RENO, Nev., Nov 5, 2008 (GlobeNewswire via COMTEX) — AMERCO
AMERCO
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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, 2008, of $40.6 million, or $2.10 per share, compared with net earnings of $47.2 million, or $2.39 per share, for the same period last year.
, 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, 2008, of $40.6 million, or $2.10 per share, compared with net earnings of $47.2 million, or $2.39 per share, for the same period last year.
For the six-month period ending September 30, 2008, net earnings available to common shareholders were $67.2 million, or $3.47 per share, compared with net earnings of $85.7 million, or $4.32 per share for the same period last year.
“The consumer truck rental market remains tight, however, improvements in utilization of our fleet led to revenue increases during the quarter,” stated Joe Shoen, chairman of AMERCO. “Self-storage occupancy is below my expectation. This is a tight market and consumers have choices, we intend to remain their best choice,” concluded Shoen.
Highlights of Second-Quarter 2009 Results
* Self-moving equipment rental revenues increased $3.5 million for the second quarter of fiscal 2009 compared with the second quarter of fiscal 2008. The Company also saw increases in total moving transactions as well as utilization with a decreased rental truck fleet compared with the same period last year. * Self-storage revenues for the AMERCO Moving and Storage segment decreased 1.3 percent for the second quarter of fiscal 2009 compared with the same period last year. * The Company nets gains and losses from the disposal of property and equipment against reported depreciation. Included as an offset to total depreciation for the first six months of fiscal 2008 were $10.6 million of gains on the sale of real estate. There were no similar gains during the first six months of fiscal 2009. * Net losses on the disposal of equipment increased $6.4 million for the second quarter of fiscal 2009 compared with the same period last year. Excluding disposal gains and losses, total depreciation increased $4.2 million for the second quarter of 2009 primarily due to equipment. Additionally, lease expense increased $4.1 million during the same period. * At September 30, 2008 cash, cash equivalents and available credit in the Moving and Storage segment was $413.5 million. Over the next four quarters, the Company has maturities and required principal payments of $126.8 million on loans that were in place as of September 30, 2008.
AMERCO will hold its investor call for the second quarter of fiscal 2009 on Thursday, November 6, 2008, 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 undisputed choice for the do-it-yourself mover, with a network of more than 15,650 locations in all 50 United States and 10 Canadian provinces. U-Haul customers’ patronage has enabled the Company to maintain a fleet size of 96,000 trucks, 75,000 trailers and 35,000 towing devices. U-Haul offers more than 391,000 rooms and more than 34 million square feet of storage space at more than 1,075 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.
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, 2008, 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 2009 and 2008.
Quarter Ended September 30, --------------------------- 2008 2007 (a) ----------- ----------- (Unaudited) (In thousands) Revenues Self-moving equipment rentals $ 439,244 $ 435,786 Self-storage revenues 27,901 33,088 Self-moving & self-storage products and service sales 58,296 62,554 Property management fees 4,721 3,993 Life insurance premiums 27,099 27,937 Property & casualty insurance premiums 7,359 7,332 Net investment & interest income 14,983 16,373 Other revenue 11,892 9,279 ———– ———– Consolidated revenues $ 591,495 $ 596,342 (a) The second quarter of fiscal 2008 include SAC Holding II self-storage revenues of $4.8 million, self-moving and self-storage products and service sales of $4.3 million and other revenues of $0.1 million.
Listed below are revenues and earnings from operations at each of our operating segments for the second quarter of fiscal 2009 and 2008.
Quarter Ended September 30, --------------------------- 2008 2007 ----------- ----------- (Unaudited) (In thousands) Moving & storage Revenues $ 547,978 $ 545,568 Earnings from operations 92,850 104,979 Property and casualty insurance Revenues 9,685 10,393 Earnings from operations 2,195 3,722 Life insurance Revenues 34,516 34,460 Earnings from operations 5,341 3,565 SAC Holding II Revenues -- 12,162 Earnings from operations -- 3,320 Eliminations Revenues (684) (6,241) Earnings from operations (4,864) (6,506) Consolidated results Revenues 591,495 596,342 Earnings from operations 95,522 109,080
The Company owns and manages self-storage facilities. Self-storage revenues reported in the consolidated financial statements for Moving and Storage 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 (except for SAC Holding II). Self-storage data for both our owned and managed locations for the second quarter of fiscal 2009 and 2008 is as follows:
Quarter Ended September 30, --------------------------- 2008 2007 ----------- ----------- (Unaudited) (In thousands, except occupancy rate) Room count as of September 30 391 386 Square footage as of September 30 34,515 34,045 Average number of rooms occupied 326 335 Average occupancy rate based on room count 83.4% 86.8% Average square footage occupied 29,354 29,912
Listed below on a consolidated basis are revenues for our major product lines for the first six months of fiscal 2009 and 2008.
Six Months Ended September 30, --------------------------- 2008 2007 (a) ----------- ----------- (Unaudited) (In thousands) Revenues Self-moving equipment rentals $ 829,273 $ 828,303 Self-storage revenues 55,452 65,124 Self-moving & self-storage products and service sales 120,852 131,209 Property management fees 9,437 7,940 Life insurance premiums 54,016 57,124 Property & casualty insurance premiums 13,483 13,248 Net investment & interest income 29,579 30,687 Other revenue 22,197 16,982 ———– ———– Consolidated revenues $ 1,134,289 $ 1,150,617 (a) The first six months of fiscal 2008 include SAC Holding II self-storage revenues of $9.8 million, self-moving and self- storage products and service sales of $9.0 million and other revenues of $0.2 million.
Listed below are revenues and earnings from operations at each of our operating segments for the first six months of fiscal 2009 and 2008.
Six Months Ended September 30, --------------------------- 2008 2007 ----------- ----------- (Unaudited) (In thousands) Moving & storage Revenues $ 1,049,519 $ 1,048,165 Earnings from operations 162,536 193,471 Property and casualty insurance Revenues 18,575 19,409 Earnings from operations 4,400 6,038 Life insurance Revenues 67,579 70,643 Earnings from operations 9,503 5,882 SAC Holding II Revenues -- 24,551 Earnings from operations -- 7,075 Eliminations Revenues (1,384) (12,151) Earnings from operations (9,255) (11,382) Consolidated results Revenues 1,134,289 1,150,617 Earnings from operations 167,184 201,084
The Company owns and manages self-storage facilities. Self-storage revenues reported in the consolidated financial statements for Moving and Storage 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 (except for SAC Holding II). Self-storage data for both our owned and managed locations for the first six months of fiscal 2009 and 2008 is as follows:
Six Months Ended September 30, --------------------------- 2008 2007 ----------- ----------- (Unaudited) (In thousands, except occupancy rate) Room count as of September 30 391 386 Square footage as of September 30 34,515 34,045 Average number of rooms occupied 323 331 Average occupancy rate based on room count 82.9% 86.1% Average square footage occupied 29,065 29,608 AMERCO AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED BALANCE SHEETS Sept 30, March 31, 2008 2008 ----------- ----------- (Unaudited) Assets (In thousands) Cash and cash equivalents $ 363,130 $ 206,622 Reinsurance recoverables and trade receivables, net 195,315 201,116 Notes and mortgage receivables, net 2,452 2,088 Inventories, net 77,348 65,349 Prepaid expenses 57,923 56,159 Investments, fixed maturities and marketable equities 567,132 633,784 Investments, other 225,325 185,591 Deferred policy acquisition costs, net 40,143 35,578 Other assets 122,652 131,138 Related party assets 292,259 303,886 ----------- ----------- 1,943,679 1,821,311 ----------- ----------- Property, plant and equipment, at cost: Land 210,427 208,164 Buildings and improvements 897,714 859,882 Furniture and equipment 319,832 309,960 Rental trailers and other rental equipment 207,313 205,572 Rental trucks 1,707,517 1,734,425 ----------- ----------- 3,342,803 3,318,003 Less: Accumulated depreciation (1,308,986) (1,306,827) ----------- ----------- Total property, plant and equipment 2,033,817 2,011,176 ----------- ----------- Total assets $ 3,977,496 $ 3,832,487 =========== =========== Liabilities & stockholders' equity Liabilities: Accounts payable & accrued expenses $ 280,620 $ 292,526 AMERCO notes, loans and leases payable 1,575,012 1,504,677 Policy benefits & losses, claims & loss expenses payable 776,026 789,374 Liabilities from investment contracts 321,839 339,198 Other policyholders' funds & liabilities 10,300 10,467 Deferred income 12,266 11,781 Deferred income taxes 169,621 126,033 ----------- ----------- Total liabilities 3,145,684 3,074,056 ----------- ----------- Stockholders' equity: Common stock 10,497 10,497 Additional paid-in capital 420,151 419,370 Accumulated other comprehensive loss (49,819) (55,279) Retained earnings 982,583 915,415 Cost of common shares in treasury, net (525,336) (524,677) Unearned employee stock ownership plan shares (6,264) (6,895) ----------- ----------- Total stockholders' equity 831,812 758,431 ----------- ----------- Total liabilities & stockholders' equity $ 3,977,496 $ 3,832,487 =========== =========== AMERCO AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Quarter Ended September 30, 2008 2007 ----------- ----------- (Unaudited) (In thousands, except share and per share amounts) Revenues: Self-moving equipment rentals $ 439,244 $ 435,786 Self-storage revenues 27,901 33,088 Self-moving and self-storage products and service sales 58,296 62,554 Property management fees 4,721 3,993 Life insurance premiums 27,099 27,937 Property and casualty insurance premiums 7,359 7,332 Net investment and interest income 14,983 16,373 Other revenue 11,892 9,279 ----------- ----------- Total revenues 591,495 596,342 ----------- ----------- Costs and expenses: Operating expenses 274,288 284,857 Commission expenses 54,082 49,481 Cost of sales 32,642 33,943 Benefits and losses 27,673 25,592 Amortization of deferred policy acquisition costs 2,338 3,266 Lease expense 38,516 34,377 Depreciation, net of (gains) losses on disposals 66,434 55,746 ----------- ----------- Total costs and expenses 495,973 487,262 ----------- ----------- Earnings from operations 95,522 109,080 Interest expense (24,930) (27,449) ----------- ----------- Pretax earnings 70,592 81,631 Income tax expense (26,768) (31,157) ----------- ----------- Net earnings 43,824 50,474 Less: Preferred stock dividends (3,241) (3,241) ----------- ----------- Earnings available to common shareholders $ 40,583 $ 47,233 =========== =========== Basic and diluted earnings per common share $ 2.10 $ 2.39 =========== =========== Weighted average common shares outstanding: Basic and diluted 19,351,322 19,733,755 =========== =========== AMERCO AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Six Months Ended September 30, 2008 2007 ----------- ----------- (Unaudited) (In thousands, except share and per share amounts) Revenues: Self-moving equipment rentals $ 829,273 $ 828,303 Self-storage revenues 55,452 65,124 Self-moving and self-storage products and service sales 120,852 131,209 Property management fees 9,437 7,940 Life insurance premiums 54,016 57,124 Property and casualty insurance premiums 13,483 13,248 Net investment and interest income 29,579 30,687 Other revenue 22,197 16,982 ----------- ----------- Total revenues 1,134,289 1,150,617 ----------- ----------- Costs and expenses: Operating expenses 533,559 558,058 Commission expenses 102,047 93,785 Cost of sales 67,627 68,591 Benefits and losses 54,990 54,869 Amortization of deferred policy acquisition costs 4,426 7,183 Lease expense 73,084 67,036 Depreciation, net of (gains) losses on disposals 131,372 100,011 ----------- ----------- Total costs and expenses 967,105 949,533 ----------- ----------- Earnings from operations 167,184 201,084 Interest expense (48,774) (51,165) ----------- ----------- Pretax earnings 118,410 149,919 Income tax expense (44,760) (57,693) ----------- ----------- Net earnings 73,650 92,226 Less: Preferred stock dividends (6,482) (6,482) ----------- ----------- Earnings available to common shareholders $ 67,168 $ 85,744 =========== =========== Basic and diluted earnings per common share $ 3.47 $ 4.32 =========== =========== Weighted average common shares outstanding: Basic and diluted 19,346,943 19,850,874 =========== =========== AMERCO AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Six Months Ended September 30, 2008 2007 ----------- ----------- (Unaudited) (In thousands) Cash flow from operating activities: Net earnings $ 73,650 $ 92,226 Adjustments to reconcile net earnings to cash provided by operations: Depreciation 121,920 113,194 Amortization of deferred policy acquisition costs 4,426 7,183 Change in allowance for losses on trade receivables (29) 87 Change in allowance for losses on mortgage notes (59) (19) Change in allowance for inventory reserves 3,603 1,281 Net (gain) loss on sale of real and personal property 9,452 (13,183) Net loss on sale of investments 1 149 Deferred income taxes 48,993 33,966 Net change in other operating assets and liabilities: Reinsurance recoverables and trade receivables 5,831 (5,154) Inventories (15,602) 3,181 Prepaid expenses 8,872 4,120 Capitalization of deferred policy acquisition costs (4,887) (2,539) Other assets 8,835 (10,373) Related party assets 11,249 41,881 Accounts payable and accrued expenses (16,199) 13,497 Policy benefits and losses, claims and loss expenses payable (12,817) 5,066 Other policyholders' funds and liabilities (746) 211 Deferred income 539 (1,673) Related party liabilities (1,639) (3,411) ----------- ----------- Net cash provided by operating activities 245,393 279,690 ----------- ----------- Cash flows from investing activities Purchases of: Property, plant and equipment (224,996) (360,511) Short term investments (216,353) (128,627) Fixed maturities investments (115,124) (45,622) Preferred stock (2,001) -- Real estate (350) (3,441) Mortgage loans (9,311) (4,895) Proceeds from sale of: Property, plant and equipment 80,805 100,660 Short term investments 182,399 144,814 Fixed maturities investments 173,670 61,206 Equity securities 27 46 Preferred stock -- 2,625 Real estate 704 153 Mortgage loans 2,822 4,043 Payments from notes and mortgage receivables 63 367 ----------- ----------- Net cash used by investing activities (127,645) (229,182) ----------- ----------- Cash flows from financing activities: Borrowings from credit facilities 135,330 447,620 Principal repayments on credit facilities (74,320) (179,043) Debt issuance costs (360) (9,850) Capital lease payments (348) -- Leveraged Employee Stock Ownership Plan-repayments from loan 631 608 Treasury stock repurchases (659) (33,966) Securitization deposits -- (116,176) Preferred stock dividends paid (6,482) (6,482) Net dividend from related party 2,010 -- Investment contract deposits 9,561 8,772 Investment contract withdrawals (26,921) (34,032) ----------- ----------- Net cash provided by financing activities 38,442 77,451 ----------- ----------- Effects of exchange rate on cash 318 113 ----------- ----------- Increase in cash equivalents 156,508 128,072 Cash and cash equivalents at the beginning of period 206,622 75,272 ----------- ----------- Cash and cash equivalents at the end of period $ 363,130 $ 203,344 =========== ===========
SOURCE: AMERCO / U-Haul
AMERCO Jennifer Flachman, Director of Investor Relations (602) 263-6601 Flachman@amerco.com
| Sovran Self Storage Q3 profit declines; Guides Q4, cuts FY08 FFO outlook - Quick Facts 11/5/2008 4:39 PM ET |
| (RTTNews) - Sovran Self Storage Inc. (SSS: News ) said that its third quarter net income available to common shareholders was $9.5 million or $0.44 per share, compared to $10.9 million or $0.51 per share in the year ago quarter.
Funds from operations available to common shareholders for the quarter were $18.23 million or $0.84 per share, compared to $19.12 million or $0.89 per share in the year ago quarter.
Revenues for the quarter were $52.50 million, compared to $50.77 million in the prior year quarter.
Analysts surveyed by First Call/Thomson Financial expected the company to report earnings of $0.86 per share on revenues of $49.21 million for the quarter.
The company expects funds from operations for the fourth quarter of 2008 to be approximately $0.80 to $0.82 per share. Analysts expect the company to report earnings of $0.85 per share for the fourth quarter.
The company now expects fiscal 2008 funds from operations to be between $3.28 and $3.30 per share. Earlier, the company expected to post FFO to be in the range of $3.35 to $3.40 per share.
Analysts expect the company to report earnings of $3.35 per share for fiscal 2008.
by RTT Staff Writer |
ALEXANDRIA, Va., Nov 05, 2008 (BUSINESS WIRE) — The Self Storage Association today released a new publication: “Self Storage in Mixed Use Development, An Analysis of Case Studies.” This new SSA publication explores an often over-looked element in an increasing trend toward mixed-use developments — the addition of a self storage component. The author, Stephen Bourne, takes the reader on a tour of seven mixed-use projects from all across the nation to demonstrate how self storage can be integrated with typical retail, commercial and industrial uses.
“This new publication will benefit traditional real estate developers and investors as well as self storage owner-operators in ‘how to’ best incorporate a low-cost, low maintenance self storage component into planning for new or conversion retail commercial projects,” stated Michael T. Scanlon Jr., President & CEO of the Self Storage Association. “Self storage services the commercial and retail segments of the real estate industry almost as much as it does the residential segment. Small business and boutique retailers increasingly utilize self storage for both short term and year-round warehousing space. The residential use of self storage is well documented, as one-in-ten U.S. households already rent a self storage unit,” Scanlon added.
“Self Storage in Mixed Use Development, An Analysis of Case Studies” profiles seven successful mixed-use developments that include a significant self storage component, explores the decision-making process the led to each particular combination, and provides an analysis of the advantages and challenges for each project. Through this tour the author shows multiple examples of the advantages self storage brings to commercial projects by leveraging efficient yet low-impact land use. Sample financial information is also included for several projects.
The book is authored by former Shurgard Self Storage architect Stephen Bourne. The storage industry veteran outlines the case studies in the book as a typical representation of common uses of self storage within mixed-use developments. More recent advances in the application of self storage in mixed use development has also included the use of several floors of self storage layered between ground level retail or commercial space and high-end, urban residential space above in high rise projects.
“Traditionally the commercial sector has implemented four primary uses when planning a mixed-use project: Retail, Multi-family Residential, Office and Hotel,” according to Bourne. “Generally I think it is fair to say that the real estate industry as a whole has overlooked self storage as a viable and profitable component of mixed-use developments.”
After dozens of mixed-use developments were considered for the book, a final group was selected that was intended to represent a broad spectrum of applications, including, urban, rural, and suburban developments. Each case study examines the overall process from concept to occupancy, providing an in-depth look at the unique challenges that accompany the fulfillment of a mixed-use project, the costs and methods of construction and how the store has performed. There are also a wide variety of construction types, sizes, and densities.
America’s recent rediscovery of mixed-use developments is a throwback to the “old way” of planning, before the highway systems stretched the country from dense communities to broader, more extended lifestyles. For more than five decades commercial real estate has compartmentalized in modular fashion for a number of reasons. Today however competition for prime properties is intense, land and construction costs are astronomical, zoning commissions are more meticulous and all developers must find more creative ways to make projects viable. Self Storage adds yet another consumer element to mixed-use development projects that brings popular acceptance and yields significant profitability.
To obtain your copy of Self Storage in Mixed Use Development, An Analysis of Case Studies, visit
www.selfstorage.org or call (888) 735-3784.
About the Self Storage Association
Founded in 1975, the Self Storage Association (SSA) is the national not-for-profit trade organization serving the $22.2 billion (revenues) self storage industry including owner-operators, facility managers and vendors in the self storage industry. The SSA represents some 3,000 direct member companies and another 3,000 indirect member firms [via twenty-five (25) affiliated associations] that own and operate a total of some 22,000 facilities in the US, Canada and 26 other nations. SSA direct members range from individual facility owner-operators to multiple-facility operations, to the industry’s largest publicly traded Real Estate Investment Trusts (REITs). The Association specializes in twelve areas of core competency: (1.) Database of Industry Information; (2.) Advocacy & Government Relations; (3.) Networking & Meetings; (4.) Communications & the SSA Globe Magazine; (5.) Executive Education & Employee Training; (6.) Rewards & Benefits; (7.) Technology & Web-based Tools; (8.) Research & Studies; (9.) Affiliated Association Relations; (10.) Membership Services; (11.) Publications & Content; and, (12.) Legal Information & Resources. Visit
www.selfstorage.ORG for more information.
SOURCE: Self Storage Association
Timothy J. Dietz SSA VP, Communications 703-575-8000 x112 tdietz@selfstorage.org
