RENO, Nev., Aug. 5, 2020 /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, 2020, of $87.7 million, or $4.47 per share, compared with net earnings of $132.4 million, or $6.76 per share, for the same period last year.
"Customer demand for U-Haul products and services has rebounded as society learns to cope with the effects of COVID-19," stated Joe Shoen, chairman of AMERCO. "As essential critical workers, the U-Haul team has stood tall and come through for the customer."
Highlights of First Quarter Fiscal 2021 Results
AMERCO will hold its investor call for the first quarter of fiscal 2021 on Thursday, August 6, 2020, 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-Q for the quarter ended June 30, 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 first quarter of fiscal 2021 and 2020.
Quarter Ended June 30, | ||||
2020 | 2019 | |||
(Unaudited) | ||||
(In thousands) | ||||
Self-moving equipment rentals | $ | 654,285 | $ | 748,596 |
Self-storage revenues | 108,955 | 98,274 | ||
Self-moving and self-storage product and service sales | 91,350 | 80,026 | ||
Property management fees | 7,347 | 7,156 | ||
Life insurance premiums | 30,908 | 32,710 | ||
Property and casualty insurance premiums | 13,734 | 13,424 | ||
Net investment and interest income | 16,982 | 35,749 | ||
Other revenue | 63,676 | 63,314 | ||
Consolidated revenue | $ | 987,237 | $ | 1,079,249 |
Listed below are revenues and earnings from operations at each of our operating segments for the first quarter of fiscal 2021 and 2020.
Quarter Ended June 30, | ||||
2020 | 2019 | |||
(Unaudited) | ||||
(In thousands) | ||||
Moving and storage | ||||
Revenues | $ | 926,300 | $ | 1,000,398 |
Earnings from operations before equity in earnings of subsidiaries | 151,661 | 201,896 | ||
Property and casualty insurance | ||||
Revenues | 13,634 | 20,305 | ||
Earnings from operations | 778 | 8,466 | ||
Life insurance | ||||
Revenues | 49,653 | 60,321 | ||
Earnings from operations | 1,920 | 3,781 | ||
Eliminations | ||||
Revenues | (2,350) | (1,775) | ||
Earnings from operations before equity in earnings of subsidiaries | (273) | (278) | ||
Consolidated Results | ||||
Revenues | 987,237 | 1,079,249 | ||
Earnings from operations | 154,086 | 213,865 |
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, | ||||
2020 | 2019 | |||
(Unaudited) | ||||
(In thousands, except occupancy rate) | ||||
Unit count as of June 30 | 516 | 452 | ||
Square footage as of June 30 | 43,393 | 38,175 | ||
Average monthly number of units occupied | 347 | 302 | ||
Average monthly occupancy rate based on unit count | 67.6% | 68.4% | ||
Average monthly square footage occupied | 31,010 | 27,421 |
AMERCO AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
June 30, | March 31, | |||
2020 | 2020 | |||
(Unaudited) | ||||
(In thousands) | ||||
ASSETS | ||||
Cash and cash equivalents | $ | 825,074 | $ | 494,352 |
Reinsurance recoverables and trade receivables, net | 208,371 | 186,672 | ||
Inventories and parts, net | 100,835 | 101,083 | ||
Prepaid expenses | 585,879 | 562,904 | ||
Investments, fixed maturities and marketable equities | 2,393,522 | 2,492,738 | ||
Investments, other | 395,123 | 360,373 | ||
Deferred policy acquisition costs, net | 117,123 | 103,118 | ||
Other assets | 70,415 | 71,956 | ||
Right of use assets ? financing, net | 1,026,928 | 1,080,353 | ||
Right of use assets - operating | 106,682 | 106,631 | ||
Related party assets | 9,406 | 34,784 | ||
5,839,358 | 5,594,964 | |||
Property, plant and equipment, at cost: | ||||
Land | 1,043,952 | 1,032,945 | ||
Buildings and improvements | 4,752,816 | 4,663,461 | ||
Furniture and equipment | 754,641 | 752,363 | ||
Rental trailers and other rental equipment | 513,623 | 511,520 | ||
Rental trucks | 3,619,718 | 3,595,933 | ||
10,684,750 | 10,556,222 | |||
Less: Accumulated depreciation | (2,811,749) | (2,713,162) | ||
Total property, plant and equipment, net | 7,873,001 | 7,843,060 | ||
Total assets | $ | 13,712,359 | $ | 13,438,024 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Liabilities: | ||||
Accounts payable and accrued expenses | $ | 582,356 | $ | 554,353 |
Notes, loans and finance/capital leases payable, net | 4,777,963 | 4,621,291 | ||
Operating lease liability | 106,614 | 106,443 | ||
Policy benefits and losses, claims and loss expenses payable | 998,762 | 997,647 | ||
Liabilities from investment contracts | 1,833,617 | 1,802,217 | ||
Other policyholders' funds and liabilities | 6,764 | 10,190 | ||
Deferred income | 42,789 | 31,620 | ||
Deferred income taxes, net | 1,106,312 | 1,093,543 | ||
Total liabilities | 9,455,177 | 9,217,304 | ||
Common stock | 10,497 | 10,497 | ||
Additional paid-in capital | 453,819 | 453,819 | ||
Accumulated other comprehensive income (loss) | (13,732) | 34,652 | ||
Retained earnings | 4,484,248 | 4,399,402 | ||
Cost of common stock in treasury, net | (525,653) | (525,653) | ||
Cost of preferred stock in treasury, net | (151,997) | (151,997) | ||
Unearned employee stock ownership plan stock | - | - | ||
Total stockholders' equity | 4,257,182 | 4,220,720 | ||
Total liabilities and stockholders' equity | $ | 13,712,359 | $ | 13,438,024 |
AMERCO AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Quarter Ended June 30, | ||||
2020 | 2019 | |||
(Unaudited) | ||||
(In thousands, except share and per share data) | ||||
Revenues: | ||||
Self-moving equipment rentals | $ | 654,285 | $ | 748,596 |
Self-storage revenues | 108,955 | 98,274 | ||
Self-moving and self-storage products and service sales | 91,350 | 80,026 | ||
Property management fees | 7,347 | 7,156 | ||
Life insurance premiums | 30,908 | 32,710 | ||
Property and casualty insurance premiums | 13,734 | 13,424 | ||
Net investment and interest income | 16,982 | 35,749 | ||
Other revenue | 63,676 | 63,314 | ||
Total revenues | 987,237 | 1,079,249 | ||
Costs and expenses: | ||||
Operating expenses | 492,662 | 534,472 | ||
Commission expenses | 69,175 | 80,899 | ||
Cost of sales | 52,831 | 48,929 | ||
Benefits and losses | 39,577 | 49,006 | ||
Amortization of deferred policy acquisition costs | 6,888 | 6,064 | ||
Lease expense | 6,603 | 7,036 | ||
Depreciation, net of gains on disposals | 165,671 | 140,600 | ||
Net gains on disposal of real estate | (256) | (1,622) | ||
Total costs and expenses | 833,151 | 865,384 | ||
Earnings from operations | 154,086 | 213,865 | ||
Other components of net periodic benefit costs | (247) | (263) | ||
Interest expense | (39,521) | (38,888) | ||
Pretax earnings | 114,318 | 174,714 | ||
Income tax expense | (26,592) | (42,292) | ||
Earnings available to common stockholders | $ | 87,726 | $ | 132,422 |
Basic and diluted earnings per common stock | $ | 4.47 | $ | 6.76 |
Weighted average common stock outstanding: Basic and diluted | 19,607,788 | 19,597,697 | ||
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, 2020, 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, 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.
June 30, | March 31, | |||||||
2020 | 2020 | |||||||
June 30, | ROU Assets | Property, | Property, | |||||
2020 | Financing | Adjusted | Adjusted | |||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
Property, plant and equipment, at cost | ||||||||
Land | $ | 1,043,952 | $ | - | $ | 1,043,952 | $ | 1,032,945 |
Buildings and improvements | 4,752,816 | - | 4,752,816 | 4,663,461 | ||||
Furniture and equipment | 754,641 | 21,111 | 775,752 | 773,476 | ||||
Rental trailers and other rental equipment | 513,623 | 115,967 | 629,590 | 627,592 | ||||
Rental trucks | 3,619,718 | 1,697,339 | 5,317,057 | 5,334,014 | ||||
Right-of-use assets, gross | 10,684,750 | 1,834,417 | 12,519,167 | 12,431,488 | ||||
Less: Accumulated depreciation | (2,811,749) | (807,489) | (3,619,238) | (3,508,075) | ||||
Total property, plant and equipment, net | $ | 7,873,001 | $ | 1,026,928 | $ | 8,899,929 | $ | 8,923,413 |
SOURCE AMERCO
These press releases may also interest you
|