AMERCO Reports Fiscal 2017 Financial Results

RENO, Nev., May 24, 2017 /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, 2017, were $398.4 million, or $20.34 per share, compared with $489.0 million, or $24.95 per share for the same period last year. Included in the results for the year ended March 31, 2017, was an after tax benefit of $0.79 per share associated with our settlement of the PEI litigation that resulted in a reduction in operating expenses of $24.6 million. Excluding this after tax benefit, adjusted earnings were $19.55 per share for the year ended March 31, 2017.

For the quarter ended March 31, 2017, the Company reported net earnings available to shareholders of $9.5 million, or $0.49 per share compared with net earnings of $52.6 million, or $2.68 per share for the same period last year.

"Increased truck depreciation and reduction in gain on sale of trucks are big drivers of the earnings drop for the year," stated Joe Shoen, chairman of AMERCO. "U-Haul Truck Share 24/7 has launched and completed transactions at 3,457 locations.  The implications of this are all good for the truck rental business.  We continue to focus on self-storage and the opportunity in our unrented inventory."

Highlights of Fiscal Year and Fourth Quarter 2017 Results

• Self-moving equipment rental revenues increased $10.2 million or 2.3% in the fourth quarter of fiscal 2017 compared with the fourth quarter of fiscal 2016, and finished the full year up $64.9 million or 2.8% compared with fiscal 2016. The fourth quarter of fiscal 2016 included the additional day in February, which was not included in fiscal 2017. Excluding this from the year-over-year comparison these revenues increased approximately 4.2%. We continued to grow our rental system through the expansion of our distribution network and by increasing the number of trucks, trailers and towing devices available to our customers. Both In-Town and one-way transactions increased compared with fiscal 2016, which resulted in improved revenue results.
• Self-storage revenues increased $9.2 million or 14.0% in the fourth quarter of fiscal 2017 compared with the fourth quarter of fiscal 2016 and for the full year increased $38.9 million or 15.7% compared with fiscal 2016. The average monthly amount of occupied square feet increased by 9.5% during the fourth quarter of fiscal 2017 compared with the same period last year. The growth in revenues and square feet rented comes from a combination of improved occupancy at existing locations as well as the addition of new facilities to the portfolio. Over the last twelve months we have added approximately 3.4 million net rentable square feet to our owned self-storage portfolio with over 1.0 million of that coming on during the fourth quarter.
• Depreciation, net of gains and losses on disposals increased $33.1 million due to additional trucks in the rental fleet, increased costs of acquisition and lower relative sales values in the fourth quarter of fiscal 2017 compared with the same period last year.
• Operating earnings at our Moving and Storage operating segment decreased $62.4 million in the fourth quarter of fiscal 2017 compared with the same period last year. Total revenues climbed $24.1 million and total costs and expenses increased $86.5 million.
• As a result of changes in IRS regulations regarding the capitalization of low value assets, the Company has changed its policy. This shift in procedure results in the immediate recognition of reported operating costs with a lagging decrease in depreciation expense over the term that these assets would have been depreciated. For the fourth quarter of fiscal 2017 this resulted in an additional $6.3 million of operating expenses. This change is expected to benefit the Company through the immediate recognition of tax-deductible costs.
• Combined operating earnings at our Life Insurance segment and our Property and Casualty Insurance segment decreased $0.4 million in the fourth quarter of fiscal 2017 compared with the same period last year.
• Gross truck and trailer capital expenditures for fiscal 2017 were approximately $1,179 million compared with approximately $881 million for fiscal 2016. Proceeds from the sales of rental equipment were approximately $475 million for fiscal 2017 compared with $517 million in fiscal 2016. Spending on real estate related acquisitions and projects decreased approximately $108 million to $484 million in fiscal 2017 compared with fiscal 2016.
• Cash and credit availability at the Moving and Storage operating segment was $804.7 million at March 31, 2017 compared with $633.7 million at March 31, 2016.
• On February 8, 2017, we declared a cash dividend on our Common Stock of $1.00 per share to holders of record on February 23, 2017. The dividend was paid on March 9, 2017.

AMERCO will hold its investor call for fiscal 2017 on Thursday, May 25, 2017, 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, 2017, 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 2017 and 2016.

Listed below are revenues and earnings from operations at each of our operating segments for the fourth quarter and the full year of fiscal 2017 and 2016.

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:

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SOURCE AMERCO