AMERCO Reports Third Quarter Fiscal 2008 Financial Results


RENO, Nev., Feb. 6, 2008 (PRIME 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 for its third quarter ending December 31, 2007, of $13.6 million, or $0.69 per share, compared with a net loss of $12.7 million, or $0.61 per share, for the same period last year.

For the nine-month period ending December 31, 2007, net earnings available to common shareholders were $72.1 million, or $3.64 per share, compared with net earnings of $96.7 million, or $4.62 per share for the same period last year. Included in the results for December 31, 2006, was a nonrecurring after-tax charge of $0.20 per share associated with the Company's second- quarter debt amendment. Taking into account the nonrecurring charge, the adjusted earnings per share were $4.82 for the nine months ending December 31, 2006.

"While we recorded a modest increase in U-Move revenue for the quarter, we remain lower for the first nine months of our fiscal year," stated Joe Shoen, chairman of AMERCO. "The fourth quarter is developing in line with the most recent analyst's estimate. As always in the fourth quarter, bad weather can significantly offset income, most of which comes right off of the bottom line."

Highlights of Third-Quarter 2008 Results



 * Self-moving equipment rentals increased $1.8 million for the third
   quarter of fiscal 2008 compared with the third quarter of fiscal
   2007.  The Company continues to face challenges increasing
   transactions and improving revenue per transactions.

 * Self-storage revenues for the Moving and Storage segment increased
   4.7 percent for the third quarter of fiscal 2008 compared with the
   same period last year.  Pricing at selected locations continues to
   be positive.  The average number of rooms occupied for the third
   quarter of fiscal 2008 was greater than the same period last year;
   however, our room occupancy rate has decreased 2.8 percent during
   that time frame as we attempt to rent new rooms added to the system.
   Since the end of the third quarter of fiscal 2007 the Company has
   added nearly 6,000 rooms totaling 580,000 square feet of storage
   space.

 * During the third quarter of fiscal 2008 SAC Holding II was
   deconsolidated from AMERCO's financial statements.  As such, SAC
   Holding II is not included in our December 31, 2007 balance sheet
   and the December 31, 2007 statements of operations and cashflows
   include SAC Holding II activity through October 31, 2007.

 * Depreciation on rental equipment increased $9.7 million for the
   third quarter of fiscal 2008 compared with the third quarter of
   fiscal 2007.

 * On December 5, 2007 the AMERCO Board of Directors authorized the
   Company to repurchase up to $50 million of its common stock from
   time to time until December 31, 2008.  Through the date of this
   release the Company has not yet made a repurchase under this 
   program.

AMERCO will hold its investor call for the third quarter of fiscal 2008 on Thursday, February 7, 2008, at 8 a.m. Mountain 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.

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.

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 first choice of do-it-yourself movers, 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. U-Haul offers more than 389,000 rooms and more than 34 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 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 our Form 10-Q for the quarter ended December 31, 2007, which is on file with the SEC.

Report on Business Operations

Listed below are revenues and earnings from operations at each of our operating segments for the third quarter of fiscal 2008 and 2007; for the insurance companies the third quarter ended September 30, 2007 and 2006.



                                      Quarter Ended December 31,
                                      --------------------------
                                         2007           2006
                                       ---------      ---------
                                            (Unaudited)
                                           (In thousands)
 Moving & storage
    Revenues                           $ 422,411      $ 418,493
    Earnings from operations               5,435          4,911
 Property and casualty insurance
    Revenues                              10,892         11,667
    Earnings from operations               2,266            738
 Life insurance
    Revenues                              33,843         35,835
    Earnings from operations               5,047          4,333
 SAC Holding II
    Revenues                               3,551         10,810
    Earnings from operations                 851          3,011
 Eliminations
   Revenues                               (2,029)       (10,187)
   Earnings from operations               (5,240)        (4,731)
 Consolidated results
   Revenues                              468,668        466,618
   Earnings from operations                8,359          8,262

Listed below are revenues and earnings from operations at each of our operating segments for the first nine months of fiscal 2008 and 2007; for the insurance companies the first nine months ended September 30, 2007 and 2006.



                                      Nine Months Ended Dec. 31,
                                      -------------------------
                                         2007           2006
                                      ----------     ----------
                                            (Unaudited)
                                           (In thousands)
 Moving & storage
    Revenues                          $1,478,151     $1,484,952
    Earnings from operations             198,906        233,622
 Property and casualty insurance
    Revenues                              30,301         28,995
    Earnings from operations               8,304          4,103
 Life insurance
    Revenues                             104,486        112,703
    Earnings from operations              10,929         11,687
 SAC Holding II
    Revenues                              28,102         35,824
    Earnings from operations               7,926         11,273
 Eliminations
   Revenues                              (13,657)       (22,931)
   Earnings from operations              (16,521)       (16,004)
 Consolidated results
   Revenues                            1,627,383      1,639,543
   Earnings from operations              209,544        244,681

The Company owns and manages self-storage facilities. Self-storage revenues reported in the condensed 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 2008 and 2007 is as follows:



                                       Quarter Ended December 31,
                                       ------------------------
                                         2007           2006
                                       ---------      ---------
                                             (Unaudited)
                                  (In thousands, except occupancy rate)
 Room count as of Dec. 31                    389            381
 Square footage as of Dec 31              34,223         33,566
 Average number of rooms occupied            324            326
 Average occupancy rate based on
  room count                               83.6%          85.4%
 Average square footage occupied          29,073         29,203

                   AMERCO AND CONSOLIDATED ENTITIES
                 CONDENSED CONSOLIDATED BALANCE SHEETS

                                         Dec. 31, 2007  March 31, 2007
                                         -------------  --------------
                                          (Unaudited)
                                                 (In thousands)
 Assets
  Cash and cash equivalents               $   203,723    $    75,272
  Reinsurance recoverables and
   trade receivables, net                     179,848        184,617
  Notes and mortgage receivables, net           1,988          1,669
  Inventories, net                             62,150         67,023
  Prepaid expenses                             39,613         52,080
  Investments, fixed maturities and
   marketable equities                        655,189        681,801
  Investments, other                          166,063        178,699
  Deferred policy acquisition costs, net       38,447         44,514
  Other assets                                161,294         95,123
  Related party assets                        299,232        245,179
                                          -----------    -----------
                                            1,807,547      1,625,977
                                          -----------    -----------
  Property, plant and equipment, at cost:
   Land                                       206,994        202,917
   Buildings and improvements                 849,515        802,289
   Furniture and equipment                    317,727        301,751
   Rental trailers and other rental
    equipment                                 206,644        200,208
   Rental trucks                            1,716,853      1,604,123
   SAC Holding II - PP&E                           --         80,349
                                          -----------    -----------
                                            3,297,733      3,191,637
  Less: Accumulated depreciation           (1,315,937)    (1,294,566)
                                          -----------    -----------
    Total property, plant and equipment     1,981,796      1,897,071
                                          -----------    -----------
  Total assets                            $ 3,789,343    $ 3,523,048
                                          ===========    ===========

 Liabilities & stockholders' equity
 Liabilities:
  Accounts payable & accrued expenses     $   269,293    $   251,197
  AMERCO notes and loans payable            1,427,257      1,181,165
  SAC Holding II notes & loans payable,
   non-recourse to AMERCO
                                                   --         74,887
  Policy benefits & losses, claims
   & loss expenses payable
                                              764,519        768,751
  Liabilities from investment contracts       350,698        386,640
  Other policyholders' funds & liabilities     10,475         10,563
  Deferred income                               9,547         16,478
  Deferred income taxes                       144,699        113,170
  Related party liabilities                        --          2,099
                                          -----------    -----------
 Total liabilities                          2,976,488      2,804,950
                                          -----------    -----------
 Stockholders' equity:
  Common stock                                 10,497         10,497
  Additional paid-in capital                  418,848        375,412
  Accumulated other comprehensive loss        (40,817)       (41,779)
  Retained earnings                           932,703        849,300
  Cost of common shares in treasury, net     (501,165)      (467,198)
  Unearned employee stock ownership
   plan shares                                 (7,211)        (8,134)
                                          -----------    -----------
 Total stockholders' equity                   812,855        718,098
                                          -----------    -----------
 Total liabilities & stockholders'
  equity                                  $ 3,789,343    $ 3,523,048
                                          ===========    ===========

                   AMERCO AND CONSOLIDATED ENTITIES
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                              Quarter Ended Dec. 31,
                                                2007          2006
                                             ----------    ----------
                                                   (Unaudited)
                                           (In thousands, except share
                                              and per share amounts)
 Revenues:
   Self-moving equipment rentals             $  329,905    $  328,149
   Self-storage revenues                         29,630        31,765
   Self-moving and self-storage
    products and service sales                   43,211        46,351
   Property management fees                       6,925         5,914
   Life insurance premiums                       27,757        29,454
   Property and casualty insurance premiums       7,738         6,555
   Net investment and interest income            16,044        12,799
   Other revenue                                  7,458         5,631
                                             ----------    ----------
      Total revenues                            468,668       466,618
                                             ----------    ----------
 Costs and expenses:
   Operating expenses                           269,099       271,891
   Commission expenses                           41,531        39,316
   Cost of sales                                 26,677        24,970
   Benefits and losses                           25,290        31,461
   Amortization of deferred policy
    acquisition costs                             2,687         4,220
   Lease expense                                 34,010        36,481
   Depreciation, net of (gains) losses
    on disposals                                 61,015        50,017
                                             ----------    ----------
     Total costs and expenses                   460,309       458,356
                                             ----------    ----------

 Earnings from operations                         8,359         8,262
   Interest expense                             (25,227)      (22,131)
                                             ----------    ----------
 Pretax loss                                    (16,868)      (13,869)
   Income tax benefit                             6,474         4,389
                                             ----------    ----------
 Net loss                                       (10,394)       (9,480)
   Less: Preferred stock dividends               (3,241)       (3,241)
                                             ----------    ----------
 Loss available to common shareholders       $  (13,635)   $  (12,721)
                                             ==========    ==========
 Basic and diluted loss per
  common share                               $    (0.69)   $    (0.61)
                                             ==========    ==========
 Weighted average common shares
  outstanding:
   Basic and diluted                         19,746,237    20,922,433
                                             ==========    ==========

                   AMERCO AND CONSOLIDATED ENTITIES
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                             Nine Months Ended Dec. 31,
                                                2007          2006
                                             ----------    ----------
                                                   (Unaudited)
                                           (In thousands, except share
                                               and per share amounts)
 Revenues:
   Self-moving equipment rentals             $1,165,783    $1,181,103
   Self-storage revenues                         94,754        94,612
   Self-moving and self-storage products
    and service sales                           174,420       175,718
   Property management fees                      14,865        13,747
   Life insurance premiums                       84,881        91,493
   Property and casualty insurance premiums      20,986        18,407
   Net investment and interest income            46,832        41,900
   Other revenue                                 24,862        22,563
                                             ----------    ----------
      Total revenues                          1,627,383     1,639,543
                                             ----------    ----------
 Costs and expenses:
   Operating expenses                           827,420       814,078
   Commission expenses                          142,891       142,457
   Cost of sales                                 95,268        88,734
   Benefits and losses                           80,159        90,909
   Amortization of deferred policy
    acquisition costs                             9,870        14,671
   Lease expense                                101,205       111,238
   Depreciation, net of (gains) losses
    on disposals                                161,026       132,775
                                             ----------    ----------
     Total costs and expenses                 1,417,839     1,394,862
                                             ----------    ----------

 Earnings from operations                       209,544       244,681
   Interest expense                             (76,493)      (61,656)
   Amortization of fees on early
    extinguishment of debt                           --        (6,969)
                                             ----------    ----------
 Pretax earnings                                133,051       176,056
   Income tax expense                           (51,219)      (69,624)
                                             ----------    ----------
 Net earnings                                    81,832       106,432
   Less: Preferred stock dividends               (9,723)       (9,723)
                                             ----------    ----------
 Earnings available to common shareholders   $   72,109    $   96,709
                                             ==========    ==========
 Basic and diluted earnings per common share $     3.64    $     4.62
                                             ==========    ==========
 Weighted average common shares outstanding:
   Basic and diluted                         19,820,107    20,910,089
                                             ==========    ==========

              NON-GAAP FINANCIAL RECONCILIATION SCHEDULE

                                                           Nine Months
                                                              Ended
                                                           December 31,
                                                              2006
                                                           ----------
 (In thousands, except share and per share amounts)

 AMERCO and Consolidated Entities
  Amortization of fees on early extinguishment of debt     $   (6,969)
  Income tax benefit                                            2,718
                                                           ----------
  Amortization of fees on early extinguishment of debt,
   net of taxes                                            $   (4,251)
                                                           ----------
  Amortization of fees on early extinguishment of debt,
   net of taxes, per common share basic and diluted        $    (0.20)
                                                           ----------
 Weighted average shares outstanding: Basic and diluted    20,910,089
                                                           ----------


            

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