RENO, Nev., Nov. 8, 2017 /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
second quarter ended September 30,
2017, of $124.6 million, or
$6.36 per share, compared with net
earnings of $176.5 million, or
$9.01 per share, for the same period
last year. Included in the results for the second quarter ended
September 30, 2016, was an after tax
benefit of $0.79 per share associated
with our settlement of the PEI litigation that resulted in a
reduction in operating expenses of $24.6
million. Excluding this after tax benefit, adjusted earnings
were $8.22 per share for the second
quarter ended September 30, 2016.
For the six-month period ended September
30, 2017, net earnings available to shareholders were
$250.8 million, or $12.81 per share, compared with net earnings of
$323.6 million, or $16.52 per share, for the same period last year.
Included in the results for the six-month period ended September 30, 2016, was an after tax benefit of
$0.79 per share associated with our
settlement of the PEI litigation that resulted in a reduction in
operating expenses of $24.6 million.
Excluding this after tax benefit, adjusted earnings were
$15.73 per share for the six-month
period ended September 30, 2016.
"Quarterly results were impacted by $20
million of discretionary bonuses to frontline
managers. Operating results were reduced by fewer trucks sold
and a higher cost associated with those sold trucks," stated
Joe Shoen, chairman of AMERCO.
"Truck sales will take at least six months to get back onto a more
regular fleet rotation. Self-move and self-store transactions
were within planned ranges. The closing of the Chelsea, NYC
property sale occurred in October instead of September."
Highlights of Second Quarter Fiscal 2018 Results
- Self-moving equipment rental revenues increased $28.8 million or 4% during the second quarter of
fiscal 2018, compared with the second quarter of fiscal 2017.
Increases in both one-way and in-town transactions led to the
improvement in revenue. We increased the number of trucks,
trailers, towing devices, independent dealers and Company-owned
locations compared with the same period last year.
- Self-storage revenues increased $8.3
million during the second quarter of fiscal 2018, compared
with the second quarter of fiscal 2017. The average monthly amount
of occupied square feet increased by 8.1% during the second quarter
of fiscal 2018 compared with the same period last year. The growth
in revenues and square feet rented comes from a combination of
improved occupancy at existing locations as well as the addition of
new facilities to the portfolio. Over the last twelve months, we
have added approximately 3.6 million net rentable square feet or a
14.2% increase to our owned self-storage portfolio with over 1.0
million of that coming on during the second quarter.
- Depreciation, net of gains and losses on disposals increased
$23.1 million. Depreciation on the
rental equipment fleet increased $14.6
million primarily due to a larger fleet. Gains on the
disposal on rental trucks decreased $4.5
million due to lower unit sales. All other depreciation
increased $4.0 million from the
increase in new moving and storage locations.
- Personnel and fleet maintenance and repair costs increased
$46.6 million in the second quarter
of fiscal 2018 compared with the same period last year. Personnel
expense was largely impacted by a special discretionary bonus paid
to our local field management teams. Higher repair and maintenance
spending was due to the larger rental fleet combined with increased
repairs on units in preparation for sale.
- Operating earnings at our Moving and Storage operating segment
decreased $76.2 million in the second
quarter of fiscal 2018 compared with the same period last year.
Total revenues climbed $44.8 million
and total costs and expenses increased $121.0 million.
- For both the first six months of fiscal 2018 and fiscal 2017
gross truck and trailer capital expenditures were approximately
$665 million, for the first six
months of fiscal 2018 compared with the first six months of fiscal
2017 proceeds from sales of rental equipment were $256 million compared with $308 million and spending on real estate related
acquisitions and projects were approximately $258 million compared with $252 million.
- Cash and credit availability at the Moving and Storage
operating segment was $939.9 million
at September 30, 2017 compared with
$804.7 million at March 31, 2017.
- On July 5, 2017, the Board
declared a cash dividend on our Common Stock of $1.00 per share to holders of record on
July 20, 2017. The dividend was paid
on August 3, 2017.
AMERCO will hold its investor call for the second quarter of
fiscal 2018 on Thursday, November 9,
2017, 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 September 30,
2017, 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 second quarter of fiscal 2018 and 2017.
|
|
Quarter Ended
September 30,
|
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
|
|
(In
thousands)
|
Self-moving
equipment rentals
|
$
|
740,558
|
$
|
711,710
|
Self-storage
revenues
|
|
80,472
|
|
72,163
|
Self-moving and
self-storage product and service sales
|
|
73,268
|
|
70,330
|
Property
management fees
|
|
6,831
|
|
6,712
|
Life insurance
premiums
|
|
38,862
|
|
40,893
|
Property and
casualty insurance premiums
|
|
15,026
|
|
14,009
|
Net investment
and interest income
|
|
26,469
|
|
25,590
|
Other
revenue
|
|
61,200
|
|
57,278
|
Consolidated
revenue
|
|
1,042,686
|
|
998,685
|
|
|
|
|
|
Listed below are revenues and earnings from operations at each
of our operating segments for the second quarter of fiscal 2018 and
2017.
|
|
Quarter Ended
September 30,
|
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
|
|
(In
thousands)
|
Moving and
storage
|
|
|
|
|
Revenues
|
|
965,208
|
|
920,400
|
Earnings from
operations before equity in earnings of subsidiaries
|
|
216,930
|
|
293,160
|
Property and
casualty insurance
|
|
|
|
|
Revenues
|
|
19,199
|
|
17,887
|
Earnings from
operations
|
|
6,087
|
|
7,094
|
Life
insurance
|
|
|
|
|
Revenues
|
|
60,430
|
|
61,961
|
Earnings from
operations
|
|
6,718
|
|
7,098
|
Eliminations
|
|
|
|
|
Revenues
|
|
(2,151)
|
|
(1,563)
|
Earnings from
operations before equity in earnings of subsidiaries
|
|
(354)
|
|
(372)
|
Consolidated
results
|
|
|
|
|
Revenues
|
|
1,042,686
|
|
998,685
|
Earnings from
operations
|
|
229,381
|
|
306,980
|
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
September 30,
|
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
|
|
(In thousands, except
occupancy rate)
|
Room count as of
September 30
|
|
341
|
|
294
|
Square footage as of
September 30
|
|
29,104
|
|
25,480
|
Average monthly
number of rooms occupied
|
|
249
|
|
230
|
Average monthly
occupancy rate based on room count
|
|
73.9%
|
|
78.9%
|
Average monthly
square footage occupied
|
|
22,408
|
|
20,722
|
Listed below on a consolidated basis are revenues for our major
product lines for the first six months of fiscal 2018 and 2017.
|
|
Six Months Ended
September 30,
|
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
|
|
(In
thousands)
|
Self-moving
equipment rentals
|
$
|
1,410,416
|
$
|
1,358,046
|
Self-storage
revenues
|
|
157,190
|
|
139,885
|
Self-moving and
self-storage product and service sales
|
|
152,179
|
|
147,633
|
Property
management fees
|
|
13,593
|
|
13,316
|
Life insurance
premiums
|
|
77,953
|
|
81,785
|
Property and
casualty insurance premiums
|
|
26,841
|
|
25,264
|
Net investment
and interest income
|
|
53,686
|
|
52,921
|
Other
revenue
|
|
108,753
|
|
103,026
|
Consolidated
revenue
|
|
2,000,611
|
|
1,921,876
|
Listed below are revenues and earnings from operations at each
of our operating segments for the first six months of fiscal 2018
and 2017.
|
|
Six Months Ended
September 30,
|
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
|
|
(In
thousands)
|
Moving and
storage
|
|
|
|
|
Revenues
|
$
|
1,847,735
|
$
|
1,766,231
|
Earnings from
operations before equity in earnings of subsidiaries
|
|
437,438
|
|
541,665
|
Property and
casualty insurance
|
|
|
|
|
Revenues
|
|
35,305
|
|
34,772
|
Earnings from
operations
|
|
11,523
|
|
14,597
|
Life
insurance
|
|
|
|
|
Revenues
|
|
121,086
|
|
123,756
|
Earnings from
operations
|
|
10,154
|
|
11,014
|
Eliminations
|
|
|
|
|
Revenues
|
|
(3,515)
|
|
(2,883)
|
Earnings from
operations before equity in earnings of subsidiaries
|
|
(703)
|
|
(739)
|
Consolidated
results
|
|
|
|
|
Revenues
|
|
2,000,611
|
|
1,921,876
|
Earnings from
operations
|
|
458,412
|
|
566,537
|
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:
|
|
Six Months Ended
September 30,
|
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
|
|
(In thousands, except
occupancy rate)
|
Room count as of
September 30
|
|
341
|
|
294
|
Square footage as of
September 30
|
|
29,104
|
|
25,480
|
Average monthly
number of rooms occupied
|
|
243
|
|
225
|
Average monthly
occupancy rate based on room count
|
|
73.5%
|
|
78.2%
|
Average monthly
square footage occupied
|
|
21,895
|
|
20,257
|
AMERCO AND
CONSOLIDATED ENTITIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
September
30,
|
|
March
31,
|
|
|
2017
|
|
2017
|
|
|
(Unaudited)
|
|
|
|
|
(In
thousands)
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
|
768,351
|
$
|
697,806
|
Reinsurance
recoverables and trade receivables, net
|
|
194,131
|
|
178,081
|
Inventories,
net
|
|
100,693
|
|
82,439
|
Prepaid
expenses
|
|
83,673
|
|
124,728
|
Investments, fixed
maturities and marketable equities
|
|
1,843,768
|
|
1,663,768
|
Investments,
other
|
|
395,327
|
|
367,830
|
Deferred policy
acquisition costs, net
|
|
125,936
|
|
130,213
|
Other
assets
|
|
101,767
|
|
97,525
|
Related party
assets
|
|
80,923
|
|
86,168
|
|
|
3,694,569
|
|
3,428,558
|
Property, plant and
equipment, at cost:
|
|
|
|
|
Land
|
|
684,729
|
|
648,757
|
Buildings and
improvements
|
|
2,826,712
|
|
2,618,265
|
Furniture and
equipment
|
|
564,033
|
|
510,415
|
Rental trailers and
other rental equipment
|
|
526,603
|
|
492,280
|
Rental
trucks
|
|
4,337,308
|
|
4,091,598
|
|
|
8,939,385
|
|
8,361,315
|
Less: Accumulated
depreciation
|
|
(2,551,064)
|
|
(2,384,033)
|
Total property, plant
and equipment
|
|
6,388,321
|
|
5,977,282
|
Total
assets
|
$
|
10,082,890
|
$
|
9,405,840
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Liabilities:
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
441,010
|
$
|
450,541
|
Notes, loans and
leases payable
|
|
3,422,077
|
|
3,262,880
|
Policy benefits and
losses, claims and loss expenses payable
|
|
1,099,597
|
|
1,086,322
|
Liabilities from
investment contracts
|
|
1,263,107
|
|
1,112,498
|
Other policyholders'
funds and liabilities
|
|
20,454
|
|
10,150
|
Deferred
income
|
|
32,443
|
|
28,696
|
Deferred income
taxes
|
|
911,780
|
|
835,009
|
Total
liabilities
|
|
7,190,468
|
|
6,786,096
|
|
|
|
|
|
Common
stock
|
|
10,497
|
|
10,497
|
Additional paid-in
capital
|
|
452,474
|
|
452,172
|
Accumulated other
comprehensive loss
|
|
(11,534)
|
|
(51,236)
|
Retained
earnings
|
|
3,124,152
|
|
2,892,893
|
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
|
|
(5,517)
|
|
(6,932)
|
Total stockholders'
equity
|
|
2,892,422
|
|
2,619,744
|
Total liabilities and
stockholders' equity
|
$
|
10,082,890
|
$
|
9,405,840
|
AMERCO AND
CONSOLIDATED ENTITIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
Quarter Ended
September 30,
|
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
|
|
(In thousands, except
share and per share data)
|
Revenues:
|
|
|
|
|
Self-moving equipment
rentals
|
$
|
740,558
|
$
|
711,710
|
Self-storage
revenues
|
|
80,472
|
|
72,163
|
Self-moving and
self-storage products and service sales
|
|
73,268
|
|
70,330
|
Property management
fees
|
|
6,831
|
|
6,712
|
Life insurance
premiums
|
|
38,862
|
|
40,893
|
Property and casualty
insurance premiums
|
|
15,026
|
|
14,009
|
Net investment and
interest income
|
|
26,469
|
|
25,590
|
Other
revenue
|
|
61,200
|
|
57,278
|
Total
revenues
|
|
1,042,686
|
|
998,685
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
Operating
expenses
|
|
492,482
|
|
398,213
|
Commission
expenses
|
|
83,351
|
|
80,462
|
Cost of
sales
|
|
42,866
|
|
40,952
|
Benefits and
losses
|
|
47,109
|
|
46,836
|
Amortization of
deferred policy acquisition costs
|
|
5,944
|
|
5,989
|
Lease
expense
|
|
8,575
|
|
9,349
|
Depreciation, net of
(gains) losses on disposals
|
|
132,978
|
|
109,904
|
Total costs and
expenses
|
|
813,305
|
|
691,705
|
|
|
|
|
|
Earnings from
operations
|
|
229,381
|
|
306,980
|
Interest
expense
|
|
(32,023)
|
|
(27,989)
|
Pretax
earnings
|
|
197,358
|
|
278,991
|
Income tax
expense
|
|
(72,719)
|
|
(102,516)
|
Earnings available to
common shareholders
|
$
|
124,639
|
$
|
176,475
|
Basic and diluted
earnings per common share
|
$
|
6.36
|
$
|
9.01
|
Weighted average
common shares outstanding: Basic and diluted
|
|
19,588,571
|
|
19,586,411
|
|
|
|
|
|
AMERCO AND
CONSOLIDATED ENTITIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
Six Months Ended
September 30,
|
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
|
|
(In thousands, except
share and per share data)
|
Revenues:
|
|
|
|
|
Self-moving equipment
rentals
|
$
|
1,410,416
|
$
|
1,358,046
|
Self-storage
revenues
|
|
157,190
|
|
139,885
|
Self-moving and
self-storage products and service sales
|
|
152,179
|
|
147,633
|
Property management
fees
|
|
13,593
|
|
13,316
|
Life insurance
premiums
|
|
77,953
|
|
81,785
|
Property and casualty
insurance premiums
|
|
26,841
|
|
25,264
|
Net investment and
interest income
|
|
53,686
|
|
52,921
|
Other
revenue
|
|
108,753
|
|
103,026
|
Total
revenues
|
|
2,000,611
|
|
1,921,876
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
Operating
expenses
|
|
909,406
|
|
783,295
|
Commission
expenses
|
|
158,716
|
|
154,278
|
Cost of
sales
|
|
90,461
|
|
84,314
|
Benefits and
losses
|
|
94,829
|
|
93,839
|
Amortization of
deferred policy acquisition costs
|
|
12,265
|
|
13,931
|
Lease
expense
|
|
16,862
|
|
20,397
|
Depreciation, net of
(gains) losses on disposals
|
|
259,660
|
|
205,285
|
Total costs and
expenses
|
|
1,542,199
|
|
1,355,339
|
|
|
|
|
|
Earnings from
operations
|
|
458,412
|
|
566,537
|
Interest
expense
|
|
(62,368)
|
|
(54,415)
|
Pretax
earnings
|
|
396,044
|
|
512,122
|
Income tax
expense
|
|
(145,198)
|
|
(188,474)
|
Earnings available to
common shareholders
|
$
|
250,846
|
$
|
323,648
|
Basic and diluted
earnings per common share
|
$
|
12.81
|
$
|
16.52
|
Weighted average
common shares outstanding: Basic and diluted
|
|
19,588,231
|
|
19,586,240
|
|
|
Quarter
Ended
|
|
|
September 30,
2016
|
|
|
(Unaudited)
|
(In thousands, except
share and per share amounts)
|
|
|
|
|
|
AMERCO and
Consolidated Subsidiaries
|
|
|
Earnings per common
share: basic and diluted
|
$
|
9.01
|
PEI litigation
accrual reduction, net of taxes, per common share basic and
diluted
|
|
(0.79)
|
Earnings per common
share: basic and diluted before PEI litigation accrual
reduction
|
$
|
8.22
|
|
|
|
PEI litigation
accrual reduction
|
$
|
24,600
|
Income tax
benefit
|
|
(9,053)
|
PEI litigation
accrual reduction, net of taxes
|
$
|
15,547
|
PEI litigation
accrual reduction, net of taxes, per common share basic and
diluted
|
$
|
0.79
|
Weighted average
shares outstanding: basic and diluted
|
|
19,586,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
September 30,
2016
|
|
|
(Unaudited)
|
(In thousands, except
share and per share amounts)
|
|
|
|
|
|
AMERCO and
Consolidated Subsidiaries
|
|
|
Earnings per common
share: basic and diluted
|
$
|
16.52
|
PEI litigation
accrual reduction, net of taxes, per common share basic and
diluted
|
|
(0.79)
|
Earnings per common
share: basic and diluted before PEI litigation accrual
reduction
|
$
|
15.73
|
|
|
|
PEI litigation
accrual reduction
|
$
|
24,600
|
Income tax
benefit
|
|
(9,053)
|
PEI litigation
accrual reduction, net of taxes
|
$
|
15,547
|
PEI litigation
accrual reduction, net of taxes, per common share basic and
diluted
|
$
|
0.79
|
Weighted average
shares outstanding: basic and diluted
|
|
19,586,240
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/amerco-reports-second-quarter-fiscal-2018-financial-results-300552323.html
SOURCE AMERCO