RENO, Nev., June 9 /PRNewswire-FirstCall/ -- AMERCO , parent of U-Haul International, Inc., North America's largest "do-it-yourself" moving and storage operator, today reported that net earnings available to common shareholders for the year ended March 31, 2010 were $53.2 million, or $2.74 per share, compared with net earnings of $447 thousand, or $0.02 per share for the same period last year.
For the quarter ended March 31, 2010, the Company reported a net loss to common shareholders of $8.2 million, or $0.43 per share, compared with a net loss of $38.5 million, or $1.99 per share for the same period last year.
"We experienced marked improvement in our results over the second half of this past year," stated Joe Shoen, chairman of AMERCO. "While we are pleased with the progress made during the year, there is still much work to be done. Our employees, dealers and affiliates are to be commended for their dedication and efforts toward serving U-Haul customers," concluded Shoen.
Highlights of Full-Year and Fourth-Quarter 2010 Results -- Self-moving equipment rental revenue increased $16.1 million in the fourth quarter of fiscal 2010 compared with the fourth quarter of fiscal 2009, but finished the full year down $3.3 million compared with the full year of fiscal 2009. The quarterly improvement comes primarily from increased transactions in both our one-way and in-town markets. -- Self-storage revenues for Moving and Storage segment increased $0.3 million for the fourth quarter of fiscal 2010 compared with the fourth quarter of fiscal 2009 and finished the full year down $0.2 million compared with fiscal 2009. We began to generate occupancy gains over the last half of fiscal 2010 compared with the same period last year. During fiscal 2010 we added over 580,000 of net rentable square feet to the storage portfolio. -- Operating expenses at the Moving and Storage segment decreased $13.0 million for the fourth quarter of fiscal 2010 compared with the fourth quarter of fiscal 2009 and finished the full year down $35.8 million. Maintenance and repair costs have been positively influenced by the retirement of older equipment from the fleet and liability costs have decreased as expected losses from prior years are developing positively. -- For the fourth quarter of fiscal 2010 net gains on the disposal of property, plant and equipment were $0.5 million compared with losses of $1.6 million in fiscal 2009. For the full year in fiscal 2010 these gains were $2.0 million compared with net losses of $16.6 million in fiscal 2009. Excluding these disposal gains and losses, total depreciation decreased $8.5 million for the fourth quarter of 2010 and $19.0 million for the full year. -- Gross truck and trailer capital expenditures for the fiscal 2010 were approximately $218 million compared with $516 million in fiscal 2009. Proceeds from the sales of rental equipment increased $17.5 million to $140.5 million for fiscal 2010 compared with fiscal 2009.
AMERCO will hold its investor call for the fiscal year 2010 on Thursday, June 10, 2010, at 8 a.m. Arizona 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 choice for the do-it-yourself mover, with a network of more than 16,300 locations in all 50 States and 10 Canadian provinces. U-Haul customers' patronage has enabled the Company to maintain the largest rental fleet in the "do-it-yourself" moving industry with approximately 98,000 trucks, 77,000 trailers and 34,000 towing devices. U-Haul offers nearly 402,000 rooms and approximately 35.5 million square feet of storage space at nearly 1,100 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. The Company supplies alternative-fuel for vehicles and backyard barbecues as one of the nation's largest retailers of propane.
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-K for the year ended March 31, 2010, 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 fourth quarter and the full year of fiscal 2010 and fiscal 2009.
Twelve Months Ended Mar. Quarter Ended Mar. 31, 31, 2010 2009 2010 2009 ---- ---- ---- ---- (In thousands) Self-moving equipment rentals $298,307 $282,192 1,419,726 $1,423,022 Self- storage revenues 28,022 27,699 110,369 110,548 Self-moving and self- storage products and service sales 44,364 39,879 198,785 199,394 Property management fees 7,200 7,696 21,632 23,192 Life insurance premiums 38,992 28,047 134,345 109,572 Property & casualty insurance premiums 6,554 6,725 27,625 28,337 Net investment & interest income 11,081 13,529 49,989 58,021 Other revenue 9,274 9,626 39,534 40,180 ----- ----- ------ ------ Consolidated revenue $443,794 $415,393 $2,002,005 $1,992,266 -------- -------- ---------- ----------
Listed below are revenues and earnings (loss) from operations at each of our operating segments for the fourth quarter and the full year of fiscal 2010 and fiscal 2009.
Twelve Months Ended Mar. Quarter Ended Mar. 31, 31, 2010 2009 2010 2009 ---- ---- ---- ---- Moving and storage (In thousands) Revenues $393,268 $373,679 $1,816,322 $1,823,049 Earnings (loss) from operations 7,537 (33,951) 185,329 112,080 Property and casualty insurance Revenues 7,838 8,527 34,390 37,419 Earnings from operations 1,593 496 6,279 7,505 Life insurance Revenues 43,729 34,135 155,725 135,056 Earnings from operations 4,807 4,357 16,858 17,748 Eliminations Revenues (1,041) (948) (4,432) (3,258) Earnings from operations (3,972) (3,037) (14,929) (16,285) Consolidated results Revenues 443,794 415,393 2,002,005 1,992,266 Earnings (loss) from operations 9,965 (32,135) 193,537 121,048 AMERCO AND CONSOLIDATED ENTITIES CONSOLIDATED BALANCE SHEETS March 31, 2010 2009 --------------------- ASSETS (In thousands) Cash and cash equivalents $244,118 $240,587 Reinsurance recoverables and trade receivables, net 198,283 213,853 Notes and mortgage receivables, net 1,461 2,931 Inventories, net 52,837 70,749 Prepaid expenses 53,379 53,733 Investments, fixed maturities and marketable equities 549,318 519,631 Investments, other 227,486 227,022 Deferred policy acquisition costs, net 39,194 44,993 Other assets 145,864 134,112 Related party assets 302,126 303,534 ------- ------- 1,814,066 1,811,145 --------- --------- Property, plant and equipment, at cost: Land 224,904 212,744 Buildings and improvements 970,937 920,294 Furniture and equipment 323,334 333,314 Rental trailers and other rental equipment 244,131 214,988 Rental trucks 1,529,817 1,666,151 3,293,123 3,347,491 Less: Accumulated depreciation (1,344,735) (1,333,563) ---------- ---------- Total property, plant and equipment 1,948,388 2,013,928 --------- --------- Total assets $3,762,454 $3,825,073 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Accounts payable and accrued expenses $296,057 $329,227 Notes, loans and leases payable 1,347,635 1,546,490 Policy benefits and losses, claims and loss expenses payable 816,909 779,309 Liabilities from investment contracts 268,810 303,332 Other policyholders' funds and liabilities 8,155 11,961 Deferred income 25,207 24,612 Deferred income taxes 186,770 112,513 Total liabilities 2,949,543 3,107,444 --------- --------- Stockholders' equity: Common stock 10,497 10,497 Additional paid-in capital 419,811 420,588 Accumulated other comprehensive loss (56,207) (98,000) Retained earnings 969,017 915,862 Cost of common shares in treasury, net (525,653) (525,653) Unearned employee stock ownership plan shares (4,554) (5,665) ------ ------ Total stockholders' equity 812,911 717,629 ------- ------- Total liabilities and stockholders' equity $3,762,454 $3,825,073 ========== ========== AMERCO AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Quarter Ended March 31, 2010 2009 ----------------------- (In thousands, except share and per share amounts) Revenues: Self-moving equipment rentals $298,307 $282,192 Self-storage revenues 28,022 27,699 Self-moving and self-storage products and service sales 44,364 39,879 Property management fees 7,200 7,696 Life insurance premiums 38,992 28,047 Property and casualty insurance premiums 6,554 6,725 Net investment and interest income 11,081 13,529 Other revenue 9,274 9,626 ----- ----- Total revenues 443,794 415,393 ------- ------- Costs and expenses: Operating expenses 245,117 257,353 Commission expenses 35,621 32,592 Cost of sales 24,443 23,531 Benefits and losses 33,645 23,040 Amortization of deferred policy acquisition costs 1,202 5,225 Lease expense 39,205 40,621 Depreciation, net of (gains) losses on disposals 54,596 65,166 ------ ------ Total costs and expenses 433,829 447,528 ------- ------- Earnings (loss) from operations 9,965 (32,135) Interest expense (22,671) (23,696) Pretax loss (12,706) (55,831) Income tax benefit 7,686 20,543 ----- ------ Net loss (5,020) (35,288) Excess carrying amount of preferred stock over consideration paid 7 - Less: Preferred stock dividends (3,198) (3,240) ------ ------ Loss available to common shareholders $(8,211) $(38,528) ======= ======== Basic and diluted loss per common share $(0.43) $(1.99) ====== ====== Weighted average common shares outstanding: Basic and diluted 19,402,035 19,357,185 ========== ========== AMERCO AND CONSOLIDATED ENTITIES CONSOLIDATED STATEMENTS OF OPERATIONS Twelve Months Ended March 31, 2010 2009 -------------------- (In thousands, except share and per share amounts) Revenues: Self-moving equipment rentals $1,419,726 $1,423,022 Self-storage revenues 110,369 110,548 Self-moving and self-storage products and service sales 198,785 199,394 Property management fees 21,632 23,192 Life insurance premiums 134,345 109,572 Property and casualty insurance premiums 27,625 28,337 Net investment and interest income 49,989 58,021 Other revenue 39,534 40,180 ------ ------ Total revenues 2,002,005 1,992,266 --------- --------- Costs and expenses: Operating expenses 1,022,061 1,057,880 Commission expenses 169,104 171,303 Cost of sales 104,049 114,387 Benefits and losses 121,105 97,617 Amortization of deferred policy acquisition costs 7,569 12,394 Lease expense 156,951 152,424 Depreciation, net of (gains) losses on disposals 227,629 265,213 ------- ------- Total costs and expenses 1,808,468 1,871,218 --------- --------- Earnings from operations 193,537 121,048 Interest expense (93,347) (98,470) ------- Pretax earnings 100,190 22,578 Income tax expense (34,567) (9,168) ------- ------ Net earnings 65,623 13,410 Excess carrying amount of preferred stock over consideration paid 388 - Less: Preferred stock dividends (12,856) (12,963) ------- ------- Earnings available to common shareholders $53,155 $447 ======= ==== Basic and diluted earnings per common share $2.74 $0.02 ===== ===== Weighted average common shares outstanding: Basic and diluted 19,386,791 19,350,041 ========== ==========
AMERCO
CONTACT: Jennifer Flachman, Director of Investor Relations of AMERCO,
+1-602-263-6601, Flachman@amerco.com
Web Site: http://www.amerco.com/
