RENO, Nev., Nov. 7, 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 second quarter ending September 30, 2007, of $47.2 million, or $2.39 per share, compared with net earnings of $57.3 million, or $2.74 per share, for the same period last year. Included in the results for September 30, 2006 was a nonrecurring after-tax charge of $0.20 per share associated with the Company's second-quarter debt amendment. Taking into account the nonrecurring after-tax charge, adjusted earnings were $2.94 per share for the three months ending September 30, 2006.
For the six-month period ending September 30, 2007, net earnings available to common shareholders were $85.7 million, or $4.32 per share, compared with net earnings of $109.4 million, or $5.23 per share for the same period last year. Included in the results for September 30, 2006, was a nonrecurring after-tax charge of $0.20 per share associated with the Company's second- quarter debt amendment. Taking into account the nonrecurring charge, the adjusted earnings per share were $5.43 for the six months ending September 30, 2006.
"We have seen incremental improvements in one-way pricing and transactions during the quarter. We will continue to strive for further improvements," stated Joe Shoen, chairman of AMERCO. "Self-storage is stable with gains coming from rate rather than occupancy."
Highlights of Second-Quarter 2008 Results
* Self-moving equipment rental revenues decreased 1.3 percent for
the second quarter of fiscal 2008 compared with the second
quarter of fiscal 2007. Total moving transactions increased for
the second quarter of fiscal 2008 compared with the same period
last year. One-way revenue per transaction trends improved during
the quarter but were still below the second quarter of fiscal
2007.
* In the second quarter of fiscal 2008 we placed into service more
than 6,000 new rental trucks and 2,500 towing devices and
trailers.
* Depreciation on rental equipment increased $11.4 million for the
second quarter of fiscal 2008 compared with the second quarter of
fiscal 2007.
* Self-storage revenues increased 2.1 percent for the second
quarter of fiscal 2008 compared with the same period last year
with continued favorable pricing at selected locations. During
the second quarter the Company added more than 1,650 rooms
comprising nearly 200,000 square feet of self-storage space. The
additional rooms were the result of the acquisitions of
independent self-storage locations and the completion of several
expansion projects at existing U-Haul centers.
* At September 30, 2007, cash, restricted cash and available credit
in the Moving and Storage segment was $632.6 million. Included in
this amount is $94.1 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. The
escrowed cash is reported as Other Assets along with the
corresponding amount in Notes Payable in the Company's September
30, 2007 balance sheet.
AMERCO will hold its investor call for the second quarter of fiscal 2008 on Thursday, November 8, 2007, at 8:30 a.m. Mountain Time (10:30 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.
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.
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 first choice of do-it-yourself movers, 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. U-Haul offers more than 386,000 rooms and more than 34 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 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 our Form 10-Q for the quarter ended September 30, 2007, which is on file with the SEC.
Report on Business Operations
Listed below are revenues and earnings from operations at each of our operating segments for the second quarter of fiscal 2008 and 2007; for the insurance companies the second quarter ended June 30, 2007 and 2006.
Quarter Ended Sept 30,
------------------------
2007 2006
---------- ----------
(Unaudited)
(In thousands)
Moving & storage
Revenues $ 549,524 $ 551,821
Earnings from operations 104,979 121,790
Property and casualty insurance
Revenues 10,393 9,260
Earnings from operations 3,722 1,664
Life insurance
Revenues 34,460 38,731
Earnings from operations 3,565 5,403
SAC Holding II
Revenues 12,162 12,535
Earnings from operations 3,320 4,139
Eliminations
Revenues (5,982) (6,094)
Earnings from operations (6,460) (6,743)
Consolidated results
Revenues 600,557 606,253
Earnings from operations 109,126 126,253
Listed below are revenues and earnings from operations at each of our operating segments for the first six months of fiscal 2008 and 2007; for the insurance companies the first six months ended June 30, 2007 and 2006.
Six Months Ended Sept 30,
---------------------------
2007 2006
---------- ----------
(Unaudited)
(In thousands)
Moving & storage
Revenues $ 1,055,740 $ 1,066,459
Earnings from operations 193,471 228,711
Property and casualty insurance
Revenues 19,409 17,328
Earnings from operations 6,038 3,365
Life insurance
Revenues 70,643 76,868
Earnings from operations 5,882 7,354
SAC Holding II
Revenues 24,551 25,014
Earnings from operations 7,075 8,262
Eliminations
Revenues (11,628) (12,744)
Earnings from operations (11,281) (11,273)
Consolidated results
Revenues 1,158,715 1,172,925
Earnings from operations 201,185 236,419
The Company owns and manages self-storage facilities. Self-storage revenues reported in the condensed 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 2008 and 2007 is as follows:
Quarter Ended Sept 30,
------------------------
2007 2006
--------- ---------
(Unaudited)
(In thousands, except
occupancy rate)
Room count as of Sept 30 386 380
Square footage as of Sept 30 34,045 33,471
Average number of rooms occupied 335 337
Average occupancy rate based
on room count 86.8% 88.7%
Average square footage occupied 29,912 30,135
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Sept 30, March 31,
2007 2007
---------- ----------
(Unaudited)
Assets (In thousands)
Cash and cash equivalents $ 203,344 $ 75,272
Reinsurance recoverables and trade
receivables, net 189,869 184,617
Notes and mortgage receivables, net 1,862 1,669
Inventories, net 62,983 67,023
Prepaid expenses 47,487 52,080
Investments, fixed maturities and
marketable equities 656,912 681,801
Investments, other 166,650 178,699
Deferred policy acquisition costs, net 43,887 44,514
Other assets 231,506 95,123
Related party assets 205,849 245,179
----------- -----------
1,810,349 1,625,977
----------- -----------
Property, plant and equipment, at cost:
Land 206,780 202,917
Buildings and improvements 834,331 802,289
Furniture and equipment 313,303 301,751
Rental trailers and other rental
equipment 206,599 200,208
Rental trucks 1,736,826 1,604,123
SAC Holding II - PP&E 81,385 80,349
----------- -----------
3,379,224 3,191,637
Less: Accumulated depreciation (1,310,726) (1,294,566)
----------- -----------
Total property, plant and equipment 2,068,498 1,897,071
----------- -----------
Total assets $ 3,878,847 $ 3,523,048
=========== ===========
Liabilities & stockholders' equity
Liabilities:
Accounts payable & accrued expenses $ 264,876 $ 251,197
AMERCO notes and loans payable 1,452,042 1,181,165
SAC Holding II notes & loans payable,
non-recourse to AMERCO 74,197 74,887
Policy benefits & losses, claims & loss
expenses payable 773,250 768,751
Liabilities from investment contracts 361,380 386,640
Other policyholders' funds &
liabilities 10,774 10,563
Deferred income 14,935 16,478
Deferred income taxes 137,676 113,170
Related party liabilities 2,008 2,099
----------- -----------
Total liabilities $ 3,091,138 $ 2,804,950
----------- -----------
Stockholders' equity:
Common stock 10,497 10,497
Additional paid-in capital 376,661 375,412
Accumulated other comprehensive loss (32,628) (41,779)
Retained earnings 941,870 849,300
Cost of common shares in treasury, net (501,165) (467,198)
Unearned employee stock ownership
plan shares (7,526) (8,134)
----------- -----------
Total stockholders' equity 787,709 718,098
----------- -----------
Total liabilities
& stockholders' equity $ 3,878,847 $ 3,523,048
=========== ===========
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter Ended September 30,
2007 2006
------------- -------------
(Unaudited)
(In thousands, except share
and per share amounts)
Revenues:
Self-moving equipment rentals $ 439,801 $ 445,720
Self-storage revenues 33,088 32,416
Self-moving and self-storage products
and service sales
62,495 61,916
Property management fees 3,993 3,986
Life insurance premiums 27,937 31,120
Property and casualty insurance
premiums 7,332 6,470
Net investment and interest income 16,419 15,626
Other revenue 9,492 8,999
--------- ---------
Total revenues 600,557 606,253
--------- ---------
Costs and expenses:
Operating expenses 284,990 280,808
Commission expenses 53,437 53,605
Cost of sales 33,943 31,448
Benefits and losses 25,592 28,842
Amortization of deferred policy
acquisition costs 3,266 4,825
Lease expense 34,457 37,385
Depreciation, net of (gains) losses
on disposals 55,746 43,087
--------- ---------
Total costs and expenses 491,431 480,000
--------- ---------
Earnings from operations 109,126 126,253
Interest expense (27,495) (21,063)
Amortization of fees on early
extinguishment of debt -- (6,969)
--------- ---------
Pretax earnings 81,631 98,221
Income tax expense (31,157) (37,730)
--------- ---------
Net earnings 50,474 60,491
Less: Preferred stock dividends (3,241) (3,241)
--------- ---------
Earnings available to common
shareholders $ 47,233 $ 57,250
========= =========
Basic and diluted earnings
per common share $ 2.39 $ 2.74
========= =========
Weighted average common
shares outstanding:
Basic and diluted 19,733,755 20,910,204
========== ==========
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Six Months Ended September 30,
2007 2006
---------------- -------------
(Unaudited)
(In thousands, except share
and per share amounts)
Revenues:
Self-moving equipment rentals $ 835,878 $ 852,954
Self-storage revenues 65,124 62,847
Self-moving and self-storage products
and service sales
131,209 129,367
Property management fees 7,940 7,833
Life insurance premiums 57,124 62,039
Property and casualty insurance
premiums 13,248 11,852
Net investment and interest income 30,788 29,101
Other revenue 17,404 16,932
----------- -----------
Total revenues 1,158,715 1,172,925
----------- -----------
Costs and expenses:
Operating expenses 558,321 542,187
Commission expenses 101,360 103,141
Cost of sales 68,591 63,764
Benefits and losses 54,869 59,448
Amortization of deferred policy
acquisition costs 7,183 10,451
Lease expense 67,195 74,757
Depreciation, net of (gains) losses
on disposals 100,011 82,758
----------- -----------
Total costs and expenses 957,530 936,506
----------- -----------
Earnings from operations 201,185 236,419
Interest expense (51,266) (39,525)
Amortization of fees on early
extinguishment of debt -- (6,969)
----------- -----------
Pretax earnings 149,919 189,925
Income tax expense (57,693) (74,013)
----------- -----------
Net earnings 92,226 115,912
Less: Preferred stock dividends (6,482) (6,482)
----------- -----------
Earnings available to common
shareholders $ 85,744 $ 109,430
=========== ===========
Basic and diluted earnings
per common share $ 4.32 $ 5.23
=========== ===========
Weighted average common shares
outstanding:
Basic and diluted 19,850,874 20,903,946
=========== ===========
NON-GAAP FINANCIAL RECONCILIATION SCHEDULE
Quarter Ended
September 30, 2006
------------------
(In thousands, except share and per share amounts)
AMERCO and Consolidated Entities
Amortization of fees on early extinguishment
of debt $ (6,969)
Income tax benefit 2,718
--------
Amortization of fees on early extinguishment
of debt, net of taxes $ (4,251)
--------
Amortization of fees on early extinguishment
of debt, net of taxes, per common share basic
and diluted $ (0.20)
-------
Weighted average shares outstanding:
Basic and diluted 20,910,204
----------
Six Months Ended
September 30, 2006
------------------
(In thousands, except share and per share amounts)
AMERCO and Consolidated Entities
Amortization of fees on early extinguishment
of debt $ (6,969)
Income tax benefit 2,718
--------
Amortization of fees on early extinguishment
of debt, net of taxes $ (4,251)
--------
Amortization of fees on early extinguishment
of debt, net of taxes, per common share basic
and diluted $ (0.20)
--------
Weighted average shares outstanding:
Basic and diluted 20,903,946
----------