RENO, Nev., May 25, 2016 /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, 2016, were $489.0 million, or $24.95 per share, compared with $356.7 million, or $18.21 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, 2016, the Company reported net earnings available to shareholders of $52.6 million, or $2.68 per share compared with net earnings of $9.5 million, or $0.47 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.
"Our team made significant progress over the last year," stated Joe Shoen, chairman of AMERCO. "The self-moving and storage marketplaces remain very competitive. We continue to invest time and resources today on initiatives that should benefit us in years to come."
Highlights of Fiscal Year and Fourth Quarter 2016 Results
- Self-moving equipment rental revenues increased $23.1 million or 5.4% in the fourth quarter of fiscal 2016 compared with the fourth quarter of fiscal 2015, and finished the full year up $151.6 million or 7.1% compared with fiscal 2015. During fiscal 2016, we added both independent dealers and Company-owned locations further extending our network reach. Our truck, trailer and towing device fleets experienced net additions during fiscal 2016. These activities, combined with operational improvements resulted in increased transactions compared with last year. Revenue increased primarily from these gains in transactions.
- Self-storage revenues increased $10.0 million or 18.0% in the fourth quarter of fiscal 2016 compared with the fourth quarter of fiscal 2015 and for the full year increased $36.8 million or 17.4% compared with fiscal 2015. Acquisitions, new development, occupancy gains at existing locations and improvement in overall rates across our portfolio contributed to the increase in storage revenue. During fiscal 2016 we added approximately 3.6 million square feet of owned net rentable storage.
- Operating earnings at our Moving and Storage operating segment, excluding the PEI litigation accruals of $5.0 million and $60.7 million from fiscal 2016 and 2015, respectively, increased $14.4 million in the fourth quarter of fiscal 2016 compared with the same period last year and for the full year increased $147.0 million.
- Combined operating earnings at our Life Insurance segment and our Property and Casualty Insurance segment were steady at over $54 million.
- Gross truck and trailer capital expenditures for fiscal 2016 were approximately $881 million compared with approximately $898 million for fiscal 2015. Proceeds from the sales of rental equipment were approximately $517 million for fiscal 2016 compared with $407 million in fiscal 2015. Spending on real estate related acquisitions and projects increased approximately $224 million to $592 million in fiscal 2016 compared with fiscal 2015.
AMERCO will hold its investor call for fiscal 2016 on Thursday, May 26, 2016, 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 year ended March 31, 2016, 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 2016 and 2015.
| Quarter Ended Mar. 31, |
Twelve Months Ended Mar. 31, |
||||
| 2016 |
2015 |
2016 |
2015 |
||
| (In thousands) |
|||||
| Revenues: |
|||||
| Self-moving equipment rentals |
$453,072 |
$429,967 |
$2,297,980 |
$2,146,391 |
|
| Self-storage revenues |
65,529 |
55,513 |
247,944 |
211,136 |
|
| Self-moving & self-storage products & |
53,542 |
52,574 |
251,541 |
244,177 |
|
| Property management fees |
5,932 |
6,371 |
26,533 |
25,341 |
|
| Life insurance premiums |
41,224 |
40,106 |
162,662 |
156,103 |
|
| Property and casualty insurance premiums |
11,987 |
10,791 |
50,020 |
46,456 |
|
| Net investment and interest income |
23,656 |
21,074 |
86,805 |
84,728 |
|
| Other revenue |
28,255 |
26,334 |
152,171 |
160,199 |
|
| Total revenues |
$683,197 |
$642,730 |
$3,275,656 |
$3,074,531 |
|
Listed below are revenues and earnings from operations at each of our operating segments for the fourth quarter and the full year of fiscal 2016 and 2015.
| Quarter Ended Mar. 31, |
Twelve Months Ended Mar. 31, |
||||
| 2016 |
2015 |
2016 |
2015 |
||
| Moving and storage |
(In thousands) |
||||
| Revenues |
$608,618 |
$573,539 |
$2,984,504 |
$2,800,438 |
|
| Earnings from operations before equity |
|||||
| earnings of subsidiaries |
91,369 |
21,286 |
813,124 |
610,430 |
|
| Property and casualty insurance |
|||||
| Revenues |
15,931 |
13,787 |
64,803 |
59,275 |
|
| Earnings from operations |
5,733 |
5,542 |
24,547 |
23,477 |
|
| Life insurance |
|||||
| Revenues |
59,816 |
56,536 |
231,220 |
219,656 |
|
| Earnings from operations |
9,787 |
8,173 |
29,773 |
29,755 |
|
| Eliminations |
|||||
| Revenues |
(1,168) |
(1,132) |
(4,871) |
(4,838) |
|
| Earnings from operations before equity in |
|||||
| earnings of subsidiaries |
(153) |
(164) |
(630) |
(638) |
|
| Consolidated results |
|||||
| Revenues |
683,197 |
642,730 |
3,275,656 |
3,074,531 |
|
| Earnings from operations |
106,736 |
34,837 |
866,814 |
663,024 |
|
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, |
|||
| 2016 |
2015 |
||
| (In thousands, except occupancy rate) |
|||
| Room count as of March 31 |
275 |
232 |
|
| Square footage as of March 31 |
23,951 |
20,318 |
|
| Average monthly number of rooms occupied |
207 |
183 |
|
| Average monthly occupancy rate based on room count |
76.1% |
79.5% |
|
| Average monthly square footage occupied |
18,732 |
16,347 |
|
| Twelve Months Ended March 31, |
|||
| 2016 |
2015 |
||
| (In thousands, except occupancy rate) |
|||
| Room count as of March 31 |
275 |
232 |
|
| Square footage as of March 31 |
23,951 |
20,318 |
|
| Average monthly number of rooms occupied |
203 |
180 |
|
| Average monthly occupancy rate based on room count |
80.1% |
81.7% |
|
| Average monthly square footage occupied |
18,231 |
16,021 |
|
| AMERCO AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
| March 31, |
||||
| 2016 |
2015 |
|||
| (In thousands) |
||||
| ASSETS |
||||
| Cash and cash equivalents |
$ |
600,646 |
$ |
441,850 |
| Reinsurance recoverables and trade receivables, net |
175,210 |
189,869 |
||
| Inventories, net |
79,756 |
69,472 |
||
| Prepaid expenses |
134,300 |
126,296 |
||
| Investments, fixed maturities and marketable equities |
1,510,538 |
1,304,962 |
||
| Investments, other |
310,072 |
268,720 |
||
| Deferred policy acquisition costs, net |
136,386 |
115,422 |
||
| Other assets |
100,572 |
106,157 |
||
| Related party assets |
85,734 |
141,790 |
||
| 3,133,214 |
2,764,538 |
|||
| Property, plant and equipment, at cost: |
||||
| Land |
587,347 |
467,482 |
||
| Buildings and improvements |
2,187,400 |
1,728,033 |
||
| Furniture and equipment |
399,943 |
355,349 |
||
| Rental trailers and other rental equipment |
462,379 |
436,642 |
||
| Rental trucks |
3,514,175 |
3,059,987 |
||
| 7,151,244 |
6,047,493 |
|||
| Less: Accumulated depreciation |
(2,133,733) |
(1,939,856) |
||
| Total property, plant and equipment |
5,017,511 |
4,107,637 |
||
| Total assets |
$ |
8,150,725 |
$ |
6,872,175 |
| LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
| Liabilities: |
||||
| Accounts payable and accrued expenses |
$ |
502,613 |
$ |
496,370 |
| Notes, loans and leases payable |
2,688,758 |
2,190,869 |
||
| Policy benefits and losses, claims and loss expenses payable |
1,071,412 |
1,062,188 |
||
| Liabilities from investment contracts |
951,490 |
685,745 |
||
| Other policyholders' funds and liabilities |
8,650 |
7,764 |
||
| Deferred income |
22,784 |
18,081 |
||
| Deferred income taxes |
653,612 |
526,799 |
||
| Total liabilities |
5,899,319 |
4,987,816 |
||
| Common stock |
10,497 |
10,497 |
||
| Additional paid-in capital |
451,629 |
449,668 |
||
| Accumulated other comprehensive loss |
(60,525) |
(34,365) |
||
| Retained earnings |
2,533,641 |
2,142,600 |
||
| 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 |
(6,186) |
(6,391) |
||
| Total stockholders' equity |
2,251,406 |
1,884,359 |
||
| Total liabilities and stockholders' equity |
$ |
8,150,725 |
$ |
6,872,175 |
| AMERCO AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||
| Quarter Ended March 31, |
|||||
| 2016 |
2015 |
||||
| (In thousands, except share and per share data) |
|||||
| Revenues: |
|||||
| Self-moving equipment rentals |
$ |
453,072 |
$ |
429,967 |
|
| Self-storage revenues |
65,529 |
55,513 |
|||
| Self-moving and self-storage products and service sales |
53,542 |
52,574 |
|||
| Property management fees |
5,932 |
6,371 |
|||
| Life insurance premiums |
41,224 |
40,106 |
|||
| Property and casualty insurance premiums |
11,987 |
10,791 |
|||
| Net investment and interest income |
23,656 |
21,074 |
|||
| Other revenue |
28,255 |
26,334 |
|||
| Total revenues |
683,197 |
642,730 |
|||
| Costs and expenses: |
|||||
| Operating expenses |
344,440 |
393,448 |
|||
| Commission expenses |
50,423 |
48,703 |
|||
| Cost of sales |
34,394 |
33,857 |
|||
| Benefits and losses |
39,043 |
38,334 |
|||
| Amortization of deferred policy acquisition costs |
7,713 |
6,465 |
|||
| Lease expense |
9,531 |
18,848 |
|||
| Depreciation, net of (gains) losses on disposals |
90,917 |
68,238 |
|||
| Total costs and expenses |
576,461 |
607,893 |
|||
| Earnings from operations |
106,736 |
34,837 |
|||
| Interest expense |
(26,423) |
(22,781) |
|||
| Pretax earnings |
80,313 |
12,056 |
|||
| Income tax expense |
(27,745) |
(2,576) |
|||
| Earnings available to common shareholders |
$ |
52,568 |
$ |
9,480 |
|
| Basic and diluted earnings per common share |
$ |
2.68 |
$ |
0.47 |
|
| Weighted average common shares outstanding: Basic and diluted |
19,593,071 |
19,594,530 |
|||
| AMERCO AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||
| Twelve Months Ended March 31, |
|||||
| 2016 |
2015 |
||||
| (In thousands, except share and per share data) |
|||||
| Revenues: |
|||||
| Self-moving equipment rentals |
$ |
2,297,980 |
$ |
2,146,391 |
|
| Self-storage revenues |
247,944 |
211,136 |
|||
| Self-moving and self-storage products and service sales |
251,541 |
244,177 |
|||
| Property management fees |
26,533 |
25,341 |
|||
| Life insurance premiums |
162,662 |
156,103 |
|||
| Property and casualty insurance premiums |
50,020 |
46,456 |
|||
| Net investment and interest income |
86,805 |
84,728 |
|||
| Other revenue |
152,171 |
160,199 |
|||
| Total revenues |
3,275,656 |
3,074,531 |
|||
| Costs and expenses: |
|||||
| Operating expenses |
1,470,047 |
1,479,409 |
|||
| Commission expenses |
262,627 |
249,642 |
|||
| Cost of sales |
144,990 |
146,072 |
|||
| Benefits and losses |
167,436 |
158,760 |
|||
| Amortization of deferred policy acquisition costs |
23,272 |
19,661 |
|||
| Lease expense |
49,780 |
79,798 |
|||
| Depreciation, net of (gains) losses on disposals |
290,690 |
278,165 |
|||
| Total costs and expenses |
2,408,842 |
2,411,507 |
|||
| Earnings from operations |
886,814 |
663,024 |
|||
| Interest expense |
(97,903) |
(97,525) |
|||
| Fees and amortization on early extinguishment of debt |
- |
(4,081) |
|||
| Pretax earning |
768,911 |
561,418 |
|||
| Income tax expense |
(279,910) |
(204,677) |
|||
| Earnings available to common shareholders |
$ |
489,001 |
$ |
356,741 |
|
| Basic and diluted earnings per common share |
$ |
24.95 |
$ |
18.21 |
|
| Weighted average common shares outstanding: Basic and diluted |
19,596,110 |
19,586,633 |
|||
| 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
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article