AMERCO Reports First Quarter Fiscal 2012 Financial Results

News provided by

AMERCO

Aug 03, 2011, 04:25 ET

RENO, Nev., Aug. 3, 2011 /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 common shareholders for its first quarter ended June 30, 2011, of $69.2 million, or $3.56 per share, compared with net earnings of $63.3 million, or $3.26 per share, for the same period last year.  The first quarter of fiscal 2012 included a $0.30 per share one-time charge related to the redemption of our Series A 8 1/2% Preferred Stock.

"Our focus on the long-term improvement in our core moving and storage programs continues, we are implementing programs today that will benefit the Company well into the future," stated Joe Shoen, chairman of AMERCO.  "While we view our business cycle as much longer than just quarter to quarter, we are currently experiencing positive results that are due in part to decisions made years ago."

Highlights of First Quarter Fiscal 2012 Results

  • Self-moving equipment rental revenues increased $27.1 million, or 6.5% for the first quarter of fiscal 2012 compared with the first quarter of fiscal 2011.  Increased demand for our products and services combined with improved utilization and greater fleet capacity led to more In-town and one-way transactions during the quarter.  The $446.5 million of self-moving equipment rental revenues is a record high for first quarter U-Move revenue.  
  • Self-storage revenues increased $3.6 million for the first quarter of fiscal 2012 compared with the first quarter of fiscal 2011.  The average number of occupied rooms during the quarter increased 8.4% compared with the same period last year.  We added nearly 398,000 of net rentable square feet during the quarter and 1,068,000 over the last four quarters.  
  • Operating expenses at the Moving and Storage segment increased $17.3 million for the first quarter of fiscal 2012 compared with the first quarter of fiscal 2011, due largely to spending on rental equipment maintenance and personnel.
  • On June 1, 2011 the Company redeemed all 6,100,000 shares of its issued and outstanding Series A 8 1/2% Preferred Stock at a redemption price of $25 per share plus accrued dividends through that date.  We recorded a one-time charge of $5.9 million during the quarter for the difference between the redemption price and the carrying value of the preferred shares on our balance sheet just prior to the redemption.
  • We are holding our 2011 Virtual Analyst and Investor meeting on Thursday, August 25, 2011.  This is an opportunity to interact directly with senior management of the Company through a live video webcast.

AMERCO will hold its investor call for the first quarter of fiscal 2012 on Thursday, August 4, 2011, at 8 a.m. Arizona Time (11 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. 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.

Since 1945, U-Haul has been the choice for the do-it-yourself mover, with a network of more than 16,300 locations in all 50 States and 10 Canadian provinces. U-Haul customers' patronage has enabled the Company to maintain the largest rental fleet in the "do-it-yourself" moving industry with approximately 101,000 trucks, 82,000 trailers and 33,000 towing devices. U-Haul offers nearly 415,000 rooms and approximately 36.7 million square feet of storage space at nearly 1,115 owned and managed facilities throughout North America. U-Haul is the consumer's number one choice as the largest installer of permanent trailer hitches in the automotive aftermarket industry. The Company supplies alternative-fuel for vehicles and backyard barbecues as one of the nation's largest retailers of propane.

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 June 30, 2011, 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 first quarter of fiscal 2012 and 2011.


Quarter Ended June 30,


2011

2010


(Unaudited)


(In thousands)

Revenue:



 Self-moving equipment rentals

$

446,548

$

419,463

 Self-storage revenues

31,828

28,227

 Self-moving and self-storage products and service sales                                                    

64,378

63,290

 Property management fees

4,735

4,536

 Life insurance premiums

50,999

37,803

 Property and casualty insurance premiums

6,898

6,179

 Net investment and interest income

17,263

13,355

 Other revenue

20,316

13,094

   Consolidated revenue

$

642,965

$

585,947

Listed below are revenues and earnings from operations at each of our operating segments for the first quarter of fiscal 2012 and 2011.




Quarter Ended June 30,


2011

2010


(Unaudited)


(In thousands)

Moving and storage



  Revenues

$

574,999

$

535,158

  Earnings from operations

147,271

126,435

Property and casualty insurance



  Revenues

9,132

8,094

  Earnings from operations

1,899

1,397

Life insurance



  Revenues

59,999

43,842

  Earnings from operations

2,035

3,403

Eliminations



 Revenues

(1,165)

(1,147)

 Earnings from operations

(2,842)

(3,126)

Consolidated results



 Revenues

642,965

585,947

 Earnings from operations

148,363

128,109

The Company owns and manages self-storage facilities. Self-storage revenues reported in the consolidated financial statements represent Company-owned locations only. U-Haul also provides property management services for storage locations and earns a fee for these services. These storage centers are not owned by the Company and therefore are not reported on the balance sheet and the rental revenues are not reported in the statements of operations. Self-storage data for both our owned and managed locations follows:

Quarter Ended June 30,

2011

2010

(Unaudited)

(In thousands, except occupancy rate)

Room count as of June 30

415

403

Square footage as of June 30

36,741

35,624

Average number of rooms occupied

324

312

Average occupancy rate based on room count

78.4%

77.4%

Average square footage occupied

29,314

28,224

AMERCO AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS



June 30, 2011

March 31, 2011


(Unaudited)

ASSETS

(In thousands, except share data)

 Cash and cash equivalents

$

243,753

$

375,496

 Reinsurance recoverables and trade receivables, net

242,491

205,371

 Inventories, net

58,960

59,942

 Prepaid expenses

56,474

57,624

 Investments, fixed maturities and marketable equities

664,550

659,809

 Investments, other

206,552

201,868

 Deferred policy acquisition costs, net

54,420

52,870

 Other assets

128,656

166,633

 Related party assets

304,915

301,968


1,960,771

2,081,581





 Property, plant and equipment, at cost:



   Land

239,293

239,177

   Buildings and improvements

1,043,719

1,024,669

   Furniture and equipment

308,944

310,671

   Rental trailers and other rental equipment

252,905

249,700

   Rental trucks

1,723,159

1,611,763


3,568,020

3,435,980

 Less: Accumulated depreciation

(1,354,335)

(1,341,407)

   Total property, plant and equipment

2,213,685

2,094,573

 Total assets

$

4,174,456

$

4,176,154





LIABILITIES AND STOCKHOLDERS' EQUITY








Liabilities:



 Accounts payable and accrued expenses

$

324,021

$

304,006

 Notes, loans and leases payable

1,412,500

1,397,842

 Policy benefits and losses, claims and loss expenses payable

932,117

927,376

 Liabilities from investment contracts

241,202

246,717

 Other policyholders' funds and liabilities

7,632

8,727

 Deferred income

35,547

27,209

 Deferred income taxes

301,697

271,257

Total liabilities

3,254,716

3,183,134





Stockholders' equity:



 Common stock


10,497

10,497

 Additional paid-in capital

432,000

425,212

 Accumulated other comprehensive loss

(51,245)

(46,467)

 Retained earnings

1,209,240

1,140,002

 Cost of common shares in treasury, net (22,377,912 shares as of June 30  

 and March 31, 2011)

(525,653)

(525,653)

 Cost of preferred shares in treasury, net (6,100,000 as of June 30, 2011

 and 308,300 as of March 31, 2011)

(151,997)

(7,189)

 Unearned employee stock ownership plan shares

(3,102)

(3,382)

Total stockholders' equity

919,740

993,020

Total liabilities and stockholders' equity

$

4,174,456

$

4,176,154

AMERCO AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



Quarter Ended June 30,


2011

2010


(Unaudited)


(In thousands, except share and per share data)

Revenues:

 Self-moving equipment rentals

$

446,548

$

419,463

 Self-storage revenues

31,828

28,227

 Self-moving and self-storage products and service sales

64,378

63,290

 Property management fees

4,735

4,536

 Life insurance premiums

50,999

37,803

 Property and casualty insurance premiums

6,898

6,179

 Net investment and interest income

17,263

13,355

 Other revenue

20,316

13,094

   Total revenues

642,965

585,947





Costs and expenses:



 Operating expenses

271,975

253,134

 Commission expenses

56,952

52,169

 Cost of sales

32,778

31,665

 Benefits and losses

49,930

35,422

 Amortization of deferred policy acquisition costs

4,375

2,193

 Lease expense

34,234

38,666

 Depreciation, net of (gains) on disposals of (($9,710) and ($8,388), respectively)

44,358

44,589

   Total costs and expenses

494,602

457,838





Earnings from operations

148,363

128,109

 Interest expense

(22,633)

(21,464)

Pretax earnings

125,730

106,645

 Income tax expense

(47,507)

(40,143)

Net earnings

78,223

66,502

 Less: Excess of redemption value over carrying value of preferred shares

 redeemed

(5,908)

(31)

 Less: Preferred stock dividends

(3,077)

(3,156)

Earnings available to common shareholders

$

69,238

$

63,315

Basic and diluted earnings per common share

$

3.56

$

3.26

Weighted average common shares outstanding: Basic and diluted

19,460,126

19,414,815

Non-GAAP Financial Measure


Impact of Redemption of Preferred Stock on Earnings Per Share:

Excess of redemption value over carrying value of preferred shares redeemed

$5,908


Weighted average common shares outstanding: Basic and diluted

19,460,126


Earnings per share impact

$0.30

SOURCE AMERCO

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