AMERCO Reports First Quarter Fiscal 2022 Financial Results

RENO, Nev., Aug. 4, 2021 /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, 2021, of $345.2 million, or $17.60 per share, compared with net earnings of $87.7 million, or $4.47 per share, for the same period last year.

"U-Haul is in a much closer game than it looks," stated Joe Shoen, chairman of AMERCO. "Existing and emerging competitors surround our moving and storage business. We have a good team in place. I am working to keep them focused and motivated. My goal is to make U-Haul the customer's best choice."

Highlights of First Quarter Fiscal 2022 Results

• Self-moving equipment rental revenues increased $381.1 million, or 58.2% for the first quarter of fiscal 2022 compared with the first quarter of fiscal 2021. Transactions for both our In-Town and one-way markets increased as did revenue per transaction. One contributing factor to the magnitude of the improvement is the relatively poor results in the first quarter of fiscal 2021 due to the COVID-19 pandemic. Comparing the first quarter of fiscal 2022 to the first quarter of fiscal 2020 revenue still increased $286.8 million. Compared to the same period last year, we increased the number of retail locations, independent dealers, box trucks and towing devices in the rental fleet.
• Self-storage revenues increased $28.4 million, or 26.1% for the first quarter of fiscal 2022 compared with the first quarter of fiscal 2021. The average monthly number of occupied units during the quarter increased by 26%, or 89,373 compared to the same quarter last year. Our reported occupancy of all properties regardless of length of time in the portfolio increased 12% to 80% for the first quarter.  The occupancy ratio for the subset of these properties that have been stabilized at 80% for the last 24 months increased 4% to 97% during the quarter.  Over the last twelve months, we have added approximately 3.5 million net rentable square feet to the self-storage portfolio with approximately 1.1 million square feet of that coming online during the first quarter of fiscal 2022.
• Sales of self-moving and self-storage products and services increased $13.5 million, or 14.8% compared with the first quarter of fiscal 2021 due to increased sales of hitches, moving supplies and propane.
• For the first quarter of fiscal 2022 compared with the first quarter of fiscal 2021, depreciation, net of gains on sales decreased $44.0 million. Depreciation expense on the rental equipment fleet increased $1.7 million to $126.6 million. Net gains on the sales of rental trucks increased $49.3 million from an increase in auction activity as compared to the COVID-19 affected first quarter of fiscal 2021. All other depreciation increased $3.6 million to $45.5 million. Net gains on disposal of real estate increased $4.2 million from a state department of transportation condemnation in the first quarter of fiscal 2022.
• For the first quarter of fiscal 2022 compared with the first quarter of fiscal 2021 gross truck and trailer capital expenditures were approximately $304 million compared with approximately $123 million. Proceeds from sales of rental equipment were $176 million compared with $74 million. Spending on real estate related acquisitions and development were approximately $184 million compared with $103 million, respectively. 
• Fleet maintenance and repair costs increased $33.6 million in the first quarter of fiscal 2022 compared with the same period last year due to preventative maintenance from higher fleet activity combined with additional costs from increased fleet sales activity.
• Operating earnings at our Moving and Storage operating segment increased $331.3 million compared with the same period last year. Total revenues increased $466.9 million and total costs and expenses increased $135.6 million.
• Cash and credit availability at the Moving and Storage segment was $1,543.0 million at June 30, 2021 compared with $1,115.3 million at March 31, 2021.
• We are holding our 15^th Annual Virtual Analyst and Investor meeting on Thursday, August 19, 2021 at 11 a.m. Arizona Time (2 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 2022 on Thursday, August 5, 2021, 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.

About U-Haul
Since 1945, U-Haul has been 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. Our customers' patronage has enabled the U-Haul fleet to grow to approximately 176,000 trucks, 126,000 trailers and 46,000 towing devices. U-Haul is the third largest self-storage operator in North America and offers over 825,000 rentable storage units and 71.6 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.

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, 2021, 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 2022 and 2021.

Listed below are revenues and earnings from operations at each of our operating segments for the first quarter of fiscal 2022 and 2021.

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:

NON-GAAP DISCLOSURE

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 June 30, 2021, the balance of ROU-financing also includes the rental equipment purchased under new financing liability leases during the first quarter. The table below shows adjusted PPE as of June 30, 2021 and March 31, 2021, by including the ROU-financing. The assets included in the ROU-financing is not a true book value as some of the assets are recorded at between 70% and 100% of value based on the lease agreement.

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SOURCE AMERCO