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
|
|
View original
content:http://www.prnewswire.com/news-releases/amerco-reports-third-quarter-fiscal-2021-financial-results-301221656.html
SOURCE AMERCO