AMERCO Reports Second Quarter Fiscal 2013 Financial Results; Board Declares Special Cash Dividend Of $5.00 Per Share
RENO, Nev., Nov. 7, 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 its financial results for the second quarter ended September 30, 2012 and its Board of Directors declared a special cash dividend of $5.00 per share, payable on November 30, 2012 to stockholders of record as of November 19, 2012.
AMERCO's net earnings available to common shareholders for its second quarter ended September 30, 2012, were $109.4 million, or $5.61 per share, compared with net earnings of $101.2 million, or $5.20 per share, for the same period last year.
For the six-month period ended September 30, 2012, net earnings available to common shareholders were $190 million, or $9.74 per share compared with net earnings of $170.4 million, or $8.75 per share, for the same period last year. The first six months of the last fiscal year included a $0.30 per share one-time charge related to the redemption of our Series A 8½% Preferred Stock.
"Our Moving and Self-Storage segment continues to produce strong results," stated Joe Shoen, chairman of AMERCO. "We will continue to work hard to build on this success as we enter our traditionally slower fall and winter quarters.
"Hurricane Sandy affected operations at about 100 Company operated locations, all but one are now open. We have storm-damaged buildings, rental equipment and customer's belongings. It will be weeks before we can assess the storm's financial impact," concluded Shoen.
Highlights of Second Quarter Fiscal 2013 Results
- Self-moving equipment rental revenues increased $26.7 million during the second quarter of fiscal 2013, compared with the second quarter of fiscal 2012 on continued growth in moving transactions.
- Self-storage revenues increased $4.0 million during the second quarter of fiscal 2013, compared with the second quarter of fiscal 2012. We are increasing both the number of rooms rented through acquisitions and by improving occupancy at existing locations. Over the last twelve months we have added approximately 1.6 million net rentable square feet with nearly 0.6 million of that during the second quarter of fiscal 2013.
- Operating expenses for the Moving and Self-Storage operating segment increased $14.3 million with a significant portion of this coming from spending on personnel, legal expense and liability costs. Depreciation expense, net, increased $10.9 million while lease expense decreased $3.1 million as a result of the Company's shift in financing new equipment on the balance sheet versus through operating leases.
- During the first quarter of fiscal 2013, SAC Holdings repaid AMERCO $127.3 million for notes and interest outstanding. These notes carried interest rates of 9%. This loss of yield caused a $2.9 million decline in interest income for the second quarter of fiscal 2013.
AMERCO will hold its investor call for the second quarter of fiscal 2013 on Thursday, November 8, 2012, at 8 a.m. Arizona Time (10 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 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-Q for the quarter ended September 30, 2012, 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 second quarter of fiscal 2013 and 2012.
| Quarter Ended September 30, |
||||
| 2012 |
2011 |
|||
| (Unaudited) (In thousands) |
||||
| Revenue: |
||||
| Self-moving equipment rentals |
$ |
538,361 |
$ |
511,626 |
| Self-storage revenues |
37,978 |
34,008 |
||
| Self-moving and self-storage products and service sales |
61,730 |
59,768 |
||
| Property management fees |
4,902 |
4,826 |
||
| Life insurance premiums |
47,667 |
46,197 |
||
| Property and casualty insurance premiums |
8,947 |
8,749 |
||
| Net investment and interest income |
13,053 |
15,901 |
||
| Other revenue |
28,679 |
22,106 |
||
| Consolidated revenue |
$ |
741,317 |
$ |
703,181 |
Listed below are revenues and earnings from operations at each of our operating segments for the second quarter of fiscal 2013 and 2012.
| Quarter Ended September 30, |
||||
| 2012 |
2011 |
|||
| (Unaudited) |
||||
| (In thousands) |
||||
| Moving and self-storage |
||||
| Revenues |
$ |
675,569 |
$ |
639,618 |
| Earnings from operations before equity in earnings of subsidiaries |
187,827 |
176,636 |
||
| Property and casualty insurance |
||||
| Revenues |
11,213 |
11,673 |
||
| Earnings from operations |
2,342 |
2,197 |
||
| Life insurance |
||||
| Revenues |
55,424 |
53,192 |
||
| Earnings from operations |
4,222 |
5,796 |
||
| Eliminations |
||||
| Revenues |
(889) |
(1,302) |
||
| Earnings from operations before equity in earnings of subsidiaries |
(69) |
(196) |
||
| Consolidated results |
||||
| Revenues |
741,317 |
703,181 |
||
| Earnings from operations |
194,322 |
184,433 |
||
The Company owns and manages self-storage facilities. Self-storage revenues reported in the consolidated financial statements represent Company-owned locations only. U-Haul also provides property management services for storage locations and earns a fee for these services. These storage centers are not owned by the Company and therefore are not reported on the balance sheet and the rental revenues are not reported in the statements of operations. Self-storage data for both our owned and managed locations follows:
| Quarter Ended September 30, |
||||
| 2012 |
2011 |
|||
| (Unaudited) |
||||
| (In thousands, except occupancy rate) |
||||
| Room count as of September 30 |
435 |
417 |
||
| Square footage as of September 30 |
38,818 |
37,064 |
||
| Average number of rooms occupied |
359 |
337 |
||
| Average occupancy rate based on room count |
83.3% |
81.0% |
||
| Average square footage occupied |
32,603 |
30,508 |
||
Listed below on a consolidated basis are revenues for our major product lines for the first six months of fiscal 2013 and 2012.
| Six Months Ended September 30, |
|||||||
| 2012 |
2011 |
||||||
| (Unaudited) |
|||||||
| (In thousands) |
|||||||
| Revenue: |
|||||||
| Self-moving equipment rentals |
$ |
1,005,355 |
$ |
958,174 |
|||
| Self-storage revenues |
72,714 |
65,836 |
|||||
| Self-moving and self-storage products and services |
128,908 |
124,146 |
|||||
| Property management fees |
9,762 |
9,561 |
|||||
| Life insurance premiums |
94,093 |
97,196 |
|||||
| Property and casualty insurance premiums |
16,190 |
15,647 |
|||||
| Net investment and interest income |
25,310 |
33,164 |
|||||
| Other revenue |
54,401 |
42,422 |
|||||
| Consolidated revenue |
$ |
1,406,733 |
$ |
1,346,146 |
|||
Listed below are revenues and earnings from operations at each of our operating segments for the first six months of fiscal 2013 and 2012.
| Six Months Ended September 30, |
||||||
| 2012 |
2011 |
|||||
| (Unaudited) |
||||||
| (In thousands) |
||||||
| Moving and self-storage |
||||||
| Revenues |
$ |
1,278,418 |
$ |
1,214,617 |
||
| Earnings from operations before equity in earnings of subsidiaries |
334,786 |
321,306 |
||||
| Property and casualty insurance |
||||||
| Revenues |
20,656 |
20,805 |
||||
| Earnings from operations |
4,929 |
4,096 |
||||
| Life insurance |
||||||
| Revenues |
109,306 |
113,191 |
||||
| Earnings from operations |
5,626 |
7,831 |
||||
| Eliminations |
||||||
| Revenues |
(1,647) |
(2,467) |
||||
| Earnings from operations before equity in earnings of subsidiaries |
(140) |
(437) |
||||
| Consolidated results |
||||||
| Revenues |
1,406,733 |
1,346,146 |
||||
| Earnings from operations |
345,201 |
332,796 |
||||
The Company owns and manages self-storage facilities. Self-storage revenues reported in the consolidated financial statements represent Company-owned locations only. U-Haul also provides property management services for storage locations and earns a fee for these services. These storage centers are not owned by the Company and therefore are not reported on the balance sheet and the rental revenues are not reported in the statements of operations. Self-storage data for both our owned and managed locations follows:
| Six Months Ended September 30, |
|||
| 2012 |
2011 |
||
| (Unaudited) |
|||
| (In thousands, except occupancy rate) |
|||
| Room count as of September 30 |
435 |
417 |
|
| Square footage as of September 30 |
38,818 |
37,064 |
|
| Average number of rooms occupied |
350 |
330 |
|
| Average occupancy rate based on room count |
81.6% |
79.7% |
|
| Average square footage occupied |
31,745 |
29,911 |
|
| AMERCO AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||
| September 30, 2012 |
March 31, 2012 |
|||
| (Unaudited) |
||||
| ASSETS |
(In thousands) |
|||
| Cash and cash equivalents |
$ |
645,821 |
$ |
357,180 |
| Reinsurance recoverables and trade receivables, net |
264,563 |
297,974 |
||
| Inventories, net |
58,659 |
58,735 |
||
| Prepaid expenses |
41,444 |
41,858 |
||
| Investments, fixed maturities and marketable equities |
904,446 |
766,792 |
||
| Investments, other |
293,585 |
258,551 |
||
| Deferred policy acquisition costs, net |
79,868 |
63,914 |
||
| Other assets |
103,498 |
120,525 |
||
| Related party assets |
173,505 |
316,157 |
||
| 2,565,389 |
2,281,686 |
|||
| Property, plant and equipment, at cost: |
||||
| Land |
309,654 |
281,140 |
||
| Buildings and improvements |
1,130,852 |
1,087,119 |
||
| Furniture and equipment |
310,516 |
308,120 |
||
| Rental trailers and other rental equipment |
293,735 |
255,010 |
||
| Rental trucks |
2,008,602 |
1,856,433 |
||
| 4,053,359 |
3,787,822 |
|||
| Less: Accumulated depreciation |
(1,481,784) |
(1,415,457) |
||
| Total property, plant and equipment |
2,571,575 |
2,372,365 |
||
| Total assets |
$ |
5,136,964 |
$ |
4,654,051 |
| LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
| Liabilities: |
||||
| Accounts payable and accrued expenses |
$ |
372,756 |
$ |
335,326 |
| Notes, loans and leases payable |
1,556,891 |
1,486,211 |
||
| Policy benefits and losses, claims and loss expenses payable |
1,128,929 |
1,145,943 |
||
| Liabilities from investment contracts |
395,620 |
240,961 |
||
| Other policyholders' funds and liabilities |
11,403 |
7,273 |
||
| Deferred income |
30,886 |
31,525 |
||
| Deferred income taxes |
404,558 |
370,992 |
||
| Total liabilities |
3,901,043 |
3,618,231 |
||
| Stockholders' equity: |
||||
| Common stock |
10,497 |
10,497 |
||
| Additional paid-in capital |
435,376 |
433,743 |
||
| Accumulated other comprehensive loss |
(35,552) |
(45,436) |
||
| Retained earnings |
1,505,332 |
1,317,064 |
||
| 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 |
(2,082) |
(2,398) |
||
| Total stockholders' equity |
1,235,921 |
1,035,820 |
||
| Total liabilities and stockholders' equity |
$ |
5,136,964 |
$ |
4,654,051 |
| AMERCO AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|||||
| Quarter Ended September 30, |
|||||
| 2012 |
2011 |
||||
| (Unaudited) |
|||||
| (In thousands, except share and per share amounts) |
|||||
| Revenues: |
|||||
| Self-moving equipment rentals |
$ |
538,361 |
$ |
511,626 |
|
| Self-storage revenues |
37,978 |
34,008 |
|||
| Self-moving and self-storage products and service sales |
61,730 |
59,768 |
|||
| Property management fees |
4,902 |
4,826 |
|||
| Life insurance premiums |
47,667 |
46,197 |
|||
| Property and casualty insurance premiums |
8,947 |
8,749 |
|||
| Net investment and interest income |
13,053 |
15,901 |
|||
| Other revenue |
28,679 |
22,106 |
|||
| Total revenues |
741,317 |
703,181 |
|||
| Costs and expenses: |
|||||
| Operating expenses |
310,214 |
294,340 |
|||
| Commission expenses |
68,564 |
64,049 |
|||
| Cost of sales |
30,912 |
32,446 |
|||
| Benefits and losses |
45,672 |
44,462 |
|||
| Amortization of deferred policy acquisition costs |
3,088 |
2,675 |
|||
| Lease expense |
29,591 |
32,712 |
|||
| Depreciation, net of (gains) on disposals of (($5,532) and ($7,917),respectively) |
58,954 |
48,064 |
|||
| Total costs and expenses |
546,995 |
518,748 |
|||
| Earnings from operations |
194,322 |
184,433 |
|||
| Interest expense |
(22,113) |
(22,963) |
|||
| Pretax earnings |
172,209 |
161,470 |
|||
| Income tax expense |
(62,789) |
(60,459) |
|||
| Net earnings |
109,420 |
101,011 |
|||
| Less: Preferred stock dividends |
- |
164 |
|||
| Earnings available to common shareholders |
$ |
109,420 |
$ |
101,175 |
|
| Basic and diluted earnings per common share |
$ |
5.61 |
$ |
5.20 |
|
| Weighted average common shares outstanding: Basic and diluted |
19,512,550 |
19,470,948 |
|||
| AMERCO AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|||||||||
| Six Months Ended September 30, |
|||||||||
| 2012 |
2011 |
||||||||
| (Unaudited) |
|||||||||
| (In thousands, except share and per share amounts) |
|||||||||
| Revenues: |
|||||||||
| Self-moving equipment rentals |
$ |
1,005,355 |
$ |
958,174 |
|||||
| Self-storage revenues |
72,714 |
65,836 |
|||||||
| Self-moving and self-storage products and service sales |
128,908 |
124,146 |
|||||||
| Property management fees |
9,762 |
9,561 |
|||||||
| Life insurance premiums |
94,093 |
97,196 |
|||||||
| Property and casualty insurance premiums |
16,190 |
15,647 |
|||||||
| Net investment and interest income |
25,310 |
33,164 |
|||||||
| Other revenue |
54,401 |
42,422 |
|||||||
| Total revenues |
1,406,733 |
1,346,146 |
|||||||
| Costs and expenses: |
|||||||||
| Operating expenses |
593,607 |
566,315 |
|||||||
| Commission expenses |
129,671 |
121,001 |
|||||||
| Cost of sales |
63,139 |
65,224 |
|||||||
| Benefits and losses |
91,750 |
94,392 |
|||||||
| Amortization of deferred policy acquisition costs |
5,899 |
7,050 |
|||||||
| Lease expense |
62,387 |
66,946 |
|||||||
| Depreciation, net of (gains) on disposals of (($13,048) and ($17,627), respectively) |
115,079 |
92,422 |
|||||||
| Total costs and expenses |
1,061,532 |
1,013,350 |
|||||||
| Earnings from operations |
345,201 |
332,796 |
|||||||
| Interest expense |
(45,604) |
(45,596) |
|||||||
| Pretax earnings |
299,597 |
287,200 |
|||||||
| Income tax expense |
(109,608) |
(107,966) |
|||||||
| Net earnings |
189,989 |
179,234 |
|||||||
| Less: Excess of redemption value over carrying value of preferred shares redeemed |
- |
(5,908) |
|||||||
| Less: Preferred stock dividends |
- |
(2,913) |
|||||||
| Earnings available to common shareholders |
$ |
189,989 |
$ |
170,413 |
|||||
| Basic and diluted earnings per common share |
$ |
9.74 |
$ |
8.75 |
|||||
| Weighted average common shares outstanding: Basic and diluted |
19,507,456 |
19,465,530 |
|||||||
| Non-GAAP Financial Measure |
|
| Excess of redemption value over carrying value of preferred shares redeemed (In thousands) |
$5,908 |
| Weighted average common shares outstanding: Basic and diluted |
19,465,530 |
| Earnings per share impact |
$0.30 |
| Preferred stock dividends (In thousands) |
$2,913 |
| Weighted average common shares outstanding: Basic and diluted |
19,465,530 |
| Earnings per share impact |
$0.15 |
SOURCE AMERCO
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