PR Newswire | Feb 3, 2021 04:10PM EST

02/03 15:10 CST

AMERCO Reports Third Quarter Fiscal 2021 Financial Results RENO, Nev., Feb. 3, 2021

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 AMERCOAMERCO 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

Property, Plant Property, December 31, ROU Assets and Equipment 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