RENO, Nev., Nov. 4, 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
second quarter ended September 30,
2020, of $266.4 million, or
$13.58 per share, compared with net
earnings of $156.3 million, or
$7.97 per share, for the same period
last year.
For the six-month period ended September
30, 2020, net earnings available to shareholders were
$354.1 million, or $18.06 per share, compared with net earnings of
$288.7 million, or $14.73 per share, for the same period last
year.
"We drastically cut rental equipment additions in March as OEM
plants closed and we prepared for the worst. Likewise, we cut real
estate acquisition and development investment. It will take about
two years to normalize rental equipment investment, probably longer
on real estate investment," stated Joe
Shoen, chairman of AMERCO. "In both self-storage and
self-move, we are in very competitive markets. This remains a close
game. We are committed to winning. Over the last 7 months, we have
simply outworked our peer group. No one knows what next year will
bring."
Highlights of Second Quarter Fiscal 2021 Results
- Self-moving equipment rental revenues increased $126.7 million or 16% during the second quarter
of fiscal 2021, compared with the second quarter of fiscal 2020. As
government-imposed restrictions on public activity have lessened
and customer behavior has evolved, revenue and transactions for
both our In-town and one-way markets improved for trucks and
trailers. For July, August and September revenues increased by
approximately 11%, 14% and 24%, 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 $10.3
million or 10% during the second quarter of fiscal 2021,
compared with the second quarter of fiscal 2020. The average
monthly number of occupied units increased by 15%, or 50,000 units,
during the second quarter of fiscal 2021 compared with the same
period 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 added approximately 4.4 million net rentable
square feet, or an 11% increase, with approximately 0.6 million of
that coming on during the second quarter of fiscal 2021.
- Sales of self-moving and self-storage products and services
increased $25.5 million, or 35%
compared with the second quarter of fiscal 2020 due to increased
sales of hitches, moving supplies and propane.
- For the second quarter of fiscal 2021 compared with the second
quarter of fiscal 2020, depreciation, net of gains and losses on
sales decreased $14.1 million.
Depreciation expense on the rental equipment fleet decreased
$10.5 million as new truck production
has been slowed by COVID-19 related delays at manufacturers, while
gains on the sales of rental trucks increased $10.1 million from higher resale values and
additional box truck sales. All other depreciation increased
$6.5 million from the increase in new
moving and storage locations.
- For the first six months of fiscal 2021 and fiscal 2020 gross
truck and trailer capital expenditures were approximately
$395 million compared with
$1,037 million, proceeds from the
sales of rental equipment were $310
million compared with $397
million and spending on real estate related acquisitions and
projects were approximately $226
million compared with $423
million.
- Fleet maintenance and repair costs decreased $6.8 million in the second quarter of fiscal 2021
compared with the same period last year.
- Operating earnings at our Moving and Storage operating segment
increased $145.0 million in the
second quarter of fiscal 2021 compared with the same period last
year. Total revenues climbed $175.8
million and total costs and expenses increased $30.8 million.
- Cash and credit availability at the Moving and Storage
operating segment was $1,293.3
million at September 30, 2020
compared with $498.1 million at
March 31, 2020.
- On August 20, 2020, we declared a
cash dividend on our Common Stock of $0.50 per share to holders of record on
September 7, 2020. The dividend was
paid on September 21, 2020.
AMERCO will hold its investor call for the second quarter of
fiscal 2021 on Thursday, November 5,
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 September 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 second quarter of fiscal 2021 and 2020.
|
|
Quarter Ended
September 30,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
|
(In
thousands)
|
Self-moving equipment
rentals
|
$
|
931,030
|
$
|
804,325
|
Self-storage
revenues
|
|
115,273
|
|
104,965
|
Self-moving and
self-storage product and service sales
|
|
98,628
|
|
73,121
|
Property management
fees
|
|
7,840
|
|
7,233
|
Life insurance
premiums
|
|
31,057
|
|
32,355
|
Property and casualty
insurance premiums
|
|
15,869
|
|
18,365
|
Net investment and
interest income
|
|
33,333
|
|
33,098
|
Other
revenue
|
|
91,878
|
|
76,752
|
Consolidated
revenue
|
$
|
1,324,908
|
$
|
1,150,214
|
|
|
|
|
|
Listed below are revenues and earnings from operations at each
of our operating segments for the second quarter of fiscal 2021 and
2020.
|
|
Quarter Ended
September 30,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
|
(In
thousands)
|
Moving and
storage
|
|
|
|
|
Revenues
|
$
|
1,245,318
|
$
|
1,069,552
|
Earnings from
operations before equity in earnings of subsidiaries
|
|
373,956
|
|
228,987
|
Property and casualty
insurance
|
|
|
|
|
Revenues
|
|
22,673
|
|
23,528
|
Earnings from
operations
|
|
12,069
|
|
9,092
|
Life
insurance
|
|
|
|
|
Revenues
|
|
59,560
|
|
59,859
|
Earnings from
operations
|
|
6,040
|
|
6,941
|
Eliminations
|
|
|
|
|
Revenues
|
|
(2,643)
|
|
(2,725)
|
Earnings from
operations before equity in earnings of subsidiaries
|
|
(275)
|
|
(280)
|
Consolidated
Results
|
|
|
|
|
Revenues
|
|
1,324,908
|
|
1,150,214
|
Earnings from
operations
|
|
391,790
|
|
244,740
|
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,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
|
(In thousands, except
occupancy rate)
|
Unit count as of
September 30
|
|
520
|
|
471
|
Square footage as of
September 30
|
|
43,985
|
|
39,629
|
Average monthly
number of units occupied
|
|
373
|
|
323
|
Average monthly
occupancy rate based on unit count
|
|
71.9%
|
|
69.5%
|
Average monthly
square footage occupied
|
|
33,296
|
|
29,200
|
Listed below on a consolidated basis are revenues for our major
product lines for the first six months of fiscal 2021 and 2020.
|
|
Six Months Ended
September 30,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
|
(In
thousands)
|
Self-moving equipment
rentals
|
$
|
1,585,315
|
$
|
1,552,921
|
Self-storage
revenues
|
|
224,228
|
|
203,239
|
Self-moving and
self-storage product and service sales
|
|
189,978
|
|
153,147
|
Property management
fees
|
|
15,187
|
|
14,389
|
Life insurance
premiums
|
|
61,965
|
|
65,065
|
Property and casualty
insurance premiums
|
|
29,603
|
|
31,789
|
Net investment and
interest income
|
|
50,315
|
|
68,847
|
Other
revenue
|
|
155,554
|
|
140,066
|
Consolidated
revenue
|
$
|
2,312,145
|
$
|
2,229,463
|
Listed below are revenues and earnings from operations at each
of our operating segments for the first six months of fiscal 2021
and 2020.
|
|
Six Months Ended
September 30,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
|
(In
thousands)
|
Moving and
storage
|
|
|
|
|
Revenues
|
|
2,171,618
|
|
2,069,950
|
Earnings from
operations before equity in earnings of subsidiaries
|
|
525,617
|
|
430,883
|
Property and casualty
insurance
|
|
|
|
|
Revenues
|
|
36,307
|
|
43,833
|
Earnings from
operations
|
|
12,847
|
|
17,558
|
Life
insurance
|
|
|
|
|
Revenues
|
|
109,213
|
|
120,180
|
Earnings from
operations
|
|
7,960
|
|
10,722
|
Eliminations
|
|
|
|
|
Revenues
|
|
(4,993)
|
|
(4,500)
|
Earnings from
operations before equity in earnings of subsidiaries
|
|
(548)
|
|
(558)
|
Consolidated
Results
|
|
|
|
|
Revenues
|
|
2,312,145
|
|
2,229,463
|
Earnings from
operations
|
|
545,876
|
|
458,605
|
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,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
|
(In thousands, except
occupancy rate)
|
Unit count as of
September 30
|
|
520
|
|
471
|
Square footage as of
September 30
|
|
43,985
|
|
39,629
|
Average monthly
number of units occupied
|
|
360
|
|
313
|
Average monthly
occupancy rate based on unit count
|
|
69.8%
|
|
69.0%
|
Average monthly
square footage occupied
|
|
32,153
|
|
28,310
|
AMERCO AND
CONSOLIDATED ENTITIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
September
30,
|
|
March
31,
|
|
|
2020
|
|
2020
|
|
|
(Unaudited)
|
|
|
|
|
(In
thousands)
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,215,568
|
$
|
494,352
|
Reinsurance
recoverables and trade receivables, net
|
|
213,397
|
|
186,672
|
Inventories and
parts, net
|
|
100,595
|
|
101,083
|
Prepaid
expenses
|
|
447,073
|
|
562,904
|
Investments, fixed
maturities and marketable equities
|
|
2,495,342
|
|
2,492,738
|
Investments,
other
|
|
425,527
|
|
360,373
|
Deferred policy
acquisition costs, net
|
|
93,407
|
|
103,118
|
Other
assets
|
|
71,314
|
|
71,956
|
Right of use assets –
financing, net
|
|
970,361
|
|
1,080,353
|
Right of use assets -
operating
|
|
101,946
|
|
106,631
|
Related party
assets
|
|
32,397
|
|
34,784
|
|
|
6,166,927
|
|
5,594,964
|
Property, plant and
equipment, at cost:
|
|
|
|
|
Land
|
|
1,052,205
|
|
1,032,945
|
Buildings and improvements
|
|
4,863,590
|
|
4,663,461
|
Furniture and equipment
|
|
767,290
|
|
752,363
|
Rental
trailers and other rental equipment
|
|
531,465
|
|
511,520
|
Rental
trucks
|
|
3,644,674
|
|
3,595,933
|
|
|
10,859,224
|
|
10,556,222
|
Less: Accumulated
depreciation
|
|
(2,902,673)
|
|
(2,713,162)
|
Total
property, plant and equipment, net
|
|
7,956,551
|
|
7,843,060
|
Total
assets
|
$
|
14,123,478
|
$
|
13,438,024
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Liabilities:
|
|
|
|
|
Accounts
payable and accrued expenses
|
$
|
630,666
|
$
|
554,353
|
Notes,
loans and finance/capital leases payable, net
|
|
4,701,225
|
|
4,621,291
|
Operating lease liability
|
|
101,976
|
|
106,443
|
Policy
benefits and losses, claims and loss expenses payable
|
|
1,015,189
|
|
997,647
|
Liabilities from investment contracts
|
|
1,838,280
|
|
1,802,217
|
Other
policyholders' funds and liabilities
|
|
5,426
|
|
10,190
|
Deferred
income
|
|
41,715
|
|
31,620
|
Deferred
income taxes, net
|
|
1,183,370
|
|
1,093,543
|
Total
liabilities
|
|
9,517,847
|
|
9,217,304
|
|
|
|
|
|
Common
stock
|
|
10,497
|
|
10,497
|
Additional paid-in
capital
|
|
453,819
|
|
453,819
|
Accumulated other
comprehensive income
|
|
78,156
|
|
34,652
|
Retained
earnings
|
|
4,740,809
|
|
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
|
|
4,605,631
|
|
4,220,720
|
Total liabilities and
stockholders' equity
|
$
|
14,123,478
|
$
|
13,438,024
|
AMERCO AND
CONSOLIDATED ENTITIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
Quarter Ended
September 30,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
|
(In thousands, except
share and per share data)
|
Revenues:
|
|
|
|
|
Self-moving equipment
rentals
|
$
|
931,030
|
$
|
804,325
|
Self-storage
revenues
|
|
115,273
|
|
104,965
|
Self-moving and
self-storage products and service sales
|
|
98,628
|
|
73,121
|
Property management
fees
|
|
7,840
|
|
7,233
|
Life insurance
premiums
|
|
31,057
|
|
32,355
|
Property and casualty
insurance premiums
|
|
15,869
|
|
18,365
|
Net investment and
interest income
|
|
33,333
|
|
33,098
|
Other
revenue
|
|
91,878
|
|
76,752
|
Total revenues
|
|
1,324,908
|
|
1,150,214
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
Operating
expenses
|
|
574,083
|
|
565,413
|
Commission
expenses
|
|
99,365
|
|
86,099
|
Cost of
sales
|
|
60,933
|
|
43,930
|
Benefits and
losses
|
|
45,452
|
|
45,825
|
Amortization of
deferred policy acquisition costs
|
|
5,552
|
|
6,515
|
Lease
expense
|
|
6,870
|
|
6,356
|
Depreciation, net of
gains on disposals
|
|
137,438
|
|
151,553
|
Net (gains) losses on
real estate
|
|
3,425
|
|
(217)
|
Total costs and
expenses
|
|
933,118
|
|
905,474
|
|
|
|
|
|
Earnings from
operations
|
|
391,790
|
|
244,740
|
Other components of
net periodic benefit costs
|
|
(246)
|
|
(264)
|
Interest
expense
|
|
(40,525)
|
|
(39,122)
|
Pretax
earnings
|
|
351,019
|
|
205,354
|
Income tax
expense
|
|
(84,654)
|
|
(49,028)
|
Earnings available to
common shareholders
|
$
|
266,365
|
$
|
156,326
|
Basic and diluted
earnings per common share
|
$
|
13.58
|
$
|
7.97
|
Weighted average
common shares outstanding: Basic and diluted
|
|
19,607,788
|
|
19,602,566
|
AMERCO AND
CONSOLIDATED ENTITIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
Six Months Ended
September 30,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
|
(In thousands, except
share and per share data)
|
Revenues:
|
|
|
|
|
Self-moving equipment
rentals
|
$
|
1,585,315
|
$
|
1,552,921
|
Self-storage
revenues
|
|
224,228
|
|
203,239
|
Self-moving and
self-storage products and service sales
|
|
189,978
|
|
153,147
|
Property management
fees
|
|
15,187
|
|
14,389
|
Life insurance
premiums
|
|
61,965
|
|
65,065
|
Property and casualty
insurance premiums
|
|
29,603
|
|
31,789
|
Net investment and
interest income
|
|
50,315
|
|
68,847
|
Other
revenue
|
|
155,554
|
|
140,066
|
Total revenues
|
|
2,312,145
|
|
2,229,463
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
Operating
expenses
|
|
1,066,745
|
|
1,099,885
|
Commission
expenses
|
|
168,540
|
|
166,998
|
Cost of
sales
|
|
113,764
|
|
92,859
|
Benefits and
losses
|
|
85,029
|
|
94,831
|
Amortization of
deferred policy acquisition costs
|
|
12,440
|
|
12,579
|
Lease
expense
|
|
13,473
|
|
13,392
|
Depreciation, net of
gains on disposals
|
|
303,109
|
|
292,153
|
Net (gains) losses on
real estate
|
|
3,169
|
|
(1,839)
|
Total costs and
expenses
|
|
1,766,269
|
|
1,770,858
|
|
|
|
|
|
Earnings from
operations
|
|
545,876
|
|
458,605
|
Other components of
net periodic benefit costs
|
|
(493)
|
|
(527)
|
Interest
expense
|
|
(80,046)
|
|
(78,010)
|
Pretax
earnings
|
|
465,337
|
|
380,068
|
Income tax
expense
|
|
(111,246)
|
|
(91,320)
|
Earnings available to
common shareholders
|
$
|
354,091
|
|
288,748
|
Basic and diluted
earnings per common share
|
$
|
18.06
|
$
|
14.73
|
Weighted average
common shares outstanding: Basic and diluted
|
|
19,607,788
|
|
19,600,211
|
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
September 30, 2020, the balance of
ROU-financing also includes the rental equipment purchased under
new financing liability leases during the first six months of
fiscal 2021. The table below shows adjusted PPE as of September 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.
|
|
|
|
|
|
September
30,
|
|
March
31,
|
|
|
|
|
|
|
|
2020
|
|
2020
|
|
|
|
September
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
|
$
|
1,052,205
|
$
|
-
|
$
|
1,052,205
|
$
|
1,032,945
|
|
Buildings and
improvements
|
|
4,863,590
|
|
-
|
|
4,863,590
|
|
4,663,461
|
|
Furniture and
equipment
|
|
767,290
|
|
20,965
|
|
788,255
|
|
773,476
|
|
Rental trailers and
other rental equipment
|
|
531,465
|
|
115,875
|
|
647,340
|
|
627,592
|
|
Rental
trucks
|
|
3,644,674
|
|
1,637,456
|
|
5,282,130
|
|
5,334,014
|
|
Right-of-use assets,
gross
|
|
10,859,224
|
|
1,774,296
|
|
12,633,520
|
|
12,431,488
|
|
Less: Accumulated
depreciation
|
|
(2,902,673)
|
|
(803,935)
|
|
(3,706,608)
|
|
(3,508,075)
|
|
Total property, plant
and equipment, net
|
$
|
7,956,551
|
$
|
970,361
|
$
|
8,926,912
|
$
|
8,923,413
|
|
View original
content:http://www.prnewswire.com/news-releases/amerco-reports-second-quarter-fiscal-2021-financial-results-301166664.html
SOURCE AMERCO