RENO, Nev., Aug. 8, 2007 (PRIME NEWSWIRE) -- 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 first quarter ending June 30, 2007, of $38.5 million, or $1.93 per share, compared with net earnings of $52.2 million, or $2.50 per share, for the same period last year.
"Our team is focused on improving operations for future growth and profitability. We have implemented a rate system as well as a new repair diagnostic system. We expect to see a positive impact from both of these initiatives. I am obviously disappointed with the results for the quarter. Self-storage continues on plan through expansion at existing locations, development of new properties and growth of our self-storage affiliate program," stated Joe Shoen, chairman of AMERCO.
Highlights of First Quarter 2008 Results
-- Self-moving equipment rental revenue decreased 2.7 percent for
the first quarter of fiscal 2008 compared with the first quarter
of fiscal 2007. An increase in total moving transactions was
offset by continuing negative-pricing trends for one-way moves.
-- During the quarter more than 9,000 rental trucks were placed in
service along with nearly 1,000 towing devices. The Company
continues to remove older model rental trucks through its fleet
sales program.
-- A negative earnings effect resulting from the Company's decision
to purchase the majority of its new rental equipment in lieu of
leasing continues to be seen. Depreciation on rental equipment
increased $14.4 million for the first quarter of fiscal 2008
compared with the first quarter of fiscal 2007.
-- Included as an offset to the total depreciation expense for the
first quarter of fiscal 2008 is a $10 million gain on the sale of
real estate.
-- Self-storage revenues increased $1.6 million or 5.3 percent for
the first quarter of fiscal 2008 compared with the first quarter
of fiscal 2007 due to improved pricing at selected locations.
Available square footage at Company-owned locations increased
approximately 447,000 square feet this year over the same period
last year.
-- As of June 30, 2007 the Company has repurchased 1,225,290 shares
at a cost of $83.1 million. The Company's Board authorized a
stock repurchase of up to $115 million of Common Stock effective
through October 2007.
-- At June 30, 2007 cash, restricted cash and available credit at
the Moving and Storage segment was $588.3 million. Included in
this amount is $196.3 million of escrowed cash from the first
quarter fleet securitization that will be used to fulfill the
fleet acquisition plan for the remainder of fiscal 2008. This
escrowed cash is reported as Other Assets along with the
corresponding amount in Notes Payable in the Company's June 30,
2007 balance sheet.
AMERCO will hold its investor call for the first quarter of fiscal 2008 on Thursday, August 9, 2007, at 8:30 a.m. Pacific Time (11:30 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.
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 undisputed choice for the do-it-yourself mover, with a network of more than 15,950 locations in all 50 United States and 10 Canadian provinces. U-Haul customers' patronage has enabled the U-Haul fleet to grow to more than 100,000 trucks, 78,500 trailers and 31,100 towing devices. As a result, U-Haul offers more than 384,000 rooms and more than 33.8 million square feet of storage space at more than 1,055 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 retailer of propane.
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 June 30, 2007, which is on file with the SEC.
Report on Business Operations
Listed on a consolidated basis are revenues for our major product
lines for the first quarter of fiscal 2008 and fiscal 2007.
Quarter Ended June 30,
------------------------
2007 2006
--------- ---------
(Unaudited)
(In thousands)
Revenues
Self-moving equipment rentals $ 396,136 $ 407,234
Self-storage revenues 32,036 30,431
Self-moving &
self-storage products and service
sales 68,655 67,451
Property management fees 3,947 3,847
Life insurance premiums 29,187 30,919
Property & casualty insurance premiums 5,916 5,382
Net investment & interest income 14,369 13,475
Other revenue 7,912 7,933
--------- ---------
Consolidated revenues $ 558,158 $ 566,672
Listed below are revenues and earnings from operations at each of our
operating segments for the first quarter of fiscal 2008 and fiscal
2007.
Quarter Ended June 30,
------------------------
2007 2006
--------- ---------
(Unaudited)
(In thousands)
Moving & storage
Revenues $ 506,216 $ 514,638
Earnings from operations 88,492 106,921
Property and casualty insurance
Revenues 9,016 8,068
Earnings from operations 2,316 1,701
Life insurance
Revenues 36,183 38,137
Earnings from operations 2,317 1,951
SAC Holding II
Revenues 12,389 12,479
Earnings from operations 3,755 4,123
Eliminations
Revenues (5,646) (6,650)
Earnings from operations (4,821) (4,530)
Consolidated results
Revenues 558,158 566,672
Earnings from operations 92,059 110,166
The Company owns and manages self-storage facilities. Self-storage revenues reported in the consolidated financial statements for Moving and Storage 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 (except for SAC Holding II). Self-storage data for both our owned and managed locations is as follows:
Quarter Ended June 30,
------------------------
2007 2006
--------- ---------
(Unaudited)
(In thousands,
except occupancy rate)
Room count as of June 30 384 379
Square footage as of June 30 33,846 33,335
Average number of rooms occupied 328 330
Average occupancy rate based on
room count 85.5% 87.1%
Average square footage occupied 29,304 29,479
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, March 31,
2007 2007
----------- -----------
(Unaudited)
(In thousands)
Assets:
Cash and cash equivalents $ 161,629 $ 75,272
Reinsurance recoverables and trade
receivables, net 190,885 184,617
Notes and mortgage receivables,
net 2,068 1,669
Inventories, net 64,998 67,023
Prepaid expenses 47,423 52,080
Investments, fixed maturities and
marketable equities 674,036 681,801
Investments, other 170,731 178,699
Deferred policy acquisition
costs, net 40,645 44,514
Other assets 325,493 95,123
Related party assets 240,056 245,179
----------- -----------
Total 1,917,964 1,625,977
----------- -----------
Property, plant and equipment, at cost:
Land 204,704 202,917
Buildings and improvements 817,433 802,289
Furniture and equipment 306,502 301,751
Rental trailers and other rental
equipment 202,341 200,208
Rental trucks 1,725,380 1,604,123
SAC Holding II - PP&E 81,034 80,349
----------- -----------
Subtotal 3,337,394 3,191,637
Less: Accumulated depreciation (1,301,975) (1,294,566)
----------- -----------
Total property, plant and
equipment 2,035,419 1,897,071
----------- -----------
Total assets $ 3,953,383 $ 3,523,048
=========== ===========
Liabilities & stockholders' equity
Liabilities:
Accounts payable & accrued
expenses $ 267,163 $ 251,197
AMERCO's notes and loans payable 1,582,793 1,181,165
SAC Holding II notes & loans
payable, non-recourse to AMERCO 74,545 74,887
Policy benefits & losses, claims
& loss expenses payable 767,246 768,751
Liabilities from investment
contracts 373,632 386,640
Other policyholders' funds &
liabilities 10,697 10,563
Deferred income 16,246 16,478
Deferred income taxes 113,101 113,170
Related party liabilities 2,474 2,099
----------- -----------
Total liabilities 3,207,897 2,804,950
----------- -----------
Stockholders' equity:
Series A common stock -- --
Common stock 10,497 10,497
Additional paid-in capital 376,090 375,412
Accumulated other comprehensive
loss (26,743) (41,779)
Retained earnings 894,637 849,300
Cost of common shares in treasury,
net (501,165) (467,198)
Unearned employee stock ownership
plan shares (7,830) (8,134)
----------- -----------
Total stockholders' equity 745,486 718,098
----------- -----------
Total liabilities & stockholders'
equity $ 3,953,383 $ 3,523,048
=========== ===========
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter Ended June 30,
2007 2006
----------- -----------
(Unaudited)
(In thousands, except share
and per share amounts)
Revenues:
Self-moving equipment rentals $ 396,136 $ 407,234
Self-storage revenues 32,036 30,431
Self-moving and self-storage
products and service sales 68,655 67,451
Property management fees 3,947 3,847
Life insurance premiums 29,187 30,919
Property and casualty insurance
premiums 5,916 5,382
Net investment and interest income 14,369 13,475
Other revenue 7,912 7,933
----------- -----------
Total revenues 558,158 566,672
----------- -----------
Costs and expenses:
Operating expenses 273,331 261,379
Commission expenses 47,923 49,536
Cost of sales 34,648 32,316
Benefits and losses 29,277 30,606
Amortization of deferred policy
acquisition costs 3,917 5,626
Lease expense 32,738 37,372
Depreciation, net of (gains)
losses on disposals 44,265 39,671
----------- -----------
Total costs and expenses 466,099 456,506
----------- -----------
Earnings from operations 92,059 110,166
Interest expense (23,771) (18,462)
----------- -----------
Pretax earnings 68,288 91,704
Income tax expense (26,536) (36,283)
----------- -----------
Net earnings 41,752 55,421
Less: Preferred stock dividends (3,241) (3,241)
----------- -----------
Earnings available to common
shareholders $ 38,511 $ 52,180
=========== ===========
Basic and diluted earnings per
common share $ 1.93 $ 2.50
=========== ===========
Weighted average common shares
outstanding:
Basic and diluted 19,937,152 20,897,688
=========== ===========