RENO, Nev., Feb. 3, 2021 /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 third quarter ended December 31, 2020, of $183.0 million, or $9.33 per share, compared with net earnings of $30.9 million, or $1.58 per share, for the same period last year.

For the nine-month period ended December 31, 2020, net earnings available to shareholders were $537.1 million, or $27.39 per share, compared with net earnings of $319.7 million, or $16.31 per share, for the same period last year.

"Our investments over the past few years have positioned us to serve new and existing moving and self-storage customers during a time when the public has particularly needed U-Haul," stated Joe Shoen, chairman of AMERCO. "Most of our marketplaces are very competitive. Our team must keep its eye on the ball to meet current demand and build for the future."

Highlights of Third Quarter Fiscal 2021 Results

  • Self-moving equipment rental revenues increased $186.7 million or 30% during the third quarter of fiscal 2021, compared with the third quarter of fiscal 2020. Transactions along with average revenue per transaction increased for both our In-town and one-way markets. During the quarter, we experienced an increase in the volume of our Corporate Account business. Compared with 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 $16.3 million, or 15% during the third quarter of fiscal 2021, compared with the third quarter of fiscal 2020. The average monthly number of occupied units increased by 20%, or 65,000 units, during the third 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 4.1 million net rentable square feet, or a 10% increase, with approximately 1.0 million of that coming on during the third quarter of fiscal 2021.
  • Sales of self-moving and self-storage products and services increased $20.1 million, or 37% compared with the third quarter of fiscal 2021 due to increased sales of hitches, moving supplies and propane.
  • For the third quarter of fiscal 2021 compared with the third quarter of fiscal 2020, depreciation, net of gains and losses on sales decreased $17.5 million. Depreciation expense on the rental equipment fleet decreased $9.5 million as new truck production has been slowed by COVID-19 related production delays earlier this year, while net gains on the disposal of rental equipment increased $13.1 million from higher resale values. All other depreciation increased $5.1 million due primarily to the increase in new moving and storage locations.
  • For the first nine months of fiscal 2021 and fiscal 2020, gross truck and trailer capital expenditures totaled approximately $541 million compared with $1,161 million, proceeds from the sales of rental equipment totaled $430 million compared with $591 million and spending on real estate related acquisitions and projects totaled approximately $365 million compared with $600 million, respectively.
  • Fleet maintenance and repair costs increased $2.9 million in the third quarter of fiscal 2021 compared with the same period last year.
  • Operating earnings at our Moving and Storage operating segment increased $202.2 million in the third quarter of fiscal 2021 compared with the same period last year. Total revenues increased $238.9 million and total costs and expenses increased $36.7 million.
  • Cash and credit availability at the Moving and Storage operating segment was $1,343.3 million at December 31, 2020 compared with $498.1 million at March 31, 2020.
  • On December 9, 2020, we declared a cash dividend on our Common Stock of $2.00 per share to holders of record on December 21, 2020. The dividend was paid on December 30, 2020.

AMERCO will hold its investor call for the third quarter of fiscal 2021 on Thursday, February 4, 2021, 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 December 31, 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 third quarter of fiscal 2021 and 2020.



Quarter Ended December 31,



2020


2019



(Unaudited)



(In thousands)

Self-moving equipment rentals

$

808,215

$

621,471

Self-storage revenues


123,024


106,701

Self-moving and self-storage product and service sales


74,586


54,454

Property management fees


8,765


9,098

Life insurance premiums


29,993


31,164

Property and casualty insurance premiums


19,933


19,267

Net investment and interest income


35,580


33,782

Other revenue


69,886


51,943

Consolidated revenue

$

1,169,982

$

927,880

 

Listed below are revenues and earnings from operations at each of our operating segments for the third quarter of fiscal 2021 and 2020.



Quarter Ended December 31,



2020


2019



(Unaudited)



(In thousands)

Moving and storage





Revenues

$

1,085,281

$

846,364

Earnings from operations before equity in earnings of subsidiaries


264,004


61,769

Property and casualty insurance 





Revenues


26,640


25,366

Earnings from operations


11,491


9,884

Life insurance  





Revenues


61,077


58,889

Earnings from operations


8,724


9,190

Eliminations





Revenues


(3,016)


(2,739)

Earnings from operations before equity in earnings of subsidiaries


(273)


(278)

Consolidated Results





Revenues


1,169,982


927,880

Earnings from operations


283,946


80,565

 

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 December 31,



2020


2019



(Unaudited)



(In thousands, except occupancy rate)

Unit count as of December 31


532


487

Square footage as of December 31


44,948


40,835

Average monthly number of units occupied


388


323

Average monthly occupancy rate based on unit count


73.4%


66.9%

Average monthly square footage occupied


34,802


29,318

 

Listed below on a consolidated basis are revenues for our major product lines for the first nine months of fiscal 2021 and 2020.



Nine Months Ended December 31,



2020


2019



(Unaudited)



(In thousands)

Self-moving equipment rentals

$

2,393,530

$

2,174,392

Self-storage revenues


347,252


309,940

Self-moving and self-storage product and service sales


264,564


207,601

Property management fees


23,952


23,487

Life insurance premiums


91,958


96,229

Property and casualty insurance premiums


49,536


51,056

Net investment and interest income


85,895


102,629

Other revenue


225,440


192,009

Consolidated revenue

$

3,482,127

$

3,157,343

 

Listed below are revenues and earnings from operations at each of our operating segments for the first nine months of fiscal 2021 and 2020.



Nine Months Ended December 31,



2020


2019



(Unaudited)



(In thousands)

Moving and storage





Revenues

$

3,256,899


2,916,314

Earnings from operations before equity in earnings of subsidiaries


789,621


492,652

Property and casualty insurance 





Revenues


62,947


69,199

Earnings from operations


24,338


27,442

Life insurance  





Revenues


170,290


179,069

Earnings from operations


16,684


19,912

Eliminations





Revenues


(8,009)


(7,239)

Earnings from operations before equity in earnings of subsidiaries


(821)


(836)

Consolidated Results





Revenues


3,482,127


3,157,343

Earnings from operations


829,822


539,170

 

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:




Nine Months Ended December 31,



2020


2019



(Unaudited)



(In thousands, except occupancy rate)

Unit count as of December 31


532


487

Square footage as of December 31


44,948


40,835

Average monthly number of units occupied


369


316

Average monthly occupancy rate based on unit count


71.0%


68.2%

Average monthly square footage occupied


33,036


28,646

 

 

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED BALANCE SHEETS




December 31,


March 31,



2020


2020



(Unaudited)





(In thousands)

ASSETS





Cash and cash equivalents

$

1,398,840

$

494,352

Reinsurance recoverables and trade receivables, net


224,447


186,672

Inventories and parts, net


104,180


101,083

Prepaid expenses


450,889


562,904

Investments, fixed maturities and marketable equities


2,606,953


2,492,738

Investments, other


447,902


360,373

Deferred policy acquisition costs, net


92,139


103,118

Other assets


44,261


71,956

Right of use assets – financing, net


920,321


1,080,353

Right of use assets - operating


97,186


106,631

Related party assets


34,963


34,784



6,422,081


5,594,964

Property, plant and equipment, at cost:





   Land


1,059,177


1,032,945

   Buildings and improvements


4,996,900


4,663,461

   Furniture and equipment


778,732


752,363

   Rental trailers and other rental equipment


552,892


511,520

   Rental trucks


3,629,888


3,595,933



11,017,589


10,556,222

Less: Accumulated depreciation


(2,992,365)


(2,713,162)

   Total property, plant and equipment, net


8,025,224


7,843,060

Total assets

$

14,447,305

$

13,438,024

LIABILITIES AND STOCKHOLDERS' EQUITY





Liabilities:





   Accounts payable and accrued expenses

$

608,765

$

554,353

   Notes, loans and finance/capital leases payable, net


4,678,227


4,621,291

   Operating lease liability


97,224


106,443

   Policy benefits and losses, claims and loss expenses payable


1,013,582


997,647

   Liabilities from investment contracts


1,997,936


1,802,217

   Other policyholders' funds and liabilities


34,867


10,190

   Deferred income


37,005


31,620

   Deferred income taxes, net


1,222,544


1,093,543

Total liabilities


9,690,150


9,217,304






Common stock


10,497


10,497

Additional paid-in capital


453,819


453,819

Accumulated other comprehensive income


85,910


34,652

Retained earnings


4,884,579


4,399,402

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


-


-

Total stockholders' equity


4,757,155


4,220,720

Total liabilities and stockholders' equity

$

14,447,305

$

13,438,024


 

 

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




Quarter Ended December 31,



2020


2019



(Unaudited)



(In thousands, except share and per share data)

Revenues:





Self-moving equipment rentals

$

808,215

$

621,471

Self-storage revenues


123,024


106,701

Self-moving and self-storage products and service sales


74,586


54,454

Property management fees


8,765


9,098

Life insurance premiums


29,993


31,164

Property and casualty insurance premiums


19,933


19,267

Net investment and interest income


35,580


33,782

Other revenue


69,886


51,943

     Total revenues


1,169,982


927,880






Costs and expenses:





Operating expenses


539,942


517,453

Commission expenses


86,891


66,542

Cost of sales


45,752


35,318

Benefits and losses


45,631


42,864

Amortization of deferred policy acquisition costs


6,572


8,046

Lease expense


7,522


6,490

Depreciation, net of (gains)/losses on disposal


152,602


170,074

Net losses on disposal of real estate


1,124


528

     Total costs and expenses


886,036


847,315






Earnings from operations


283,946


80,565

Other components of net periodic benefit costs


(247)


(263)

Interest expense


(42,128)


(39,973)

Pretax earnings


241,571


40,329

Income tax expense


(58,586)


(9,397)

Earnings available to common shareholders

$

182,985

$

30,932

Basic and diluted earnings per common share

$

9.33

$

1.58

Weighted average common shares outstanding: Basic and diluted


19,607,788


19,607,788

 

 

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




Nine Months Ended December 31,



2020


2019



(Unaudited)



(In thousands, except share and per share data)

Revenues:





Self-moving equipment rentals

$

2,393,530

$

2,174,392

Self-storage revenues


347,252


309,940

Self-moving and self-storage products and service sales


264,564


207,601

Property management fees


23,952


23,487

Life insurance premiums


91,958


96,229

Property and casualty insurance premiums


49,536


51,056

Net investment and interest income


85,895


102,629

Other revenue


225,440


192,009

     Total revenues


3,482,127


3,157,343






Costs and expenses:





Operating expenses


1,606,687


1,617,338

Commission expenses


255,431


233,540

Cost of sales


159,516


128,177

Benefits and losses


130,660


137,695

Amortization of deferred policy acquisition costs


19,012


20,625

Lease expense


20,995


19,882

Depreciation, net of gains on disposal


455,711


462,227

Net (gains) losses on disposal of real estate


4,293


(1,311)

     Total costs and expenses


2,652,305


2,618,173






Earnings from operations


829,822


539,170

Other components of net periodic benefit costs


(740)


(790)

Interest expense


(122,174)


(117,983)

Pretax earnings


706,908


420,397

Income tax expense


(169,832)


(100,717)

Earnings available to common shareholders

$

537,076

$

319,680

Basic and diluted earnings per common share

$

27.39

$

16.31

Weighted average common shares outstanding: Basic and diluted


19,607,788


19,602,484

 

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 December 31, 2020, the balance of ROU-financing also includes the rental equipment purchased under new financing liability leases during the first nine months of fiscal 2021. The table below shows adjusted PPE as of December 31, 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.







December 31,


March 31,








2020


2020




December 31,


ROU Assets


Property, Plant
and Equipment


Property,
Plant and
Equipment




2020


Financing


Adjusted


Adjusted




(Unaudited)





(In thousands)











Property, plant and equipment, at cost










Land

$

1,059,177

$

-

$

1,059,177

$

1,032,945


Buildings and improvements


4,996,900


-


4,996,900


4,663,461


Furniture and equipment


778,732


20,966


799,698


773,476


Rental trailers and other rental equipment


552,892


106,961


659,853


627,592


Rental trucks


3,629,888


1,614,194


5,244,082


5,334,014


    Subtotal


11,017,589


1,742,121


12,759,710


12,431,488


Less: Accumulated depreciation


(2,992,365)


(821,800)


(3,814,165)


(3,508,075)


Total property, plant and equipment, net

$

8,025,224

$

920,321

$

8,945,545

$

8,923,413


                                                                                                                                                 

 

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SOURCE AMERCO

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