RENO, Nev., June 4, 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 that net earnings available to common shareholders for the year ended March 31, 2008 were $54.8 million, or $2.78 per share, compared with net earnings of $77.6 million, or $3.72 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. Taking into account the refinancing costs, adjusted earnings per share were $3.92 for fiscal 2007.
For the quarter ending March 31, 2008, the Company reported a net loss to common shareholders of $17.3 million, or $0.85 per share, compared with a net loss of $18.9 million, or $0.89 per share for the same period last year.
"It remains extremely difficult to achieve increases in truck and trailer transactions or revenue," stated Joe Shoen, chairman of AMERCO. "We rolled out a new proprietary rate system in fiscal 2008; we will continue to learn the system in fiscal 2009. Politics, carbon caps and fuel costs are creating substantial new uncertainties," concluded Shoen.
Highlights of Full-Year and Fourth-Quarter 2008 Results
* Self-moving equipment rentals increased $3.2 million for the fourth quarter fiscal 2008 compared with the fourth quarter fiscal 2007 and finished the full year fiscal 2008 down $11.2 million compared with the full year fiscal 2007. The fourth quarter positive variance is due to the extra day of transactions occurring February 29th. The Company finished fiscal 2008 with a small increase in rental equipment transactions compared with fiscal 2007. Our focus continues on improving utilization of the fleet and revenue per transaction. * During fiscal 2008 U-Haul acquired over 21,000 new trucks. As part of our ongoing fleet renewal and expansion plan, our fiscal 2009 fleet plan includes a similar number of new trucks. Financing for the fiscal 2009 fleet plan is largely complete. * Self-storage revenues for AMERCO's Moving and Storage segment increased 2.6% for the fourth quarter fiscal 2008 compared with the fourth quarter fiscal 2007 and finished the full year fiscal 2008 up 4% compared with the full year fiscal 2007. With our average rooms available for rent increasing 3% and average occupied rooms remaining flat during fiscal 2008, we have an immediate opportunity to improve upon our performance. * Depreciation expense on rental equipment, before gains and losses on sales of such equipment, increased $5 million for the fourth quarter of fiscal 2008 compared with the fourth quarter of fiscal 2007, and $40.5 million for fiscal 2008 compared with fiscal 2007. * Earnings from operations at the insurance companies improved $6.2 million for fiscal 2008 compared with fiscal 2007 and $2.7 million for the fourth quarter fiscal 2008 compared with fiscal 2007. * During the third quarter fiscal 2008 SAC Holding II was deconsolidated from AMERCO's financial statements. As such, SAC Holding II is not included in our March 31, 2008 balance sheet or in our fourth quarter 2008 results. Full year results include seven months of SAC Holding II activity through October 31, 2007. This change was made in accordance with the accounting rules and has an effect on our reported results in comparison with prior periods. However, the deconsolidation has had no effect on the operational or financial relationships existing between the Company and SAC Holding II.
AMERCO will hold its investor call for the fiscal year 2008 on Thursday, June 5, 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.
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 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 387,000 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-K for the year ended March 31, 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 fourth quarter and the full year of fiscal 2008 and fiscal 2007.
Quarter Ended Twelve Months Ended
Mar. 31, Mar. 31,
2008 2007 2008 2007
------------------------------------------------
(In thousands)
Self-moving equipment
rentals $296,052 $292,867 $1,451,292 $1,462,470
Self-storage revenues 27,494 31,812 122,248 126,424
Self-moving and self-
storage products and
service sales 43,378 49,004 217,798 224,722
Property management
fees 7,955 7,407 22,820 21,154
Life insurance
premiums 27,115 28,906 111,996 120,399
Property & casualty
insurance premiums 7,402 5,928 28,388 24,335
Net investment &
interest income 15,278 17,796 62,110 59,696
Other revenue 8,286 8,126 32,522 30,098
----------------------- -----------------------
Consolidated
revenue 432,960 441,846 2,049,174 2,069,298
======================= =======================
Listed below are revenues and earnings (loss) from operations at each of our four operating segments for the fourth quarter and the full year of fiscal 2008 and fiscal 2007.
Quarter Ended Twelve Months Ended
Mar. 31, Mar. 31,
2008 2007 2008 2007
------------------------------------------------
Moving and storage (In thousands)
Revenues $390,622 $388,299 $1,858,230 1,861,751
Earnings (loss) from
operations (5,936) (15,326) 192,970 217,937
Property and casualty
insurance
Revenues 10,177 9,491 40,478 38,486
Earnings from
operations 940 1,638 9,244 5,741
Life insurance
Revenues 32,962 36,117 137,448 148,820
Earnings from
operations 6,273 2,834 17,202 14,521
SAC Holding II
Revenues -- 10,779 28,102 46,603
Earnings from
operations -- 2,581 7,926 13,854
Eliminations
Revenues (801) (2,840) (15,084) (26,362)
Earnings from
operations (7,099) (821) (23,620) (16,825)
Consolidated results
Revenues 432,960 441,846 2,049,174 2,069,298
Earnings (loss)
from operations (5,822) (9,094) 203,722 235,228
AMERCO AND CONSOLIDATED ENTITIES
CONSOLIDATED BALANCE SHEETS
Mar. 31, Mar. 31,
2008 2007
----------- -----------
Assets (In thousands)
Cash and cash equivalents $ 206,622 $ 75,272
Reinsurance recoverables & trade
receivables, net 201,116 184,617
Notes and mortgage receivables, net 2,088 1,669
Inventories, net 65,349 67,023
Prepaid expenses 56,159 52,080
Investments, fixed maturities and
marketable equities 633,784 681,801
Investments, other 185,591 178,699
Deferred policy acquisition costs, net 35,578 44,514
Other assets 131,138 95,123
Related party assets 303,886 245,179
----------- -----------
Total 1,821,311 1,625,977
----------- -----------
Property, plant and equipment, at cost:
Land 208,164 202,917
Buildings and improvements 859,882 802,289
Furniture and equipment 309,960 301,751
Rental trailers and other rental equipment 205,572 200,208
Rental trucks 1,734,425 1,604,123
SAC Holding II - PP&E -- 80,349
----------- -----------
Subtotal 3,318,003 3,191,637
Less: Accumulated depreciation (1,306,827) (1,294,566)
----------- -----------
Total property, plant and equipment 2,011,176 1,897,071
----------- -----------
Total assets $ 3,832,487 $ 3,523,048
=========== ===========
Liabilities & stockholders' equity
Liabilities:
Accounts payable & accrued expenses $ 292,526 $ 251,197
AMERCO's notes and loans payable 1,504,677 1,181,165
SAC Holding II notes & loans payable,
non-recourse to AMERCO -- 74,887
Policy benefits & losses, claims & loss
expenses payable 789,374 768,751
Liabilities from investment contracts 339,198 386,640
Other policyholders' funds & liabilities 10,467 10,563
Deferred income 11,781 16,478
Deferred income taxes 126,033 113,170
Related party liabilities -- 2,099
----------- -----------
Total liabilities 3,074,056 2,804,950
----------- -----------
Stockholders' equity:
Common stock 10,497 10,497
Additional paid-in capital 419,370 375,412
Accumulated other comprehensive loss (55,279) (41,779)
Retained earnings 915,415 849,300
Cost of common shares in treasury, net (524,677) (467,198)
Unearned employee stock ownership plan
shares (6,895) (8,134)
----------- -----------
Total stockholders' equity 758,431 718,098
----------- -----------
Total liabilities & stockholders' equity $ 3,832,487 $ 3,523,048
=========== ===========
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter Ended March 31,
2008 2007
------------ ------------
(In thousands, except
share and per share
amounts)
Revenues:
Self-moving equipment rentals $ 296,052 $ 292,867
Self-storage revenues 27,494 31,812
Self-moving and self-storage products
and service sales 43,378 49,004
Property management fees 7,955 7,407
Life insurance premiums 27,115 28,906
Property and casualty insurance
premiums 7,402 5,928
Net investment and interest income 15,278 17,796
Other revenue 8,286 8,126
------------ ------------
Total revenues 432,960 441,846
Costs and expenses:
Operating expenses 250,314 266,696
Commission expenses 35,597 31,942
Cost of sales 24,942 28,914
Benefits and losses 31,036 27,816
Amortization of deferred policy
acquisition costs 3,311 2,467
Lease expense 32,726 36,650
Depreciation, net of (gains) losses on
disposals 60,856 56,455
------------ ------------
Total costs and expenses 438,782 450,940
------------ ------------
Loss from operations (5,822) (9,094)
Interest expense (24,927) (20,780)
------------ ------------
Pretax loss (30,749) (29,874)
Income tax benefit 16,701 14,214
------------ ------------
Net loss (14,048) (15,660)
Less: Preferred stock dividends (3,240) (3,240)
------------ ------------
Loss available to common shareholders $ (17,288) $ (18,900)
============ ============
Basic and diluted loss per common
share $ (0.85) $ (0.89)
============ ============
Weighted average common shares
outstanding:
Basic and diluted 19,544,707 20,682,087
============ ============
AMERCO AND CONSOLIDATED ENTITIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Twelve Months Ended March 31,
2008 2007
------------ ------------
(In thousands, except
share and per share
amounts)
Revenues:
Self-moving equipment rentals $ 1,451,292 $ 1,462,470
Self-storage revenues 122,248 126,424
Self-moving and self-storage products
and service sales 217,798 224,722
Property management fees 22,820 21,154
Life insurance premiums 111,996 120,399
Property and casualty insurance premiums 28,388 24,335
Net investment and interest income 62,110 59,696
Other revenue 32,522 30,098
------------ ------------
Total revenues 2,049,174 2,069,298
Costs and expenses:
Operating expenses 1,077,108 1,080,412
Commission expenses 167,945 162,899
Cost of sales 120,210 117,648
Benefits and losses 111,195 118,725
Amortization of deferred policy
acquisition costs 13,181 17,138
Lease expense 133,931 147,659
Depreciation, net of (gains) losses on
disposals 221,882 189,589
------------ ------------
Total costs and expenses 1,845,452 1,834,070
------------ ------------
Earnings from operations 203,722 235,228
Interest expense (101,420) (82,436)
Fees on early extinguishment of debt -- (6,969)
------------ ------------
Pretax earnings 102,302 145,823
Income tax expense (34,518) (55,270)
------------ ------------
Net earnings 67,784 90,553
Less: Preferred stock dividends (12,963) (12,963)
------------ ------------
Earnings available to common
shareholders $ 54,821 $ 77,590
============ ============
Basic and diluted earnings per common
share $ 2.78 $ 3.72
============ ============
Weighted average common shares
outstanding:
Basic and diluted 19,740,571 20,838,570
============ ============
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
=============