AMERCO Reports Fiscal 2016 Financial Results

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May 25, 2016 4:30 PM EDT

RENO, Nev., May 25, 2016 /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, 2016, were $489.0 million, or $24.95 per share, compared with $356.7 million, or $18.21 per share for the same period last year. Included in the results for the year ended March 31, 2015, was an after-tax expense of $1.96 per share associated with our fourth quarter accrual of $60.7 million for the PEI litigation. Excluding this after-tax expense, adjusted earnings were $20.17 per share for the year ended March 31, 2015.

For the quarter ended March 31, 2016, the Company reported net earnings available to shareholders of $52.6 million, or $2.68 per share compared with net earnings of $9.5 million, or $0.47 per share for the same period last year. Included in the results for the fourth quarter ended March 31, 2015, was an after-tax expense of $1.96 per share associated with our fourth quarter accrual of $60.7 million for the PEI litigation. Excluding this after-tax expense, adjusted earnings were $2.43 per share for the quarter ended March 31, 2015.

"Our team made significant progress over the last year," stated Joe Shoen, chairman of AMERCO.  "The self-moving and storage marketplaces remain very competitive.  We continue to invest time and resources today on initiatives that should benefit us in years to come."

Highlights of Fiscal Year and Fourth Quarter 2016 Results

  • Self-moving equipment rental revenues increased $23.1 million or 5.4% in the fourth quarter of fiscal 2016 compared with the fourth quarter of fiscal 2015, and finished the full year up $151.6 million or 7.1% compared with fiscal 2015. During fiscal 2016, we added both independent dealers and Company-owned locations further extending our network reach. Our truck, trailer and towing device fleets experienced net additions during fiscal 2016. These activities, combined with operational improvements resulted in increased transactions compared with last year. Revenue increased primarily from these gains in transactions.
  • Self-storage revenues increased $10.0 million or 18.0% in the fourth quarter of fiscal 2016 compared with the fourth quarter of fiscal 2015 and for the full year increased $36.8 million or 17.4% compared with fiscal 2015. Acquisitions, new development, occupancy gains at existing locations and improvement in overall rates across our portfolio contributed to the increase in storage revenue. During fiscal 2016 we added approximately 3.6 million square feet of owned net rentable storage.
  • Operating earnings at our Moving and Storage operating segment, excluding the PEI litigation accruals of $5.0 million and $60.7 million from fiscal 2016 and 2015, respectively, increased $14.4 million in the fourth quarter of fiscal 2016 compared with the same period last year and for the full year increased $147.0 million.
  • Combined operating earnings at our Life Insurance segment and our Property and Casualty Insurance segment were steady at over $54 million.
  • Gross truck and trailer capital expenditures for fiscal 2016 were approximately $881 million compared with approximately $898 million for fiscal 2015. Proceeds from the sales of rental equipment were approximately $517 million for fiscal 2016 compared with $407 million in fiscal 2015. Spending on real estate related acquisitions and projects increased approximately $224 million to $592 million in fiscal 2016 compared with fiscal 2015.

AMERCO will hold its investor call for fiscal 2016 on Thursday, May 26, 2016, 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, 2016, 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 2016 and 2015.

Quarter Ended Mar. 31,

Twelve Months Ended Mar. 31,

2016

2015

2016

2015

(In thousands)

Revenues:

Self-moving equipment rentals

$453,072

$429,967

$2,297,980

$2,146,391

Self-storage revenues

65,529

55,513

247,944

211,136

Self-moving & self-storage products &      service sales                          

53,542

52,574

251,541

244,177

Property management fees

5,932

6,371

26,533

25,341

Life insurance premiums

41,224

40,106

162,662

156,103

Property and casualty insurance premiums

11,987

10,791

50,020

46,456

Net investment and interest income

23,656

21,074

86,805

84,728

Other revenue

28,255

26,334

152,171

160,199

Total revenues

$683,197

$642,730

$3,275,656

$3,074,531

Listed below are revenues and earnings from operations at each of our operating segments for the fourth quarter and the full year of fiscal 2016 and 2015.

Quarter Ended Mar. 31,

Twelve Months Ended Mar. 31,

2016

2015

2016

2015

Moving and storage

(In thousands)

   Revenues

$608,618

$573,539

$2,984,504

$2,800,438

   Earnings from operations before equity     

      earnings of subsidiaries

91,369

21,286

813,124

610,430

Property and casualty insurance

   Revenues

15,931

13,787

64,803

59,275

   Earnings from operations

5,733

5,542

24,547

23,477

Life insurance

   Revenues

59,816

56,536

231,220

219,656

   Earnings from operations

9,787

8,173

29,773

29,755

Eliminations

  Revenues

(1,168)

(1,132)

(4,871)

(4,838)

  Earnings from operations before equity in

     earnings of subsidiaries

(153)

(164)

(630)

(638)

Consolidated results

  Revenues

683,197

642,730

3,275,656

3,074,531

  Earnings from operations

106,736

34,837

866,814

663,024

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:

Quarter Ended March 31,

2016

2015

(In thousands, except occupancy rate)

Room count as of March 31

275

232

Square footage as of March 31

23,951

20,318

Average monthly number of rooms occupied

207

183

Average monthly occupancy rate based on room count

76.1%

79.5%

Average monthly square footage occupied

18,732

16,347

Twelve Months Ended March 31,

2016

2015

(In thousands, except occupancy rate)

Room count as of March 31

275

232

Square footage as of March 31

23,951

20,318

Average monthly number of rooms occupied

203

180

Average monthly occupancy rate based on room count

80.1%

81.7%

Average monthly square footage occupied

18,231

16,021

 

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED BALANCE SHEETS

March 31,

2016

2015

(In thousands)

ASSETS

Cash and cash equivalents

$

600,646

$

441,850

Reinsurance recoverables and trade receivables, net

175,210

189,869

Inventories, net

79,756

69,472

Prepaid expenses

134,300

126,296

Investments, fixed maturities and marketable equities

1,510,538

1,304,962

Investments, other

310,072

268,720

Deferred policy acquisition costs, net

136,386

115,422

Other assets

100,572

106,157

Related party assets

85,734

141,790

3,133,214

2,764,538

Property, plant and equipment, at cost:

Land

587,347

467,482

Buildings and improvements

2,187,400

1,728,033

Furniture and equipment

399,943

355,349

Rental trailers and other rental equipment

462,379

436,642

Rental trucks

3,514,175

3,059,987

7,151,244

6,047,493

Less: Accumulated depreciation

(2,133,733)

(1,939,856)

Total property, plant and equipment

5,017,511

4,107,637

Total assets

$

8,150,725

$

6,872,175

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Accounts payable and accrued expenses

$

502,613

$

496,370

Notes, loans and leases payable

2,688,758

2,190,869

Policy benefits and losses, claims and loss expenses payable

1,071,412

1,062,188

Liabilities from investment contracts

951,490

685,745

Other policyholders' funds and liabilities

8,650

7,764

Deferred income

22,784

18,081

Deferred income taxes

653,612

526,799

Total liabilities

5,899,319

4,987,816

Common stock

10,497

10,497

Additional paid-in capital

451,629

449,668

Accumulated other comprehensive loss

(60,525)

(34,365)

Retained earnings

2,533,641

2,142,600

Cost of common shares in treasury, net

(525,653)

(525,653)

Cost of preferred shares in treasury, net

(151,997)

(151,997)

Unearned employee stock ownership plan shares

(6,186)

(6,391)

Total stockholders' equity

2,251,406

1,884,359

Total liabilities and stockholders' equity

$

8,150,725

$

6,872,175

 

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Quarter Ended March 31,

2016

2015

(In thousands, except share and per share data)

Revenues:

  Self-moving equipment rentals

$

453,072

$

429,967

  Self-storage revenues

65,529

55,513

  Self-moving and self-storage products and service sales

53,542

52,574

  Property management fees

5,932

6,371

  Life insurance premiums

41,224

40,106

  Property and casualty insurance premiums

11,987

10,791

  Net investment and interest income

23,656

21,074

  Other revenue

28,255

26,334

    Total revenues

683,197

642,730

Costs and expenses:

  Operating expenses

344,440

393,448

  Commission expenses

50,423

48,703

  Cost of sales

34,394

33,857

  Benefits and losses

39,043

38,334

  Amortization of deferred policy acquisition costs

7,713

6,465

  Lease expense

9,531

18,848

  Depreciation, net of (gains) losses on disposals

90,917

68,238

    Total costs and expenses

576,461

607,893

Earnings from operations

106,736

34,837

  Interest expense

(26,423)

(22,781)

Pretax earnings

80,313

12,056

  Income tax expense

(27,745)

(2,576)

Earnings available to common shareholders

$

52,568

$

9,480

Basic and diluted earnings per common share

$

2.68

$

0.47

Weighted average common shares outstanding: Basic and diluted

19,593,071

19,594,530

 

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Twelve Months Ended March 31,

2016

2015

(In thousands, except share and per share data)

Revenues:

  Self-moving equipment rentals

$

2,297,980

$

2,146,391

  Self-storage revenues

247,944

211,136

  Self-moving and self-storage products and service sales

251,541

244,177

  Property management fees

26,533

25,341

  Life insurance premiums

162,662

156,103

  Property and casualty insurance premiums

50,020

46,456

  Net investment and interest income

86,805

84,728

  Other revenue

152,171

160,199

    Total revenues

3,275,656

3,074,531

Costs and expenses:

  Operating expenses

1,470,047

1,479,409

  Commission expenses

262,627

249,642

  Cost of sales

144,990

146,072

  Benefits and losses

167,436

158,760

  Amortization of deferred policy acquisition costs

23,272

19,661

  Lease expense

49,780

79,798

  Depreciation, net of (gains) losses on disposals

290,690

278,165

    Total costs and expenses

2,408,842

2,411,507

Earnings from operations

886,814

663,024

  Interest expense

(97,903)

(97,525)

  Fees and amortization on early extinguishment of debt

-

(4,081)

Pretax earning

768,911

561,418

  Income tax expense

(279,910)

(204,677)

Earnings available to common shareholders

$

489,001

$

356,741

Basic and diluted earnings per common share

$

24.95

$

18.21

Weighted average common shares outstanding: Basic and diluted

19,596,110

19,586,633

 

NON-GAAP FINANCIAL RECONCILIATION SCHEDULE

Year Ended

March 31, 2015

(In thousands, except share and per share amounts)

AMERCO and Consolidated Subsidiaries

Earnings per common share: basic and diluted

$

18.21

PEI litigation accrual, net of taxes, per common share basic and diluted

1.96

Earnings per common share: basic and diluted before PEI litigation accrual

$

20.17

PEI litigation accrual

$

(60,700)

Income tax benefit

22,301

PEI litigation accrual, net of taxes

$

(38,399)

PEI litigation accrual, net of taxes, per common share basic and diluted

$

(1.96)

Weighted average shares outstanding: basic and diluted

19,586,633

Quarter Ended

March 31, 2015

(In thousands, except share and per share amounts)

AMERCO and Consolidated Subsidiaries

Earnings per common share: basic and diluted

$

0.47

PEI litigation accrual, net of taxes, per common share basic and diluted

1.96

Earnings per common share: basic and diluted before PEI litigation accrual

$

2.43

PEI litigation accrual

$

(60,700)

Income tax benefit

22,301

PEI litigation accrual, net of taxes

$

(38,399)

PEI litigation accrual, net of taxes, per common share basic and diluted

$

(1.96)

Weighted average shares outstanding: basic and diluted

19,594,530

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/amerco-reports-fiscal-2016-financial-results-300275134.html

SOURCE AMERCO


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