AMERCO Reports Fiscal 2021 Financial Results

RENO, Nev., May 26, 2021 /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 shareholders for the year ended March 31, 2021, of $610.9 million, or $31.15 per share, compared with $442.0 million, or $22.55 per share for the same period last year. Included in the results for the year ended March 31, 2020, was a $7.45 per share, or $146.0 million tax benefit resulting from the CARES Act. Excluding this item, adjusted earnings were $15.10 per share for the year ended March 31, 2020. This adjustment to our net earnings and earnings per share provides a reconciliation for comparison of our financial performance for the periods presented.

For the quarter ended March 31, 2021, the Company reported net earnings available to shareholders of $73.8 million, or $3.76 per share compared with net earnings of $122.4 million, or $6.24 per share for the same period last year. Included in the results for the quarter ended March 31, 2020, was a $7.45 per share, or $146.0 million tax benefit resulting from the CARES Act. Excluding this, adjusted losses were ($1.21) per share for the quarter ended March 31, 2020.

"Market disruptions were countered by adapting to new customer needs," stated Joe Shoen, chairman of AMERCO. "Increased customer demand drove revenues. We fell behind plan in rental equipment and self-storage capital expenditures. Interest rates held. All of this created good 'results.' The entire team worked together to achieve this result.  As always, the best measurement period is more than a year."

Highlights of Fiscal Year and Fourth Quarter 2021 Results

• Self-moving equipment rental revenues increased $171.8 million, or 33%, in the fourth quarter of fiscal 2021 compared with the fourth quarter of fiscal 2020, and finished the full year up $390.9 million, or 15%, compared with fiscal 2020. During our first quarter this fiscal year, we experienced a decrease in these revenues of $94.3 million, or 13%. Since then, these revenues have increased $485.2 million, or 25%, over the last nine months. Transactions along with average revenue per transaction increased for both our In-town and one-way markets. Compared to the same period last year, we increased the number of retail locations and independent dealers.
• Self-storage revenues increased $21.2 million, or 19%, in the fourth quarter of fiscal 2021 compared with the fourth quarter of fiscal 2020, and for the full year increased $58.5 million, or 14%, compared with fiscal 2020. The average monthly number of occupied units increased by 21%, or 69,000 units, during the fourth quarter of fiscal 2021 compared with the same period last year. The growth in revenues and units rented comes from a combination of occupancy gains at existing locations and from the additions of new facilities to the portfolio. In fiscal 2021, we added approximately 3.7 million net rentable square feet, or a 9% increase, with approximately 0.8 million of that occurring during the fourth quarter of fiscal 2021.
• Sales of self-moving and self-storage products and services increased $22.9 million, or 40% in the fourth quarter of fiscal 2021 compared with the fourth quarter of fiscal 2020 and for the full year increased $79.8 million, or 30% compared with fiscal 2020. Increases came from the sales of moving supplies, hitch and towing accessories, and propane.
• For the quarter, depreciation, net of gains and losses on sales decreased $20.6 million. Depreciation on the rental equipment fleet decreased $6.3 million while net gains on the sales of rental trucks increased $19.5 million. All other depreciation increased $5.1 million from buildings and improvements. For the full fiscal year, depreciation, net of gains and losses on sales, decreased $27.1 million. Depreciation on the rental equipment fleet decreased $23.8 million. Although fewer trucks were sold, net gains from the disposal of rental equipment increased $27.0 million from higher resale values. Over the last nine months of fiscal 2021 net gains have increased $42.6 million, after a net loss of $15.6 million in the first quarter of fiscal 2021 due to COVID-19 auction shutdowns. All other depreciation increased $23.7 million largely from buildings and improvements.
• Fleet maintenance and repair costs increased $13.5 million in the fourth quarter of fiscal 2021 compared with the same period last year as preventative maintenance trended with transactions. Fleet maintenance and repair costs decreased $18.2 million for the full year of fiscal 2021 due to fewer trucks being prepped for sale at auction.
• Personnel related costs at the Moving and Storage operating segment increased $40.7 million in the fourth quarter of fiscal 2021 compared with the same period last year as a result of an $18.9 million increase in contributions made to our employee stock ownership plan along with additional performance compensation and wages for our Field team.
• Operating earnings at our Moving and Storage operating segment increased $137.9 million in the fourth quarter of fiscal 2021 compared with the same period last year. Total revenues increased $233.3 million and total costs and expenses increased $95.4 million.
• Gross truck and trailer capital expenditures for fiscal 2021 were approximately $853 million compared with approximately $1,374 million for fiscal 2020. Capital expenditures for the rental fleet, depending upon manufacturer availability, are expected to increase in fiscal 2022. Proceeds from the sales of rental equipment were approximately $527 million for fiscal 2021 compared with $678 million in fiscal 2020. Spending on real estate related acquisitions and projects decreased approximately $246 million to $505 million in fiscal 2021 compared with fiscal 2020.
• Cash and credit availability at the Moving and Storage operating segment was $1,115.3 million and $498.1 million as of March 31, 2021 and 2020, respectively.

AMERCO will hold its investor call for fiscal 2021 on Thursday, May 27, 2021, 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-K for the year ended March 31, 2021, 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 fourth quarter and the full year of fiscal 2021 and 2020.

Listed below are revenues and earnings from operations at each of our operating segments for the fourth quarter and the full year of fiscal 2021 and 2020

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 storage locations follows:

NON-GAAP FINANCIAL RECONCILIATION SCHEDULE

As of April 1, 2019, we adopted the new accounting standard for leases. Part of this adoption resulted in approximately $1 billion of property, plant and equipment, net ("PPE") being reclassed to Right of use assets - financing, net ("ROU-financing"). As of March 31, 2021, the balance of ROU-financing also includes the rental equipment purchased under new financing liability leases during fiscal 2021. The table below shows adjusted PPE as of March 31, 2021 and 2020, by including the ROU-financing. The assets included in ROU-financing are not a true book value as some of the assets are recorded at between 70% and 100% of value based on the lease agreement.

This adjustment to earnings per share for the quarter and year ended fiscal 2020, provides a reconciliation for comparison of our financial performance for the periods presented.

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SOURCE AMERCO