AMERCO Reports First Quarter Fiscal 2008 Financial Results

Phoenix, Arizona, UNITED STATES


RENO, Nev., Aug. 8, 2007 (PRIME 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 first quarter ending June 30, 2007, of $38.5 million, or $1.93 per share, compared with net earnings of $52.2 million, or $2.50 per share, for the same period last year.

"Our team is focused on improving operations for future growth and profitability. We have implemented a rate system as well as a new repair diagnostic system. We expect to see a positive impact from both of these initiatives. I am obviously disappointed with the results for the quarter. Self-storage continues on plan through expansion at existing locations, development of new properties and growth of our self-storage affiliate program," stated Joe Shoen, chairman of AMERCO.



 Highlights of First Quarter 2008 Results

 --  Self-moving equipment rental revenue decreased 2.7 percent for
     the first quarter of fiscal 2008 compared with the first quarter
     of fiscal 2007. An increase in total moving transactions was
     offset by continuing negative-pricing trends for one-way moves.

 --  During the quarter more than 9,000 rental trucks were placed in
     service along with nearly 1,000 towing devices. The Company
     continues to remove older model rental trucks through its fleet
     sales program.

 --  A negative earnings effect resulting from the Company's decision
     to purchase the majority of its new rental equipment in lieu of
     leasing continues to be seen. Depreciation on rental equipment
     increased $14.4 million for the first quarter of fiscal 2008
     compared with the first quarter of fiscal 2007.

 --  Included as an offset to the total depreciation expense for the
     first quarter of fiscal 2008 is a $10 million gain on the sale of
     real estate.

 --  Self-storage revenues increased $1.6 million or 5.3 percent for
     the first quarter of fiscal 2008 compared with the first quarter
     of fiscal 2007 due to improved pricing at selected locations.
     Available square footage at Company-owned locations increased
     approximately 447,000 square feet this year over the same period
     last year.

 --  As of June 30, 2007 the Company has repurchased 1,225,290 shares
     at a cost of $83.1 million. The Company's Board authorized a
     stock repurchase of up to $115 million of Common Stock effective
     through October 2007.

 --  At June 30, 2007 cash, restricted cash and available credit at
     the Moving and Storage segment was $588.3 million. Included in
     this amount is $196.3 million of escrowed cash from the first
     quarter fleet securitization that will be used to fulfill the
     fleet acquisition plan for the remainder of fiscal 2008. This
     escrowed cash is reported as Other Assets along with the
     corresponding amount in Notes Payable in the Company's June 30,
     2007 balance sheet.

AMERCO will hold its investor call for the first quarter of fiscal 2008 on Thursday, August 9, 2007, at 8:30 a.m. Pacific Time (11:30 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.

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 15,950 locations in all 50 United States and 10 Canadian provinces. U-Haul customers' patronage has enabled the U-Haul fleet to grow to more than 100,000 trucks, 78,500 trailers and 31,100 towing devices. As a result, U-Haul offers more than 384,000 rooms and more than 33.8 million square feet of storage space at more than 1,055 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 retailer 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 June 30, 2007, 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 first quarter of fiscal 2008 and fiscal 2007.


                                                Quarter Ended June 30,
                                              ------------------------
                                                2007           2006
                                              ---------      ---------
                                                      (Unaudited)
                                                     (In thousands)
 Revenues
  Self-moving equipment rentals               $ 396,136      $ 407,234
  Self-storage revenues                          32,036         30,431
  Self-moving &
   self-storage products and service 
   sales                                         68,655         67,451
  Property management fees                        3,947          3,847
  Life insurance premiums                        29,187         30,919
  Property & casualty insurance premiums          5,916          5,382
  Net investment & interest income               14,369         13,475
  Other revenue                                   7,912          7,933
                                              ---------      ---------
    Consolidated revenues                     $ 558,158      $ 566,672

 Listed below are revenues and earnings from operations at each of our
 operating segments for the first quarter of fiscal 2008 and fiscal
 2007.

                                                Quarter Ended June 30,
                                              ------------------------
                                                 2007           2006
                                              ---------      ---------
                                                     (Unaudited)
                                                    (In thousands)
 Moving & storage
    Revenues                                  $ 506,216      $ 514,638
    Earnings from operations                     88,492        106,921
 Property and casualty insurance
    Revenues                                      9,016          8,068
    Earnings from operations                      2,316          1,701
 Life insurance
    Revenues                                     36,183         38,137
    Earnings from operations                      2,317          1,951
 SAC Holding II
    Revenues                                     12,389         12,479
    Earnings from operations                      3,755          4,123
 Eliminations
   Revenues                                     (5,646)        (6,650)
   Earnings from operations                     (4,821)        (4,530)
 Consolidated results
   Revenues                                     558,158        566,672
   Earnings from operations                      92,059        110,166

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 is as follows:



                                                Quarter Ended June 30,
                                              ------------------------
                                                 2007          2006
                                              ---------      ---------
                                                     (Unaudited)
                                                   (In thousands,
                                                except occupancy rate)

 Room count as of June 30                         384            379
 Square footage as of June 30                  33,846         33,335
 Average number of rooms occupied                 328            330
 Average occupancy rate based on
  room count                                     85.5%          87.1%
 Average square footage occupied               29,304         29,479


                   AMERCO AND CONSOLIDATED ENTITIES
                 CONDENSED CONSOLIDATED BALANCE SHEETS

                                             June 30,       March 31,
                                              2007            2007
                                           -----------     -----------
                                           (Unaudited)

                                                (In thousands)

 Assets:
   Cash and cash equivalents               $   161,629    $     75,272
   Reinsurance recoverables and trade
    receivables, net                           190,885         184,617
   Notes and mortgage receivables,
    net                                          2,068           1,669
   Inventories, net                             64,998          67,023
   Prepaid expenses                             47,423          52,080
   Investments, fixed maturities and
    marketable equities                        674,036         681,801
   Investments, other                          170,731         178,699
   Deferred policy acquisition
     costs, net                                 40,645          44,514
   Other assets                                325,493          95,123
   Related party assets                        240,056         245,179
                                           -----------     -----------
     Total                                   1,917,964       1,625,977
                                           -----------     -----------
   Property, plant and equipment, at cost:
     Land                                      204,704         202,917
     Buildings and improvements                817,433         802,289
     Furniture and equipment                   306,502         301,751
     Rental trailers and other rental
      equipment                                202,341         200,208
     Rental trucks                           1,725,380       1,604,123
     SAC Holding II - PP&E                      81,034          80,349
                                           -----------     -----------
       Subtotal                              3,337,394       3,191,637
   Less: Accumulated depreciation           (1,301,975)     (1,294,566)
                                           -----------     -----------
     Total property, plant and
       equipment                             2,035,419       1,897,071
                                           -----------     -----------
   Total assets                            $ 3,953,383     $ 3,523,048
                                           ===========     ===========
 Liabilities & stockholders' equity
 Liabilities:
   Accounts payable & accrued
    expenses                               $   267,163     $   251,197
   AMERCO's notes and loans payable          1,582,793       1,181,165
   SAC Holding II notes & loans
    payable, non-recourse to AMERCO             74,545          74,887
   Policy benefits & losses, claims
     & loss expenses payable                   767,246         768,751
   Liabilities from investment
     contracts                                 373,632         386,640
   Other policyholders' funds &
    liabilities                                 10,697          10,563
   Deferred income                              16,246          16,478
   Deferred income taxes                       113,101         113,170
   Related party liabilities                     2,474           2,099
                                           -----------     -----------
 Total liabilities                           3,207,897       2,804,950
                                           -----------     -----------
 Stockholders' equity:
   Series A common stock                            --              --
   Common stock                                 10,497          10,497
   Additional paid-in capital                  376,090         375,412
   Accumulated other comprehensive
    loss                                       (26,743)        (41,779)
   Retained earnings                           894,637         849,300
   Cost of common shares in treasury,
     net                                      (501,165)       (467,198)
   Unearned employee stock ownership
    plan shares                                 (7,830)         (8,134)
                                           -----------     -----------
 Total stockholders' equity                    745,486         718,098
                                           -----------     -----------
 Total liabilities & stockholders'
   equity                                  $ 3,953,383     $ 3,523,048
                                           ===========     ===========

                    AMERCO AND CONSOLIDATED ENTITIES
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                              Quarter Ended June 30,
                                              2007            2006
                                           -----------     -----------
                                                   (Unaudited)
                                           (In thousands, except share
                                             and per share amounts)
 Revenues:
   Self-moving equipment rentals           $   396,136     $   407,234
   Self-storage revenues                        32,036          30,431
   Self-moving and self-storage
    products and service sales                  68,655          67,451
   Property management fees                      3,947           3,847
   Life insurance premiums                      29,187          30,919
   Property and casualty insurance
     premiums                                    5,916           5,382
   Net investment and interest income           14,369          13,475
   Other revenue                                 7,912           7,933
                                           -----------     -----------
     Total revenues                            558,158         566,672
                                           -----------     -----------

 Costs and expenses:
   Operating expenses                          273,331         261,379
   Commission expenses                          47,923          49,536
   Cost of sales                                34,648          32,316
   Benefits and losses                          29,277          30,606
   Amortization of deferred policy
    acquisition costs                            3,917           5,626
   Lease expense                                32,738          37,372
   Depreciation, net of (gains)
    losses on disposals                         44,265          39,671
                                           -----------     -----------
     Total costs and expenses                  466,099         456,506
                                           -----------     -----------

 Earnings from operations                       92,059         110,166
   Interest expense                            (23,771)        (18,462)
                                           -----------     -----------
 Pretax earnings                                68,288          91,704
   Income tax expense                          (26,536)        (36,283)
                                           -----------     -----------
 Net earnings                                   41,752          55,421
   Less: Preferred stock dividends              (3,241)         (3,241)
                                           -----------     -----------
 Earnings available to common
   shareholders                            $    38,511     $    52,180
                                           ===========     ===========
 Basic and diluted earnings per
   common share                            $      1.93     $      2.50
                                           ===========     ===========
 Weighted average common shares
   outstanding:
   Basic and diluted                        19,937,152      20,897,688
                                           ===========     ===========


        

Tags


Contact Data