AMERCO Reports Fiscal 2009 Financial Results
For the quarter ending
“Self-moving equipment rental revenue was disappointing for the year,” stated
Highlights of Full-Year and Fourth-Quarter 2009 Results
- Self-moving equipment rental revenues decreased
$14.0 million in the fourth quarter of fiscal 2009 compared with the fourth quarter of fiscal 2008 and finished the full year down$28.3 million compared with the full year fiscal 2008. The quarterly and annual results were affected by a nominal decrease in moving transactions, adverse foreign currency exchange rates and reduced revenue per transaction on average for In-Town moves. - Self-storage revenues for AMERCO’s Moving and Storage segment increased
$205 thousand for the fourth quarter of fiscal 2009 compared with the fourth quarter of fiscal 2008. - At
March 31, 2009 the size of the rental truck fleet was approximately 101,000 trucks, an increase of 5,000 trucks sinceMarch 31, 2008 . - The Company nets gains and losses from the disposal of property and equipment against reported depreciation. Included as an offset to total depreciation for fiscal 2009 were
$0.5 million of gains on the sale of real estate compared with$12.7 million of gains during fiscal 2008. - For the full year, net losses on the disposal of equipment increased
$12.1 million in fiscal 2009 compared with fiscal 2008. Excluding these disposal gains and losses, total depreciation increased$5.9 million for the fourth quarter of 2009 and$22.1 million for the full year. Additionally, lease expense increased$7.7 million during the quarter and$18.5 for the year, as compared to the same periods in fiscal 2008. - Net cash provided by operating activities for the fourth quarter of fiscal 2009 was
$22.1 million compared with$26.4 million in the fourth quarter of fiscal 2008 and$275.0 million for the fiscal year 2009 compared with$329.3 million for fiscal 2008.
AMERCO will hold its investor call for the fiscal year 2009 on
About AMERCO
AMERCO is the parent company of U-Haul International, Inc., North America’s largest “do-it-yourself” moving and storage operator, AMERCO Real Estate Company, Republic Western Insurance Company and Oxford Life Insurance Company.
Since 1945, U-Haul has been the undisputed choice for the do-it-yourself mover, with a network of more than 15,800 locations in all 50 United States and 10 Canadian provinces. U-Haul customers’ patronage has enabled the U-Haul fleet to grow to approximately 101,000 trucks, 76,000 trailers and 34,000 towing devices. U-Haul offers more than 395,000 rooms and approximately 35 million square feet of storage space at nearly 1,090 owned and managed facilities throughout
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 Form 10-K for the year ended
Report on Business Operations
Listed on a consolidated basis, are revenues for our major product lines for the fourth quarter and the full year of fiscal 2009 and fiscal 2008.
Quarter Ended Twelve Months Ended
Mar. 31, Mar. 31,
2009 2008 2009 2008
----------------- --------------------
(In thousands)
Self-moving equipment
rentals 282,092 296,052 1,423,022 1,451,292
Self-storage revenues 27,699 27,494 110,548 122,248
Self-moving and self-storage
products and service sales 39,879 43,378 199,394 217,798
Property management fees 7,696 7,955 23,192 22,820
Life insurance premiums 28,047 27,115 109,572 111,996
Property & casualty
insurance premiums 6,825 7,402 28,337 28,388
Net investment & interest
income 13,529 15,415 58,021 62,110
Other revenue 9,626 8,286 40,180 32,522
-------------------- --------------------
Consolidated revenue 415,393 433,097 1,992,266 2,049,174
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Listed below are revenues and earnings (loss) from operations at each of our three current reportable operating segments (and former reportable segment) for the fourth quarter and the full year of fiscal 2009 and fiscal 2008.
Quarter Ended Twelve Months Ended
Mar. 31, Mar. 31,
2009 2008 2009 2008
----------------- ----------------------
Moving and storage (In thousands)
Revenues 373,679 390,622 $1,823,049 $1,858,230
Earnings (loss) from
operations (33,951) (5,936) 112,080 192,970
Property and casualty
insurance
Revenues 8,527 10,177 37,419 40,478
Earnings from operations 496 940 7,505 9,244
Life insurance
Revenues 34,135 32,962 135,056 137,448
Earnings from operations 4,357 6,273 17,748 17,202
SAC Holding II (a)
Revenues - - - 28,102
Earnings from operations - - - 7,926
Eliminations
Revenues (948) (664) (3,258) (15,084)
Earnings from operations (3,037) (6,962) (16,285) (23,620)
Consolidated results
Revenues 415,393 433,097 1,992,266 2,049,174
Earnings (loss) from
operations (32,135) (5,685) 121,048 203,722
(a) Fiscal 2008 includes 7 months of activity for SAC Holding II which
was deconsolidated effective October 31, 2007.
AMERCO AND CONSOLIDATED ENTITIES
CONSOLIDATED BALANCE SHEETS
Mar. 31, 2009 Mar. 31, 2008
------------- -------------
Assets (In thousands)
Cash and cash equivalents $240,587 $206,622
Reinsurance recoverables &
trade receivables, net 213,853 202,765
Notes and mortgage
receivables, net 2,931 2,088
Inventories, net 70,749 65,349
Prepaid expenses 54,201 56,159
Investments, fixed maturities
and marketable equities 519,631 633,784
Investments, other 227,022 185,591
Deferred policy acquisition
costs, net 44,993 35,578
Other assets 133,644 129,489
Related party assets 303,534 303,886
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1,811,145 1,821,311
---------- ----------
Property, plant and equipment,
at cost:
Land 212,744 208,164
Buildings and improvements 920,294 859,882
Furniture and equipment 333,314 309,960
Rental trailers and other
rental equipment 214,988 205,572
Rental trucks 1,666,151 1,734,425
---------- ----------
Subtotal 3,347,491 3,318,003
Less: Accumulated depreciation (1,333,563) (1,306,827)
---------- ----------
Total property, plant and
equipment 2,013,928 2,011,176
---------- ----------
Total assets $3,825,073 $3,832,487
========== ==========
Liabilities & stockholders'
equity
Liabilities:
Accounts payable & accrued
expenses $329,227 $292,526
AMERCO's notes, loans and
leases payable 1,546,490 1,504,677
Policy benefits & losses,
claims & loss expenses
payable 779,309 789,374
Liabilities from investment
contracts 303,332 339,198
Other policyholders' funds &
liabilities 11,961 10,467
Deferred income 24,612 11,781
Deferred income taxes 112,513 126,033
---------- ----------
Total liabilities 3,107,444 3,074,056
---------- ----------
Stockholders' equity:
Common stock 10,497 10,497
Additional paid-in capital 420,588 419,370
Accumulated other
comprehensive loss (98,000) (55,279)
Retained earnings 915,862 915,415
Cost of common shares in
treasury, net (525,653) (524,677)
Unearned employee stock
ownership plan shares (5,665) (6,895)
---------- ----------
Total stockholders' equity 717,629 758,431
---------- ----------
Total liabilities &
stockholders' equity $3,825,073 $3,832,487
========== ==========
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter Ended March 31,
2009 2008
-------------- --------------
(In thousands, except share and
per share amounts)
Revenues:
Self-moving equipment rentals $282,092 $296,052
Self-storage revenues 27,699 27,494
Self-moving and self-storage
products and service sales 39,879 43,378
Property management fees 7,696 7,955
Life insurance premiums 28,047 27,115
Property and casualty insurance
premiums 6,825 7,402
Net investment and interest
income 13,529 15,415
Other revenue 9,626 8,286
--------- ---------
Total revenues 415,393 433,097
Costs and expenses:
Operating expenses 254,437 252,454
Commission expenses 32,592 35,597
Cost of sales 23,531 24,942
Benefits and losses 25,956 28,658
Amortization of deferred policy
acquisition costs 5,225 3,311
Lease expense 40,621 32,964
Depreciation, net of (gains)
losses on disposals 65,166 60,856
--------- ---------
Total costs and expenses 447,528 438,782
--------- ---------
Loss from operations (32,135) (5,685)
Interest expense (23,696) (25,064)
--------- ---------
Pretax loss (55,831) (30,749)
Income tax benefit 20,543 16,701
--------- ---------
Net loss (35,288) (14,048)
Less: Preferred stock dividends (3,240) (3,240)
--------- ---------
Loss available to common
shareholders $(38,528) $(17,288)
========= =========
Basic and diluted loss per common
share $(1.99) $(0.85)
========= =========
Weighted average common shares
outstanding:
Basic and diluted 19,357,185 19,544,707
========= =========
AMERCO AND CONSOLIDATED ENTITIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Twelve Months Ended March 31,
2009 2008
-------------- --------------
(In thousands, except share and
per share amounts)
Revenues:
Self-moving equipment rentals $1,423,022 $1,451,292
Self-storage revenues 110,548 122,248
Self-moving and self-storage
products and service sales 199,394 217,798
Property management fees 23,192 22,820
Life insurance premiums 109,572 111,996
Property and casualty insurance
premiums 28,337 28,388
Net investment and interest
income 58,021 62,110
Other revenue 40,180 32,522
--------- ---------
Total revenues 1,992,266 2,049,174
Costs and expenses:
Operating expenses 1,047,238 1,079,486
Commission expenses 171,303 167,945
Cost of sales 114,387 120,210
Benefits and losses 108,259 108,817
Amortization of deferred policy
acquisition costs 12,394 13,181
Lease expense 152,424 133,931
Depreciation, net of (gains)
losses on disposals 265,213 221,882
--------- ---------
Total costs and expenses 1,871,218 1,845,452
--------- ---------
Earnings from operations 121,048 203,722
Interest expense (98,470) (101,420)
--------- ---------
Pretax earnings 22,578 102,302
Income tax expense (9,168) (34,518)
--------- ---------
Net earnings 13,410 67,784
Less: Preferred stock dividends (12,963) (12,963)
--------- ---------
Earnings available to common
shareholders $447 $54,821
========= =========
Basic and diluted earnings per
common share $0.02 $2.78
========= =========
Weighted average common shares
outstanding:
Basic and diluted 19,350,041 19,740,571
========= =========
SOURCE AMERCO