RENO, Nev., Feb. 5, 2020 /PRNewswire/ -- AMERCO (Nasdaq:
UHAL), parent of U-Haul International, Inc., Oxford Life Insurance
Company, Repwest Insurance Company and Amerco Real Estate Company,
today reported net earnings available to shareholders for its third
quarter ended December 31, 2019, of
$30.9 million, or $1.58 per share, compared with net earnings of
$78.6 million, or $4.01 per share, for the same period last
year.
For the nine-month period ended December
31, 2019, net earnings available to shareholders were
$319.7 million, or $16.31 per share, compared with net earnings of
$370.0 million, or $18.89 per share, for the same period last
year.
"We maintained our expected rate of renting new storage rooms
while continuing our strategy of releasing new self-storage product
in markets underserved by U-Haul," stated Joe Shoen, chairman of AMERCO. "As I cautioned
in November, I expected our business with last mile delivery
companies might be flat or down. We saw a decline in this segment
of the business during the quarter. Business with our core
residential moving customers improved, but as I indicated last
quarter, there is room for more progress."
Highlights of Third Quarter Fiscal 2020 Results
- Self-moving equipment rental revenues decreased $4.7 million or 1% during the third quarter of
fiscal 2020, compared with the third quarter of fiscal 2019. The
decline was a result of a reduction in our Corporate Account
business. The third quarter of fiscal 2019 experienced a higher
than usual volume of Corporate Account rentals. Outside of that
portion of the business, we had revenue increases for both our
In-town and one-way markets. We increased the number of retail
locations, trucks, trailers and towing devices in the rental fleet
compared with the same period last year.
- Self-storage revenues increased $13.3
million during the third quarter of fiscal 2020, compared
with the third quarter of fiscal 2019. The average monthly amount
of occupied square feet increased by 16%, or 45,000 units, during
the third quarter of fiscal 2020 compared with the same period last
year. The growth in revenues comes from a combination of occupancy
gains at existing locations and from the addition of new facilities
to the portfolio. Over the last twelve months, we have added
approximately 6.1 million net rentable square feet or an 18%
increase to our owned self-storage portfolio with approximately 1.2
million of that coming on during the third quarter.
- For the third quarter of fiscal 2020 compared with the third
quarter of fiscal 2019, depreciation, net of gains and losses on
sales increased $26.6 million.
Depreciation expense on the rental equipment fleet increased
$16.6 million primarily due to a
larger fleet, while net losses on the disposals of rental equipment
increased $2.9 million. All other
depreciation increased $7.0 million
due primarily to the increase in new moving and storage
locations.
- For the first nine months of fiscal 2020 and fiscal 2019 gross
truck and trailer capital expenditures totaled approximately
$1,161 million compared with
$882 million, proceeds from the sales
of rental equipment totaled $591
million compared with $559
million and spending on real estate related acquisitions and
projects totaled approximately $600
million compared with $639
million, respectively.
- Fleet maintenance and repair costs increased $13.6 million in the third quarter of fiscal 2020
compared with the same period last year.
- Operating earnings at our Moving and Storage operating segment
decreased $58.2 million in the third
quarter of fiscal 2020 compared with the same period last year.
Total revenues increased $7.4 million
and total costs and expenses increased $65.6
million.
- Cash and credit availability at the Moving and Storage
operating segment was $659.2 million
at December 31, 2019 compared with
$724.5 million at March 31, 2019.
- On December 4, 2019, we declared
a cash dividend on our Common Stock of $0.50 per share to holders of record on
December 19, 2019. The dividend was
paid on January 6, 2020.
AMERCO will hold its investor call for the third quarter of
fiscal 2020 on Thursday, February 6,
2020, at 8 a.m. Arizona Time
(10 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., Oxford Life Insurance Company, Repwest
Insurance Company and Amerco Real Estate Company. U-Haul is in
the shared use business and was founded on the fundamental
philosophy that the division of use and specialization of ownership
is good for both U-Haul customers and the environment.
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 December 31,
2019, which is on file with the SEC.
Report on Business Operations
Listed below on a consolidated basis are revenues for our major
product lines for the third quarter of fiscal 2020 and 2019.
|
|
Quarter Ended
December 31,
|
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
|
(In
thousands)
|
Self-moving equipment
rentals
|
$
|
621,471
|
$
|
626,136
|
Self-storage
revenues
|
|
106,701
|
|
93,392
|
Self-moving and
self-storage product and service sales
|
|
54,454
|
|
55,665
|
Property management
fees
|
|
9,098
|
|
7,899
|
Life insurance
premiums
|
|
31,164
|
|
34,778
|
Property and casualty
insurance premiums
|
|
19,267
|
|
17,668
|
Net investment and
interest income
|
|
33,782
|
|
32,211
|
Other
revenue
|
|
51,943
|
|
51,342
|
Consolidated
revenue
|
$
|
927,880
|
$
|
919,091
|
Listed below are revenues and earnings from operations at each
of our operating segments for the third quarter of fiscal 2020 and
2019.
|
|
Quarter Ended
December 31,
|
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
|
(In
thousands)
|
Moving and
storage
|
|
|
|
|
Revenues
|
$
|
846,364
|
$
|
838,928
|
Earnings from
operations before equity in earnings of subsidiaries
|
|
61,769
|
|
119,959
|
Property and casualty
insurance
|
|
|
|
|
Revenues
|
|
25,366
|
|
22,146
|
Earnings from
operations
|
|
9,884
|
|
11,001
|
Life
insurance
|
|
|
|
|
Revenues
|
|
58,889
|
|
60,435
|
Earnings from
operations
|
|
9,190
|
|
7,429
|
Eliminations
|
|
|
|
|
Revenues
|
|
(2,739)
|
|
(2,418)
|
Earnings from
operations before equity in earnings of subsidiaries
|
|
(278)
|
|
(287)
|
Consolidated
Results
|
|
|
|
|
Revenues
|
|
927,880
|
|
919,091
|
Earnings from
operations
|
|
80,565
|
|
138,102
|
The Company owns and manages self-storage facilities.
Self-storage revenues reported in the consolidated financial
statements represent Company-owned locations only. Self-storage
data for our owned locations follows:
|
|
Quarter Ended
December 31,
|
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
|
(In thousands, except
occupancy rate)
|
Unit count as of
December 31
|
|
487
|
|
411
|
Square footage as of
December 31
|
|
40,835
|
|
34,693
|
Average monthly
number of units occupied
|
|
323
|
|
277
|
Average monthly
occupancy rate based on unit count
|
|
66.9%
|
|
68.0%
|
Average monthly
square footage occupied
|
|
29,318
|
|
25,126
|
Listed below on a consolidated basis are revenues for our major
product lines for the first nine months of fiscal 2020 and
2019.
|
|
Nine Months Ended
December 31,
|
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
|
(In
thousands)
|
Self-moving equipment
rentals
|
$
|
2,174,392
|
$
|
2,124,451
|
Self-storage
revenues
|
|
309,940
|
|
271,097
|
Self-moving and
self-storage product and service sales
|
|
207,601
|
|
207,819
|
Property management
fees
|
|
23,487
|
|
22,507
|
Life insurance
premiums
|
|
96,229
|
|
107,586
|
Property and casualty
insurance premiums
|
|
51,056
|
|
46,732
|
Net investment and
interest income
|
|
102,629
|
|
85,043
|
Other
revenue
|
|
192,009
|
|
177,940
|
Consolidated
revenue
|
$
|
3,157,343
|
$
|
3,043,175
|
Listed below are revenues and earnings from operations at each
of our operating segments for the first nine months of fiscal 2020
and 2019.
|
|
Nine Months Ended
December 31,
|
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
|
(In
thousands)
|
Moving and
storage
|
|
|
|
|
Revenues
|
$
|
2,916,314
|
|
2,813,747
|
Earnings from
operations before equity in earnings of subsidiaries
|
|
492,652
|
|
556,228
|
Property and casualty
insurance
|
|
|
|
|
Revenues
|
|
69,199
|
|
58,557
|
Earnings from
operations
|
|
27,442
|
|
21,573
|
Life insurance
|
|
|
|
|
Revenues
|
|
179,069
|
|
177,910
|
Earnings from
operations
|
|
19,912
|
|
16,812
|
Eliminations
|
|
|
|
|
Revenues
|
|
(7,239)
|
|
(7,039)
|
Earnings from
operations before equity in earnings of subsidiaries
|
|
(836)
|
|
(863)
|
Consolidated
Results
|
|
|
|
|
Revenues
|
|
3,157,343
|
|
3,043,175
|
Earnings from
operations
|
|
539,170
|
|
593,750
|
The Company owns and manages self-storage facilities.
Self-storage revenues reported in the consolidated financial
statements represent Company-owned locations only. Self-storage
data for our owned locations follows:
|
|
Nine Months Ended
December 31,
|
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
|
(In thousands, except
occupancy rate)
|
Unit count as of
December 31
|
|
487
|
|
411
|
Square footage as of
December 31
|
|
40,835
|
|
34,693
|
Average monthly
number of units occupied
|
|
316
|
|
272
|
Average monthly
occupancy rate based on unit count
|
|
68.2%
|
|
69.4%
|
Average monthly
square footage occupied
|
|
28,646
|
|
24,553
|
AMERCO AND
CONSOLIDATED ENTITIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
December
31,
|
|
March
31,
|
|
|
2019
|
|
2019
|
|
|
(Unaudited)
|
|
|
|
|
(In
thousands)
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
|
631,951
|
$
|
673,701
|
Reinsurance
recoverables and trade receivables, net
|
|
200,164
|
|
224,785
|
Inventories and
parts, net
|
|
103,003
|
|
103,504
|
Prepaid
expenses
|
|
188,780
|
|
174,100
|
Investments, fixed
maturities and marketable equities
|
|
2,469,468
|
|
2,235,397
|
Investments,
other
|
|
336,727
|
|
300,736
|
Deferred policy
acquisition costs, net
|
|
106,354
|
|
136,276
|
Other
assets
|
|
71,821
|
|
78,354
|
Right of use assets –
financing, net
|
|
1,130,473
|
|
-
|
Right of use assets -
operating
|
|
107,974
|
|
-
|
Related party
assets
|
|
47,988
|
|
30,889
|
|
|
5,394,703
|
|
3,957,742
|
Property, plant and
equipment, at cost:
|
|
|
|
|
Land
|
|
1,018,010
|
|
976,454
|
Buildings and improvements
|
|
4,522,855
|
|
4,003,726
|
Furniture and equipment
|
|
733,063
|
|
689,780
|
Rental
trailers and other rental equipment
|
|
511,872
|
|
590,039
|
Rental
trucks
|
|
3,454,759
|
|
4,762,028
|
|
|
10,240,559
|
|
11,022,027
|
Less: Accumulated
depreciation
|
|
(2,640,940)
|
|
(3,088,056)
|
Total
property, plant and equipment, net
|
|
7,599,619
|
|
7,933,971
|
Total
assets
|
$
|
12,994,322
|
$
|
11,891,713
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Liabilities:
|
|
|
|
|
Accounts
payable and accrued expenses
|
$
|
551,770
|
$
|
556,873
|
Notes,
loans and finance/capital leases payable, net
|
|
4,548,609
|
|
4,163,323
|
Operating lease liability
|
|
107,581
|
|
-
|
Policy
benefits and losses, claims and loss expenses payable
|
|
1,015,663
|
|
1,011,183
|
Liabilities from investment contracts
|
|
1,753,428
|
|
1,666,742
|
Other
policyholders' funds and liabilities
|
|
12,924
|
|
15,047
|
Deferred
income
|
|
31,459
|
|
35,186
|
Deferred
income taxes, net
|
|
869,671
|
|
750,970
|
Total
liabilities
|
|
8,891,105
|
|
8,199,324
|
|
|
|
|
|
Common
stock
|
|
10,497
|
|
10,497
|
Additional paid-in
capital
|
|
453,819
|
|
453,326
|
Accumulated other
comprehensive income (loss)
|
|
39,517
|
|
(66,698)
|
Retained
earnings
|
|
4,277,034
|
|
3,976,962
|
Cost of common shares
in treasury, net
|
|
(525,653)
|
|
(525,653)
|
Cost of preferred
shares in treasury, net
|
|
(151,997)
|
|
(151,997)
|
Unearned employee
stock ownership plan shares
|
|
-
|
|
(4,048)
|
Total stockholders'
equity
|
|
4,103,217
|
|
3,692,389
|
Total liabilities and
stockholders' equity
|
$
|
12,994,322
|
$
|
11,891,713
|
AMERCO AND
CONSOLIDATED ENTITIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
Quarter Ended
December 31,
|
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
|
(In thousands, except
share and per share data)
|
Revenues:
|
|
|
|
|
Self-moving equipment
rentals
|
$
|
621,471
|
$
|
626,136
|
Self-storage
revenues
|
|
106,701
|
|
93,392
|
Self-moving and
self-storage products and service sales
|
|
54,454
|
|
55,665
|
Property management
fees
|
|
9,098
|
|
7,899
|
Life insurance
premiums
|
|
31,164
|
|
34,778
|
Property and casualty
insurance premiums
|
|
19,267
|
|
17,668
|
Net investment and
interest income
|
|
33,782
|
|
32,211
|
Other
revenue
|
|
51,943
|
|
51,342
|
Total revenues
|
|
927,880
|
|
919,091
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
Operating
expenses
|
|
517,453
|
|
478,461
|
Commission
expenses
|
|
66,542
|
|
67,493
|
Cost of
sales
|
|
35,318
|
|
34,149
|
Benefits and
losses
|
|
42,864
|
|
42,869
|
Amortization of
deferred policy acquisition costs
|
|
8,046
|
|
6,654
|
Lease
expense
|
|
6,490
|
|
7,890
|
Depreciation, net of
(gains)/losses on disposal
|
|
170,074
|
|
143,473
|
Net losses on disposal
of real estate
|
|
528
|
|
-
|
Total costs and
expenses
|
|
847,315
|
|
780,989
|
|
|
|
|
|
Earnings from
operations
|
|
80,565
|
|
138,102
|
Other components of
net periodic benefit costs
|
|
(263)
|
|
(253)
|
Interest
expense
|
|
(39,973)
|
|
(34,827)
|
Pretax
earnings
|
|
40,329
|
|
103,022
|
Income tax
expense
|
|
(9,397)
|
|
(24,387)
|
Earnings available to
common shareholders
|
$
|
30,932
|
$
|
78,635
|
Basic and diluted
earnings per common share
|
$
|
1.58
|
$
|
4.01
|
Weighted average
common shares outstanding: Basic and diluted
|
|
19,607,788
|
|
19,591,963
|
AMERCO AND
CONSOLIDATED ENTITIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
Nine Months Ended
December 31,
|
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
|
(In thousands, except
share and per share data)
|
Revenues:
|
|
|
|
|
Self-moving equipment
rentals
|
$
|
2,174,392
|
$
|
2,124,451
|
Self-storage
revenues
|
|
309,940
|
|
271,097
|
Self-moving and
self-storage products and service sales
|
|
207,601
|
|
207,819
|
Property management
fees
|
|
23,487
|
|
22,507
|
Life insurance
premiums
|
|
96,229
|
|
107,586
|
Property and casualty
insurance premiums
|
|
51,056
|
|
46,732
|
Net investment and
interest income
|
|
102,629
|
|
85,043
|
Other
revenue
|
|
192,009
|
|
177,940
|
Total revenues
|
|
3,157,343
|
|
3,043,175
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
Operating
expenses
|
|
1,617,338
|
|
1,504,365
|
Commission
expenses
|
|
233,540
|
|
232,084
|
Cost of
sales
|
|
128,177
|
|
130,432
|
Benefits and
losses
|
|
137,695
|
|
137,196
|
Amortization of
deferred policy acquisition costs
|
|
20,625
|
|
18,584
|
Lease
expense
|
|
19,882
|
|
24,229
|
Depreciation, net of
gains on disposal
|
|
462,227
|
|
402,525
|
Net (gains) losses on
disposal of real estate
|
|
(1,311)
|
|
10
|
Total costs and
expenses
|
|
2,618,173
|
|
2,449,425
|
|
|
|
|
|
Earnings from
operations
|
|
539,170
|
|
593,750
|
Other components of
net periodic benefit costs
|
|
(790)
|
|
(760)
|
Interest
expense
|
|
(117,983)
|
|
(105,111)
|
Pretax
earnings
|
|
420,397
|
|
487,879
|
Income tax
expense
|
|
(100,717)
|
|
(117,853)
|
Earnings available to
common shareholders
|
$
|
319,680
|
$
|
370,026
|
Basic and diluted
earnings per common share
|
$
|
16.31
|
$
|
18.89
|
Weighted average
common shares outstanding: Basic and diluted
|
|
19,602,484
|
|
19,591,282
|
NON-GAAP FINANCIAL RECONCILIATION
SCHEDULE
As of April 1, 2019, we adopted
the new accounting standard for leases. Part of this adoption
resulted in approximately $1 billion
of property, plant and equipment, net ("PPE") being reclassed to
Right-of-Use Assets - Financing, net ("ROU-Financing"). As of
December 31, 2019, the balance of
ROU-Financing also included the rental equipment purchased under
new financing liability leases during the first nine months of
fiscal 2020. The table below shows adjusted property, plant and
equipment, net as of December 31,
2019, by including the ROU-Financing to help compare
our PPE assets with our March 2019
fiscal year end. The assets included in ROU-Financing are not a
true book value as some of the assets are recorded at between 70%
and 100% of value based on the lease agreement.
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
|
|
2019
|
|
|
|
|
December
31,
|
|
ROU
Assets
|
|
Property,
Plant and
Equipment
|
|
March
31,
|
|
|
2019
|
|
Financing
|
|
Adjusted
|
|
2019
|
|
|
(Unaudited)
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, at cost
|
|
|
|
|
|
|
|
|
Land
|
$
|
1,018,010
|
$
|
-
|
$
|
1,018,010
|
$
|
976,454
|
Buildings and
improvements
|
|
4,522,855
|
|
-
|
|
4,522,855
|
|
4,003,726
|
Furniture and
equipment
|
|
733,063
|
|
27,309
|
|
760,372
|
|
689,780
|
Rental trailers and
other rental equipment
|
|
511,872
|
|
117,987
|
|
629,859
|
|
590,039
|
Rental
trucks
|
|
3,454,759
|
|
1,746,036
|
|
5,200,795
|
|
4,762,028
|
Right-of-use assets,
gross
|
|
10,240,559
|
|
1,891,332
|
|
12,131,891
|
|
11,022,027
|
Less: Accumulated
depreciation
|
|
(2,640,940)
|
|
(760,859)
|
|
(3,401,799)
|
|
(3,088,056)
|
Total property, plant
and equipment, net
|
$
|
7,599,619
|
$
|
1,130,473
|
$
|
8,730,092
|
$
|
7,933,971
|
View original
content:http://www.prnewswire.com/news-releases/amerco-reports-third-quarter-fiscal-2020-financial-results-300999773.html
SOURCE AMERCO