AMERCO Reports Third Quarter Fiscal 2013 Financial Results
RENO, Nev., Feb. 6, 2013 /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 its third quarter ended December 31, 2012, of $36.8 million, or $1.89 per share, compared with $0.7 million, or $0.04 per share, for the same period last year. Included in the results for December 31, 2011, was an after-tax charge of $1.61 per share associated with Repwest's excess workers' compensation reserve strengthening. Taking into account this after-tax charge, adjusted earnings were $1.65 per share for the three months ended December 31, 2011.
For the nine-month period ended December 31, 2012, net earnings available to common shareholders were $226.8 million, or $11.62 per share, compared with net earnings of $171.1 million, or $8.79 per share for the same period last year. Included in the results for December 31, 2011, was the after-tax charge of $1.61 per share associated with Repwest's excess workers' compensation reserve strengthening. Taking into account this after-tax charge, adjusted earnings were $10.40 per share for the nine months ended December 31, 2011. The first nine months of the last fiscal year also included a $0.30 per share one time charge related to the redemption of our Series A 8½% Preferred Stock.
"We continue to perform well with each of our segments reporting improvements for the quarter," stated Joe Shoen, chairman of AMERCO. "Mild winter weather in most of the country has contributed to strong performance in our U-Move segment," concluded Shoen.
Highlights of Third-Quarter Fiscal 2013 Results
- Self-moving equipment rental revenues increased $19.2 million during the third quarter of fiscal 2013 compared with the third quarter of fiscal 2012 led by continued transaction growth. While Hurricane Sandy affected portions of our operations in the Northeast United States, we believe the overall effect on revenues was immaterial.
- Self-storage revenues increased $5.3 million during the third quarter of fiscal 2013, compared with the third quarter of fiscal 2012. The increase was due to our expansion efforts combined with occupancy improvement at existing locations. Average monthly occupancy during the third quarter of fiscal 2013 increased by 1.8 million square feet compared to the same period last year. Over the last twelve months we have added approximately 2.1 million net rentable square feet with nearly 0.8 million of that during the third quarter of fiscal 2013.
- Operating earnings at the Life Insurance segment increased $0.6 million during the third quarter of fiscal 2013, compared with the third quarter of fiscal 2012. During the third quarter of fiscal 2012 we acquired a block of life insurance policies resulting in an $83.4 million one-time increase in premiums and a similar increase in benefits expense; the third quarter of fiscal 2013 did not include a similar acquisition. New annuity deposits from customers increased $81.1 million compared to the same quarter last year as the focus of new sales has shifted from life products to fixed rate deferred annuities.
- Operating earnings at the Property and Casualty Insurance segment increased $45.5 million for the third quarter of fiscal 2013, compared with the third quarter of fiscal 2012. The third quarter of fiscal 2012 included $48.0 million of charges related to excess workers' compensation reserves and reinsurance contracts; these charges did not recur in fiscal 2013.
- In the third quarter of fiscal 2013, the Company paid a special cash dividend of $5.00 per share on its common stock resulting in a $97.4 million cash outflow. At December 31, 2012 cash and credit availability at the Moving and Storage operating segment was $841.6 million, compared with $628.2 million at March 31, 2012.
AMERCO will hold its investor call for the third quarter of fiscal 2013 on Thursday, February 7, 2013, 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 December 31, 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 third quarter of fiscal 2013 and 2012.
| Quarter Ended December 31, |
|||||
| 2012 |
2011 |
||||
| (Unaudited) |
|||||
| (In thousands) |
|||||
| Self-moving equipment rentals |
$ |
394,945 |
$ |
375,744 |
|
| Self-storage revenues |
39,111 |
33,846 |
|||
| Self-moving and self-storage products and services sales |
44,491 |
43,206 |
|||
| Property management fees |
6,085 |
5,368 |
|||
| Life insurance premiums |
43,248 |
132,643 |
|||
| Property and casualty insurance premiums |
9,816 |
9,429 |
|||
| Net investment and interest income |
18,927 |
15,234 |
|||
| Other revenue |
22,188 |
17,619 |
|||
| Consolidated revenue |
$ |
578,811 |
$ |
633,089 |
|
Listed below are revenues and earnings (loss) from operations at each of our operating segments for the third quarter of fiscal 2013 and 2012.
| Quarter Ended December 31, |
||||
| 2012 |
2011 |
|||
| (Unaudited) |
||||
| (In thousands) |
||||
| Moving and storage |
||||
| Revenues |
$ |
514,806 |
$ |
483,066 |
| Earnings from operations before equity in earnings of subsidiaries |
72,781 |
61,766 |
||
| Property and casualty insurance |
||||
| Revenues |
11,865 |
11,666 |
||
| Earnings (loss) from operations |
2,062 |
(43,444) |
||
| Life insurance |
||||
| Revenues |
53,090 |
139,643 |
||
| Earnings from operations |
7,181 |
6,599 |
||
| Eliminations |
||||
| Revenues |
(950) |
(1,286) |
||
| Earnings from operations before equity in earnings of subsidiaries |
(78) |
(48) |
||
| Consolidated results |
||||
| Revenues |
578,811 |
633,089 |
||
| Earnings from operations |
81,946 |
24,873 |
||
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 December 31, |
||||
| 2012 |
2011 |
|||
| (Unaudited) |
||||
| (In thousands, except |
||||
| Room count as of December 31 |
441 |
420 |
||
| Square footage as of December 31 |
39,575 |
37,464 |
||
| Average number of rooms occupied |
354 |
329 |
||
| Average occupancy rate based on room count |
80.6% |
78.5% |
||
| Average square footage occupied |
32,356 |
29,879 |
||
Listed below on a consolidated basis are revenues for our major product lines for the first nine months of fiscal 2013 and 2012.
| Nine Months Ended December 31, |
||||
| 2012 |
2011 |
|||
| (Unaudited) |
||||
| (In thousands) |
||||
| Self-moving equipment rentals |
$ |
1,400,300 |
$ |
1,333,918 |
| Self-storage revenues |
111,825 |
99,682 |
||
| Self-moving and self-storage products and service sales |
173,399 |
167,352 |
||
| Property management fees |
15,847 |
14,929 |
||
| Life insurance premiums |
137,341 |
229,839 |
||
| Property and casualty insurance premiums |
26,006 |
25,076 |
||
| Net investment and interest income |
44,237 |
48,398 |
||
| Other revenue |
76,589 |
60,041 |
||
| Consolidated revenue |
$ |
1,985,544 |
$ |
1,979,235 |
Listed below are revenues and earnings (loss) from operations at each of our operating segments for the first nine months of fiscal 2013 and 2012.
| Nine Months Ended December 31, |
|||||
| 2012 |
2011 |
||||
| (Unaudited) |
|||||
| (In thousands) |
|||||
| Moving and storage |
|||||
| Revenues |
$ |
1,793,224 |
$ |
1,697,683 |
|
| Earnings from operations before equity in earnings of subsidiaries |
407,567 |
383,072 |
|||
| Property and casualty insurance |
|||||
| Revenues |
32,521 |
32,471 |
|||
| Earnings (loss) from operations |
6,991 |
(39,348) |
|||
| Life insurance |
|||||
| Revenues |
162,396 |
252,834 |
|||
| Earnings from operations |
12,807 |
14,430 |
|||
| Eliminations |
|||||
| Revenues |
(2,597) |
(3,753) |
|||
| Earnings from operations before equity in earnings of subsidiaries |
(218) |
(485) |
|||
| Consolidated results |
|||||
| Revenues |
1,985,544 |
1,979,235 |
|||
| Earnings from operations |
427,147 |
357,669 |
|||
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:
| Nine Months Ended December 31, |
||||
| 2012 |
2011 |
|||
| (Unaudited) |
||||
| (In thousands, except |
||||
| Room count as of December 31 |
441 |
420 |
||
| Square footage as of December 31 |
39,575 |
37,464 |
||
| Average number of rooms occupied |
351 |
330 |
||
| Average occupancy rate based on room count |
81.3% |
79.3% |
||
| Average square footage occupied |
31,949 |
29,990 |
||
| AMERCO AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
| December 31, |
March 31, |
|||||
| 2012 |
2012 |
|||||
| (Unaudited) |
||||||
| (In thousands, except share data) |
||||||
| ASSETS |
||||||
| Cash and cash equivalents |
$ |
586,124 |
$ |
357,180 |
||
| Reinsurance recoverables and trade receivables, net |
226,340 |
297,974 |
||||
| Inventories, net |
55,989 |
58,735 |
||||
| Prepaid expenses |
55,148 |
41,858 |
||||
| Investments, fixed maturities and marketable equities |
1,019,968 |
766,792 |
||||
| Investments, other |
270,191 |
258,551 |
||||
| Deferred policy acquisition costs, net |
93,533 |
63,914 |
||||
| Other assets |
101,889 |
120,525 |
||||
| Related party assets |
175,175 |
316,157 |
||||
| 2,584,357 |
2,281,686 |
|||||
| Property, plant and equipment, at cost: |
||||||
| Land |
338,598 |
281,140 |
||||
| Buildings and improvements |
1,155,754 |
1,087,119 |
||||
| Furniture and equipment |
316,772 |
308,120 |
||||
| Rental trailers and other rental equipment |
303,379 |
255,010 |
||||
| Rental trucks |
2,044,639 |
1,856,433 |
||||
| 4,159,142 |
3,787,822 |
|||||
| Less: Accumulated depreciation |
(1,524,194) |
(1,415,457) |
||||
| Total property, plant and equipment |
2,634,948 |
2,372,365 |
||||
| Total assets |
$ |
5,219,305 |
$ |
4,654,051 |
||
| LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
| Liabilities: |
||||||
| Accounts payable and accrued expenses |
$ |
326,182 |
$ |
335,326 |
||
| Notes, loans and leases payable |
1,667,008 |
1,486,211 |
||||
| Policy benefits and losses, claims and loss expenses payable |
1,115,823 |
1,145,943 |
||||
| Liabilities from investment contracts |
486,502 |
240,961 |
||||
| Other policyholders' funds and liabilities |
6,348 |
7,273 |
||||
| Deferred income |
27,840 |
31,525 |
||||
| Deferred income taxes |
399,103 |
370,992 |
||||
| Total liabilities |
4,028,806 |
3,618,231 |
||||
| Stockholders' equity: |
||||||
| Common stock |
10,497 |
10,497 |
||||
| Additional paid-in capital |
436,926 |
433,743 |
||||
| Accumulated other comprehensive loss |
(22,192) |
(45,436) |
||||
| Retained earnings |
1,444,757 |
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 |
(1,839) |
(2,398) |
||||
| Total stockholders' equity |
1,190,499 |
1,035,820 |
||||
| Total liabilities and stockholders' equity |
$ |
5,219,305 |
$ |
4,654,051 |
||
| AMERCO AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
| Quarter Ended December 31, |
||||||||
| 2012 |
2011 |
|||||||
| (Unaudited) |
||||||||
| (In thousands, except share |
||||||||
| Revenues: |
||||||||
| Self-moving equipment rentals |
$ |
394,945 |
$ |
375,744 |
||||
| Self-storage revenues |
39,111 |
33,846 |
||||||
| Self-moving and self-storage products and service sales |
44,491 |
43,206 |
||||||
| Property management fees |
6,085 |
5,368 |
||||||
| Life insurance premiums |
43,248 |
132,643 |
||||||
| Property and casualty insurance premiums |
9,816 |
9,429 |
||||||
| Net investment and interest income |
18,927 |
15,234 |
||||||
| Other revenue |
22,188 |
17,619 |
||||||
| Total revenues |
578,811 |
633,089 |
||||||
| Costs and expenses: |
||||||||
| Operating expenses |
290,285 |
269,834 |
||||||
| Commission expenses |
51,130 |
47,864 |
||||||
| Cost of sales |
23,153 |
24,505 |
||||||
| Benefits and losses |
38,932 |
173,748 |
||||||
| Amortization of deferred policy acquisition costs |
3,391 |
3,666 |
||||||
| Lease expense |
27,575 |
32,325 |
||||||
| Depreciation, net of (gains) on disposals of (($1,831) and ($699), respectively) |
62,399 |
56,274 |
||||||
| Total costs and expenses |
496,865 |
608,216 |
||||||
| Earnings from operations |
81,946 |
24,873 |
||||||
| Interest expense |
(22,076) |
(22,744) |
||||||
| Pretax earnings |
59,870 |
2,129 |
||||||
| Income tax expense |
(23,024) |
(1,401) |
||||||
| Earnings available to common shareholders |
$ |
36,846 |
$ |
728 |
||||
| Basic and diluted earnings per common share |
$ |
1.89 |
$ |
0.04 |
||||
| Weighted average common shares outstanding: Basic and diluted |
19,523,794 |
19,481,614 |
||||||
|
AMERCO AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||
| Nine Months Ended |
||||
| December 31, |
||||
| 2012 |
2011 |
|||
| (Unaudited) |
||||
| (In thousands, except share and per share data) |
||||
| Revenues: |
||||
| Self-moving equipment rentals |
$ |
1,400,300 |
$ |
1,333,918 |
| Self-storage revenues |
111,825 |
99,682 |
||
| Self-moving and self-storage products and service sales |
173,399 |
167,352 |
||
| Property management fees |
15,847 |
14,929 |
||
| Life insurance premiums |
137,341 |
229,839 |
||
| Property and casualty insurance premiums |
26,006 |
25,076 |
||
| Net investment and interest income |
44,237 |
48,398 |
||
| Other revenue |
76,589 |
60,041 |
||
| Total revenues |
1,985,544 |
1,979,235 |
||
| Costs and expenses: |
||||
| Operating expenses |
883,892 |
836,149 |
||
| Commission expenses |
180,801 |
168,865 |
||
| Cost of sales |
86,292 |
89,729 |
||
| Benefits and losses |
130,682 |
268,140 |
||
| Amortization of deferred policy acquisition costs |
9,290 |
10,716 |
||
| Lease expense |
89,962 |
99,271 |
||
| Depreciation, net of (gains) on disposals of (($14,879) and ($18,326), respectively) |
177,478 |
148,696 |
||
| Total costs and expenses |
1,558,397 |
1,621,566 |
||
| Earnings from operations |
427,147 |
357,669 |
||
| Interest expense |
(67,680) |
(68,340) |
||
| Pretax earnings |
359,467 |
289,329 |
||
| Income tax expense |
(132,632) |
(109,367) |
||
| Net earnings |
226,835 |
179,962 |
||
| 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 |
$ |
226,835 |
$ |
171,141 |
| Basic and diluted earnings per common share |
$ |
11.62 |
$ |
8.79 |
| Weighted average common shares outstanding: Basic and diluted |
19,512,974 |
19,470,886 |
||
| NON-GAAP FINANCIAL RECONCILIATION SCHEDULE |
|||||
| Quarter Ended |
|||||
| December 31, 2011 |
|||||
| (In thousands, except share and per share amounts) |
|||||
| AMERCO and Consolidated Entities |
|||||
| Earnings per common share basic and diluted |
$ |
0.04 |
|||
| Charge for strengthening reserves |
1.61 |
||||
| Earnings per common share basic and diluted before charge for strengthening reserves |
$ |
1.65 |
|||
| 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 |
19,481,614 |
||||
| Nine Months Ended |
|||||
| December 31, 2011 |
|||||
| (In thousands, except share and per share amounts) |
|||||
| AMERCO and Consolidated Entities |
|||||
| Earnings per common share basic and diluted |
$ |
8.79 |
|||
| Charge for strengthening reserves |
1.61 |
||||
| Earnings per common share basic and diluted before charge for strengthening reserves |
$ |
10.40 |
|||
| 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 |
19,470,886 |
||||
| Impact of Redemption of Preferred Stock and Dividend Payment for Preferred Stock on Earnings Per Share for the Nine Months Ended December 31, 2011: |
|||||
| Excess of redemption value over carrying value of preferred shares redeemed (In thousands) |
$5,908 |
||||
| Weighted average common shares outstanding: Basic and diluted |
19,470,886 |
||||
| Earnings per share impact |
$0.30 |
||||
| Preferred stock dividends (In thousands) |
$2,913 |
||||
| Weighted average common shares outstanding: Basic and diluted |
19,470,886 |
||||
| Earnings per share impact |
$0.15 |
||||
SOURCE AMERCO
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article