AMERCO Reports First Quarter Fiscal 2016 Financial Results
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RENO, Nev., Aug. 5, 2015 /PRNewswire/ -- AMERCO (Nasdaq: UHAL), parent of U-Haul International, Inc., Oxford Life Insurance Company, Repwest Insurance Company and Amerco Real Estate Company, today reported net earnings available to common shareholders for its first quarter ended June 30, 2015, of $171.3 million, or $8.74 per share, compared with net earnings of $124.5 million, or $6.36 per share, for the same period last year.
"Our team is executing the customer initiatives put into place years ago," stated Joe Shoen, chairman of AMERCO. "We are building on those initiatives by becoming more service-oriented in very competitive marketplaces."
Highlights of First Quarter Fiscal 2016 Results
- Self-moving equipment rental revenues increased $53.8 million, or 9% for the first quarter of fiscal 2016 compared with the first quarter of fiscal 2015. Compared to the same period last year we increased the number of trucks in our rental equipment fleet, expanded the number of independent dealers in our distribution network and added Company-owned locations. Revenue and transactions for both our In-Town and one-way moving markets increased.
- Self-storage revenues increased $8.1 million for the first quarter of fiscal 2016 compared with the first quarter of fiscal 2015. The average monthly amount of occupied square feet increased by 13% during the first quarter of fiscal 2016 compared with the same period last year. The growth in revenues and square feet rented comes from a combination of improved occupancy at existing locations as well as the addition of new facilities to the portfolio. Over the last twelve months we have added approximately 2.1 million net rentable square feet to the self-storage portfolio with over 0.4 million of that coming on during the first quarter.
- Operating earnings at our Moving and Storage operating segment increased $71.2 million in the first quarter of fiscal 2016 compared with the same period last year. Total revenues improved by $59.9 million with total costs and expenses experiencing a decline of $9.9 million. Increases in personnel costs were more than offset by a reduction in direct operating costs associated with the U-Box program. Increased depreciation expense resulting from additional rental equipment was offset by increased sales of used equipment during the quarter.
- For the first quarter of fiscal 2016 compared with the first quarter of fiscal 2015 gross truck and trailer capital expenditures were approximately $310 million compared with approximately $326 million, proceeds from sales of rental equipment were $193 million compared with $128 million and spending on real estate related acquisitions and projects were approximately $113 million compared with $86 million, respectively.
- Cash and credit availability at the Moving and Storage segment was $544.6 million at June 30, 2015 compared with $561.9 million at March 31, 2015.
- On June 5, 2015, we declared a cash dividend on our Common Stock of $1.00 per share to holders of record on June 19, 2015. The dividend was paid on July 1, 2015.
- We are holding our 9th Annual Virtual Analyst and Investor meeting on Thursday, August 27, 2015 at 11:00 a.m. Arizona Time (2:00 p.m. Eastern). This is an opportunity to interact directly with Company representatives through a live video webcast. A brief presentation by the Company will be followed by a question and answer session.
AMERCO will hold its investor call for the first quarter of fiscal 2016 on Thursday, August 6, 2015, at 8 a.m. Arizona Time (11 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., Oxford Life Insurance Company, Repwest Insurance Company and Amerco Real Estate Company. U-Haul is in the shared use business and was founded on the fundamental philosophy that the division of use and specialization of ownership is good for both U-Haul customers and the environment.
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 June 30, 2015, 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 first quarter of fiscal 2016 and 2015.
Quarter Ended June 30, | ||||
2015 |
2014 | |||
(Unaudited) | ||||
(In thousands) | ||||
Self-moving equipment rentals |
$ |
629,286 |
$ |
575,475 |
Self-storage revenues |
57,191 |
49,134 | ||
Self-moving and self-storage product and service sales |
77,258 |
74,479 | ||
Property management fees |
6,111 |
5,677 | ||
Life insurance premiums |
40,266 |
37,930 | ||
Property and casualty insurance premiums |
10,556 |
9,618 | ||
Net investment and interest income |
21,972 |
21,046 | ||
Other revenue |
42,165 |
45,596 | ||
Consolidated revenue |
$ |
884,805 |
$ |
818,955 |
Listed below are revenues and earnings from operations at each of our operating segments for the first quarter of fiscal 2016 and 2015.
Quarter Ended June 30, | ||||
2015 |
2014 | |||
(Unaudited) | ||||
(In thousands) | ||||
Moving and storage |
||||
Revenues |
$ |
814,840 |
$ |
754,921 |
Earnings from operations before equity in earnings of subsidiaries |
280,579 |
210,757 | ||
Property and casualty insurance |
||||
Revenues |
14,890 |
12,412 | ||
Earnings from operations |
6,478 |
4,022 | ||
Life insurance |
||||
Revenues |
56,069 |
52,620 | ||
Earnings from operations |
4,211 |
4,575 | ||
Eliminations |
||||
Revenues |
(994) |
(998) | ||
Earnings from operations before equity in earnings of subsidiaries |
(160) |
(155) | ||
Consolidated Results |
||||
Revenues |
884,805 |
818,955 | ||
Earnings from operations |
291,108 |
219,199 |
The Company owns and manages self-storage facilities. Self-storage revenues reported in the consolidated financial statements represent Company-owned locations only. Self-storage data for our owned locations follows:
Quarter Ended June 30, | ||||
2015 |
2014 | |||
(In thousands, except occupancy rate) | ||||
Room count as of June 30 |
237 |
212 | ||
Square footage as of June 30 |
20,735 |
18,642 | ||
Average monthly number of rooms occupied |
194 |
173 | ||
Average monthly occupancy rate based on room count |
82.5% |
82.3% | ||
Average monthly square footage occupied |
17,334 |
15,335 |
AMERCO AND CONSOLIDATED SUBSIDIARIES | ||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
June 30, |
March 31, | |||
2015 |
2015 | |||
(Unaudited) |
||||
(In thousands) | ||||
ASSETS |
||||
Cash and cash equivalents |
$ |
475,562 |
$ |
441,850 |
Reinsurance recoverables and trade receivables, net |
209,274 |
189,869 | ||
Inventories, net |
69,889 |
69,472 | ||
Prepaid expenses |
67,511 |
126,296 | ||
Investments, fixed maturities and marketable equities |
1,334,199 |
1,304,962 | ||
Investments, other |
322,894 |
268,720 | ||
Deferred policy acquisition costs, net |
115,388 |
115,422 | ||
Other assets |
96,097 |
106,157 | ||
Related party assets |
134,653 |
141,790 | ||
2,825,467 |
2,764,538 | |||
Property, plant and equipment, at cost: |
||||
Land |
488,931 |
467,482 | ||
Buildings and improvements |
1,812,899 |
1,728,033 | ||
Furniture and equipment |
359,500 |
355,349 | ||
Rental trailers and other rental equipment |
449,810 |
436,642 | ||
Rental trucks |
3,133,198 |
3,059,987 | ||
6,244,338 |
6,047,493 | |||
Less: Accumulated depreciation |
(1,979,171) |
(1,939,856) | ||
Total property, plant and equipment |
4,265,167 |
4,107,637 | ||
Total assets |
$ |
7,090,634 |
$ |
6,872,175 |
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
Liabilities: |
||||
Accounts payable and accrued expenses |
$ |
470,925 |
$ |
495,135 |
Notes, loans and leases payable |
2,192,671 |
2,190,869 | ||
Policy benefits and losses, claims and loss expenses payable |
1,074,173 |
1,062,188 | ||
Liabilities from investment contracts |
711,782 |
685,745 | ||
Other policyholders' funds and liabilities |
13,467 |
8,999 | ||
Deferred income |
26,438 |
18,081 | ||
Deferred income taxes |
552,117 |
526,799 | ||
Total liabilities |
5,041,573 |
4,987,816 | ||
Common stock |
10,497 |
10,497 | ||
Additional paid-in capital |
450,203 |
449,668 | ||
Accumulated other comprehensive loss |
(22,818) |
(34,365) | ||
Retained earnings |
2,294,291 |
2,142,600 | ||
Cost of common shares in treasury, net |
(525,653) |
(525,653) | ||
Cost of preferred shares in treasury, net |
(151,997) |
(151,997) | ||
Unearned employee stock ownership plan shares |
(5,462) |
(6,391) | ||
Total stockholders' equity |
2,049,061 |
1,884,359 | ||
Total liabilities and stockholders' equity |
$ |
7,090,634 |
$ |
6,872,175 |
AMERCO AND CONSOLIDATED SUBSIDIARIES | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Quarter Ended June 30, | ||||
2015 |
2014 | |||
(Unaudited) | ||||
(In thousands, except share and per share data) | ||||
Revenues: |
||||
Self-moving equipment rentals |
$ |
629,286 |
$ |
575,475 |
Self-storage revenues |
57,191 |
49,134 | ||
Self-moving and self-storage products and service sales |
77,258 |
74,479 | ||
Property management fees |
6,111 |
5,677 | ||
Life insurance premiums |
40,266 |
37,930 | ||
Property and casualty insurance premiums |
10,556 |
9,618 | ||
Net investment and interest income |
21,972 |
21,046 | ||
Other revenue |
42,165 |
45,596 | ||
Total revenues |
884,805 |
818,955 | ||
Costs and expenses: |
||||
Operating expenses |
363,169 |
363,299 | ||
Commission expenses |
73,058 |
66,340 | ||
Cost of sales |
41,255 |
41,628 | ||
Benefits and losses |
43,391 |
40,784 | ||
Amortization of deferred policy acquisition costs |
4,778 |
4,184 | ||
Lease expense |
17,064 |
22,470 | ||
Depreciation, net of (gains) losses on disposals |
50,982 |
61,051 | ||
Total costs and expenses |
593,697 |
599,756 | ||
Earnings from operations |
291,108 |
219,199 | ||
Interest expense |
(22,100) |
(24,148) | ||
Pretax earnings |
269,008 |
195,051 | ||
Income tax expense |
(97,723) |
(70,577) | ||
Earnings available to common shareholders |
$ |
171,285 |
$ |
124,474 |
Basic and diluted earnings per common share |
$ |
8.74 |
$ |
6.36 |
Weighted average common shares outstanding: Basic and diluted |
19,596,129 |
19,577,802 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/amerco-reports-first-quarter-fiscal-2016-financial-results-300124455.html
SOURCE AMERCO
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