RENO, Nev., June 6, 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 that net earnings available to common shareholders for the year ended March 31, 2007 were $77.6 million, or $3.72 per share, compared with net earnings of $108.2 million, or $5.19 per share for the same period last year. Included in the fiscal 2007 results is a nonrecurring after-tax charge of $0.20 per share related to the Company's second quarter fiscal 2007 refinancing and included in the fiscal 2006 results is a nonrecurring after-tax charge of $1.08 per share associated with the Company's first quarter fiscal 2006 refinancing. Taking into account the refinancing costs, adjusted earnings per share were $3.92 for fiscal 2007 compared with $6.27 for fiscal 2006.
For the quarter ending March 31, 2007, the company reported a net loss to common shareholders of $18.9 million, or $0.89 per share, compared with a net loss of $1.4 million, or $0.07 per share for the same period last year.
"While earnings have been negatively impacted by general softness in our one-way truck pricing, we believe the Company is on the proper course to better serve our customers," stated Joe Shoen, chairman of AMERCO. "We expect to continue to purchase new equipment and add storage capacity in fiscal 2008. Our confidence in the future is clearly reflected in the common stock repurchase program," Shoen concluded.
Highlights of Full-Year and Fourth-Quarter 2007 Results
* The Company added over 22,500 new trucks and nearly 2,000 new trailers to our existing rental fleet in fiscal 2007. As these new trucks were added, older trucks were rotated out of the fleet. The Company currently has plans for acquiring approximately 21,000 new rental trucks into the fleet for fiscal 2008. * On June 1, 2007 a subsidiary of the Company completed a $303.6 million truck securitized financing. The Company believes that this is one of the first truck-fleet term ABS transactions to be completed in the United States where rental trucks have been the primary collateral. * As part of our program to minimize financing costs (including current taxes) approximately 70 percent measured on the cost of these new trucks were purchased as opposed to leased. Accelerated depreciation has the effect of increasing depreciation charges in the earlier years of ownership. Depreciation expense on rental equipment, before gains and losses on sales, increased $14.9 million for the fourth quarter of fiscal 2007 compared with the fourth quarter of fiscal 2006, and $51.2 million for fiscal 2007 compared with fiscal 2006. * The Company's Board authorized a stock repurchase of up to $115 million of Common Stock. As of March 31, 2007 the Company repurchased 739,291 shares at a cost of $49.1 million. Per the terms of the stock repurchase plan, the Company may continue to repurchase shares through October 31, 2007 or until total purchases reach $115 million. * The Company finished fiscal 2007 with a 1.8% decrease in Self- moving equipment rental revenues compared with fiscal 2006 and a 2.2% decrease in the fourth quarter of fiscal 2007 compared with the fourth quarter of fiscal 2006. Average revenue per transaction for one-way moves, lower than expected utilization, and a shortage of mid-size trucks during the spring and summer months of fiscal 2007 account for the majority of the decrease. Offsetting these negative factors are increases in one-way transactions along with increases in the average inventory of the rental truck fleet. * The Company has added to its owned and managed self-storage portfolio through the acquisition of new facilities and the expansion of existing facilities, adding nearly 490,000 square feet and over 5,200 rooms in fiscal 2007. * Earnings from operations at the insurance companies improved $5.2 million for fiscal 2007 compared with fiscal 2006 and $0.5 million for the fourth quarter of fiscal 2007 compared with fiscal 2006.
Fiscal 2008 Outlook
We are continuing to implement programs today that we believe will benefit us in the coming years. Our continued investment in the rotation of fleet will position us well for years to come. Our goals are to increase transaction volume, improve pricing, fine tune product mix and maximize utilization for self-moving equipment rentals. The Company remains committed to expanding its self-storage presence through direct investment in new properties, locations, and build-outs along with partnering with other operators as part of the eMove program.
AMERCO will hold its investor call for the fiscal year 2007 on Thursday, June 7, 2007, 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.
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.
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 383,000 rooms and more than 33.7 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-K for the year ended March 31, 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 fourth quarter and the full year of fiscal 2007 and fiscal 2006.
Quarter Ended Twelve Months Ended
Mar. 31, Mar. 31,
2007 2006 2007 2006
------------------- ----------------------
(In thousands)
Self-moving equipment
rentals $295,476 $302,195 $1,476,579 $1,503,569
Self-storage revenues 31,812 29,966 126,424 119,742
Self-moving and
self-storage products
and service sales 49,004 47,350 224,722 223,721
Property management
fees 7,407 8,637 21,154 21,195
Life insurance
premiums 28,906 28,783 120,399 118,833
Property & casualty
insurance premiums 5,928 5,829 24,335 26,001
Net investment &
interest income 18,336 14,221 61,093 53,094
Other revenue 8,328 9,001 30,891 40,471
------------------- ----------------------
Consolidated revenue 445,197 445,982 2,085,597 2,106,626
=================== ======================
Listed below are revenues and earnings from operations at each of our four operating segments for the fourth quarter and the full year of fiscal 2007 and fiscal 2006.
Quarter Ended Twelve Months Ended
Mar. 31, Mar. 31,
2007 2006 2007 2006
------------------- ----------------------
Moving and storage (In thousands)
Revenues $390,908 $395,797 $1,875,860 $1,900,468
Earnings (loss) from
operations (15,326) 16,547 217,937 292,774
Property and casualty
insurance
Revenues 9,491 8,165 38,486 37,358
Earnings (loss) from
operations 1,638 (583) 5,741 1,144
Life insurance
Revenues 36,117 36,673 148,820 148,080
Earnings from
operations 2,834 4,576 14,521 13,933
SAC Holding II
Revenues 10,779 10,698 46,603 46,239
Earnings from
operations 2,581 2,913 13,854 13,643
Eliminations
Revenues (2,098) (5,351) (24,172) (25,519)
Earnings from
operations (501) (4,289) (16,505) (16,113)
Consolidated results
Revenues 445,197 445,982 2,085,597 2,106,626
Earnings (loss) from
operations (8,774) 19,164 235,548 305,381
AMERCO AND CONSOLIDATED ENTITIES
CONSOLIDATED BALANCE SHEETS
Mar. 31, Mar. 31,
2007 2006
---------- -----------
Assets (In thousands)
Cash and cash equivalents $ 75,272 $ 155,459
Reinsurance recoverables & trade
receivables, net 184,617 230,179
Notes and mortgage receivables, net 1,669 2,532
Inventories, net 67,023 64,919
Prepaid expenses 52,080 53,262
Investments, fixed maturities 681,801 695,958
Investments, other 178,699 209,361
Deferred policy acquisition costs, net 44,514 47,821
Other assets 95,123 102,094
Related party assets 245,179 270,468
---------- -----------
Total 1,625,977 1,832,053
---------- -----------
Property, plant and equipment, at cost;
Land 202,917 175,785
Buildings and improvements 802,289 739,603
Furniture and equipment 301,751 281,371
Rental trailers and other rental
equipment 200,208 201,273
Rental trucks 1,604,123 1,331,891
SAC Holding II - PP&E 80,349 79,217
---------- -----------
Subtotal 3,191,637 2,809,140
Less: Accumulated depreciation (1,294,566) (1,273,975)
---------- -----------
Total property, plant and equipment 1,897,071 1,535,165
---------- -----------
Total assets $3,523,048 $3,367,218
========== ===========
Liabilities & stockholders' equity
Liabilities:
Accounts payable & accrued expenses $ 251,197 $ 235,878
AMERCO notes and loans payable 1,181,165 965,634
SAC Holding II notes & loans payable 74,887 76,232
Policy benefits & losses, claims & loss
expenses payable
768,751 800,413
Liabilities from investment contracts 386,640 449,149
Other policyholders' funds & liabilities 10,563 7,705
Deferred income 16,478 21,346
Deferred income taxes 113,170 108,092
Related party liabilities 2,099 7,165
---------- -----------
Total liabilities 2,804,950 2,671,614
---------- -----------
Stockholders' Equity:
Series A common stock -- 929
Common stock 10,497 9,568
Additional paid-in-capital 375,412 367,655
Accumulated other comprehensive loss (41,779) (28,902)
Retained earnings 849,300 773,784
Cost of common shares in treasury, net (467,198) (418,092)
Unearned employee stock ownership
plan shares (8,134) (9,338)
---------- -----------
Total stockholders' equity 718,098 695,604
---------- -----------
Total liabilities & stockholders'
equity $3,523,048 $ 3,367,218
========== ===========
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter Ended March 31,
2007 2006
---------- ----------
(In thousands, except
share and per share amounts)
Revenues:
Self-moving equipment rentals $ 295,476 $ 302,195
Self-storage revenues 31,812 29,966
Self-moving and self-storage products and
service sales 49,004 47,350
Property management fees 7,407 8,637
Life insurance premiums 28,906 28,783
Property and casualty insurance premiums 5,928 5,829
Net investment and interest income 18,336 14,221
Other revenue 8,328 9,001
---------- ----------
Total revenues 445,197 445,982
Costs and expenses:
Operating expenses 266,819 253,129
Commission expenses 34,551 36,338
Cost of sales 28,914 27,798
Benefits and losses 27,816 27,935
Amortization of deferred policy
acquisition costs 2,467 6,455
Lease expense 36,949 35,726
Depreciation, net 56,455 39,437
---------- ----------
Total costs and expenses 453,971 426,818
---------- ----------
Earnings (loss) from operations (8,774) 19,164
Interest expense (21,100) (16,809)
---------- ----------
Pretax earnings (loss) (29,874) 2,355
Income tax (expense)/benefit 14,214 (555)
---------- ----------
Net earnings (loss) (15,660) 1,800
Less: Preferred stock dividends (3,240) (3,240)
---------- ----------
Loss available to common shareholders $ (18,900) $ (1,440)
========== ==========
Basic and diluted loss per common share $ (0.89) $ (0.07)
========== ==========
Weighted average common shares outstanding:
Basic and diluted shares 20,682,087 20,887,258
========== ==========
AMERCO AND CONSOLIDATED ENTITIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Twelve Months Ended March 31,
2007 2006
---------- ----------
(In thousands, except
share and per share amounts)
Revenues:
Self-moving equipment rentals $ 1,476,579 $ 1,503,569
Self-storage revenues 126,424 119,742
Self-moving and self-storage products
and service sales
224,722 223,721
Property management fees 21,154 21,195
Life insurance premiums 120,399 118,833
Property and casualty insurance premiums 24,335 26,001
Net investment and interest income 61,093 53,094
Other revenue 30,891 40,471
---------- ----------
Total revenues 2,085,597 2,106,626
Costs and expenses:
Operating expenses 1,080,897 1,080,990
Commission expenses 177,008 180,101
Cost of sales 117,648 113,135
Benefits and losses 118,725 117,160
Amortization of deferred policy
acquisition costs 17,138 24,261
Lease expense 149,044 142,781
Depreciation, net 189,589 142,817
---------- ----------
Total costs and expenses 1,850,049 1,801,245
---------- ----------
Earnings from operations 235,548 305,381
Interest expense (82,756) (69,481)
Fees on early extinguishment of debt (6,969) (35,627)
---------- ----------
Pretax earnings 145,823 200,273
Income tax expense (55,270) (79,119)
---------- ----------
Net earnings 90,553 121,154
Less: Preferred stock dividends (12,963) (12,963)
---------- ----------
Earnings available to common shareholders $ 77,590 $ 108,191
========== ==========
Basic and diluted earnings per
common share $ 3.72 $ 5.19
========== ==========
Weighted average common shares
outstanding:
Basic and diluted shares 20,838,570 20,857,108
========== ==========
NON-GAAP FINANCIAL RECONCILIATION SCHEDULE
Year Ended
March 31, 2007
---------------
(In thousands, except share and per share amounts)
AMERCO and Consolidated Entities
Earnings per common share basic and diluted $ 3.72
Non-recurring refinancing charges, net of taxes 0.20
---------------
Earnings per common share basic and diluted
before non-recurring refinancing charges $ 3.92
===============
Nonrecurring fees on early extinguishment of debt $ (6,969)
Income tax benefit 2,718
---------------
Nonrecurring fees on early extinguishment of debt,
net of taxes $ (4,251)
===============
Non recurring fees on early extinguishment of debt,
net of taxes, per common
share basic and diluted $ (0.20)
===============
Weighted average shares outstanding:
basic and diluted 20,838,570
===============
Year Ended
March 31, 2006
---------------
(In thousands, except share and per share amounts)
AMERCO and Consolidated Entities
Earnings per common share basic and diluted $ 5.19
Non-recurring refinancing charges, net of taxes 1.08
---------------
Earnings per common share basic and diluted
before non-recurring refinancing charges $ 6.27
===============
(35,627)
Nonrecurring fees on early extinguishment of debt
Income tax benefit $ 13,101
--------------
Nonrecurring fees on early extinguishment of debt,
net of taxes (22,526)
---------------
Non recurring fees on early extinguishment of debt,
net of taxes, per common share basic and diluted $ (1.08)
===============
Weighted average shares outstanding:
basic and diluted
$ 20,857,108
===============