RENO, Nev., May 29, 2019 /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 the year
ended March 31, 2019, were
$370.9 million, or $18.93 per share, compared with $790.6 million, or $40.36 per share for the same period last year.
Included in the results for the year ended March 31, 2018, was a $18.16 per share, or $355.7 million benefit resulting from the Tax
Reform Act and an additional after-tax benefit of $7.34 per share or $143.8
million resulting from the sale of a portion of our
Chelsea, NY property.
Excluding these items, adjusted earnings were $14.86 per share for the year ended March 31, 2018.
For the quarter ended March 31,
2019, the Company reported net earnings available to
shareholders of $0.8 million, or
$0.04 per share compared with net
earnings of $10.8 million, or
$0.56 per share for the same period
last year. Included in the results for the quarter ended
March 31, 2018, was a $0.84 per share, or $16.5
million benefit resulting from the Tax Reform Act, excluding
this, adjusted losses were ($0.28)
per share for the quarter ended March 31,
2018.
"We did a better job of meeting consumer needs for our rental
equipment and self-storage products over the course of this fiscal
year," stated Joe Shoen, chairman of
AMERCO. "Our pace for filling storage units and our truck sales
efforts are improving. We will continue to work to retain the
loyalty of our customers and team members."
Highlights of Fiscal Year and Fourth Quarter 2019
Results
- Self-moving equipment rental revenues increased $34.5 million or 7.0% in the fourth quarter of
fiscal 2019 compared with the fourth quarter of fiscal 2018 and
finished the full year up $173.8
million or 7.0% compared with fiscal 2018. During fiscal
2019, we expanded the number of Company owned locations along with
independent dealers, and increased the number of trucks, trailers
and towing devices in the rental fleet. In the third and fourth
quarters we saw revenue improvements in our corporate account
business. Revenue and transactions for both the One-way and in-town
markets improved compared to fiscal 2018.
- Self-storage revenues increased $11.6
million or 13.7% in the fourth quarter of fiscal 2019
compared with the fourth quarter of fiscal 2018 and for the full
year increased $43.4 million or 13.4%
compared with fiscal 2018. The average monthly amount of occupied
square feet increased by 14.0% during the fourth quarter of fiscal
2019 compared with the same period last year while square feet
available increased 16.8%. In fiscal 2019, we added approximately
5.3 million net rentable square feet to our owned self-storage
portfolio.
- For the quarter, depreciation, net of gains and losses on sales
increased $4.8 million. Depreciation
on the rental equipment fleet increased $1.6
million primarily due to a larger fleet. Losses on the sales
of rental trucks decreased $0.3
million. All other depreciation increased $3.5 million from the increase in new moving and
storage locations. For the full fiscal year, depreciation, net of
gains and losses on sales, increased $10.8
million. Depreciation on the rental equipment fleet
increased $13.2 million primarily due
to a larger fleet. Gains on the sales of rental trucks increased
$15.1 million due to an increase in
the volume of units sold and nominal improvements in sales price.
All other depreciation increased $17.9
million largely from the increase in new moving and storage
locations.
- Net gains on the sale of real estate decreased $3.1 million for the fourth quarter of fiscal
2019 compared with the same period last year and decreased
$195.4 million for the full year of
fiscal 2019. The decrease for the full year was caused by the sale
of a portion of our Chelsea, NY
property in the third quarter of fiscal 2018 which resulted in a
pre-tax gain of $190.7 million.
- Fleet maintenance and repair costs increased $3.2 million in the fourth quarter of fiscal 2019
compared with the same period last year and $45.6 million for the full year of fiscal 2019.
The increase in the number of units sold combined with the larger
average fleet size during the quarter and full twelve months led to
the higher repair and maintenance spending.
- Operating earnings at our Moving and Storage operating segment
increased $23.9 million in the fourth
quarter of fiscal 2019 compared with the same period last year.
Total revenues climbed $51.6 million
and total costs and expenses increased $27.7
million.
- Our Life Insurance subsidiary terminated a reinsurance
agreement in the fourth quarter of fiscal 2019, which reduced their
Life Insurance premiums $78.4 million
and their Benefits and Losses expense by $76.4 million resulting in a net transfer of cash
of $64.6 million.
- Gross truck and trailer capital expenditures for fiscal 2019
were approximately $1,163 million
compared with approximately $1,007
million for fiscal 2018. Proceeds from the sales of rental
equipment were approximately $603
million for fiscal 2019 compared with $491 million in fiscal 2018. Spending on real
estate related acquisitions and projects increased approximately
$396 million to $1,003 million in fiscal 2019 compared with
fiscal 2018.
- Cash and credit availability at the Moving and Storage
operating segment was $724.5 million
at March 31, 2019 compared with
$882.0 million at March 31, 2018.
- On March 6, 2019, we declared a
cash dividend on our Common Stock of $0.50 per share to holders of record on
March 21, 2019. The dividend was paid
on April 4, 2019.
AMERCO will hold its investor call for fiscal 2019 on
Thursday, May 30, 2019, at
8 a.m. Arizona 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.
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-K for the year ended March 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 fourth quarter and the full year of fiscal
2019 and 2018.
|
|
Quarters Ended
March 31,
|
|
Years Ended March
31,
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
(In
thousands)
|
Self-moving equipment
rentals
|
$
|
529,046
|
$
|
494,525
|
$
|
2,653,497
|
$
|
2,479,742
|
|
Self-storage
revenues
|
|
96,179
|
|
84,586
|
|
367,276
|
|
323,903
|
|
Self-moving and
self-storage product and service sales
|
|
56,327
|
|
56,248
|
|
264,146
|
|
261,557
|
|
Property management
fees
|
|
6,641
|
|
6,128
|
|
29,148
|
|
29,602
|
|
Life insurance
premiums
|
|
(44,098)
|
|
37,793
|
|
63,488
|
|
154,703
|
|
Property and casualty
insurance premiums
|
|
14,121
|
|
14,166
|
|
60,853
|
|
57,100
|
|
Net investment and
interest income
|
|
25,891
|
|
27,966
|
|
110,934
|
|
110,473
|
|
Other
revenue
|
|
41,425
|
|
36,209
|
|
219,365
|
|
184,034
|
|
Consolidated
revenue
|
$
|
725,532
|
$
|
757,621
|
$
|
3,768,707
|
$
|
3,601,114
|
|
Listed below are revenues and earnings from operations at each
of our operating segments for the fourth quarter and the full year
of fiscal 2019 and 2018.
|
|
Quarters Ended
March 31,
|
|
Years Ended March
31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
(In
thousands)
|
Moving and
storage
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
732,062
|
$
|
680,445
|
$
|
3,545,809
|
$
|
3,290,667
|
Earnings
from operations before equity in earnings of
subsidiaries
|
|
13,013
|
|
(10,889)
|
|
569,241
|
|
712,700
|
Property and casualty
insurance
|
|
|
|
|
|
|
|
|
Revenues
|
|
17,280
|
|
18,867
|
|
75,837
|
|
74,571
|
Earnings
from operations
|
|
5,833
|
|
6,760
|
|
27,406
|
|
25,878
|
Life
insurance
|
|
|
|
|
|
|
|
|
Revenues
|
|
(23,196)
|
|
60,397
|
|
154,714
|
|
243,862
|
Earnings
from operations
|
|
8,669
|
|
7,423
|
|
25,481
|
|
27,959
|
Eliminations
|
|
|
|
|
|
|
|
|
Revenues
|
|
(614)
|
|
(2,088)
|
|
(7,653)
|
|
(7,986)
|
Earnings
from operations before equity in earnings of
subsidiaries
|
|
(278)
|
|
(292)
|
|
(1,141)
|
|
(1,291)
|
Consolidated
Results
|
|
|
|
|
|
|
|
|
Revenues
|
|
725,532
|
|
757,621
|
|
3,768,707
|
|
3,601,114
|
Earnings
from operations
|
|
27,237
|
|
3,002
|
|
620,987
|
|
765,246
|
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 storage locations follows:
|
|
Quarters Ended
March 31,
|
|
|
2019
|
|
2018
|
|
|
(In thousands, except
occupancy rate)
|
Unit count as of
March 31
|
|
428
|
|
366
|
Square footage as of
March 31
|
|
36,237
|
|
30,974
|
Average monthly
number of units occupied
|
|
283
|
|
249
|
Average monthly
occupancy rate based on unit count
|
|
66.9%
|
|
68.9%
|
Average monthly
square footage occupied
|
|
25,790
|
|
22,621
|
|
|
Years Ended March
31,
|
|
|
2019
|
|
2018
|
|
|
(In thousands, except
occupancy rate)
|
Unit count as of
March 31
|
|
428
|
|
366
|
Square footage as of
March 31
|
|
36,237
|
|
30,974
|
Average monthly
number of units occupied
|
|
275
|
|
246
|
Average monthly
occupancy rate based on unit count
|
|
68.7%
|
|
71.6%
|
Average monthly
square footage occupied
|
|
24,862
|
|
22,203
|
AMERCO AND
CONSOLIDATED ENTITIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
March
31,
|
|
March
31,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
(In
thousands)
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
|
673,701
|
$
|
759,388
|
Reinsurance
recoverables and trade receivables, net
|
|
224,785
|
|
193,538
|
Inventories and
parts, net
|
|
103,504
|
|
89,877
|
Prepaid
expenses
|
|
174,100
|
|
166,129
|
Investments, fixed
maturities and marketable equities
|
|
2,235,397
|
|
1,919,860
|
Investments,
other
|
|
300,736
|
|
399,064
|
Deferred policy
acquisition costs, net
|
|
136,276
|
|
124,767
|
Other
assets
|
|
78,354
|
|
244,782
|
Related party
assets
|
|
30,889
|
|
33,276
|
|
|
3,957,742
|
|
3,930,681
|
Property, plant and
equipment, at cost:
|
|
|
|
|
Land
|
|
976,454
|
|
827,649
|
Buildings and
improvements
|
|
4,003,726
|
|
3,140,713
|
Furniture and
equipment
|
|
689,780
|
|
632,803
|
Rental trailers and
other rental equipment
|
|
590,039
|
|
545,968
|
Rental
trucks
|
|
4,762,028
|
|
4,390,750
|
|
|
11,022,027
|
|
9,537,883
|
Less: Accumulated
depreciation
|
|
(3,088,056)
|
|
(2,721,142)
|
Total property, plant
and equipment
|
|
7,933,971
|
|
6,816,741
|
Total
assets
|
$
|
11,891,713
|
$
|
10,747,422
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Liabilities:
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
556,873
|
$
|
511,115
|
Notes, loans and
leases payable
|
|
4,163,323
|
|
3,513,076
|
Policy benefits and
losses, claims and loss expenses payable
|
|
1,011,183
|
|
1,248,033
|
Liabilities from
investment contracts
|
|
1,666,742
|
|
1,364,066
|
Other policyholders'
funds and liabilities
|
|
15,047
|
|
10,040
|
Deferred
income
|
|
35,186
|
|
34,276
|
Deferred income
taxes
|
|
750,970
|
|
658,108
|
Total
liabilities
|
|
8,199,324
|
|
7,338,714
|
|
|
|
|
|
Common
stock
|
|
10,497
|
|
10,497
|
Additional paid-in
capital
|
|
453,326
|
|
452,746
|
Accumulated other
comprehensive loss
|
|
(66,698)
|
|
(4,623)
|
Retained
earnings
|
|
3,976,962
|
|
3,635,561
|
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)
|
|
(7,823)
|
Total stockholders'
equity
|
|
3,692,389
|
|
3,408,708
|
Total liabilities and
stockholders' equity
|
$
|
11,891,713
|
$
|
10,747,422
|
AMERCO AND
CONSOLIDATED ENTITIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
Quarters Ended
March 31,
|
|
|
2019
|
|
2018
|
|
|
(In thousands, except
share and per share data)
|
Revenues:
|
|
|
|
|
Self-moving equipment rentals
|
$
|
529,046
|
$
|
494,525
|
Self-storage revenues
|
|
96,179
|
|
84,586
|
Self-moving and self-storage products and service sales
|
|
56,327
|
|
56,248
|
Property
management fees
|
|
6,641
|
|
6,128
|
Life
insurance premiums
|
|
(44,098)
|
|
37,793
|
Property
and casualty insurance premiums
|
|
14,121
|
|
14,166
|
Net
investment and interest income
|
|
25,891
|
|
27,966
|
Other
revenue
|
|
41,425
|
|
36,209
|
Total
revenues
|
|
725,532
|
|
757,621
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
Operating expenses
|
|
476,815
|
|
460,274
|
Commission expenses
|
|
56,324
|
|
54,502
|
Cost of
sales
|
|
31,710
|
|
36,033
|
Benefits
and losses
|
|
(36,919)
|
|
45,314
|
Amortization of deferred policy acquisition costs
|
|
9,972
|
|
6,297
|
Lease
expense
|
|
8,929
|
|
8,683
|
Depreciation, net of gains on disposals
|
|
151,518
|
|
146,707
|
Net
gains on disposal of real estate
|
|
(54)
|
|
(3,191)
|
Total costs and
expenses
|
|
698,295
|
|
754,619
|
|
|
|
|
|
Earnings from
operations
|
|
27,237
|
|
3,002
|
Other
components of net periodic benefit costs
|
|
(253)
|
|
(232)
|
Interest
expense
|
|
(37,334)
|
|
(32,780)
|
Pretax
losses
|
|
(10,350)
|
|
(30,010)
|
Income
tax benefit
|
|
11,181
|
|
40,853
|
Earnings available to
common shareholders
|
$
|
831
|
$
|
10,843
|
Basic and diluted
earnings per common share
|
$
|
0.04
|
$
|
0.56
|
Weighted average
common shares outstanding: Basic and diluted
|
|
19,594,008
|
|
19,589,871
|
AMERCO AND
CONSOLIDATED ENTITIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
Years Ended March
31,
|
|
|
2019
|
|
2018
|
|
|
(In thousands, except
share and per share data)
|
Revenues:
|
|
|
|
|
Self-moving equipment rentals
|
$
|
2,653,497
|
$
|
2,479,742
|
Self-storage revenues
|
|
367,276
|
|
323,903
|
Self-moving and self-storage products and service sales
|
|
264,146
|
|
261,557
|
Property
management fees
|
|
29,148
|
|
29,602
|
Life
insurance premiums
|
|
63,488
|
|
154,703
|
Property
and casualty insurance premiums
|
|
60,853
|
|
57,100
|
Net
investment and interest income
|
|
110,934
|
|
110,473
|
Other
revenue
|
|
219,365
|
|
184,034
|
Total
revenues
|
|
3,768,707
|
|
3,601,114
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
Operating expenses
|
|
1,981,180
|
|
1,807,056
|
Commission expenses
|
|
288,408
|
|
276,705
|
Cost of
sales
|
|
162,142
|
|
160,489
|
Benefits
and losses
|
|
100,277
|
|
185,311
|
Amortization of deferred policy acquisition costs
|
|
28,556
|
|
24,514
|
Lease
expense
|
|
33,158
|
|
33,960
|
Depreciation, net of gains on disposals
|
|
554,043
|
|
543,247
|
Net
gains on disposal of real estate
|
|
(44)
|
|
(195,414)
|
Total costs and
expenses
|
|
3,147,720
|
|
2,835,868
|
|
|
|
|
|
Earnings from
operations
|
|
620,987
|
|
765,246
|
Other
components of net periodic benefit costs
|
|
(1,013)
|
|
(927)
|
Interest
expense
|
|
(142,445)
|
|
(126,706)
|
Pretax
earnings
|
|
477,529
|
|
637,613
|
Income
tax benefit (expense)
|
|
(106,672)
|
|
152,970
|
Earnings available to
common shareholders
|
$
|
370,857
|
$
|
790,583
|
Basic and diluted
earnings per common share
|
$
|
18.93
|
$
|
40.36
|
Weighted average
common shares outstanding: Basic and diluted
|
|
19,592,048
|
|
19,588,889
|
NON-GAAP FINANCIAL
RECONCILIATION SCHEDULE
|
|
|
|
Year
Ended
|
|
|
March 31,
2018
|
|
|
|
(In thousands, except
share and per share amounts)
|
|
|
|
|
|
AMERCO and
Consolidated Subsidiaries
|
|
|
Earnings per common
share: basic and diluted
|
$
|
40.36
|
Gain on sale of
Chelsea property, per common share basic and diluted
|
|
(7.34)
|
Earnings per common
share: basic and diluted before gain on sale of Chelsea
property
|
$
|
33.02
|
|
|
|
Gain on sale of
Chelsea property
|
$
|
190,712
|
Income tax
expense
|
|
(46,915)
|
Gain on sale of
Chelsea property, net of taxes
|
$
|
143,797
|
Gain on sale of
Chelsea property, net of taxes, per common share basic and
diluted
|
$
|
7.34
|
Weighted average
shares outstanding: basic and diluted
|
|
19,588,889
|
|
|
|
|
|
Year
Ended
|
|
|
March 31,
2018
|
|
|
|
(In thousands, except
share and per share amounts)
|
|
|
|
|
|
AMERCO and
Consolidated Subsidiaries
|
|
|
Earnings per common
share: basic and diluted
|
$
|
40.36
|
Tax Reform Act
adjustment, per common share basic and diluted
|
|
(18.16)
|
Earnings per common
share: basic and diluted before Tax Reform Act
adjustment
|
$
|
22.20
|
|
|
|
Tax Reform Act
adjustment
|
$
|
355,748
|
Tax Reform Act
adjustment, per common share basic and diluted
|
$
|
18.16
|
Weighted average
shares outstanding: basic and diluted
|
|
19,588,889
|
|
|
|
Cumulative
adjustments:
|
|
|
|
|
Year
Ended
|
|
|
March 31,
2018
|
|
|
|
|
|
|
AMERCO and
Consolidated Subsidiaries
|
|
|
Earnings per common
share: basic and diluted
|
$
|
40.36
|
Tax Cuts and Jobs Act
adjustment, per common share basic and diluted
|
|
(18.16)
|
Gain on sale of
Chelsea property, per common share basic and diluted
|
|
(7.34)
|
Earnings per common
share: basic and diluted after cumulative adjustments
|
$
|
14.86
|
|
|
|
|
|
Quarter
Ended
|
|
|
March 31,
2018
|
|
|
|
(In thousands, except
share and per share amounts)
|
|
|
|
|
|
AMERCO and
Consolidated Subsidiaries
|
|
|
Earnings per common
share: basic and diluted
|
$
|
0.56
|
Tax Reform Act
adjustment, per common share basic and diluted
|
|
(0.84)
|
Losses per common
share: basic and diluted before Tax Reform Act
adjustment
|
$
|
(0.28)
|
|
|
|
Tax Reform Act
adjustment
|
$
|
16,527
|
Tax Reform Act
adjustment, per common share basic and diluted
|
$
|
0.84
|
Weighted average
shares outstanding: basic and diluted
|
|
19,589,871
|
View original
content:http://www.prnewswire.com/news-releases/amerco-reports-fiscal-2019-financial-results-300858700.html
SOURCE AMERCO