AMERCO 2005 Annual Report
Dear Fellow Shareholders,
I am proud of our team’s solid execution during fiscal 2005. Our Company finished the year with strong results and is positively positioned for the upcoming year. This is our 60th year serving the do it yourself moving public.
We delivered outstanding operational performance in our self-moving and storage business. The company delivered fiscal 2005 reported net earnings available to common shareholders of $76.5 million or $3.68 per share verses a net loss of $15.8 million or a net loss per share of $.76 a year ago. Fiscal 2005 results include $1.56 per share of litigation settlement proceeds.
Shareholder value grew over the course of the past year reflecting the solid growth of our self-moving and storage operations.
As in the years past, our focus is on strengthening operational efficiencies through precision rental fleet price structuring and utilization. During fiscal 2005, more than 9,000 new trucks rolled into our fleet and onto the road. We are continuing to upgrade our fleet with many more thousands of new trucks in fiscal 2006. This new equipment will optimize our maintenance program as well as increase fleet availability, driving revenues and profitability.
During fiscal 2005, progress in our self-storage segment was outstanding. Storage revenue at our owned and managed facilities grew 8.7% percent. Occupancy rates increased 7.3 percentage points, for a year-over-year net gain of 23,000 rooms rented.
As we concentrate on operations, we will continue to focus on optimizing the use of our existing facilities, systems, programs and services to maximize our potential. Our self-storage strategy includes increasing co-branding and other affiliations through our eMove network.
Our eMove online marketplace enables us to leverage our existing infrastructure with minimal capital commitments.
Today, U-Haul has 1,936 self-storage affiliates. These independent facilities strengthen our presence in the self- storage industry. Our thrust remains building relationships through fee-based structures rather than building more rental facilities.
Republic Western Insurance Company, our property and casualty insurance subsidiary, continues to follow its plan to exit non U-Haul related lines of business. Our life insurance subsidiary, Oxford Life Insurance Company, ended the year with profits that were less than fiscal 2004, reflecting the settlement of disputed litigation, yet it received an upgrade in its financial-strength ratings by A.M. Best.