AMERCO Reports Third Quarter Fiscal 2009 Financial Results

Phoenix, Arizona, UNITED STATES


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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