PR Newswire | Aug 4, 2021 05:27PM EDT

08/04 16:26 CDT

AMERCO Reports First Quarter Fiscal 2022 Financial Results RENO, Nev., Aug. 4, 2021

RENO, Nev., Aug. 4, 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 common shareholders for its first quarter ended June 30, 2021, of $345.2 million, or $17.60 per share, compared with net earnings of $87.7 million, or $4.47 per share, for the same period last year.

"U-Haul is in a much closer game than it looks," stated Joe Shoen, chairman of AMERCO. "Existing and emerging competitors surround our moving and storage business. We have a good team in place. I am working to keep them focused and motivated. My goal is to make U-Haul the customer's best choice."

Highlights of First Quarter Fiscal 2022 Results

* Self-moving equipment rental revenues increased $381.1 million, or 58.2% for the first quarter of fiscal 2022 compared with the first quarter of fiscal 2021. Transactions for both our In-Town and one-way markets increased as did revenue per transaction. One contributing factor to the magnitude of the improvement is the relatively poor results in the first quarter of fiscal 2021 due to the COVID-19 pandemic. Comparing the first quarter of fiscal 2022 to the first quarter of fiscal 2020 revenue still increased $286.8 million. Compared to the same period last year, we increased the number of retail locations, independent dealers, box trucks and towing devices in the rental fleet. * Self-storage revenues increased $28.4 million, or 26.1% for the first quarter of fiscal 2022 compared with the first quarter of fiscal 2021. The average monthly number of occupied units during the quarter increased by 26%, or 89,373 compared to the same quarter last year. Our reported occupancy of all properties regardless of length of time in the portfolio increased 12% to 80% for the first quarter. The occupancy ratio for the subset of these properties that have been stabilized at 80% for the last 24 months increased 4% to 97% during the quarter. Over the last twelve months, we have added approximately 3.5 million net rentable square feet to the self-storage portfolio with approximately 1.1 million square feet of that coming online during the first quarter of fiscal 2022. * Sales of self-moving and self-storage products and services increased $13.5 million, or 14.8% compared with the first quarter of fiscal 2021 due to increased sales of hitches, moving supplies and propane. * For the first quarter of fiscal 2022 compared with the first quarter of fiscal 2021, depreciation, net of gains on sales decreased $44.0 million. Depreciation expense on the rental equipment fleet increased $1.7 million to $126.6 million. Net gains on the sales of rental trucks increased $49.3 million from an increase in auction activity as compared to the COVID-19 affected first quarter of fiscal 2021. All other depreciation increased $3.6 million to $45.5 million. Net gains on disposal of real estate increased $4.2 million from a state department of transportation condemnation in the first quarter of fiscal 2022. * For the first quarter of fiscal 2022 compared with the first quarter of fiscal 2021 gross truck and trailer capital expenditures were approximately $304 million compared with approximately $123 million. Proceeds from sales of rental equipment were $176 million compared with $74 million. Spending on real estate related acquisitions and development were approximately $184 million compared with $103 million, respectively. * Fleet maintenance and repair costs increased $33.6 million in the first quarter of fiscal 2022 compared with the same period last year due to preventative maintenance from higher fleet activity combined with additional costs from increased fleet sales activity. * Operating earnings at our Moving and Storage operating segment increased $331.3 million compared with the same period last year. Total revenues increased $466.9 million and total costs and expenses increased $135.6 million. * Cash and credit availability at the Moving and Storage segment was $1,543.0 million at June 30, 2021 compared with $1,115.3 million at March 31, 2021. * We are holding our 15th Annual Virtual Analyst and Investor meeting on Thursday, August 19, 2021 at 11 a.m. Arizona Time (2 p.m. Eastern). This is an opportunity to interact directly with Company representatives through a live video webcast on amerco.com. A brief presentation by the Company will be followed by a question-and-answer session.

AMERCO will hold its investor call for the first quarter of fiscal 2022 on Thursday, August 5, 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 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.

About U-HaulSince 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 176,000 trucks, 126,000 trailers and 46,000 towing devices. U-Haul is the third largest self-storage operator in North America and offers over 825,000 rentable storage units and 71.6 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.

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, 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 first quarter of fiscal 2022 and 2021.

Quarter Ended June 30,

2021 2020

(Unaudited)

(In thousands)

Self-moving equipment rentals $ 1,035,377 $ 654,285

Self-storage revenues 137,393 108,955

Self-moving and self-storage product and service sales 104,885 91,350

Property management fees 8,449 7,347

Life insurance premiums 28,705 30,908

Property and casualty insurance premiums 16,869 13,734

Net investment and interest income 34,999 16,982

Other revenue 106,179 63,676

Consolidated revenue $ 1,472,856 $ 987,237

Listed below are revenues and earnings from operations at each of our operating segments for the first quarter of fiscal 2022 and 2021.

Quarter Ended June 30,

2021 2020

(Unaudited)

(In thousands)

Moving and storage

Revenues $ 1,393,254 $ 926,300

Earnings from operations before equity in earnings of subsidiaries 482,995 151,661

Property and casualty insurance

Revenues 23,456 13,634

Earnings from operations 9,232 778

Life insurance

Revenues 58,659 49,653

Earnings from operations 2,366 1,920

Eliminations

Revenues (2,513) (2,350)

Earnings from operations before equity in earnings of subsidiaries (385) (273)

Consolidated Results

Revenues 1,472,856 987,237

Earnings from operations 494,208 154,086

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 June 30,

2021 2020

(Unaudited)

(In thousands, except occupancy rate)

Unit count as of June 30 553 516

Square footage as of June 30 46,847 43,393

Average monthly number of units occupied 436 347

Average monthly occupancy rate based on unit count 79.7% 67.6%

Average monthly square footage occupied 38,671 31,010

AMERCO AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, March 31,

2021 2021

(Unaudited)

(In thousands)

ASSETS

Cash and cash equivalents $ 1,519,981 $ 1,194,012

Reinsurance recoverables and trade receivables, net 233,056 224,426

Inventories and parts, net 117,978 105,577

Prepaid expenses 306,565 469,144

Investments, fixed maturities and marketable equities 2,755,133 2,695,656

Investments, other 525,893 489,759

Deferred policy acquisition costs, net 101,169 89,749

Other assets 46,910 47,730

Right of use assets - financing, net 814,875 877,038

Right of use assets - operating, net 89,369 92,505

Related party assets 34,481 35,395

6,545,410 6,320,991

Property, plant and equipment, at cost:

Land 1,110,300 1,075,813

Buildings and improvements 5,284,224 5,163,705

Furniture and equipment 796,077 786,505

Rental trailers and other rental equipment 495,012 477,921

Rental trucks 4,119,655 3,909,724

11,805,268 11,413,668

Less: Accumulated depreciation (3,235,796) (3,083,053)

Total property, plant and equipment, net 8,569,472 8,330,615

Total assets $ 15,114,882 $ 14,651,606

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Accounts payable and accrued expenses $ 696,797 $ 645,575

Notes, loans and finance leases payable, net 4,673,383 4,668,907

Operating lease liability 89,390 92,510

Policy benefits and losses, claims and loss expenses payable 1,007,144 997,701

Liabilities from investment contracts 2,226,560 2,161,530

Other policyholders' funds and liabilities 10,989 12,420

Deferred income 54,738 42,592

Deferred income taxes, net 1,244,353 1,178,489

Total liabilities 10,003,354 9,799,724

Common stock 10,497 10,497

Additional paid-in capital 453,819 453,819

Accumulated other comprehensive income (loss) 31,132 106,857

Retained earnings 5,293,730 4,958,359

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 5,111,528 4,851,882

Total liabilities and stockholders' equity $ 15,114,882 $ 14,651,606

AMERCO AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Quarter Ended June 30,

2021 2020

(Unaudited)

(In thousands, except share and per share data)

Revenues:

Self-moving equipment rentals $ 1,035,377 $ 654,285

Self-storage revenues 137,393 108,955

Self-moving and self-storage products and service sales 104,885 91,350

Property management fees 8,449 7,347

Life insurance premiums 28,705 30,908

Property and casualty insurance premiums 16,869 13,734

Net investment and interest income 34,999 16,982

Other revenue 106,179 63,676

Total revenues 1,472,856 987,237

Costs and expenses:

Operating expenses 614,529 492,662

Commission expenses 113,149 69,175

Cost of sales 69,915 52,831

Benefits and losses 47,298 39,577

Amortization of deferred policy acquisition costs 8,823 6,888

Lease expense 7,647 6,603

Depreciation, net of gains on disposals 121,717 165,671

Net gains on disposal of real estate (4,430) (256)

Total costs and expenses 978,648 833,151

Earnings from operations 494,208 154,086

Other components of net periodic benefit costs (280) (247)

Interest expense (39,178) (39,521)

Pretax earnings 454,750 114,318

Income tax expense (109,575) (26,592)

Earnings available to common stockholders $ 345,175 $ 87,726

Basic and diluted earnings per common stock $ 17.60 $ 4.47

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

NON-GAAP DISCLOSURE

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 June 30, 2021, the balance of ROU-financing also includes the rental equipment purchased under new financing liability leases during the first quarter. The table below shows adjusted PPE as of June 30, 2021 and March 31, 2021, 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.

June 30, March 31,

2021 2021

ROU Property, Property, June 30, Assets Plant and Plant and Equipment Equipment

2021 Financing Adjusted Adjusted

(Unaudited)

(In thousands)

Property, plant and equipment, at cost

Land $ 1,110,300 $ - $ 1,110,300 $ 1,075,813

Buildings and improvements 5,284,224 - 5,284,224 5,163,705

Furniture and equipment 796,077 22,176 818,253 808,821

Rental trailers and other rental equipment 495,012 197,981 692,993 681,515

Rental trucks 4,119,655 1,395,144 5,514,799 5,403,822

Right-of-use assets, gross 11,805,268 1,615,301 13,420,569 13,133,676

Less: Accumulated depreciation (3,235,796) (800,426) (4,036,222) (3,926,023)

Total property, plant and equipment, net $ 8,569,472 $ 814,875 $ 9,384,347 $ 9,207,653

View original content: https://www.prnewswire.com/news-releases/amerco-reports-first-quarter-fiscal-2022-financial-results-301348777.html

SOURCE AMERCO