AMERCO Reports Second Quarter Fiscal 2010 Financial Results

Wed Nov 4, 2009 4:54pm EST

* Reuters is not responsible for the content in this press release.

RENO, Nev., Nov. 4 /PRNewswire-FirstCall/ -- AMERCO (Nasdaq: UHAL), parent of
U-Haul International, Inc., North America's largest "do-it-yourself" moving
and storage operator, today reported net earnings available to common
shareholders for its second quarter ending September 30, 2009, of $41.5
million, or $2.14 per share, compared with net earnings of $40.6 million, or
$2.10 per share, for the same period last year.

For the six-month period ending September 30, 2009, net earnings available to
common shareholders were $61.0 million, or $3.15 per share, compared with net
earnings of $67.2 million, or $3.47 per share for the same period last year.

"I am encouraged by our second quarter results," stated Joe Shoen, chairman. 
"We are seeing improving revenues, which combined with our efforts to control
costs, are beginning to positively impact our financial results," concluded
Shoen.

Highlights of Second-Quarter Fiscal 2010 Results
    --  Self-moving equipment rental revenues decreased $12.0 million for the
        second quarter of fiscal 2010 compared with the second quarter of
fiscal
        2009 with the negative variance narrowing through the quarter.
Revenues
        from one-way rentals declined during the quarter and foreign currency
        exchange rates between the Untied States and Canada continued to
        negatively affect revenue.  Total truck rental transactions increased
        for the quarter with growth in both one-way and In-Town activity.
    --  Self-storage revenues decreased $0.5 million for the second quarter of
        fiscal 2010 compared with the same period last year.
    --  For the second quarter of fiscal 2010 the Company reported net gains
        from the disposal of equipment of $3.1 million compared to a net loss
of
        $4.8 million for the second quarter of fiscal 2009 due to the
        improvement in resale values of our used rental equipment.
    --  Operating expenses at the Moving and Storage segment decreased $2.4
        million for the second quarter of fiscal 2010 compared with the second
        quarter of fiscal 2009.
    --  At September 30, 2009 cash, cash equivalents and available credit in
the
        Moving and Storage segment was $393.9 million. Over the next four
        quarters, the Company has maturities and required principal payments
of
        $206.4 million on loans and capital leases that were in place as of
        September 30, 2009.

    --  Truck and trailer capital expenditures for the first six months of
        fiscal 2010 were approximately $185 million compared with $376 million
        for the first six months of fiscal 2009. Proceeds from sales of rental
        equipment increased $20 million to $99 million for the first six
months
        of fiscal 2010 compared with the same period last year.



AMERCO will hold its investor call for the second quarter of fiscal 2010 on
Thursday, November 5, 2009, 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., 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 best 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 398,000 rooms and approximately 35 million
square feet of storage space at nearly 1,090 owned and managed facilities
throughout North America. U-Haul is the consumer's number one choice as the
largest installer of permanent trailer hitches in the automotive aftermarket
industry. U-Haul supplies alternative fuel for vehicles and backyard barbecues
as one of the nation's largest retailers of propane.

U-Haul was founded by a Navy veteran who grew up during the Great Depression.
Tires and gas were still rationed or in short supply during the late 1940s
when U-Haul began serving U.S. customers. Today, that background is central to
the U-Haul Sustainability Program: "Serving the needs of the present without
compromising the ability of future generations to meet their own needs."  Our
commitment to reduce, reuse and recycle includes fuel-efficient moving vans,
neighborhood proximity, moving box reuse, moving pads made from discarded
material and packing peanuts that are 100 percent biodegradable.  Learn more
about these facts and others at www.uhaul.com/sustainability.


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-Q for the quarter ended September 30, 2009, 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 2010 and 2009.


                                               Quarter Ended September 30,
                                               ---------------------------
                                                  2009              2008
                                                  ----              ----
                                                      (Unaudited)
                                                     (In thousands)
    Revenues
      Self-moving equipment rentals            $427,203          $439,244
      Self-storage revenues                      27,412            27,901
      Self-moving & self-storage
       products and service sales                55,522            58,296
      Property management fees                    4,478             4,721
      Life insurance premiums                    28,738            27,099
      Property & casualty insurance premiums      7,046             7,359
      Net investment & interest income           12,539            14,983
      Other revenue                              10,986            11,892
                                                 ------            ------
        Consolidated revenue                   $573,924          $591,495
                                               --------          --------



Listed below are revenues and earnings from operations at each of our
operating segments for the second quarter of fiscal 2010 and 2009. The
insurance companies second quarters ended June 30, 2009 and 2008.


                                               Quarter Ended September 30,
                                               ---------------------------
                                                  2009             2008
                                                  ----             ----
                                                       (Unaudited)
                                                     (In thousands)
    Moving & storage
      Revenues                                 $532,412          $547,978
      Earnings from operations                   93,889            92,850
    Property and casualty insurance
      Revenues                                    8,859             9,685
      Earnings from operations                    1,623             2,195
    Life insurance
      Revenues                                   33,735            34,516
      Earnings from operations                    4,011             5,341
    Eliminations
      Revenues                                   (1,082)             (684)
      Earnings from operations                   (3,705)           (4,864)
    Consolidated results
      Revenues                                  573,924           591,495
      Earnings from operations                   95,818            95,522



The Company owns and manages self-storage facilities. Self-storage revenues
reported in the consolidated financial statements represent Company-owned
locations only. U-Haul also provides property management services for storage
locations and earns a fee for these services. These storage centers are not
owned by the Company and therefore are not reported on the balance sheet and
the rental revenues are not reported in the statements of operations.
Self-storage data for both our owned and managed locations for the second
quarter of fiscal 2010 and 2009 is as follows: 



                                               Quarter Ended September 30,
                                               ---------------------------
                                                   2009             2008
                                                   ----             ----
                                                        (Unaudited)
                                                    (In thousands, except
                                                       occupancy rate)
    Room count as of September 30                   399               391
    Square footage as of September 30            35,163            34,515
    Average number of rooms occupied                313               326
    Average occupancy rate based on room count     78.6%             83.4%
    Average square footage occupied              28,307            29,354



Listed below on a consolidated basis are revenues for our major product lines
for the first six months of fiscal 2010 and 2009.



                                             Six Months Ended September 30,
                                             ------------------------------
                                                 2009              2008
                                                 ----              ----
                                                      (Unaudited)
                                                     (In thousands)
    Revenues
      Self-moving equipment rentals            $800,144          $829,273
      Self-storage revenues                      54,416            55,452
      Self-moving & self-storage
       products and service sales               113,344           120,852
      Property management fees                    8,928             9,437
      Life insurance premiums                    56,342            54,016
      Property & casualty insurance premiums     13,261            13,483
      Net investment & interest income           26,219            29,579
      Other revenue                              21,929            22,197
                                                 ------            ------
        Consolidated revenue                 $1,094,583        $1,134,289
                                             ----------        ----------



Listed below are revenues and earnings from operations at each of our
operating segments for the first six months of fiscal 2010 and 2009. The
insurance companies first six months ended June 30, 2009 and 2008.



                                             Six Months Ended September 30,
                                             ------------------------------
                                                 2009             2008
                                                 ----             ----
                                                       (Unaudited)
                                                     (In thousands)
    Moving & storage
      Revenues                               $1,012,085        $1,049,519
      Earnings from operations                  151,666           162,536
    Property and casualty insurance
      Revenues                                   16,910            18,575
      Earnings from operations                    3,050             4,400
    Life insurance
      Revenues                                   67,607            67,579
      Earnings from operations                    6,589             9,503
    Eliminations
      Revenues                                   (2,019)           (1,384)
      Earnings from operations                   (6,291)           (9,255)
    Consolidated results
      Revenues                                1,094,583         1,134,289
      Earnings from operations                  155,014           167,184



The Company owns and manages self-storage facilities. Self-storage revenues
reported in the consolidated financial statements represent Company-owned
locations only. U-Haul also provides property management services for storage
locations and earns a fee for these services. These storage centers are not
owned by the Company and therefore are not reported on the balance sheet and
the rental revenues are not reported in the statements of operations.
Self-storage data for both our owned and managed locations for the first six
months of fiscal 2010 and 2009 is as follows: 



                                             Six Months Ended September 30,
                                             ------------------------------
                                                   2009             2008
                                                   ----             ----
                                                        (Unaudited)
                                                    (In thousands, except
                                                       occupancy rate)
    Room count as of September 30                   399               391
    Square footage as of September 30            35,163            34,515
    Average number of rooms occupied                310               323
    Average occupancy rate based on room count     78.0%             82.9%
    Average square footage occupied              27,985            29,065





                          AMERCO AND CONSOLIDATED ENTITIES
                       CONDENSED CONSOLIDATED BALANCE SHEETS

                                            September 30,        March 31,
                                                 2009              2009
                                            -------------     --------------
                                             (Unaudited)
                       Assets                        (In thousands)
    Cash and cash equivalents                  $384,951          $240,587
    Reinsurance recoverables and trade
     receivables, net                           201,539           213,853
    Notes and mortgage receivables, net           2,897             2,931
    Inventories, net                             62,071            70,749
    Prepaid expenses                             57,598            54,201
    Investments, fixed maturities
     and marketable equities                    523,400           519,631
    Investments, other                          208,529           227,022
    Deferred policy acquisition costs, net       40,967            44,993
    Other assets                                126,500           133,644
    Related party assets                        296,766           303,534
                                                -------           -------
                                              1,905,218         1,811,145
                                              ---------        
---------Property, plant and equipment, at cost:
      Land                                      223,566           212,744
      Buildings and improvements                944,760           920,294
      Furniture and equipment                   332,937           333,314
      Rental trailers and other rental
       equipment                                235,418           214,988
      Rental trucks                           1,627,140         1,666,151
                                              ---------         ---------
                                              3,363,821         3,347,491
    Less: Accumulated depreciation           (1,339,135)       (1,333,563)
                                             ----------        ----------
      Total property, plant and equipment     2,024,686         2,013,928
                                              ---------         ---------
    Total assets                             $3,929,904        $3,825,073
                                             ==========        ==========

      Liabilities & stockholders' equity

    Liabilities:
      Accounts payable & accrued expenses      $308,988          $329,227
      Notes, loans and leases payable         1,549,425         1,546,490
      Policy benefits & losses, claims
       & loss expenses payable                  793,462           779,309
      Liabilities from investment contracts     280,479           303,332
      Other policyholders' funds &
       liabilities                                8,649            11,961
      Deferred income                            22,826            24,612
      Deferred income taxes                     162,058           112,513
                                                -------           -------
    Total liabilities                         3,125,887         3,107,444
                                              ---------         ---------

    Stockholders' equity:
      Common stock                               10,497            10,497
      Additional paid-in capital                420,029           420,588
      Accumulated other comprehensive loss      (72,627)          (98,000)
      Retained earnings                         976,903           915,862
      Cost of common shares in treasury, net   (525,653)         (525,653)
      Unearned employee stock ownership
       plan shares                               (5,132)           (5,665)
                                                 ------            ------
    Total stockholders' equity                  804,017           717,629
                                                -------           -------
    Total liabilities &
     stockholders' equity                    $3,929,904        $3,825,073
                                             ==========        ==========





                         AMERCO AND CONSOLIDATED ENTITIES
                   CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                              Quarter Ended September 30,
                                                2009               2008
                                                ----               ----
                                                     (Unaudited)
                                            (In thousands, except share and
                                                   per share amounts)
    Revenues:
      Self-moving equipment rentals            $427,203          $439,244
      Self-storage revenues                      27,412            27,901
      Self-moving and self-storage
       products and service sales                55,522            58,296
      Property management fees                    4,478             4,721
      Life insurance premiums                    28,738            27,099
      Property and casualty insurance
       premiums                                   7,046             7,359
      Net investment and interest income         12,539            14,983
      Other revenue                              10,986            11,892
                                                 ------            ------
        Total revenues                          573,924           591,495
                                                -------           -------

    Costs and expenses:
      Operating expenses                        273,730           277,090
      Commission expenses                        51,098            54,082
      Cost of sales                              28,359            32,642
      Benefits and losses                        25,807            24,871
      Amortization of deferred policy
       acquisition costs                          2,296             2,338
      Lease expense                              40,026            38,516
      Depreciation, net of (gains)
       losses on disposals                       56,790            66,434
                                                 ------            ------
        Total costs and expenses                478,106           495,973
                                                -------           -------

    Earnings from operations                     95,818            95,522
      Interest expense                          (23,938)          (24,930)
                                                -------           -------
    Pretax earnings                              71,880            70,592
      Income tax expense                        (27,189)          (26,768)
                                                -------           -------
    Net earnings                                 44,691            43,824
      Excess carrying amount of preferred
       stock over consideration paid                 48                 -
      Less: Preferred stock dividends            (3,212)           (3,241)
                                                 ------            ------
    Earnings available to common
     shareholders                               $41,527           $40,583
                                                =======           =======
    Basic and diluted earnings per
     common share                                 $2.14             $2.10
                                                  =====             =====
    Weighted average common shares
     outstanding:
      Basic and diluted                      19,382,101        19,351,322
                                             ==========        ==========





                          AMERCO AND CONSOLIDATED ENTITIES
                   CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                             Six Months Ended September 30,
                                               2009               2008
                                               ----               ----
                                                     (Unaudited)
                                           (In thousands, except share and
                                                   per share amounts)
    Revenues:
      Self-moving equipment rentals            $800,144          $829,273
      Self-storage revenues                      54,416            55,452
      Self-moving and self-storage
       products and service sales               113,344           120,852
      Property management fees                    8,928             9,437
      Life insurance premiums                    56,342            54,016
      Property and casualty insurance
       premiums                                  13,261            13,483
      Net investment and interest income         26,219            29,579
      Other revenue                              21,929            22,197
                                                 ------            ------
        Total revenues                        1,094,583         1,134,289
                                              ---------         ---------

    Costs and expenses:
      Operating expenses                        532,231           538,803
      Commission expenses                        95,509           102,047
      Cost of sales                              58,809            67,627
      Benefits and losses                        53,501            49,746
      Amortization of deferred policy
       acquisition costs                          4,213             4,426
      Lease expense                              79,299            73,084
      Depreciation, net of (gains)
       losses on disposals                      116,007           131,372
                                                -------           -------
        Total costs and expenses                939,569           967,105
                                                -------           -------

    Earnings from operations                    155,014           167,184
      Interest expense                          (47,159)          (48,774)
                                                -------           -------
    Pretax earnings                             107,855           118,410
      Income tax expense                        (40,732)          (44,760)
                                                -------           -------
    Net earnings                                 67,123            73,650
      Excess carrying amount of preferred
       stock over consideration paid                371                 -
      Less: Preferred stock dividends            (6,453)           (6,482)
                                                 ------            ------
    Earnings available to common
     shareholders                               $61,041           $67,168
                                                =======           =======
    Basic and diluted earnings per
     common share                                 $3.15             $3.47
                                                  =====             =====
    Weighted average common shares
     outstanding:
      Basic and diluted                      19,375,846        19,346,943
                                             ==========        ==========





                            AMERCO AND CONSOLIDATED ENTITIES
                   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                           Six Months Ended September 30,
                                                2009               2008
                                                ----               ----
                                                       (Unaudited)
                                                     (In thousands)
    Cash flow from operating activities:
      Net earnings                              $67,123           $73,650
      Adjustments to reconcile net earnings
       to cash provided by operations:
      Depreciation                              117,779           121,920
      Amortization of deferred policy
       acquisition costs                          4,213             4,426
      Change in allowance for losses on
       trade receivables                            397               (46)
      Change in allowance for losses on
       mortgage notes                                (6)              (20)
      Change in allowance for inventory
       reserves                                   1,344               857
      Net (gain) loss on sale of real and
       personal property                         (1,772)            9,452
      Net (gain) loss on sale of
       investments                                 (401)                1
      Deferred income taxes                      40,431            41,989
      Net change in other operating assets
       and liabilities:
        Reinsurance recoverables and trade
         receivables                             11,917             6,368
        Inventories                               7,334           (12,856)
        Prepaid expenses                         (3,397)           (1,762)
        Capitalization of deferred policy
         acquisition costs                       (6,533)           (4,887)
        Other assets                              7,467             8,315
        Related party assets                      7,481            11,249
        Accounts payable and accrued expenses    (5,893)            1,439
        Policy benefits and losses, claims
         and loss expenses payable               11,991           (12,817)
        Other policyholders' funds and
         liabilities                             (3,311)             (746)
        Deferred income                          (1,946)              539
        Related party liabilities                  (551)           (1,639)
                                                   ----            ------
    Net cash provided by operating
     activities                                 253,667           245,432
                                                -------           -------

    Cash flows from investing activities:
      Purchases of:
        Property, plant and equipment          (187,506)         (224,996)
        Short term investments                 (144,306)         (216,353)
        Fixed maturities investments            (77,106)         (115,124)
        Preferred stock                               -            (2,001)
        Real estate                                (466)             (350)
        Mortgage loans                             (525)           (9,311)
      Proceeds from sale of:
        Property, plant and equipment           100,621            80,805
        Short term investments                  159,307           182,399
        Fixed maturities investments             83,667           173,670
        Equity securities                             -                27
        Preferred stock                           2,236                 -
        Real estate                                   -               704
        Mortgage loans                            4,053             2,822
        Payments from notes and mortgage
         receivables                                464                24
                                                    ---                --
    Net cash used by investing
     activities                                 (59,561)         (127,684)
                                                -------          --------

    Cash flows from financing activities:
        Borrowings from credit facilities        51,921           135,330
        Principal repayments on credit
         facilities                             (72,695)          (74,320)
        Debt issuance costs                        (277)             (360)
        Capital lease payments                   (1,168)             (348)
        Leveraged Employee Stock Ownership
         Plan-repayments from loan                  533               631
        Repurchase of stock                           -              (659)
        Preferred stock dividends paid           (6,453)           (6,482)
        Net dividend from related party               -             2,010
        Investment contract deposits              5,564             9,561
        Investment contract withdrawals         (28,417)          (26,921)
                                                -------           -------
    Net cash provided (used) by
     financing activities                       (50,992)           38,442
                                                -------            ------

      Effects of exchange rate on cash            1,250               318
                                                  -----               ---

    Increase in cash equivalents                144,364           156,508
    Cash and cash equivalents at the
     beginning of period                        240,587           206,622
                                                -------           -------
    Cash and cash equivalents at the end
     of period                                  384,951          $363,130
                                                =======          ========




SOURCE  AMERCO

Jennifer Flachman, Director of Investor Relations of AMERCO, +1-602-263-6601,
Flachman@amerco.com
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