AMERCO /NV/ [UHAL] Filings

10-Q 1 uhal-20210930.htm SEPTEMBER 30, 2021 10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended September 30, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from __________________ to __________________

Commission File Number 001-11255


State or other jurisdiction of incorporation or organization	Registrant, State of Incorporation, Address and Telephone Number	I.R.S. Employer Identification No.



Nevada	AMERCO	88-0106815
	(A Nevada Corporation)
	5555 Kietzke Lane Suite 100
	Reno , Nevada 89511
	Telephone ( 775 ) 688-6300

	N/A
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock , $0.25 par value	UHAL	NASDAQ Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☒ Accelerated filer ☐

Non-accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐ .

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

19,607,788 shares of AMERCO Common Stock, $0.25 par value, were outstanding at October 29, 2021.

TABLE OF CONTENTS

		Page
	PART I FINANCIAL INFORMATION
Item 1.	Financial Statements
	a) Condensed Consolidated Balance Sheets as of September 30, 2021 (unaudited) and March 31, 2021	1
	b) Condensed Consolidated Statements of Operations for the Quarters Ended September 30, 2021 and 2020 (unaudited)	2
	c) Condensed Consolidated Statements of Operations for the Six Months Ended September 30, 2021 and 2020 (unaudited)	3
	d) Condensed Consolidated Statements of Comprehensive Income (Loss) for the Quarters and Six Months Ended September 30, 2021 and 2020 (unaudited)	4
	e) Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Quarters Ended September 30, 2021 and 2020 (unaudited)	5
	f) Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Six Months Ended September 30, 2021 and 2020 (unaudited)	6
	g) Condensed Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2021 and 2020 (unaudited)	7
	h) Notes to Condensed Consolidated Financial Statements (unaudited)	8
Item 2 .	Management’s Discussion and Analysis of Financial Condition and Results of Operations	46
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	60
Item 4.	Controls and Procedures	62

	PART II OTHER INFORMATION
Item 1.	Legal Proceedings	63
Item 1A.	Risk Factors	63
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	64
Item 3.	Defaults Upon Senior Securities	64
Item 4.	Mine Safety Disclosures	64
Item 5.	Other Information	64
Item 6.	Exhibits	64

Part i Financial information

Item 1. Financial Statements

AMERCO AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED balance sheets

		September 30,		March 31,
		2021		2021
		(Unaudited)
		(In thousands, except share data)
ASSETS
Cash and cash equivalents	$	2,430,233	$	1,194,012
Reinsurance recoverables and trade receivables, net		227,935		224,426
Inventories and parts, net		142,955		105,577
Prepaid expenses		202,339		469,144
Investments, fixed maturities and marketable equities		2,845,147		2,695,656
Investments, other		571,942		489,759
Deferred policy acquisition costs, net		97,138		89,749
Other assets		51,626		47,730
Right of use assets - financing, net		752,990		877,038
Right of use assets - operating, net		85,237		92,505
Related party assets		38,773		35,395
		7,446,315		6,320,991
Property, plant and equipment, at cost:
Land		1,172,648		1,075,813
Buildings and improvements		5,477,544		5,163,705
Furniture and equipment		811,337		786,505
Rental trailers and other rental equipment		536,814		477,921
Rental trucks		4,278,732		3,909,724
		12,277,075		11,413,668
Less: Accumulated depreciation		(3,386,162)		(3,083,053)
Total property, plant and equipment, net		8,890,913		8,330,615
Total assets	$	16,337,228	$	14,651,606
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued expenses	$	694,284	$	645,575
Notes, loans and finance leases payable, net		5,335,278		4,668,907
Operating lease liability		85,199		92,510
Policy benefits and losses, claims and loss expenses payable		1,016,505		997,701
Liabilities from investment contracts		2,276,829		2,161,530
Other policyholders' funds and liabilities		10,943		12,420
Deferred income		51,212		42,592
Deferred income taxes, net		1,312,281		1,178,489
Total liabilities		10,782,531		9,799,724

Commitments and contingencies (notes 4, 8, 9 and 10)
Stockholders' equity:
Series preferred stock, with or without par value, 50,000,000 shares authorized:
Series A preferred stock, with no par value, 6,100,000 shares authorized;
6,100,000 shares issued and none outstanding as of September 30 and March 31, 2021		–		–
Series B preferred stock, with no par value, 100,000 shares authorized; none
issued and outstanding as of September 30 and March 31, 2021		–		–
Serial common stock, with or without par value, 250,000,000 shares authorized:
Serial common stock of $0.25 par value, 10,000,000 shares authorized;
none issued and outstanding as of September 30 and March 31, 2021		–		–
Common stock, with $0.25 par value, 250,000,000 shares authorized:
Common stock of $0.25 par value, 250,000,000 shares authorized; 41,985,700
issued and 19,607,788 outstanding as of September 30 and March 31, 2021		10,497		10,497
Additional paid-in capital		453,819		453,819
Accumulated other comprehensive income		74,207		106,857
Retained earnings		5,693,824		4,958,359
Cost of common stock in treasury, net (22,377,912 shares as of September 30 and March 31, 2021)		(525,653)		(525,653)
Cost of preferred stock in treasury, net (6,100,000 shares as of September 30 and March 31, 2021)		(151,997)		(151,997)
Total stockholders' equity		5,554,697		4,851,882
Total liabilities and stockholders' equity	$	16,337,228	$	14,651,606

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMERCO AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED Statements of operations

		Quarter Ended September 30,
		2021		2020
		(Unaudited)
		(In thousands, except share and per share amounts)
Revenues:
Self-moving equipment rentals	$	1,179,061	$	931,030
Self-storage revenues		153,485		115,273
Self-moving and self-storage products and service sales		92,191		98,628
Property management fees		8,747		7,840
Life insurance premiums		28,913		31,057
Property and casualty insurance premiums		22,499		15,869
Net investment and interest income		36,780		33,333
Other revenue		142,578		91,878
Total revenues		1,664,254		1,324,908

Costs and expenses:
Operating expenses		696,074		574,083
Commission expenses		127,896		99,365
Cost of sales		66,491		60,933
Benefits and losses		44,630		45,452
Amortization of deferred policy acquisition costs		6,750		5,552
Lease expense		7,441		6,870
Depreciation, net of gains on disposal of ($36,075 and $28,062, respectively)		135,748		137,438
Net losses on disposal of real estate		523		3,425
Total costs and expenses		1,085,553		933,118

Earnings from operations		578,701		391,790
Other components of net periodic benefit costs		(280)		(246)
Interest expense		(39,545)		(40,525)
Pretax earnings		538,876		351,019
Income tax expense		(128,978)		(84,654)
Earnings available to common stockholders	$	409,898	$	266,365
Basic and diluted earnings per common stock	$	20.90	$	13.58
Weighted average common stock outstanding: Basic and diluted		19,607,788		19,607,788

Related party revenues for the second quarter of fiscal 2022 and 2021, net of eliminations, were $8.7 million and $7.8 million, respectively.

Related party costs and expenses for the second quarter of fiscal 2022 and 2021, net of eliminations, were $27.1 million and $21.2 million, respectively.

Please see Note 10, Related Party Transactions, of the Notes to Condensed Consolidated Financial Statements for more information on the related party revenues and costs and expenses.

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMERCO AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED Statements of operations

		Six Months Ended September 30,
		2021		2020
		(Unaudited)
		(In thousands, except share and per share amounts)
Revenues:
Self-moving equipment rentals	$	2,214,438	$	1,585,315
Self-storage revenues		290,878		224,228
Self-moving and self-storage products and service sales		197,076		189,978
Property management fees		17,196		15,187
Life insurance premiums		57,618		61,965
Property and casualty insurance premiums		39,368		29,603
Net investment and interest income		71,779		50,315
Other revenue		248,757		155,554
Total revenues		3,137,110		2,312,145

Costs and expenses:
Operating expenses		1,310,603		1,066,745
Commission expenses		241,045		168,540
Cost of sales		136,406		113,764
Benefits and losses		91,928		85,029
Amortization of deferred policy acquisition costs		15,573		12,440
Lease expense		15,088		13,473
Depreciation, net of gains on disposal of ($86,398 and $29,131 respectively)		257,465		303,109
Net (gains) losses on disposal of real estate		(3,907)		3,169
Total costs and expenses		2,064,201		1,766,269

Earnings from operations		1,072,909		545,876
Other components of net periodic benefit costs		(560)		(493)
Interest expense		(78,723)		(80,046)
Pretax earnings		993,626		465,337
Income tax expense		(238,553)		(111,246)
Earnings available to common stockholders	$	755,073	$	354,091
Basic and diluted earnings per common stock	$	38.51	$	18.06
Weighted average common stock outstanding: Basic and diluted		19,607,788		19,607,788

Related party revenues for the first six months of fiscal 2022 and 2021, net of eliminations, were $17.2 million and $15.2 million, respectively.

Related party costs and expenses for the first six months of fiscal 2022 and 2021, net of eliminations, were $50.7 million and $37.2 million, respectively.

Please see Note 10, Related Party Transactions, of the Notes to Condensed Consolidated Financial Statements for more information on the related party revenues and costs and expenses.

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMERCO AND CONSOLIDATED SUBSIDIARIES

Condensed consolidatED statements of COMPREHENSIVE INCOME (loss)

Quarter Ended September 30, 2021		Pre-tax		Tax		Net
		(Unaudited)
		(In thousands)
Comprehensive income:
Net earnings	$	538,876	$	(128,978)	$	409,898
Other comprehensive income (loss):
Foreign currency translation		992		–		992
Unrealized net gain on investments		52,525		(11,143)		41,382
Change in fair value of cash flow hedges		(74)		18		(56)
Amounts reclassified into earnings on hedging activities		1,003		(246)		757
Total other comprehensive income (loss)		54,446		(11,371)		43,075

Total comprehensive income	$	593,322	$	(140,349)	$	452,973

Quarter Ended September 30, 2020		Pre-tax		Tax		Net
		(Unaudited)
		(In thousands)
Comprehensive income:
Net earnings	$	351,019	$	(84,654)	$	266,365
Other comprehensive income (loss):
Foreign currency translation		290		–		290
Unrealized net gain on investments		115,186		(24,347)		90,839
Change in fair value of cash flow hedges		46		(11)		35
Amounts reclassified into earnings on hedging activities		961		(237)		724
Total other comprehensive income (loss)		116,483		(24,595)		91,888

Total comprehensive income	$	467,502	$	(109,249)	$	358,253

Six Months Ended September 30, 2021		Pre-tax		Tax		Net
		(Unaudited)
		(In thousands)
Comprehensive income:
Net earnings	$	993,626	$	(238,553)	$	755,073
Other comprehensive income (loss):
Foreign currency translation		(2,400)		–		(2,400)
Unrealized net loss on investments		(39,926)		8,281		(31,645)
Change in fair value of cash flow hedges		(142)		35		(107)
Amounts reclassified into earnings on hedging activities		1,990		(488)		1,502
Total other comprehensive income (loss)		(40,478)		7,828		(32,650)

Total comprehensive income	$	953,148	$	(230,725)	$	722,423

Six Months Ended September 30, 2020		Pre-tax		Tax		Net
		(Unaudited)
		(In thousands)
Comprehensive income:
Net earnings	$	465,337	$	(111,246)	$	354,091
Other comprehensive income (loss):
Foreign currency translation		(2,627)		–		(2,627)
Unrealized net gain on investments		56,224		(10,884)		45,340
Change in fair value of cash flow hedges		(659)		162		(497)
Amounts reclassified into earnings on hedging activities		1,708		(420)		1,288
Total other comprehensive income (loss)		54,646		(11,142)		43,504

Total comprehensive income	$	519,983	$	(122,388)	$	397,595

The accompanying notes are an integral part of these condensed consolidated financial statements.

Amerco and consolidated subsidiaries

condensed consolidated statements of changes in stockholders’ equity

		Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Less: Treasury Common Stock		Less: Treasury Preferred Stock		Total Stockholders' Equity
	(Unaudited)
	(In thousands)
Balance as of June 30, 2021	$	10,497	$	453,819	$	31,132	$	5,293,730	$	(525,653)	$	(151,997)	$	5,111,528
Foreign currency translation		–		–		992		–		–		–		992
Unrealized net gain on investments, net of tax		–		–		41,382		–		–		–		41,382
Change in fair value of cash flow hedges, net of tax		–		–		(56)		–		–		–		(56)
Amounts reclassified into earnings on hedging activities		–		–		757		–		–		–		757
Net earnings		–		–		–		409,898		–		–		409,898
Common stock dividends: ($0.50 per share for fiscal 2022)		–		–		–		(9,804)		–		–		(9,804)
Net activity		–		–		43,075		400,094		–		–		443,169
Balance as of September 30, 2021	$	10,497	$	453,819	$	74,207	$	5,693,824	$	(525,653)		(151,997)	$	5,554,697

Balance as of June 30, 2020	$	10,497	$	453,819	$	(13,732)	$	4,484,248	$	(525,653)	$	(151,997)	$	4,257,182
Foreign currency translation		–		–		290		–		–		–		290
Unrealized net gain on investments, net of tax		–		–		90,839		–		–		–		90,839
Change in fair value of cash flow hedges, net of tax		–		–		35		–		–		–		35
Amounts reclassified into earnings on hedging activities		–		–		724		–		–		–		724
Net earnings		–		–		–		266,365		–		–		266,365
Common stock dividends: ($0.50 per share for fiscal 2021)		–		–		–		(9,804)		–		–		(9,804)
Net activity		–		–		91,888		256,561		–		–		348,449
Balance as of September 30, 2020	$	10,497	$	453,819	$	78,156	$	4,740,809	$	(525,653)	$	(151,997)	$	4,605,631

The accompanying notes are an integral part of these condensed consolidated financial statements.

Amerco and consolidated subsidiaries

condensed consolidated statements of changes in stockholders’ equity

		Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Less: Treasury Common Stock		Less: Treasury Preferred Stock		Total Stockholders' Equity
	(Unaudited)
	(In thousands)
Balance as of March 31, 2021	$	10,497	$	453,819	$	106,857	$	4,958,359	$	(525,653)	$	(151,997)	$	4,851,882
Foreign currency translation		–		–		(2,400)		–		–		–		(2,400)
Unrealized net gain on investments, net of tax		–		–		(31,645)		–		–		–		(31,645)
Change in fair value of cash flow hedges, net of tax		–		–		(107)		–		–		–		(107)
Amounts reclassified into earnings on hedging activities		–		–		1,502		–		–		–		1,502
Net earnings		–		–		–		755,073		–		–		755,073
Common stock dividends: ($1.00 per share for fiscal 2022)		–		–		–		(19,608)		–		–		(19,608)
Net activity		–		–		(32,650)		735,465		–		–		702,815
Balance as of September 30, 2021	$	10,497	$	453,819	$	74,207	$	5,693,824	$	(525,653)		(151,997)	$	5,554,697

Balance as of March 31, 2020	$	10,497	$	453,819	$	34,652	$	4,399,402	$	(525,653)	$	(151,997)	$	4,220,720
Adjustment for adoption of ASU 2016 - 13		–		–		–		(2,880)		–		–		(2,880)
Foreign currency translation		–		–		(2,627)		–		–		–		(2,627)
Unrealized net gain on investments, net of tax		–		–		45,340		–		–		–		45,340
Change in fair value of cash flow hedges, net of tax		–		–		(497)		–		–		–		(497)
Amounts reclassified into earnings on hedging activities		–		–		1,288		–		–		–		1,288
Net earnings		–		–		–		354,091		–		–		354,091
Common stock dividends: ($0.50 per share for fiscal 2021)		–		–		–		(9,804)		–		–		(9,804)
Net activity		–		–		43,504		341,407		–		–		384,911
Balance as of September 30, 2020	$	10,497	$	453,819	$	78,156	$	4,740,809	$	(525,653)	$	(151,997)	$	4,605,631

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMERCO AND CONSOLIDATED subsidiaries

Condensed consolidatED statements of cash flows

		Six Months Ended September 30,
		2021		2020
		(Unaudited)
		(In thousands)
Cash flows from operating activities:
Net earnings	$	755,073	$	354,091
Adjustments to reconcile net earnings to cash provided by operations:
Depreciation		343,863		332,240
Amortization of deferred policy acquisition costs		15,573		12,440
Amortization of premiums and accretion of discounts related to investments, net		9,151		6,926
Amortization of debt issuance costs		2,791		2,755
Interest credited to policyholders		31,894		24,241
Change in allowance for losses on trade receivables		222		(140)
Change in allowance for inventories and parts reserves		8,352		106
Net gains on disposal of personal property		(86,398)		(29,131)
Net (gains) losses on disposal of real estate		(3,907)		3,169
Net gains on sales of investments		(3,432)		(1,288)
Net (gains) losses on equity investments		(4,342)		2,254
Deferred income taxes		138,916		80,198
Net change in other operating assets and liabilities:
Reinsurance recoverables and trade receivables		(3,771)		(28,288)
Inventories and parts		(45,718)		386
Prepaid expenses		266,780		116,064
Capitalization of deferred policy acquisition costs		(17,807)		(13,404)

AMERCO /NV/ [UHAL] Filings
10-Q	[2021-11-03]
10-Q	[2021-08-04]
10-K	[2021-05-26]
10-Q	[2021-02-03]
10-Q	[2020-11-04]
10-Q	[2020-08-05]
10-K	[2020-05-27]
10-Q	[2020-02-05]
10-Q	[2019-11-06]
10-Q	[2019-08-07]
10-K	[2019-05-29]
10-Q	[2019-02-06]
10-Q	[2018-11-07]
10-Q	[2018-08-08]
10-K	[2018-05-30]
10-Q	[2018-02-07]
10-Q	[2017-11-08]
10-Q	[2017-08-09]
10-K	[2017-05-24]
10-Q	[2017-02-08]
10-Q	[2016-11-09]
10-Q	[2016-08-03]
10-K	[2016-05-25]
10-Q	[2016-02-03]
10-Q	[2015-11-04]
10-Q	[2015-08-05]
10-K	[2015-05-27]
10-Q	[2015-02-04]
10-Q	[2014-11-05]
10-Q	[2014-08-06]
10-K	[2014-05-28]
10-Q	[2014-02-05]
10-Q	[2013-11-06]
10-Q	[2013-08-07]
10-K	[2013-06-05]
10-Q	[2013-02-06]
10-Q	[2012-11-07]
10-Q	[2012-08-08]
10-K	[2012-06-06]
10-Q	[2012-02-08]