RENO, Nev., Aug. 9, 2006 (PRIMEZONE) -- 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, 2006, of $52.2 million, or $2.50 per share, compared with net earnings of $31.8 million, or $1.53 per share, for the same period last year. Included in the results for June 30, 2005 is a nonrecurring after-tax charge of $1.08 per share associated with the Company's first quarter refinancing.
"We have seen improvements in U-Move that are expected to result in revenue gains," stated Joe Shoen, chairman of AMERCO. "We are presently focused on the manufacture of our midsize rental trucks in order to continue to improve service to our customers. Growth in self-storage continues as planned, with the development of existing locations, acquisition of new properties and expansion of the eMove Storage Affiliate Program."
Highlights of First Quarter 2007 Results
-- Gross revenues from the moving and storage business increased
$7.1 million for the first quarter of fiscal 2007 compared with
the first quarter of fiscal 2006
-- In the first quarter, we placed over 3,100 rental trucks in
service, along with 1,700 trailers. Additionally, we have
invested in reimaging portions of the fleet and installing towing
systems on our smaller rental trucks. Aside from these costs,
decreases in repair and maintenance expense for the fleet largely
offset increases in depreciation and lease expense for the
quarter.
-- Self-storage revenues increased $1.7 million or 5.8 percent for
the first quarter of fiscal 2007 compared with the first quarter
of fiscal 2006. Available square footage increased approximately
242,000 square feet this year over last year.
-- In the first quarter of fiscal 2007, the Company entered into two
debt facilities to fund new-truck purchases and one new debt
facility for the development of new storage projects.
AMERCO will hold its investor call for the first quarter fiscal year 2007 on Thursday, August 10, 2006, at 10 a.m. Pacific Time (1 p.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.
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. With a network of over 15,400 locations in all 50 United States and 10 Canadian provinces, the Company has the largest consumer truck-rental fleet in the world, with over 93,000 trucks, 80,675 trailers and 33,500 towing devices.
U-Haul has also been a leader in the storage industry since 1974, with more than 377,000 rooms and approximately 33 million square feet of storage space at nearly 1,050 owned and managed facilities throughout North America.
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, 2006, 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 2007 and fiscal 2006.
Quarter Ended June 30,
---------------------
2006 2005
-------- --------
(Unaudited)
(In thousands)
Revenues
Self-moving equipment rentals $407,234 $401,260
Self-storage revenues 30,431 28,768
Self-moving & self-storage products
and service sales 67,451 66,563
Property management fees 3,847 4,440
Life insurance premiums 30,919 29,589
Property & casualty insurance premiums 5,382 4,824
Net investment & interest income 13,830 13,714
Other revenues 7,933 10,300
-------- --------
Consolidated revenues $567,027 $559,458
Listed below are revenues and earnings from operations at each of our operating segments for the first quarter of fiscal 2007 and 2006.
Quarter Ended June 30,
---------------------
2006 2005
-------- --------
(Unaudited)
(In thousands)
Moving & storage
Revenues $514,638 $507,563
Earnings from operations 106,921 108,965
Property and casualty insurance
Revenues 8,068 8,309
Earnings from operations 1,701 1,582
Life insurance
Revenues 38,137 38,073
Earnings from operations 1,951 3,440
SAC Holding II
Revenues 12,479 12,059
Earnings from operations 4,123 4,051
Eliminations
Revenues (6,295) (6,546)
Earnings from operations (4,530) (5,478)
Consolidated results
Revenues 567,027 559,458
Earnings from operations 110,166 112,560
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,
--------------------------------
2006 2005
----------- -----------
(Unaudited)
(In thousands, except occupancy rate)
Room count as of June 30 379 339
Square footage as of June 30 33,335 28,886
Average number of rooms
occupied 330 295
Average occupancy rate based
on room count 87.1% 86.9%
Average square footage occupied 29,479 25,516
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, March 31,
2006 2006
----------- -----------
(Unaudited)
Assets (In thousands)
Cash and cash equivalents $ 241,858 $ 155,459
Reinsurance recoverables and trade
receivables, net 215,861 230,179
Notes and mortgage receivables, net 2,140 2,532
Inventories, net 68,226 64,919
Prepaid expenses 58,473 53,262
Investments, fixed maturities and
marketable equities 695,923 695,958
Investments, other 184,566 209,361
Deferred policy acquisition costs,
net 52,470 47,821
Other assets 99,978 102,094
Related party assets 252,679 270,468
----------- -----------
Total 1,872,174 1,832,053
----------- -----------
Property, plant and equipment, at cost;
Land 186,252 175,785
Buildings and improvements 760,659 739,603
Furniture and equipment 285,178 281,371
Rental trailers and other rental
equipment 201,129 201,273
Rental trucks 1,401,701 1,331,891
SAC Holding II - PP&E 79,542 79,217
----------- -----------
Subtotal 2,914,461 2,809,140
Less: Accumulated depreciation (1,277,521) (1,273,975)
----------- -----------
Total property, plant and
equipment 1,636,940 1,535,165
----------- -----------
Total assets 3,509,114 3,367,218
=========== ===========
Liabilities & stockholders' equity
Liabilities:
Accounts payable & accrued expenses $ 254,604 $ 235,878
AMERCO notes and loans payable 1,045,638 965,634
SAC Holding II notes & loans
payable, non-recourse to AMERCO 75,918 76,232
Policy benefits & losses, claims
& loss expenses payable 794,572 800,413
Liabilities from investment
contracts 432,557 449,149
Other policyholders' funds &
liabilities 6,580 7,705
Deferred income 23,632 21,346
Deferred income taxes 118,097 108,092
Related party liabilities 3,400 7,165
----------- -----------
Total liabilities 2,754,998 2,671,614
----------- -----------
Stockholders' equity:
Series A common stock 929 929
Common stock 9,568 9,568
Additional paid-in-capital 373,151 367,655
Accumulated other
comprehensive loss (28,351) (28,902)
Retained earnings 825,964 773,784
Cost of common shares in treasury,
net (418,092) (418,092)
Unearned employee stock
ownership plan shares (9,053) (9,338)
----------- -----------
Total stockholders' equity 754,116 695,604
----------- -----------
Total liabilities &
stockholders' equity 3,509,114 3,367,218
=========== ===========
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter Ended June 30,
2006 2005
------------ ------------
(Unaudited)
(In thousands, except share and
per share amounts)
Revenues:
Self-moving equipment rentals $ 407,234 $ 401,260
Self-storage revenues 30,431 28,768
Self-moving and self-storage
products and service sales 67,451 66,563
Property management fees 3,847 4,440
Life insurance premiums 30,919 29,589
Property and casualty insurance
premiums 5,382 4,824
Net investment and interest income 13,830 13,714
Other revenue 7,933 10,300
------------ ------------
Total revenues 567,027 559,458
------------ ------------
Costs and expenses:
Operating expenses 261,379 266,792
Commission expenses 49,536 48,018
Cost of sales 32,316 31,044
Benefits and losses 30,606 27,314
Amortization of deferred policy
acquisition costs 5,626 6,198
Lease expense 37,727 33,295
Depreciation, net of (gains) losses
on disposals 39,671 34,237
------------ ------------
Total costs and expenses 456,861 446,898
------------ ------------
Earnings from operations 110,166 112,560
Interest expense (18,462) (19,636)
Fees on early extinguishment of debt -- (35,627)
------------ ------------
Pretax earnings 91,704 57,297
Income tax expense (36,283) (22,235)
------------ ------------
Net earnings 55,421 35,062
Less: Preferred stock dividends (3,241) (3,241)
------------ ------------
Earnings available to common
shareholders $ 52,180 $ 31,821
============ ============
Basic and diluted earnings per
common share $ 2.50 $ 1.53
============ ============
Weighted average common shares
outstanding:
Basic and diluted 20,897,688 20,836,458
============ ============
NON-GAAP FINANCIAL RECONCILIATION SCHEDULE
Quarter Ended
June 30, 2005
-------------
(In thousands, except share and per share
amounts)
AMERCO and Consolidated Entities
Nonrecurring fees on early
extinguishment of debt $ (35,627)
Income tax benefit 13,109
-------------
Nonrecurring fees on early
extinguishment of debt, net of taxes $ (22,518)
=============
Nonrecurring fees on early
extinguishment of debt, net of taxes, per
common share basic and diluted $ (1.08)
=============
Weighted average shares outstanding:
basic and diluted 20,836,458
=============