RENO, Nev., Aug. 5 /PRNewswire-FirstCall/ -- AMERCO , parent of U-Haul International, Inc., North America's largest "do-it-yourself" moving and storage operator, today reported net earnings available to common shareholders for its first quarter ending June 30, 2009, of $19.5 million, or $1.01 per share, compared with net earnings of $26.6 million, or $1.37 per share, for the same period last year.
"Our efforts have focused on responding to the damage created by this difficult economic environment," stated Joe Shoen, chairman. "We have introduced several customer service initiatives, reduced operating costs and instituted other programs to hold our own in the current environment," concluded Shoen.
Highlights of First Quarter 2010 Results -- Self-moving equipment rental revenue decreased $17.1 million for the first quarter of fiscal 2010 compared with the first quarter of fiscal 2009. Declines in one-way moving rentals were partially offset by an increase in In-Town activity. -- Self-storage revenues decreased $547 thousand for the first quarter of fiscal 2010 compared with the first quarter of fiscal 2009. The occupancy trend began to improve during the quarter. -- For the first quarter of fiscal 2010, net losses on the disposal of equipment decreased compared with the first quarter fiscal 2009. -- Operating expenses at the Moving and Storage segment decreased $2.6 million for the first quarter of fiscal 2010 compared with the first quarter of fiscal 2009. -- Net cash provided by operating activities at the Moving and Storage segment decreased $15.1 million for the first quarter of fiscal 2010 compared with the first quarter of fiscal 2009.
AMERCO will hold its investor call for the first quarter of fiscal 2010 on Thursday, August 6, 2009, at 8 a.m. Pacific Time (11 a.m. Eastern). The call will be broadcast live over the Internet at http://www.amerco.com/. To hear a simulcast of the call, or a replay, visit http://www.amerco.com/.
About AMERCO
AMERCO is the parent company of U-Haul International, Inc., North America's largest "do-it-yourself" moving and storage operator, AMERCO Real Estate Company, Republic Western Insurance Company and Oxford Life Insurance Company.
Since 1945, U-Haul has been the best choice for the do-it-yourself mover, with a network of more than 15,800 locations in all 50 United States and 10 Canadian provinces. U-Haul customers' patronage has enabled the U-Haul fleet to grow to approximately 101,000 trucks, 76,000 trailers and 34,000 towing devices. U-Haul offers more than 398,000 rooms and approximately 35 million square feet of storage space at nearly 1,090 owned and managed facilities throughout North America. U-Haul is the consumer's number one choice as the largest installer of permanent trailer hitches in the automotive aftermarket industry. U-Haul supplies alternative-fuel for vehicles and backyard barbecues as one of the nation's largest retailers of propane.
U-Haul was founded by a Navy veteran who grew up during the Great Depression. Tires and gas were still rationed or in short supply during the late 1940s when U-Haul began serving U.S. customers. Today, that background is central to the U-Haul Sustainability Program: "Serving the needs of the present without compromising the ability of future generations to meet their own needs." Our commitment to reduce, reuse and recycle includes fuel efficient moving vans, neighborhood proximity, moving box reuse, moving pads made from discarded material and packing peanuts that are 100 percent biodegradable. Learn more about these facts and others at http://www.uhaul.com/sustainability.
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 Form 10-Q for the quarter ended June 30, 2009, which is on file with the SEC.
Report on Business Operations
Listed on a consolidated basis are revenues for our major product lines for the first quarter of fiscal 2010 and fiscal 2009.
Quarter Ended June 30, ---------------------- 2009 2008 ---- ---- (Unaudited) (In thousands) Revenue Self-moving equipment rentals $372,941 $390,029 Self-storage revenues 27,004 27,551 Self-moving & self-storage products and service sales 57,822 62,556 Property management fees 4,450 4,716 Life insurance premiums 27,604 26,917 Property & casualty insurance premiums 6,215 6,124 Net investment & interest income 13,680 14,596 Other revenue 10,943 10,305 ------- ------- Consolidated revenue $520,659 $542,794 -------- --------
Listed below are revenues and earnings from operations at each of our operating segments for the first quarter of fiscal 2010 and fiscal 2009. The insurance companies first quarter ended March 31, 2009 and 2008.
Quarter Ended June 30, ---------------------- 2009 2008 ---- ---- (Unaudited) (In thousands) Moving & storage Revenues $479,673 $501,541 Earnings from operations 57,777 69,686 Property and casualty insurance Revenues 8,051 8,890 Earnings from operations 1,427 2,205 Life insurance Revenues 33,872 33,063 Earnings from operations 2,578 4,162 Eliminations Revenues (937) (700) Earnings from operations (2,586) (4,391) Consolidated results Revenues 520,659 542,794 Earnings from operations 59,196 71,662
The Company owns and manages self-storage facilities. Self-storage revenues reported in the consolidated financial statements represent Company-owned locations only. U-Haul also provides property management services for storage locations and earns a fee for these services. These storage centers are not owned by the Company and therefore are not reported on the balance sheet and the rental revenues are not reported in the statements of operations. Self-storage data for both our owned and managed locations is as follows:
Quarter Ended June 30, ---------------------- 2009 2008 ---- ---- (Unaudited) (In thousands, except occupancy rate) Room count as of June 30 398 390 Square footage as of June 30 35,103 34,403 Average number of rooms occupied 307 320 Average occupancy rate based on room count 77.3% 82.3% Average square footage occupied 27,664 28,775 AMERCO AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2009 March 31, 2009 ------------- -------------- (Unaudited) Assets (In thousands) Cash and cash equivalents $226,717 $240,587 Reinsurance recoverables and trade receivables, net 225,717 213,853 Notes and mortgage receivables, net 2,728 2,931 Inventories, net 64,188 70,749 Prepaid expenses 61,415 54,201 Investments, fixed maturities and marketable equities 508,587 519,631 Investments, other 217,338 227,022 Deferred policy acquisition costs, net 45,432 44,993 Other assets 135,091 133,644 Related party assets 296,177 303,534 ------- ------- Total 1,783,390 1,811,145 --------- --------- Property, plant and equipment, at cost: Land 214,377 212,744 Buildings and improvements 939,264 920,294 Furniture and equipment 336,620 333,314 Rental trailers and other rental equipment 223,685 214,988 Rental trucks 1,678,102 1,666,151 --------- --------- Subtotal 3,392,048 3,347,491 Less: Accumulated depreciation (1,335,989) (1,333,563) --------- --------- Total property, plant and equipment 2,056,059 2,013,928 --------- --------- Total assets $3,839,449 $3,825,073 ========== ========== Liabilities & stockholders' equity Liabilities: Accounts payable & accrued expenses $305,543 $329,227 AMERCO's notes, loans and leases payable 1,534,320 1,546,490 Policy benefits & losses, claims & loss expenses payable 786,754 779,309 Liabilities from investment contracts 292,662 303,332 Other policyholders' funds & liabilities 9,943 11,961 Deferred income 28,730 24,612 Deferred income taxes 130,349 112,513 ------- ------- Total liabilities 3,088,301 3,107,444 --------- --------- Stockholders' equity: Series A common stock - - Common stock 10,497 10,497 Additional paid-in capital 419,604 420,588 Accumulated other comprehensive loss (83,275) (98,000) Retained earnings 935,376 915,862 Cost of common shares in treasury, net (525,653) (525,653) Unearned employee stock ownership plan shares (5,401) (5,665) ------- ------- Total stockholders' equity 751,148 717,629 ------- ------- Total liabilities & stockholders' equity $3,839,449 $3,825,073 ========== ========== AMERCO AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Quarter Ended June 30, 2009 2008 ---- ---- (Unaudited) (In thousands, except share and per share amounts) Revenues: Self-moving equipment rentals $372,941 $390,029 Self-storage revenues 27,004 27,551 Self-moving and self-storage products and service sales 57,822 62,556 Property management fees 4,450 4,716 Life insurance premiums 27,604 26,917 Property and casualty insurance premiums 6,215 6,124 Net investment and interest income 13,680 14,596 Other revenue 10,943 10,305 ------- ------- Total revenues 520,659 542,794 ------- ------- Costs and expenses: Operating expenses 258,501 261,713 Commission expenses 44,411 47,965 Cost of sales 30,450 34,985 Benefits and losses 27,694 24,875 Amortization of deferred policy acquisition costs 1,917 2,088 Lease expense 39,273 34,568 Depreciation, net of (gains) losses on disposals 59,217 64,938 ------- ------- Total costs and expenses 461,463 471,132 ------- ------- Earnings from operations 59,196 71,662 Interest expense (23,221) (23,844) ------- ------- Pretax earnings 35,975 47,818 Income tax expense (13,543) (17,992) ------- ------- Net earnings 22,432 29,826 Excess carrying amount of preferred stock over consideration paid 323 - Less: Preferred stock dividends (3,241) (3,241) ------- ------- Earnings available to common shareholders $19,514 $26,585 ======= ======= Basic and diluted earnings per common share $1.01 $1.37 ======= ======= Weighted average common shares outstanding: Basic and diluted 19,369,591 19,343,184 ========== ==========
AMERCO
CONTACT: Jennifer Flachman, Director of Investor Relations of AMERCO,
+1-602-263-6601, Flachman@amerco.com
Web Site: http://www.amerco.com/
http://www.uhaul.com/sustainability
