RENO, Nev.--(BUSINESS WIRE)--U-Haul Holding Company (NYSE: UHAL) (NYSE: 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 common shareholders for its second quarter ended September 30, 2023, of $273.5 million, compared with net earnings of $349.9 million for the same period last year. Earnings per share for Non-Voting Shares (UHAL.B) were $1.40 for the second quarter of fiscal 2024 compared to $1.73 for the same period in fiscal 2023.
For the six-month period ended September 30, 2023, net earnings available to shareholders were $530.3 million compared with net earnings of $688.2 million for the same period last year. Earnings per share for Non-Voting Shares (UHAL.B) were $2.71 for the six-month period ended September 30, 2023 compared to $3.41 for the same period in fiscal 2023.
“Overall moving activity remains below the same period last year. This affects most of our product lines,” stated Joe Shoen, chairman of U-Haul Holding Company. “We are close to stabilizing In-town moving transactions by better inventory placement. This is slow going, but there are some gains available where inventory is optimized. Implementation of existing programs is our best choice at this time.”
Highlights of Second Quarter Fiscal 2024 Results
- Self-moving equipment rental revenues decreased $92.6 million, or 8.0% for the second quarter of fiscal 2024 compared with the second quarter of fiscal 2023. Transactions, revenue and average miles driven per transaction decreased. These declines were more pronounced in our one-way markets. Compared to the same period last year, we increased the number of box trucks and trailers in the rental fleet as well as the number of Company operated retail locations.
- Self-storage revenues increased $23.3 million, or 12.6% for the second quarter of fiscal 2024 compared with the second quarter of fiscal 2023. The average monthly number of occupied units during the quarter increased by 7%, or 38,046 units, compared to the same quarter last year. Our reported occupancy of all properties regardless of length of time in the portfolio decreased 1.3% to 83.5% for the second quarter. The occupancy ratio for the subset of these properties that have been stabilized at 80% for the last 24 months also decreased 1.6% to 95.0% during the quarter. 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 a 6% improvement in average revenue per occupied foot. During the quarter, we added approximately 0.9 million net rentable square feet.
- Sales of self-moving and self-storage products and services decreased $5.3 million, or 5.5% compared with the second quarter of fiscal 2023 due to decreased sales of hitches, moving supplies and propane. The decrease in self-moving transactions has negatively affected the sales of moving supplies.
- For the second quarter of fiscal 2024 compared with the second quarter of fiscal 2023, depreciation, net of gains on sales increased $36.8 million. Page four of this press release contains additional details about this change.
- For the first six months of fiscal 2024 and fiscal 2023 gross rental equipment capital expenditures were approximately $974 million compared with $718 million, proceeds from the sales of rental equipment were $405 million compared with $325 million and spending on real estate related acquisitions and projects were approximately $633 million compared with $584 million.
- Fleet maintenance and repair costs increased $17.2 million in the second quarter of fiscal 2024 compared with the same period last year due to higher cost of preventative maintenance combined with the costs associated with preparing trucks for sale.
- Operating earnings at our Moving and Storage operating segment decreased $113.2 million compared with the same period last year to $401.7 million and represent the third best second quarter result in the Company’s history. Total revenues decreased $71.3 million and total costs and expenses increased $42.0 million.
- Cash and credit availability at the Moving and Storage segment was $2,554.9 million as of September 30, 2023 compared with $2,499.2 million at March 31, 2023.
U-Haul Holding Company will hold its investor call for the second quarter of fiscal 2024 on Thursday, November 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. U-Haul Truck Share 24/7 offers secure access to U-Haul trucks every hour of every day through the customer dispatch option on their smartphones and our patented Live Verify technology. Our customers' patronage has enabled the U-Haul fleet to grow to approximately 192,200 trucks, 138,500 trailers and 44,500 towing devices. U-Haul is the third largest self-storage operator in North America and offers 967,000 rentable storage units and 83.3 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 September 30, 2023, 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 second quarter of fiscal 2024 and 2023.
Quarter Ended September 30, |
||||||||
2023 |
2022 |
|||||||
|
(Unaudited) |
|||||||
(In thousands) |
||||||||
Self-moving equipment rentals |
$ |
1,069,405 |
$ |
1,162,025 |
||||
Self-storage revenues |
|
208,890 |
|
|
185,586 |
|
||
Self-moving and self-storage product and service sales |
|
91,571 |
|
|
96,864 |
|
||
Property management fees |
|
9,267 |
|
|
9,277 |
|
||
Life insurance premiums |
|
22,498 |
|
|
25,456 |
|
||
Property and casualty insurance premiums |
|
25,571 |
|
|
25,718 |
|
||
Net investment and interest income |
|
64,738 |
|
|
30,509 |
|
||
Other revenue |
|
157,920 |
|
|
167,429 |
|
||
Consolidated revenue |
$ |
1,649,860 |
|
$ |
1,702,864 |
|
||
Listed below are revenues and earnings from operations at each of our operating segments for the second quarter of fiscal 2024 and 2023.
Quarter Ended September 30, |
||||||||
2023 |
2022 |
|||||||
|
(Unaudited) |
|||||||
(In thousands) |
||||||||
Moving and storage |
||||||||
Revenues |
$ |
1,565,578 |
|
$ |
1,636,858 |
|
||
Earnings from operations before equity in earnings of subsidiaries |
|
401,704 |
|
|
514,943 |
|
||
Property and casualty insurance |
|
|
||||||
Revenues |
|
31,852 |
|
|
23,363 |
|
||
Earnings from operations |
|
15,419 |
|
|
5,686 |
|
||
Life insurance |
|
|
||||||
Revenues |
|
55,522 |
|
|
45,696 |
|
||
Earnings (losses) from operations |
|
5,608 |
|
|
(297 |
) |
||
Eliminations |
|
|
||||||
Revenues |
|
(3,092 |
) |
|
(3,053 |
) |
||
Earnings from operations before equity in earnings of subsidiaries |
|
(376 |
) |
|
(386 |
) |
||
Consolidated Results |
|
|
||||||
Revenues |
|
1,649,860 |
|
|
1,702,864 |
|
||
Earnings from operations |
|
422,355 |
|
|
519,946 |
|
||
Debt Metrics
Debt Metrics |
||||||||||||||||||||
(in thousands)(unaudited) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
|||||||||||||||
2023 |
2023 |
2023 |
2022 |
2022 |
||||||||||||||||
Real estate secured debt |
$ |
2,771,027 |
|
$ |
2,744,416 |
|
$ |
2,660,878 |
|
$ |
2,682,036 |
|
$ |
2,860,764 |
|
|||||
Unsecured debt |
|
1,200,000 |
|
|
1,200,000 |
|
|
1,200,000 |
|
|
1,200,000 |
|
|
1,200,000 |
|
|||||
Fleet secured debt |
|
2,392,021 |
|
|
2,305,116 |
|
|
2,205,824 |
|
|
2,277,387 |
|
|
2,196,935 |
|
|||||
Other secured debt |
|
73,752 |
|
|
74,250 |
|
|
76,648 |
|
|
77,399 |
|
|
78,871 |
|
|||||
Total debt |
|
6,436,800 |
|
|
6,323,782 |
|
|
6,143,350 |
|
|
6,236,822 |
|
|
6,336,570 |
|
|||||
Moving and Storage cash |
$ |
2,068,790 |
|
$ |
2,302,380 |
|
$ |
2,034,242 |
|
$ |
2,429,943 |
|
$ |
3,025,390 |
|
|||||
Moving and Storage assets |
|
16,156,182 |
|
|
15,742,770 |
|
|
15,211,493 |
|
|
15,234,112 |
|
|
15,243,508 |
|
|||||
Moving and Storage EBITDA (TTM) |
|
|
1,739,727 |
|
|
1,816,319 |
|
|
1,888,513 |
|
|
1,906,046 |
|
|
1,995,170 |
|
||||
Net debt to EBITDA |
|
2.5 |
|
|
2.2 |
|
|
2.2 |
|
|
2.0 |
|
|
1.7 |
|
|||||
Net debt to total assets |
|
27.0 |
% |
|
25.5 |
% |
|
27.0 |
% |
|
25.0 |
% |
|
21.7 |
% |
|||||
Percent of debt floating |
|
6.3 |
% |
|
7.7 |
% |
|
8.4 |
% |
|
8.3 |
% |
|
10.5 |
% |
|||||
Percent of debt fixed |
|
93.7 |
% |
|
92.3 |
% |
|
91.6 |
% |
|
91.7 |
% |
|
89.5 |
% |
|||||
Percent of debt unsecured |
|
18.6 |
% |
|
19.0 |
% |
|
19.5 |
% |
|
19.2 |
% |
|
18.9 |
% |
|||||
Unencumbered asset ratio* |
|
3.74 |
x |
|
3.55 |
x |
|
3.44 |
x |
|
3.35 |
x |
|
2.91 |
x | |||||
* Unencumbered asset value compared to unsecured debt committed, outstanding or not. Unencumbered assets valued at the higher of historical cost or allocated NOI valued at a 10% cap rate, minimum required is 2.0x |
||||||||||||||||||||
The components of depreciation, net of gains on disposals for the second quarter of fiscal 2024 and 2023 are as follows:
Quarter Ended September 30, |
||||||||
2023 |
2022 |
|||||||
(Unaudited) |
||||||||
(In thousands) |
||||||||
Depreciation expense - rental equipment |
$ |
140,341 |
|
$ |
129,220 |
|
||
Depreciation expense - non rental equipment |
|
23,392 |
|
|
21,546 |
|
||
Depreciation expense - real estate |
|
37,192 |
|
|
30,895 |
|
||
Total depreciation expense |
$ |
200,925 |
|
$ |
181,661 |
|
||
|
|
|||||||
Gains on disposals of rental equipment |
|
(46,928 |
) |
$ |
(64,312 |
) |
||
(Gain) loss on disposals of non-rental equipment |
|
125 |
|
|
(31 |
) |
||
Total gains on disposals equipment |
$ |
(46,803 |
) |
$ |
(64,343 |
) |
||
|
|
|||||||
Depreciation, net of gains on disposals |
$ |
154,122 |
|
$ |
117,318 |
|
||
|
|
|||||||
Losses on disposals of real estate |
$ |
1,715 |
|
$ |
1,872 |
|
||
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 September 30, |
||||||
2023 |
2022 |
|||||
|
|
(Unaudited) |
||||
(In thousands, except occupancy rate) |
||||||
Unit count as of September 30 |
691 |
|
638 |
|
||
Square footage as of September 30 |
58,402 |
|
53,303 |
|
||
Average monthly number of units occupied |
578 |
|
540 |
|
||
Average monthly occupancy rate based on unit count |
84.2 |
% |
85.4 |
% |
||
End of September occupancy rate based on unit count |
|
83.5 |
% |
|
84.8 |
% |
Average monthly square footage occupied |
49,931 |
|
46,538 |
|
||
Listed below on a consolidated basis are revenues for our major product lines for the first six months of fiscal 2024 and 2023.
Six Months Ended September 30, |
||||||||
2023 |
2022 |
|||||||
(Unaudited) |
||||||||
(In thousands) |
||||||||
Self-moving equipment rentals |
$ |
2,068,611 |
$ |
2,252,800 |
||||
Self-storage revenues |
|
407,851 |
|
|
358,763 |
|
||
Self-moving and self-storage product and service sales |
|
192,443 |
|
|
206,215 |
|
||
Property management fees |
|
18,444 |
|
|
18,416 |
|
||
Life insurance premiums |
|
45,629 |
|
|
51,237 |
|
||
Property and casualty insurance premiums |
|
45,893 |
|
|
45,690 |
|
||
Net investment and interest income |
|
129,330 |
|
|
64,082 |
|
||
Other revenue |
|
281,967 |
|
|
303,501 |
|
||
Consolidated revenue |
$ |
3,190,168 |
|
$ |
3,300,704 |
|
||
Listed below are revenues and earnings from operations at each of our operating segments for the first six months of fiscal 2024 and 2023.
Six Months Ended September 30, |
||||||||
2023 |
2022 |
|||||||
(Unaudited) |
||||||||
(In thousands) |
||||||||
Moving and storage |
||||||||
Revenues |
$ |
3,025,091 |
|
$ |
3,160,456 |
|
||
Earnings from operations before equity in earnings of subsidiaries |
|
788,395 |
|
|
996,560 |
|
||
Property and casualty insurance |
||||||||
Revenues |
|
59,691 |
|
|
46,445 |
|
||
Earnings from operations |
|
27,401 |
|
|
14,037 |
|
||
Life insurance |
||||||||
Revenues |
|
111,203 |
|
|
99,799 |
|
||
Earnings from operations |
|
6,964 |
|
|
5,619 |
|
||
Eliminations |
||||||||
Revenues |
|
(5,817 |
) |
|
(5,996 |
) |
||
Earnings from operations before equity in earnings of subsidiaries |
|
(747 |
) |
|
(768 |
) |
||
Consolidated Results |
||||||||
Revenues |
|
3,190,168 |
|
|
3,300,704 |
|
||
Earnings from operations |
|
822,013 |
|
|
1,015,448 |
|
||
The components of depreciation, net of gains on disposals for the first six months of fiscal 2024 and 2023 are as follows:
Six Months Ended September 30, |
||||||||
2023 |
2022 |
|||||||
(Unaudited) |
||||||||
(In thousands) |
||||||||
Depreciation expense - rental equipment |
$ |
275,533 |
|
$ |
255,741 |
|
||
Depreciation expense - non rental equipment |
|
45,694 |
|
|
43,167 |
|
||
Depreciation expense - real estate |
|
73,173 |
|
|
60,897 |
|
||
Total depreciation expense |
$ |
394,400 |
|
$ |
359,805 |
|
||
|
|
|||||||
Gains on disposals of rental equipment |
$ |
(102,735 |
) |
$ |
(128,313 |
) |
||
(Gain) loss on disposals of non-rental equipment |
|
271 |
|
|
(378 |
) |
||
Total gains on disposals equipment |
$ |
(102,464 |
) |
$ |
(128,691 |
) |
||
|
|
|||||||
Depreciation, net of gains on disposals |
$ |
291,936 |
|
$ |
231,114 |
|
||
|
|
|||||||
Losses on disposals of real estate |
$ |
2,736 |
|
$ |
4,179 |
|
||
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:
Six Months Ended September 30, |
||||||
2023 |
2022 |
|||||
|
|
(Unaudited) |
||||
(In thousands, except occupancy rate) |
||||||
Unit count as of September 30 |
691 |
|
638 |
|
||
Square footage as of September 30 |
58,402 |
|
53,303 |
|
||
Average monthly number of units occupied |
529 |
|
529 |
|
||
Average monthly occupancy rate based on unit count |
83.5 |
% |
85.0 |
% |
||
End of September occupancy rate based on unit count |
|
83.5 |
% |
|
84.8 |
% |
Average monthly square footage occupied |
49,279 |
|
45,692 |
|
||
Self-Storage Portfolio Summary |
|||||||||||||||
As of September 30, 2023 |
|||||||||||||||
(unaudited) |
|||||||||||||||
U-Haul Owned Store Data by State |
|||||||||||||||
Annual |
|||||||||||||||
State/ |
Units |
Rentable |
Revenue |
Occupancy |
|||||||||||
Province |
Stores |
Occupied |
Square Feet |
Per Foot |
During Qtr |
||||||||||
Texas |
91 |
35,797 |
4,111,184 |
$14.41 |
79.6 |
% |
|||||||||
California |
87 |
|
32,507 |
|
3,001,993 |
|
$20.54 |
|
83.6 |
% |
|||||
Illinois |
80 |
|
35,570 |
|
3,523,410 |
|
$15.28 |
|
86.1 |
% |
|||||
Florida |
79 |
|
33,396 |
|
3,158,462 |
|
$17.91 |
|
89.2 |
% |
|||||
Pennsylvania |
68 |
|
27,269 |
|
2,781,615 |
|
$17.06 |
|
78.9 |
% |
|||||
New York |
64 |
|
26,418 |
|
2,421,752 |
|
$22.58 |
|
81.3 |
% |
|||||
Ohio |
58 |
|
24,350 |
|
2,426,477 |
|
$14.61 |
|
85.2 |
% |
|||||
Michigan |
56 |
|
19,583 |
|
1,963,914 |
|
$15.25 |
|
87.3 |
% |
|||||
Georgia |
49 |
|
22,076 |
|
2,245,458 |
|
$15.82 |
|
88.9 |
% |
|||||
Arizona |
43 |
|
24,278 |
|
2,514,577 |
|
$15.50 |
|
88.4 |
% |
|||||
Wisconsin |
42 |
|
16,712 |
|
1,878,988 |
|
$13.00 |
|
82.3 |
% |
|||||
Washington |
37 |
|
12,448 |
|
1,341,759 |
|
$16.64 |
|
77.5 |
% |
|||||
North Carolina |
36 |
|
16,683 |
|
1,688,842 |
|
$14.89 |
|
84.7 |
% |
|||||
Tennessee |
34 |
|
14,861 |
|
1,373,264 |
|
$14.29 |
|
92.5 |
% |
|||||
New Jersey |
33 |
|
15,585 |
|
1,350,564 |
|
$20.16 |
|
89.6 |
% |
|||||
Ontario |
32 |
|
10,530 |
|
1,100,303 |
|
$22.12 |
|
74.3 |
% |
|||||
Missouri |
32 |
|
11,481 |
|
1,262,184 |
|
$14.82 |
|
80.6 |
% |
|||||
Massachusetts |
30 |
|
10,861 |
|
984,427 |
|
$19.82 |
|
84.9 |
% |
|||||
Indiana |
30 |
|
9,792 |
|
1,024,809 |
|
$13.70 |
|
83.3 |
% |
|||||
Alabama |
25 |
|
6,779 |
|
769,150 |
|
$13.79 |
|
78.3 |
% |
|||||
Top 20 Totals |
1,006 |
|
406,976 |
|
40,923,132 |
|
$16.58 |
|
84.1 |
% |
|||||
All Others |
440 |
|
170,216 |
|
17,554,877 |
|
$15.75 |
|
84.2 |
% |
|||||
2Q 2024 Totals |
1,446 |
|
577,192 |
|
58,478,009 |
|
$16.34 |
|
84.2 |
% |
|||||
Same Store 2Q24 |
841 |
|
280,565 |
|
25,949,457 |
|
$16.55 |
|
95.0 |
% |
|||||
Same Store 2Q23 |
753 |
|
233,947 |
|
21,916,035 |
|
$15.18 |
|
96.7 |
% |
|||||
Same Store 2Q22 |
619 |
|
179,842 |
|
16,915,706 |
|
$14.47 |
|
96.9 |
% |
|||||
Non Same Store 2Q24 |
605 |
|
296,627 |
|
32,528,552 |
|
$16.11 |
|
75.9 |
% |
|||||
Non Same Store 2Q23 |
636 |
|
307,535 |
|
31,463,318 |
|
$15.48 |
|
78.4 |
% |
|||||
Non Same Store 2Q22 |
702 |
|
300,703 |
|
31,063,602 |
|
$14.00 |
|
78.2 |
% |
|||||
Note: Store Count, Units and NRSF reflect active storage locations for the last month of the reporting quarter. |
|||||||||||||||
Occupancy % reflects average occupancy during the reporting quarter. |
|||||||||||||||
Revenue per foot is the average revenue per occupied foot over the trailing twelve months ending September 2023. |
|||||||||||||||
|
|
||||||||||||||
'Same Store' includes storage locations with rentable storage inventory for more than three years and a capacity change of less than twenty units for any year-over-year period of the reporting month. |
|||||||||||||||
The locations have occupancy each month during the last three years and have achieved 80% or greater physical occupancy for the last two years. |
|||||||||||||||
U-HAUL HOLDING COMPANY AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
September 30, |
March 31, |
|||||||
2023 |
2023 |
|||||||
(Unaudited) |
||||||||
(In thousands) |
||||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ |
2,145,131 |
|
$ |
2,060,524 |
|
||
Reinsurance recoverables and trade receivables, net |
|
212,565 |
|
|
189,498 |
|
||
Inventories and parts |
|
161,535 |
|
|
151,474 |
|
||
Prepaid expenses |
|
263,541 |
|
|
241,711 |
|
||
Investments, fixed maturities and marketable equities |
|
2,534,164 |
|
|
2,770,394 |
|
||
Investments, other |
|
650,151 |
|
|
575,540 |
|
||
Deferred policy acquisition costs, net |
|
121,365 |
|
|
128,463 |
|
||
Other assets |
|
52,769 |
|
|
51,052 |
|
||
Right of use assets – financing, net |
|
377,733 |
|
|
474,765 |
|
||
Right of use assets – operating, net |
|
65,316 |
|
|
58,917 |
|
||
Related party assets |
|
40,140 |
|
|
48,308 |
|
||
|
6,624,410 |
|
|
6,750,646 |
|
|||
Property, plant and equipment, at cost: |
|
|
||||||
Land |
|
1,613,871 |
|
|
1,537,206 |
|
||
Buildings and improvements |
|
7,649,849 |
|
|
7,088,810 |
|
||
Furniture and equipment |
|
966,211 |
|
|
928,241 |
|
||
Rental trailers and other rental equipment |
|
912,046 |
|
|
827,696 |
|
||
Rental trucks |
|
5,921,507 |
|
|
5,278,340 |
|
||
|
17,063,484 |
|
|
15,660,293 |
|
|||
Less: Accumulated depreciation |
|
(4,666,444 |
) |
|
(4,310,205 |
) |
||
Total property, plant and equipment, net |
|
12,397,040 |
|
|
11,350,088 |
|
||
Total assets |
$ |
19,021,450 |
|
$ |
18,100,734 |
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
||||||
Liabilities: |
|
|
||||||
Accounts payable and accrued expenses |
$ |
757,988 |
|
$ |
761,039 |
|
||
Notes, loans and finance leases payable, net |
|
6,400,899 |
|
|
6,108,042 |
|
||
Operating lease liabilities |
|
64,580 |
|
|
58,373 |
|
||
Policy benefits and losses, claims and loss expenses payable |
|
865,397 |
|
|
880,202 |
|
||
Liabilities from investment contracts |
|
2,393,590 |
|
|
2,398,884 |
|
||
Other policyholders' funds and liabilities |
|
7,677 |
|
|
8,232 |
|
||
Deferred income |
|
56,821 |
|
|
52,282 |
|
||
Deferred income taxes, net |
|
1,444,120 |
|
|
1,329,489 |
|
||
Total liabilities |
|
11,991,072 |
|
|
11,596,543 |
|
||
|
|
|||||||
Common stock |
|
10,497 |
|
|
10,497 |
|
||
Non-voting common stock |
|
176 |
|
|
176 |
|
||
Additional paid-in capital |
|
453,643 |
|
|
453,643 |
|
||
Accumulated other comprehensive loss |
|
(275,664 |
) |
|
(285,623 |
) |
||
Retained earnings |
|
7,519,376 |
|
|
7,003,148 |
|
||
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 |
|
7,030,378 |
|
|
6,504,191 |
|
||
Total liabilities and stockholders' equity |
$ |
19,021,450 |
|
$ |
18,100,734 |
|
||
U-HAUL HOLDING COMPANY AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
Quarter Ended September 30, |
||||||||
2023 |
2022 |
|||||||
(Unaudited) |
||||||||
(In thousands, except share and per share data) |
||||||||
Revenues: |
||||||||
Self-moving equipment rentals |
$ |
1,069,405 |
|
$ |
1,162,025 |
|
||
Self-storage revenues |
|
208,890 |
|
|
185,586 |
|
||
Self-moving and self-storage products and service sales |
|
91,571 |
|
|
96,864 |
|
||
Property management fees |
|
9,267 |
|
|
9,277 |
|
||
Life insurance premiums |
|
22,498 |
|
|
25,456 |
|
||
Property and casualty insurance premiums |
|
25,571 |
|
|
25,718 |
|
||
Net investment and interest income |
|
64,738 |
|
|
30,509 |
|
||
Other revenue |
|
157,920 |
|
|
167,429 |
|
||
Total revenues |
|
1,649,860 |
|
|
1,702,864 |
|
||
|
|
|||||||
Costs and expenses: |
|
|
||||||
Operating expenses |
|
835,258 |
|
|
811,594 |
|
||
Commission expenses |
|
111,961 |
|
|
125,341 |
|
||
Cost of sales |
|
66,620 |
|
|
72,625 |
|
||
Benefits and losses |
|
42,553 |
|
|
39,512 |
|
||
Amortization of deferred policy acquisition costs |
|
6,826 |
|
|
6,972 |
|
||
Lease expense |
|
8,450 |
|
|
7,684 |
|
||
Depreciation, net of gains on disposals |
|
154,122 |
|
|
117,318 |
|
||
Net losses on real estate |
|
1,715 |
|
|
1,872 |
|
||
Total costs and expenses |
|
1,227,505 |
|
|
1,182,918 |
|
||
|
|
|||||||
Earnings from operations |
|
422,355 |
|
|
519,946 |
|
||
Other components of net periodic benefit costs |
|
(364 |
) |
|
(304 |
) |
||
Interest expense |
|
(63,943 |
) |
|
(57,193 |
) |
||
Fees on early extinguishment of debt |
|
- |
|
|
(959 |
) |
||
Pretax earnings |
|
358,048 |
|
|
461,490 |
|
||
Income tax expense |
|
(84,540 |
) |
|
(111,624 |
) |
||
Earnings available to common shareholders |
$ |
273,508 |
|
$ |
349,866 |
|
||
Basic and diluted earnings per share of Common Stock |
$ |
1.36 |
|
$ |
2.23 |
|
||
Weighted average shares outstanding of Common Stock: Basic and diluted |
|
19,607,788 |
|
|
19,607,788 |
|
||
Basic and diluted earnings per share of Non-Voting Common Stock |
$ |
1.40 |
|
$ |
1.73 |
|
||
Weighted average shares outstanding of Non-Voting Common Stock: Basic and diluted |
|
176,470,092 |
|
|
176,470,092 |
|
||
U-HAUL HOLDING COMPANY AND CONSOLIDATED ENTITIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
Six Months Ended September 30, |
||||||||
2023 |
2022 |
|||||||
|
(Unaudited) |
|||||||
(In thousands, except share and per share data) |
||||||||
Revenues: |
||||||||
Self-moving equipment rentals |
$ |
2,068,611 |
|
$ |
2,252,800 |
|
||
Self-storage revenues |
|
407,851 |
|
|
358,763 |
|
||
Self-moving and self-storage products and service sales |
|
192,443 |
|
|
206,215 |
|
||
Property management fees |
|
18,444 |
|
|
18,416 |
|
||
Life insurance premiums |
|
45,629 |
|
|
51,237 |
|
||
Property and casualty insurance premiums |
|
45,893 |
|
|
45,690 |
|
||
Net investment and interest income |
|
129,330 |
|
|
64,082 |
|
||
Other revenue |
|
281,967 |
|
|
303,501 |
|
||
Total revenues |
|
3,190,168 |
|
|
3,300,704 |
|
||
|
|
|||||||
Costs and expenses: |
|
|
||||||
Operating expenses |
|
1,598,499 |
|
|
1,544,761 |
|
||
Commission expenses |
|
218,888 |
|
|
243,834 |
|
||
Cost of sales |
|
137,295 |
|
|
152,296 |
|
||
Benefits and losses |
|
87,897 |
|
|
79,269 |
|
||
Amortization of deferred policy acquisition costs |
|
14,871 |
|
|
14,644 |
|
||
Lease expense |
|
16,033 |
|
|
15,159 |
|
||
Depreciation, net of gains on disposals |
|
291,936 |
|
|
231,114 |
|
||
Net losses on real estate |
|
2,736 |
|
|
4,179 |
|
||
Total costs and expenses |
|
2,368,155 |
|
|
2,285,256 |
|
||
|
|
|||||||
Earnings from operations |
|
822,013 |
|
|
1,015,448 |
|
||
Other components of net periodic benefit costs |
|
(729 |
) |
|
(608 |
) |
||
Interest expense |
|
(124,541 |
) |
|
(106,992 |
) |
||
Fees on early extinguishment of debt |
|
- |
|
|
(959 |
) |
||
Pretax earnings |
|
696,743 |
|
|
906,889 |
|
||
Income tax expense |
|
(166,397 |
) |
|
(218,678 |
) |
||
Earnings available to common shareholders |
$ |
530,346 |
|
$ |
688,211 |
|
||
Basic and diluted earnings per share of Common Stock |
$ |
2.63 |
|
$ |
4.41 |
|
||
Weighted average shares outstanding of Common Stock: Basic and diluted |
|
19,607,788 |
|
|
19,607,788 |
|
||
Basic and diluted earnings per share of Non-Voting Common Stock |
$ |
2.71 |
|
$ |
3.41 |
|
||
Weighted average shares outstanding of 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 quarters ended September 30, 2023 and 2022 for our Voting Common Stock and Non-Voting Common Stock were as follows:
|
For the Quarter Ended |
|||||||
|
September 30, |
|||||||
|
2023 |
2022 |
||||||
|
(Unaudited) |
|||||||
|
(In thousands, except share and per share 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 |
$ |
273,508 |
|
$ |
349,866 |
|
||
Voting Common Stock dividends declared |
|
- |
|
|
(9,804 |
) |
||
Non-Voting Common Stock dividends declared |
|
(7,059 |
) |
|
- |
|
||
Undistributed earnings available to common stockholders |
$ |
266,449 |
|
$ |
340,062 |
|
||
Undistributed earnings available to common stockholders allocated to Voting Common Stock |
$ |
26,645 |
|
$ |
34,006 |
|
||
|
|
|
||||||
Undistributed earnings per share of Voting Common Stock |
$ |
1.36 |
|
$ |
1.73 |
|
||
Dividends declared per share of Voting Common Stock |
$ |
- |
|
$ |
0.50 |
|
||
Basic and diluted earnings per share of Voting Common Stock |
$ |
1.36 |
|
$ |
2.23 |
|
||
|
|
|
||||||
|
|
|
||||||
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 |
$ |
273,508 |
|
$ |
349,866 |
|
||
Voting Common Stock dividends declared |
|
- |
|
|
(9,804 |
) |
||
Non-Voting Common Stock dividends declared |
|
(7,059 |
) |
|
- |
|
||
Undistributed earnings available to common stockholders |
$ |
266,449 |
|
$ |
340,062 |
|
||
Undistributed earnings available to common stockholders allocated to Non-Voting Common Stock |
$ |
239,804 |
|
$ |
306,056 |
|
||
|
|
|
||||||
Undistributed earnings per share of Non-Voting Common Stock |
$ |
1.36 |
|
$ |
1.73 |
|
||
Dividends declared per share of Non-Voting Common Stock |
$ |
0.04 |
|
$ |
- |
|
||
Basic and diluted earnings per share of Non-Voting Common Stock |
$ |
1.40 |
|
$ |
1.73 |
|
||
The calculation of basic and diluted earnings per share for the first six months ended September 30, 2023 and 2022 for our Voting Common Stock and Non-Voting Common Stock were as follows:
|
For the Six Months Ended |
|||||||
|
September 30, |
|||||||
|
2023 |
2022 |
||||||
|
(Unaudited) |
|||||||
|
(In thousands, except share and per share 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 |
$ |
530,346 |
|
$ |
688,211 |
|
||
Voting Common Stock dividends declared |
|
- |
|
|
(19,608 |
) |
||
Non-Voting Common Stock dividends declared |
|
(14,118 |
) |
|
- |
|
||
Undistributed earnings available to common stockholders |
$ |
516,228 |
|
$ |
668,603 |
|
||
Undistributed earnings available to common stockholders allocated to Voting Common Stock |
$ |
51,623 |
|
$ |
66,860 |
|
||
|
|
|
||||||
Undistributed earnings per share of Voting Common Stock |
$ |
2.63 |
|
$ |
3.41 |
|
||
Dividends declared per share of Voting Common Stock |
$ |
- |
|
$ |
1.00 |
|
||
Basic and diluted earnings per share of Voting Common Stock |
$ |
2.63 |
|
$ |
4.41 |
|
||
|
|
|
||||||
|
|
|
||||||
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 |
$ |
530,346 |
|
$ |
688,211 |
|
||
Voting Common Stock dividends declared |
|
- |
|
|
(19,608 |
) |
||
Non-Voting Common Stock dividends declared |
|
(14,118 |
) |
|
- |
|
||
Undistributed earnings available to common stockholders |
$ |
516,228 |
|
$ |
668,603 |
|
||
Undistributed earnings available to common stockholders allocated to Non-Voting Common Stock |
$ |
464,605 |
|
$ |
601,743 |
|
||
|
|
|
||||||
Undistributed earnings per share of Non-Voting Common Stock |
$ |
2.63 |
|
$ |
3.41 |
|
||
Dividends declared per share of Non-Voting Common Stock |
$ |
0.08 |
|
$ |
- |
|
||
Basic and diluted earnings per share of Non-Voting Common Stock |
$ |
2.71 |
|
$ |
3.41 |
|
||
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 June 30, 2023, the balance of ROU-financing also includes the rental equipment purchased under new financing liability leases during fiscal 2024. The tables below show adjusted PPE as of September 30, 2023 and March 31, 2023, 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.
September 30, |
March 31, |
|||||||||||||||
2023 |
2023 |
|||||||||||||||
September 30, |
ROU Assets |
Property, Plant and Equipment |
Property, Plant and Equipment |
|||||||||||||
2022 |
Financing |
Adjusted |
Adjusted |
|||||||||||||
(Unaudited) |
||||||||||||||||
(In thousands) |
||||||||||||||||
Property, plant and equipment, at cost |
||||||||||||||||
Land |
$ |
1,613,871 |
|
$ |
- |
|
$ |
1,613,871 |
|
$ |
1,537,206 |
|
||||
Buildings and improvements |
|
7,649,849 |
|
|
- |
|
|
7,649,849 |
|
|
7,088,810 |
|
||||
Furniture and equipment |
|
966,211 |
|
|
7,109 |
|
|
973,320 |
|
|
937,928 |
|
||||
Rental trailers and other rental equipment |
|
912,046 |
|
|
115,072 |
|
|
1,027,118 |
|
|
979,990 |
|
||||
Rental trucks |
|
5,921,507 |
|
|
816,075 |
|
|
6,737,582 |
|
|
6,228,178 |
|
||||
Right-of-use assets, gross |
|
17,063,484 |
|
|
938,256 |
|
|
18,001,740 |
|
|
16,772,112 |
|
||||
Less: Accumulated depreciation |
|
(4,666,444 |
) |
|
(560,523 |
) |
|
(5,226,967 |
) |
|
(4,947,259 |
) |
||||
Total property, plant and equipment, net |
$ |
12,397,040 |
|
$ |
377,733 |
|
$ |
12,774,773 |
|
$ |
11,824,853 |
|
||||
March 31, |
|
|||||||||||||||
2023 |
|
|||||||||||||||
March 31, |
ROU Assets |
Property, Plant and Equipment |
|
|||||||||||||
2023 |
Financing |
Adjusted |
|
|||||||||||||
(Unaudited) |
|
|||||||||||||||
(In thousands) |
|
|||||||||||||||
Property, plant and equipment, at cost |
|
|||||||||||||||
Land |
$ |
1,537,206 |
|
$ |
- |
|
$ |
1,537,206 |
|
|
||||||
Buildings and improvements |
|
7,088,810 |
|
|
- |
|
|
7,088,810 |
|
|
||||||
Furniture and equipment |
|
928,241 |
|
|
9,687 |
|
|
937,928 |
|
|
||||||
Rental trailers and other rental equipment |
|
827,696 |
|
|
152,294 |
|
|
979,990 |
|
|
||||||
Rental trucks |
|
5,278,340 |
|
|
949,838 |
|
|
6,228,178 |
|
|
||||||
Right-of-use assets, gross |
|
15,660,293 |
|
|
1,111,819 |
|
|
16,772,112 |
|
|
||||||
Less: Accumulated depreciation |
|
(4,310,205 |
) |
|
(637,054 |
) |
|
(4,947,259 |
) |
|
||||||
Total property, plant and equipment, net |
$ |
11,350,088 |
|
$ |
474,765 |
|
$ |
11,824,853 |
|
|
||||||
Non-GAAP Financial Measures
Below is a reconciliation of Moving and Storage non-GAAP financial measures as defined under SEC rules, such as earnings before interest, taxes, depreciation, and amortization ("EBITDA"). The Company believes that these widely accepted measures of operating profitability improve the transparency of the Company's disclosures and provide a meaningful presentation of the Company's results from its core business operations excluding the impact of items not related to the Company's ongoing core business operations and improve the period-to-period comparability of the Company's results from its core business operations. These non-GAAP financial measures are not substitutes for GAAP financial results and should only be considered in conjunction with the Company's financial information that is presented in accordance with GAAP.
Moving and Storage EBITDA (In thousands, unaudited) |
TTM |
|||||||||||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||||
2023 |
2023 |
2023 |
2022 |
2022 |
||||||||||||||||
Earnings from operations * |
$ |
1,187,957 |
|
$ |
1,301,196 |
|
$ |
1,396,122 |
|
$ |
1,435,667 |
|
$ |
1,534,803 |
|
|||||
|
|
|
|
|
||||||||||||||||
Depreciation |
|
768,475 |
|
|
749,210 |
|
|
733,879 |
|
|
721,950 |
|
|
712,896 |
|
|||||
Net gains on disposals |
|
(220,858 |
) |
|
(238,397 |
) |
|
(247,084 |
) |
|
(255,419 |
) |
|
(256,495 |
) |
|||||
Net losses on disposal of real estate |
|
4,153 |
|
|
4,310 |
|
|
5,596 |
|
|
3,848 |
|
|
3,966 |
|
|||||
Depreciation, net of (gains) losses on disposals |
|
551,770 |
|
|
515,123 |
|
|
492,391 |
|
|
470,379 |
|
|
460,367 |
|
|||||
|
|
|
|
|
||||||||||||||||
EBITDA |
$ |
1,739,727 |
|
$ |
1,816,319 |
|
$ |
1,888,513 |
|
$ |
1,906,046 |
|
$ |
1,995,170 |
|
|||||
* before insurance subsidiaries |
||||||||||||||||||||
