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U-HAUL HOLDING COMPANY REPORTS THIRD QUARTER FISCAL 2023 FINANCIAL RESULTS

Published: 2023-02-08 21:43:00 ET

RENO, Nev., Feb. 8, 2023 /PRNewswire/ -- U-Haul Holding Company (NYSE: UHAL, UHAL.B), 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 its third quarter ended December 31, 2022, of $199.2 million compared to $281.5 million for the same period last year.

For the nine-month period ended December 31, 2022, net earnings available to shareholders were $885.3 million compared to $1,036.5 million for the same period last year.

"Customers continue to be interested in service and value for their dollar," stated Joe Shoen, chairman of U-Haul Holding Company. "We must improve in both to retain existing customers and attract new ones. We have plans to accomplish both. We are focused on cost reduction and execution in both self-move and self-storage."

Highlights of Third Quarter Fiscal 2023 Results

Self-moving equipment rental revenues decreased $76.7 million or 8% during the third quarter of fiscal 2023, compared with the third quarter of fiscal 2022. Transactions and revenue for both our In-Town and one-way markets decreased. Compared to the same period last year, we increased the number of retail locations, independent dealers, trucks, and trailers in the rental fleet.
Self-storage revenues increased $31.1 million, or 20% during the third quarter of fiscal 2023, compared with the third quarter of fiscal 2022. The average monthly number of occupied units increased by 57,229 units, during the third quarter of fiscal 2023 compared with the same period last year. Occupancy for all locations decreased 0.7% to 82.9% from the third quarter of last year to this year while occupancy for the subsection of these locations that have been at 80% occupancy for the last two years decreased 0.8% to 94.6%. The growth in revenues and square feet rented comes from a combination of occupancy gains at existing locations, the addition of new capacity to the portfolio and from an improvement in average revenue per occupied feet. Over the last twelve months, we added approximately 6.2 million net rentable square feet.
For the third quarter of fiscal 2023 compared with the third quarter of fiscal 2022, depreciation, net of gains on sales increased $10.1 million. This was a combination of depreciation expense on the rental equipment fleet increasing $4.6 million and a decrease on gains from the sales of rental trucks of $1.1 million from a decline in resale values. All other depreciation, primarily real estate related, increased $4.5 million.
For the first nine months of fiscal 2023 and fiscal 2022, gross rental equipment capital expenditures totaled approximately $1,016 million compared with $809 million, Proceeds from the sales of rental equipment totaled $527 million compared with $471 million. Spending on real estate related acquisitions and projects totaled approximately $1,003 million compared with $783 million, respectively.
Fleet maintenance and repair costs increased $34.7 million in the third quarter of fiscal 2023 compared with the same period last year due to maintenance resulting from a larger fleet combined with the slower rotation of new equipment into the fleet and older equipment out of the fleet.
Operating earnings at our Moving and Storage operating segment decreased $99.1 million in the third quarter of fiscal 2023 compared with the same period last year. Total revenues decreased $25.2 million and total costs and expenses increased $74.0 million.
Cash and credit availability at the Moving and Storage operating segment was $2,894.9 million as of December 31, 2022 compared with $2,723.2 million as of March 31, 2022.
On December 7, 2022, we declared a cash dividend on our Non-Voting Common Stock of $0.04 per share to holders of record on December 19, 2022. The dividend was paid on December 30, 2022.
Upon the issuance of the UHAL.B shares in November 2022 we are required to report earnings per share in accordance with the two-class method. Pages 9 and 10 of this release contain a reconciliation of these results for this year as well as what prior periods would have looked like if the two-class method had been applied to prior periods.

Corporate Actions

During the third quarter, the Company announced several corporate actions taken by an Independent Special Committee of its Board of Directors. This included changing the name of AMERCO to U-Haul Holding Company, the creation of a class of non-voting common stock, and a 9-for-1 dividend of these shares to all existing Company shareholders of record as of November 3, 2022. The Company began trading 176,470,092 shares of non-voting common stock on November 10, 2022 on Nasdaq under the ticker symbol UHALB. Subsequently, the Board announced a regular dividend policy for the new class of shares of $0.04 per share per quarter and transferred its voting common stock and non-voting common stock to the New York Stock Exchange from the NASDAQ Global Select Market under the ticker symbols UHAL and UHAL.B.

U-Haul Holding Company will hold its investor call for the third quarter of fiscal 2023 on Thursday, February 9, 2023, at 8 a.m. Arizona Time (10 a.m. Eastern). The call will be broadcast live over the Internet at investors.uhaul.com. To hear a simulcast of the call, or a replay, visit investors.uhaul.com.

About U-Haul Holding Company

U-Haul Holding Company 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.

About U-Haul

Since 1945, U-Haul has been the No. 1 choice of do-it-yourself movers, with a network of more than 23,000 locations across all 50 states and 10 Canadian provinces. Our customers' patronage has enabled the U-Haul fleet to grow to approximately 186,000 trucks, 128,000 trailers and 46,000 towing devices. U-Haul is the third largest self-storage operator in North America and offers nearly 934,000 rentable storage units and 79.7 million square feet of self-storage space at owned and managed facilities. U-Haul is the largest retailer of propane in the U.S., and continues to be the largest installer of permanent trailer hitches in the automotive aftermarket industry. U-Haul has been recognized repeatedly as a leading "Best for Vets" employer and was recently named one of the 15 Healthiest Workplaces in America.

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 U-Haul Holding Company's business and future operating results, please refer to our Form 10-Q for the quarter ended December 31, 2022, 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 third quarter of fiscal 2023 and 2022.

		Quarter Ended December 31,
		2022		2021
		(Unaudited)
		(In thousands)
Self-moving equipment rentals	$	898,819	$	975,552
Self-storage revenues		190,483		159,424
Self-moving and self-storage product and service sales		74,851		75,402
Property management fees		10,080		9,651
Life insurance premiums		24,399		27,010
Property and casualty insurance premiums		26,852		25,618
Net investment and interest income		52,294		31,184
Other revenue		97,558		100,495
Consolidated revenue	$	1,375,336	$	1,404,336

Listed below are revenues and earnings from operations at each of our operating segments for the third quarter of fiscal 2023 and 2022.

		Quarter Ended December 31,
		2022		2021
		(Unaudited)
		(In thousands)
Moving and storage
Revenues	$	1,296,407	$	1,321,580
Earnings from operations before equity in earnings of subsidiaries		304,717		403,853
Property and casualty insurance
Revenues		28,466		29,820
Earnings from operations		10,846		9,657
Life insurance
Revenues		52,962		56,417
Earnings from operations		5,213		3,603
Eliminations
Revenues		(2,499)		(3,481)
Earnings from operations before equity in earnings of subsidiaries		(373)		(389)
Consolidated Results
Revenues		1,375,336		1,404,336
Earnings from operations		320,403		416,724

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 locations follows:

	Quarter Ended December 31,
	2022	2021
	(Unaudited)
	(In thousands, except occupancy rate)
Unit count as of December 31	659	582
Square footage as of December 31	55,004	48,836
Average monthly number of units occupied	540	483
Average monthly occupancy rate based on unit count	82.9 %	83.6 %
Average monthly square footage occupied	46,651	42,239

Listed below on a consolidated basis are revenues for our major product lines for the first nine months of fiscal 2023 and 2022.

		Nine Months Ended December 31,
		2022		2021
		(Unaudited)
		(In thousands)
Self-moving equipment rentals	$	3,151,619	$	3,189,990
Self-storage revenues		549,246		450,302
Self-moving and self-storage product and service sales		281,066		272,478
Property management fees		28,496		26,847
Life insurance premiums		75,636		84,628
Property and casualty insurance premiums		72,542		64,986
Net investment and interest income		116,376		102,963
Other revenue		401,059		349,252
Consolidated revenue	$	4,676,040	$	4,541,446

Listed below are revenues and earnings from operations at each of our operating segments for the first nine months of fiscal 2023 and 2022.

		Nine Months Ended December 31,
		2022	2021
		(Unaudited)
		(In thousands)
Moving and storage
Revenues	$	4,456,863	4,291,833
Earnings from operations before equity in earnings of subsidiaries		1,301,277	1,442,836
Property and casualty insurance
Revenues		74,911	82,815
Earnings from operations		24,883	34,078
Life insurance
Revenues		152,761	176,061
Earnings from operations		8,638	13,882
Eliminations
Revenues		(8,495)	(9,263)
Earnings from operations before equity in earnings of subsidiaries		(1,141)	(1,163)
Consolidated Results
Revenues		4,676,040	4,541,446
Earnings from operations		1,333,657	1,489,633

	Nine Months Ended December 31,
	2022	2021
	(Unaudited)
	(In thousands, except occupancy rate)
Unit count as of December 31	659	582
Square footage as of December 31	55,004	48,836
Average monthly number of units occupied	533	465
Average monthly occupancy rate based on unit count	84.2 %	82.6 %
Average monthly square footage occupied	46,012	40,884

U-HAUL HOLDING COMPANY AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED BALANCE SHEETS

		December 31,		March 31,
		2022		2022
		(Unaudited)
		(In thousands)
ASSETS
Cash and cash equivalents	$	2,510,619	$	2,704,137
Reinsurance recoverables and trade receivables, net		208,182		229,343
Inventories and parts, net		150,140		158,888
Prepaid expenses		228,260		236,915
Investments, fixed maturities and marketable equities		2,723,201		2,893,399
Investments, other		518,455		543,755
Deferred policy acquisition costs, net		159,924		103,828
Other assets		57,272		60,409
Right of use assets – financing, net		504,640		620,824
Right of use assets – operating, net		63,856		74,382
Related party assets		75,549		47,851
		7,200,098		7,673,731
Property, plant and equipment, at cost:
Land		1,504,507		1,283,142
Buildings and improvements		6,728,424		5,974,639
Furniture and equipment		898,468		846,132
Rental trailers and other rental equipment		784,394		615,679
Rental trucks		5,167,168		4,638,814
		15,082,961		13,358,406
Less: Accumulated depreciation		(4,166,731)		(3,732,556)
Total property, plant and equipment, net		10,916,230		9,625,850
Total assets	$	18,116,328	$	17,299,581
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued expenses	$	703,412	$	677,785
Notes, loans and finance leases payable, net		6,200,397		6,022,497
Operating lease liabilities		63,402		74,197
Policy benefits and losses, claims and loss expenses payable		980,200		978,254
Liabilities from investment contracts		2,396,702		2,336,238
Other policyholders' funds and liabilities		12,579		10,812
Deferred income		45,222		49,157
Deferred income taxes, net		1,301,037		1,265,358
Total liabilities		11,702,951		11,414,298

Common stock		10,497		10,497
Non-voting common stock		176		-
Additional paid-in capital		453,643		453,819
Accumulated other comprehensive income (loss)		(284,116)		46,384
Retained earnings		6,910,827		6,052,233
Cost of common stock in treasury, net		(525,653)		(525,653)
Cost of preferred stock in treasury, net		(151,997)		(151,997)
Total stockholders' equity		6,413,377		5,885,283
Total liabilities and stockholders' equity	$	18,116,328	$	17,299,581

U-HAUL HOLDING COMPANY AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

		Quarter Ended December 31,
		2022		2021
		(Unaudited)
		(In thousands, except share and per share data)
Revenues:
Self-moving equipment rentals	$	898,819	$	975,552
Self-storage revenues		190,483		159,424
Self-moving and self-storage products and service sales		74,851		75,402
Property management fees		10,080		9,651
Life insurance premiums		24,399		27,010
Property and casualty insurance premiums		26,852		25,618
Net investment and interest income		52,294		31,184
Other revenue		97,558		100,495
Total revenues		1,375,336		1,404,336

Costs and expenses:
Operating expenses		733,469		658,095
Commission expenses		95,980		105,155
Cost of sales		54,616		57,042
Benefits and losses		41,372		47,266
Amortization of deferred policy acquisition costs		6,979		7,947
Lease expense		7,792		7,394
Depreciation, net of gains on disposal		113,866		103,736
Net losses on disposal of real estate		859		977
Total costs and expenses		1,054,933		987,612

Earnings from operations		320,403		416,724
Other components of net periodic benefit costs		(304)		(280)
Interest expense		(59,041)		(44,042)
Fees on early extinguishment of debt		(50)		(956)
Pretax earnings		261,008		371,446
Income tax expense		(61,764)		(89,980)
Earnings available to common stockholders	$	199,244	$	281,466
Basic and diluted earnings per share of Common Stock	$	0.98	$	1.89
Weighted average shares outstanding of Common Stock: Basic and diluted		19,607,788		19,607,788
Basic and diluted earnings per share of Series N Non-Voting Common Stock	$	1.02	$	1.39
Weighted average shares outstanding of Series N Non-Voting Common Stock: Basic and diluted		176,470,092		176,470,092

U-HAUL HOLDING COMPANYAND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

		Nine Months Ended December 31,
		2022		2021
		(Unaudited)
		(In thousands, except share and per share data)
Revenues:
Self-moving equipment rentals	$	3,151,619	$	3,189,990
Self-storage revenues		549,246		450,302
Self-moving and self-storage products and service sales		281,066		272,478
Property management fees		28,496		26,847
Life insurance premiums		75,636		84,628
Property and casualty insurance premiums		72,542		64,986
Net investment and interest income		116,376		102,963
Other revenue		401,059		349,252
Total revenues		4,676,040		4,541,446

Costs and expenses:
Operating expenses		2,278,230		1,968,698
Commission expenses		339,814		346,200
Cost of sales		206,912		193,448
Benefits and losses		122,835		139,194
Amortization of deferred policy acquisition costs		21,623		23,520
Lease expense		22,951		22,482
Depreciation, net of gains on disposal		344,980		361,201
Net (gains) losses on disposal of real estate		5,038		(2,930)
Total costs and expenses		3,342,383		3,051,813

Earnings from operations		1,333,657		1,489,633
Other components of net periodic benefit costs		(912)		(840)
Interest expense		(166,033)		(122,765)
Fees on early extinguishment of debt		(1,009)		(956)
Pretax earnings		1,165,703		1,365,072
Income tax expense		(280,442)		(328,533)
Earnings available to common stockholders	$	885,261	$	1,036,539
Basic and diluted earnings per share of Common Stock	$	5.38	$	6.64
Weighted average shares outstanding of Common Stock: Basic and diluted		19,607,788		19,607,788
Basic and diluted earnings per share of Series N Non-Voting Common Stock	$	4.42	$	5.14
Weighted average shares outstanding of Series N Non-Voting Common Stock: Basic and diluted		176,470,092		176,470,092

EARNINGS PER SHARE

We calculate earnings per share using the two-class method in accordance with Accounting Standards Codification Topic 260, Earnings Per Share. The two-class method allocates the undistributed earnings available to common stockholders to the Company's outstanding common stock, $0.25 par value (the "Voting Common Stock") and the Series N Non-Voting Common Stock, $0.001 par value (the "Non-Voting Common Stock") based on each share's percentage of total weighted average shares outstanding. The Voting Common Stock and Non-Voting Common Stock are allocated 10% and 90%, respectively, of our undistributed earnings available to common stockholders. This represents earnings available to common stockholders less the dividends declared for both the Voting Common Stock and Non-Voting Common Stock.

Our undistributed earnings per share is calculated by taking the undistributed earnings available to common stockholders and dividing this number by the weighted average shares outstanding for the respective stock. If there was a dividend declared for that period, the dividend per share is added to the undistributed earnings per share to calculate the basic and diluted earnings per share. The process is used for both Voting Common Stock and Non-Voting Common Stock.

The calculation of basic and diluted earnings per share for the quarter and nine months ended December 31, 2022 and 2021 for our Voting Common Stock and Non-Voting Common Stock were as follows:

		For the Quarter Ended
		December 31,
		2022		2021
		(Unaudited)
		(In thousands, except share and pershare amounts)

Weighted average shares outstanding of Voting Common Stock		19,607,788		19,607,788
Total weighted average shares outstanding for Voting Common Stock and Non-Voting Common Stock		196,077,880		196,077,880
Percent of weighted average shares outstanding of Voting Common Stock		10 %		10 %

Net earnings available to common stockholders	$	199,244	$	281,466
Voting Common Stock dividends declared		–		(9,804)
Non-Voting Common Stock dividends declared		(7,059)		–
Undistributed earnings available to common stockholders	$	192,185	$	271,662
Undistributed earnings available to common stockholders allocated to Voting Common Stock	$	19,219	$	27,166

Undistributed earnings per share of Voting Common Stock	$	0.98	$	1.39
Dividends declared per share of Voting Common Stock	$	–	$	0.50
Basic and diluted earnings per share of Voting Common Stock	$	0.98	$	1.89


Weighted average shares outstanding of Non-Voting Common Stock		176,470,092		176,470,092
Total weighted average shares outstanding for Voting Common Stock and Non-Voting Common Stock		196,077,880		196,077,880
Percent of weighted average shares outstanding of Non-Voting Common Stock		90 %		90 %

Net earnings available to common stockholders	$	199,244	$	281,466
Voting Common Stock dividends declared		–		(9,804)
Non-Voting Common Stock dividends declared		(7,059)		–
Undistributed earnings available to common stockholders	$	192,185	$	271,662
Undistributed earnings available to common stockholders allocated to Non-Voting Common Stock	$	172,967	$	244,496

Undistributed earnings per share of Non-Voting Common Stock	$	0.98	$	1.39
Dividends declared per share of Non-Voting Common Stock	$	0.04	$	–
Basic and diluted earnings per share of Non-Voting Common Stock	$	1.02	$	1.39

		For the Nine Months Ended
		December 31,
		2022		2021
		(Unaudited)
		(In thousands, except share and pershare amounts)

Weighted average shares outstanding of Voting Common Stock		19,607,788		19,607,788
Total weighted average shares outstanding for Voting Common Stock and Non-Voting Common Stock		196,077,880		196,077,880
Percent of weighted average shares outstanding of Voting Common Stock		10 %		10 %

Net earnings available to common stockholders	$	885,261	$	1,036,539
Voting Common Stock dividends declared		(19,608)		(29,412)
Non-Voting Common Stock dividends declared		(7,059)		–
Undistributed earnings available to common stockholders	$	858,594	$	1,007,127
Undistributed earnings available to common stockholders allocated to Voting Common Stock	$	85,859	$	100,713

Undistributed earnings per share of Voting Common Stock	$	4.38	$	5.14
Dividends declared per share of Voting Common Stock	$	1.00	$	1.50
Basic and diluted earnings per share of Voting Common Stock	$	5.38	$	6.64


Weighted average shares outstanding of Non-Voting Common Stock		176,470,092		176,470,092
Total weighted average shares outstanding for Voting Common Stock and Non-Voting Common Stock		196,077,880		196,077,880
Percent of weighted average shares outstanding of Non-Voting Common Stock		90 %		90 %

Net earnings available to common stockholders	$	885,261	$	1,036,539
Voting Common Stock dividends declared		(19,608)		(29,412)
Non-Voting Common Stock dividends declared		(7,059)		–
Undistributed earnings available to common stockholders	$	858,594	$	1,007,127
Undistributed earnings available to common stockholders allocated to Non-Voting Common Stock	$	772,735	$	906,414

Undistributed earnings per share of Non-Voting Common Stock	$	4.38	$	5.14
Dividends declared per share of Non-Voting Common Stock	$	0.04	$	–
Basic and diluted earnings per share of Non-Voting Common Stock	$	4.42	$	5.14

NON-GAAP FINANCIAL RECONCILIATION SCHEDULE

As of April 1, 2019, we adopted the new accounting standard for leases. Part of this adoption resulted in approximately $1 billion of property, plant and equipment, net ("PPE") being reclassed to right of use assets - financing, net ("ROU-financing"). As of December 31, 2022, the balance of ROU-financing also includes the rental equipment purchased under new financing liability leases during fiscal 2023. The tables below show adjusted PPE as of September 30, 2022 and March 31, 2022, by including the ROU-financing. The assets included in ROU-financing are not a true book value as some of the assets are recorded at between 70% and 100% of value based on the lease agreement. This non-GAAP measure is intended as a supplemental measure of our balance sheet that is neither required by, nor presented in accordance with, GAAP. We believe that the use of this non-GAAP measure provides an additional tool for investors to use in evaluating our financial condition. This non-GAAP measure should not be considered in isolation or as a substitute for other measures calculated in accordance with GAAP.

						December 31,		March 31,
						2022		2022
		December 31,		ROUAssets		Property, Plantand Equipment		Property,Plant andEquipment
		2022		Financing		Adjusted		Adjusted
		(Unaudited)
		(In thousands)

Property, plant and equipment, at cost
Land	$	1,504,507	$	-	$	1,504,507	$	1,283,142
Buildings and improvements		6,728,424		-		6,728,424		5,974,639
Furniture and equipment		898,468		14,731		913,199		860,863
Rental trailers and other rental equipment		784,394		152,867		937,261		785,193
Rental trucks		5,167,168		982,119		6,149,287		5,753,062
Subtotal		15,082,961		1,149,717		16,232,678		14,656,899
Less: Accumulated depreciation		(4,166,731)		(645,077)		(4,811,808)		(4,410,225)
Total property, plant and equipment, net	$	10,916,230	$	504,640	$	11,420,870	$	10,246,674

						March 31,
						2022
		March 31,		ROUAssets		Property, Plantand Equipment
		2022		Financing		Adjusted
		(Unaudited)
		(In thousands)
Property, plant and equipment, at cost
Land	$	1,283,142	$	-	$	1,283,142
Buildings and improvements		5,974,639		-		5,974,639
Furniture and equipment		846,132		14,731		860,863
Rental trailers and other rental equipment		615,679		169,514		785,193
Rental trucks		4,638,814		1,114,248		5,753,062
Right-of-use assets, gross		13,358,406		1,298,493		14,656,899
Less: Accumulated depreciation		(3,732,556)		(677,669)		(4,410,225)
Total property, plant and equipment, net	$	9,625,850	$	620,824	$	10,246,674

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SOURCE U-Haul Holding Company