U-HAUL HOLDING COMPANY REPORTS THIRD QUARTER FISCAL 2023 FINANCIAL RESULTS
RENO, Nev., Feb. 8, 2023 /PRNewswire/ -- U-Haul Holding Company (NYSE: UHAL, UHAL.B), 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, 2022, of $199.2 million compared to $281.5 million for the same period last year.
For the nine-month period ended December 31, 2022, net earnings available to shareholders were $885.3 million compared to $1,036.5 million for the same period last year.
"Customers continue to be interested in service and value for their dollar," stated Joe Shoen, chairman of U-Haul Holding Company. "We must improve in both to retain existing customers and attract new ones. We have plans to accomplish both. We are focused on cost reduction and execution in both self-move and self-storage."
Highlights of Third Quarter Fiscal 2023 Results
- Self-moving equipment rental revenues decreased $76.7 million or 8% during the third quarter of fiscal 2023, compared with the third quarter of fiscal 2022. Transactions and revenue for both our In-Town and one-way markets decreased. Compared to the same period last year, we increased the number of retail locations, independent dealers, trucks, and trailers in the rental fleet.
- Self-storage revenues increased $31.1 million, or 20% during the third quarter of fiscal 2023, compared with the third quarter of fiscal 2022. The average monthly number of occupied units increased by 57,229 units, during the third quarter of fiscal 2023 compared with the same period last year. Occupancy for all locations decreased 0.7% to 82.9% from the third quarter of last year to this year while occupancy for the subsection of these locations that have been at 80% occupancy for the last two years decreased 0.8% to 94.6%. The growth in revenues and square feet rented comes from a combination of occupancy gains at existing locations, the addition of new capacity to the portfolio and from an improvement in average revenue per occupied feet. Over the last twelve months, we added approximately 6.2 million net rentable square feet.
- For the third quarter of fiscal 2023 compared with the third quarter of fiscal 2022, depreciation, net of gains on sales increased $10.1 million. This was a combination of depreciation expense on the rental equipment fleet increasing $4.6 million and a decrease on gains from the sales of rental trucks of $1.1 million from a decline in resale values. All other depreciation, primarily real estate related, increased $4.5 million.
- For the first nine months of fiscal 2023 and fiscal 2022, gross rental equipment capital expenditures totaled approximately $1,016 million compared with $809 million, Proceeds from the sales of rental equipment totaled $527 million compared with $471 million. Spending on real estate related acquisitions and projects totaled approximately $1,003 million compared with $783 million, respectively.
- Fleet maintenance and repair costs increased $34.7 million in the third quarter of fiscal 2023 compared with the same period last year due to maintenance resulting from a larger fleet combined with the slower rotation of new equipment into the fleet and older equipment out of the fleet.
- Operating earnings at our Moving and Storage operating segment decreased $99.1 million in the third quarter of fiscal 2023 compared with the same period last year. Total revenues decreased $25.2 million and total costs and expenses increased $74.0 million.
- Cash and credit availability at the Moving and Storage operating segment was $2,894.9 million as of December 31, 2022 compared with $2,723.2 million as of March 31, 2022.
- On December 7, 2022, we declared a cash dividend on our Non-Voting Common Stock of $0.04 per share to holders of record on December 19, 2022. The dividend was paid on December 30, 2022.
- Upon the issuance of the UHAL.B shares in November 2022 we are required to report earnings per share in accordance with the two-class method. Pages 9 and 10 of this release contain a reconciliation of these results for this year as well as what prior periods would have looked like if the two-class method had been applied to prior periods.
Corporate Actions
During the third quarter, the Company announced several corporate actions taken by an Independent Special Committee of its Board of Directors. This included changing the name of AMERCO to U-Haul Holding Company, the creation of a class of non-voting common stock, and a 9-for-1 dividend of these shares to all existing Company shareholders of record as of November 3, 2022. The Company began trading 176,470,092 shares of non-voting common stock on November 10, 2022 on Nasdaq under the ticker symbol UHALB. Subsequently, the Board announced a regular dividend policy for the new class of shares of $0.04 per share per quarter and transferred its voting common stock and non-voting common stock to the New York Stock Exchange from the NASDAQ Global Select Market under the ticker symbols UHAL and UHAL.B.
U-Haul Holding Company will hold its investor call for the third quarter of fiscal 2023 on Thursday, February 9, 2023, at 8 a.m. Arizona Time (10 a.m. Eastern). The call will be broadcast live over the Internet at investors.uhaul.com. To hear a simulcast of the call, or a replay, visit investors.uhaul.com.
About U-Haul Holding Company
U-Haul Holding Company 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.
About U-Haul
Since 1945, U-Haul has been the No. 1 choice of do-it-yourself movers, with a network of more than 23,000 locations across all 50 states and 10 Canadian provinces. Our customers' patronage has enabled the U-Haul fleet to grow to approximately 186,000 trucks, 128,000 trailers and 46,000 towing devices. U-Haul is the third largest self-storage operator in North America and offers nearly 934,000 rentable storage units and 79.7 million square feet of self-storage space at owned and managed facilities. U-Haul is the largest retailer of propane in the U.S., and continues to be the largest installer of permanent trailer hitches in the automotive aftermarket industry. U-Haul has been recognized repeatedly as a leading "Best for Vets" employer and was recently named one of the 15 Healthiest Workplaces in America.
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 U-Haul Holding Company's business and future operating results, please refer to our Form 10-Q for the quarter ended December 31, 2022, 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 2023 and 2022.
Quarter Ended December 31, |
||||
2022 |
2021 |
|||
(Unaudited) |
||||
(In thousands) |
||||
Self-moving equipment rentals |
$ |
898,819 |
$ |
975,552 |
Self-storage revenues |
190,483 |
159,424 |
||
Self-moving and self-storage product and service sales |
74,851 |
75,402 |
||
Property management fees |
10,080 |
9,651 |
||
Life insurance premiums |
24,399 |
27,010 |
||
Property and casualty insurance premiums |
26,852 |
25,618 |
||
Net investment and interest income |
52,294 |
31,184 |
||
Other revenue |
97,558 |
100,495 |
||
Consolidated revenue |
$ |
1,375,336 |
$ |
1,404,336 |
Listed below are revenues and earnings from operations at each of our operating segments for the third quarter of fiscal 2023 and 2022.
Quarter Ended December 31, |
||||
2022 |
2021 |
|||
(Unaudited) |
||||
(In thousands) |
||||
Moving and storage |
||||
Revenues |
$ |
1,296,407 |
$ |
1,321,580 |
Earnings from operations before equity in earnings of subsidiaries |
304,717 |
403,853 |
||
Property and casualty insurance |
||||
Revenues |
28,466 |
29,820 |
||
Earnings from operations |
10,846 |
9,657 |
||
Life insurance |
||||
Revenues |
52,962 |
56,417 |
||
Earnings from operations |
5,213 |
3,603 |
||
Eliminations |
||||
Revenues |
(2,499) |
(3,481) |
||
Earnings from operations before equity in earnings of subsidiaries |
(373) |
(389) |
||
Consolidated Results |
||||
Revenues |
1,375,336 |
1,404,336 |
||
Earnings from operations |
320,403 |
416,724 |
||
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, |
||||
2022 |
2021 |
|||
(Unaudited) |
||||
(In thousands, except occupancy rate) |
||||
Unit count as of December 31 |
659 |
582 |
||
Square footage as of December 31 |
55,004 |
48,836 |
||
Average monthly number of units occupied |
540 |
483 |
||
Average monthly occupancy rate based on unit count |
82.9 % |
83.6 % |
||
Average monthly square footage occupied |
46,651 |
42,239 |
||
Listed below on a consolidated basis are revenues for our major product lines for the first nine months of fiscal 2023 and 2022.
Nine Months Ended December 31, |
||||
2022 |
2021 |
|||
(Unaudited) |
||||
(In thousands) |
||||
Self-moving equipment rentals |
$ |
3,151,619 |
$ |
3,189,990 |
Self-storage revenues |
549,246 |
450,302 |
||
Self-moving and self-storage product and service sales |
281,066 |
272,478 |
||
Property management fees |
28,496 |
26,847 |
||
Life insurance premiums |
75,636 |
84,628 |
||
Property and casualty insurance premiums |
72,542 |
64,986 |
||
Net investment and interest income |
116,376 |
102,963 |
||
Other revenue |
401,059 |
349,252 |
||
Consolidated revenue |
$ |
4,676,040 |
$ |
4,541,446 |
Listed below are revenues and earnings from operations at each of our operating segments for the first nine months of fiscal 2023 and 2022.
Nine Months Ended December 31, |
||||
2022 |
2021 |
|||
(Unaudited) |
||||
(In thousands) |
||||
Moving and storage |
||||
Revenues |
$ |
4,456,863 |
4,291,833 |
|
Earnings from operations before equity in earnings of subsidiaries |
1,301,277 |
1,442,836 |
||
Property and casualty insurance |
||||
Revenues |
74,911 |
82,815 |
||
Earnings from operations |
24,883 |
34,078 |
||
Life insurance |
||||
Revenues |
152,761 |
176,061 |
||
Earnings from operations |
8,638 |
13,882 |
||
Eliminations |
||||
Revenues |
(8,495) |
(9,263) |
||
Earnings from operations before equity in earnings of subsidiaries |
(1,141) |
(1,163) |
||
Consolidated Results |
||||
Revenues |
4,676,040 |
4,541,446 |
||
Earnings from operations |
1,333,657 |
1,489,633 |
||
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, |
||||
2022 |
2021 |
|||
(Unaudited) |
||||
(In thousands, except occupancy rate) |
||||
Unit count as of December 31 |
659 |
582 |
||
Square footage as of December 31 |
55,004 |
48,836 |
||
Average monthly number of units occupied |
533 |
465 |
||
Average monthly occupancy rate based on unit count |
84.2 % |
82.6 % |
||
Average monthly square footage occupied |
46,012 |
40,884 |
||
U-HAUL HOLDING COMPANY AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
December 31, |
March 31, |
|||
2022 |
2022 |
|||
(Unaudited) |
||||
(In thousands) |
||||
ASSETS |
||||
Cash and cash equivalents |
$ |
2,510,619 |
$ |
2,704,137 |
Reinsurance recoverables and trade receivables, net |
208,182 |
229,343 |
||
Inventories and parts, net |
150,140 |
158,888 |
||
Prepaid expenses |
228,260 |
236,915 |
||
Investments, fixed maturities and marketable equities |
2,723,201 |
2,893,399 |
||
Investments, other |
518,455 |
543,755 |
||
Deferred policy acquisition costs, net |
159,924 |
103,828 |
||
Other assets |
57,272 |
60,409 |
||
Right of use assets – financing, net |
504,640 |
620,824 |
||
Right of use assets – operating, net |
63,856 |
74,382 |
||
Related party assets |
75,549 |
47,851 |
||
7,200,098 |
7,673,731 |
|||
Property, plant and equipment, at cost: |
||||
Land |
1,504,507 |
1,283,142 |
||
Buildings and improvements |
6,728,424 |
5,974,639 |
||
Furniture and equipment |
898,468 |
846,132 |
||
Rental trailers and other rental equipment |
784,394 |
615,679 |
||
Rental trucks |
5,167,168 |
4,638,814 |
||
15,082,961 |
13,358,406 |
|||
Less: Accumulated depreciation |
(4,166,731) |
(3,732,556) |
||
Total property, plant and equipment, net |
10,916,230 |
9,625,850 |
||
Total assets |
$ |
18,116,328 |
$ |
17,299,581 |
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
Liabilities: |
||||
Accounts payable and accrued expenses |
$ |
703,412 |
$ |
677,785 |
Notes, loans and finance leases payable, net |
6,200,397 |
6,022,497 |
||
Operating lease liabilities |
63,402 |
74,197 |
||
Policy benefits and losses, claims and loss expenses payable |
980,200 |
978,254 |
||
Liabilities from investment contracts |
2,396,702 |
2,336,238 |
||
Other policyholders' funds and liabilities |
12,579 |
10,812 |
||
Deferred income |
45,222 |
49,157 |
||
Deferred income taxes, net |
1,301,037 |
1,265,358 |
||
Total liabilities |
11,702,951 |
11,414,298 |
||
Common stock |
10,497 |
10,497 |
||
Non-voting common stock |
176 |
- |
||
Additional paid-in capital |
453,643 |
453,819 |
||
Accumulated other comprehensive income (loss) |
(284,116) |
46,384 |
||
Retained earnings |
6,910,827 |
6,052,233 |
||
Cost of common stock in treasury, net |
(525,653) |
(525,653) |
||
Cost of preferred stock in treasury, net |
(151,997) |
(151,997) |
||
Total stockholders' equity |
6,413,377 |
5,885,283 |
||
Total liabilities and stockholders' equity |
$ |
18,116,328 |
$ |
17,299,581 |
U-HAUL HOLDING COMPANY AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||
Quarter Ended December 31, |
||||
2022 |
2021 |
|||
(Unaudited) |
||||
(In thousands, except share and per share data) |
||||
Revenues: |
||||
Self-moving equipment rentals |
$ |
898,819 |
$ |
975,552 |
Self-storage revenues |
190,483 |
159,424 |
||
Self-moving and self-storage products and service sales |
74,851 |
75,402 |
||
Property management fees |
10,080 |
9,651 |
||
Life insurance premiums |
24,399 |
27,010 |
||
Property and casualty insurance premiums |
26,852 |
25,618 |
||
Net investment and interest income |
52,294 |
31,184 |
||
Other revenue |
97,558 |
100,495 |
||
Total revenues |
1,375,336 |
1,404,336 |
||
Costs and expenses: |
||||
Operating expenses |
733,469 |
658,095 |
||
Commission expenses |
95,980 |
105,155 |
||
Cost of sales |
54,616 |
57,042 |
||
Benefits and losses |
41,372 |
47,266 |
||
Amortization of deferred policy acquisition costs |
6,979 |
7,947 |
||
Lease expense |
7,792 |
7,394 |
||
Depreciation, net of gains on disposal |
113,866 |
103,736 |
||
Net losses on disposal of real estate |
859 |
977 |
||
Total costs and expenses |
1,054,933 |
987,612 |
||
Earnings from operations |
320,403 |
416,724 |
||
Other components of net periodic benefit costs |
(304) |
(280) |
||
Interest expense |
(59,041) |
(44,042) |
||
Fees on early extinguishment of debt |
(50) |
(956) |
||
Pretax earnings |
261,008 |
371,446 |
||
Income tax expense |
(61,764) |
(89,980) |
||
Earnings available to common stockholders |
$ |
199,244 |
$ |
281,466 |
Basic and diluted earnings per share of Common Stock |
$ |
0.98 |
$ |
1.89 |
Weighted average shares outstanding of Common Stock: Basic and diluted |
19,607,788 |
19,607,788 |
||
Basic and diluted earnings per share of Series N Non-Voting Common Stock |
$ |
1.02 |
$ |
1.39 |
Weighted average shares outstanding of Series N Non-Voting Common Stock: Basic and diluted |
176,470,092 |
176,470,092 |
||
U-HAUL HOLDING COMPANY AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||
Nine Months Ended December 31, |
||||
2022 |
2021 |
|||
(Unaudited) |
||||
(In thousands, except share and per share data) |
||||
Revenues: |
||||
Self-moving equipment rentals |
$ |
3,151,619 |
$ |
3,189,990 |
Self-storage revenues |
549,246 |
450,302 |
||
Self-moving and self-storage products and service sales |
281,066 |
272,478 |
||
Property management fees |
28,496 |
26,847 |
||
Life insurance premiums |
75,636 |
84,628 |
||
Property and casualty insurance premiums |
72,542 |
64,986 |
||
Net investment and interest income |
116,376 |
102,963 |
||
Other revenue |
401,059 |
349,252 |
||
Total revenues |
4,676,040 |
4,541,446 |
||
Costs and expenses: |
||||
Operating expenses |
2,278,230 |
1,968,698 |
||
Commission expenses |
339,814 |
346,200 |
||
Cost of sales |
206,912 |
193,448 |
||
Benefits and losses |
122,835 |
139,194 |
||
Amortization of deferred policy acquisition costs |
21,623 |
23,520 |
||
Lease expense |
22,951 |
22,482 |
||
Depreciation, net of gains on disposal |
344,980 |
361,201 |
||
Net (gains) losses on disposal of real estate |
5,038 |
(2,930) |
||
Total costs and expenses |
3,342,383 |
3,051,813 |
||
Earnings from operations |
1,333,657 |
1,489,633 |
||
Other components of net periodic benefit costs |
(912) |
(840) |
||
Interest expense |
(166,033) |
(122,765) |
||
Fees on early extinguishment of debt |
(1,009) |
(956) |
||
Pretax earnings |
1,165,703 |
1,365,072 |
||
Income tax expense |
(280,442) |
(328,533) |
||
Earnings available to common stockholders |
$ |
885,261 |
$ |
1,036,539 |
Basic and diluted earnings per share of Common Stock |
$ |
5.38 |
$ |
6.64 |
Weighted average shares outstanding of Common Stock: Basic and diluted |
19,607,788 |
19,607,788 |
||
Basic and diluted earnings per share of Series N Non-Voting Common Stock |
$ |
4.42 |
$ |
5.14 |
Weighted average shares outstanding of Series N Non-Voting Common Stock: Basic and diluted |
176,470,092 |
176,470,092 |
||
EARNINGS PER SHARE
We calculate earnings per share using the two-class method in accordance with Accounting Standards Codification Topic 260, Earnings Per Share. The two-class method allocates the undistributed earnings available to common stockholders to the Company's outstanding common stock, $0.25 par value (the "Voting Common Stock") and the Series N Non-Voting Common Stock, $0.001 par value (the "Non-Voting Common Stock") based on each share's percentage of total weighted average shares outstanding. The Voting Common Stock and Non-Voting Common Stock are allocated 10% and 90%, respectively, of our undistributed earnings available to common stockholders. This represents earnings available to common stockholders less the dividends declared for both the Voting Common Stock and Non-Voting Common Stock.
Our undistributed earnings per share is calculated by taking the undistributed earnings available to common stockholders and dividing this number by the weighted average shares outstanding for the respective stock. If there was a dividend declared for that period, the dividend per share is added to the undistributed earnings per share to calculate the basic and diluted earnings per share. The process is used for both Voting Common Stock and Non-Voting Common Stock.
The calculation of basic and diluted earnings per share for the quarter and nine months ended December 31, 2022 and 2021 for our Voting Common Stock and Non-Voting Common Stock were as follows:
For the Quarter Ended |
||||
December 31, |
||||
2022 |
2021 |
|||
(Unaudited) |
||||
(In thousands, except share and per |
||||
Weighted average shares outstanding of Voting Common Stock |
19,607,788 |
19,607,788 |
||
Total weighted average shares outstanding for Voting Common Stock and Non-Voting Common Stock |
196,077,880 |
196,077,880 |
||
Percent of weighted average shares outstanding of Voting Common Stock |
10 % |
10 % |
||
Net earnings available to common stockholders |
$ |
199,244 |
$ |
281,466 |
Voting Common Stock dividends declared |
– |
(9,804) |
||
Non-Voting Common Stock dividends declared |
(7,059) |
– |
||
Undistributed earnings available to common stockholders |
$ |
192,185 |
$ |
271,662 |
Undistributed earnings available to common stockholders allocated to Voting Common Stock |
$ |
19,219 |
$ |
27,166 |
Undistributed earnings per share of Voting Common Stock |
$ |
0.98 |
$ |
1.39 |
Dividends declared per share of Voting Common Stock |
$ |
– |
$ |
0.50 |
Basic and diluted earnings per share of Voting Common Stock |
$ |
0.98 |
$ |
1.89 |
Weighted average shares outstanding of Non-Voting Common Stock |
176,470,092 |
176,470,092 |
||
Total weighted average shares outstanding for Voting Common Stock and Non-Voting Common Stock |
196,077,880 |
196,077,880 |
||
Percent of weighted average shares outstanding of Non-Voting Common Stock |
90 % |
90 % |
||
Net earnings available to common stockholders |
$ |
199,244 |
$ |
281,466 |
Voting Common Stock dividends declared |
– |
(9,804) |
||
Non-Voting Common Stock dividends declared |
(7,059) |
– |
||
Undistributed earnings available to common stockholders |
$ |
192,185 |
$ |
271,662 |
Undistributed earnings available to common stockholders allocated to Non-Voting Common Stock |
$ |
172,967 |
$ |
244,496 |
Undistributed earnings per share of Non-Voting Common Stock |
$ |
0.98 |
$ |
1.39 |
Dividends declared per share of Non-Voting Common Stock |
$ |
0.04 |
$ |
– |
Basic and diluted earnings per share of Non-Voting Common Stock |
$ |
1.02 |
$ |
1.39 |
For the Nine Months Ended |
||||
December 31, |
||||
2022 |
2021 |
|||
(Unaudited) |
||||
(In thousands, except share and per |
||||
Weighted average shares outstanding of Voting Common Stock |
19,607,788 |
19,607,788 |
||
Total weighted average shares outstanding for Voting Common Stock and Non-Voting Common Stock |
196,077,880 |
196,077,880 |
||
Percent of weighted average shares outstanding of Voting Common Stock |
10 % |
10 % |
||
Net earnings available to common stockholders |
$ |
885,261 |
$ |
1,036,539 |
Voting Common Stock dividends declared |
(19,608) |
(29,412) |
||
Non-Voting Common Stock dividends declared |
(7,059) |
– |
||
Undistributed earnings available to common stockholders |
$ |
858,594 |
$ |
1,007,127 |
Undistributed earnings available to common stockholders allocated to Voting Common Stock |
$ |
85,859 |
$ |
100,713 |
Undistributed earnings per share of Voting Common Stock |
$ |
4.38 |
$ |
5.14 |
Dividends declared per share of Voting Common Stock |
$ |
1.00 |
$ |
1.50 |
Basic and diluted earnings per share of Voting Common Stock |
$ |
5.38 |
$ |
6.64 |
Weighted average shares outstanding of Non-Voting Common Stock |
176,470,092 |
176,470,092 |
||
Total weighted average shares outstanding for Voting Common Stock and Non-Voting Common Stock |
196,077,880 |
196,077,880 |
||
Percent of weighted average shares outstanding of Non-Voting Common Stock |
90 % |
90 % |
||
Net earnings available to common stockholders |
$ |
885,261 |
$ |
1,036,539 |
Voting Common Stock dividends declared |
(19,608) |
(29,412) |
||
Non-Voting Common Stock dividends declared |
(7,059) |
– |
||
Undistributed earnings available to common stockholders |
$ |
858,594 |
$ |
1,007,127 |
Undistributed earnings available to common stockholders allocated to Non-Voting Common Stock |
$ |
772,735 |
$ |
906,414 |
Undistributed earnings per share of Non-Voting Common Stock |
$ |
4.38 |
$ |
5.14 |
Dividends declared per share of Non-Voting Common Stock |
$ |
0.04 |
$ |
– |
Basic and diluted earnings per share of Non-Voting Common Stock |
$ |
4.42 |
$ |
5.14 |
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, 2022, the balance of ROU-financing also includes the rental equipment purchased under new financing liability leases during fiscal 2023. The tables below show adjusted PPE as of September 30, 2022 and March 31, 2022, by including the ROU-financing. The assets included in ROU-financing are not a true book value as some of the assets are recorded at between 70% and 100% of value based on the lease agreement. This non-GAAP measure is intended as a supplemental measure of our balance sheet that is neither required by, nor presented in accordance with, GAAP. We believe that the use of this non-GAAP measure provides an additional tool for investors to use in evaluating our financial condition. This non-GAAP measure should not be considered in isolation or as a substitute for other measures calculated in accordance with GAAP.
December 31, |
March 31, |
||||||||
2022 |
2022 |
||||||||
December 31, |
ROU |
Property, Plant |
Property, |
||||||
2022 |
Financing |
Adjusted |
Adjusted |
||||||
(Unaudited) |
|||||||||
(In thousands) |
|||||||||
Property, plant and equipment, at cost |
|||||||||
Land |
$ |
1,504,507 |
$ |
- |
$ |
1,504,507 |
$ |
1,283,142 |
|
Buildings and improvements |
6,728,424 |
- |
6,728,424 |
5,974,639 |
|||||
Furniture and equipment |
898,468 |
14,731 |
913,199 |
860,863 |
|||||
Rental trailers and other rental equipment |
784,394 |
152,867 |
937,261 |
785,193 |
|||||
Rental trucks |
5,167,168 |
982,119 |
6,149,287 |
5,753,062 |
|||||
Subtotal |
15,082,961 |
1,149,717 |
16,232,678 |
14,656,899 |
|||||
Less: Accumulated depreciation |
(4,166,731) |
(645,077) |
(4,811,808) |
(4,410,225) |
|||||
Total property, plant and equipment, net |
$ |
10,916,230 |
$ |
504,640 |
$ |
11,420,870 |
$ |
10,246,674 |
|
March 31, |
||||||
2022 |
||||||
March 31, |
ROU |
Property, Plant |
||||
2022 |
Financing |
Adjusted |
||||
(Unaudited) |
||||||
(In thousands) |
||||||
Property, plant and equipment, at cost |
||||||
Land |
$ |
1,283,142 |
$ |
- |
$ |
1,283,142 |
Buildings and improvements |
5,974,639 |
- |
5,974,639 |
|||
Furniture and equipment |
846,132 |
14,731 |
860,863 |
|||
Rental trailers and other rental equipment |
615,679 |
169,514 |
785,193 |
|||
Rental trucks |
4,638,814 |
1,114,248 |
5,753,062 |
|||
Right-of-use assets, gross |
13,358,406 |
1,298,493 |
14,656,899 |
|||
Less: Accumulated depreciation |
(3,732,556) |
(677,669) |
(4,410,225) |
|||
Total property, plant and equipment, net |
$ |
9,625,850 |
$ |
620,824 |
$ |
10,246,674 |
SOURCE U-Haul Holding Company
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