RENO, Nev., Feb. 4, 2009 (GLOBE NEWSWIRE) -- AMERCO (Nasdaq:UHAL), parent of U-Haul International, Inc., North America's largest "do-it-yourself" moving and storage operator, today reported a net loss applicable to common shareholders for its third quarter ending December 31, 2008, of $28.2 million, or $1.46 per share, compared with a net loss of $13.6 million, or $0.69 per share, for the same period last year.
For the nine-month period ending December 31, 2008, net earnings available to common shareholders were $39 million, or $2.01 per share, compared with net earnings of $72.1 million, or $3.64 per share for the same period last year.
"Our results for the quarter were challenged by uncertain effects of the economy," stated Joe Shoen, chairman of AMERCO. "On a comparative basis within our industry we believe we are holding our own and our fleet is in the best shape I have seen it in recent memory," concluded Shoen.
Highlights of Third-Quarter 2009 Results
* Self-moving equipment rental revenues decreased $15.3 million for the third quarter of fiscal 2009 compared with the same period last year. Transactions decreased during the quarter due in part to poor weather. The shift in currency exchange rates between the U.S. dollar and the Canadian dollar for the third quarter of fiscal 2009 compared with the same period last year also contributed to the negative revenue variance. * Self-storage revenues for the AMERCO Moving and Storage segment decreased 2.0 percent for the third 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. While not affecting the third quarter results for either year, included as an offset to total depreciation for the first nine months of fiscal 2008 were $10.6 million of gains on the sale of real estate compared with $0.5 million of gains during the first nine months of fiscal 2009. * Net losses on the disposal of equipment increased $2.1 million for the third quarter of fiscal 2009 compared with the same period last year. Excluding disposal gains and losses, total depreciation increased $6.3 million for the third quarter of 2009 primarily due to increased equipment purchases. Additionally, lease expense increased $4.8 million during the same period. * Operating cash flows for the Moving and Storage segment for the third quarter of fiscal 2009 were $11.5 million compared with $26.4 million for the same period last year. * At December 31, 2008, cash, cash equivalents and available credit in the Moving and Storage segment were $315.2 million.
AMERCO will hold its investor call for the third quarter of fiscal 2009 on Thursday, February 5, 2009, 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 nearly 395,000 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 December 31, 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 third quarter of fiscal 2009 and 2008.
Quarter Ended
December 31,
------------------
2008 2007 (a)
-------- --------
(Unaudited)
(In thousands)
Revenues
Self-moving equipment rentals $311,657 $326,937
Self-storage revenues 27,397 29,630
Self-moving & self-storage products and service
sales 38,663 43,211
Property management fees 6,059 6,925
Life insurance premiums 27,509 27,757
Property & casualty insurance premiums 8,029 7,738
Net investment & interest income 14,913 16,008
Other revenue 8,357 7,254
-------- --------
Consolidated revenues $442,584 $465,460
(a) The third quarter of fiscal 2008 includes SAC Holding II
self-storage revenues of $1.7 million, self-moving and self-storage
products and service sales of $1.1 million and other revenue of
$0.1 million.
Listed below are revenues and earnings (loss) from operations at each of our operating segments for the third quarter of fiscal 2009 and 2008.
Quarter Ended
December 31,
------------------
2008 2007
-------- --------
(Unaudited)
(In thousands)
Moving & storage
Revenues $399,851 $419,443
Earnings (loss) from operations (16,505) 5,435
Property and casualty insurance
Revenues 10,317 10,892
Earnings from operations 2,609 2,266
Life insurance
Revenues 33,342 33,843
Earnings from operations 3,888 5,047
SAC Holding II
Revenues -- 3,551
Earnings from operations -- 851
Eliminations
Revenues (926) (2,269)
Earnings from operations (3,993) (5,276)
Consolidated results
Revenues 442,584 465,460
Earnings (loss) from operations (14,001) 8,323
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 third quarter of fiscal 2009 and 2008 is as follows:
Quarter Ended
December 31,
----------------------
2008 2007
---------- ----------
(Unaudited)
(In thousands, except
occupancy rate)
Room count as of December 31 395 389
Square footage as of December 31 34,763 34,223
Average number of rooms occupied 315 324
Average occupancy rate based on room count 80.1% 83.6%
Average square footage occupied 28,455 29,073
Listed below on a consolidated basis are revenues for our major product lines for the first nine months of fiscal 2009 and 2008.
Nine Months Ended
December 31,
----------------------
2008 2007 (a)
---------- ----------
(Unaudited)
(In thousands)
Revenues
Self-moving equipment rentals $1,140,930 $1,155,240
Self-storage revenues 82,849 94,754
Self-moving & self-storage products and
service sales 159,515 174,420
Property management fees 15,496 14,865
Life insurance premiums 81,525 84,881
Property & casualty insurance premiums 21,512 20,986
Net investment & interest income 44,492 46,695
Other revenue 30,554 24,236
---------- ----------
Consolidated revenues $1,576,873 $1,616,077
(a) The first nine months of fiscal 2008 includes SAC Holding II
self-storage revenues of $11.5 million, self-moving and self-storage
products and service sales of $10 million and other revenue of
$0.3 million.
Listed below are revenues and earnings from operations at each of our operating segments for the first nine months of fiscal 2009 and 2008.
Nine Months Ended
December 31,
----------------------
2008 2007
---------- ----------
(Unaudited)
(In thousands)
Moving & storage
Revenues $1,449,370 $1,467,608
Earnings from operations 146,031 198,906
Property and casualty insurance
Revenues 28,892 30,301
Earnings from operations 7,009 8,304
Life insurance
Revenues 100,921 104,486
Earnings from operations 13,391 10,929
SAC Holding II
Revenues -- 28,102
Earnings from operations -- 7,926
Eliminations
Revenues (2,310) (14,420)
Earnings from operations (13,248) (16,658)
Consolidated results
Revenues 1,576,873 1,616,077
Earnings from operations 153,183 209,407
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 nine months of fiscal 2009 and 2008 is as follows:
Nine Months Ended
December 31,
----------------------
2008 2007
---------- ----------
(Unaudited)
(In thousands, except
occupancy rate)
Room count as of December 31 395 389
Square footage as of December 31 34,763 34,223
Average number of rooms occupied 320 329
Average occupancy rate based on room count 81.9% 85.3%
Average square footage occupied 28,862 29,430
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Dec 31, March 31,
2008 2008
------------ ------------
(Unaudited)
Assets (In thousands)
Cash and cash equivalents $ 311,517 $ 206,622
Reinsurance recoverables and trade
receivables, net 208,193 201,116
Notes and mortgage receivables, net 3,133 2,088
Inventories, net 75,434 65,349
Prepaid expenses 49,435 56,159
Investments, fixed maturities and
marketable equities 538,323 633,784
Investments, other 200,126 185,591
Deferred policy acquisition costs, net 48,047 35,578
Other assets 135,134 131,138
Related party assets 304,624 303,886
------------ ------------
1,873,966 1,821,311
------------ ------------
Property, plant and equipment, at cost:
Land 207,148 208,164
Buildings and improvements 914,585 859,882
Furniture and equipment 326,422 309,960
Rental trailers and other rental
equipment 211,155 205,572
Rental trucks 1,683,369 1,734,425
------------ ------------
3,342,679 3,318,003
Less: Accumulated depreciation (1,320,285) (1,306,827)
------------ ------------
Total property, plant and equipment 2,022,394 2,011,176
------------ ------------
Total assets $ 3,896,360 $ 3,832,487
============ ============
Liabilities & stockholders' equity
Liabilities:
Accounts payable & accrued expenses $ 325,059 $ 292,526
AMERCO's notes, loans and leases payable 1,560,557 1,504,677
Policy benefits & losses, claims & loss
expenses payable 783,419 789,374
Liabilities from investment contracts 313,792 339,198
Other policyholders' funds & liabilities 7,869 10,467
Deferred income 22,268 11,781
Deferred income taxes 129,772 126,033
------------ ------------
Total liabilities 3,142,736 3,074,056
------------ ------------
Stockholders' equity:
Common stock 10,497 10,497
Additional paid-in capital 420,423 419,370
Accumulated other comprehensive loss (100,102) (55,279)
Retained earnings 954,390 915,415
Cost of common shares in treasury, net (525,640) (524,677)
Unearned employee stock ownership plan
shares (5,944) (6,895)
------------ ------------
Total stockholders' equity 753,624 758,431
------------ ------------
Total liabilities & stockholders' equity $ 3,896,360 $ 3,832,487
============ ============
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter Ended December 31,
2008 2007
------------ ------------
(Unaudited)
(In thousands, except share
and per share amounts)
Revenues:
Self-moving equipment rentals $ 311,657 $ 326,937
Self-storage revenues 27,397 29,630
Self-moving and self-storage products and
service sales 38,663 43,211
Property management fees 6,059 6,925
Life insurance premiums 27,509 27,757
Property and casualty insurance premiums 8,029 7,738
Net investment and interest income 14,913 16,008
Other revenue 8,357 7,254
------------ ------------
Total revenues 442,584 465,460
------------ ------------
Costs and expenses:
Operating expenses 259,242 268,974
Commission expenses 36,664 38,563
Cost of sales 23,229 26,677
Benefits and losses 27,313 25,290
Amortization of deferred policy
acquisition costs 2,743 2,687
Lease expense 38,719 33,931
Depreciation, net of (gains) losses on
disposals 68,675 61,015
------------ ------------
Total costs and expenses 456,585 457,137
------------ ------------
Earnings (loss) from operations (14,001) 8,323
Interest expense (26,000) (25,191)
------------ ------------
Pretax loss (40,001) (16,868)
Income tax benefit 15,049 6,474
------------ ------------
Net loss (24,952) (10,394)
Less: Preferred stock dividends (3,241) (3,241)
------------ ------------
Loss applicable to common shareholders $ (28,193) $ (13,635)
============ ============
Basic and diluted loss applicable per
common share $ (1.46) $ (0.69)
============ ============
Weighted average common shares outstanding:
Basic and diluted 19,347,660 19,746,237
============ ============
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Nine Months Ended
December 31,
2008 2007
------------ ------------
(Unaudited)
(In thousands, except share
and per share amounts)
Revenues:
Self-moving equipment rentals $ 1,140,930 $ 1,155,240
Self-storage revenues 82,849 94,754
Self-moving and self-storage products and
service sales 159,515 174,420
Property management fees 15,496 14,865
Life insurance premiums 81,525 84,881
Property and casualty insurance premiums 21,512 20,986
Net investment and interest income 44,492 46,695
Other revenue 30,554 24,236
------------ ------------
Total revenues 1,576,873 1,616,077
------------ ------------
Costs and expenses:
Operating expenses 792,801 827,032
Commission expenses 138,711 132,348
Cost of sales 90,856 95,268
Benefits and losses 82,303 80,159
Amortization of deferred policy
acquisition costs 7,169 9,870
Lease expense 111,803 100,967
Depreciation, net of (gains) losses on
disposals 200,047 161,026
------------ ------------
Total costs and expenses 1,423,690 1,406,670
------------ ------------
Earnings from operations 153,183 209,407
Interest expense (74,774) (76,356)
------------ ------------
Pretax earnings 78,409 133,051
Income tax expense (29,711) (51,219)
------------ ------------
Net earnings 48,698 81,832
Less: Preferred stock dividends (9,723) (9,723)
------------ ------------
Earnings available to common shareholders $ 38,975 $ 72,109
============ ============
Basic and diluted earnings per common
share $ 2.01 $ 3.64
============ ============
Weighted average common shares outstanding:
Basic and diluted 19,347,302 19,820,107
============ ============
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended
December 31,
2008 2007
---------- ----------
(Unaudited)
(In thousands)
Cash flow from operating activities:
Net earnings $ 48,698 $ 81,832
Adjustments to reconcile net earnings to cash
provided by operations:
Depreciation 185,027 170,184
Amortization of deferred policy acquisition
costs 7,169 9,870
Change in allowance for losses on trade
receivables (138) 75
Change in allowance for losses on mortgage
notes (308) (29)
Change in allowance for inventory reserves 1,488 2,371
Net (gain) loss on sale of real and personal
property 15,020 (9,158)
Net loss on sale of investments 153 375
Deferred income taxes 22,108 17,332
Net change in other operating assets and
liabilities:
Reinsurance recoverables and trade
receivables (6,947) 4,816
Inventories (11,573) 1,586
Prepaid expenses 6,726 12,196
Capitalization of deferred policy acquisition
costs (7,509) (3,894)
Other assets (3,684) 1,040
Related party assets 3,786 35,003
Accounts payable and accrued expenses (6,924) (2,206)
Policy benefits and losses, claims and loss
expenses payable (3,770) (3,038)
Other policyholders' funds and liabilities (2,599) (88)
Deferred income 10,675 (6,246)
Related party liabilities (4,493) (9,131)
---------- ----------
Net cash provided by operating activities 252,905 302,890
---------- ----------
Cash flows from investing activities
Purchases of:
Property, plant and equipment (316,970) (440,328)
Short term investments (253,786) (171,918)
Fixed maturities investments (126,375) (56,505)
Equity securities -- (27)
Preferred stock (2,000) --
Real estate (412) (3,404)
Mortgage loans (12,146) (12,522)
Proceeds from sale of:
Property, plant and equipment 106,435 134,099
Short term investments 244,399 192,974
Fixed maturities investments 195,451 77,773
Equity securities 28 46
Preferred stock -- 5,625
Real estate 704 784
Mortgage loans 5,165 6,394
Payments from notes and mortgage receivables 816 89
---------- ----------
Net cash used by investing activities (158,691) (266,920)
---------- ----------
Cash flows from financing activities:
Borrowings from credit facilities 165,330 487,626
Principal repayments on credit facilities (117,207) (244,108)
Debt issuance costs (360) (11,876)
Capital lease payments (561) --
Leveraged Employee Stock Ownership
Plan-repayments from loan 951 923
Treasury stock repurchases (963) (33,966)
Securitization deposits -- (60,764)
Preferred stock dividends paid (9,723) (9,723)
Investment contract deposits 14,460 13,864
Investment contract withdrawals (39,867) (49,806)
---------- ----------
Net cash provided by financing activities 12,060 92,170
---------- ----------
Effects of exchange rate on cash (1,379) 311
---------- ----------
Increase in cash equivalents 104,895 128,451
Cash and cash equivalents at the beginning of
period 206,622 75,272
---------- ----------
Cash and cash equivalents at the end of
period $ 311,517 $ 203,723
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