AMERCO Reports Third Quarter Fiscal 2015 Financial Results
RENO, Nev., Feb. 4, 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 common shareholders for its third quarter ended December 31, 2014, of $66.5 million, or $3.40 per share, compared with net earnings of $52.2 million, or $2.67 per share, for the same period last year.
For the nine-month period ended December 31, 2014, net earnings available to common shareholders were $347.3 million, or $17.73 per share compared with net earnings of $303.2 million, or $15.50 per share, for the same period last year.
"Investments made in additional storage rooms, rental trucks, rental trailers and electronic tools continue to bear fruit," stated Joe Shoen, chairman of AMERCO. "U-Haul is benefiting from interest rates, fleet increases, storage occupancy increases and a robust truck resale market. U-Haul Teams across America continue to work hard to earn the customer's loyalty."
Highlights of Third Quarter Fiscal 2015 Results
- Self-moving equipment rental revenues increased $51.2 million or 12% during the third quarter of fiscal 2015, compared with the third quarter of fiscal 2014. Our In-Town and one-way truck and trailer business continues to improve from increased transactions. Compared to the third quarter of last year we have increased the number of trucks and trailers in our rental fleet and have continued to expand our distribution network through the addition of both Company-owned locations and independent dealerships.
- Self-storage revenues increased $7.4 million during the third quarter of fiscal 2015, compared with the third quarter of fiscal 2014. The additional revenue comes from occupancy improvement at existing locations along with continued acquisition activity. Over the last twelve months we have added approximately 1.8 million net rentable square feet to our owned self-storage portfolio.
- Operating earnings at our Moving and Storage operating segment increased $25.7 million in the third quarter of fiscal 2015 compared with the same period last year. Operating earnings for our Property and Casualty Insurance segment improved $1.2 million and our Life Insurance segment increased $0.2 million over the same periods.
- Cash and credit availability at the Moving and Storage operating segment was $835.7 million at December 31, 2014 compared with $625.1 million at March 31, 2014.
- In January 2015 we further reduced our fiscal 2016 maturities through the early repayment of $245.9 million of our senior mortgages. These payments were made from existing cash balances.
- For the first nine months of fiscal 2015 compared with the first nine months of fiscal 2014 gross truck and trailer capital expenditures were approximately $635 million compared with approximately $512 million, proceeds from sales of rental equipment were $319 million compared with $204 million and spending on real estate related acquisitions and projects increased approximately $12 million to $268 million.
AMERCO will hold its investor call for the third quarter of fiscal 2015 on Thursday, February 5, 2015, 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., 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, 2014, 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 2015 and 2014.
| Quarter Ended December 31, |
||||
| 2014 |
2013 |
|||
| (Unaudited) |
||||
| (In thousands) |
||||
| Self-moving equipment rentals |
$ |
487,415 |
$ |
436,207 |
| Self-storage revenues |
53,503 |
46,120 |
||
| Self-moving and self-storage product and service sales |
49,081 |
47,045 |
||
| Property management fees |
7,497 |
7,133 |
||
| Life insurance premiums |
39,026 |
39,198 |
||
| Property and casualty insurance premiums |
13,584 |
12,219 |
||
| Net investment and interest income |
20,752 |
20,887 |
||
| Other revenue |
35,497 |
36,522 |
||
| Consolidated revenue |
706,355 |
645,331 |
||
Listed below are revenues and earnings from operations at each of our operating segments for the third quarter of fiscal 2015 and 2014. The insurance companies third quarters ended September 30, 2014 and 2013.
| Quarter Ended December 31, |
|||||
| 2014 |
2013 |
||||
| (Unaudited) |
|||||
| (In thousands) |
|||||
| Moving and storage |
|||||
| Revenues |
$ |
635,833 |
$ |
578,162 |
|
| Earnings from operations before equity in earnings of subsidiaries |
117,891 |
92,173 |
|||
| Property and casualty insurance |
|||||
| Revenues |
16,545 |
15,228 |
|||
| Earnings from operations |
6,941 |
5,716 |
|||
| Life insurance |
|||||
| Revenues |
55,377 |
53,152 |
|||
| Earnings from operations |
8,476 |
8,229 |
|||
| Eliminations |
|||||
| Revenues |
(1,400) |
(1,211) |
|||
| Earnings from operations before equity in earnings of subsidiaries |
(156) |
(145) |
|||
| Consolidated Results |
|||||
| Revenues |
706,355 |
645,331 |
|||
| Earnings from operations |
133,152 |
105,973 |
|||
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 December 31, |
||||
| 2014 |
2013 |
|||
| (In thousands, except occupancy rate) |
||||
| Room count as of December 31 |
224 |
203 |
||
| Square footage as of December 31 |
19,617 |
17,793 |
||
| Average monthly number of rooms occupied |
180 |
161 |
||
| Average monthly occupancy rate based on room count |
81.1% |
80.0% |
||
| Average monthly square footage occupied |
16,144 |
14,290 |
||
Listed below on a consolidated basis are revenues for our major product lines for the first nine months of fiscal 2015 and 2014
| Nine Months Ended December 31, |
||||
| 2014 |
2013 |
|||
| (Unaudited) |
||||
| (In thousands) |
||||
| Self-moving equipment rentals |
$ |
1,716,424 |
$ |
1,556,787 |
| Self-storage revenues |
155,623 |
133,791 |
||
| Self-moving and self-storage product and service sales |
191,603 |
183,115 |
||
| Property management fees |
18,970 |
17,586 |
||
| Life insurance premiums |
115,997 |
119,708 |
||
| Property and casualty insurance premiums |
35,665 |
31,052 |
||
| Net investment and interest income |
63,654 |
59,836 |
||
| Other revenue |
133,865 |
131,636 |
||
| Consolidated revenue |
2,431,801 |
2,233,511 |
||
Listed below are revenues and earnings from operations at each of our operating segments for the first nine months of fiscal 2015 and 2014. The insurance companies first nine months ended September 30, 2014 and 2013.
| Nine Months Ended December 31, |
||||
| 2014 |
2013 |
|||
| (Unaudited) |
||||
| (In thousands) |
||||
| Moving and storage |
||||
| Revenues |
$ |
2,226,899 |
$ |
2,034,764 |
| Earnings from operations before equity in earnings of subsidiaries |
589,144 |
512,290 |
||
| Property and casualty insurance |
||||
| Revenues |
45,488 |
39,001 |
||
| Earnings from operations |
17,935 |
16,517 |
||
| Life insurance |
||||
| Revenues |
163,120 |
162,604 |
||
| Earnings from operations |
21,582 |
19,831 |
||
| Eliminations |
||||
| Revenues |
(3,706) |
(2,858) |
||
| Earnings from operations before equity in earnings of subsidiaries |
(474) |
(323) |
||
| Consolidated Results |
||||
| Revenues |
2,431,801 |
2,233,511 |
||
| Earnings from operations |
628,187 |
548,315 |
||
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:
| Nine Months Ended December 31, |
||||
| 2014 |
2013 |
|||
| (In thousands, except occupancy rate) |
||||
| Room count as of December 31 |
224 |
203 |
||
| Square footage as of December 31 |
19,617 |
17,793 |
||
| Average monthly number of rooms occupied |
179 |
159 |
||
| Average monthly occupancy rate based on room count |
82.5% |
80.9% |
||
| Average monthly square footage occupied |
15,910 |
14,016 |
||
| AMERCO AND CONSOLIDATED ENTITIES |
||||
| CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
| December 31, |
March 31, |
|||
| 2014 |
2014 |
|||
| (Unaudited) |
||||
| (In thousands) |
||||
| ASSETS |
||||
| Cash and cash equivalents |
$ |
729,023 |
$ |
495,112 |
| Reinsurance recoverables and trade receivables, net |
197,640 |
199,322 |
||
| Inventories, net |
69,817 |
67,020 |
||
| Prepaid expenses |
94,076 |
55,269 |
||
| Investments, fixed maturities and marketable equities |
1,294,568 |
1,138,275 |
||
| Investments, other |
246,766 |
248,850 |
||
| Deferred policy acquisition costs, net |
116,191 |
118,707 |
||
| Other assets |
148,940 |
97,588 |
||
| Related party assets |
148,776 |
169,624 |
||
| 3,045,797 |
2,589,767 |
|||
| Property, plant and equipment, at cost: |
||||
| Land |
457,229 |
405,177 |
||
| Buildings and improvements |
1,641,420 |
1,430,330 |
||
| Furniture and equipment |
344,016 |
322,088 |
||
| Rental trailers and other rental equipment |
428,197 |
373,325 |
||
| Rental trucks |
2,881,051 |
2,610,797 |
||
| 5,751,913 |
5,141,717 |
|||
| Less: Accumulated depreciation |
(1,891,178) |
(1,732,506) |
||
| Total property, plant and equipment |
3,860,735 |
3,409,211 |
||
| Total assets |
$ |
6,906,532 |
$ |
5,998,978 |
| LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
| Liabilities: |
||||
| Accounts payable and accrued expenses |
$ |
353,564 |
$ |
357,954 |
| Notes, loans and leases payable |
2,364,513 |
1,942,359 |
||
| Policy benefits and losses, claims and loss expenses payable |
1,063,986 |
1,082,598 |
||
| Liabilities from investment contracts |
673,051 |
616,725 |
||
| Other policyholders' funds and liabilities |
10,469 |
7,988 |
||
| Deferred income |
14,605 |
31,390 |
||
| Deferred income taxes |
519,936 |
432,596 |
||
| Total liabilities |
5,000,124 |
4,471,610 |
||
| Common stock |
10,497 |
10,497 |
||
| Additional paid-in capital |
449,156 |
444,210 |
||
| Accumulated other comprehensive loss |
(27,357) |
(53,923) |
||
| Retained earnings |
2,152,714 |
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 |
(952) |
(1,219) |
||
| Total stockholders' equity |
1,906,408 |
1,527,368 |
||
| Total liabilities and stockholders' equity |
$ |
6,906,532 |
$ |
5,998,978 |
| AMERCO AND CONSOLIDATED ENTITIES |
||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||
| Quarter Ended December 31, |
||||
| 2014 |
2013 |
|||
| (Unaudited) |
||||
| (In thousands, except share and per share data) |
||||
| Revenues: |
||||
| Self-moving equipment rentals |
$ |
487,415 |
$ |
436,207 |
| Self-storage revenues |
53,503 |
46,120 |
||
| Self-moving and self-storage products and service sales |
49,081 |
47,045 |
||
| Property management fees |
7,497 |
7,133 |
||
| Life insurance premiums |
39,026 |
39,198 |
||
| Property and casualty insurance premiums |
13,584 |
12,219 |
||
| Net investment and interest income |
20,752 |
20,887 |
||
| Other revenue |
35,497 |
36,522 |
||
| Total revenues |
706,355 |
645,331 |
||
| Costs and expenses: |
||||
| Operating expenses |
338,692 |
322,106 |
||
| Commission expenses |
58,439 |
50,679 |
||
| Cost of sales |
30,751 |
28,229 |
||
| Benefits and losses |
40,084 |
38,630 |
||
| Amortization of deferred policy acquisition costs |
4,722 |
4,457 |
||
| Lease expense |
18,705 |
24,468 |
||
| Depreciation, net of (gains) losses on disposals of (($5,444) and ($1,961), respectively) |
81,810 |
70,789 |
||
| Total costs and expenses |
573,203 |
539,358 |
||
| Earnings from operations |
133,152 |
105,973 |
||
| Interest expense |
(25,719) |
(23,607) |
||
| Pretax earnings |
107,433 |
82,366 |
||
| Income tax expense |
(40,893) |
(30,145) |
||
| Earnings available to common shareholders |
$ |
66,540 |
$ |
52,221 |
| Basic and diluted earnings per common share |
$ |
3.40 |
$ |
2.67 |
| Weighted average common shares outstanding: Basic and diluted |
19,590,555 |
19,563,663 |
||
| AMERCO AND CONSOLIDATED ENTITIES |
||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||
| Nine Months Ended December 31, |
||||
| 2014 |
2013 |
|||
| (Unaudited) |
||||
| (In thousands, except share and per share data) |
||||
| Revenues: |
||||
| Self-moving equipment rentals |
$ |
1,716,424 |
$ |
1,556,787 |
| Self-storage revenues |
155,623 |
133,791 |
||
| Self-moving and self-storage products and service sales |
191,603 |
183,115 |
||
| Property management fees |
18,970 |
17,586 |
||
| Life insurance premiums |
115,997 |
119,708 |
||
| Property and casualty insurance premiums |
35,665 |
31,052 |
||
| Net investment and interest income |
63,654 |
59,836 |
||
| Other revenue |
133,865 |
131,636 |
||
| Total revenues |
2,431,801 |
2,233,511 |
||
| Costs and expenses: |
||||
| Operating expenses |
1,085,961 |
1,002,621 |
||
| Commission expenses |
200,939 |
182,068 |
||
| Cost of sales |
112,215 |
98,331 |
||
| Benefits and losses |
120,426 |
119,255 |
||
| Amortization of deferred policy acquisition costs |
13,196 |
14,197 |
||
| Lease expense |
60,950 |
77,293 |
||
| Depreciation, net of (gains) losses on disposals of (($49,944) and ($22,837), respectively) |
209,927 |
191,431 |
||
| Total costs and expenses |
1,803,614 |
1,685,196 |
||
| Earnings from operations |
628,187 |
548,315 |
||
| Interest expense |
(74,744) |
(70,053) |
||
| Fees and amortization on early extinguishment of debt |
(4,081) |
- |
||
| Pretax earnings |
549,362 |
478,262 |
||
| Income tax expense |
(202,101) |
(175,082) |
||
| Earnings available to common shareholders |
$ |
347,261 |
$ |
303,180 |
| Basic and diluted earnings per common share |
$ |
17.73 |
$ |
15.50 |
| Weighted average common shares outstanding: Basic and diluted |
19,584,183 |
19,554,641 |
||
SOURCE AMERCO
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