AMERCO Reports Second Quarter Fiscal 2005 Financial Results

November 9, 2004 Download

AMERCO (Nasdaq: UHAL), the parent of U-Haul International, Inc., Oxford Life Insurance Company, Republic Western Insurance Company and Amerco Real Estate Company, today reported its financial results for the second quarter and the first six months ending September 30, 2004.

Financial Results

Revenues for the second quarter of fiscal 2005 were $578.5 million, compared with $627.5 million for the same period in fiscal 2004. Earnings available to common shareholders were $49.8 million, or $2.39 per share, compared with $40.8 million, or $1.97 per share for the same period last year.

Revenues for the first six months of fiscal 2005 were $1,129.3 million, compared with $1,207.6 million in the same period last year. Earnings available to common shareholders were $91 million, or $4.38 per share, compared with $65.3 million, or $3.15 per share for the same period last year.

Contributing to these results were solid growth at U-Haul; the exit of unprofitable insurance business at Republic Western; the deconsolidation of SAC Holding Corporation; and the absence of restructuring costs.

Moving and Storage Operations

Earnings from operations at U-Haul were $93.1 million in the second quarter of fiscal 2005, compared with $98.4 million for the same period last year. This represents a decrease of $5.3 million, or 5.4%, and is attributable to a change in the timing of recognizing current year insurance expense to better match revenues and expenses and to lost rentals resulting from multiple hurricanes in the southeastern part of the U.S. during August and September. “With the effect of the hurricanes largely behind us, we are back on plan,” stated Joe Shoen, chairman of AMERCO. Earnings from operations at U-Haul for the first six months of fiscal 2005 were $169.1 million, compared with $164.2 million for the same period last year. This represents an increase of $4.9 million, or 3%.

Through six months, and despite the change in the timing of insurance expense recognition and the effect of the hurricanes, strong truck and storage rentals, along with increased fleet productivity had a major positive impact on the operating profitability of U-Haul.

Insurance Operations

Revenues at RepWest and Oxford declined $30.7 million and $54.4 million in the second quarter and first half, respectively, compared with the same periods last year. This primarily reflects the impact of RepWest’s strategy to exit unprofitable non-U-Haul lines of business. Earnings from operations for the combined insurance companies were $2.6 million and $6.6 million in the second quarter and first half, respectively. This compares with losses of $12.4 million and $11 million for the same periods a year ago. Charges of $5 to $7 million, after-tax, will be taken in the third quarter at RepWest to cover losses resulting from hurricane damages in Florida.