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 AMERCO Reports Fiscal 2017 Financial Results
   Wednesday, May 24, 2017 4:11:00 PM ET

AMERCO (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.

                                                     Quarter Ended Mar. 31,   Twelve Months Ended Mar. 31,
                                                     2017        2016         2017           2016
                                                     (In thousands)
Revenues:
Self-moving equipment rentals                        $463,314    $453,072     $2,362,833     $2,297,980
Self-storage revenues                                74,692      65,529       286,886        247,944
Self-moving & self-storage products &  service sales 53,878      53,542       253,073        251,541
Property management fees                             6,025       5,932        29,075         26,533
Life insurance premiums                              40,515      41,224       163,579        162,662
Property and casualty insurance premiums             12,132      11,987       52,334         50,020
Net investment and interest income                   25,857      23,468       102,276        86,617
Other revenue                                        32,358      28,255       171,711        152,171
Total revenues                                       $708,771    $683,009     $3,421,767     $3,275,468

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.

                                                                   Quarter Ended Mar. 31,    Twelve Months Ended Mar. 31,
                                                                   2017    2016              2017           2016
Moving and storage                                                 (In thousands)
Revenues                                                           $632,785        $608,618  $3,113,000     $2,984,504
Earnings from operations before equity
earnings of subsidiaries                                           28,995          91,369    688,913        813,124
Property and casualty insurance
Revenues                                                           15,833          15,931    68,986         64,803
Earnings from operations                                           5,345           5,733     27,161         24,547
Life insurance
Revenues                                                           62,149          59,816    245,599        231,220
Earnings from operations                                           9,760           9,787     27,646         29,773
Eliminations
Revenues                                                           (1,996)         (1,356)   (5,818)        (5,059)
Earnings from operations before equity in earnings of subsidiaries (1,020)         (341)     (1,457)        (818)
Consolidated results
Revenues                                                           708,771         683,009   3,421,767      3,275,468
Earnings from operations                                           43,080          106,548   742,263        866,626

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:

                                                    Quarter Ended March 31,
                                                    2017          2016
                                                    (In thousands, except occupancy rate)
Room count as of March 31                           318           275
Square footage as of March 31                       27,305        23,951
Average monthly number of rooms occupied            226           207
Average monthly occupancy rate based on room count  72.2%         76.1%
Average monthly square footage occupied             20,514        18,732
                                                    Twelve Months Ended March 31,
                                                    2017          2016
                                                    (In thousands, except occupancy rate)
Room count as of March 31                           318           275
Square footage as of March 31                       27,305        23,951
Average monthly number of rooms occupied            226           203
Average monthly occupancy rate based on room count  75.8%         80.1%
Average monthly square footage occupied             20,386        18,231
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED BALANCE SHEETS
                                                               March 31,     March 31,
                                                               2017          2016
                                                               (In thousands)
ASSETS
Cash and cash equivalents                                    $ 697,806     $ 600,646
Reinsurance recoverables and trade receivables, net            178,081       175,135
Inventories, net                                               82,439        79,756
Prepaid expenses                                               124,728       134,300
Investments, fixed maturities and marketable equities          1,663,768     1,490,789
Investments, other                                             367,830       311,821
Deferred policy acquisition costs, net                         130,213       136,386
Other assets                                                   117,072       77,210
Related party assets                                           86,168        85,734
                                                               3,448,105     3,091,777
Property, plant and equipment, at cost:
Land                                                           640,938       587,347
Buildings and improvements                                     2,606,537     2,187,400
Furniture and equipment                                        510,415       399,943
Rental trailers and other rental equipment                     492,280       462,379
Rental trucks                                                  4,091,598     3,514,175
                                                               8,341,768     7,151,244
Less: Accumulated depreciation                                 (2,384,033)   (2,133,733)
Total property, plant and equipment                            5,957,735     5,017,511
Total assets                                                 $ 9,405,840   $ 8,109,288
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Accounts payable and accrued expenses                        $ 450,541     $ 502,538
Notes, loans and leases payable                                3,262,880     2,647,396
Policy benefits and losses, claims and loss expenses payable   1,086,322     1,071,412
Liabilities from investment contracts                          1,112,498     951,490
Other policyholders’ funds and liabilities                     10,150        8,650
Deferred income                                                28,696        22,784
Deferred income taxes                                          835,009       653,612
Total liabilities                                              6,786,096     5,857,882
Common stock                                                   10,497        10,497
Additional paid-in capital                                     452,172       451,629
Accumulated other comprehensive loss                           (51,236)      (60,525)
Retained earnings                                              2,892,893     2,533,641
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                  (6,932)       (6,186)
Total stockholders’ equity                                     2,619,744     2,251,406
Total liabilities and stockholders’ equity                   $ 9,405,840   $ 8,109,288
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                Quarter Ended March 31,
                                                                2017              2016
                                                                (In thousands, except share and per share data)
Revenues:
Self-moving equipment rentals                                 $ 463,314         $ 453,072
Self-storage revenues                                           74,692            65,529
Self-moving and self-storage products and service sales         53,878            53,542
Property management fees                                        6,025             5,932
Life insurance premiums                                         40,515            41,224
Property and casualty insurance premiums                        12,132            11,987
Net investment and interest income                              25,857            23,468
Other revenue                                                   32,358            28,255
Total revenues                                                  708,771           683,009
Costs and expenses:
Operating expenses                                              395,436           344,440
Commission expenses                                             51,900            50,423
Cost of sales                                                   35,634            34,394
Benefits and losses                                             43,468            39,043
Amortization of deferred policy acquisition costs               7,087             7,713
Lease expense                                                   8,139             9,531
Depreciation, net of (gains) losses on disposals                124,027           90,917
Total costs and expenses                                        665,691           576,461
Earnings from operations                                        43,080            106,548
Interest expense                                                (29,544)          (26,235)
Pretax earnings                                                 13,536            80,313
Income tax expense                                              (3,988)           (27,745)
Earnings available to common shareholders                     $ 9,548           $ 52,568
Basic and diluted earnings per common share                   $ 0.49            $ 2.68
Weighted average common shares outstanding: Basic and diluted   19,587,204        19,593,071
AMERCO AND CONSOLIDATED ENTITIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                Twelve Months Ended March 31,
                                                                2017              2016
                                                                (In thousands, except share and per share data)
Revenues:
Self-moving equipment rentals                                 $ 2,362,833       $ 2,297,980
Self-storage revenues                                           286,886           247,944
Self-moving and self-storage products and service sales         253,073           251,541
Property management fees                                        29,075            26,533
Life insurance premiums                                         163,579           162,662
Property and casualty insurance premiums                        52,334            50,020
Net investment and interest income                              102,276           86,617
Other revenue                                                   171,711           152,171
Total revenues                                                  3,421,767         3,275,468
Costs and expenses:
Operating expenses                                              1,568,083         1,470,047
Commission expenses                                             267,230           262,627
Cost of sales                                                   152,485           144,990
Benefits and losses                                             182,710           167,436
Amortization of deferred policy acquisition costs               26,218            23,272
Lease expense                                                   37,343            49,780
Depreciation, net of (gains) losses on disposals                445,435           290,690
Total costs and expenses                                        2,679,504         2,408,842
Earnings from operations                                        742,263           866,626
Interest expense                                                (113,406)         (97,715)
Amortization on early extinguishment of debt                    (499)             -
Pretax earnings                                                 628,358           768,911
Income tax expense                                              (229,934)         (279,910)
Earnings available to common shareholders                     $ 398,424         $ 489,001
Basic and diluted earnings per common share                   $ 20.34           $ 24.95
Weighted average common shares outstanding: Basic and diluted   19,586,606        19,596,110
NON-GAAP FINANCIAL RECONCILIATION SCHEDULE
                                                                                       Year Ended
                                                                                       March 31, 2017
(In thousands, except share and per share amounts)
AMERCO and Consolidated Subsidiaries
Earnings per common share: basic and diluted                                         $ 20.34
PEI litigation accrual reduction, net of taxes, per common share basic and diluted     (0.79)
Earnings per common share: basic and diluted before PEI litigation accrual reduction $ 19.55
PEI litigation accrual reduction                                                     $ 24,600
Income tax benefit                                                                     (9,053)
PEI litigation accrual reduction, net of taxes                                       $ 15,547
PEI litigation accrual reduction, net of taxes, per common share basic and diluted   $ 0.79
Weighted average shares outstanding: basic and diluted                                 19,586,606

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/amerco-reports-fiscal-2017-financial-results-300463509.html

SOURCE AMERCO

https://rt.prnewswire.com/rt.gif?NewsItemId=LA99505&Transmission_Id=201705241611PR_NEWS_USPR_____LA99505&DateId=20170524



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