AMERCO Reports Fourth Quarter and Fiscal 2004 Financial Results

June 17, 2004 Download

AMERCO (Nasdaq: UHAL), the parent of U-Haul International, Inc., Oxford Life Insurance Company, Republic Western Insurance Company and Amerco Real Estate Company, today reported its 2004 financial results.

2004 Financial Results

AMERCO and its consolidated entities reported revenues for the fourth quarter and fiscal year ended March 31, 2004 of $457.3 million and $2.17 billion, respectively. This compares with revenues of $449 million and $2.13 billion for the same periods of fiscal 2003. The Company reported a 2004 fourth quarter net loss of $56.2 million, or $2.70 per share, compared with a net loss of $28.4 million, or $1.37 per share for the same period last year. Fiscal 2004 results were a net loss of $15.8 million, or $.76 per share. This compares with a net loss of $37.9 million, or $1.82 per share for the prior fiscal year.

Included in these results were non-recurring financial restructuring costs, after-tax, of $27.3 million for fiscal 2004 compared to $4 million for fiscal 2003.

Moving and Storage Operations

Revenues for U-Haul moving and storage operations were $1.75 billion for fiscal 2004. This represents an increase of 7 percent over fiscal 2003. Earnings from operations were $140.5 million for fiscal 2004 compared with $71 million for the prior fiscal year. A number of factors, including better price realization and improved product mix, had a major impact on the operating profitability of U-Haul moving and storage.

Insurance Operations

Oxford Life Insurance Company revenues for the year were $166.8 million compared with $175.3 million last year. Earnings from operations were $11.3 million compared with operational losses of $1.4 million last year. Improved investment income was the primary factor for improvement.

Republic Western Insurance Company reported revenues of $114.9 million for the year compared with $174.9 million for the prior year. An operating loss of $36 million was recorded for the year compared with an operating loss of $8 million for the prior year. These losses primarily relate to costs associated with discontinued lines of property and casualty insurance of non-U-Haul related entities.

SAC Holdings

During the fourth quarter, the majority of SAC Holdings was deconsolidated from the financial statements of AMERCO. AMERCO is no longer the primary beneficiary of a majority of its variable interests in SAC Holdings. This deconsolidation has reduced assets and liabilities $472 million and $629 million, respectively, and increased shareholder equity $157 million. Included in fiscal 2004 results for AMERCO are $177.9 million of revenues, $55.2 million of earnings from operations, $67.9 million of interest expense and a net loss of $9.4 million related to its variable interests in SAC Holdings that are being deconsolidated. The revenues, earnings from operations, interest expense, and net pr