RENO, Nev., Aug. 6, 2008 (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, 2008, of $ 26.6 million, or $1.37 per share, compared with net earnings of $38.5 million, or $1.93 per share, for the same period last year.
"Introduction of more new small trucks remains behind schedule due to a strike affecting our supplier. This has lowered our revenue for the quarter and the year," stated Joe Shoen, Chairman of AMERCO. "This year is likely going to be another tight one for consumer truck rentals."
Highlights of First Quarter 2009 Results
* Self-moving equipment rental revenue decreased 0.6% for the first quarter of fiscal 2009 compared with the first quarter of fiscal 2008. The average size of the rental truck fleet during the quarter declined compared with the same period last year; this was largely offset by improvements in utilization. The negative pricing trend we have been experiencing continues to moderate.
* Self-storage revenues for AMERCO's Moving and Storage segment increased 1.9% for the first quarter of fiscal 2009 compared with the first quarter of fiscal 2008.
* The Company nets gains and losses from the disposal of property and equipment against depreciation. Included as an offset to total depreciation for the first quarter of fiscal 2008 was a $10 million gain on the sale of real estate. There was no similar gain in the first quarter of fiscal 2009. Excluding this gain, total depreciation increased $10.7 million primarily due to equipment. Additionally, lease expense increased $1.7 million during the same period. The Company was able to offset a portion of these increases in fleet-related costs through reductions in maintenance and repair costs resulting from the newer fleet.
* Earnings from operations at the insurance companies improved $1.4 million for the first quarter of fiscal 2009 compared with the first quarter of fiscal 2008.
* Net cash provided by operating activities increased $14.5 million for the first quarter of fiscal 2009 compared with the first quarter of fiscal 2008.
AMERCO will hold its investor call for the first quarter of fiscal 2009 on Thursday, August 7, 2008, at 8 a.m. Pacific Time (11 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 390,000 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 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, 2008, 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 2009 and fiscal 2008.
Quarter Ended June 30,
-------------------
2008 2007
-------- --------
(Unaudited)
(In thousands)
Revenues
Self-moving equipment rentals $390,029 $392,517
Self-storage revenues 27,551 32,036
Self-moving & self-storage
products and service sales 62,556 68,655
Property management fees 4,716 3,947
Life insurance premiums 26,917 29,187
Property & casualty insurance premiums 6,124 5,916
Net investment & interest income 14,596 14,314
Other revenue 10,305 7,703
-------- --------
Consolidated revenues $542,794 $554,275
Listed below are revenues and earnings from operations at each of our operating segments for the first quarter of fiscal 2009 and fiscal 2008.
Quarter Ended June 30,
----------------------
2008 2007
--------- ---------
(Unaudited)
(In thousands)
Moving & storage
Revenues $501,541 $502,597
Earnings from operations 69,686 88,492
Property and casualty insurance
Revenues 8,890 9,016
Earnings from operations 2,205 2,316
Life insurance
Revenues 33,063 36,183
Earnings from operations 4,162 2,317
SAC Holding II
Revenues -- 12,389
Earnings from operations -- 3,755
Eliminations
Revenues (700) (5,910)
Earnings from operations (4,391) (4,876)
Consolidated results
Revenues 542,794 554,275
Earnings from operations 71,662 92,004
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,
-----------------------
2008 2007
---------- ----------
(Unaudited)
(In thousands, except
occupancy rate)
Room count as of June 30 390 384
Square footage as of June 30 34,403 33,846
Average number of rooms occupied 320 328
Average occupancy rate based on room count 82.3% 85.5%
Average square footage occupied 28,775 29,304
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, March 31,
2008 2008
---------- ----------
(Unaudited)
(In thousands)
Assets:
Cash and cash equivalents $ 239,792 $ 206,622
Reinsurance recoverables and trade
receivables, net 207,644 201,116
Notes and mortgage receivables, net 2,299 2,088
Inventories, net 71,075 65,349
Prepaid expenses 62,929 56,159
Investments, fixed maturities and
marketable equities 567,532 633,784
Investments, other 247,988 185,591
Deferred policy acquisition costs, net 33,520 35,578
Other assets 130,686 131,138
Related party assets 296,966 303,886
---------- ----------
Total 1,860,431 1,821,311
---------- ----------
Property, plant and equipment, at cost:
Land 208,391 208,164
Buildings and improvements 884,312 859,882
Furniture and equipment 320,615 309,960
Rental trailers and other
rental equipment 208,826 205,572
Rental trucks 1,712,246 1,734,425
---------- ----------
Subtotal 3,334,390 3,318,003
Less: Accumulated depreciation (1,315,430) (1,306,827)
---------- ----------
Total property, plant and
equipment 2,018,960 2,011,176
---------- ----------
Total assets $3,879,391 $3,832,487
========== ==========
Liabilities & stockholders' equity
Liabilities:
Accounts payable & accrued expenses $ 299,137 $ 292,526
AMERCO's notes, loans and
leases payable 1,492,755 1,504,677
Policy benefits & losses, claims
& loss expenses payable 785,252 789,374
Liabilities from investment contracts 328,628 339,198
Other policyholders' funds
& liabilities 9,645 10,467
Deferred income 16,787 11,781
Deferred income taxes 146,338 126,033
---------- ----------
Total liabilities 3,078,542 3,074,056
---------- ----------
Stockholders' equity:
Series A common stock -- --
Common stock 10,497 10,497
Additional paid-in capital 419,833 419,370
Accumulated other comprehensive loss (40,224) (55,279)
Retained earnings 942,000 915,415
Cost of common shares in treasury, net (524,677) (524,677)
Unearned employee stock ownership
plan shares (6,580) (6,895)
---------- ----------
Total stockholders' equity 800,849 758,431
---------- ----------
Total liabilities & stockholders' equity $3,879,391 $3,832,487
========== ==========
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter Ended June 30,
2008 2007
---------- ----------
(Unaudited)
(In thousands, except share
and per share amounts)
Revenues:
Self-moving equipment rentals $ 390,029 $ 392,517
Self-storage revenues 27,551 32,036
Self-moving and self-storage products
and service sales 62,556 68,655
Property management fees 4,716 3,947
Life insurance premiums 26,917 29,187
Property and casualty insurance premiums 6,124 5,916
Net investment and interest income 14,596 14,314
Other revenue 10,305 7,703
---------- ----------
Total revenues 542,794 554,275
---------- ----------
Costs and expenses:
Operating expenses 259,271 273,201
Commission expenses 47,965 44,304
Cost of sales 34,985 34,648
Benefits and losses 27,317 29,277
Amortization of deferred policy
acquisition costs 2,088 3,917
Lease expense 34,568 32,659
Depreciation, net of (gains) losses
on disposals 64,938 44,265
---------- ----------
Total costs and expenses 471,132 462,271
---------- ----------
Earnings from operations 71,662 92,004
Interest expense (23,844) (23,716)
---------- ----------
Pretax earnings 47,818 68,288
Income tax expense (17,992) (26,536)
---------- ----------
Net earnings 29,826 41,752
Less: Preferred stock dividends (3,241) (3,241)
---------- ----------
Earnings available to common shareholders $ 26,585 $ 38,511
========== ==========
Basic and diluted earnings per common share $ 1.37 $ 1.93
========== ==========
Weighted average common shares outstanding:
Basic and diluted 19,343,184 19,937,152
========== ==========