AMERCO Reports Second Quarter Fiscal 2020 Financial Results

Published

RENO, Nev., Nov. 6, 2019 /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, 2019, of $156.3 million, or $7.97 per share, compared with net earnings of $163.5 million, or $8.35 per share, for the same period last year.

For the six-month period ended September 30, 2019, net earnings available to shareholders were $288.7 million, or $14.73 per share, compared with net earnings of $291.4 million, or $14.87 per share, for the same period last year.

"We continued to fill self-storage rooms during the quarter while also adding new locations to the portfolio," stated Joe Shoen, chairman of AMERCO. "Growth in the fleet has led to additional depreciation and maintenance costs. We have not realized the truck and trailer revenue we expected from this investment. I am working to resolve this, but improvement will likely come slowly."

Highlights of Second Quarter Fiscal 2020 Results

  • Self-moving equipment rental revenues increased $22.6 million or 3% during the second quarter of fiscal 2020, compared with the second quarter of fiscal 2019 from improvements in both One-way and in-town markets. Compared with the same period last year, we increased the number of Company-owned locations, along with trucks, trailers and towing devices in the rental fleet.
  • Self-storage revenues increased $13.5 million during the second quarter of fiscal 2020, compared with the second quarter of fiscal 2019. The average monthly amount of occupied units increased by 17%, or 47,000 units during the second quarter of fiscal 2020 compared with the same period last year. The growth in revenues comes from a combination of occupancy gains at existing locations and the addition of new facilities to the portfolio. Over the last twelve months, we have added approximately 6.1 million net rentable square feet, or an 18% increase to our owned self-storage portfolio with 1.5 million of that coming on during the second quarter.
  • For the second quarter of fiscal 2020 compared with the second quarter of fiscal 2019, depreciation, net of gains and losses on sales increased $18.9 million. Depreciation expense on the rental equipment fleet increased $17.1 million primarily due to a larger fleet while gains on the sales of rental trucks increased $6.0 million. All other depreciation increased $7.8 million from the increase in new moving and storage locations.
  • For the first six months of fiscal 2020 and fiscal 2019 gross truck and trailer capital expenditures were approximately $1,037 million compared with $787 million, proceeds from the sales of rental equipment were $397 million compared with $428 million and spending on real estate related acquisitions and projects were approximately $423 million compared with $481 million.
  • Fleet maintenance and repair costs increased $3.9 million in the second quarter of fiscal 2020 compared with the same period last year.
  • Operating earnings at our Moving and Storage operating segment decreased $6.9 million in the second quarter of fiscal 2020 compared with the same period last year. Total revenues climbed $42.6 million and total costs and expenses increased $49.5 million.
  • Cash and credit availability at the Moving and Storage operating segment was $559.0 million at September 30, 2019 compared with $724.5 million at March 31, 2019.
  • On August 22, 2019, we declared a cash dividend on our Common Stock of $0.50 per share to holders of record on September 9, 2019. The dividend was paid on September 23, 2019.

AMERCO will hold its investor call for the second quarter of fiscal 2020 on Thursday, November 7, 2019, 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 AMERCOAMERCO 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-Q for the quarter ended September 30, 2019, 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 2020 and 2019.

Quarter Ended September 30,
2019 2018
(Unaudited)
(In thousands)
Self-moving equipment rentals $ 804,325 $ 781,713
Self-storage revenues 104,965 91,493
Self-moving and self-storage product and service sales 73,121 72,913
Property management fees 7,233 7,192
Life insurance premiums 32,355 35,920
Property and casualty insurance premiums 18,365 16,283
Net investment and interest income 33,098 28,227
Other revenue 76,752 70,766
Consolidated revenue $ 1,150,214 $ 1,104,507

Listed below are revenues and earnings from operations at each of our operating segments for the second quarter of fiscal 2020 and 2019.

Quarter Ended September 30, Quarter Ended September 30,
2019 2018 2019 2018
(Unaudited) (Unaudited)
(In thousands) (In thousands)
Self-moving equipment rentals $ 804,325 $ 781,713 Moving and storage
Self-storage revenues 104,965 91,493 Revenues $ 1,069,552 $ 1,026,934
Self-moving and self-storage product and service sales 73,121 72,913 Earnings from operations before equity in earnings of subsidiaries 228,987 235,874
Property management fees 7,233 7,192 Property and casualty insurance 
Life insurance premiums 32,355 35,920 Revenues 23,528 20,522
Property and casualty insurance premiums 18,365 16,283 Earnings from operations 9,092 7,859
Net investment and interest income 33,098 28,227 Life insurance  
Other revenue 76,752 70,766 Revenues 59,859 59,612
Consolidated revenue $ 1,150,214 $ 1,104,507 Earnings from operations 6,941 7,502
Eliminations
Revenues (2,725) (2,561)
Earnings from operations before equity in earnings of subsidiaries (280) (291)
Consolidated Results
Revenues 1,150,214 1,104,507
Earnings from operations 244,740 250,944

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, Quarter Ended September 30, Quarter Ended September 30,
2019 2018 2019 2018 2019 2018
(Unaudited) (Unaudited) (Unaudited)
(In thousands) (In thousands) (In thousands, except occupancy rate)
Self-moving equipment rentals $ 804,325 $ 781,713 Moving and storage Unit count as of September 30 471 398
Self-storage revenues 104,965 91,493 Revenues $ 1,069,552 $ 1,026,934 Square footage as of September 30 39,629 33,553
Self-moving and self-storage product and service sales 73,121 72,913 Earnings from operations before equity in earnings of subsidiaries 228,987 235,874 Average monthly number of units occupied 323 276
Property management fees 7,233 7,192 Property and casualty insurance  Average monthly occupancy rate based on unit count 69.5% 70.6%
Life insurance premiums 32,355 35,920 Revenues 23,528 20,522 Average monthly square footage occupied 29,200 24,867
Property and casualty insurance premiums 18,365 16,283 Earnings from operations 9,092 7,859
Net investment and interest income 33,098 28,227 Life insurance  
Other revenue 76,752 70,766 Revenues 59,859 59,612
Consolidated revenue $ 1,150,214 $ 1,104,507 Earnings from operations 6,941 7,502
Eliminations
Revenues (2,725) (2,561)
Earnings from operations before equity in earnings of subsidiaries (280) (291)
Consolidated Results
Revenues 1,150,214 1,104,507
Earnings from operations 244,740 250,944

Listed below on a consolidated basis are revenues for our major product lines for the first six months of fiscal 2020 and 2019.

Quarter Ended September 30, Quarter Ended September 30, Quarter Ended September 30, Six Months Ended September 30,
2019 2018 2019 2018 2019 2018 2019 2018
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
(In thousands) (In thousands) (In thousands, except occupancy rate) (In thousands)
Self-moving equipment rentals $ 804,325 $ 781,713 Moving and storage Unit count as of September 30 471 398 Self-moving equipment rentals $ 1,552,921 $ 1,498,315
Self-storage revenues 104,965 91,493 Revenues $ 1,069,552 $ 1,026,934 Square footage as of September 30 39,629 33,553 Self-storage revenues 203,239 177,705
Self-moving and self-storage product and service sales 73,121 72,913 Earnings from operations before equity in earnings of subsidiaries 228,987 235,874 Average monthly number of units occupied 323 276 Self-moving and self-storage product and service sales 153,147 152,154
Property management fees 7,233 7,192 Property and casualty insurance  Average monthly occupancy rate based on unit count 69.5% 70.6% Property management fees 14,389 14,608
Life insurance premiums 32,355 35,920 Revenues 23,528 20,522 Average monthly square footage occupied 29,200 24,867 Life insurance premiums 65,065 72,808
Property and casualty insurance premiums 18,365 16,283 Earnings from operations 9,092 7,859 Property and casualty insurance premiums 31,789 29,064
Net investment and interest income 33,098 28,227 Life insurance   Net investment and interest income 68,847 52,832
Other revenue 76,752 70,766 Revenues 59,859 59,612 Other revenue 140,066 126,598
Consolidated revenue $ 1,150,214 $ 1,104,507 Earnings from operations 6,941 7,502 Consolidated revenue $ 2,229,463 $ 2,124,084
Eliminations
Revenues (2,725) (2,561)
Earnings from operations before equity in earnings of subsidiaries (280) (291)
Consolidated Results
Revenues 1,150,214 1,104,507
Earnings from operations 244,740 250,944

Listed below are revenues and earnings from operations at each of our operating segments for the first six months of fiscal 2020 and 2019.

Quarter Ended September 30, Quarter Ended September 30, Quarter Ended September 30, Six Months Ended September 30, Six Months Ended September 30,
2019 2018 2019 2018 2019 2018 2019 2018 2019 2018
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
(In thousands) (In thousands) (In thousands, except occupancy rate) (In thousands) (In thousands)
Self-moving equipment rentals $ 804,325 $ 781,713 Moving and storage Unit count as of September 30 471 398 Self-moving equipment rentals $ 1,552,921 $ 1,498,315 Moving and storage
Self-storage revenues 104,965 91,493 Revenues $ 1,069,552 $ 1,026,934 Square footage as of September 30 39,629 33,553 Self-storage revenues 203,239 177,705 Revenues 2,069,950 1,974,819
Self-moving and self-storage product and service sales 73,121 72,913 Earnings from operations before equity in earnings of subsidiaries 228,987 235,874 Average monthly number of units occupied 323 276 Self-moving and self-storage product and service sales 153,147 152,154 Earnings from operations before equity in earnings of subsidiaries 430,883 436,269
Property management fees 7,233 7,192 Property and casualty insurance  Average monthly occupancy rate based on unit count 69.5% 70.6% Property management fees 14,389 14,608 Property and casualty insurance 
Life insurance premiums 32,355 35,920 Revenues 23,528 20,522 Average monthly square footage occupied 29,200 24,867 Life insurance premiums 65,065 72,808 Revenues 43,833 36,411
Property and casualty insurance premiums 18,365 16,283 Earnings from operations 9,092 7,859 Property and casualty insurance premiums 31,789 29,064 Earnings from operations 17,558 10,572
Net investment and interest income 33,098 28,227 Life insurance   Net investment and interest income 68,847 52,832 Life insurance  
Other revenue 76,752 70,766 Revenues 59,859 59,612 Other revenue 140,066 126,598 Revenues 120,180 117,475
Consolidated revenue $ 1,150,214 $ 1,104,507 Earnings from operations 6,941 7,502 Consolidated revenue $ 2,229,463 $ 2,124,084 Earnings from operations 10,722 9,383
Eliminations Eliminations
Revenues (2,725) (2,561) Revenues (4,500) (4,621)
Earnings from operations before equity in earnings of subsidiaries (280) (291) Earnings from operations before equity in earnings of subsidiaries (558) (576)
Consolidated Results Consolidated Results
Revenues 1,150,214 1,104,507 Revenues 2,229,463 2,124,084
Earnings from operations 244,740 250,944 Earnings from operations 458,605 455,648

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, Quarter Ended September 30, Quarter Ended September 30, Six Months Ended September 30, Six Months Ended September 30, Six Months Ended September 30,
2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
(In thousands) (In thousands) (In thousands, except occupancy rate) (In thousands) (In thousands) (In thousands, except occupancy rate)
Self-moving equipment rentals $ 804,325 $ 781,713 Moving and storage Unit count as of September 30 471 398 Self-moving equipment rentals $ 1,552,921 $ 1,498,315 Moving and storage Unit count as of September 30 471 398
Self-storage revenues 104,965 91,493 Revenues $ 1,069,552 $ 1,026,934 Square footage as of September 30 39,629 33,553 Self-storage revenues 203,239 177,705 Revenues 2,069,950 1,974,819 Square footage as of September 30 39,629 33,553
Self-moving and self-storage product and service sales 73,121 72,913 Earnings from operations before equity in earnings of subsidiaries 228,987 235,874 Average monthly number of units occupied 323 276 Self-moving and self-storage product and service sales 153,147 152,154 Earnings from operations before equity in earnings of subsidiaries 430,883 436,269 Average monthly number of units occupied 313 269
Property management fees 7,233 7,192 Property and casualty insurance  Average monthly occupancy rate based on unit count 69.5% 70.6% Property management fees 14,389 14,608 Property and casualty insurance  Average monthly occupancy rate based on unit count 69.0% 70.1%
Life insurance premiums 32,355 35,920 Revenues 23,528 20,522 Average monthly square footage occupied 29,200 24,867 Life insurance premiums 65,065 72,808 Revenues 43,833 36,411 Average monthly square footage occupied 28,310 24,266
Property and casualty insurance premiums 18,365 16,283 Earnings from operations 9,092 7,859 Property and casualty insurance premiums 31,789 29,064 Earnings from operations 17,558 10,572
Net investment and interest income 33,098 28,227 Life insurance   Net investment and interest income 68,847 52,832 Life insurance  
Other revenue 76,752 70,766 Revenues 59,859 59,612 Other revenue 140,066 126,598 Revenues 120,180 117,475
Consolidated revenue $ 1,150,214 $ 1,104,507 Earnings from operations 6,941 7,502 Consolidated revenue $ 2,229,463 $ 2,124,084 Earnings from operations 10,722 9,383
Eliminations Eliminations
Revenues (2,725) (2,561) Revenues (4,500) (4,621)
Earnings from operations before equity in earnings of subsidiaries (280) (291) Earnings from operations before equity in earnings of subsidiaries (558) (576)
Consolidated Results Consolidated Results
Revenues 1,150,214 1,104,507 Revenues 2,229,463 2,124,084
Earnings from operations 244,740 250,944 Earnings from operations 458,605 455,648

 

Quarter Ended September 30, Quarter Ended September 30, Quarter Ended September 30, Six Months Ended September 30, Six Months Ended September 30, Six Months Ended September 30, AMERCO AND CONSOLIDATED ENTITIES
2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
(In thousands) (In thousands) (In thousands, except occupancy rate) (In thousands) (In thousands) (In thousands, except occupancy rate) September 30, March 31,
Self-moving equipment rentals $ 804,325 $ 781,713 Moving and storage Unit count as of September 30 471 398 Self-moving equipment rentals $ 1,552,921 $ 1,498,315 Moving and storage Unit count as of September 30 471 398 2019 2019
Self-storage revenues 104,965 91,493 Revenues $ 1,069,552 $ 1,026,934 Square footage as of September 30 39,629 33,553 Self-storage revenues 203,239 177,705 Revenues 2,069,950 1,974,819 Square footage as of September 30 39,629 33,553 (Unaudited)
Self-moving and self-storage product and service sales 73,121 72,913 Earnings from operations before equity in earnings of subsidiaries 228,987 235,874 Average monthly number of units occupied 323 276 Self-moving and self-storage product and service sales 153,147 152,154 Earnings from operations before equity in earnings of subsidiaries 430,883 436,269 Average monthly number of units occupied 313 269 (In thousands)
Property management fees 7,233 7,192 Property and casualty insurance  Average monthly occupancy rate based on unit count 69.5% 70.6% Property management fees 14,389 14,608 Property and casualty insurance  Average monthly occupancy rate based on unit count 69.0% 70.1% ASSETS
Life insurance premiums 32,355 35,920 Revenues 23,528 20,522 Average monthly square footage occupied 29,200 24,867 Life insurance premiums 65,065 72,808 Revenues 43,833 36,411 Average monthly square footage occupied 28,310 24,266 Cash and cash equivalents $ 525,231 $ 673,701
Property and casualty insurance premiums 18,365 16,283 Earnings from operations 9,092 7,859 Property and casualty insurance premiums 31,789 29,064 Earnings from operations 17,558 10,572 Reinsurance recoverables and trade receivables, net 222,481 224,785
Net investment and interest income 33,098 28,227 Life insurance   Net investment and interest income 68,847 52,832 Life insurance   Inventories and parts, net 102,357 103,504
Other revenue 76,752 70,766 Revenues 59,859 59,612 Other revenue 140,066 126,598 Revenues 120,180 117,475 Prepaid expenses 194,250 174,100
Consolidated revenue $ 1,150,214 $ 1,104,507 Earnings from operations 6,941 7,502 Consolidated revenue $ 2,229,463 $ 2,124,084 Earnings from operations 10,722 9,383 Investments, fixed maturities and marketable equities 2,413,350 2,235,397
Eliminations Eliminations Investments, other 320,992 300,736
Revenues (2,725) (2,561) Revenues (4,500) (4,621) Deferred policy acquisition costs, net 111,708 136,276
Earnings from operations before equity in earnings of subsidiaries (280) (291) Earnings from operations before equity in earnings of subsidiaries (558) (576) Other assets 72,432 78,354
Consolidated Results Consolidated Results Right of use assets – financing, net 1,185,629 -
Revenues 1,150,214 1,104,507 Revenues 2,229,463 2,124,084 Right of use assets – operating 105,298 -
Earnings from operations 244,740 250,944 Earnings from operations 458,605 455,648 Related party assets 12,902 30,889
5,266,630 3,957,742
Property, plant and equipment, at cost:
   Land 1,016,918 976,454
   Buildings and improvements 4,371,637 4,003,726
   Furniture and equipment 716,287 689,780
   Rental trailers and other rental equipment 495,264 590,039
   Rental trucks 3,560,034 4,762,028
10,160,140 11,022,027
Less: Accumulated depreciation (2,570,568) (3,088,056)
   Total property, plant and equipment 7,589,572 7,933,971
Total assets $ 12,856,202 $ 11,891,713
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
   Accounts payable and accrued expenses $ 546,260 $ 556,873
   Notes, loans and leases payable, net 4,497,912 4,163,323
   Operating lease liability 104,832 -
   Policy benefits and losses, claims and loss expenses payable 1,022,134 1,011,183
   Liabilities from investment contracts 1,720,995 1,666,742
   Other policyholders' funds and liabilities 10,911 15,047
   Deferred income 35,926 35,186
   Deferred income taxes, net 859,164 750,970
Total liabilities 8,798,134 8,199,324
Common stock 10,497 10,497
Additional paid-in capital 453,761 453,326
Accumulated other comprehensive income (loss) 17,151 (66,698)
Retained earnings 4,255,906 3,976,962
Cost of common shares in treasury, net (525,653) (525,653)
Cost of preferred shares in treasury, net (151,997) (151,997)
Unearned employee stock ownership plan shares (1,597) (4,048)
Total stockholders' equity 4,058,068 3,692,389
Total liabilities and stockholders' equity $ 12,856,202 11,891,713

 

Quarter Ended September 30, Quarter Ended September 30, Quarter Ended September 30, Six Months Ended September 30, Six Months Ended September 30, Six Months Ended September 30, AMERCO AND CONSOLIDATED ENTITIES AMERCO AND CONSOLIDATED ENTITIES
2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
(In thousands) (In thousands) (In thousands, except occupancy rate) (In thousands) (In thousands) (In thousands, except occupancy rate) September 30, March 31, Quarter Ended September 30,
Self-moving equipment rentals $ 804,325 $ 781,713 Moving and storage Unit count as of September 30 471 398 Self-moving equipment rentals $ 1,552,921 $ 1,498,315 Moving and storage Unit count as of September 30 471 398 2019 2019 2019 2018
Self-storage revenues 104,965 91,493 Revenues $ 1,069,552 $ 1,026,934 Square footage as of September 30 39,629 33,553 Self-storage revenues 203,239 177,705 Revenues 2,069,950 1,974,819 Square footage as of September 30 39,629 33,553 (Unaudited) (Unaudited)
Self-moving and self-storage product and service sales 73,121 72,913 Earnings from operations before equity in earnings of subsidiaries 228,987 235,874 Average monthly number of units occupied 323 276 Self-moving and self-storage product and service sales 153,147 152,154 Earnings from operations before equity in earnings of subsidiaries 430,883 436,269 Average monthly number of units occupied 313 269 (In thousands) (In thousands, except share and per share data)
Property management fees 7,233 7,192 Property and casualty insurance  Average monthly occupancy rate based on unit count 69.5% 70.6% Property management fees 14,389 14,608 Property and casualty insurance  Average monthly occupancy rate based on unit count 69.0% 70.1% ASSETS Revenues:
Life insurance premiums 32,355 35,920 Revenues 23,528 20,522 Average monthly square footage occupied 29,200 24,867 Life insurance premiums 65,065 72,808 Revenues 43,833 36,411 Average monthly square footage occupied 28,310 24,266 Cash and cash equivalents $ 525,231 $ 673,701 Self-moving equipment rentals $ 804,325 $ 781,713
Property and casualty insurance premiums 18,365 16,283 Earnings from operations 9,092 7,859 Property and casualty insurance premiums 31,789 29,064 Earnings from operations 17,558 10,572 Reinsurance recoverables and trade receivables, net 222,481 224,785 Self-storage revenues 104,965 91,493
Net investment and interest income 33,098 28,227 Life insurance   Net investment and interest income 68,847 52,832 Life insurance   Inventories and parts, net 102,357 103,504 Self-moving and self-storage products and service sales 73,121 72,913
Other revenue 76,752 70,766 Revenues 59,859 59,612 Other revenue 140,066 126,598 Revenues 120,180 117,475 Prepaid expenses 194,250 174,100 Property management fees 7,233 7,192
Consolidated revenue $ 1,150,214 $ 1,104,507 Earnings from operations 6,941 7,502 Consolidated revenue $ 2,229,463 $ 2,124,084 Earnings from operations 10,722 9,383 Investments, fixed maturities and marketable equities 2,413,350 2,235,397 Life insurance premiums 32,355 35,920
Eliminations Eliminations Investments, other 320,992 300,736 Property and casualty insurance premiums 18,365 16,283
Revenues (2,725) (2,561) Revenues (4,500) (4,621) Deferred policy acquisition costs, net 111,708 136,276 Net investment and interest income 33,098 28,227
Earnings from operations before equity in earnings of subsidiaries (280) (291) Earnings from operations before equity in earnings of subsidiaries (558) (576) Other assets 72,432 78,354 Other revenue 76,752 70,766
Consolidated Results Consolidated Results Right of use assets – financing, net 1,185,629 -      Total revenues 1,150,214 1,104,507
Revenues 1,150,214 1,104,507 Revenues 2,229,463 2,124,084 Right of use assets – operating 105,298 -
Earnings from operations 244,740 250,944 Earnings from operations 458,605 455,648 Related party assets 12,902 30,889 Costs and expenses:
5,266,630 3,957,742 Operating expenses 565,413 529,350
Property, plant and equipment, at cost: Commission expenses 86,099 85,334
   Land 1,016,918 976,454 Cost of sales 43,930 46,402
   Buildings and improvements 4,371,637 4,003,726 Benefits and losses 45,825 45,773
   Furniture and equipment 716,287 689,780 Amortization of deferred policy acquisition costs 6,515 5,899
   Rental trailers and other rental equipment 495,264 590,039 Lease expense 6,356 8,170
   Rental trucks 3,560,034 4,762,028 Depreciation, net of gains on disposals 151,553 132,625
10,160,140 11,022,027 Net (gains) losses on real estate (217) 10
Less: Accumulated depreciation (2,570,568) (3,088,056)      Total costs and expenses 905,474 853,563
   Total property, plant and equipment 7,589,572 7,933,971
Total assets $ 12,856,202 $ 11,891,713 Earnings from operations 244,740 250,944
LIABILITIES AND STOCKHOLDERS' EQUITY Other components of net periodic benefit costs (264) (254)
Liabilities: Interest expense (39,122) (35,030)
   Accounts payable and accrued expenses $ 546,260 $ 556,873 Pretax earnings 205,354 215,660
   Notes, loans and leases payable, net 4,497,912 4,163,323 Income tax expense (49,028) (52,118)
   Operating lease liability 104,832 - Earnings available to common shareholders $ 156,326 $ 163,542
   Policy benefits and losses, claims and loss expenses payable 1,022,134 1,011,183 Basic and diluted earnings per common share $ 7.97 $ 8.35
   Liabilities from investment contracts 1,720,995 1,666,742 Weighted average common shares outstanding: Basic and diluted 19,602,566 19,591,312
   Other policyholders' funds and liabilities 10,911 15,047
   Deferred income 35,926 35,186
   Deferred income taxes, net 859,164 750,970
Total liabilities 8,798,134 8,199,324
Common stock 10,497 10,497
Additional paid-in capital 453,761 453,326
Accumulated other comprehensive income (loss) 17,151 (66,698)
Retained earnings 4,255,906 3,976,962
Cost of common shares in treasury, net (525,653) (525,653)
Cost of preferred shares in treasury, net (151,997) (151,997)
Unearned employee stock ownership plan shares (1,597) (4,048)
Total stockholders' equity 4,058,068 3,692,389
Total liabilities and stockholders' equity $ 12,856,202 11,891,713

 

Quarter Ended September 30, Quarter Ended September 30, Quarter Ended September 30, Six Months Ended September 30, Six Months Ended September 30, Six Months Ended September 30, AMERCO AND CONSOLIDATED ENTITIES AMERCO AND CONSOLIDATED ENTITIES AMERCO AND CONSOLIDATED ENTITIES
2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
(In thousands) (In thousands) (In thousands, except occupancy rate) (In thousands) (In thousands) (In thousands, except occupancy rate) September 30, March 31, Quarter Ended September 30, Six Months Ended September 30,
Self-moving equipment rentals $ 804,325 $ 781,713 Moving and storage Unit count as of September 30 471 398 Self-moving equipment rentals $ 1,552,921 $ 1,498,315 Moving and storage Unit count as of September 30 471 398 2019 2019 2019 2018 2019 2018
Self-storage revenues 104,965 91,493 Revenues $ 1,069,552 $ 1,026,934 Square footage as of September 30 39,629 33,553 Self-storage revenues 203,239 177,705 Revenues 2,069,950 1,974,819 Square footage as of September 30 39,629 33,553 (Unaudited) (Unaudited) (Unaudited)
Self-moving and self-storage product and service sales 73,121 72,913 Earnings from operations before equity in earnings of subsidiaries 228,987 235,874 Average monthly number of units occupied 323 276 Self-moving and self-storage product and service sales 153,147 152,154 Earnings from operations before equity in earnings of subsidiaries 430,883 436,269 Average monthly number of units occupied 313 269 (In thousands) (In thousands, except share and per share data) (In thousands, except share and per share data)
Property management fees 7,233 7,192 Property and casualty insurance  Average monthly occupancy rate based on unit count 69.5% 70.6% Property management fees 14,389 14,608 Property and casualty insurance  Average monthly occupancy rate based on unit count 69.0% 70.1% ASSETS Revenues: Revenues:
Life insurance premiums 32,355 35,920 Revenues 23,528 20,522 Average monthly square footage occupied 29,200 24,867 Life insurance premiums 65,065 72,808 Revenues 43,833 36,411 Average monthly square footage occupied 28,310 24,266 Cash and cash equivalents $ 525,231 $ 673,701 Self-moving equipment rentals $ 804,325 $ 781,713 Self-moving equipment rentals $ 1,552,921 $ 1,498,315
Property and casualty insurance premiums 18,365 16,283 Earnings from operations 9,092 7,859 Property and casualty insurance premiums 31,789 29,064 Earnings from operations 17,558 10,572 Reinsurance recoverables and trade receivables, net 222,481 224,785 Self-storage revenues 104,965 91,493 Self-storage revenues 203,239 177,705
Net investment and interest income 33,098 28,227 Life insurance   Net investment and interest income 68,847 52,832 Life insurance   Inventories and parts, net 102,357 103,504 Self-moving and self-storage products and service sales 73,121 72,913 Self-moving and self-storage products and service sales 153,147 152,154
Other revenue 76,752 70,766 Revenues 59,859 59,612 Other revenue 140,066 126,598 Revenues 120,180 117,475 Prepaid expenses 194,250 174,100 Property management fees 7,233 7,192 Property management fees 14,389 14,608
Consolidated revenue $ 1,150,214 $ 1,104,507 Earnings from operations 6,941 7,502 Consolidated revenue $ 2,229,463 $ 2,124,084 Earnings from operations 10,722 9,383 Investments, fixed maturities and marketable equities 2,413,350 2,235,397 Life insurance premiums 32,355 35,920 Life insurance premiums 65,065 72,808
Eliminations Eliminations Investments, other 320,992 300,736 Property and casualty insurance premiums 18,365 16,283 Property and casualty insurance premiums 31,789 29,064
Revenues (2,725) (2,561) Revenues (4,500) (4,621) Deferred policy acquisition costs, net 111,708 136,276 Net investment and interest income 33,098 28,227 Net investment and interest income 68,847 52,832
Earnings from operations before equity in earnings of subsidiaries (280) (291) Earnings from operations before equity in earnings of subsidiaries (558) (576) Other assets 72,432 78,354 Other revenue 76,752 70,766 Other revenue 140,066 126,598
Consolidated Results Consolidated Results Right of use assets – financing, net 1,185,629 -      Total revenues 1,150,214 1,104,507      Total revenues 2,229,463 2,124,084
Revenues 1,150,214 1,104,507 Revenues 2,229,463 2,124,084 Right of use assets – operating 105,298 -
Earnings from operations 244,740 250,944 Earnings from operations 458,605 455,648 Related party assets 12,902 30,889 Costs and expenses: Costs and expenses:
5,266,630 3,957,742 Operating expenses 565,413 529,350 Operating expenses 1,099,885 1,025,904
Property, plant and equipment, at cost: Commission expenses 86,099 85,334 Commission expenses 166,998 164,591
   Land 1,016,918 976,454 Cost of sales 43,930 46,402 Cost of sales 92,859 96,283
   Buildings and improvements 4,371,637 4,003,726 Benefits and losses 45,825 45,773 Benefits and losses 94,831 94,327
   Furniture and equipment 716,287 689,780 Amortization of deferred policy acquisition costs 6,515 5,899 Amortization of deferred policy acquisition costs 12,579 11,930
   Rental trailers and other rental equipment 495,264 590,039 Lease expense 6,356 8,170 Lease expense 13,392 16,339
   Rental trucks 3,560,034 4,762,028 Depreciation, net of gains on disposals 151,553 132,625 Depreciation, net of gains on disposals 292,153 259,052
10,160,140 11,022,027 Net (gains) losses on real estate (217) 10 Net (gains) losses on real estate (1,839) 10
Less: Accumulated depreciation (2,570,568) (3,088,056)      Total costs and expenses 905,474 853,563      Total costs and expenses 1,770,858 1,668,436
   Total property, plant and equipment 7,589,572 7,933,971
Total assets $ 12,856,202 $ 11,891,713 Earnings from operations 244,740 250,944 Earnings from operations 458,605 455,648
LIABILITIES AND STOCKHOLDERS' EQUITY Other components of net periodic benefit costs (264) (254) Other components of net periodic benefit costs (527) (507)
Liabilities: Interest expense (39,122) (35,030) Interest expense (78,010) (70,284)
   Accounts payable and accrued expenses $ 546,260 $ 556,873 Pretax earnings 205,354 215,660 Pretax earnings 380,068 384,857
   Notes, loans and leases payable, net 4,497,912 4,163,323 Income tax expense (49,028) (52,118) Income tax expense (91,320) (93,466)
   Operating lease liability 104,832 - Earnings available to common shareholders $ 156,326 $ 163,542 Earnings available to common shareholders $ 288,748 291,391
   Policy benefits and losses, claims and loss expenses payable 1,022,134 1,011,183 Basic and diluted earnings per common share $ 7.97 $ 8.35 Basic and diluted earnings per common share $ 14.73 $ 14.87
   Liabilities from investment contracts 1,720,995 1,666,742 Weighted average common shares outstanding: Basic and diluted 19,602,566 19,591,312 Weighted average common shares outstanding: Basic and diluted 19,600,211 19,590,946
   Other policyholders' funds and liabilities 10,911 15,047
   Deferred income 35,926 35,186
   Deferred income taxes, net 859,164 750,970
Total liabilities 8,798,134 8,199,324
Common stock 10,497 10,497
Additional paid-in capital 453,761 453,326
Accumulated other comprehensive income (loss) 17,151 (66,698)
Retained earnings 4,255,906 3,976,962
Cost of common shares in treasury, net (525,653) (525,653)
Cost of preferred shares in treasury, net (151,997) (151,997)
Unearned employee stock ownership plan shares (1,597) (4,048)
Total stockholders' equity 4,058,068 3,692,389
Total liabilities and stockholders' equity $ 12,856,202 11,891,713

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, 2019, the balance of ROU-Financing also included the rental equipment purchased under new financing liability leases during the first six months of fiscal 2020. The table below shows adjusted property, plant and equipment, net as of September 30, 2019, by including the ROU-Financing to help compare our PPE assets with our March 2019 fiscal year end. 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.

Quarter Ended September 30, Quarter Ended September 30, Quarter Ended September 30, Six Months Ended September 30, Six Months Ended September 30, Six Months Ended September 30, AMERCO AND CONSOLIDATED ENTITIES AMERCO AND CONSOLIDATED ENTITIES AMERCO AND CONSOLIDATED ENTITIES September 30,
2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 2019
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) September 30, ROUAssets Property,Plant andEquipment March 31,
(In thousands) (In thousands) (In thousands, except occupancy rate) (In thousands) (In thousands) (In thousands, except occupancy rate) September 30, March 31, Quarter Ended September 30, Six Months Ended September 30, 2019 Financing Adjusted 2019
Self-moving equipment rentals $ 804,325 $ 781,713 Moving and storage Unit count as of September 30 471 398 Self-moving equipment rentals $ 1,552,921 $ 1,498,315 Moving and storage Unit count as of September 30 471 398 2019 2019 2019 2018 2019 2018 (Unaudited)
Self-storage revenues 104,965 91,493 Revenues $ 1,069,552 $ 1,026,934 Square footage as of September 30 39,629 33,553 Self-storage revenues 203,239 177,705 Revenues 2,069,950 1,974,819 Square footage as of September 30 39,629 33,553 (Unaudited) (Unaudited) (Unaudited) (In thousands)
Self-moving and self-storage product and service sales 73,121 72,913 Earnings from operations before equity in earnings of subsidiaries 228,987 235,874 Average monthly number of units occupied 323 276 Self-moving and self-storage product and service sales 153,147 152,154 Earnings from operations before equity in earnings of subsidiaries 430,883 436,269 Average monthly number of units occupied 313 269 (In thousands) (In thousands, except share and per share data) (In thousands, except share and per share data)
Property management fees 7,233 7,192 Property and casualty insurance  Average monthly occupancy rate based on unit count 69.5% 70.6% Property management fees 14,389 14,608 Property and casualty insurance  Average monthly occupancy rate based on unit count 69.0% 70.1% ASSETS Revenues: Revenues: Property, plant and equipment, at cost
Life insurance premiums 32,355 35,920 Revenues 23,528 20,522 Average monthly square footage occupied 29,200 24,867 Life insurance premiums 65,065 72,808 Revenues 43,833 36,411 Average monthly square footage occupied 28,310 24,266 Cash and cash equivalents $ 525,231 $ 673,701 Self-moving equipment rentals $ 804,325 $ 781,713 Self-moving equipment rentals $ 1,552,921 $ 1,498,315 Land $ 1,016,918 $ - $ 1,016,918 $ 976,454
Property and casualty insurance premiums 18,365 16,283 Earnings from operations 9,092 7,859 Property and casualty insurance premiums 31,789 29,064 Earnings from operations 17,558 10,572 Reinsurance recoverables and trade receivables, net 222,481 224,785 Self-storage revenues 104,965 91,493 Self-storage revenues 203,239 177,705 Buildings and improvements 4,371,637 - 4,371,637 4,003,726
Net investment and interest income 33,098 28,227 Life insurance   Net investment and interest income 68,847 52,832 Life insurance   Inventories and parts, net 102,357 103,504 Self-moving and self-storage products and service sales 73,121 72,913 Self-moving and self-storage products and service sales 153,147 152,154 Furniture and equipment 716,287 27,414 743,701 689,780
Other revenue 76,752 70,766 Revenues 59,859 59,612 Other revenue 140,066 126,598 Revenues 120,180 117,475 Prepaid expenses 194,250 174,100 Property management fees 7,233 7,192 Property management fees 14,389 14,608 Rental trailers and other rental equipment 495,264 125,747 621,011 590,039
Consolidated revenue $ 1,150,214 $ 1,104,507 Earnings from operations 6,941 7,502 Consolidated revenue $ 2,229,463 $ 2,124,084 Earnings from operations 10,722 9,383 Investments, fixed maturities and marketable equities 2,413,350 2,235,397 Life insurance premiums 32,355 35,920 Life insurance premiums 65,065 72,808 Rental trucks 3,560,034 1,759,118 5,319,152 4,762,028
Eliminations Eliminations Investments, other 320,992 300,736 Property and casualty insurance premiums 18,365 16,283 Property and casualty insurance premiums 31,789 29,064 Right-of-use assets, gross 10,160,140 1,912,279 12,072,419 11,022,027
Revenues (2,725) (2,561) Revenues (4,500) (4,621) Deferred policy acquisition costs, net 111,708 136,276 Net investment and interest income 33,098 28,227 Net investment and interest income 68,847 52,832 Less: Accumulated depreciation (2,570,568) (726,650) (3,297,218) (3,088,056)
Earnings from operations before equity in earnings of subsidiaries (280) (291) Earnings from operations before equity in earnings of subsidiaries (558) (576) Other assets 72,432 78,354 Other revenue 76,752 70,766 Other revenue 140,066 126,598 Total property, plant and equipment, net $ 7,589,572 $ 1,185,629 $ 8,775,201 $ 7,933,971
Consolidated Results Consolidated Results Right of use assets – financing, net 1,185,629 -      Total revenues 1,150,214 1,104,507      Total revenues 2,229,463 2,124,084
Revenues 1,150,214 1,104,507 Revenues 2,229,463 2,124,084 Right of use assets – operating 105,298 -
Earnings from operations 244,740 250,944 Earnings from operations 458,605 455,648 Related party assets 12,902 30,889 Costs and expenses: Costs and expenses:
5,266,630 3,957,742 Operating expenses 565,413 529,350 Operating expenses 1,099,885 1,025,904
Property, plant and equipment, at cost: Commission expenses 86,099 85,334 Commission expenses 166,998 164,591
   Land 1,016,918 976,454 Cost of sales 43,930 46,402 Cost of sales 92,859 96,283
   Buildings and improvements 4,371,637 4,003,726 Benefits and losses 45,825 45,773 Benefits and losses 94,831 94,327
   Furniture and equipment 716,287 689,780 Amortization of deferred policy acquisition costs 6,515 5,899 Amortization of deferred policy acquisition costs 12,579 11,930
   Rental trailers and other rental equipment 495,264 590,039 Lease expense 6,356 8,170 Lease expense 13,392 16,339
   Rental trucks 3,560,034 4,762,028 Depreciation, net of gains on disposals 151,553 132,625 Depreciation, net of gains on disposals 292,153 259,052
10,160,140 11,022,027 Net (gains) losses on real estate (217) 10 Net (gains) losses on real estate (1,839) 10
Less: Accumulated depreciation (2,570,568) (3,088,056)      Total costs and expenses 905,474 853,563      Total costs and expenses 1,770,858 1,668,436
   Total property, plant and equipment 7,589,572 7,933,971
Total assets $ 12,856,202 $ 11,891,713 Earnings from operations 244,740 250,944 Earnings from operations 458,605 455,648
LIABILITIES AND STOCKHOLDERS' EQUITY Other components of net periodic benefit costs (264) (254) Other components of net periodic benefit costs (527) (507)
Liabilities: Interest expense (39,122) (35,030) Interest expense (78,010) (70,284)
   Accounts payable and accrued expenses $ 546,260 $ 556,873 Pretax earnings 205,354 215,660 Pretax earnings 380,068 384,857
   Notes, loans and leases payable, net 4,497,912 4,163,323 Income tax expense (49,028) (52,118) Income tax expense (91,320) (93,466)
   Operating lease liability 104,832 - Earnings available to common shareholders $ 156,326 $ 163,542 Earnings available to common shareholders $ 288,748 291,391
   Policy benefits and losses, claims and loss expenses payable 1,022,134 1,011,183 Basic and diluted earnings per common share $ 7.97 $ 8.35 Basic and diluted earnings per common share $ 14.73 $ 14.87
   Liabilities from investment contracts 1,720,995 1,666,742 Weighted average common shares outstanding: Basic and diluted 19,602,566 19,591,312 Weighted average common shares outstanding: Basic and diluted 19,600,211 19,590,946
   Other policyholders' funds and liabilities 10,911 15,047
   Deferred income 35,926 35,186
   Deferred income taxes, net 859,164 750,970
Total liabilities 8,798,134 8,199,324
Common stock 10,497 10,497
Additional paid-in capital 453,761 453,326
Accumulated other comprehensive income (loss) 17,151 (66,698)
Retained earnings 4,255,906 3,976,962
Cost of common shares in treasury, net (525,653) (525,653)
Cost of preferred shares in treasury, net (151,997) (151,997)
Unearned employee stock ownership plan shares (1,597) (4,048)
Total stockholders' equity 4,058,068 3,692,389
Total liabilities and stockholders' equity $ 12,856,202 11,891,713

 

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