Notable Stocks Buzz: AMERCO (Nasdaq: UHAL)

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AMERCO (Nasdaq: UHAL), parent of U-Haul International, Inc., Oxford Life Insurance Company, Repwest Insurance Company and Amerco Real Estate Company, recently stated net earnings available to investors for its 3rd-quarter finished December 31, 2k17, of $528.90 million, or $27.00 for each share, compared with net earnings of $65.20 million, or $3.330 for each share, for the same period last year.

Included in the results for the quarter finished December 31, 2k17 was a $17.320 for each share, or $339.20 million benefit resulting from the Tax Reform Act and an additional after-tax benefit of $7.340 for each share or $143.80 million resulting from the sale of a portion of our Chelsea, NY property.  Excluding these items, adjusted earnings were $2.340 for each share for the quarter finished December 31, 2k17.

For the nine-month period finished December 31, 2k17, net earnings available to shareholders were $779.70 million, or $39.810 for each share, compared with net earnings of $388.90 million, or $19.850 for each share, for the same period last year. Included in the results for the nine-month period finished December 31, 2k17, was a $17.320 for each share, or $339.20 million benefit resulting from the Tax Reform Act and an additional after-tax benefit of $7.340 for each share or $143.80 million resulting from the sale of a portion of our Chelsea, NY property.

Excluding these items, adjusted earnings were $15.150 for each share for the nine-month period finished December 31, 2k17.  Included in the results for the nine-month period finished December 31, 2016, was an after tax benefit of $0.790 for each share associated with our settlement of the PEI litigation that resulted in a reduction in operating expenses of $24.60 million. Excluding this after tax benefit, adjusted earnings were $19.060 for each share for the nine-month period finished December 31, 2016.

Highlights of 3rd-Quarter Fiscal 2018 Results

The recently enacted Tax Reform Act resulted in a net benefit to the Company of $339.20 million.

This is a combination of a $349.20 million benefit resulting from the application of the new 21.00 percent federal income tax rate in our deferred tax liability calculation, partially off-set by a $10.00 million charge from the deemed repatriation of foreign earnings from our Canadian subsidiaries. Excluding the net benefits resulting from the initial application of the new laws we expect our blfinished GAAP effective tax rate for the twelve months of fiscal 2018 will be approximately 34.30 percent and 24.30 percent for fiscal 2019.

Self-moving equipment rental revenues increased $33.30 million or 6.20 percent during the 3rd-quarter of fiscal 2018, compared with the 3rd-quarter of fiscal 2k17. The revenue improvement was primarily transaction driven and came from our truck and trailer rental fleets.

Transaction and revenue increases were recognized in both the one-way and in-town markets. We increased the number of trucks, trailers, towing devices, independent dealers and Company-owned locations compared with the same period last year.

Self-storage revenues increased $9.8 million during the 3rd-quarter of fiscal 2018, compared with the 3rd-quarter of fiscal 2k17. The average monthly amount of occupied square feet increased by 9.20 percent during the 3rd-quarter of fiscal 2018 compared with the same period last year.

The growth in revenues and square feet rented comes from a combination of improved occupancy at existing locations as well as the addition of new facilities to the portfolio. Over the last twelve months, we have added approximately 3.50 million net rentable square feet or a 13.20 percent increase to our owned self-storage portfolio with approximately 0.70 million of that coming on during the 3rd-quarter.

Depreciation, net of gains and losses on sales increased $18.50 million. Depreciation on the rental equipment fleet increased $17.90 million primarily due to a larger fleet. Gains on the sales of rental trucks increased $2.10 million due to higher unit sales partially offset by lower gains for each unit. All other depreciation increased $2.70 million from the increase in new moving and storage locations.

Net gains on the sale of real estate increased $190.00 million. The increase was caused by the sale of a portion of our Chelsea, NY property which resulted in a pre-tax gain of $190.70 million.

Fleet maintenance and repair costs increased $32.30 million in the 3rd-quarter of fiscal 2018 compared with the same period last year. Higher repair and maintenance spending was primarily associated with the portion of the fleet nearing resale.

Operating earnings at our Moving and Storage operating segment, excluding the gain on the Chelsea property, decreased $23.50 million in the 3rd-quarter of fiscal 2018 compared with the same period last year. Total revenues climbed $48.50 million and total costs and expenses excluding the gain on the Chelsea property increased $72.00 million.

For the first nine months of fiscal 2018 compared with the first nine months of fiscal 2k17 gross truck and trailer capital expenditures were $788.00 million and $870.00 million, for the first nine months of fiscal 2018 compared with the first nine months of fiscal 2k17 proceeds from sales of rental equipment were $389.00 million compared with $403.00 million and spending on real estate related acquisitions and projects were $400.00 million compared with $378.00 million.

Cash and credit availability at the Moving and Storage operating segment was $1,141.30 million at December 31, 2k17 compared with $804.70 million at March 31, 2k17.

On December 6, 2k17, the Board declared a cash dividend on our Common Stock of $0.50 for each share to holders of record on December 21, 2k17. The dividend was paid on January 5, 2018.

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