RENO, Nev., Aug. 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 common shareholders for
its first quarter ended June 30,
2020, of $87.7 million, or
$4.47 per share, compared with net
earnings of $132.4 million, or
$6.76 per share, for the same period
last year.
"Customer demand for U-Haul products and services has rebounded
as society learns to cope with the effects of COVID-19," stated
Joe Shoen, chairman of AMERCO. "As
essential critical workers, the U-Haul team has stood tall and come
through for the customer."
Highlights of First Quarter Fiscal 2021 Results
- Self-moving equipment rental revenues decreased $94.3 million, or 12.6% for the first quarter of
fiscal 2021 compared with the first quarter of fiscal 2020.
Either through force of government or personal caution,
self-moving rental activity decreased as a result of COVID-19
during the first quarter of fiscal 2021. The decline in equipment
rental revenues, as compared to the same period the previous year,
did improve throughout the quarter. April, May and June revenues
were down approximately 30%, 8% and 4%, respectively. Compared to
the same period last year, we increased the number of retail
locations, independent dealers, box trucks and trailers in the
rental fleet.
- Self-storage revenues increased $10.7
million, or 10.9% for the first quarter of fiscal 2021
compared with the first quarter of fiscal 2020. The average number
of units occupied during the quarter increased by 15%, or 44,000
compared to the same quarter last year. The growth in revenues and
square feet rented comes from a combination of occupancy gains at
existing locations and from the addition of new capacity to the
portfolio. Over the last twelve months, we have added approximately
5.2 million net rentable square feet to the self-storage portfolio
with approximately 1.3 million square feet of that coming online
during the first quarter.
- Sales of self-moving and self-storage products and services
increased $11.3 million, or 14.2%
compared with the first quarter of fiscal 2020 due to increased
sales of hitches, moving supplies and propane.
- For the first quarter of fiscal 2021 compared with the first
quarter of fiscal 2020, depreciation, net of gains on sales
increased $25.1 million.
Depreciation expense on the rental equipment fleet increased
$2.5 million to $124.9 million. Net gains on the sales of
rental trucks decreased $15.6 million
from a reduction in auction activity due to COVID-19. All other
depreciation increased $7.0 million
to $41.9 million from the increase in
new moving and storage locations. Net gains on disposal of real
estate decreased $1.4 million from
the condemnation of a property in the first quarter of fiscal
2020.
- For the first quarter of fiscal 2021 compared with the first
quarter of fiscal 2020 gross truck and trailer capital expenditures
were approximately $123 million
compared with approximately $561
million. Proceeds from sales of rental equipment were
$74 million compared with
$158 million. Spending on real
estate related acquisitions and development were approximately
$103 million compared with
$218 million, respectively. We
will continue to calibrate our capital spending based in part upon
the evolving effects of COVID-19.
- Fleet maintenance and repair costs decreased $27.8 million in the first quarter of fiscal 2021
compared with the same period last year.
- Operating earnings at our Moving and Storage operating segment
decreased $50.2 million compared with
the same period last year. Total revenues decreased $74.1 million and total costs and expenses
decreased $23.9 million.
- Cash and credit availability at the Moving and Storage segment
was $840.9 million at June 30, 2020 compared with $498.1 million at March
31, 2020.
- We are holding our 14th Annual Virtual Analyst and
Investor meeting on Thursday, August 20,
2020 at 11:00 a.m. Arizona
Time (2:00 p.m. Eastern). This
is an opportunity to interact directly with Company representatives
through a live video webcast on amerco.com. A brief
presentation by the Company will be followed by a question and
answer session.
AMERCO will hold its investor call for the first quarter of
fiscal 2021 on Thursday, August 6,
2020, 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-Q for the quarter ended June 30,
2020, 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 first quarter of fiscal 2021 and 2020.
|
|
Quarter Ended June
30,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
|
(In
thousands)
|
Self-moving
equipment rentals
|
$
|
654,285
|
$
|
748,596
|
Self-storage
revenues
|
|
108,955
|
|
98,274
|
Self-moving and
self-storage product and service sales
|
|
91,350
|
|
80,026
|
Property
management fees
|
|
7,347
|
|
7,156
|
Life insurance
premiums
|
|
30,908
|
|
32,710
|
Property and
casualty insurance premiums
|
|
13,734
|
|
13,424
|
Net investment
and interest income
|
|
16,982
|
|
35,749
|
Other
revenue
|
|
63,676
|
|
63,314
|
Consolidated
revenue
|
$
|
987,237
|
$
|
1,079,249
|
Listed below are revenues and earnings from operations at each
of our operating segments for the first quarter of fiscal 2021 and
2020.
|
|
Quarter Ended June
30,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
|
(In
thousands)
|
Moving and
storage
|
|
|
|
|
Revenues
|
$
|
926,300
|
$
|
1,000,398
|
Earnings from
operations before equity in earnings of subsidiaries
|
|
151,661
|
|
201,896
|
Property and
casualty insurance
|
|
|
|
|
Revenues
|
|
13,634
|
|
20,305
|
Earnings from
operations
|
|
778
|
|
8,466
|
Life
insurance
|
|
|
|
|
Revenues
|
|
49,653
|
|
60,321
|
Earnings from
operations
|
|
1,920
|
|
3,781
|
Eliminations
|
|
|
|
|
Revenues
|
|
(2,350)
|
|
(1,775)
|
Earnings from
operations before equity in earnings of subsidiaries
|
|
(273)
|
|
(278)
|
Consolidated
Results
|
|
|
|
|
Revenues
|
|
987,237
|
|
1,079,249
|
Earnings from
operations
|
|
154,086
|
|
213,865
|
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 June
30,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
|
(In thousands, except
occupancy rate)
|
Unit count as of June
30
|
|
516
|
|
452
|
Square footage as of
June 30
|
|
43,393
|
|
38,175
|
Average monthly
number of units occupied
|
|
347
|
|
302
|
Average monthly
occupancy rate based on unit count
|
|
67.6%
|
|
68.4%
|
Average monthly
square footage occupied
|
|
31,010
|
|
27,421
|
AMERCO AND
CONSOLIDATED SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
June
30,
|
|
March
31,
|
|
|
2020
|
|
2020
|
|
|
(Unaudited)
|
|
|
|
|
(In
thousands)
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
|
825,074
|
$
|
494,352
|
Reinsurance
recoverables and trade receivables, net
|
|
208,371
|
|
186,672
|
Inventories and
parts, net
|
|
100,835
|
|
101,083
|
Prepaid
expenses
|
|
585,879
|
|
562,904
|
Investments, fixed
maturities and marketable equities
|
|
2,393,522
|
|
2,492,738
|
Investments,
other
|
|
395,123
|
|
360,373
|
Deferred policy
acquisition costs, net
|
|
117,123
|
|
103,118
|
Other
assets
|
|
70,415
|
|
71,956
|
Right of use assets –
financing, net
|
|
1,026,928
|
|
1,080,353
|
Right of use assets -
operating
|
|
106,682
|
|
106,631
|
Related party
assets
|
|
9,406
|
|
34,784
|
|
|
5,839,358
|
|
5,594,964
|
Property, plant and
equipment, at cost:
|
|
|
|
|
Land
|
|
1,043,952
|
|
1,032,945
|
Buildings and improvements
|
|
4,752,816
|
|
4,663,461
|
Furniture and equipment
|
|
754,641
|
|
752,363
|
Rental
trailers and other rental equipment
|
|
513,623
|
|
511,520
|
Rental
trucks
|
|
3,619,718
|
|
3,595,933
|
|
|
10,684,750
|
|
10,556,222
|
Less: Accumulated
depreciation
|
|
(2,811,749)
|
|
(2,713,162)
|
Total
property, plant and equipment, net
|
|
7,873,001
|
|
7,843,060
|
Total
assets
|
$
|
13,712,359
|
$
|
13,438,024
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Liabilities:
|
|
|
|
|
Accounts
payable and accrued expenses
|
$
|
582,356
|
$
|
554,353
|
Notes,
loans and finance/capital leases payable, net
|
|
4,777,963
|
|
4,621,291
|
Operating lease liability
|
|
106,614
|
|
106,443
|
Policy
benefits and losses, claims and loss expenses payable
|
|
998,762
|
|
997,647
|
Liabilities from investment contracts
|
|
1,833,617
|
|
1,802,217
|
Other
policyholders' funds and liabilities
|
|
6,764
|
|
10,190
|
Deferred
income
|
|
42,789
|
|
31,620
|
Deferred
income taxes, net
|
|
1,106,312
|
|
1,093,543
|
Total
liabilities
|
|
9,455,177
|
|
9,217,304
|
|
|
|
|
|
Common
stock
|
|
10,497
|
|
10,497
|
Additional paid-in
capital
|
|
453,819
|
|
453,819
|
Accumulated other
comprehensive income (loss)
|
|
(13,732)
|
|
34,652
|
Retained
earnings
|
|
4,484,248
|
|
4,399,402
|
Cost of common stock
in treasury, net
|
|
(525,653)
|
|
(525,653)
|
Cost of preferred
stock in treasury, net
|
|
(151,997)
|
|
(151,997)
|
Unearned employee
stock ownership plan stock
|
|
-
|
|
-
|
Total stockholders'
equity
|
|
4,257,182
|
|
4,220,720
|
Total liabilities and
stockholders' equity
|
$
|
13,712,359
|
$
|
13,438,024
|
AMERCO AND
CONSOLIDATED SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
Quarter Ended June
30,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
|
(In thousands, except
share and per share data)
|
Revenues:
|
|
|
|
|
Self-moving equipment
rentals
|
$
|
654,285
|
$
|
748,596
|
Self-storage
revenues
|
|
108,955
|
|
98,274
|
Self-moving and
self-storage products and service sales
|
|
91,350
|
|
80,026
|
Property management
fees
|
|
7,347
|
|
7,156
|
Life insurance
premiums
|
|
30,908
|
|
32,710
|
Property and casualty
insurance premiums
|
|
13,734
|
|
13,424
|
Net investment and
interest income
|
|
16,982
|
|
35,749
|
Other
revenue
|
|
63,676
|
|
63,314
|
Total revenues
|
|
987,237
|
|
1,079,249
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
Operating
expenses
|
|
492,662
|
|
534,472
|
Commission
expenses
|
|
69,175
|
|
80,899
|
Cost of
sales
|
|
52,831
|
|
48,929
|
Benefits and
losses
|
|
39,577
|
|
49,006
|
Amortization of
deferred policy acquisition costs
|
|
6,888
|
|
6,064
|
Lease
expense
|
|
6,603
|
|
7,036
|
Depreciation, net of
gains on disposals
|
|
165,671
|
|
140,600
|
Net gains on disposal
of real estate
|
|
(256)
|
|
(1,622)
|
Total costs and
expenses
|
|
833,151
|
|
865,384
|
|
|
|
|
|
Earnings from
operations
|
|
154,086
|
|
213,865
|
Other components of
net periodic benefit costs
|
|
(247)
|
|
(263)
|
Interest
expense
|
|
(39,521)
|
|
(38,888)
|
Pretax
earnings
|
|
114,318
|
|
174,714
|
Income tax
expense
|
|
(26,592)
|
|
(42,292)
|
Earnings available to
common stockholders
|
$
|
87,726
|
$
|
132,422
|
Basic and diluted
earnings per common stock
|
$
|
4.47
|
$
|
6.76
|
Weighted average
common stock outstanding: Basic and diluted
|
|
19,607,788
|
|
19,597,697
|
|
|
|
|
|
NON-GAAP DISCLOSURE
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
June 30, 2020, the balance of
ROU-financing also includes the rental equipment purchased under
new financing liability leases during the first quarter. The table
below shows adjusted PPE as of June 30,
2020 and March 31, 2020, by
including the ROU-financing. The assets included in the
ROU-financing is not a true book value as some of the assets are
recorded at between 70% and 100% of value based on the lease
agreement.
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
|
|
|
|
|
2020
|
|
2020
|
|
|
June
30,
|
|
ROU
Assets
|
|
Property,
Plant and
Equipment
|
|
Property,
Plant and
Equipment
|
|
|
2020
|
|
Financing
|
|
Adjusted
|
|
Adjusted
|
|
|
(Unaudited)
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, at cost
|
|
|
|
|
|
|
|
|
Land
|
$
|
1,043,952
|
$
|
-
|
$
|
1,043,952
|
$
|
1,032,945
|
Buildings and
improvements
|
|
4,752,816
|
|
-
|
|
4,752,816
|
|
4,663,461
|
Furniture and
equipment
|
|
754,641
|
|
21,111
|
|
775,752
|
|
773,476
|
Rental trailers and
other rental equipment
|
|
513,623
|
|
115,967
|
|
629,590
|
|
627,592
|
Rental
trucks
|
|
3,619,718
|
|
1,697,339
|
|
5,317,057
|
|
5,334,014
|
Right-of-use assets,
gross
|
|
10,684,750
|
|
1,834,417
|
|
12,519,167
|
|
12,431,488
|
Less: Accumulated
depreciation
|
|
(2,811,749)
|
|
(807,489)
|
|
(3,619,238)
|
|
(3,508,075)
|
Total property, plant
and equipment, net
|
$
|
7,873,001
|
$
|
1,026,928
|
$
|
8,899,929
|
$
|
8,923,413
|
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SOURCE AMERCO