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Press release from PR Newswire

AMERCO Reports Second Quarter Fiscal 2013 Financial Results; Board Declares Special Cash Dividend Of $5.00 Per Share

Wednesday, November 07, 2012

AMERCO Reports Second Quarter Fiscal 2013 Financial Results; Board Declares Special Cash Dividend Of $5.00 Per Share17:35 EST Wednesday, November 07, 2012RENO, Nev., Nov. 7, 2012 /PRNewswire/ -- AMERCO (Nasdaq: UHAL), parent of U-Haul International, Inc., Oxford Life Insurance Company, Repwest Insurance Company and Amerco Real Estate Company, today reported its financial results for the second quarter ended September 30, 2012 and its Board of Directors declared a special cash dividend of $5.00 per share, payable on November 30, 2012 to stockholders of record as of November 19, 2012. AMERCO's net earnings available to common shareholders for its second quarter ended September 30, 2012, were $109.4 million, or $5.61 per share, compared with net earnings of $101.2 million, or $5.20 per share, for the same period last year.For the six-month period ended September 30, 2012, net earnings available to common shareholders were $190 million, or $9.74 per share compared with net earnings of $170.4 million, or $8.75 per share, for the same period last year. The first six months of the last fiscal year included a $0.30 per share one-time charge related to the redemption of our Series A 8½% Preferred Stock."Our Moving and Self-Storage segment continues to produce strong results," stated Joe Shoen, chairman of AMERCO.  "We will continue to work hard to build on this success as we enter our traditionally slower fall and winter quarters. "Hurricane Sandy affected operations at about 100 Company operated locations, all but one are now open. We have storm-damaged buildings, rental equipment and customer's belongings. It will be weeks before we can assess the storm's financial impact," concluded Shoen. Highlights of Second Quarter Fiscal 2013 ResultsSelf-moving equipment rental revenues increased $26.7 million during the second quarter of fiscal 2013, compared with the second quarter of fiscal 2012 on continued growth in moving transactions. Self-storage revenues increased $4.0 million during the second quarter of fiscal 2013, compared with the second quarter of fiscal 2012.  We are increasing both the number of rooms rented through acquisitions and by improving occupancy at existing locations.  Over the last twelve months we have added approximately 1.6 million net rentable square feet with nearly 0.6 million of that during the second quarter of fiscal 2013.  Operating expenses for the Moving and Self-Storage operating segment increased $14.3 million with a significant portion of this coming from spending on personnel, legal expense and liability costs. Depreciation expense, net, increased $10.9 million while lease expense decreased $3.1 million as a result of the Company's shift in financing new equipment on the balance sheet versus through operating leases. During the first quarter of fiscal 2013, SAC Holdings repaid AMERCO $127.3 million for notes and interest outstanding. These notes carried interest rates of 9%. This loss of yield caused a $2.9 million decline in interest income for the second quarter of fiscal 2013.AMERCO will hold its investor call for the second quarter of fiscal 2013 on Thursday, November 8, 2012, at 8 a.m. Arizona Time (10 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. Use of Non-GAAP Financial InformationThe Company reports its financial results in accordance with generally accepted accounting principles (GAAP). However, the Company uses certain non-GAAP performance measures, including adjusted earnings per share, to provide a better understanding of the Company's underlying operational results. The Company uses adjusted earnings per share to present the impact of certain transactions or events that management expects to occur only infrequently.About AMERCOAMERCO 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 September 30, 2012, which is on file with the SEC.Report on Business OperationsListed below on a consolidated basis are revenues for our major product lines for the second quarter of fiscal 2013 and 2012.Quarter Ended September 30,20122011(Unaudited)(In thousands)Revenue:  Self-moving equipment rentals$538,361$511,626  Self-storage revenues37,97834,008  Self-moving and self-storage products and service sales                                             61,73059,768  Property management fees4,9024,826  Life insurance premiums47,66746,197  Property and casualty insurance premiums8,9478,749  Net investment and interest income13,05315,901  Other revenue28,67922,106    Consolidated revenue$741,317$703,181 Listed below are revenues and earnings from operations at each of our operating segments for the second quarter of fiscal 2013 and 2012. Quarter Ended September 30,20122011(Unaudited)(In thousands)Moving and self-storage Revenues$675,569$639,618 Earnings from operations before equity in earnings of subsidiaries187,827176,636Property and casualty insurance Revenues11,21311,673 Earnings from operations2,3422,197Life insurance Revenues55,42453,192 Earnings from operations4,2225,796Eliminations Revenues(889)(1,302) Earnings from operations before equity in earnings of subsidiaries(69)(196)Consolidated results Revenues741,317703,181 Earnings from operations194,322184,433 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 follows: Quarter Ended September 30,20122011(Unaudited)(In thousands, except occupancy rate)Room count as of September 30435417Square footage as of September 3038,81837,064Average number of rooms occupied359337Average occupancy rate based on room count83.3%81.0%Average square footage occupied32,60330,508 Listed below on a consolidated basis are revenues for our major product lines for the first six months of fiscal 2013 and 2012.Six Months Ended September 30,20122011(Unaudited)      (In thousands)Revenue: Self-moving equipment rentals$1,005,355$958,174 Self-storage revenues72,71465,836 Self-moving and self-storage products and services                                           128,908124,146 Property management fees9,7629,561 Life insurance premiums94,09397,196 Property and casualty insurance premiums16,19015,647 Net investment and interest income25,31033,164 Other revenue54,40142,422  Consolidated revenue$1,406,733$1,346,146 Listed below are revenues and earnings from operations at each of our operating segments for the first six months of fiscal 2013 and 2012.Six Months Ended September 30,20122011(Unaudited)(In thousands)Moving and self-storage Revenues$1,278,418$1,214,617 Earnings from operations before equity in earnings of subsidiaries334,786321,306Property and casualty insurance Revenues20,65620,805 Earnings from operations4,9294,096Life insurance Revenues109,306113,191 Earnings from operations5,6267,831Eliminations Revenues(1,647)(2,467) Earnings from operations before equity in earnings of subsidiaries(140)(437)Consolidated results Revenues1,406,7331,346,146 Earnings from operations345,201332,796 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 follows: Six Months Ended September 30,20122011(Unaudited)(In thousands, except occupancy rate)Room count as of September 30435417Square footage as of September 3038,81837,064Average number of rooms occupied350330Average occupancy rate based on room count81.6%79.7%Average square footage occupied31,74529,911   AMERCO AND CONSOLIDATED ENTITIESCONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2012March 31, 2012(Unaudited)ASSETS(In thousands)  Cash and cash equivalents$645,821$357,180  Reinsurance recoverables and trade receivables, net264,563297,974  Inventories, net58,65958,735  Prepaid expenses41,44441,858  Investments, fixed maturities and marketable equities904,446766,792  Investments, other293,585258,551  Deferred policy acquisition costs, net79,86863,914  Other assets103,498120,525  Related party assets173,505316,1572,565,3892,281,686  Property, plant and equipment, at cost:    Land309,654281,140    Buildings and improvements1,130,8521,087,119    Furniture and equipment310,516308,120    Rental trailers and other rental equipment293,735255,010    Rental trucks2,008,6021,856,4334,053,3593,787,822  Less: Accumulated depreciation(1,481,784)(1,415,457)    Total property, plant and equipment2,571,5752,372,365  Total assets$5,136,964$4,654,051LIABILITIES AND STOCKHOLDERS' EQUITYLiabilities:  Accounts payable and accrued expenses$372,756$335,326  Notes, loans and leases payable1,556,8911,486,211  Policy benefits and losses, claims and loss expenses payable1,128,9291,145,943  Liabilities from investment contracts395,620240,961  Other policyholders' funds and liabilities11,4037,273  Deferred income30,88631,525  Deferred income taxes404,558370,992Total liabilities3,901,0433,618,231Stockholders' equity:  Common stock 10,49710,497  Additional paid-in capital435,376433,743  Accumulated other comprehensive loss(35,552)(45,436)  Retained earnings1,505,3321,317,064  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(2,082)(2,398)Total stockholders' equity1,235,9211,035,820Total liabilities and stockholders' equity$5,136,964$4,654,051   AMERCO AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Quarter Ended September 30,20122011(Unaudited)(In thousands, except share and per share amounts)Revenues: Self-moving equipment rentals$538,361$511,626 Self-storage revenues37,97834,008 Self-moving and self-storage products and service sales61,73059,768 Property management fees4,9024,826 Life insurance premiums47,66746,197 Property and casualty insurance premiums8,9478,749 Net investment and interest income13,05315,901 Other revenue28,67922,106   Total revenues741,317703,181Costs and expenses: Operating expenses310,214294,340 Commission expenses68,56464,049 Cost of sales30,91232,446 Benefits and losses45,67244,462 Amortization of deferred policy acquisition costs3,0882,675 Lease expense29,59132,712 Depreciation, net of (gains) on disposals of (($5,532) and  ($7,917),respectively)58,95448,064    Total costs and expenses546,995518,748Earnings from operations194,322184,433  Interest expense(22,113)(22,963)Pretax earnings172,209161,470  Income tax expense(62,789)(60,459)Net earnings109,420101,011   Less: Preferred stock dividends-164Earnings available to common shareholders$109,420$101,175Basic and diluted earnings per common share$5.61$5.20Weighted average common shares outstanding: Basic and diluted19,512,55019,470,948 AMERCO AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Six Months Ended September 30,20122011(Unaudited)(In thousands, except share and per share amounts)Revenues: Self-moving equipment rentals$1,005,355$958,174 Self-storage revenues72,71465,836 Self-moving and self-storage products and service sales128,908124,146 Property management fees9,7629,561 Life insurance premiums94,09397,196 Property and casualty insurance premiums16,19015,647 Net investment and interest income25,31033,164 Other revenue54,40142,422   Total revenues1,406,7331,346,146Costs and expenses: Operating expenses593,607566,315 Commission expenses129,671121,001 Cost of sales63,13965,224 Benefits and losses91,75094,392 Amortization of deferred policy acquisition costs5,8997,050 Lease expense62,38766,946 Depreciation, net of (gains) on disposals of (($13,048) and ($17,627), respectively)115,07992,422    Total costs and expenses1,061,5321,013,350Earnings from operations345,201332,796  Interest expense(45,604)(45,596)Pretax earnings299,597287,200  Income tax expense(109,608)(107,966)Net earnings189,989179,234   Less: Excess of redemption value over carrying value of preferred shares redeemed-(5,908)   Less: Preferred stock dividends-(2,913)Earnings available to common shareholders$189,989$170,413Basic and diluted earnings per common share$9.74$8.75 Weighted average common shares outstanding: Basic and diluted 19,507,45619,465,530 Non-GAAP Financial MeasureImpact of Redemption of Preferred Stock and Dividend Payment for Preferred Stock on Earnings Per Share for the Six Months Ended September 30, 2011:    Excess of redemption value over carrying value of preferred shares redeemed (In thousands)$5,908    Weighted average common shares outstanding: Basic and diluted19,465,530    Earnings per share impact$0.30    Preferred stock dividends (In thousands)$2,913    Weighted average common shares outstanding: Basic and diluted19,465,530    Earnings per share impact$0.15 SOURCE AMERCOFor further information: Jennifer Flachman, Director of Investor Relations, AMERCO, +1-602-263-6601, Flachman@amerco.com