AMERCO (UHAL) Tops Q2 EPS by $9.00, Revenues Beat

AMERCO (NASDAQ: UHAL) reported Q2 EPS of $13.58, $9.00 better than the analyst estimate of $4.58. Revenue for the quarter came in at $1.32 billion versus the consensus estimate of $998.4 million.

Highlights of Second Quarter Fiscal 2021 Results

• Self-moving equipment rental revenues increased $126.7 million or 16% during the second quarter of fiscal 2021, compared with the second quarter of fiscal 2020. As government-imposed restrictions on public activity have lessened and customer behavior has evolved, revenue and transactions for both our In-town and one-way markets improved for trucks and trailers. For July, August and September revenues increased by approximately 11%, 14% and 24%, 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 $10.3 million or 10% during the second quarter of fiscal 2021, compared with the second quarter of fiscal 2020. The average monthly number of occupied units increased by 15%, or 50,000 units, during the second quarter of fiscal 2021 compared with the same period 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 added approximately 4.4 million net rentable square feet, or an 11% increase, with approximately 0.6 million of that coming on during the second quarter of fiscal 2021.
• Sales of self-moving and self-storage products and services increased $25.5 million, or 35% compared with the second quarter of fiscal 2020 due to increased sales of hitches, moving supplies and propane.
• For the second quarter of fiscal 2021 compared with the second quarter of fiscal 2020, depreciation, net of gains and losses on sales decreased $14.1 million. Depreciation expense on the rental equipment fleet decreased $10.5 million as new truck production has been slowed by COVID-19 related delays at manufacturers, while gains on the sales of rental trucks increased $10.1 million from higher resale values and additional box truck sales. All other depreciation increased $6.5 million from the increase in new moving and storage locations.
• For the first six months of fiscal 2021 and fiscal 2020 gross truck and trailer capital expenditures were approximately $395 million compared with $1,037 million, proceeds from the sales of rental equipment were $310 million compared with $397 million and spending on real estate related acquisitions and projects were approximately $226 million compared with $423 million.
• Fleet maintenance and repair costs decreased $6.8 million in the second quarter of fiscal 2021 compared with the same period last year.
• Operating earnings at our Moving and Storage operating segment increased $145.0 million in the second quarter of fiscal 2021 compared with the same period last year. Total revenues climbed $175.8 million and total costs and expenses increased $30.8 million.
• Cash and credit availability at the Moving and Storage operating segment was $1,293.3 million at September 30, 2020 compared with $498.1 million at March 31, 2020.
• On August 20, 2020, we declared a cash dividend on our Common Stock of $0.50 per share to holders of record on September 7, 2020. The dividend was paid on September 21, 2020.
• "We drastically cut rental equipment additions in March as OEM plants closed and we prepared for the worst. Likewise, we cut real estate acquisition and development investment. It will take about two years to normalize rental equipment investment, probably longer on real estate investment," stated Joe Shoen, chairman of AMERCO. "In both self-storage and self-move, we are in very competitive markets. This remains a close game. We are committed to winning. Over the last 7 months, we have simply outworked our peer group. No one knows what next year will bring."

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

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