AMERCO Reports Second Quarter Fiscal 2009 Financial Results


RENO, Nev., Nov. 5, 2008 (GLOBE NEWSWIRE) -- AMERCO (Nasdaq:UHAL), 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 second quarter ending September 30, 2008, of $40.6 million, or $2.10 per share, compared with net earnings of $47.2 million, or $2.39 per share, for the same period last year.

For the six-month period ending September 30, 2008, net earnings available to common shareholders were $67.2 million, or $3.47 per share, compared with net earnings of $85.7 million, or $4.32 per share for the same period last year.

"The consumer truck rental market remains tight, however, improvements in utilization of our fleet led to revenue increases during the quarter," stated Joe Shoen, chairman of AMERCO. "Self-storage occupancy is below my expectation. This is a tight market and consumers have choices, we intend to remain their best choice," concluded Shoen.

Highlights of Second-Quarter 2009 Results



 * Self-moving equipment rental revenues increased $3.5 million for
   the second quarter of fiscal 2009 compared with the second quarter
   of fiscal 2008. The Company also saw increases in total moving
   transactions as well as utilization with a decreased rental truck
   fleet compared with the same period last year.

 * Self-storage revenues for the AMERCO Moving and Storage segment
   decreased 1.3 percent for the second quarter of fiscal 2009 compared
   with the same period last year.

 * The Company nets gains and losses from the disposal of property and
   equipment against reported depreciation. Included as an offset to
   total depreciation for the first six months of fiscal 2008 were
   $10.6 million of gains on the sale of real estate. There were no
   similar gains during the first six months of fiscal 2009.

 * Net losses on the disposal of equipment increased $6.4 million for
   the second quarter of fiscal 2009 compared with the same period
   last year.  Excluding disposal gains and losses, total depreciation
   increased $4.2 million for the second quarter of 2009 primarily due
   to equipment. Additionally, lease expense increased $4.1 million
   during the same period.

 * At September 30, 2008 cash, cash equivalents and available credit
   in the Moving and Storage segment was $413.5 million. Over the next
   four quarters, the Company has maturities and required principal
   payments of $126.8 million on loans that were in place as of
   September 30, 2008.

AMERCO will hold its investor call for the second quarter of fiscal 2009 on Thursday, November 6, 2008, 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.

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 undisputed choice for the do-it-yourself mover, with a network of more than 15,650 locations in all 50 United States and 10 Canadian provinces. U-Haul customers' patronage has enabled the Company to maintain a fleet size of 96,000 trucks, 75,000 trailers and 35,000 towing devices. U-Haul offers more than 391,000 rooms and more than 34 million square feet of storage space at more than 1,075 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.

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 September 30, 2008, 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 second quarter of fiscal 2009 and 2008.



                                          Quarter Ended September 30,
                                          ---------------------------
                                              2008           2007 (a)
                                          -----------     -----------
                                                  (Unaudited)
                                                (In thousands)
 Revenues
   Self-moving equipment rentals          $   439,244     $   435,786
   Self-storage revenues                       27,901          33,088
   Self-moving & self-storage                               
    products and service sales                 58,296          62,554
   Property management fees                     4,721           3,993
   Life insurance premiums                     27,099          27,937
   Property & casualty insurance premiums       7,359           7,332
   Net investment & interest income            14,983          16,373
   Other revenue                               11,892           9,279
                                          -----------     -----------
     Consolidated revenues                $   591,495     $   596,342

 (a) The second quarter of fiscal 2008 include SAC Holding II
 self-storage revenues of $4.8 million, self-moving and self-storage
 products and service sales of $4.3 million and other revenues of $0.1
 million.

Listed below are revenues and earnings from operations at each of our operating segments for the second quarter of fiscal 2009 and 2008.



                                          Quarter Ended September 30,
                                          ---------------------------
                                              2008            2007
                                          -----------     -----------
                                                   (Unaudited)
                                                 (In thousands)
 Moving & storage
   Revenues                               $   547,978     $   545,568
   Earnings from operations                    92,850         104,979
 Property and casualty insurance
   Revenues                                     9,685          10,393
   Earnings from operations                     2,195           3,722
 Life insurance
   Revenues                                    34,516          34,460
   Earnings from operations                     5,341           3,565
 SAC Holding II
   Revenues                                        --          12,162
   Earnings from operations                        --           3,320
 Eliminations
   Revenues                                      (684)         (6,241)
   Earnings from operations                    (4,864)         (6,506)
 Consolidated results
   Revenues                                   591,495         596,342
   Earnings from operations                    95,522         109,080

The Company owns and manages self-storage facilities. Self-storage revenues reported in the consolidated financial statements for Moving and Storage 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 (except for SAC Holding II). Self-storage data for both our owned and managed locations for the second quarter of fiscal 2009 and 2008 is as follows:



                                          Quarter Ended September 30,
                                          ---------------------------
                                              2008            2007
                                          -----------     -----------
                                                  (Unaudited)
                                             (In thousands, except
                                                occupancy rate)
 Room count as of September 30                    391             386
 Square footage as of September 30             34,515          34,045
 Average number of rooms occupied                 326             335
 Average occupancy rate based on room count     83.4%           86.8%
 Average square footage occupied               29,354          29,912

Listed below on a consolidated basis are revenues for our major product lines for the first six months of fiscal 2009 and 2008.



                                                Six Months Ended
                                                  September 30,
                                          ---------------------------
                                             2008            2007 (a)
                                          -----------     -----------
                                                   (Unaudited)
                                                 (In thousands)
 Revenues
   Self-moving equipment rentals          $   829,273     $   828,303
   Self-storage revenues                       55,452          65,124
   Self-moving & self-storage products and
    service sales                             120,852         131,209
   Property management fees                     9,437           7,940
   Life insurance premiums                     54,016          57,124
   Property & casualty insurance premiums      13,483          13,248
   Net investment & interest income            29,579          30,687
   Other revenue                               22,197          16,982
                                          -----------     -----------
    Consolidated revenues                 $ 1,134,289     $ 1,150,617

    (a) The first six months of fiscal 2008 include SAC Holding II
        self-storage revenues of $9.8 million, self-moving and self-
        storage products and service sales of $9.0 million and other
        revenues of $0.2 million.

Listed below are revenues and earnings from operations at each of our operating segments for the first six months of fiscal 2009 and 2008.



                                                Six Months Ended
                                                  September 30,
                                          ---------------------------
                                              2008            2007
                                          -----------     -----------
                                                   (Unaudited)
                                                 (In thousands)
 Moving & storage
    Revenues                              $ 1,049,519     $ 1,048,165
    Earnings from operations                  162,536         193,471
 Property and casualty insurance
    Revenues                                   18,575          19,409
    Earnings from operations                    4,400           6,038
 Life insurance
    Revenues                                   67,579          70,643
    Earnings from operations                    9,503           5,882
 SAC Holding II
    Revenues                                       --          24,551
    Earnings from operations                       --           7,075
 Eliminations
    Revenues                                   (1,384)        (12,151)
    Earnings from operations                   (9,255)        (11,382)
 Consolidated results
    Revenues                                1,134,289       1,150,617
    Earnings from operations                  167,184         201,084

The Company owns and manages self-storage facilities. Self-storage revenues reported in the consolidated financial statements for Moving and Storage 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 (except for SAC Holding II). Self-storage data for both our owned and managed locations for the first six months of fiscal 2009 and 2008 is as follows:



                                                Six Months Ended
                                                  September 30,
                                          ---------------------------
                                              2008            2007
                                          -----------     -----------
                                                  (Unaudited)
                                             (In thousands, except
                                                 occupancy rate)
 Room count as of September 30                    391             386
 Square footage as of September 30             34,515          34,045
 Average number of rooms occupied                 323             331
 Average occupancy rate based on room count      82.9%           86.1%
 Average square footage occupied               29,065          29,608


                   AMERCO AND CONSOLIDATED ENTITIES
                 CONDENSED CONSOLIDATED BALANCE SHEETS

                                            Sept 30,        March 31,
                                              2008            2008
                                          -----------     -----------
                                          (Unaudited)
 Assets                                          (In thousands)
   Cash and cash equivalents              $   363,130     $   206,622
   Reinsurance recoverables and trade
    receivables, net                          195,315         201,116
   Notes and mortgage receivables, net          2,452           2,088
   Inventories, net                            77,348          65,349
   Prepaid expenses                            57,923          56,159
   Investments, fixed maturities and
    marketable equities                       567,132         633,784
   Investments, other                         225,325         185,591
   Deferred policy acquisition costs, net      40,143          35,578
   Other assets                               122,652         131,138
   Related party assets                       292,259         303,886
                                          -----------     -----------
                                            1,943,679       1,821,311
                                          -----------     -----------

   Property, plant and equipment, at cost:
     Land                                     210,427         208,164
     Buildings and improvements               897,714         859,882
     Furniture and equipment                  319,832         309,960
     Rental trailers and other rental
      equipment                               207,313         205,572
     Rental trucks                          1,707,517       1,734,425
                                          -----------     -----------
                                            3,342,803       3,318,003
   Less: Accumulated depreciation          (1,308,986)     (1,306,827)
                                          -----------     -----------
     Total property, plant and equipment    2,033,817       2,011,176
                                          -----------     -----------
   Total assets                           $ 3,977,496     $ 3,832,487
                                          ===========     ===========


 Liabilities & stockholders' equity
 Liabilities:
   Accounts payable & accrued expenses    $   280,620     $   292,526
   AMERCO notes, loans and leases payable   1,575,012       1,504,677
   Policy benefits & losses, claims & loss
    expenses payable                          776,026         789,374
   Liabilities from investment contracts      321,839         339,198
   Other policyholders' funds &
    liabilities                                10,300          10,467
   Deferred income                             12,266          11,781
   Deferred income taxes                      169,621         126,033
                                          -----------     -----------
 Total liabilities                          3,145,684       3,074,056
                                          -----------     -----------
 Stockholders' equity:
   Common stock                                10,497          10,497
   Additional paid-in capital                 420,151         419,370
   Accumulated other comprehensive loss       (49,819)        (55,279)
   Retained earnings                          982,583         915,415
   Cost of common shares in treasury, net    (525,336)       (524,677)
   Unearned employee stock ownership plan
    shares                                     (6,264)         (6,895)
                                          -----------     -----------
 Total stockholders' equity                   831,812         758,431
                                          -----------     -----------
 Total liabilities & stockholders' equity $ 3,977,496     $ 3,832,487
                                          ===========     ===========


                   AMERCO AND CONSOLIDATED ENTITIES
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                          Quarter Ended September 30,
                                              2008            2007
                                          -----------     -----------
                                                  (Unaudited)
                                          (In thousands, except share
                                             and per share amounts)
 Revenues:
   Self-moving equipment rentals          $   439,244     $   435,786
   Self-storage revenues                       27,901          33,088
   Self-moving and self-storage products
    and service sales                          58,296          62,554
   Property management fees                     4,721           3,993
   Life insurance premiums                     27,099          27,937
   Property and casualty insurance
    premiums                                    7,359           7,332
   Net investment and interest income          14,983          16,373
   Other revenue                               11,892           9,279
                                          -----------     -----------
      Total revenues                          591,495         596,342
                                          -----------     -----------

 Costs and expenses:
   Operating expenses                         274,288         284,857
   Commission expenses                         54,082          49,481
   Cost of sales                               32,642          33,943
   Benefits and losses                         27,673          25,592
   Amortization of deferred policy
    acquisition costs                           2,338           3,266
   Lease expense                               38,516          34,377
   Depreciation, net of (gains) losses on
    disposals                                  66,434          55,746
                                          -----------     -----------
      Total costs and expenses                495,973         487,262
                                          -----------     -----------

 Earnings from operations                      95,522         109,080
   Interest expense                           (24,930)        (27,449)
                                          -----------     -----------
 Pretax earnings                               70,592          81,631
   Income tax expense                         (26,768)        (31,157)
                                          -----------     -----------
 Net earnings                                  43,824          50,474
   Less: Preferred stock dividends             (3,241)         (3,241)
                                          -----------     -----------
 Earnings available to common
  shareholders                            $    40,583     $    47,233
                                          ===========     ===========
 Basic and diluted earnings per common
  share                                   $      2.10     $      2.39
                                          ===========     ===========
 Weighted average common shares
  outstanding:
   Basic and diluted                       19,351,322      19,733,755
                                          ===========     ===========


                   AMERCO AND CONSOLIDATED ENTITIES
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                                Six Months Ended
                                                  September 30,
                                              2008            2007
                                          -----------     -----------
                                                  (Unaudited)
                                          (In thousands, except share
                                             and per share amounts)
 Revenues:
   Self-moving equipment rentals          $   829,273     $   828,303
   Self-storage revenues                       55,452          65,124
   Self-moving and self-storage products
    and service sales                         120,852         131,209
   Property management fees                     9,437           7,940
   Life insurance premiums                     54,016          57,124
   Property and casualty insurance
    premiums                                   13,483          13,248
   Net investment and interest income          29,579          30,687
   Other revenue                               22,197          16,982
                                          -----------     -----------
     Total revenues                         1,134,289       1,150,617
                                          -----------     -----------

Costs and expenses:
   Operating expenses                         533,559         558,058
   Commission expenses                        102,047          93,785
   Cost of sales                               67,627          68,591
   Benefits and losses                         54,990          54,869
   Amortization of deferred policy
    acquisition costs                           4,426           7,183
   Lease expense                               73,084          67,036
   Depreciation, net of (gains) losses on
    disposals                                 131,372         100,011
                                          -----------     -----------
     Total costs and expenses                 967,105         949,533
                                          -----------     -----------

 Earnings from operations                     167,184         201,084
   Interest expense                           (48,774)        (51,165)
                                          -----------     -----------
 Pretax earnings                              118,410         149,919
   Income tax expense                         (44,760)        (57,693)
                                          -----------     -----------
 Net earnings                                  73,650          92,226
   Less: Preferred stock dividends             (6,482)         (6,482)
                                          -----------     -----------
 Earnings available to common
  shareholders                            $    67,168     $    85,744
                                          ===========     ===========
 Basic and diluted earnings per common
  share                                   $      3.47     $      4.32
                                          ===========     ===========
 Weighted average common shares
  outstanding:
   Basic and diluted                       19,346,943      19,850,874
                                          ===========     ===========


                   AMERCO AND CONSOLIDATED ENTITIES
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                Six Months Ended
                                                  September 30,
                                              2008            2007
                                          -----------     -----------
                                                  (Unaudited)
                                                 (In thousands)
 Cash flow from operating activities:
   Net earnings                           $    73,650     $    92,226
   Adjustments to reconcile net earnings
    to cash provided by operations:
   Depreciation                               121,920         113,194
   Amortization of deferred policy
    acquisition costs                           4,426           7,183
   Change in allowance for losses on trade
    receivables                                   (29)             87
   Change in allowance for losses on
    mortgage notes                                (59)            (19)
   Change in allowance for inventory
    reserves                                    3,603           1,281
   Net (gain) loss on sale of real and
    personal property                           9,452         (13,183)
   Net loss on sale of investments                  1             149
   Deferred income taxes                       48,993          33,966
   Net change in other operating assets
    and liabilities:
     Reinsurance recoverables and trade
      receivables                               5,831          (5,154)
     Inventories                              (15,602)          3,181
     Prepaid expenses                           8,872           4,120
     Capitalization of deferred policy
      acquisition costs                        (4,887)         (2,539)
     Other assets                               8,835         (10,373)
     Related party assets                      11,249          41,881
     Accounts payable and accrued expenses    (16,199)         13,497
     Policy benefits and losses, claims
      and loss expenses payable               (12,817)          5,066
     Other policyholders' funds and
      liabilities                                (746)            211
     Deferred income                              539          (1,673)
     Related party liabilities                 (1,639)         (3,411)
                                          -----------     -----------
 Net cash provided by operating activities    245,393         279,690
                                          -----------     -----------

 Cash flows from investing activities
  Purchases of:
     Property, plant and equipment           (224,996)       (360,511)
     Short term investments                  (216,353)       (128,627)
     Fixed maturities investments            (115,124)        (45,622)
     Preferred stock                           (2,001)             --
     Real estate                                 (350)         (3,441)
     Mortgage loans                            (9,311)         (4,895)
   Proceeds from sale of:
     Property, plant and equipment             80,805         100,660
     Short term investments                   182,399         144,814
     Fixed maturities investments             173,670          61,206
     Equity securities                             27              46
     Preferred stock                               --           2,625
     Real estate                                  704             153
     Mortgage loans                             2,822           4,043
     Payments from notes and mortgage
      receivables                                  63             367
                                          -----------     -----------
 Net cash used by investing activities       (127,645)       (229,182)
                                          -----------     -----------

 Cash flows from financing activities:
     Borrowings from credit facilities        135,330         447,620
     Principal repayments on credit
      facilities                              (74,320)       (179,043)
     Debt issuance costs                         (360)         (9,850)
     Capital lease payments                      (348)             --
     Leveraged Employee Stock Ownership
      Plan-repayments from loan                   631             608
     Treasury stock repurchases                  (659)        (33,966)
     Securitization deposits                       --        (116,176)
     Preferred stock dividends paid            (6,482)         (6,482)
     Net dividend from related party            2,010              --
     Investment contract deposits               9,561           8,772
     Investment contract withdrawals          (26,921)        (34,032)
                                          -----------     -----------
  Net cash provided by financing
   activities                                  38,442          77,451
                                          -----------     -----------

   Effects of exchange rate on cash               318             113
                                          -----------     -----------

 Increase in cash equivalents                 156,508         128,072
 Cash and cash equivalents at the
  beginning of period                         206,622          75,272
                                          -----------     -----------
 Cash and cash equivalents at the end of
  period                                  $   363,130     $   203,344
                                          ===========     ===========

            

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