AMERCO Reports Third Quarter Financial Results

Phoenix, Arizona, UNITED STATES


RENO, Nev., Feb. 8, 2006 (PRIMEZONE) -- AMERCO (Nasdaq:UHAL), the parent of U-Haul International, Inc., Oxford Life Insurance Company, Republic Western Insurance Company and Amerco Real Estate Company, today reported net earnings available to common shareholders for its third quarter ending December 31, 2005, of $11.9 million or $0.57 per share, compared with net earnings of $18.3 million, or $0.88 per share for the same period last year. Earnings for the quarter ended December 31, 2004, included nonrecurring, after-tax litigation settlement proceeds of $1.56 per share. Taking these after-tax litigation settlement proceeds in effect, the adjusted earnings per share for the quarter ended December 31, 2004 was a loss of $0.68 per share.

For the nine-month period ending December 31, 2005, net earnings available to common shareholders was $109.6 million or $5.26 per share, compared with net earnings of $109.3 million, or $5.25 per share for the same period last year. Included in the December 31, 2005 nine-month results is a nonrecurring after-tax charge of $1.08 per share associated with the company's first quarter refinancing. The December 31, 2004 nine-month results included nonrecurring, after-tax litigation settlement proceeds of $1.56 per share. Taking into effect the after tax proceeds and refinancing costs the adjusted earnings per share was $6.34 for the nine months ended December 31, 2005 compared with $3.69 for the nine months ended December 31, 2004.

"We are pleased with our financial and operational performance for the quarter and nine months," stated Joe Shoen, chairman of the board of AMERCO. "We have made significant progress on our established objectives and goals for economic performance, which include rotating our fleet by introducing approximately 12,000 new trucks, which replace older trucks removed from our fleet, positioning our rental fleet to achieve greater revenue and transaction growth, increasing our market presence in the storage industry through our Storage Affiliate Program, optimizing storage occupancy, eliminating losses at our property and casualty business and improve profitability at our life insurance company. We will continue to focus on these areas throughout the fourth quarter and into fiscal 2007 to enhance future operating results for our organization and our shareholders," Shoen concluded.



 Report on Business Operations

 Listed on a consolidated basis, are revenues for our major product
 lines.

                            Quarter Ended        Nine Months Ended
                               Dec. 31,               Dec. 31,
                            2005     2004         2005        2004
                          ------------------   ----------------------
                                         (Unaudited)
                                       (In thousands)
 Self-moving equipment
  rentals                 $353,409  $328,471   $1,201,374  $1,147,369
 Self-storage revenues      29,784    28,846       92,153      88,359
 Self-moving &
  self-storage products &
  service sales             47,316    42,694      176,371     161,967
 Property management fees    4,289     2,880       12,558       8,971
 Life insurance premiums    30,743    31,241       90,050      96,535
 Property & casualty
  insurance premiums         9,949     3,975       20,172      20,815
 Net investment & interest
  income                    12,807    17,109       38,873      46,160
 Other revenue               7,373     6,281       29,093      23,686
                          ------------------   ----------------------
 Consolidated revenue      495,670   461,497    1,660,644   1,593,862
                          ==================   ======================

Revenues for the Quarter Ended December 31, 2005

During the third quarter of fiscal 2006, self-moving equipment rentals increased $24.9 million, with increases in truck, trailer and support rental items. These increases were due to improved equipment utilization, pricing and product mix.

Self-storage revenues increased $0.9 million for the third quarter of fiscal 2006, compared with the third quarter of fiscal 2005. Occupancy rates increased period over period.

Sales of self-moving and self-storage products and services increased $4.6 million for the third quarter of fiscal 2006, compared with the third quarter of fiscal 2005, generally following the growth in self-moving equipment rentals. Support sales items, hitches and propane all had increases for the period.

RepWest continued to exit from non U-Haul related lines of business. However, premium revenues increased $6 million for the third quarter of fiscal 2006, compared with the third quarter of fiscal 2005. These increases were due to retrospective premiums related to U-Haul business in fiscal 2006. Additionally, fiscal 2005 included the commutation of a non U-Haul related reinsurance contract reducing premium revenues for that quarter.

Oxford's premium revenues declined $0.5 million. The ratings upgrade by A.M. Best to B+, which occurred in October 2005 was too late in the quarter to impact current results although it is expected to support the expansion of its distribution capabilities in the future.

Net investment and interest income decreased $4.3 million for the third quarter of fiscal 2006, compared with the third quarter of fiscal 2005, due primarily to declining invested asset balances at the insurance companies.

As a result of the above-mentioned items, revenues for AMERCO and its consolidated entities were $495.7 million for the third quarter of fiscal 2006, compared with $461.5 million for the third quarter of fiscal 2005.

Revenues for the Nine Months Ended December 31, 2005

During the nine months of fiscal 2006, self-moving equipment rentals increased $54 million, with increases in truck, trailer and support rental items. The increases were due to improved equipment utilization, pricing and product mix that included new trucks introduced into the fleet, which replaced older trucks.

Self-storage revenues increased $3.8 million for the nine months of fiscal 2006, compared with the nine months of fiscal 2005. Occupancy rates increased period over period along with improved pricing.

Sales of self-moving and self-storage product and services increased $14.4 million for the nine months of fiscal 2006, compared with the nine months of fiscal 2005, generally following growth in self-moving equipment rentals. Support sales items, hitches and propane all had increased for the period.

RepWest continued to exit non-U-Haul related lines of business, resulting in a $3.4 million decrease in premiums for the nine months of fiscal 2006, compared with the first nine months of fiscal 2005. Premiums related to U-Haul related business increased $2.8 million for the nine months of fiscal 2006, compared with the nine months of fiscal 2005.

Oxford's premium revenues declined $6.5 million for the nine months of fiscal 2006, compared with the nine months of fiscal 2005. The ratings upgrade by A.M. Best to B+, which occurred in October 2005 was too late in the quarter to impact current results although it is expected to support the expansion of its distribution capabilities in the future.

Net investment and interest income decreased $7.3 million for the first nine months of fiscal 2006, compared with the first nine months of fiscal 2005, due primarily to declining invested asset balances at the insurance companies.

As a result of the items mentioned above, revenues for AMERCO and its consolidated entities were $1,660.6 million for the nine months of fiscal 2006, compared with $1,593.9 million for the nine months of fiscal 2005.

Listed below are revenues and earnings from operations at each of our four operating segments.



                             Quarter Ended        Nine Months Ended
                                Dec. 31,              Dec. 31,
                            2005      2004        2005         2004
                          ------------------   -----------------------
                                         (Unaudited)
                                        (In thousands)
 Moving and storage
 Revenues                 $441,725  $407,691   $1,504,671   $1,423,971
 Earnings from operations   42,689     3,591      276,227      193,097
 Property and casualty
  insurance
 Revenues                   12,827    10,802       29,193       35,878
 Earnings (loss) from
  operations                (1,597)   (9,218)       1,727      (8,749)
 Life insurance
 Revenues                   37,064    39,442      111,407      122,494
 Earnings (loss) from
  operations                 2,620    (3,440)       9,357        2,730
 SAC Holding II
 Revenues                   10,870    10,106       35,541       33,228
 Earnings from operations    3,630     2,138       10,730        9,598
 Eliminations
 Revenues                   (6,816)   (6,544)     (20,168)     (21,709)
 Earnings from operations   (1,923)    7,220      (11,824)      (1,004)
 Consolidated results
 Revenues                  495,670   461,497    1,600,644    1,593,862
 Earnings from operations   45,419       291      286,217      195,672

Results for the Quarter Ended December 31, 2005

Total costs and expenses decreased $11 million for the third quarter of fiscal 2006, compared with the third quarter of fiscal 2005. Increases in operating costs associated with the improved business volume at moving and storage centers were offset by reductions in repair and maintenance expenses related to rotating the fleet. New trucks with lower initial maintenance costs are replacing trucks with higher maintenance costs. The third quarter of fiscal 2005 included a $6.4 million charge for litigation at Oxford, not present in fiscal 2006.

As a result of the above-mentioned changes in revenues and expenses, earnings from operations improved to $45.4 million for the third quarter of fiscal 2006, compared with $0.3 million for the third quarter of fiscal 2005.

Interest expense for the third quarter of fiscal 2006 was $17.8 million, compared with $16.9 million in the third quarter of fiscal 2005, due to an increase in the average amount borrowed. The expense related to the increase in average borrowings was partially offset by a reduction in the average borrowing rate resulting from refinancing activities in fiscal 2006.

During the third quarter of fiscal 2005, the company settled litigation against its former auditor and received a settlement (net of attorney's fees and costs) of $51.3 million before taxes. The settlement had the effect of increasing, on a nonrecurring basis, earnings and earnings per share for the quarter ended December 31, 2004, by $32.5 million, and by $1.56 per share, respectively.

Income tax expense was $12.5 million in the third quarter of fiscal 2006, compared with $13.2 million in the third quarter of fiscal 2005.

Dividends accrued on our Series A preferred stock were $3.2 million in the third quarter of both fiscal 2006 and 2005.

As a result of the above-mentioned items, net earnings available to common shareholders were $11.9 million in the third quarter of fiscal 2006, compared with $18.3 million in the third quarter of fiscal 2005.

Basic and diluted earnings per share in the third quarter of fiscal 2006 were $0.57, compared with $0.88 in the third quarter of fiscal 2005. Earnings per share adjusted for the nonrecurring litigation settlement were $0.57 in the third quarter of fiscal 2006, compared with a loss of $0.68 per share in the third quarter of fiscal 2005.

Results for the Nine Months Ended December 31, 2005

Total costs and expenses decreased $23.8 million for the nine months of fiscal 2006, compared with the nine months of fiscal 2005. Increases in operating costs associated with the improved business volume in the Moving and Storage segment were offset by reductions in repair and maintenance expenses related to rotating the fleet. Benefits and losses at the insurance companies decreased $21.5 million for the nine months of fiscal 2006, compared with the nine months of fiscal 2005, as loss ratios have improved and exposure has declined. Fiscal 2005 included a $6.4 million charge for litigation at Oxford not present in fiscal 2006.

As a result of the above-mentioned changes in revenues and expenses, earnings from operations improved to $286.2 million for the nine months of fiscal 2006, compared with $195.7 million for the nine months of fiscal 2005.

Interest expense for the first nine months of fiscal 2006 was $88.3 million compared with $54 million for the first nine months of fiscal 2005. Fiscal 2006 results included a one-time, nonrecurring charge of $35.6 million before taxes related to the early termination of existing indebtedness. The charge had the effect of decreasing, on a nonrecurring basis, net earnings and earnings per share for the nine months ended December 31, 2005 by $22.5 million and $1.08, respectively.

During the third quarter of fiscal 2005, the Company settled its litigation against its former auditor and received a settlement (net of attorney's fees and costs) of $51.3 million before taxes. The settlement had the effect of increasing, on a nonrecurring basis, net earnings and earnings per share for the nine months ended December 31, 2004, by $32.5 million, which increased prior year earnings per share of $1.56.

Income tax expense was $78.6 million in the nine months of fiscal 2006, compared with $74.0 million in the nine months of fiscal 2005.

Dividends accrued and paid on our Series A preferred stock were $9.7 million for the first nine months ended December 31, 2005 and 2004, respectively.

As a result of the above-mentioned items, net earnings available to common shareholders were $109.6 million in the nine months of fiscal 2006, compared with $109.3 million in the first nine months of fiscal 2005.

Basic and diluted earnings per share were $5.26 in the nine months of fiscal 2006, compared with $5.25 in the nine months of fiscal 2005. Adjusted basic and diluted earnings per share were $6.34 in the nine months of fiscal 2006, compared with $3.69 in the nine months of fiscal 2005.

Fiscal 2007 Outlook

There have been many developments which we believe should positively affect performance in the fourth quarter of fiscal 2006 and into fiscal 2007. We believe the momentum in our Moving and Storage operations will continue. We are investing in our rental truck fleet to further strengthen our "do-it-yourself" moving business. During the remainder of this fiscal year, we anticipate putting an additional 2,700 large and midsize rental trucks in service. In addition, production has been initiated for trailers, with an expected production of 3,500 by the end of April 2006. This investment is expected to increase the number of rentable equipment days available to meet customer demands and will reduce future spending on repair costs and equipment downtime.

At RepWest, our plans to exit non U-Haul related lines are progressing.

At Oxford, the recent ratings upgrade by A.M. Best in October 2005 to B+ should support the expansion of its distribution capabilities.

Our objectives for the remaining quarter in fiscal 2006 and the first part of 2007 are to position our rental fleet to achieve revenue and transaction growth, and continue to drive down operating costs. The above-mentioned investment in our fleet will provide a strong basis for meeting these objectives.

AMERCO Third Quarter Fiscal 2006 Investor Call Information

AMERCO will hold its investor call for the third quarter of fiscal year 2006 on Thursday, February 9, 2006, at 10 a.m., Mountain Time (12 p.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 Information

The company reports its financial results in accordance with 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 be infrequently occurring.

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. With a network of over 15,300 locations in all 50 United States and 10 Canadian provinces, U-Haul is celebrating its 60th year of serving customers. The company has the largest consumer truck rental fleet in the world, with over 93,000 trucks, 78,750 trailers and 36,100 towing devices. U-Haul has also been a leader in the storage industry since 1974, with more than 340,000 rooms, approximately 33 million square feet of storage space and more than 1,050 facilities throughout North America.

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, 2005, which is on file with the SEC.



                   AMERCO AND CONSOLIDATED ENTITIES
                 CONDENSED CONSOLIDATED BALANCE SHEETS

                                              Dec. 31,      Mar. 31,
                                               2005           2005
                                             ---------     ---------
                                            (Unaudited)
 Assets                                          (In thousands)
  Cash and cash equivalents                  $ 247,150      $ 55,955
  Reinsurance recoverables & trade
   receivables, net                            238,483       236,817
  Notes and mortgage receivables, net            1,838         1,965
  Inventories, net                              70,934        63,658
  Prepaid expenses                              22,162        19,874
  Investments, fixed maturities                669,587       635,178
  Investments, other                           233,228       345,207
  Deferred policy acquisition costs, net        48,117        52,543
  Other assets                                  99,044        85,291
  Related party assets                         265,442       252,666
                                             ---------     ---------
                                             1,895,985     1,749,154
                                             ---------     ---------
 Property, plant and equipment, at cost;
  Land                                         174,337       151,145
  Buildings and improvements                   742,699       686,225
  Furniture and equipment                      274,786       265,216
  Rental trailers and other rental
   equipment                                   202,280       199,461
  Rental trucks                              1,273,926     1,252,018
  SAC Holding II - PP&E                         79,132        77,594
                                             ---------     ---------
                                             2,747,160     2,631,659
 Less: Accumulated depreciation             (1,276,938)   (1,277,191)
                                             ---------     ---------
  Total property, plant and equipment        1,470,222     1,354,468
                                             ---------     ---------
 Total assets                                3,366,207     3,103,622
                                             =========     =========

 Liabilities & stockholders' equity
 Liabilities:
  Accounts payable & accrued expenses        $ 206,192     $ 206,763
  AMERCO notes and loans payable               942,092       780,008
  SAC Holding II notes & loans payable          76,572        77,474
  Policy benefits & losses, claims &
   loss expenses payable                       799,503       805,121
  Liabilities from investment contracts        463,366       503,838
  Other policyholders' funds & liabilities      14,764        29,642
  Deferred income                               21,258        38,743
  Deferred income taxes                        133,677        78,124
  Related party liabilities                      8,818        11,070
                                             ---------     ---------
 Total liabilities                           2,666,242     2,530,783
                                             ---------     ---------
 Stockholders' Equity:
  Series A common stock                            929           929
  Common stock                                   9,568         9,568
  Additional paid-in capital                   365,531       350,344
  Accumulated other comprehensive income       (29,604)      (30,661)
  Retained earnings                            781,273       671,642
  Cost of common shares in treasury, net      (418,092)     (418,092)
  Unearned employee stock ownership
   plan shares                                  (9,640)      (10,891)
                                             ---------     ---------
 Total stockholders' equity                    699,965       572,839
                                             ---------     ---------
  Total liabilities & stockholders' equity   3,366,207     3,103,622
                                             =========     =========


                   AMERCO AND CONSOLIDATED ENTITIES
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                           Quarter Ended December 31,
                                              2005            2004
                                           ----------      ----------
                                                    (Unaudited)
                                          (In thousands, except share
                                             and per share amounts)
 Revenues:
 Self-moving equipment rentals             $  353,409      $  328,471
 Self-storage revenues                         29,784          28,846
 Self-moving and self-storage
   products and service sales                  47,316          42,694
 Property management fees                       4,289           2,880
 Life insurance premiums                       30,743          31,241
 Property and casualty insurance premiums       9,949           3,975
 Net investment and interest income            12,807          17,109
 Other revenue                                  7,373           6,281
                                           ----------      ----------
 Total revenues                            $  495,670      $  461,497
                                           ----------      ----------
 Costs and expenses:
  Operating expenses                          271,368         286,518
  Commission expenses                          42,548          39,302
  Cost of sales                                23,376          21,361
  Benefits and losses                          35,202          40,958
  Amortization of deferred policy
   acquisition costs                            5,754           6,279
  Lease expense                                37,182          38,506
  Depreciation, net                            34,821          28,282
                                           ----------      ----------
   Total costs and expenses                $  450,251      $  461,206
                                           ----------      ----------
 Earnings from operations                      45,419             291
  Interest expense                            (17,791)        (16,931)
  Litigation settlement                            --          51,341
                                           ----------      ----------
 Pretax earnings                               27,628          34,701
  Income tax expense                          (12,458)        (13,155)
                                           ----------      ----------
 Net earnings                                  15,170          21,546
  Less: Preferred stock dividends              (3,241)         (3,241)
                                           ----------      ----------
 Earnings available to common shareholders $   11,929      $   18,305
                                           ==========      ==========
 Basic and diluted earnings per
  common share                             $     0.57      $     0.88
                                           ==========      ==========
 Adjusted earnings per share
  Basic and diluted earnings per
   common share                            $     0.57      $     0.88
  Less: After tax litigation settlement
   proceeds                                        --           (1.56)
                                           ----------      ----------
  Adjusted basic and diluted earnings per
   common share                                  0.57           (0.68)
                                           ==========      ==========
 Weighted average common shares outstanding:
  Basic and diluted shares                 20,865,684      20,813,805
                                           ==========      ==========


                   AMERCO AND CONSOLIDATED ENTITIES
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                                Nine Months Ended
                                                  December 31,
                                              2005           2004
                                           ----------      ----------
                                                   (Unaudited)
                                          (In thousands, except share
                                             and per share amounts)
 Revenues:
  Self-moving equipment rentals            $1,201,374      $1,147,369
  Self-storage revenues                        92,153          88,359
  Self-moving and self-storage products
   and service sales                          176,371         161,967
  Property management fees                     12,558           8,971
  Life insurance premiums                      90,050          96,535
  Property and casualty insurance premiums     20,172          20,815
  Net investment and interest income           38,873          46,160
  Other revenue                                29,093          23,686
                                           ----------      ----------
  Total revenues                            1,660,644       1,593,862
                                           ----------      ----------
 Costs and expenses:
  Operating expenses                          827,861         845,876
  Commission expenses                         143,763         138,069
  Cost of sales                                85,337          77,617
  Benefits and losses                          89,225         111,010
  Amortization of deferred policy
   acquisition costs                           17,806          24,015
  Lease expense                               107,055         115,389
  Depreciation, net                           103,380          86,214
                                           ----------      ----------
   Total costs and expenses                 1,374,427       1,398,190
                                           ----------      ----------
 Earnings from operations                     286,217         195,672
  Interest expense                            (52,672)        (53,995)
  Fees on early extinguishment of debt        (35,627)             --
  Litigation settlement                            --          51,341
                                           ----------      ----------
 Pretax earnings                              197,918         193,018
  Income tax expense                          (78,564)        (73,994)
                                           ----------      ----------
 Net earnings                                 119,354         119,024
  Less: Preferred stock dividends              (9,723)         (9,723)
                                           ----------      ----------
 Earnings available to common shareholders $  109,631      $  109,301
                                           ==========      ==========
 Basic and diluted earnings per
  common share                             $     5.26      $     5.25
                                           ==========      ==========
 Adjusted earnings per share
 Basic and diluted earnings per
  common share                             $     5.26      $     5.25
 Less: After tax litigation settlement
  proceeds                                         --           (1.56)
 Add: Debt extinguishment fees                   1.08              --
                                           ----------      ----------
 Adjusted earnings per share                     6.34            3.69
                                           ==========      ==========
 Weighted average common shares
  outstanding:
  Basic and diluted shares                 20,850,254      20,801,112
                                           ==========      ==========


              NON-GAAP FINANCIAL RECONCILIATION SCHEDULE
        Dollars in Thousands (except share and per share data)
                                                      Quarter Ended
                                                    December 31, 2004
                                                    -----------------
 AMERCO and Consolidated Entities
  Earnings per common share basic and diluted           $       0.88
  Nonrecurring litigation proceeds, net of taxes               (1.56)
                                                    ----------------
  Loss per common share basic and diluted
  before nonrecurring litigation proceeds               $      (0.68)
                                                    ================
  Nonrecurring litigation proceeds, net of fees         $     51,341
  Income tax expense                                         (18,853)
                                                    -----------------
  Nonrecurring litigation proceeds, net of taxes        $     32,488
                                                    ================
  Nonrecurring litigation proceeds, net of taxes,
  per common share basic and diluted                    $       1.56
                                                    ================
  Weighted average shares outstanding:
  Basic and diluted                                       20,813,805
                                                    ================

                                                    Nine Months Ended
 AMERCO and Consolidated Entities                   December 31, 2005
                                                    -----------------
  Earnings per common share basic and diluted           $       5.26
  Nonrecurring refinancing charges, net of taxes                1.08
                                                    ----------------
  Earnings per common share basic and diluted
  before nonrecurring refinancing charges               $       6.34
                                                    ================
  Nonrecurring refinancing charges                      $    (35,627)
  Income tax benefit                                          13,109
                                                    ----------------
  Nonrecurring refinancing charges, net of taxes        $    (22,518)
                                                    ================
  Nonrecurring refinancing charges, net of taxes,
  per common share basic and diluted                    $      (1.08)
                                                    ================
  Weighted average shares outstanding:
  Basic and diluted                                       20,850,254
                                                    ================

                                                    Nine Months Ended
 AMERCO and Consolidated Entities                   December 31, 2004
                                                    -----------------
  Earnings per common share basic and diluted           $       5.25
  Nonrecurring litigation proceeds, net of taxes               (1.56)
                                                    ----------------
  Earnings per common share basic and diluted
  before nonrecurring litigation proceeds               $       3.69
                                                    ================
  Nonrecurring litigation proceeds, net of fees         $     51,341
  Income tax expense                                         (18,853)
                                                    ----------------
  Nonrecurring litigation proceeds, net of taxes        $     32,488
                                                    ================
  Nonrecurring litigation proceeds, net of taxes,
  per common share basic and diluted                    $       1.56
                                                    ================
  Weighted average shares outstanding:
  Basic and diluted                                       20,801,112
                                                    ================


        

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