Le Lézard
Classified in: Transportation, Business
Subjects: ERN, CCA, FVT

AMERCO Reports Fiscal 2018 Financial Results


RENO, Nev., May 30, 2018 /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, 2018, were $790.6 million, or $40.36 per share, compared with $398.4 million, or $20.34 per share for the same period last year. Included in the results for the year ended March 31, 2018, was a $18.16 per share, or $355.7 million benefit resulting from the Tax Reform Act and an additional after-tax benefit of $7.34 per share or $143.8 million resulting from the sale of a portion of our Chelsea, NY property.  Excluding these items, adjusted earnings were $14.86 per share for the year ended March 31, 2018. Included in the results for the year ended March 31, 2017, was an after tax benefit of $0.79 per share associated with our settlement of the PEI litigation that resulted in a reduction in operating expenses of $24.6 million. Excluding this after tax benefit, adjusted earnings were $19.55 per share for the year ended March 31, 2017.

For the quarter ended March 31, 2018, the Company reported net earnings available to shareholders of $10.8 million, or $0.56 per share compared with net earnings of $9.5 million, or $0.49 per share for the same period last year. Included in the results for the quarter ended March 31, 2018, was a $0.84 per share, or $16.5 million benefit resulting from the Tax Reform Act, excluding this, adjusted losses were ($0.28) per share for the quarter ended March 31, 2018.

"Customer demand for our self-moving and self-storage products remains steady," stated Joe Shoen, chairman of AMERCO. "We made progress in managing the sale of our pickups and cargo vans during the quarter but more work remains. We continue to invest in self-storage, the rental fleet and technology for the long-term."

Highlights of Fiscal Year and Fourth Quarter 2018 Results

AMERCO will hold its investor call for fiscal 2018 on Thursday, May 31, 2018, 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, 2018, 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 2018 and 2017.



Quarter Ended March 31,


Twelve Months Ended
March 31,



2018


2017


2018


2017



(In thousands)

Self-moving equipment rentals

$

494,525

$

463,314

$

2,479,742

$

2,362,833

Self-storage revenues


84,586


74,692


323,903


286,886

Self-moving and self-storage product and service sales


56,248


53,878


261,557


253,073

Property management fees


6,128


6,025


29,602


29,075

Life insurance premiums


37,793


40,515


154,703


163,579

Property and casualty insurance premiums


14,166


12,132


57,100


52,334

Net investment and interest income


27,966


26,522


110,473


102,276

Other revenue


36,209


32,358


184,034


171,711

Consolidated revenue


757,621


709,436


3,601,114


3,421,767

Listed below are revenues and earnings from operations at each of our operating segments for the fourth quarter and the full year of fiscal 2018 and 2017.


Quarter Ended March 31,


Twelve Months Ended
March 31,


2018


2017


2018


2017


(In thousands)

Moving and storage








   Revenues

680,445


632,785


3,290,667


3,113,000

   Earnings from operations before equity in earnings of subsidiaries

(11,121)


28,995


711,773


688,913

Property and casualty insurance 








   Revenues

18,867


15,833


74,571


68,986

   Earnings from operations

6,760


5,345


25,878


27,161

Life insurance  








   Revenues

60,397


62,149


243,862


245,599

   Earnings from operations

7,423


9,760


27,959


27,646

Eliminations








   Revenues

(2,088)


(1,331)


(7,986)


(5,818)

   Earnings from operations before equity in earnings of subsidiaries

(292)


(355)


(1,291)


(1,457)

Consolidated Results








   Revenues

757,621


709,436


3,601,114


3,421,767

   Earnings from operations

2,770


43,745


764,319


742,263

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:



Quarter Ended March 31,



2018


2017



(In thousands, except occupancy rate)

Room count as of March 31


366


318

Square footage as of March 31


30,974


27,305

Average monthly number of rooms occupied


249


226

Average monthly occupancy rate based on room count


68.9%


72.2%

Average monthly square footage occupied


22,621


20,514













Twelve Months Ended March 31,



2018


2017



(In thousands, except occupancy rate)

Room count as of March 31


366


318

Square footage as of March 31


30,974


27,305

Average monthly number of rooms occupied


246


226

Average monthly occupancy rate based on room count


71.6%


75.8%

Average monthly square footage occupied


22,203


20,386

 

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED BALANCE SHEETS




March 31,


March 31,



2018


2017



(Unaudited)





(In thousands)

ASSETS





Cash and cash equivalents

$

759,388

$

697,806

Reinsurance recoverables and trade receivables, net


193,538


178,081

Inventories and parts, net


89,877


82,439

Prepaid expenses


165,692


124,728

Investments, fixed maturities and marketable equities


1,919,860


1,663,768

Investments, other


399,064


367,830

Deferred policy acquisition costs, net


124,767


130,213

Other assets


244,782


97,525

Related party assets


33,276


86,168



3,930,244


3,428,558

Property, plant and equipment, at cost:





   Land


827,649


648,757

   Buildings and improvements


3,140,713


2,618,265

   Furniture and equipment


632,803


510,415

   Rental trailers and other rental equipment


545,968


492,280

   Rental trucks


4,390,750


4,091,598



9,537,883


8,361,315

Less: Accumulated depreciation


(2,721,142)


(2,384,033)

   Total property, plant and equipment


6,816,741


5,977,282

Total assets

$

10,746,985

$

9,405,840

LIABILITIES AND STOCKHOLDERS' EQUITY





Liabilities:





   Accounts payable and accrued expenses

$

510,678

$

450,541

   Notes, loans and leases payable


3,513,076


3,262,880

   Policy benefits and losses, claims and loss expenses payable


1,248,033


1,086,322

   Liabilities from investment contracts


1,364,066


1,112,498

   Other policyholders' funds and liabilities


10,040


10,150

   Deferred income


34,276


28,696

   Deferred income taxes


658,108


835,009

Total liabilities


7,338,277


6,786,096






Common stock


10,497


10,497

Additional paid-in capital


452,746


452,172

Accumulated other comprehensive loss


(4,623)


(51,236)

Retained earnings


3,635,561


2,892,893

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


(7,823)


(6,932)

Total stockholders' equity


3,408,708


2,619,744

Total liabilities and stockholders' equity

$

10,746,985

$

9,405,840

 

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




Quarter Ended March 31,



2018


2017



(In thousands, except share and per share data)

Revenues:





   Self-moving equipment rentals

$

494,525

$

463,314

   Self-storage revenues


84,586


74,692

   Self-moving and self-storage products and service sales


56,248


53,878

   Property management fees


6,128


6,025

   Life insurance premiums


37,793


40,515

   Property and casualty insurance premiums


14,166


12,132

   Net investment and interest income


27,966


26,522

   Other revenue


36,209


32,358

      Total revenues


757,621


709,436






Costs and expenses:





   Operating expenses


460,506


395,436

   Commission expenses


54,502


51,900

   Cost of sales


36,033


35,634

   Benefits and losses


45,314


43,468

   Amortization of deferred policy acquisition costs


6,297


7,087

   Lease expense


8,683


8,139

   Depreciation, net of gains on disposals


146,707


125,240

   Net gains on disposal of real estate


(3,191)


(1,213)

      Total costs and expenses


754,851


665,691






Earnings from operations


2,770


43,745

   Interest expense


(32,780)


(30,209)

Pretax earnings (losses)


(30,010)


13,536

   Income tax benefit (expense)


40,853


(3,988)

Earnings available to common shareholders

$

10,843

$

9,548

Basic and diluted earnings per common share

$

0.56

$

0.49

Weighted average common shares outstanding: Basic and diluted


19,589,871


19,587,204

 

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




Twelve Months Ended March 31,



2018


2017



(In thousands, except share and per share data)

Revenues:





   Self-moving equipment rentals

$

2,479,742

$

2,362,833

   Self-storage revenues


323,903


286,886

   Self-moving and self-storage products and service sales


261,557


253,073

   Property management fees


29,602


29,075

   Life insurance premiums


154,703


163,579

   Property and casualty insurance premiums


57,100


52,334

   Net investment and interest income


110,473


102,276

   Other revenue


184,034


171,711

      Total revenues


3,601,114


3,421,767






Costs and expenses:





   Operating expenses


1,807,983


1,568,083

   Commission expenses


276,705


267,230

   Cost of sales


160,489


152,485

   Benefits and losses


185,311


182,710

   Amortization of deferred policy acquisition costs


24,514


26,218

   Lease expense


33,960


37,343

   Depreciation, net of gains on disposals


543,247


449,025

   Net gains on disposal of real estate


(195,414)


(3,590)

      Total costs and expenses


2,836,795


2,679,504






Earnings from operations


764,319


742,263

   Interest expense


(126,706)


(113,406)

   Amortization on early extinguishment of debt


-


(499)

Pretax earnings


637,613


628,358

   Income tax benefit (expense)


152,970


(229,934)

Earnings available to common shareholders

$

790,583

$

398,424

Basic and diluted earnings per common share

$

40.36

$

20.34

Weighted average common shares outstanding: Basic and diluted


19,588,889


19,586,606

 

NON-GAAP FINANCIAL RECONCILIATION SCHEDULE




Year Ended



March 31, 2018




(In thousands, except share and per share amounts)






AMERCO and Consolidated Subsidiaries



Earnings per common share: basic and diluted

$

40.36

Gain on sale of Chelsea property, per common share basic and diluted


(7.34)

Earnings per common share: basic and diluted before gain on sale of Chelsea property

$

33.02




Gain on sale of Chelsea property

$

190,712

Income tax expense


(46,915)

Gain on sale of Chelsea property, net of taxes

$

143,797

Gain on sale of Chelsea property, net of taxes, per common share basic and diluted

$

7.34

Weighted average shares outstanding: basic and diluted


19,588,889






Year Ended



March 31, 2018




(In thousands, except share and per share amounts)






AMERCO and Consolidated Subsidiaries



Earnings per common share: basic and diluted

$

40.36

Tax Reform Act adjustment, per common share basic and diluted


(18.16)

Earnings per common share: basic and diluted before Tax Reform Act adjustment

$

22.20




Tax Reform Act adjustment

$

355,748

Tax Reform Act adjustment, per common share basic and diluted

$

18.16

Weighted average shares outstanding: basic and diluted


19,588,889






Quarter Ended



March 31, 2018




(In thousands, except share and per share amounts)






AMERCO and Consolidated Subsidiaries



Earnings per common share: basic and diluted

$

0.56

Tax Reform Act adjustment, per common share basic and diluted


(0.84)

Losses per common share: basic and diluted before Tax Reform Act adjustment

$

(0.28)




Tax Reform Act adjustment

$

16,527

Tax Reform Act adjustment, per common share basic and diluted

$

0.84

Weighted average shares outstanding: basic and diluted


19,589,871






Year Ended



March 31, 2017




(In thousands, except share and per share amounts)






AMERCO and Consolidated Subsidiaries



Earnings per common share: basic and diluted

$

20.34

PEI litigation accrual reduction, net of taxes, per common share basic and diluted


(0.79)

Earnings per common share: basic and diluted before PEI litigation accrual reduction

$

19.55




PEI litigation accrual reduction

$

24,600

Income tax benefit


(9,053)

PEI litigation accrual reduction, net of taxes

$

15,547

PEI litigation accrual reduction, net of taxes, per common share basic and diluted

$

0.79

Weighted average shares outstanding: basic and diluted


19,586,606

 

SOURCE AMERCO


These press releases may also interest you

at 07:05
Syngenta Group today announced financial results for the fourth quarter and full year 2023. Syngenta Group sales for full year 2023 were $32.2 billion, down $1.2 billion or 4 percent year-on-year (-1% CER). Full year EBITDA decreased 18 percent...

at 07:00
Scrum Ventures, a San Francisco and Tokyo-based early-stage venture capital firm, announced that NBA Champion and entrepreneur Kyle Kuzma, will join the fund as an advisor....

at 07:00
Operation HOPE announced today that "FINANCIAL LITERACY FOR ALL," the latest book by its Founder and CEO John Hope Bryant, has reached #1 on Amazon for Economics, prior to its April 16, 2024 release. From the best-selling author of "Up from Nothing,"...

at 06:37
According to a Department of Justice press release, a South Carolina man was recently sentenced to serve time in federal prison after a criminal tax conviction. This story should serve as a reminder that the consequences of intentionally dodging tax...

at 06:17
NEI Global Relocation's latest whitepaper, "2024 Relocation Trends | Manufacturing," provides a compelling look into how innovative relocation strategies are crucial for the manufacturing sector's talent acquisition and retention efforts. This comes...

at 06:13
JinkoSolar Holding Co., Ltd. ("JinkoSolar" or the "Company") , one of the largest and most innovative solar module manufacturers in the world, today announced that since March 20, 2024, the Company has repurchased 788,178 American depositary shares...



News published on and distributed by: