AMERCO Reports Third Quarter Fiscal 2010 Financial Results
RENO, Nev., Feb. 3 /PRNewswire-FirstCall/ -- AMERCO (Nasdaq: UHAL), parent of U-Haul International, Inc., North America's largest "do-it-yourself" moving and storage operator, today reported net earnings available to common shareholders for its third quarter ended December 31, 2009, of $0.3 million, or $0.02 per share, compared with a net loss of $28.2 million, or a loss of $1.46 per share, for the same period last year.
For the nine-month period ended December 31, 2009, net earnings available to common shareholders were $61.4 million, or $3.17 per share, compared with net earnings of $39.0 million, or $2.01 per share for the same period last year.
"The positive results for the quarter were a reflection of growth in truck rental transactions combined with our cost control measures," stated Joe Shoen, chairman. "We are continuing our efforts to enhance long-term shareholder value by focusing on our moving and storage customers," concluded Shoen.
Highlights of Third-Quarter Fiscal 2010 Results
- Self-moving equipment rental revenues increased $9.7 million for the third quarter of fiscal 2010 compared with the third quarter of fiscal 2009. We experienced increases in both one-way and In-Town transactions compared with the same period last year.
- Self-storage revenues increased $0.5 million for the third quarter of fiscal 2010 compared with the same period last year as total rooms rented increased.
- For the third quarter of fiscal 2010 the Company reported a net loss from the disposal of equipment of $0.3 million compared to a net loss of $5.6 million for the third quarter of fiscal 2009 due to the improvement in resale values of our used rental equipment.
- Operating expenses at the Moving and Storage segment decreased $17.8 million for the third quarter of fiscal 2010 compared with the third quarter of fiscal 2009 largely due to declines in personnel expense and equipment repair costs stemming from rotation of the fleet.
- Truck and trailer capital expenditures for the first nine months of fiscal 2010 were approximately $225 million compared with $439 million for the first nine months of fiscal 2009. Proceeds from sales of rental equipment increased $25 million to $129 million for the first nine months of fiscal 2010 compared with the same period last year.
AMERCO will hold its investor call for the third quarter of fiscal 2010 on Thursday, February 4, 2010, 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
About AMERCO
AMERCO is the parent company of U-Haul International, Inc., North America's largest "do-it-yourself" moving and storage operator, AMERCO Real Estate Company, Republic Western Insurance Company and Oxford Life Insurance Company.
Since 1945, U-Haul has been the best choice for the do-it-yourself mover, with a network of more than 15,800 locations in all 50 United States and 10 Canadian provinces. U-Haul customers' patronage has enabled the U-Haul fleet to grow to approximately 101,000 trucks, 76,000 trailers and 34,000 towing devices. U-Haul offers more than 401,000 rooms and approximately 35 million square feet of storage space at nearly 1,090 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. U-Haul supplies alternative fuel for vehicles and backyard barbecues as one of the nation's largest retailers of propane.
U-Haul was founded by a Navy veteran who grew up during the Great Depression. Tires and gas were still rationed or in short supply during the late 1940s when U-Haul began serving U.S. customers. Today, that background is central to the U-Haul Sustainability Program: "Serving the needs of the present without compromising the ability of future generations to meet their own needs." Our commitment to reduce, reuse and recycle includes fuel-efficient moving vans, neighborhood proximity, moving box reuse, moving pads made from discarded material and packing peanuts that are 100 percent biodegradable. Learn more about these facts and others at www.uhaul.com/sustainability.
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-Q for the quarter ended December 31, 2009, 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 third quarter of fiscal 2010 and 2009.
Quarter Ended December 31,
--------------------------
2009 2008
---- ----
(Unaudited)
(In thousands)
Self-moving equipment rentals $321,275 $311,557
Self-storage revenues 27,931 27,397
Self-moving and self-storage products and
service sales 41,077 38,663
Property management fees 5,504 6,059
Life insurance premiums 39,011 27,509
Property and casualty insurance premiums 7,810 8,129
Net investment and interest income 12,689 14,913
Other revenue 8,331 8,357
----- -----
Consolidated revenue $463,628 $442,584
======== ========
Listed below are revenues and earnings (loss) from operations at each of our operating segments for the third quarter of fiscal 2010 and 2009. The insurance companies third quarters ended September 30, 2009 and 2008.
Quarter Ended December 31,
--------------------------
2009 2008
---- ----
(Unaudited)
(In thousands)
Moving and storage
Revenues $410,969 $399,851
Earnings (loss) from operations 26,126 (16,505)
Property and casualty insurance
Revenues 9,642 10,317
Earnings from operations 1,636 2,609
Life insurance
Revenues 44,389 33,342
Earnings from operations 5,462 3,888
Eliminations
Revenues (1,372) (926)
Earnings from operations (4,666) (3,993)
Consolidated results
Revenues 463,628 442,584
Earnings (loss) from operations 28,558 (14,001)
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 for the third quarter of fiscal 2010 and 2009 is as follows:
Quarter Ended December 31,
--------------------------
2009 2008
---- ----
(Unaudited)
(In thousands, except
occupancy rate)
Room count as of December 31 401 395
Square footage as of December 31 35,400 34,763
Average number of rooms occupied 305 315
Average occupancy rate based on
room count 76.4% 80.1%
Average square footage occupied 27,759 28,455
Listed below on a consolidated basis are revenues for our major product lines for the first nine months of fiscal 2010 and 2009.
Nine Months Ended December 31,
------------------------------
2009 2008
---- ----
(Unaudited)
(In thousands)
Self-moving equipment rentals $1,121,419 $1,140,830
Self-storage revenues 82,347 82,849
Self-moving and self-storage
products and service sales 154,421 159,515
Property management fees 14,432 15,496
Life insurance premiums 95,353 81,525
Property and casualty insurance
premiums 21,071 21,612
Net investment and interest income 38,908 44,492
Other revenue 30,260 30,554
------ ------
Consolidated revenue $1,558,211 $1,576,873
========== ==========
Listed below are revenues and earnings from operations at each of our operating segments for the first nine months of fiscal 2010 and 2009. The insurance companies first nine months ended September 30, 2009 and 2008.
Nine Months Ended December 31,
------------------------------
2009 2008
---- ----
(Unaudited)
(In thousands)
Moving and storage
Revenues $1,423,054 $1,449,370
Earnings from operations 177,792 146,031
Property and casualty insurance
Revenues 26,552 28,892
Earnings from operations 4,686 7,009
Life insurance
Revenues 111,996 100,921
Earnings from operations 12,051 13,391
Eliminations
Revenues (3,391) (2,310)
Earnings from operations (10,957) (13,248)
Consolidated results
Revenues 1,558,211 1,576,873
Earnings from operations 183,572 153,183
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 for the first nine months of fiscal 2010 and 2009 is as follows:
Nine Months Ended December 31,
------------------------------
2009 2008
---- ----
(Unaudited)
(In thousands, except
occupancy rate)
Room count as of December 31 401 395
Square footage as of December 31 35,400 34,763
Average number of rooms occupied 309 320
Average occupancy rate based on room count 77.4% 81.9%
Average square footage occupied 27,910 28,862
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 2009 March 31, 2009
----------------- --------------
(Unaudited)
ASSETS (In thousands)
Cash and cash equivalents $411,701 $240,587
Reinsurance recoverables and
trade receivables, net 203,230 213,853
Notes and mortgage
receivables, net 3,590 2,931
Inventories, net 57,683 70,749
Prepaid expenses 52,823 54,201
Investments, fixed
maturities and marketable
equities 552,672 519,631
Investments, other 213,871 227,022
Deferred policy acquisition
costs, net 36,544 44,993
Other assets 174,453 133,644
Related party assets 294,767 303,534
------- -------
2,001,334 1,811,145
--------- ---------
Property, plant and
equipment, at cost:
Land 224,154 212,744
Buildings and improvements 957,212 920,294
Furniture and equipment 327,787 333,314
Rental trailers and other
rental equipment 242,008 214,988
Rental trucks 1,555,880 1,666,151
--------- ---------
3,307,041 3,347,491
Less: Accumulated
depreciation (1,338,686) (1,333,563)
---------- ----------
Total property, plant and
equipment 1,968,355 2,013,928
--------- ---------
Total assets $3,969,689 $3,825,073
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued
expenses $280,704 $329,227
Notes, loans and leases
payable 1,537,903 1,546,490
Policy benefits and losses,
claims and loss expenses
payable 808,782 779,309
Liabilities from investment
contracts 272,654 303,332
Other policyholders' funds
and liabilities 10,631 11,961
Deferred income 25,210 24,612
Deferred income taxes 212,692 112,513
------- -------
Total liabilities 3,148,576 3,107,444
--------- ---------
Stockholders' equity:
Common stock 10,497 10,497
Additional paid-in capital 420,082 420,588
Accumulated other
comprehensive loss (56,188) (98,000)
Retained earnings 977,228 915,862
Cost of common shares in
treasury, net (525,653) (525,653)
Unearned employee stock
ownership plan shares (4,853) (5,665)
------ ------
Total stockholders' equity 821,113 717,629
------- -------
Total liabilities and
stockholders' equity $3,969,689 $3,825,073
========== ==========
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter Ended December 31,
2009 2008
---- ----
(Unaudited)
(In thousands, except
share and per share
amounts)
Revenues:
Self-moving equipment rentals $321,275 $311,557
Self-storage revenues 27,931 27,397
Self-moving and self-storage products
and service sales 41,077 38,663
Property management fees 5,504 6,059
Life insurance premiums 39,011 27,509
Property and casualty insurance
premiums 7,810 8,129
Net investment and interest income 12,689 14,913
Other revenue 8,331 8,357
----- -----
Total revenues 463,628 442,584
------- -------
Costs and expenses:
Operating expenses 244,713 261,724
Commission expenses 37,974 36,664
Cost of sales 20,797 23,229
Benefits and losses 33,959 24,831
Amortization of deferred policy
acquisition costs 2,154 2,743
Lease expense 38,447 38,719
Depreciation, net of (gains) losses on
disposals 57,026 68,675
------ ------
Total costs and expenses 435,070 456,585
------- -------
Earnings (loss) from operations 28,558 (14,001)
Interest expense (23,517) (26,000)
------- -------
Pretax earnings (loss) 5,041 (40,001)
Income tax benefit (expense) (1,521) 15,049
------ ------
Net earnings (loss) 3,520 (24,952)
Excess carrying amount of preferred
stock over consideration paid 10 -
Less: Preferred stock dividends (3,205) (3,241)
------ ------
Earnings (loss) available to common
shareholders $325 $(28,193)
==== ========
Basic and diluted earnings (loss) per
common share $0.02 $(1.46)
===== ======
Weighted average common shares
outstanding:
Basic and diluted 19,393,306 19,347,660
========== ==========
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Nine Months Ended
December 31,
2009 2008
---- ----
(Unaudited)
(In thousands, except
share and per share
amounts)
Revenues:
Self-moving equipment rentals $1,121,419 $1,140,830
Self-storage revenues 82,347 82,849
Self-moving and self-storage products
and service sales 154,421 159,515
Property management fees 14,432 15,496
Life insurance premiums 95,353 81,525
Property and casualty insurance
premiums 21,071 21,612
Net investment and interest income 38,908 44,492
Other revenue 30,260 30,554
------ ------
Total revenues 1,558,211 1,576,873
--------- ---------
Costs and expenses:
Operating expenses 776,944 800,527
Commission expenses 133,483 138,711
Cost of sales 79,606 90,856
Benefits and losses 87,460 74,577
Amortization of deferred policy
acquisition costs 6,367 7,169
Lease expense 117,746 111,803
Depreciation, net of (gains) losses on
disposals 173,033 200,047
------- -------
Total costs and expenses 1,374,639 1,423,690
--------- ---------
Earnings from operations 183,572 153,183
Interest expense (70,676) (74,774)
------- -------
Pretax earnings 112,896 78,409
Income tax expense (42,253) (29,711)
------- -------
Net earnings 70,643 48,698
Excess carrying amount of preferred
stock over consideration paid 381 -
Less: Preferred stock dividends (9,658) (9,723)
------ ------
Earnings available to common
shareholders $61,366 $38,975
======= =======
Basic and diluted earnings per common
share $3.17 $2.01
===== =====
Weighted average common shares
outstanding:
Basic and diluted 19,381,579 19,347,302
========== ==========
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended
December 31,
2009 2008
---- ----
(Unaudited)
(In thousands)
Cash flow from operating activities:
Net earnings $70,643 $48,698
Adjustments to reconcile net earnings to
cash provided by operations:
Depreciation 174,539 185,027
Amortization of deferred policy acquisition
costs 6,367 7,169
Change in allowance for losses on trade
receivables 139 (138)
Change in allowance for losses on mortgage
notes (6) (308)
Change in allowance for inventory reserves 2,422 1,488
Net (gain) loss on sale of real and personal
property (1,506) 15,020
Net (gain) loss on sale of investments (850) 153
Deferred income taxes 39,767 22,108
Net change in other operating assets and
liabilities:
Reinsurance recoverables and trade
receivables 10,478 (6,351)
Inventories 10,644 (11,573)
Prepaid expenses 1,378 6,726
Capitalization of deferred policy
acquisition costs (10,383) (7,509)
Other assets 4,535 (4,280)
Related party assets 2,152 3,786
Accounts payable and accrued expenses (22,754) (6,924)
Policy benefits and losses, claims and loss
expenses payable 27,010 (3,770)
Other policyholders' funds and liabilities (1,329) (2,599)
Deferred income 418 10,675
Related party liabilities (976) (4,493)
---- ------
Net cash provided by operating activities 312,688 252,905
------- -------
Cash flows from investing activities:
Purchases of:
Property, plant and equipment (212,859) (316,970)
Short term investments (206,681) (253,786)
Fixed maturities investments (129,401) (126,375)
Preferred stock (1,539) (2,000)
Real estate (457) (412)
Mortgage loans (2,213) (12,146)
Proceeds from sale of:
Property, plant and equipment 130,789 106,435
Short term investments 216,932 244,399
Fixed maturities investments 127,244 195,451
Equity securities - 28
Preferred stock 2,236 -
Real estate 53 704
Mortgage loans 4,728 5,165
Payments from notes and mortgage receivables 131 816
--- ---
Net cash used by investing activities (71,037) (158,691)
------- --------
Cash flows from financing activities:
Borrowings from credit facilities 63,093 165,330
Principal repayments on credit facilities (98,877) (117,207)
Debt issuance costs (2,325) (360)
Capital lease payments (2,519) (561)
Leveraged Employee Stock Ownership Plan-
repayments from loan 812 951
Repurchase of stock - (963)
Preferred stock dividends paid (9,658) (9,723)
Dividend from related party 7,764 -
Investment contract deposits 8,230 14,460
Investment contract withdrawals (38,908) (39,867)
------- -------
Net cash provided (used) by financing
activities (72,388) 12,060
------- ------
Effects of exchange rate on cash 1,851 (1,379)
----- ------
Increase in cash equivalents 171,114 104,895
Cash and cash equivalents at the beginning
of period 240,587 206,622
------- -------
Cash and cash equivalents at the end of
period 411,701 $311,517
======= ========
SOURCE AMERCO
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