AMERCO (UHAL) Misses Q3 EPS by $2.30, Revenues Beat

AMERCO (NASDAQ: UHAL) reported Q3 EPS of $1.58, $2.30 worse than the analyst estimate of $3.88. Revenue for the quarter came in at $927.88 million versus the consensus estimate of $920.68 million.

"We maintained our expected rate of renting new storage rooms while continuing our strategy of releasing new self-storage product in markets underserved by U-Haul," stated Joe Shoen, chairman of AMERCO. "As I cautioned in November, I expected our business with last mile delivery companies might be flat or down. We saw a decline in this segment of the business during the quarter. Business with our core residential moving customers improved, but as I indicated last quarter, there is room for more progress."

Highlights of Third Quarter Fiscal 2020 Results

• Self-moving equipment rental revenues decreased $4.7 million or 1% during the third quarter of fiscal 2020, compared with the third quarter of fiscal 2019. The decline was a result of a reduction in our Corporate Account business. The third quarter of fiscal 2019 experienced a higher than usual volume of Corporate Account rentals. Outside of that portion of the business, we had revenue increases for both our In-town and one-way markets. We increased the number of retail locations, trucks, trailers and towing devices in the rental fleet compared with the same period last year.
• Self-storage revenues increased $13.3 million during the third quarter of fiscal 2020, compared with the third quarter of fiscal 2019. The average monthly amount of occupied square feet increased by 16%, or 45,000 units, during the third quarter of fiscal 2020 compared with the same period last year. The growth in revenues comes from a combination of occupancy gains at existing locations and from the addition of new facilities to the portfolio. Over the last twelve months, we have added approximately 6.1 million net rentable square feet or an 18% increase to our owned self-storage portfolio with approximately 1.2 million of that coming on during the third quarter.
• For the third quarter of fiscal 2020 compared with the third quarter of fiscal 2019, depreciation, net of gains and losses on sales increased $26.6 million. Depreciation expense on the rental equipment fleet increased $16.6 million primarily due to a larger fleet, while net losses on the disposals of rental equipment increased $2.9 million. All other depreciation increased $7.0 million due primarily to the increase in new moving and storage locations.
• For the first nine months of fiscal 2020 and fiscal 2019 gross truck and trailer capital expenditures totaled approximately $1,161 million compared with $882 million, proceeds from the sales of rental equipment totaled $591 million compared with $559 million and spending on real estate related acquisitions and projects totaled approximately $600 million compared with $639 million, respectively.
• Fleet maintenance and repair costs increased $13.6 million in the third quarter of fiscal 2020 compared with the same period last year.
• Operating earnings at our Moving and Storage operating segment decreased $58.2 million in the third quarter of fiscal 2020 compared with the same period last year. Total revenues increased $7.4 million and total costs and expenses increased $65.6 million.
• Cash and credit availability at the Moving and Storage operating segment was $659.2 million at December 31, 2019 compared with $724.5 million at March 31, 2019.
• On December 4, 2019, we declared a cash dividend on our Common Stock of $0.50 per share to holders of record on December 19, 2019. The dividend was paid on January 6, 2020.

For earnings history and earnings-related data on AMERCO (UHAL) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Hydrofarm Holdings Group, Inc. (HYFM) Misses Q2 EPS by 134c
• Star Equity Holdings (STRR) Misses Q2 EPS by 8c