AMERCO 2016 Annual Report

July 15, 2016 Download

July 15, 2016

Dear Fellow Shareholders,

Our team’s commitment to the customer drove good annual results at AMERCO.

In Fiscal 2016, U-Haul surpassed 20,000 locations by expanding both Company stores and our independent dealer network across North America. We continued to invest in our rental fleet to provide a better product to the customer and to meet the need for U-Haul equipment at additional locations.

Competition and other external factors will always pressure our results. Additionally, our own execution and decisions can create just as many challenges. I intend to direct our time and energy towards those factors within our control and continue to make decisions based upon a long-term horizon.

In Fiscal 2017, capital expenditures will likely continue at an upward trajectory as we increase investment in the self-move and self-store businesses. A robust truck resale market has helped reduce our net capital investment over the past few years. How this resale market will trend in the future is uncertain.

The Company added 3,600,000 net rentable square feet to our self-storage offering through acquisition, conversion and development projects in Fiscal 2016. We continue to be disciplined in our acquisition of real estate and dedicated to locations that best position U-Haul for the long-term.

Our U-Box, Moving Help, and Storage Affiliate programs continue to grow. Our opportunity is to increase the public’s awareness of these products and services.

Repwest Insurance is on program. Oxford Life maintained an A- financial strength rating by A.M. Best for the third consecutive year.

Lastly, I would like to acknowledge our treasurer, Gary Horton, who passed away in March. Gary was a 47-year veteran of AMERCO and our treasurer since 1982. He was a brilliant thinker who devoted much of his life to the service of the Company, its customers and its stakeholders. Above all, Gary was a kind and generous friend who we will deeply miss.

My thanks to our customers, team members, U-Haul dealers, shareholders and lenders for their continued support.


E.J. “Joe” Shoen