PR Newswire | May 26, 2021 04:41PM EDT

05/26 15:40 CDT

AMERCO Reports Fiscal 2021 Financial Results RENO, Nev., May 26, 2021

RENO, Nev., May 26, 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 the year ended March 31, 2021, of $610.9 million, or $31.15 per share, compared with $442.0 million, or $22.55 per share for the same period last year. Included in the results for the year ended March 31, 2020, was a $7.45 per share, or $146.0 million tax benefit resulting from the CARES Act. Excluding this item, adjusted earnings were $15.10 per share for the year ended March 31, 2020. This adjustment to our net earnings and earnings per share provides a reconciliation for comparison of our financial performance for the periods presented.

For the quarter ended March 31, 2021, the Company reported net earnings available to shareholders of $73.8 million, or $3.76 per share compared with net earnings of $122.4 million, or $6.24 per share for the same period last year. Included in the results for the quarter ended March 31, 2020, was a $7.45 per share, or $146.0 million tax benefit resulting from the CARES Act. Excluding this, adjusted losses were ($1.21) per share for the quarter ended March 31, 2020.

"Market disruptions were countered by adapting to new customer needs," stated Joe Shoen, chairman of AMERCO. "Increased customer demand drove revenues. We fell behind plan in rental equipment and self-storage capital expenditures. Interest rates held. All of this created good 'results.' The entire team worked together to achieve this result. As always, the best measurement period is more than a year."

Highlights of Fiscal Year and Fourth Quarter 2021 Results

* Self-moving equipment rental revenues increased $171.8 million, or 33%, in the fourth quarter of fiscal 2021 compared with the fourth quarter of fiscal 2020, and finished the full year up $390.9 million, or 15%, compared with fiscal 2020. During our first quarter this fiscal year, we experienced a decrease in these revenues of $94.3 million, or 13%. Since then, these revenues have increased $485.2 million, or 25%, over the last nine months. Transactions along with average revenue per transaction increased for both our In-town and one-way markets. Compared to the same period last year, we increased the number of retail locations and independent dealers. * Self-storage revenues increased $21.2 million, or 19%, in the fourth quarter of fiscal 2021 compared with the fourth quarter of fiscal 2020, and for the full year increased $58.5 million, or 14%, compared with fiscal 2020. The average monthly number of occupied units increased by 21%, or 69,000 units, during the fourth quarter of fiscal 2021 compared with the same period last year. The growth in revenues and units rented comes from a combination of occupancy gains at existing locations and from the additions of new facilities to the portfolio. In fiscal 2021, we added approximately 3.7 million net rentable square feet, or a 9% increase, with approximately 0.8 million of that occurring during the fourth quarter of fiscal 2021. * Sales of self-moving and self-storage products and services increased $22.9 million, or 40% in the fourth quarter of fiscal 2021 compared with the fourth quarter of fiscal 2020 and for the full year increased $79.8 million, or 30% compared with fiscal 2020. Increases came from the sales of moving supplies, hitch and towing accessories, and propane. * For the quarter, depreciation, net of gains and losses on sales decreased $20.6 million. Depreciation on the rental equipment fleet decreased $6.3 million while net gains on the sales of rental trucks increased $19.5 million. All other depreciation increased $5.1 million from buildings and improvements. For the full fiscal year, depreciation, net of gains and losses on sales, decreased $27.1 million. Depreciation on the rental equipment fleet decreased $23.8 million. Although fewer trucks were sold, net gains from the disposal of rental equipment increased $27.0 million from higher resale values. Over the last nine months of fiscal 2021 net gains have increased $42.6 million, after a net loss of $15.6 million in the first quarter of fiscal 2021 due to COVID-19 auction shutdowns. All other depreciation increased $23.7 million largely from buildings and improvements. * Fleet maintenance and repair costs increased $13.5 million in the fourth quarter of fiscal 2021 compared with the same period last year as preventative maintenance trended with transactions. Fleet maintenance and repair costs decreased $18.2 million for the full year of fiscal 2021 due to fewer trucks being prepped for sale at auction. * Personnel related costs at the Moving and Storage operating segment increased $40.7 million in the fourth quarter of fiscal 2021 compared with the same period last year as a result of an $18.9 million increase in contributions made to our employee stock ownership plan along with additional performance compensation and wages for our Field team. * Operating earnings at our Moving and Storage operating segment increased $137.9 million in the fourth quarter of fiscal 2021 compared with the same period last year. Total revenues increased $233.3 million and total costs and expenses increased $95.4 million. * Gross truck and trailer capital expenditures for fiscal 2021 were approximately $853 million compared with approximately $1,374 million for fiscal 2020. Capital expenditures for the rental fleet, depending upon manufacturer availability, are expected to increase in fiscal 2022. Proceeds from the sales of rental equipment were approximately $527 million for fiscal 2021 compared with $678 million in fiscal 2020. Spending on real estate related acquisitions and projects decreased approximately $246 million to $505 million in fiscal 2021 compared with fiscal 2020. * Cash and credit availability at the Moving and Storage operating segment was $1,115.3 million and $498.1 million as of March 31, 2021 and 2020, respectively.

AMERCO will hold its investor call for fiscal 2021 on Thursday, May 27, 2021, 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., 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-K for the year ended March 31, 2021, 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 fourth quarter and the full year of fiscal 2021 and 2020.

Quarters Ended March 31, Years Ended March 31,

2021 2020 2021 2020

(In thousands)

Self-moving equipment rentals $ 689,787 $ 518,021 $ 3,083,317 $ 2,692,413

Self-storage revenues 130,010 108,801 477,262 418,741

Self-moving and self-storage product and service sales 80,365 57,490 344,929 265,091

Property management fees 7,651 6,919 31,603 30,406

Life insurance premiums 29,651 31,747 121,609 127,976

Property and casualty insurance premiums 19,243 14,997 68,779 66,053

Net investment and interest income 37,043 35,200 122,938 137,829

Other revenue 66,108 48,350 291,548 240,359

Consolidated revenue $ 1,059,858 $ 821,525 $ 4,541,985 $ 3,978,868

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

Quarters Ended March 31, Years Ended March 31,

2021 2020 2021 2020

(In thousands)

Moving and storage

Revenues $ 974,775 $ 741,452 $ 4,231,674 $ 3,657,766

Earnings (losses) from operations before equity in earnings of 117,242 (20,690) 906,863 471,962 subsidiaries

Property and casualty insurance

Revenues 23,790 19,865 86,737 89,064

Earnings from operations 8,160 15,442 32,498 42,884

Life insurance

Revenues 62,344 62,395 232,634 241,464

Earnings from operations 6,192 6,482 22,876 26,394

Eliminations

Revenues (1,051) (2,187) (9,060) (9,426)

Earnings from operations before equity in earnings of subsidiaries (269) (276) (1,090) (1,112)

Consolidated Results

Revenues 1,059,858 821,525 4,541,985 3,978,868

Earnings from operations 131,325 958 961,147 540,128

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 storage locations follows:

Quarters Ended March 31,

2021 2020

(In thousands, except occupancy rate)

Unit count as of March 31 539 503

Square footage as of March 31 45,746 42,082

Average monthly number of units occupied 398 329

Average monthly occupancy rate based on unit count 74.3% 66.1%

Average monthly square footage occupied 35,692 29,846

Years Ended March 31,

2021 2020

(In thousands, except occupancy rate)

Unit count as of March 31 539 503

Square footage as of March 31 45,746 42,082

Average monthly number of units occupied 376 319

Average monthly occupancy rate based on unit count 71.8% 67.7%

Average monthly square footage occupied 33,700 28,946

AMERCO AND CONSOLIDATED ENTITIESCONDENSED CONSOLIDATED BALANCE SHEETS

March 31, March 31,

2021 2020

(In thousands)

ASSETS

Cash and cash equivalents $ 1,194,012 $ 494,352

Reinsurance recoverables and trade receivables, net 224,426 186,672

Inventories and parts, net 105,577 101,083

Prepaid expenses 469,144 562,904

Investments, fixed maturities and marketable equities 2,695,656 2,492,738

Investments, other 489,759 360,373

Deferred policy acquisition costs, net 89,749 103,118

Other assets 47,730 71,956

Right of use assets - financing, net 877,038 1,080,353

Right of use assets - operating 92,505 106,631

Related party assets 35,395 34,784

6,320,991 5,594,964

Property, plant and equipment, at cost:

Land 1,075,813 1,032,945

Buildings and improvements 5,163,705 4,663,461

Furniture and equipment 786,505 752,363

Rental trailers and other rental equipment 477,921 511,520

Rental trucks 3,909,724 3,595,933

11,413,668 10,556,222

Less: Accumulated depreciation (3,083,053) (2,713,162)

Total property, plant and equipment 8,330,615 7,843,060

Total assets $ 14,651,606 $ 13,438,024

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Accounts payable and accrued expenses $ 645,575 $ 554,353

Notes, loans and finance leases payable, net 4,668,907 4,621,291

Operating lease liabilities 92,510 106,443

Policy benefits and losses, claims and loss expenses payable 997,701 997,647

Liabilities from investment contracts 2,161,530 1,802,217

Other policyholders' funds and liabilities 12,420 10,190

Deferred income 42,592 31,620

Deferred income taxes, net 1,178,489 1,093,543

Total liabilities 9,799,724 9,217,304

Common stock 10,497 10,497

Additional paid-in capital 453,819 453,819

Accumulated other comprehensive income 106,857 34,652

Retained earnings 4,958,359 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 4,851,882 4,220,720

Total liabilities and stockholders' equity $ 14,651,606 $ 13,438,024



AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



Quarter Ended March 31,

2021 2020

(In thousands, except share and per share data)

Revenues:

Self-moving equipment rentals $ 689,787 $ 518,021

Self-storage revenues 130,010 108,801

Self-moving and self-storage products and service sales 80,365 57,490

Property management fees 7,651 6,919

Life insurance premiums 29,651 31,747

Property and casualty insurance premiums 19,243 14,997

Net investment and interest income 37,043 35,200

Other revenue 66,108 48,350

Total revenues 1,059,858 821,525

Costs and expenses:

Operating expenses 580,997 499,810

Commission expenses 74,178 54,792

Cost of sales 54,543 35,841

Benefits and losses 48,852 37,141

Amortization of deferred policy acquisition costs 9,281 10,594

Lease expense 7,475 7,000

Depreciation, net of gains (losses) on disposals 154,219 174,836

Net (gains) losses on disposal of real estate (1,012) 553

Total costs and expenses 928,533 820,567

Earnings from operations 131,325 958

Other components of net periodic benefit costs (247) (264)

Interest expense (41,328) (42,967)

Pretax earnings (losses) 89,750 (42,273)

Income tax benefit (expense) (15,970) 164,641

Earnings available to common shareholders $ 73,780 $ 122,368

Basic and diluted earnings per common share $ 3.76 $ 6.24

Weighted average common shares outstanding: Basic and diluted 19,607,788 19,607,788



AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



Twelve Months Ended March 31,

2021 2020

(In thousands, except share and per share data)

Revenues:

Self-moving equipment rentals $ 3,083,317 $ 2,692,413

Self-storage revenues 477,262 418,741

Self-moving and self-storage products and service sales 344,929 265,091

Property management fees 31,603 30,406

Life insurance premiums 121,609 127,976

Property and casualty insurance premiums 68,779 66,053

Net investment and interest income 122,938 137,829

Other revenue 291,548 240,359

Total revenues 4,541,985 3,978,868

Costs and expenses:

Operating expenses 2,187,684 2,117,148

Commission expenses 329,609 288,332

Cost of sales 214,059 164,018

Benefits and losses 179,512 174,836

Amortization of deferred policy acquisition costs 28,293 31,219

Lease expense 28,470 26,882

Depreciation, net of gains on disposals 609,930 637,063

Net (gains) losses on disposal of real estate 3,281 (758)

Total costs and expenses 3,580,838 3,438,740

Earnings from operations 961,147 540,128

Other components of net periodic benefit costs (987) (1,054)

Interest expense (163,502) (160,950)

Pretax earnings 796,658 378,124

Income tax benefit (expense) (185,802) 63,924

Earnings available to common shareholders $ 610,856 $ 442,048

Basic and diluted earnings per common share $ 31.15 $ 22.55

Weighted average common shares outstanding: Basic and diluted 19,607,788 19,603,708

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

March 31, March 31,

2021 2020

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

2021 Financing Adjusted Adjusted

(In thousands)

Property, plant and equipment, at cost

Land $ 1,075,813 $ - $ 1,075,813 $ 1,032,945

Buildings and improvements 5,163,705 - 5,163,705 4,663,461

Furniture and equipment 786,505 22,316 808,821 773,476

Rental trailers and other rental equipment 477,921 203,594 681,515 731,101

Rental trucks 3,909,724 1,494,098 5,403,822 5,230,505

Right-of-use assets, gross 11,413,668 1,720,008 13,133,676 12,431,488

Less: Accumulated depreciation (3,083,053) (842,970) (3,926,023) (3,508,075)

Total property, plant and equipment, net $ 8,330,615 $ 877,038 $ 9,207,653 $ 8,923,413

This adjustment to earnings per share for the quarter and year ended fiscal 2020, provides a reconciliation for comparison of our financial performance for the periods presented.

Quarter Ended

March 31, 2020

(In thousands, except share and per share amounts)

AMERCO and Consolidated Subsidiaries

Earnings per common share: basic and diluted $ 6.24

CARES Act adjustment, per common share basic and diluted (7.45)

Losses per common share: basic and diluted before CARES Act adjustment $ (1.21)

CARES Act adjustment $ (146,015)

CARES Act adjustment, per common share basic and diluted $ (7.45)

Weighted average shares outstanding: basic and diluted 19,607,788

Year Ended

March 31, 2020

(In thousands, except share and per share amounts)

AMERCO and Consolidated Subsidiaries

Earnings per common share: basic and diluted $ 22.55

CARES Act adjustment, per common share basic and diluted (7.45)

Earnings per common share: basic and diluted before CARES Act adjustment $ 15.10

CARES Act adjustment $ (146,015)

CARES Act adjustment, per common share basic and diluted $ (7.45)

Weighted average shares outstanding: basic and diluted 19,603,708

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SOURCE AMERCO