AMERCO REPORTS SECOND QUARTER FISCAL 2023 FINANCIAL RESULTS

RENO, Nev., Nov. 9, 2022 /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, 2022, of $352.0 million, or $17.95 per share, compared with net earnings of $409.9 million, or $20.90 per share, for the same period last year.

For the six-month period ended September 30, 2022, net earnings available to shareholders were $686.0 million, or $34.99 per share, compared with net earnings of $755.1 million, or $38.51 per share, for the same period last year.

“Our customers face the same challenges we all hear about in the media every day. The public is stressed. We aim to be their best choice when they need our products and services,” stated Joe Shoen, chairman of AMERCO. “The Company recently announced several corporate actions reflecting feedback from shareholders. I am excited by the potential positive impact these decisions will have on all constituents of the Company.”

Highlights of Second Quarter Fiscal 2023 Results

  • Self-moving equipment rental revenues decreased $17.0 million or 1% during the second quarter of fiscal 2023, compared with the second quarter of fiscal 2022. Transactions and revenue for In-Town business increased but were offset by declines in one-way business.  Compared to the same period last year, we increased the number of retail locations, independent dealers, trucks, and trailers in the rental fleet.
  • Self-storage revenues increased $32.1 million or 21% during the second quarter of fiscal 2023, compared with the second quarter of fiscal 2022.  The average monthly number of occupied units increased by 64,500 units, during the second quarter of fiscal 2023 compared with the same period last year.  Occupancy for all locations increased 1.1% to 85.4% 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 96.1%. 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 5.4 million net rentable square feet, an increase of 1.5 million from this time last year.   
  • For the second quarter of fiscal 2023 compared with the second quarter of fiscal 2022, depreciation, net of gains and losses on sales decreased $18.4 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 $28.3 million from higher resale values. All other depreciation, primarily real estate related, increased $6.0 million.
  • For the first six months of fiscal 2023 and fiscal 2022 gross rental equipment capital expenditures were approximately $718 million compared with $564 million, proceeds from the sales of rental equipment were $325 million compared with $300 million and spending on real estate related acquisitions and projects were approximately $584 million compared with $444 million.
  • Fleet maintenance and repair costs increased $33.7 million in the second quarter of fiscal 2023 compared with the same period last year due to preventative maintenance resulting from higher fleet activity combined with the slower rotation of new equipment into the fleet and older equipment out of the fleet.   
  • Operating earnings at our Moving and Storage operating segment decreased $41.0 million in the second quarter of fiscal 2023 compared with the same period last year. Total revenues climbed $59.9 million and total costs and expenses increased $100.9 million.
  • Cash and credit availability at the Moving and Storage operating segment was $3,175.4 million as of September 30, 2022 compared with $2,723.2 million as of March 31, 2022. 

Corporate Actions

After the quarter-end, the Company announced several corporate actions taken by an Independent Special Committee of its Board of Directors. This included changing the name of AMERCO to U-Haul Holding Company, the creation of a class of non-voting common stock, and a 9-for-1 dividend of these shares to all existing AMERCO shareholders of record as of November 3, 2022. The Company anticipates trading of the 176,470,092 shares of non-voting common (Nasdaq: UHALB) to begin on November 10, 2022. Subsequently, the Board announced a regular dividend policy for the new class of shares of $0.04 per share per quarter.

AMERCO will hold its investor call for the second quarter of fiscal 2023 on Thursday, November 10, 2022, at 8 a.m. Arizona Time (10 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. AMERCO will change its name to U-Haul Holding Company by the end of calendar year 2022.

About U-Haul

Founded in 1945, U-Haul is 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. U-Haul Truck Share 24/7 offers secure access to U-Haul trucks every hour of every day through the customer dispatch option on their smartphones and our proprietary Live Verify technology. Our customers’ patronage has enabled the  U-Haul fleet to grow to approximately 186,000 trucks, 128,000 trailers and 46,000 towing devices.   U-Haul is the third largest self-storage operator in North America and offers over 913,000 rentable storage units and 78.1 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. U-Haul has been recognized repeatedly as a leading “Best for Vets” employer and was recently named one of the 15 Healthiest Workplaces in America. 

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, 2022, 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 2023 and 2022.



Quarter Ended September 30,



2022


2021



(Unaudited)



(In thousands)

Self-moving equipment rentals

$

1,162,025

$

1,179,061

Self-storage revenues


185,586


153,485

Self-moving and self-storage product and service sales


96,864


92,191

Property management fees


9,277


8,747

Life insurance premiums


25,456


28,913

Property and casualty insurance premiums


25,718


22,499

Net investment and interest income


30,509


36,780

Other revenue


167,429


142,578

Consolidated revenue

$

1,702,864

$

1,664,254






Listed below are revenues and earnings from operations at each of our operating segments for the second quarter of fiscal 2023 and 2022.



Quarter Ended September 30,



2022


2021



(Unaudited)



(In thousands)

Moving and storage





Revenues

$

1,636,858

$

1,576,999

Earnings from operations before equity in earnings of subsidiaries


514,943


555,988

Property and casualty insurance 





Revenues


23,363


29,539

Earnings from operations


5,686


15,189

Life insurance  





Revenues


45,696


60,985

Earnings from operations


1,852


7,913

Eliminations





Revenues


(3,053)


(3,269)

Earnings from operations before equity in earnings of subsidiaries


(386)


(389)

Consolidated Results





Revenues


1,702,864


1,664,254

Earnings from operations


522,095


578,701

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:



Quarter Ended September 30,



2022


2021



(Unaudited)



(In thousands, except occupancy rate)

Unit count as of September 30


638


568

Square footage as of September 30


53,303


47,903

Average monthly number of units occupied


540


476

Average monthly occupancy rate based on unit count


85.4 %


84.3 %

Average monthly square footage occupied


46,538


41,743

Listed below on a consolidated basis are revenues for our major product lines for the first six months of fiscal 2023 and 2022.



Six Months Ended September 30,



2022


2021



(Unaudited)



(In thousands)

Self-moving equipment rentals

$

2,252,800

$

2,214,438

Self-storage revenues


358,763


290,878

Self-moving and self-storage product and service sales


206,215


197,076

Property management fees


18,416


17,196

Life insurance premiums


51,237


57,618

Property and casualty insurance premiums


45,690


39,368

Net investment and interest income


64,082


71,779

Other revenue


303,501


248,757

Consolidated revenue

$

3,300,704

$

3,137,110

Listed below are revenues and earnings from operations at each of our operating segments for the first six months of fiscal 2023 and 2022.



Six Months Ended September 30,



2022


2021



(Unaudited)



(In thousands)

Moving and storage





Revenues


3,160,456


2,970,253

Earnings from operations before equity in earnings of subsidiaries


996,560


1,038,983

Property and casualty insurance 





Revenues


46,445


52,995

Earnings from operations


14,037


24,421

Life insurance  





Revenues


99,799


119,644

Earnings from operations


3,425


10,279

Eliminations





Revenues


(5,996)


(5,782)

Earnings from operations before equity in earnings of subsidiaries


(768)


(774)

Consolidated Results





Revenues


3,300,704


3,137,110

Earnings from operations


1,013,254


1,072,909

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:



Six Months Ended September 30,



2022


2021



(Unaudited)



(In thousands, except occupancy rate)

Unit count as of September 30


638


568

Square footage as of September 30


53,303


47,903

Average monthly number of units occupied


529


456

Average monthly occupancy rate based on unit count


85.0 %


82.1 %

Average monthly square footage occupied


45,692


40,207

AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED BALANCE SHEETS




September 30,


March 31,



2022


2022



(Unaudited)





(In thousands)

ASSETS





Cash and cash equivalents

$

3,065,115

$

2,704,137

Reinsurance recoverables and trade receivables, net


203,202


229,343

Inventories and parts, net


166,136


158,888

Prepaid expenses


236,035


236,915

Investments, fixed maturities and marketable equities


2,615,758


2,893,399

Investments, other


548,198


543,755

Deferred policy acquisition costs, net


146,778


103,828

Other assets


47,900


60,409

Right of use assets – financing, net


529,000


620,824

Right of use assets – operating, net


68,208


74,382

Related party assets


48,337


47,851



7,674,667


7,673,731

Property, plant and equipment, at cost:





   Land


1,427,781


1,283,142

   Buildings and improvements


6,390,317


5,974,639

   Furniture and equipment


876,515


846,132

   Rental trailers and other rental equipment


727,953


615,679

   Rental trucks


5,087,235


4,638,814



14,509,801


13,358,406

Less: Accumulated depreciation


(4,041,125)


(3,732,556)

   Total property, plant and equipment, net


10,468,676


9,625,850

Total assets

$

18,143,343

$

17,299,581

LIABILITIES AND STOCKHOLDERS’ EQUITY





Liabilities:





   Accounts payable and accrued expenses

$

706,402

$

677,785

   Notes, loans and finance leases payable, net


6,298,831


6,022,497

   Operating lease liabilities


67,858


74,197

   Policy benefits and losses, claims and loss expenses payable


990,233


978,254

   Liabilities from investment contracts


2,390,028


2,336,238

   Other policyholders’ funds and liabilities


12,126


10,812

   Deferred income


56,871


49,157

   Deferred income taxes, net


1,307,807


1,265,358

Total liabilities


11,830,156


11,414,298






Common stock


10,497


10,497

Additional paid-in capital


453,819


453,819

Accumulated other comprehensive income (loss)


(192,121)


46,384

Retained earnings


6,718,642


6,052,233

Cost of common stock in treasury, net


(525,653)


(525,653)

Cost of preferred stock in treasury, net


(151,997)


(151,997)

Total stockholders’ equity


6,313,187


5,885,283

Total liabilities and stockholders’ equity

$

18,143,343

$

17,299,581

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




Quarter Ended September 30,



2022


2021



(Unaudited)



(In thousands, except share and per share data)

Revenues:





Self-moving equipment rentals

$

1,162,025

$

1,179,061

Self-storage revenues


185,586


153,485

Self-moving and self-storage products and service sales


96,864


92,191

Property management fees


9,277


8,747

Life insurance premiums


25,456


28,913

Property and casualty insurance premiums


25,718


22,499

Net investment and interest income


30,509


36,780

Other revenue


167,429


142,578

     Total revenues


1,702,864


1,664,254






Costs and expenses:





Operating expenses


811,594


696,074

Commission expenses


125,341


127,896

Cost of sales


72,625


66,491

Benefits and losses


37,363


44,630

Amortization of deferred policy acquisition costs


6,972


6,750

Lease expense


7,684


7,441

Depreciation, net of gains on disposals


117,318


135,748

Net losses on real estate


1,872


523

     Total costs and expenses


1,180,769


1,085,553






Earnings from operations


522,095


578,701

Other components of net periodic benefit costs


(304)


(280)

Interest expense


(57,193)


(39,545)

Fess on early extinguishment of debt


(959)


Pretax earnings


463,639


538,876

Income tax expense


(111,624)


(128,978)

Earnings available to common shareholders

$

352,015

$

409,898

Basic and diluted earnings per common share

$

17.95

$

20.90

Weighted average common shares outstanding: Basic and diluted


19,607,788


19,607,788

AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




Six Months Ended September 30,



2022


2021



(Unaudited)



(In thousands, except share and per share data)

Revenues:





Self-moving equipment rentals

$

2,252,800

$

2,214,438

Self-storage revenues


358,763


290,878

Self-moving and self-storage products and service sales


206,215


197,076

Property management fees


18,416


17,196

Life insurance premiums


51,237


57,618

Property and casualty insurance premiums


45,690


39,368

Net investment and interest income


64,082


71,779

Other revenue


303,501


248,757

     Total revenues


3,300,704


3,137,110






Costs and expenses:





Operating expenses


1,544,761


1,310,603

Commission expenses


243,834


241,045

Cost of sales


152,296


136,406

Benefits and losses


81,463


91,928

Amortization of deferred policy acquisition costs


14,644


15,573

Lease expense


15,159


15,088

Depreciation, net of gains on disposals


231,114


257,465

Net (gains) losses on real estate


4,179


(3,907)

     Total costs and expenses


2,287,450


2,064,201






Earnings from operations


1,013,254


1,072,909

Other components of net periodic benefit costs


(608)


(560)

Interest expense


(106,992)


(78,723)

Fess on early extinguishment of debt


(959)


Pretax earnings


904,695


993,626

Income tax expense


(218,678)


(238,553)

Earnings available to common shareholders

$

686,017


755,073

Basic and diluted earnings per common share

$

34.99

$

38.51

Weighted average common shares outstanding: Basic and diluted


19,607,788


19,607,788

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, 2022, the balance of ROU-financing also includes the rental equipment purchased under new financing liability leases during fiscal 2023. The tables below show adjusted PPE as of September 30, 2022 and March 31, 2022, 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 non-GAAP measure is intended as a supplemental measure of our balance sheet that is neither required by, nor presented in accordance with, GAAP.  We believe that the use of this non-GAAP measure provides an additional tool for investors to use in evaluating our financial condition. This non-GAAP measure should not be considered in isolation or as a substitute for other measures calculated in accordance with GAAP.







September 30,


March 31,








2022


2022




September 30,


ROU Assets


Property, Plant

and Equipment


Property,

Plant and

Equipment




2022


Financing


Adjusted


Adjusted




(Unaudited)




(In thousands)











Property, plant and equipment, at cost










Land

$

1,427,781

$

$

1,427,781

$

1,283,142


Buildings and improvements


6,390,317



6,390,317


5,974,639


Furniture and equipment


876,515


14,731


891,246


860,863


Rental trailers and other rental equipment


727,953


153,020


880,973


785,193


Rental trucks


5,087,235


996,946


6,084,181


5,753,062


Right-of-use assets, gross


14,509,801


1,164,697


15,674,498


14,656,899


Less: Accumulated depreciation


(4,041,125)


(635,697)


(4,676,822)


(4,410,225)


Total property, plant and equipment, net

$

10,468,676

$

529,000

$

10,997,676

$

10,246,674








March 31,







2022



March 31,


ROU

Assets


Property, Plant

and Equipment



2022


Financing


Adjusted



(Unaudited)



(In thousands)

Property, plant and equipment, at cost







Land

$

1,283,142

$

$

1,283,142

Buildings and improvements


5,974,639



5,974,639

Furniture and equipment


846,132


14,731


860,863

Rental trailers and other rental equipment


615,679


169,514


785,193

Rental trucks


4,638,814


1,114,248


5,753,062

Right-of-use assets, gross


13,358,406


1,298,493


14,656,899

Less: Accumulated depreciation


(3,732,556)


(677,669)


(4,410,225)

Total property, plant and equipment, net

$

9,625,850

$

620,824

$

10,246,674

SOURCE AMERCO


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