AMERCO Reports Fiscal 2015 Financial Results

May 27, 2015, 16:20 ET from AMERCO

RENO, Nev., May 27, 2015 /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 shareholders for the year ended March 31, 2015, were $356.7 million, or $18.21 per share, compared with $342.4 million, or $17.51 per share for the same period last year. Included in the results for the year ended March 31, 2015, was an after-tax expense of $1.96 per share associated with our fourth quarter accrual of $60.7 million for the PEI litigation. Excluding this after-tax expense, adjusted earnings were $20.17 per share for the year ended March 31, 2015.

For the quarter ended March 31, 2015, the Company reported net earnings available to shareholders of $9.5 million, or $0.47 per share compared with net earnings of $39.2 million, or $2.00 per share for the same period last year. Included in the results for the fourth quarter ended March 31, 2015, was an after-tax expense of $1.96 per share associated with our fourth quarter accrual of $60.7 million for the PEI litigation. Excluding this after-tax expense, adjusted earnings were $2.43 per share for the quarter ended March 31, 2015.

"U-Haul Team members and Dealers have continued to step up and provide increased service to our customers," stated Joe Shoen, chairman of AMERCO.  "Our fleet of U-Haul trucks and trailers is in the most rentable condition I have ever experienced. The combination of the two gave us a year over year increase despite the PEI jury verdict.  We continue to benefit from favorable interest rates, fleet increases, storage occupancy increases and a robust truck resale market."

Highlights of Fiscal Year and Fourth Quarter 2015 Results

  • Self-moving equipment rental revenues increased $31.3 million or 7.9% in the fourth quarter of fiscal 2015 compared with the fourth quarter of fiscal 2014, and finished the full year up $191.0 million or 9.8% compared with fiscal 2014. During fiscal 2015 we continued to broaden our retail distribution network through the expansion of our independent dealer network combined with the acquisition and development of new Company owned and operated locations. Our rental equipment fleet expanded as we increased the number of trucks, trailer and towing devices available for customer use.
  • Self-storage revenues increased $7.5 million or 15.6% in the fourth quarter of fiscal 2015 compared with the fourth quarter of fiscal 2014 and for the full year increased $29.3 million or 16.1% compared with fiscal 2014. Recent acquisitions, new development, occupancy improvements at existing locations and improvement in overall rates across our portfolio contributed to the increase in storage revenue. During both fiscal 2015 and fiscal 2014 we added approximately 2.1 million square feet of owned net rentable storage for each year.
  • During the fourth quarter of fiscal 2015 the Company recorded an accrual related to the PEI litigation resulting in an increase in operating expenses of $60.7 million. The accrual represents the Judgment as entered by the Court in favor of PEI. Post judgment motions have been filed by both parties. 
  • Operating earnings at our Moving and Storage operating segment, excluding the PEI litigation accrual increased $9.6 million in the fourth quarter of fiscal 2015 compared with the same period last year and for the full year increased $86.4 million.
  • Operating earnings at our Life Insurance segment increased $3.1 million for fiscal year 2015 compared with fiscal 2014 while operating earnings at our Property and Casualty Insurance segment increased $4.1 million for the same time periods.
  • Gross truck and trailer capital expenditures for fiscal 2015 were approximately $959 million compared with approximately $776 million for fiscal 2014. Proceeds from the sales of rental equipment were $407 million for fiscal 2015 compared with $258 million in fiscal 2014. Spending on real estate related acquisitions and projects increased approximately $54 million to $375 million in fiscal 2015 compared with fiscal 2014.

AMERCO will hold its investor call for fiscal 2015 on Thursday, May 28, 2015, 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-K for the quarter ended March 31, 2015, 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 fourth quarter and the full year of fiscal 2015 and 2014.

Quarter Ended Mar. 31,

Twelve Months Ended Mar. 31,

2015

2014

2015

2014

(In thousands)

Revenues:

Self-moving equipment rentals

$429,967

$398,636

$2,146,391

$1,955,423

Self-storage revenues

55,513

48,003

211,136

181,794

Self-moving & self-storage products & service sales

52,574

51,072

244,177

234,187

Property management fees

6,371

6,907

25,341

24,493

Life insurance premiums

40,106

38,211

156,103

157,919

Property and casualty insurance premiums

10,791

10,000

46,456

41,052

Net investment and interest income

21,074

19,755

84,728

79,591

Other revenue

26,334

29,157

160,199

160,793

Total revenues

$642,730

$601,741

$3,074,531

$2,835,252

Listed below are revenues and earnings from operations at each of our operating segments for the fourth quarter and the full year of fiscal 2015 and 2014.

Quarter Ended Mar. 31,

Twelve Months Ended Mar. 31,

2015

2014

2015

2014

Moving and storage

(In thousands)

   Revenues

$573,539

$537,186

$2,800,438

$2,571,950

   Earnings from operations before equity     

      earnings of subsidiaries

21,286

72,391

610,430

584,681

Property and casualty insurance

   Revenues

13,787

12,643

59,275

51,644

   Earnings from operations

5,542

2,815

23,477

19,332

Life insurance

   Revenues

56,536

52,924

219,656

215,528

   Earnings from operations

8,173

6,840

29,755

26,671

Eliminations

  Revenues

(1,132)

(1,012)

(4,838)

(3,870)

  Earnings from operations before equity in

     earnings of subsidiaries

(164)

(147)

(638)

(470)

Consolidated results

  Revenues

642,730

601,741

3,074,531

2,835,252

  Earnings from operations

34,837

81,899

663,024

630,214

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 storage locations follows:

Quarter Ended March 31,

2015

2014

(In thousands, except occupancy rate)

Room count as of March 31

232

207

Square footage as of March 31

20,318

18,164

Average monthly number of rooms occupied

183

163

Average monthly occupancy rate based on room count

79.5%

79.3%

Average monthly square footage occupied

16,347

14,543

 

Twelve Months Ended March 31,

2015

2014

(In thousands, except occupancy rate)

Room count as of March 31

232

207

Square footage as of March 31

20,318

18,164

Average monthly number of rooms occupied

180

160

Average monthly occupancy rate based on room count

81.7%

80.5%

Average monthly square footage occupied

16,021

14,148

 

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED BALANCE SHEETS

March 31,

2015

2014

(In thousands)

ASSETS

Cash and cash equivalents

$

441,850

$

495,112

Reinsurance recoverables and trade receivables, net

189,869

199,322

Inventories, net

69,472

67,020

Prepaid expenses

126,296

55,269

Investments, fixed maturities and marketable equities

1,304,962

1,138,275

Investments, other

268,720

248,850

Deferred policy acquisition costs, net

115,422

118,707

Other assets

106,157

97,588

Related party assets

141,790

169,624

2,764,538

2,589,767

Property, plant and equipment, at cost:

Land

467,482

405,177

Buildings and improvements

1,728,033

1,430,272

Furniture and equipment

355,349

322,146

Rental trailers and other rental equipment

436,642

373,325

Rental trucks

3,059,987

2,610,797

6,047,493

5,141,717

Less: Accumulated depreciation

(1,939,856)

(1,732,506)

Total property, plant and equipment

4,107,637

3,409,211

Total assets

$

6,872,175

$

5,998,978

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Accounts payable and accrued expenses

$

495,135

$

357,954

Notes, loans and leases payable

2,190,869

1,942,359

Policy benefits and losses, claims and loss expenses payable

1,062,188

1,082,598

Liabilities from investment contracts

685,745

616,725

Other policyholders' funds and liabilities

8,999

7,988

Deferred income

18,081

31,390

Deferred income taxes

526,799

432,596

Total liabilities

4,987,816

4,471,610

Common stock

10,497

10,497

Additional paid-in capital

449,668

444,210

Accumulated other comprehensive loss

(34,365)

(53,923)

Retained earnings

2,142,600

1,805,453

Cost of common shares in treasury, net

(525,653)

(525,653)

Cost of preferred shares in treasury, net

(151,997)

(151,997)

Unearned employee stock ownership plan shares

(6,391)

(1,219)

Total stockholders' equity

1,884,359

1,527,368

Total liabilities and stockholders' equity

$

6,872,175

$

5,998,978

 

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Quarter Ended March 31,

2015

2014

(In thousands, except share and per share data)

Revenues:

  Self-moving equipment rentals

$

429,967

$

398,636

  Self-storage revenues

55,513

48,003

  Self-moving and self-storage products and service sales

52,574

51,072

  Property management fees

6,371

6,907

  Life insurance premiums

40,106

38,211

  Property and casualty insurance premiums

10,791

10,000

  Net investment and interest income

21,074

19,755

  Other revenue

26,334

29,157

    Total revenues

642,730

601,741

Costs and expenses:

  Operating expenses

393,448

311,053

  Commission expenses

48,703

45,264

  Cost of sales

33,857

28,939

  Benefits and losses

38,334

37,447

  Amortization of deferred policy acquisition costs

6,465

5,785

  Lease expense

18,848

23,173

  Depreciation, net of (gains) losses on disposals

68,238

68,181

    Total costs and expenses

607,893

519,842

Earnings from operations

34,837

81,899

  Interest expense

(22,781)

(22,639)

Pretax earnings

12,056

59,260

  Income tax expense

(2,576)

(20,049)

Earnings available to common shareholders

$

9,480

$

39,211

Basic and diluted earnings per common share

$

0.47

$

2.00

Weighted average common shares outstanding: Basic and diluted

19,594,530

19,571,417

 

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Twelve Months Ended March 31,

2015

2014

(In thousands, except share and per share data)

Revenues:

  Self-moving equipment rentals

$

2,146,391

$

1,955,423

  Self-storage revenues

211,136

181,794

  Self-moving and self-storage products and service sales

244,177

234,187

  Property management fees

25,341

24,493

  Life insurance premiums

156,103

157,919

  Property and casualty insurance premiums

46,456

41,052

  Net investment and interest income

84,728

79,591

  Other revenue

160,199

160,793

    Total revenues

3,074,531

2,835,252

Costs and expenses:

  Operating expenses

1,479,409

1,313,674

  Commission expenses

249,642

227,332

  Cost of sales

146,072

127,270

  Benefits and losses

158,760

156,702

  Amortization of deferred policy acquisition costs

19,661

19,982

  Lease expense

79,798

100,466

  Depreciation, net of (gains) losses on disposals

278,165

259,612

    Total costs and expenses

2,411,507

2,205,038

Earnings from operations

663,024

630,214

  Interest expense

(97,525)

(92,692)

  Fees and amortization on early extinguishment of debt

(4,081)

-

Pretax earning

561,418

537,522

  Income tax expense

(204,677)

(195,131)

Earnings available to common shareholders

$

356,741

$

342,391

Basic and diluted earnings per common share

$

18.21

$

17.51

Weighted average common shares outstanding: Basic and diluted

19,586,633

19,558,758

 

NON-GAAP FINANCIAL RECONCILIATION SCHEDULE

Year Ended

March 31, 2015

(In thousands, except share and per share amounts)

AMERCO and Consolidated Subsidiaries

Earnings per common share: basic and diluted

$

18.21

PEI litigation accrual, net of taxes, per common share basic and diluted

1.96

Earnings per common share: basic and diluted before PEI litigation accrual

$

20.17

PEI litigation accrual

$

(60,700)

Income tax benefit

22,301

PEI litigation accrual, net of taxes

$

(38,399)

PEI litigation accrual, net of taxes, per common share basic and diluted

$

(1.96)

Weighted average shares outstanding: basic and diluted

19,586,633

Quarter Ended

March 31, 2015

(In thousands, except share and per share amounts)

AMERCO and Consolidated Subsidiaries

Earnings per common share: basic and diluted

$

0.47

PEI litigation accrual, net of taxes, per common share basic and diluted

1.96

Earnings per common share: basic and diluted before PEI litigation accrual

$

2.43

PEI litigation accrual

$

(60,700)

Income tax benefit

22,301

PEI litigation accrual, net of taxes

$

(38,399)

PEI litigation accrual, net of taxes, per common share basic and diluted

$

(1.96)

Weighted average shares outstanding: basic and diluted

19,594,530

 

SOURCE AMERCO



RELATED LINKS

http://www.amerco.com