RENO, Nev., June 12, 2006 (PRIMEZONE) -- AMERCO (Nasdaq:UHAL), parent of U-Haul International, Inc., North America's largest "do-it-yourself" moving and storage operator, today reported that net earnings available to common shareholders for the year ended March 31, 2006 were $108.2 million, or $5.19 per share, compared with net earnings of $76.5 million, or $3.68 per share for the same period last year. Included in the fiscal 2006 results is a nonrecurring after-tax charge of $1.08 per share associated with the Company's first quarter refinancing. The fiscal 2005 results included nonrecurring, after-tax litigation settlement proceeds of $1.56 per share. Taking into account the refinancing costs and litigation settlement proceeds, adjusted earnings per share was $6.27 for fiscal 2006 compared with $2.12 for fiscal 2005.
For the quarter ending March 31, 2006, net loss available to common shareholders was $1.4 million, or $0.07 per share, compared with a net loss of $32.8 million, or $1.57 per share for the same period last year.
According to Joe Shoen, chairman of AMERCO, "We continue to invest strongly in our truck rental fleet to further strengthen our 'do-it-yourself' moving and storage business. Over the past twelve months, we have placed over 15,600 rental trucks and 3,000 rental trailers into service to support the moving needs of our customers. This investment is expected to reduce current spending on truck-maintenance costs."
Highlights of Full-Year and Fourth-Quarter 2006 Results
-- Gross revenues from the moving and storage business increased
$108.8 million or 6.1% for the full year of fiscal 2006 compared
to fiscal 2005.
-- Over the past year we have placed over 15,600 rental trucks in
service along with 3,000 new trailers. The rotation of the
fleet has resulted in positive earnings implications through the
reduction of repair and maintenance costs.
-- Self-storage occupancy rates at Company owned and managed
locations have increased from approximately 81% in fiscal 2005
to 86 % in fiscal 2006.
-- Retail sales increases have increased for the full year and the
quarter as customer demand for our propane, towing accessories
and moving support items continues to grow. The Company remains
the single largest retail provider of propane and towing
accessories in the United States.
-- In June 2005 the Company refinanced its debt. The new structure
reduced borrowing costs and provides the Company with the
capital necessary for continued investment and sustainable
growth. The structure of the new loan facilities provide
increased flexibility to the Company to manage its operations
and finances.
-- The insurance companies operating earnings have improved from
$12.7 million in losses in fiscal 2005 to $15.1 million in
earnings for fiscal 2006. For the fourth quarter of fiscal
2006, operating earnings improved to $4.0 million from a loss of
$6.7 million in the fourth quarter of fiscal 2005.
Fiscal 2007 Outlook
We have had many developments which we believe will positively affect performance in fiscal 2007 and beyond. We believe the momentum in our moving and storage operations will continue. The addition of new rental equipment is being well received in our marketplace.
In fiscal 2007 we are working toward increasing transaction volume and utilization for self-moving equipment rentals. Investing in our truck fleet is a key initiative to reach this goal. We continue to manufacture our vans and expect to produce thousands of additional vans and trailers during the next year. This investment is expected to increase the number of rentable equipment days available to meet our customer demands and to reduce future spending on repair costs and equipment downtime. In fiscal 2007 we are working toward increasing our storage occupancy at existing sites, adding new affiliates and building new locations. We believe that additional occupancy gains in our current portfolio of locations can be realized in fiscal 2007. We will continue to add new storage affiliates through our eMove Storage Affiliate Program and plan for growth in this program in fiscal 2007. Additionally, we are developing new facilities that will increase our overall capacity in future years.
At RepWest, our plans to exit non U-Haul related lines are progressing. Additionally, RepWest will continue to provide loss adjusting and claims handling for U-Haul and will underwrite components of the Safemove, Safetow and Safestor protection packages to U-Haul customers.
At Oxford, the ratings upgrade by A.M. Best in October 2005 to B+ should support the expansion of its distribution capabilities.
AMERCO will hold its investor call for the fiscal year 2006 on Wednesday, June 14, 2006, at 9 a.m. Pacific 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 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.
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 15,400 locations in all 50 United States and 10 Canadian provinces, the Company has the largest consumer truck-rental fleet in the world, with over 93,000 trucks, 80,675 trailers and 33,500 towing devices.
U-Haul has also been a leader in the storage industry since 1974, with more than 377,000 rooms, approximately 33 million square feet of storage space at nearly 1,050 owned and managed 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-K for the year ended March 31, 2006, which is on file with the SEC.
Report on Business Operations
Listed on a consolidated basis, are revenues for our major product lines for the fourth quarter and the full year of fiscal 2006 and fiscal 2005.
Quarter Ended Twelve Months Ended
Mar. 31, Mar. 31,
2006 2005 2006 2005
------------------ -----------------------
(In thousands)
Self-moving equipment
rentals $302,195 $290,526 $1,503,569 $1,437,895
Self-storage revenues 29,966 25,796 122,119 114,155
Self-moving and
self-storage
products and
service sales 47,350 44,131 223,721 206,098
Property management fees 8,637 2,868 21,195 11,839
Life insurance premiums 28,783 29,701 118,833 126,236
Property & casualty
insurance premiums 5,829 4,172 26,001 24,987
Net investment & interest
income 14,221 10,579 53,094 56,739
Other revenue 9,001 6,486 38,094 30,172
------------------ -----------------------
Consolidated revenue 445,982 414,259 2,106,626 2,008,121
================== =======================
Listed below are revenues and earnings from operations at each of our four operating segments for the fourth quarter and the full year of fiscal 2006 and fiscal 2005
Quarter Ended Twelve Months Ended
Mar. 31, Mar. 31,
2006 2005 2006 2005
------------------ -----------------------
Moving and storage (In thousands)
Revenues $395,797 $367,696 $1,900,468 $1,791,667
Earnings from
operations 16,547 (27,112) 292,774 165,985
Property and casualty
insurance
Revenues 8,165 5,539 37,358 41,417
Earnings from
operations (583) (6,065) 1,144 (14,814)
Life insurance
Revenues 36,673 36,990 148,080 159,484
Earnings from
operations 4,576 (665) 13,933 2,065
SAC Holding II
Revenues 10,698 9,944 46,239 43,172
Earnings from
operations 2,913 868 13,643 10,466
Eliminations
Revenues (5,351) (5,910) (25,519) (27,619)
Earnings from
operations (4,289) 4,298 (16,113) 3,294
Consolidated results
Revenues 445,982 414,259 2,106,626 2,008,121
Earnings from
operations 19,164 (28,676) 305,381 166,996
AMERCO AND CONSOLIDATED ENTITIES
CONSOLIDATED BALANCE SHEETS
Mar. 31, Mar. 31,
2006 2005
--------- ---------
Assets (In thousands)
Cash and cash equivalents $ 155,459 $ 55,955
Reinsurance recoverables & trade
receivables, net 230,179 240,593
Notes and mortgage receivables, net 2,532 1,965
Inventories, net 64,919 63,658
Prepaid expenses 53,262 29,045
Investments, fixed maturities 695,958 635,178
Investments, other 209,361 345,207
Deferred policy acquisition costs, net 47,821 52,543
Other assets 102,094 84,895
Related party assets 270,468 252,666
--------- ---------
Total 1,832,053 1,761,705
--------- ---------
Property, plant and equipment, at cost;
Land 175,785 151,145
Buildings and improvements 739,603 686,225
Furniture and equipment 281,371 265,216
Rental trailers and other rental equipment 201,273 199,461
Rental trucks 1,331,891 1,252,018
SAC Holding II - PP&E 79,217 77,594
--------- ---------
Subtotal 2,809,140 2,631,659
Less: Accumulated depreciation (1,273,975) (1,277,191)
--------- ---------
Total property, plant and equipment 1,535,165 1,354,468
--------- ---------
Total assets 3,367,218 3,116,173
========= =========
Liabilities & stockholders' equity
Liabilities:
Accounts payable & accrued expenses $ 235,878 $ 237,134
AMERCO notes and loans payable 965,634 780,008
SAC Holding II notes & loans payable 76,232 77,474
Policy benefits & losses, claims & loss
expenses payable 800,413 805,330
Liabilities from investment contracts 449,149 503,838
Other policyholders' funds & liabilities 7,705 11,613
Deferred income 21,346 38,743
Deferred income taxes 108,092 78,124
Related party liabilities 7,165 11,070
--------- ---------
Total liabilities 2,671,614 2,543,334
Stockholders' Equity:
Series A common stock 929 929
Common stock 9,568 9,568
Additional paid-in-capital 367,655 350,344
Accumulated other comprehensive income (28,902) (24,612)
Retained earnings 773,784 665,593
Cost of common shares in treasury, net (418,092) (418,092)
Unearned employee stock ownership plan shares (9,338) (10,891)
--------- ---------
Total stockholders' equity 695,604 572,839
--------- ---------
Total liabilities & stockholders' equity 3,367,218 3,116,173
========= =========
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter Ended March 31,
2006 2005
------------ -----------
(In thousands, except share
and per share amounts)
Revenues:
Self-moving equipment rentals $ 302,195 $ 290,526
Self-storage revenues 29,966 25,796
Self-moving and self-storage
products and service sales 47,350 44,131
Property management fees 8,637 2,868
Life insurance premiums 28,783 29,701
Property and casualty insurance
premiums 5,829 4,172
Net investment and interest income 14,221 10,579
Other revenue 9,001 6,486
---------- ----------
Total revenues $ 445,982 $ 414,259
Costs and expenses:
Operating expenses 253,129 276,321
Commission expenses 36,338 34,238
Cost of sales 27,798 27,692
Benefits and losses 27,935 29,333
Amortization of deferred policy
acquisition costs 6,455 4,497
Lease expense 35,726 35,965
Depreciation, net 39,437 34,889
---------- -----------
Total costs and expenses $ 426,818 $ 442,935
---------- -----------
Earnings from operations 19,164 (28,676)
Interest expense (16,809) (19,210)
Litigation settlement -- --
---------- -----------
Pretax earnings 2,355 (47,886)
Income tax (expense)/benefit (555) 18,286
---------- -----------
Net earnings 1,800 (29,600)
Less: Preferred stock dividends (3,240) (3,240)
---------- -----------
Loss available to common shareholders $ (1,440) $ (32,840)
========== ===========
Basic and diluted loss per common
share $ (0.07) $ (1.57)
========== ===========
Weighted average common shares
outstanding:
Basic and diluted shares 20,887,258 20,824,296
========== ==========
AMERCO AND CONSOLIDATED ENTITIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Twelve Months Ended March 31,
2006 2005
------------ ------------
(In thousands, except share
and per share amounts)
Revenues:
Self-moving equipment rentals $ 1,503,569 $ 1,437,895
Self-storage revenues 122,119 114,155
Self-moving and self-storage
products and service sales 223,721 206,098
Property management fees 21,195 11,839
Life insurance premiums 118,833 126,236
Property and casualty insurance
premiums 26,001 24,987
Net investment and interest income 53,094 56,739
Other revenue 38,094 30,172
---------- ------------
Total revenues 2,106,626 2,008,121
Costs and expenses:
Operating expenses 1,080,990 1,122,197
Commission expenses 180,101 172,307
Cost of sales 113,135 105,309
Benefits and losses 117,160 140,343
Amortization of deferred policy
acquisition costs 24,261 28,512
Lease expense 142,781 151,354
Depreciation, net 142,817 121,103
---------- ------------
Total costs and expenses 1,801,245 1,841,125
---------- ------------
Earnings from operations 305,381 166,996
Interest expense (69,481) (73,205)
Fees on early extinguishment of
debt (35,627) --
Litigation settlement -- 51,341
---------- ------------
Pretax earnings 200,273 145,132
Income tax expense (79,119) (55,708)
---------- ------------
Net earnings 121,154 89,424
Less: Preferred stock dividends (12,963) (12,963)
---------- ------------
Earnings available to common
shareholders $ 108,191 $ 76,461
========== ============
Basic and diluted earnings per
common share $ 5.19 $ 3.68
========== ============
Weighted average common shares
outstanding:
Basic and diluted shares 20,857,108 20,804,773
========== ============
NON-GAAP FINANCIAL RECONCILIATION SCHEDULE
Year Ended
March 31, 2006
---------------
(In thousands, except share and per share amounts)
AMERCO and Consolidated Entities
Earnings per common share basic and
diluted $ 5.19
Non-recurring refinancing charges,
net of taxes 1.08
------------
Earnings per common share basic and
diluted before non-recurring
refinancing charges $ 6.27
============
Nonrecurring fees on early extinguishment
of debt $ (35,627)
Income tax benefit 13,101
------------
Nonrecurring fees on early extinguishment
of debt, net of taxes $ (22,526)
============
Nonrecurring fees on early extinguishment
of debt, net of taxes, per common
share basic and diluted $ (1.08)
============
Weighted average shares outstanding:
basic and diluted 20,857,108
============
Year Ended
March 31, 2005
--------------
(In thousands, except share and per share
amounts)
AMERCO and Consolidated Entities
Earnings per common share basic and
diluted $ 3.68
Non-recurring litigation proceeds, net of taxes (1.56)
------------
Earnings per common share basic and
diluted before non-recurring
litigation proceeds $ 2.12
============
Nonrecurring litigation proceeds $ 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 20,804,773
============