AMERCO (UHAL) Bundle
A Brief History of U-Haul
U-Haul Holding Company, a well-known entity in the moving and storage industry, has its roots dating back to 1945 when it was founded by Leonard Shoen in Ridgefield, Washington. The company revolutionized the self-moving industry by providing rental trucks and trailers to consumers. Over the decades, U-Haul expanded its services to include self-storage facilities, making it a comprehensive solution for moving and storage needs.
Financial Performance Overview
As of September 30, 2024, U-Haul reported total revenues of $3,206.6 million, a slight increase from $3,190.2 million in the same period of 2023. The earnings from operations decreased to $608.2 million for the first six months of fiscal 2025, compared to $822.0 million in the prior year, reflecting an overall decline in operational efficiency amid rising costs.
Revenue Breakdown
The revenue streams for U-Haul in the first half of fiscal 2025 were diversified across several categories, as illustrated in the following table:
| Revenue Source | Six Months Ended September 30, 2024 (in thousands) | Six Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Self-moving equipment rental revenues | $2,103,497 | $2,070,767 |
| Self-storage revenues | $440,256 | $407,851 |
| Self-moving and self-storage products and service sales | $184,354 | $192,443 |
| Property management fees | $19,081 | $18,444 |
| Life insurance premiums | $41,228 | $45,629 |
| Property and casualty insurance premiums | $46,996 | $45,893 |
Operating Expenses and Profitability
Operating expenses increased significantly, totaling $1,356.2 million in the first half of fiscal 2025, up from $1,227.5 million in the same period of 2024. Key factors contributing to this rise included higher personnel costs, property taxes, and maintenance expenses.
Debt and Interest Expenses
U-Haul's interest expenses for the first six months of fiscal 2025 amounted to $138.7 million, compared to $124.5 million in the prior year, indicating a rising cost of debt amid increasing interest rates. The company maintained total debt obligations of approximately $6.79 billion as of September 30, 2024.
Cash and Liquidity Position
As of September 30, 2024, U-Haul's cash and cash equivalents were reported at $1,435.6 million, showing a decrease from $1,534.5 million as of March 31, 2024. This liquidity position is crucial for meeting operational needs and capital investments.
Market Position and Future Outlook
U-Haul continues to be a leader in the self-moving and storage industry, with a strategic focus on expanding its service offerings and enhancing customer experience. The company is well-positioned to navigate the challenges of rising operational costs and interest rates, supported by its strong brand and market presence.
A Who Owns AMERCO (UHAL)
Ownership Structure
As of 2024, AMERCO, the parent company of U-Haul, has a dual-class share structure comprising Voting Common Stock and Series N Non-Voting Common Stock. The ownership distribution is as follows:
| Share Class | Shares Outstanding | Ownership Percentage |
|---|---|---|
| Voting Common Stock | 19,607,788 | 10% |
| Series N Non-Voting Common Stock | 176,470,092 | 90% |
Major Shareholders
The Shoen family holds a significant portion of AMERCO's Voting Common Stock through trusts. Key individual shareholders include:
- Edward J. Shoen - President and CEO, significant Voting Common Stock holder.
- James P. Shoen - Vice Chairman, also a major Voting Common Stock holder.
- Mark V. Shoen - Controls the general partner of Mercury Partners, L.P., which owns interests in U-Haul properties.
Shareholder Equity and Financial Data
As of September 30, 2024, AMERCO’s total stockholders' equity was reported at $7,519,398,000. The breakdown of equity components is as follows:
| Equity Component | Value (in thousands) |
|---|---|
| Common Stock | 10,497 |
| Series N Non-Voting Common Stock | 176 |
| Additional Paid-In Capital | 462,548 |
| Accumulated Other Comprehensive Loss | (240,831) |
| Retained Earnings | 7,964,658 |
| Treasury Common Stock | (525,653) |
| Treasury Preferred Stock | (151,997) |
| Total Stockholders' Equity | 7,519,398 |
Stock Performance
AMERCO's stock performance has shown fluctuations. As of September 30, 2024, the stock price stood at approximately $78.50 per share, reflecting a market capitalization of about $15.4 billion based on total outstanding shares.
Dividends
Dividends declared for Series N Non-Voting Common Stock in 2024 included:
| Date Declared | Dividend Per Share | Record Date | Payment Date |
|---|---|---|---|
| June 5, 2024 | $0.05 | June 17, 2024 | June 28, 2024 |
| August 15, 2024 | $0.05 | September 16, 2024 | September 27, 2024 |
Related Party Transactions
For the six months ended September 30, 2024, related party revenues amounted to $19.1 million, while related party costs and expenses totaled $63.4 million.
Conclusion on Ownership
The ownership of AMERCO remains heavily concentrated within the Shoen family, maintaining significant control over the company through their shareholdings while also reflecting a robust financial standing as of 2024.
AMERCO (UHAL) Mission Statement
Overview
AMERCO, the parent company of U-Haul, emphasizes its commitment to providing high-quality rental services and storage solutions. The company aims to offer affordable and reliable self-moving equipment and self-storage services while maintaining a focus on customer satisfaction and operational excellence.
Financial Performance
As of the second quarter of fiscal 2025, AMERCO reported total revenues of $3,206,598 thousand, compared to $3,190,168 thousand in the same quarter of the previous year. The earnings from operations decreased to $608,198 thousand from $822,013 thousand year-over-year.
| Metric | Q2 FY 2025 (in thousands) | Q2 FY 2024 (in thousands) |
|---|---|---|
| Total Revenues | $3,206,598 | $3,190,168 |
| Earnings from Operations | $608,198 | $822,013 |
| Net Earnings Available to Common Stockholders | $382,215 | $530,346 |
| Basic Earnings per Share | $1.86 | $2.63 |
| Diluted Earnings per Share | $1.86 | $2.63 |
Operational Highlights
U-Haul's self-moving equipment rental revenues reached $2,101,680 thousand in the first six months of fiscal 2025, an increase from $2,068,611 thousand in the same period the previous year. Additionally, self-storage revenues increased to $440,256 thousand from $407,851 thousand.
Cost Structure
The company experienced an increase in total costs and expenses, which rose by $230.4 million during the first six months of fiscal 2025 compared to the same period in fiscal 2024. This increase is attributed to higher operating expenses, including personnel costs and maintenance.
| Expense Type | Q2 FY 2025 (in thousands) | Q2 FY 2024 (in thousands) |
|---|---|---|
| Operating Expenses | $1,680,830 | $1,598,499 |
| Commission Expenses | $231,579 | $218,888 |
| Cost of Product Sales | $128,264 | $137,295 |
| Benefits and Losses | $88,398 | $87,897 |
| Total Costs and Expenses | $2,598,400 | $2,368,155 |
Market Position
AMERCO continues to expand its market presence, with a significant increase in the average monthly number of occupied storage units, which rose by 5.5% or 31,933 units during the second quarter of fiscal 2025. The company has added approximately 6.1 million net rentable square feet of new storage over the last twelve months, enhancing its service capacity.
Dividend Information
For the first six months of fiscal 2025, AMERCO declared dividends of $0.05 per share for its Series N Non-Voting Common Stock.
| Declared Date | Per Share Amount | Record Date | Dividend Date |
|---|---|---|---|
| August 15, 2024 | $0.05 | September 16, 2024 | September 27, 2024 |
| June 5, 2024 | $0.05 | June 17, 2024 | June 28, 2024 |
Conclusion
AMERCO’s mission statement, supported by its financial and operational performance, highlights its commitment to maintaining leadership in the self-moving and storage solutions market, focusing on customer satisfaction, and ensuring operational efficiency.
How AMERCO (UHAL) Works
Business Overview
AMERCO, the parent company of U-Haul, primarily operates in the self-moving and storage industry. The company offers a range of services, including self-moving equipment rentals, self-storage solutions, and related products and services.
Financial Performance
As of September 30, 2024, AMERCO reported consolidated revenues of $3,206,598,000 for the six months ended September 30, 2024, compared to $3,190,168,000 for the same period in 2023. This represents an increase of $16,430,000.
| Revenue Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Self-moving equipment rental revenues | $2,101,680 | $2,068,611 |
| Self-storage revenues | $440,256 | $407,851 |
| Self-moving and self-storage products and service sales | $184,354 | $192,443 |
| Property management fees | $19,081 | $18,444 |
| Life insurance premiums | $41,228 | $45,629 |
| Property and casualty insurance premiums | $46,996 | $45,893 |
| Net investment and interest income | $74,919 | $129,330 |
| Other revenue | $298,084 | $281,967 |
Cost Structure
AMERCO's total costs and expenses increased by $230.4 million during the first six months of fiscal 2025 compared to fiscal 2024. Operating expenses increased by $76.7 million, while depreciation associated with rental equipment rose by $58.3 million.
| Expense Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Operating expenses | $891,073 | $835,258 |
| Commission expenses | $119,008 | $111,961 |
| Cost of product sales | $62,250 | $66,620 |
| Benefits and losses | $44,392 | $42,553 |
| Amortization of deferred policy acquisition costs | $4,439 | $6,826 |
| Lease expense | $4,729 | $8,450 |
| Depreciation expense | $227,270 | $154,122 |
| Net losses on disposal of real estate | $2,991 | $1,715 |
Earnings and Shareholder Information
For the quarter ended September 30, 2024, AMERCO reported net earnings available to common stockholders of $186,798,000, a decrease from $273,508,000 in the same quarter of 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Earnings (in thousands) | $186,798 | $273,508 |
| Basic Earnings per Share | $0.91 | $1.36 |
| Diluted Earnings per Share | $0.91 | $1.36 |
| Weighted Average Shares Outstanding | 19,607,788 | 19,607,788 |
Operational Highlights
AMERCO's Moving and Storage segment has seen significant operational changes. The average monthly number of occupied self-storage units increased by 5.5% during the second quarter of fiscal 2025 compared to the previous year.
| Operational Metric | 2024 | 2023 |
|---|---|---|
| Average Monthly Occupied Units | 602 | 529 |
| Average Monthly Occupancy Rate | 80.5% | 83.5% |
| New Net Rentable Square Feet Added | 2,600,000 | N/A |
Investment and Financing Activities
In fiscal 2025, AMERCO plans to reinvest approximately $1,115 million in its rental equipment fleet and has invested $795 million in the first six months of the fiscal year.
| Investment Activity | Amount (in millions) |
|---|---|
| Total Planned Investment for Fiscal 2025 | $1,115 |
| Investment in Rental Equipment (First Six Months) | $795 |
Debt and Liquidity
As of September 30, 2024, AMERCO had additional cash available under existing credit facilities of $495 million. The average interest rate for revolver borrowings during the quarter was 6.60%.
| Debt Metric | Amount (in millions) |
|---|---|
| Cash Available under Credit Facilities | $495 |
| Average Interest Rate | 6.60% |
How AMERCO (UHAL) Makes Money
Self-Moving Equipment Rental
AMERCO generates significant revenue through self-moving equipment rental services. For the first six months of fiscal 2025, self-moving equipment rental revenues amounted to $2,103,497,000, reflecting an increase from $2,070,767,000 in the same period of fiscal 2024. This growth can be attributed to an increase in transactions and average revenue per transaction, alongside an expanded fleet and retail locations.
Self-Storage Services
The company also earns from self-storage services, which generated $440,256,000 in revenue for the first six months of fiscal 2025, up from $407,851,000 in the prior year. The average monthly number of occupied units increased by 5.6%, indicating strong demand for storage solutions.
Product and Service Sales
In addition to rental services, AMERCO sells self-moving and self-storage products. Revenue from these sales reached $184,354,000 during the first half of fiscal 2025, a slight decrease from $192,443,000 in fiscal 2024. This reduction was primarily due to lower sales of hitches and moving supplies.
Insurance Premiums
AMERCO's insurance operations contribute to its revenue through life and property and casualty insurance premiums. For the first six months of fiscal 2025, life insurance premiums totaled $41,228,000, while property and casualty insurance premiums were $46,996,000. This represents a decline from $45,629,000 and $45,893,000 respectively in the previous year.
Net Investment and Interest Income
The company also earns net investment and interest income, which was reported at $74,919,000 for the first half of fiscal 2025, compared to $129,330,000 in fiscal 2024. The decline was primarily due to a decrease in the valuation of investments.
Comprehensive Revenue Breakdown
| Revenue Source | Fiscal 2025 (First Six Months) | Fiscal 2024 (First Six Months) |
|---|---|---|
| Self-Moving Equipment Rental | $2,103,497,000 | $2,070,767,000 |
| Self-Storage Revenues | $440,256,000 | $407,851,000 |
| Self-Moving and Self-Storage Products | $184,354,000 | $192,443,000 |
| Property Management Fees | $19,081,000 | $18,444,000 |
| Life Insurance Premiums | $41,228,000 | $45,629,000 |
| Property and Casualty Insurance Premiums | $46,996,000 | $45,893,000 |
| Net Investment and Interest Income | $74,919,000 | $129,330,000 |
| Other Revenue | $295,616,000 | $279,771,000 |
| Total Revenue | $3,206,598,000 | $3,190,168,000 |
Operating Expenses
For the first six months of fiscal 2025, AMERCO's total operating expenses were $2,598,400,000, an increase from $2,368,155,000 in the previous year. This rise in expenses was driven by higher costs in personnel, property taxes, utilities, and building maintenance.
Earnings Performance
Earnings available to common stockholders for the first half of fiscal 2025 were reported at $382,215,000, down from $530,346,000 in the same period of fiscal 2024. This decrease is attributed to rising operating costs and reduced investment income.
Comprehensive Income Overview
Comprehensive income for the first six months of fiscal 2025 was $480,229,000, compared to $364,600,000 in the prior year, reflecting fluctuations in net earnings and other comprehensive income items.
AMERCO (UHAL) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- AMERCO (UHAL) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of AMERCO (UHAL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AMERCO (UHAL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.