Le Lézard
Classified in: Transportation, Business, Covid-19 virus
Subjects: ERN, CCA

AMERCO Reports First Quarter Fiscal 2021 Financial Results


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,
Plant and
Equipment


Property,
Plant and
Equipment



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


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