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


 

Cision View original content:http://www.prnewswire.com/news-releases/amerco-reports-second-quarter-fiscal-2021-financial-results-301166664.html

SOURCE AMERCO

Copyright 2020 PR Newswire

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