AMERCO (UHAL) Tops Q1 EPS by $2.69, Revenues Beat

AMERCO (NASDAQ: UHAL) reported Q1 EPS of $4.47, $2.69 better than the analyst estimate of $1.78. Revenue for the quarter came in at $987.24 million versus the consensus estimate of $866.5 million.

Highlights of First Quarter Fiscal 2021 Results

• Self-moving equipment rental revenues decreased $94.3 million, or 12.6% for the first quarter of fiscal 2021 compared with the first quarter of fiscal 2020. Either through force of government or personal caution, self-moving rental activity decreased as a result of COVID-19 during the first quarter of fiscal 2021. The decline in equipment rental revenues, as compared to the same period the previous year, did improve throughout the quarter. April, May and June revenues were down approximately 30%, 8% and 4%, respectively. Compared to the same period last year, we increased the number of retail locations, independent dealers, box trucks and trailers in the rental fleet.
• Self-storage revenues increased $10.7 million, or 10.9% for the first quarter of fiscal 2021 compared with the first quarter of fiscal 2020. The average number of units occupied during the quarter increased by 15%, or 44,000 compared to the same quarter last year. The growth in revenues and square feet rented comes from a combination of occupancy gains at existing locations and from the addition of new capacity to the portfolio. Over the last twelve months, we have added approximately 5.2 million net rentable square feet to the self-storage portfolio with approximately 1.3 million square feet of that coming online during the first quarter.
• Sales of self-moving and self-storage products and services increased $11.3 million, or 14.2% compared with the first quarter of fiscal 2020 due to increased sales of hitches, moving supplies and propane.
• For the first quarter of fiscal 2021 compared with the first quarter of fiscal 2020, depreciation, net of gains on sales increased $25.1 million. Depreciation expense on the rental equipment fleet increased $2.5 million to $124.9 million. Net gains on the sales of rental trucks decreased $15.6 million from a reduction in auction activity due to COVID-19. All other depreciation increased $7.0 million to $41.9 million from the increase in new moving and storage locations. Net gains on disposal of real estate decreased $1.4 million from the condemnation of a property in the first quarter of fiscal 2020.
• For the first quarter of fiscal 2021 compared with the first quarter of fiscal 2020 gross truck and trailer capital expenditures were approximately $123 million compared with approximately $561 million. Proceeds from sales of rental equipment were $74 million compared with $158 million. Spending on real estate related acquisitions and development were approximately $103 million compared with $218 million, respectively. We will continue to calibrate our capital spending based in part upon the evolving effects of COVID-19.
• Fleet maintenance and repair costs decreased $27.8 million in the first quarter of fiscal 2021 compared with the same period last year.
• Operating earnings at our Moving and Storage operating segment decreased $50.2 million compared with the same period last year. Total revenues decreased $74.1 million and total costs and expenses decreased $23.9 million.
• Cash and credit availability at the Moving and Storage segment was $840.9 million at June 30, 2020 compared with $498.1 million at March 31, 2020.

"Customer demand for U-Haul products and services has rebounded as society learns to cope with the effects of COVID-19," stated Joe Shoen, chairman of AMERCO. "As essential critical workers, the U-Haul team has stood tall and come through for the customer."

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

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