RENO, Nev., Nov. 5, 2008 (GLOBE 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 second quarter ending September 30, 2008, of $40.6 million, or $2.10 per share, compared with net earnings of $47.2 million, or $2.39 per share, for the same period last year.
For the six-month period ending September 30, 2008, net earnings available to common shareholders were $67.2 million, or $3.47 per share, compared with net earnings of $85.7 million, or $4.32 per share for the same period last year.
"The consumer truck rental market remains tight, however, improvements in utilization of our fleet led to revenue increases during the quarter," stated Joe Shoen, chairman of AMERCO. "Self-storage occupancy is below my expectation. This is a tight market and consumers have choices, we intend to remain their best choice," concluded Shoen.
Highlights of Second-Quarter 2009 Results
* Self-moving equipment rental revenues increased $3.5 million for the second quarter of fiscal 2009 compared with the second quarter of fiscal 2008. The Company also saw increases in total moving transactions as well as utilization with a decreased rental truck fleet compared with the same period last year. * Self-storage revenues for the AMERCO Moving and Storage segment decreased 1.3 percent for the second quarter of fiscal 2009 compared with the same period last year. * The Company nets gains and losses from the disposal of property and equipment against reported depreciation. Included as an offset to total depreciation for the first six months of fiscal 2008 were $10.6 million of gains on the sale of real estate. There were no similar gains during the first six months of fiscal 2009. * Net losses on the disposal of equipment increased $6.4 million for the second quarter of fiscal 2009 compared with the same period last year. Excluding disposal gains and losses, total depreciation increased $4.2 million for the second quarter of 2009 primarily due to equipment. Additionally, lease expense increased $4.1 million during the same period. * At September 30, 2008 cash, cash equivalents and available credit in the Moving and Storage segment was $413.5 million. Over the next four quarters, the Company has maturities and required principal payments of $126.8 million on loans that were in place as of September 30, 2008.
AMERCO will hold its investor call for the second quarter of fiscal 2009 on Thursday, November 6, 2008, 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 undisputed choice for the do-it-yourself mover, with a network of more than 15,650 locations in all 50 United States and 10 Canadian provinces. U-Haul customers' patronage has enabled the Company to maintain a fleet size of 96,000 trucks, 75,000 trailers and 35,000 towing devices. U-Haul offers more than 391,000 rooms and more than 34 million square feet of storage space at more than 1,075 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.
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 September 30, 2008, 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 2009 and 2008.
Quarter Ended September 30,
---------------------------
2008 2007 (a)
----------- -----------
(Unaudited)
(In thousands)
Revenues
Self-moving equipment rentals $ 439,244 $ 435,786
Self-storage revenues 27,901 33,088
Self-moving & self-storage
products and service sales 58,296 62,554
Property management fees 4,721 3,993
Life insurance premiums 27,099 27,937
Property & casualty insurance premiums 7,359 7,332
Net investment & interest income 14,983 16,373
Other revenue 11,892 9,279
----------- -----------
Consolidated revenues $ 591,495 $ 596,342
(a) The second quarter of fiscal 2008 include SAC Holding II
self-storage revenues of $4.8 million, self-moving and self-storage
products and service sales of $4.3 million and other revenues of $0.1
million.
Listed below are revenues and earnings from operations at each of our operating segments for the second quarter of fiscal 2009 and 2008.
Quarter Ended September 30,
---------------------------
2008 2007
----------- -----------
(Unaudited)
(In thousands)
Moving & storage
Revenues $ 547,978 $ 545,568
Earnings from operations 92,850 104,979
Property and casualty insurance
Revenues 9,685 10,393
Earnings from operations 2,195 3,722
Life insurance
Revenues 34,516 34,460
Earnings from operations 5,341 3,565
SAC Holding II
Revenues -- 12,162
Earnings from operations -- 3,320
Eliminations
Revenues (684) (6,241)
Earnings from operations (4,864) (6,506)
Consolidated results
Revenues 591,495 596,342
Earnings from operations 95,522 109,080
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 for the second quarter of fiscal 2009 and 2008 is as follows:
Quarter Ended September 30,
---------------------------
2008 2007
----------- -----------
(Unaudited)
(In thousands, except
occupancy rate)
Room count as of September 30 391 386
Square footage as of September 30 34,515 34,045
Average number of rooms occupied 326 335
Average occupancy rate based on room count 83.4% 86.8%
Average square footage occupied 29,354 29,912
Listed below on a consolidated basis are revenues for our major product lines for the first six months of fiscal 2009 and 2008.
Six Months Ended
September 30,
---------------------------
2008 2007 (a)
----------- -----------
(Unaudited)
(In thousands)
Revenues
Self-moving equipment rentals $ 829,273 $ 828,303
Self-storage revenues 55,452 65,124
Self-moving & self-storage products and
service sales 120,852 131,209
Property management fees 9,437 7,940
Life insurance premiums 54,016 57,124
Property & casualty insurance premiums 13,483 13,248
Net investment & interest income 29,579 30,687
Other revenue 22,197 16,982
----------- -----------
Consolidated revenues $ 1,134,289 $ 1,150,617
(a) The first six months of fiscal 2008 include SAC Holding II
self-storage revenues of $9.8 million, self-moving and self-
storage products and service sales of $9.0 million and other
revenues of $0.2 million.
Listed below are revenues and earnings from operations at each of our operating segments for the first six months of fiscal 2009 and 2008.
Six Months Ended
September 30,
---------------------------
2008 2007
----------- -----------
(Unaudited)
(In thousands)
Moving & storage
Revenues $ 1,049,519 $ 1,048,165
Earnings from operations 162,536 193,471
Property and casualty insurance
Revenues 18,575 19,409
Earnings from operations 4,400 6,038
Life insurance
Revenues 67,579 70,643
Earnings from operations 9,503 5,882
SAC Holding II
Revenues -- 24,551
Earnings from operations -- 7,075
Eliminations
Revenues (1,384) (12,151)
Earnings from operations (9,255) (11,382)
Consolidated results
Revenues 1,134,289 1,150,617
Earnings from operations 167,184 201,084
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 for the first six months of fiscal 2009 and 2008 is as follows:
Six Months Ended
September 30,
---------------------------
2008 2007
----------- -----------
(Unaudited)
(In thousands, except
occupancy rate)
Room count as of September 30 391 386
Square footage as of September 30 34,515 34,045
Average number of rooms occupied 323 331
Average occupancy rate based on room count 82.9% 86.1%
Average square footage occupied 29,065 29,608
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Sept 30, March 31,
2008 2008
----------- -----------
(Unaudited)
Assets (In thousands)
Cash and cash equivalents $ 363,130 $ 206,622
Reinsurance recoverables and trade
receivables, net 195,315 201,116
Notes and mortgage receivables, net 2,452 2,088
Inventories, net 77,348 65,349
Prepaid expenses 57,923 56,159
Investments, fixed maturities and
marketable equities 567,132 633,784
Investments, other 225,325 185,591
Deferred policy acquisition costs, net 40,143 35,578
Other assets 122,652 131,138
Related party assets 292,259 303,886
----------- -----------
1,943,679 1,821,311
----------- -----------
Property, plant and equipment, at cost:
Land 210,427 208,164
Buildings and improvements 897,714 859,882
Furniture and equipment 319,832 309,960
Rental trailers and other rental
equipment 207,313 205,572
Rental trucks 1,707,517 1,734,425
----------- -----------
3,342,803 3,318,003
Less: Accumulated depreciation (1,308,986) (1,306,827)
----------- -----------
Total property, plant and equipment 2,033,817 2,011,176
----------- -----------
Total assets $ 3,977,496 $ 3,832,487
=========== ===========
Liabilities & stockholders' equity
Liabilities:
Accounts payable & accrued expenses $ 280,620 $ 292,526
AMERCO notes, loans and leases payable 1,575,012 1,504,677
Policy benefits & losses, claims & loss
expenses payable 776,026 789,374
Liabilities from investment contracts 321,839 339,198
Other policyholders' funds &
liabilities 10,300 10,467
Deferred income 12,266 11,781
Deferred income taxes 169,621 126,033
----------- -----------
Total liabilities 3,145,684 3,074,056
----------- -----------
Stockholders' equity:
Common stock 10,497 10,497
Additional paid-in capital 420,151 419,370
Accumulated other comprehensive loss (49,819) (55,279)
Retained earnings 982,583 915,415
Cost of common shares in treasury, net (525,336) (524,677)
Unearned employee stock ownership plan
shares (6,264) (6,895)
----------- -----------
Total stockholders' equity 831,812 758,431
----------- -----------
Total liabilities & stockholders' equity $ 3,977,496 $ 3,832,487
=========== ===========
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter Ended September 30,
2008 2007
----------- -----------
(Unaudited)
(In thousands, except share
and per share amounts)
Revenues:
Self-moving equipment rentals $ 439,244 $ 435,786
Self-storage revenues 27,901 33,088
Self-moving and self-storage products
and service sales 58,296 62,554
Property management fees 4,721 3,993
Life insurance premiums 27,099 27,937
Property and casualty insurance
premiums 7,359 7,332
Net investment and interest income 14,983 16,373
Other revenue 11,892 9,279
----------- -----------
Total revenues 591,495 596,342
----------- -----------
Costs and expenses:
Operating expenses 274,288 284,857
Commission expenses 54,082 49,481
Cost of sales 32,642 33,943
Benefits and losses 27,673 25,592
Amortization of deferred policy
acquisition costs 2,338 3,266
Lease expense 38,516 34,377
Depreciation, net of (gains) losses on
disposals 66,434 55,746
----------- -----------
Total costs and expenses 495,973 487,262
----------- -----------
Earnings from operations 95,522 109,080
Interest expense (24,930) (27,449)
----------- -----------
Pretax earnings 70,592 81,631
Income tax expense (26,768) (31,157)
----------- -----------
Net earnings 43,824 50,474
Less: Preferred stock dividends (3,241) (3,241)
----------- -----------
Earnings available to common
shareholders $ 40,583 $ 47,233
=========== ===========
Basic and diluted earnings per common
share $ 2.10 $ 2.39
=========== ===========
Weighted average common shares
outstanding:
Basic and diluted 19,351,322 19,733,755
=========== ===========
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Six Months Ended
September 30,
2008 2007
----------- -----------
(Unaudited)
(In thousands, except share
and per share amounts)
Revenues:
Self-moving equipment rentals $ 829,273 $ 828,303
Self-storage revenues 55,452 65,124
Self-moving and self-storage products
and service sales 120,852 131,209
Property management fees 9,437 7,940
Life insurance premiums 54,016 57,124
Property and casualty insurance
premiums 13,483 13,248
Net investment and interest income 29,579 30,687
Other revenue 22,197 16,982
----------- -----------
Total revenues 1,134,289 1,150,617
----------- -----------
Costs and expenses:
Operating expenses 533,559 558,058
Commission expenses 102,047 93,785
Cost of sales 67,627 68,591
Benefits and losses 54,990 54,869
Amortization of deferred policy
acquisition costs 4,426 7,183
Lease expense 73,084 67,036
Depreciation, net of (gains) losses on
disposals 131,372 100,011
----------- -----------
Total costs and expenses 967,105 949,533
----------- -----------
Earnings from operations 167,184 201,084
Interest expense (48,774) (51,165)
----------- -----------
Pretax earnings 118,410 149,919
Income tax expense (44,760) (57,693)
----------- -----------
Net earnings 73,650 92,226
Less: Preferred stock dividends (6,482) (6,482)
----------- -----------
Earnings available to common
shareholders $ 67,168 $ 85,744
=========== ===========
Basic and diluted earnings per common
share $ 3.47 $ 4.32
=========== ===========
Weighted average common shares
outstanding:
Basic and diluted 19,346,943 19,850,874
=========== ===========
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended
September 30,
2008 2007
----------- -----------
(Unaudited)
(In thousands)
Cash flow from operating activities:
Net earnings $ 73,650 $ 92,226
Adjustments to reconcile net earnings
to cash provided by operations:
Depreciation 121,920 113,194
Amortization of deferred policy
acquisition costs 4,426 7,183
Change in allowance for losses on trade
receivables (29) 87
Change in allowance for losses on
mortgage notes (59) (19)
Change in allowance for inventory
reserves 3,603 1,281
Net (gain) loss on sale of real and
personal property 9,452 (13,183)
Net loss on sale of investments 1 149
Deferred income taxes 48,993 33,966
Net change in other operating assets
and liabilities:
Reinsurance recoverables and trade
receivables 5,831 (5,154)
Inventories (15,602) 3,181
Prepaid expenses 8,872 4,120
Capitalization of deferred policy
acquisition costs (4,887) (2,539)
Other assets 8,835 (10,373)
Related party assets 11,249 41,881
Accounts payable and accrued expenses (16,199) 13,497
Policy benefits and losses, claims
and loss expenses payable (12,817) 5,066
Other policyholders' funds and
liabilities (746) 211
Deferred income 539 (1,673)
Related party liabilities (1,639) (3,411)
----------- -----------
Net cash provided by operating activities 245,393 279,690
----------- -----------
Cash flows from investing activities
Purchases of:
Property, plant and equipment (224,996) (360,511)
Short term investments (216,353) (128,627)
Fixed maturities investments (115,124) (45,622)
Preferred stock (2,001) --
Real estate (350) (3,441)
Mortgage loans (9,311) (4,895)
Proceeds from sale of:
Property, plant and equipment 80,805 100,660
Short term investments 182,399 144,814
Fixed maturities investments 173,670 61,206
Equity securities 27 46
Preferred stock -- 2,625
Real estate 704 153
Mortgage loans 2,822 4,043
Payments from notes and mortgage
receivables 63 367
----------- -----------
Net cash used by investing activities (127,645) (229,182)
----------- -----------
Cash flows from financing activities:
Borrowings from credit facilities 135,330 447,620
Principal repayments on credit
facilities (74,320) (179,043)
Debt issuance costs (360) (9,850)
Capital lease payments (348) --
Leveraged Employee Stock Ownership
Plan-repayments from loan 631 608
Treasury stock repurchases (659) (33,966)
Securitization deposits -- (116,176)
Preferred stock dividends paid (6,482) (6,482)
Net dividend from related party 2,010 --
Investment contract deposits 9,561 8,772
Investment contract withdrawals (26,921) (34,032)
----------- -----------
Net cash provided by financing
activities 38,442 77,451
----------- -----------
Effects of exchange rate on cash 318 113
----------- -----------
Increase in cash equivalents 156,508 128,072
Cash and cash equivalents at the
beginning of period 206,622 75,272
----------- -----------
Cash and cash equivalents at the end of
period $ 363,130 $ 203,344
=========== ===========