19,476,187 |
SOURCE AMERCO
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