AMERCO Reports Second Quarter Fiscal 2022 Financial Results

RENO, Nev., Nov. 3, 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 its second quarter ended September 30, 2021, of $409.9 million, or $20.90 per share, compared with net earnings of $266.4 million, or $13.58 per share, for the same period last year.

For the six-month period ended September 30, 2021, net earnings available to shareholders were $755.1 million, or $38.51 per share, compared with net earnings of $354.1 million, or $18.06 per share, for the same period last year.

"Demand for our do-it-yourself moving and storage products and services remains strong," stated Joe Shoen, chairman of AMERCO. "We are not able to purchase replacement rental trucks at the rate we want. We are making progress adding stores, self-storage, and U-Box facilities."

Highlights of Second Quarter Fiscal 2022 Results

• Self-moving equipment rental revenues increased $248.0 million or 27% during the second quarter of fiscal 2022, compared with the second quarter of fiscal 2021. Transactions for both our In-town and one-way markets increased as did revenue per transaction. This quarter's 27% improvement is compared against a second quarter from last year where we reported a 16% revenue improvement. Compared to the same period last year, we increased the number of retail locations, independent dealers, box trucks, trailers and towing device in the rental fleet.
• Self-storage revenues increased $38.2 million or 33% during the second quarter of fiscal 2022, compared with the second quarter of fiscal 2021.  The average monthly number of occupied units increased by 103,000 units, during the second quarter of fiscal 2022 compared with the same period last year.  Occupancy for all locations increased 12.4% to 84.3% from the second quarter of last year to this year while occupancy for the subsection of these locations that have been at 80% occupancy for the last two years was 96.5%.   The growth in revenues and square feet rented comes from a combination of occupancy gains at existing locations, the addition of new capacity to the portfolio and from an improvement in average revenue per occupied feet. Over the last twelve months, we added approximately 3.9 million net rentable square feet.   
• For the second quarter of fiscal 2022 compared with the second quarter of fiscal 2021, depreciation, net of gains and losses on sales decreased $1.7 million.  This was a combination of depreciation expense on the rental equipment fleet increasing $3.9 million while being more than offset by an increase on gains from the sales of rental trucks of $8.0 million from higher resale values. All other depreciation, primarily real estate related, increased $2.5 million.
• For the first six months of fiscal 2022 and fiscal 2021 gross truck and trailer capital expenditures were approximately $548 million compared with $395 million, proceeds from the sales of rental equipment were $300 million compared with $310 million and spending on real estate related acquisitions and projects were approximately $444 million compared with $226 million.
• Fleet maintenance and repair costs increased $28.5 million in the second quarter of fiscal 2022 compared with the same period last year due to preventative maintenance from higher customer activity combined with a slowdown in the rotation of new equipment into the fleet and older equipment out of the fleet.
• Operating earnings at our Moving and Storage operating segment increased $182.0 million in the second quarter of fiscal 2022 compared with the same period last year.  Total revenues climbed $331.7 million and total costs and expenses increased $149.6 million.
• Cash and credit availability at the Moving and Storage operating segment was $2,485.8 million as of September 30, 2021 compared with $1,115.3 million as of March 31, 2021. During the quarter, the Company entered into a note purchase agreement to issue $600 million of fixed rate senior unsecured notes in a private placement offering at a weighted average interest rate of 2.59%.
• On August 21, 2021, we declared a cash dividend on our Common Stock of $0.50 per share to holders of record on September 7, 2021. The dividend was paid on September 21, 2021.
• On October 6, 2021, we declared a cash dividend on our Common Stock of $0.50 per share to holders of record on October 18, 2021. The dividend was paid on October 29, 2021.

AMERCO will hold its investor call for the second quarter of fiscal 2022 on Thursday, November 4, 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 AMERCOAMERCO 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.

About U-HaulSince 1945, U-Haul has been the No. 1 choice of do-it-yourself movers, with a network of more than 23,000 locations across all 50 states and 10 Canadian provinces. Our customers' patronage has enabled the U-Haul fleet to grow to approximately 176,000 trucks, 126,000 trailers and 46,000 towing devices. U-Haul is the third largest self-storage operator in North America and offers over 841,000 rentable storage units and 72.6 million square feet of self-storage space at owned and managed facilities. U-Haul is the largest retailer of propane in the U.S., and continues to be the largest installer of permanent trailer hitches in the automotive aftermarket industry.

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 September 30, 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 second quarter of fiscal 2022 and 2021.

Listed below are revenues and earnings from operations at each of our operating segments for the second quarter of fiscal 2022 and 2021.

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:

Listed below on a consolidated basis are revenues for our major product lines for the first six months of fiscal 2022 and 2021.

Listed below are revenues and earnings from operations at each of our operating segments for the first six months of fiscal 2022 and 2021.

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:

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 September 30, 2021, the balance of ROU-financing also includes the rental equipment purchased under new financing liability leases during the first six months of fiscal 2022. The tables below show adjusted PPE as of September 30, 2021 and March 31, 2021, by including the ROU-financing. The assets included in the ROU-financing is not a true book value as some of the assets are recorded at between 70% and 100% of value based on the lease agreement.

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SOURCE AMERCO