AMERCO Reports First Quarter Fiscal 2019 Financial Results

RENO, Nev., Aug. 8, 2018 /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 common shareholders for its first quarter ended June 30, 2018, of $127.8 million, or $6.53 per share, compared with net earnings of $126.2 million, or $6.44 per share, for the same period last year.

"Increased revenue for the quarter was driven by more transactions in our moving business and increased rooms rented in our self-storage portfolio compared to this period last year," stated Joe Shoen, chairman of AMERCO. "I continue to work on repair expense.  We are not there yet."

Highlights of First Quarter Fiscal 2019 Results

• Self-moving equipment rental revenues increased $46.7 million, or 7.0% for the first quarter of fiscal 2019 compared with the first quarter of fiscal 2018. One-way and in-town transactions both increased leading to the improved revenue results. Sales of our Safemove and related protection packages contributed to the revenue growth. Compared with the same period last year, we increased the number of retail locations, independent dealers, box trucks, trailers and towing devices in the rental fleet.
• Self-storage revenues increased $9.5 million, or 12.4% for the first quarter of fiscal 2019 compared with the first quarter of fiscal 2018. The average monthly amount of occupied square feet increased by 10.7% during the first quarter of fiscal 2019 compared with the same period last year. Over the last twelve months, we have added approximately 4.3 million net rentable square feet to the self-storage portfolio with approximately 1.4 million of that coming on during the first quarter. Average monthly occupancy throughout the first quarter of fiscal 2019 for the entire storage portfolio was 70%. Of this amount, facilities open for more than three years averaged 84% while facilities open less than three years averaged 42%.
• For the first quarter of fiscal 2019 compared with the first quarter of fiscal 2018, depreciation, net of gains and losses on sales increased $0.1 million. Depreciation expense on the rental equipment fleet increased $7.2 million primarily due to a larger fleet. Gains on the sales of rental trucks increased $11.2 million. We sold more used trucks and the average sales proceeds per trucks were nominally better in the first quarter of fiscal 2019, compare with the prior year period. All other depreciation increased $4.1 million from the increase in new moving and storage locations.
• For the first quarter of fiscal 2019 compared with the first quarter of fiscal 2018 gross truck and trailer capital expenditures were approximately $440 million compared with approximately $396 million. Proceeds from sales of rental equipment were $187 million compared with $140 million. Spending on real estate related acquisitions and projects were approximately $219 million compared with $143 million, respectively.
• Fleet maintenance and repair costs increased $40.8 million in the first quarter of fiscal 2019 compared with the same period last year. Higher repair and maintenance spending was primarily associated with the portion of the fleet nearing resale.
• Operating earnings at our Moving and Storage operating segment decreased $20.3 million compared with the same period last year. Total revenues climbed $65.4 million and total costs and expenses increased $85.7 million.
• The effective federal income tax rate for first quarter of fiscal 2019 benefited from the Tax Reform Act. Had this rate been in effective for the first quarter of fiscal 2018 it would have increased earnings by $23.9 million or $1.22 per share, to $150.1 million, or $7.66 per share for the quarter.
• Cash and credit availability at the Moving and Storage segment was $838.3 million at June 30, 2018 compared with $882.0 million at March 31, 2018.
• On June 6, 2018, we declared a cash dividend on our Common Stock of $0.50 per share to holders of record on June 21, 2018. The dividend was paid on July 5, 2018.
• We are holding our 12th Annual Virtual Analyst and Investor meeting on Thursday, August 23, 2018 at 11:00 a.m. Arizona Time (2:00 p.m. Eastern). This is an opportunity to interact directly with Company representatives through a live video webcast on amerco.com. A brief presentation by the Company will be followed by a question and answer session.

AMERCO will hold its investor call for the first quarter of fiscal 2019 on Thursday, August 9, 2018, 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.

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 June 30, 2018, 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 first quarter of fiscal 2019 and 2018.

Listed below are revenues and earnings from operations at each of our operating segments for the first quarter of fiscal 2019 and 2018.

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:

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SOURCE AMERCO