PR Newswire | Nov 3, 2021 04:16PM EDT

11/03 15:15 CDT

AMERCO Reports Second Quarter Fiscal 2022 Financial Results RENO, Nev., Nov. 3, 2021

RENO, Nev., Nov. 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 second quarter ended September 30, 2021, of $409.9 million, or $20.90 per share, compared with net earnings of $266.4 million, or $13.58 per share, for the same period last year.

For the six-month period ended September 30, 2021, net earnings available to shareholders were $755.1 million, or $38.51 per share, compared with net earnings of $354.1 million, or $18.06 per share, for the same period last year.

"Demand for our do-it-yourself moving and storage products and services remains strong," stated Joe Shoen, chairman of AMERCO. "We are not able to purchase replacement rental trucks at the rate we want. We are making progress adding stores, self-storage, and U-Box facilities."

Highlights of Second Quarter Fiscal 2022 Results

* Self-moving equipment rental revenues increased $248.0 million or 27% during the second quarter of fiscal 2022, compared with the second quarter of fiscal 2021. Transactions for both our In-town and one-way markets increased as did revenue per transaction. This quarter's 27% improvement is compared against a second quarter from last year where we reported a 16% revenue improvement. Compared to the same period last year, we increased the number of retail locations, independent dealers, box trucks, trailers and towing device in the rental fleet. * Self-storage revenues increased $38.2 million or 33% during the second quarter of fiscal 2022, compared with the second quarter of fiscal 2021. The average monthly number of occupied units increased by 103,000 units, during the second quarter of fiscal 2022 compared with the same period last year. Occupancy for all locations increased 12.4% to 84.3% from the second 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 was 96.5%. 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 3.9 million net rentable square feet. * For the second quarter of fiscal 2022 compared with the second quarter of fiscal 2021, depreciation, net of gains and losses on sales decreased $1.7 million. This was a combination of depreciation expense on the rental equipment fleet increasing $3.9 million while being more than offset by an increase on gains from the sales of rental trucks of $8.0 million from higher resale values. All other depreciation, primarily real estate related, increased $2.5 million. * For the first six months of fiscal 2022 and fiscal 2021 gross truck and trailer capital expenditures were approximately $548 million compared with $395 million, proceeds from the sales of rental equipment were $300 million compared with $310 million and spending on real estate related acquisitions and projects were approximately $444 million compared with $226 million. * Fleet maintenance and repair costs increased $28.5 million in the second quarter of fiscal 2022 compared with the same period last year due to preventative maintenance from higher customer activity combined with a slowdown in the rotation of new equipment into the fleet and older equipment out of the fleet. * Operating earnings at our Moving and Storage operating segment increased $182.0 million in the second quarter of fiscal 2022 compared with the same period last year. Total revenues climbed $331.7 million and total costs and expenses increased $149.6 million. * Cash and credit availability at the Moving and Storage operating segment was $2,485.8 million as of September 30, 2021 compared with $1,115.3 million as of March 31, 2021. During the quarter, the Company entered into a note purchase agreement to issue $600 million of fixed rate senior unsecured notes in a private placement offering at a weighted average interest rate of 2.59%. * On August 21, 2021, we declared a cash dividend on our Common Stock of $0.50 per share to holders of record on September 7, 2021. The dividend was paid on September 21, 2021. * On October 6, 2021, we declared a cash dividend on our Common Stock of $0.50 per share to holders of record on October 18, 2021. The dividend was paid on October 29, 2021.

AMERCO will hold its investor call for the second quarter of fiscal 2022 on Thursday, November 4, 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 841,000 rentable storage units and 72.6 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 September 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 second quarter of fiscal 2022 and 2021.

Quarter Ended September 30,

2021 2020

(Unaudited)

(In thousands)

Self-moving equipment rentals $ 1,179,061 $ 931,030

Self-storage revenues 153,485 115,273

Self-moving and self-storage product and service sales 92,191 98,628

Property management fees 8,747 7,840

Life insurance premiums 28,913 31,057

Property and casualty insurance premiums 22,499 15,869

Net investment and interest income 36,780 33,333

Other revenue 142,578 91,878

Consolidated revenue $ 1,664,254 $ 1,324,908

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

Quarter Ended September 30,

2021 2020

(Unaudited)

(In thousands)

Moving and storage

Revenues $ 1,576,999 $ 1,245,318

Earnings from operations before equity in earnings of subsidiaries 555,988 373,956

Property and casualty insurance

Revenues 29,539 22,673

Earnings from operations 15,189 12,069

Life insurance

Revenues 60,985 59,560

Earnings from operations 7,913 6,040

Eliminations

Revenues (3,269) (2,643)

Earnings from operations before equity in earnings of subsidiaries (389) (275)

Consolidated Results

Revenues 1,664,254 1,324,908

Earnings from operations 578,701 391,790

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 September 30,

2021 2020

(Unaudited)

(In thousands, except occupancy rate)

Unit count as of September 30 568 520

Square footage as of September 30 47,903 43,985

Average monthly number of units occupied 476 373

Average monthly occupancy rate based on unit count 84.3% 71.9%

Average monthly square footage occupied 41,743 33,296

Listed below on a consolidated basis are revenues for our major product lines for the first six months of fiscal 2022 and 2021.

Six Months Ended September 30,

2021 2020

(Unaudited)

(In thousands)

Self-moving equipment rentals $ 2,214,438 $ 1,585,315

Self-storage revenues 290,878 224,228

Self-moving and self-storage product and service sales 197,076 189,978

Property management fees 17,196 15,187

Life insurance premiums 57,618 61,965

Property and casualty insurance premiums 39,368 29,603

Net investment and interest income 71,779 50,315

Other revenue 248,757 155,554

Consolidated revenue $ 3,137,110 $ 2,312,145

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

Six Months Ended September 30,

2021 2020

(Unaudited)

(In thousands)

Moving and storage

Revenues 2,970,253 2,171,618

Earnings from operations before equity in earnings of subsidiaries 1,038,983 525,617

Property and casualty insurance

Revenues 52,995 36,307

Earnings from operations 24,421 12,847

Life insurance

Revenues 119,644 109,213

Earnings from operations 10,279 7,960

Eliminations

Revenues (5,782) (4,993)

Earnings from operations before equity in earnings of subsidiaries (774) (548)

Consolidated Results

Revenues 3,137,110 2,312,145

Earnings from operations 1,072,909 545,876

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:

Six Months Ended September 30,

2021 2020

(Unaudited)

(In thousands, except occupancy rate)

Unit count as of September 30 568 520

Square footage as of September 30 47,903 43,985

Average monthly number of units occupied 456 360

Average monthly occupancy rate based on unit count 82.1% 69.8%

Average monthly square footage occupied 40,207 32,153

AMERCO AND CONSOLIDATED ENTITIESCONDENSED CONSOLIDATED BALANCE SHEETS

September 30, March 31,

2021 2021

(Unaudited)

(In thousands)

ASSETS

Cash and cash equivalents $ 2,430,233 $ 1,194,012

Reinsurance recoverables and trade receivables, net 227,935 224,426

Inventories and parts, net 142,955 105,577

Prepaid expenses 202,339 469,144

Investments, fixed maturities and marketable equities 2,845,147 2,695,656

Investments, other 571,942 489,759

Deferred policy acquisition costs, net 97,138 89,749

Other assets 51,626 47,730

Right of use assets - financing, net 752,990 877,038

Right of use assets - operating, net 85,237 92,505

Related party assets 38,773 35,395

7,446,315 6,320,991

Property, plant and equipment, at cost:

Land 1,172,648 1,075,813

Buildings and improvements 5,477,544 5,163,705

Furniture and equipment 811,337 786,505

Rental trailers and other rental equipment 536,814 477,921

Rental trucks 4,278,732 3,909,724

12,277,075 11,413,668

Less: Accumulated depreciation (3,386,162) (3,083,053)

Total property, plant and equipment, net 8,890,913 8,330,615

Total assets $ 16,337,228 $ 14,651,606

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Accounts payable and accrued expenses $ 694,284 $ 645,575

Notes, loans and finance leases payable, net 5,335,278 4,668,907

Operating lease liability 85,199 92,510

Policy benefits and losses, claims and loss expenses payable 1,016,505 997,701

Liabilities from investment contracts 2,276,829 2,161,530

Other policyholders' funds and liabilities 10,943 12,420

Deferred income 51,212 42,592

Deferred income taxes, net 1,312,281 1,178,489

Total liabilities 10,782,531 9,799,724

Common stock 10,497 10,497

Additional paid-in capital 453,819 453,819

Accumulated other comprehensive income 74,207 106,857

Retained earnings 5,693,824 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 5,554,697 4,851,882

Total liabilities and stockholders' equity $ 16,337,228 $ 14,651,606

AMERCO AND CONSOLIDATED ENTITIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Quarter Ended September 30,

2021 2020

(Unaudited)

(In thousands, except share and per share data)

Revenues:

Self-moving equipment rentals $ 1,179,061 $ 931,030

Self-storage revenues 153,485 115,273

Self-moving and self-storage products and service sales 92,191 98,628

Property management fees 8,747 7,840

Life insurance premiums 28,913 31,057

Property and casualty insurance premiums 22,499 15,869

Net investment and interest income 36,780 33,333

Other revenue 142,578 91,878

Total revenues 1,664,254 1,324,908

Costs and expenses:

Operating expenses 696,074 574,083

Commission expenses 127,896 99,365

Cost of sales 66,491 60,933

Benefits and losses 44,630 45,452

Amortization of deferred policy acquisition costs 6,750 5,552

Lease expense 7,441 6,870

Depreciation, net of gains on disposals 135,748 137,438

Net losses on real estate 523 3,425

Total costs and expenses 1,085,553 933,118

Earnings from operations 578,701 391,790

Other components of net periodic benefit costs (280) (246)

Interest expense (39,545) (40,525)

Pretax earnings 538,876 351,019

Income tax expense (128,978) (84,654)

Earnings available to common shareholders $ 409,898 $ 266,365

Basic and diluted earnings per common share $ 20.90 $ 13.58

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

AMERCO AND CONSOLIDATED ENTITIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Six Months Ended September 30,

2021 2020

(Unaudited)

(In thousands, except share and per share data)

Revenues:

Self-moving equipment rentals $ 2,214,438 $ 1,585,315

Self-storage revenues 290,878 224,228

Self-moving and self-storage products and service sales 197,076 189,978

Property management fees 17,196 15,187

Life insurance premiums 57,618 61,965

Property and casualty insurance premiums 39,368 29,603

Net investment and interest income 71,779 50,315

Other revenue 248,757 155,554

Total revenues 3,137,110 2,312,145

Costs and expenses:

Operating expenses 1,310,603 1,066,745

Commission expenses 241,045 168,540

Cost of sales 136,406 113,764

Benefits and losses 91,928 85,029

Amortization of deferred policy acquisition costs 15,573 12,440

Lease expense 15,088 13,473

Depreciation, net of gains on disposals 257,465 303,109

Net (gains) losses on real estate (3,907) 3,169

Total costs and expenses 2,064,201 1,766,269

Earnings from operations 1,072,909 545,876

Other components of net periodic benefit costs (560) (493)

Interest expense (78,723) (80,046)

Pretax earnings 993,626 465,337

Income tax expense (238,553) (111,246)

Earnings available to common shareholders $ 755,073 354,091

Basic and diluted earnings per common share $ 38.51 $ 18.06

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

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 September 30, 2021, the balance of ROU-financing also includes the rental equipment purchased under new financing liability leases during the first six months of fiscal 2022. The tables below show adjusted PPE as of September 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.

September 30, March 31,

2021 2021

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

2021 Financing Adjusted Adjusted

(Unaudited)

(In thousands)

Property, plant and equipment, at cost

Land $ 1,172,648 $ - $ 1,172,648 $ 1,075,813

Buildings and improvements 5,477,544 - 5,477,544 5,163,705

Furniture and equipment 811,337 18,316 829,653 808,821

Rental trailers and other rental equipment 536,814 182,741 719,555 681,515

Rental trucks 4,278,732 1,325,624 5,604,356 5,403,822

Right-of-use assets, gross 12,277,075 1,526,681 13,803,756 13,133,676

Less: Accumulated depreciation (3,386,162) (773,691) (4,159,853) (3,926,023)

Total property, plant and equipment, net $ 8,890,913 $ 752,990 $ 9,643,903 $ 9,207,653

March 31,

2021

March 31, ROU Property, Plant Assets and Equipment

2021 Financing Adjusted

(Unaudited)

(In thousands)

Property, plant and equipment, at cost

Land $ 1,075,813 $ - $ 1,075,813

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

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

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

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

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

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

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

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SOURCE AMERCO