AMERCO Reports Second Quarter Fiscal 2018 Financial Results

RENO, Nev., Nov. 8, 2017

For the six-month period ended September 30, 2017, net earnings available to shareholders were $250.8 million, or $12.81 per share, compared with net earnings of $323.6 million, or $16.52 per share, for the same period last year. Included in the results for the six-month period ended September 30, 2016, 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 $15.73 per share for the six-month period ended September 30, 2016.

"Quarterly results were impacted by $20 million of discretionary bonuses to frontline managers.  Operating results were reduced by fewer trucks sold and a higher cost associated with those sold trucks," stated Joe Shoen, chairman of AMERCO. "Truck sales will take at least six months to get back onto a more regular fleet rotation.  Self-move and self-store transactions were within planned ranges.  The closing of the Chelsea, NYC property sale occurred in October instead of September."

Highlights of Second Quarter Fiscal 2018 Results

• Self-moving equipment rental revenues increased $28.8 million or 4% during the second quarter of fiscal 2018, compared with the second quarter of fiscal 2017. Increases in both one-way and in-town transactions led to the improvement in revenue. We increased the number of trucks, trailers, towing devices, independent dealers and Company-owned locations compared with the same period last year.
• Self-storage revenues increased $8.3 million during the second quarter of fiscal 2018, compared with the second quarter of fiscal 2017. The average monthly amount of occupied square feet increased by 8.1% during the second quarter of fiscal 2018 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 3.6 million net rentable square feet or a 14.2% increase to our owned self-storage portfolio with over 1.0 million of that coming on during the second quarter.
• Depreciation, net of gains and losses on disposals increased $23.1 million. Depreciation on the rental equipment fleet increased $14.6 million primarily due to a larger fleet. Gains on the disposal on rental trucks decreased $4.5 million due to lower unit sales. All other depreciation increased $4.0 million from the increase in new moving and storage locations.
• Personnel and fleet maintenance and repair costs increased $46.6 million in the second quarter of fiscal 2018 compared with the same period last year. Personnel expense was largely impacted by a special discretionary bonus paid to our local field management teams. Higher repair and maintenance spending was due to the larger rental fleet combined with increased repairs on units in preparation for sale.
• Operating earnings at our Moving and Storage operating segment decreased $76.2 million in the second quarter of fiscal 2018 compared with the same period last year. Total revenues climbed $44.8 million and total costs and expenses increased $121.0 million.
• For both the first six months of fiscal 2018 and fiscal 2017 gross truck and trailer capital expenditures were approximately $665 million, for the first six months of fiscal 2018 compared with the first six months of fiscal 2017 proceeds from sales of rental equipment were $256 million compared with $308 million and spending on real estate related acquisitions and projects were approximately $258 million compared with $252 million.
• Cash and credit availability at the Moving and Storage operating segment was $939.9 million at September 30, 2017 compared with $804.7 million at March 31, 2017.
• On July 5, 2017, the Board declared a cash dividend on our Common Stock of $1.00 per share to holders of record on July 20, 2017. The dividend was paid on August 3, 2017.

AMERCO will hold its investor call for the second quarter of fiscal 2018 on Thursday, November 9, 2017, 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., 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, 2017, which is on file with the SEC.