U-Haul Holding (UHAL) 28 May 202020 Q4 Earnings call transcript

Good day, and welcome to the AMERCO Fourth Quarter Fiscal 2020 Year End Investor Call and Webcast. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Sebastien Reyes. Please go ahead.

you us thank and morning for today. joining Good Quarter Year-End Investor to the XXXX Fourth AMERCO Welcome Call. Fiscal

statements XXXX Act the the amended as and call, we Before XXE of begin, statements of without and this of provisions of forward-looking Section our XXXX I'd everyone Safe within expenses, the business limitation, XXA general including may growth remind that like certain of of statements Exchange the regarding income as Act of revenue, constitute Securities to Harbor meaning of amended. the Securities Section during

Forward-looking some projected. results those statements quantified. to be are Certain inherently which or from materially subject to risks and predicted actual differ of uncertainties, factors cause could cannot

and the will future XX-K the the results, to to discussion Form ended file is Exchange refer year Commission. operating the I now AMERCO. For uncertainties a that business of please for XX, and Securities and with on Joe of turn risks XXXX, March U.S. Shoen, which Chairman over may AMERCO's call affect

morning. the phone I relates for say us. timeframe. to have Much of to what Good on and with being May April the Thanks

As States. critical the know in essential of United you part the infrastructure by now U-Haul all as

Canada. and evolving, As we and been open the recent blows through same U-Haul in such, to we still the There many did remained pandemic have the are organization.

and cut Today, above and as However, our levels year's this were is has returned last clear. markets planned many we've I It become they matters our are let revenue have locations will group Obviously, move level, and year. through a the to revenues sell-through substantially. for discipline not work alone self transactions rental on. some we last yet

continued and revenue up the situation. well and the people could inability in other created below evolving out Like rule. is March, has in plan the -- the fleet over. acquire That cash. enormous deteriorate though revenue this is some sales Automotive mist April pressure. exception, new the is This more. far up an roll not shutdowns necessary below However, remain is fleet lower held rates. decreased should their continued were often tied to supplies oversupplied, in This still May. arguably up new This through knee With moving to business, we term. factories reflect will our caught maker what have has vehicle is our rate of too many responses in a difficulty brace moving not been restarting to self-storage jerk our Competitive auto of competitors fleet simply markets reactions of business. temporary be for Sales Storage short fleet. by and

largely sometime However, in and can the road CapEx down increase this will the future. the just kicks

know have similar basically experienced disruption do. to in and what the We past

restart. expenses to to We the are government we Many to allow were need at economy in the fixed short of the attempt our largely other point some term.

We categories, have commeasured don't cut in believe the continue. no we but declines, with revenue will multiple which case expense drastic

the across have Of We future. business, these new hard some. the continent hold new planned into on scratched teams have course, certainly we customers for sales to to found

tools. heard a as have facing consumer you've in As well complement before, self-move self-storage digital These we touch-free business. of and full our served

has development free industry investment tools prefer validated and self-move to of I them the ahead. in these out may who leading And We're in roll tools. Some this touch self-storage use customers these and multiyear tools. going of experienced our our the both believe experience

remained maintenance months. on Our recent vehicle the over teams deck

use. U-Haul trauma more a maintained and ready our fleet experienced summary, have In before. As personnel fully result, for is

numbers best for lessons recent of restarts. I'll over for it make We Jason make the the With the and events, learn as have focus operational situation a that, will management specific expect committed to I the and economy turn most year-end. we some team. some the of

fourth we and $XXX we Yesterday, of million for Act. of Economic fiscal Relief fourth per adjusted this share for the effects excluding net recognize tax is that's or another results the a share. In of This $X.XX Coronavirus quarter reported quarter an supplemental fourth look feel a benefit the per additional the we the $X.XX at compared of of of XXXX. We to as item. Aid, CARES this our share earnings useful Joe. as Thanks, quarter share earnings measurement to losses Security quarter in year, $X.XX $X.XX recorded

year the Also year fiscal XXXX, For we per tax reported full share. in results reported earnings of In $XX.XX included Act fiscal was CARES of we net $XX.XX. the XXXX our XXXX, fiscal benefit.

per Excluding this in the year XXXX for benefit, $XX.XX. share full earnings fiscal our were

release reconciliation a our press have as of this in well. We

years. I other technical allows availed companies with made Before net tax also the CARES that provide corrections And color on I some the to those carry to comments Act some mentioned. business, up want regarding adjustment it just into go of. additional some losses that The five ourselves I Act CARES we've back to operating

of the losses before EPS can two now we to that It's Jobs assuming net rate evaluate previously our income Act. years now, tax operating the adjustments tax. this Income them difference performance you which at activities income the federal at rate. majority XX% tax the These largely are Cut tax previous have that being Tax federal our These account But for future quarter. it. tax have were Act provision, isolated deferred We unusual CARES current use reinvestment XXXX back carry this in recorded and generated in or without Tax losses that allows XX% us losses would used Benefit the of so our this the effect in in the valued business. from losses are used We've these been at the growing today's

X.X%. revenue a to about the on the comments $XX full or $XX some million. We X% Now quarter. business. the for rental moving about up million on Equipment decreased That's finished year

year. fleet. Also are from rental the both trailers the for way markets town locations trucks one trucks and and the trailers. revenue positives across and retail and We well in of and number improved as increased First as

the eliminating an were rentals along improvements of the stay orders. at of by call and decline. last offset volume decline than the a noise overall decline, to account reduction And related However, the quarter, in rental home March related some By have COVID-XX business more half second February. corporate I'll the COVID-XX noise this due these we the with the the did extra the of day during mile activity fourth

approximate the Our our experienced in the to Revenues decline. this X% fourth X% and were core self XX% for moving closer plus revenues equipment have for an year. April plus quarter moving

decline we Looking were revenues trucks year been equipment $X,XXX $X,XXX has Capital improving. fiscal on fiscal XXXX, new May, in for the rental in million. invested Last into million XXXX. expenditures and trailers

the retired proceeds equipment million. were $XXX in from sale While rental $XXX That's up of from XXXX. million

truck equipment contemplates pickup in a projection van box CapEx cargo rental in Our initial spending. decrease fiscal XXXX for and

estimating that’s We under them. before proceeds million are just sales $XXX netting any against

a projecting sales in approximately resulting from CapEx equipment also rental proceeds free of in the of $XXX net We’re reduction million.

around $XX in constraints May assumed of million portfolio. to the year the the that’s sales April Proceeds XX% Just and from the to this occupancy new XXXX year close remind April compared projection of the sale in number from of full $XXX reduced locations April in to revenues The or rents, million facilities to from of units $XX COVID-XX. for to right were auction it comes $XX locations and combination on over for million. This up rental equipment quarter, last down up everyone, year. due that and were a at addition above existing the XX% we were growth million. and revenues gains from Storage was

occupied up more our count last unit rooms. March at year XX to of Looking compared we year, occupied at were XX,XXX this

at took look a occupancy facilities quarter had XX%. we that This over

Xst over XX%. last are XX%, year own little of XX we up at had March this year of these just over occupancy to locations increased locations to XXX locations. at XX% And As time a average were occupancy, was slightly this that the about XXX that compared

a year last estate Our related CapEx million, from $XXX real the that’s billion for year. $X.X down was

year, feet, X,XXX,XXX liquidity. online added During development fiscal about of April fourth came X.X preserve the new this square the projects opted slow quarter. rentable million of net we’ve self-storage XXXX, In and to May we during to

calibrate resulting in quarter, the evolving effects Storage in of based at of and capital for spending loss the million COVID-XX. Moving Operating our million. earnings the part $XX a We upon segment will $XX decreased by

with $XXX the million to For year, year fleet to million the the associated fiscal new $XX fiscal operating highlights. to for by add to earnings of $XX million. full expense I increased about quarter, through ’XX. the we expense the in Depreciation as continue equipment some $XX fleet the for go million decreased wan

storage rental primarily for year. $X And function the $XX back depreciation full the increase self-storage of of our $X We for full Depreciation are other that’s by seeing begin for fleet assets $XX the with on the the down. all a largely up assets trend to million. experienced and million year associated Repair increased quarter, for million quarter a million the rate were location development. increase costs

trucks in preventative fleet up have the the increase With of the in gone costs in number maintenance relation.

accounted the the those units for in maintenance, taxes, saw $XXX Additionally, and bulk items of And and sold we costs that trucks $XX higher and about COVID-XX full million a other freight property increase a prepared and the of during the they million the higher of we shutdowns. personnel, count the insurance for including increases. in Outside quarter, cost property the utility for quarter generated resulted aggregate, over before of repair little a as costs and depreciation year. the liability auction. In are that

in near Towards self with rental affected the of May, has the closure sales cash our lower moving commercial end auctions. reduction equipment a auto April proceeds flows COVID-XX and the along incoming total revenues into equipment from of March negatively coming and through

the April, At In had and However, the segment at million had to Shawn, the we March I’d With question cash like liquidity call. and Storage and and the excess a million the term short loan remained that, of end May, our million. to XXst, operator, we’ve to $XXX of strong. in call availability to credit portion an we strengthen hand has $XXX begin further term. into $XXX our of answer entered Moving to position back

Ian Research. go Please ahead. first [Operator Zacks from will Investment with come Instructions] Gilson question Our

or that can a Good entry have so, I you cash? actually is morning, of -- tax that -- book gentlemen. claim the the a impact

is Jason. Ian, this

We are CARES filed associated we with -- Act. for have the refunds

'XX should results So, resulted request they refund for fiscal our those we've and while -- million. in totaling $XXX 'XX amended -- and in returns,

result should for year that fiscal was we been $XXX we've 'XX expecting also million. income million. of made then probably to we've refund in about our that And return For payments return we're applying filed former file October, a -- going operating that sometime that $XXX in some around against we're a excess which of cash have

So of in refunds. some $XXX total, million north somewhere looking in at -- we're

be So when might expected or check? to check

those in were April. filed Well,

our service So is internal a if were the what with borrowed be essentially loan. in day that we've or those you August we've where worked we service, those banks then in to pay million $XXX the revenue would sometime we'll that expectation September. deal done In give the currently. our meantime, several lending as down And group, of receive out against XX refunds refunds, about we've

Okay.

necessity conserving trucks to cash, lease them? an relevant you wouldn't it the Given advantage of to be by

the question. the cash, but current leases, still getting still says necessary. see continued don't net XXX% what to that. for a know know where done this Jason are, over a financing you to explore we're to still and cost As where variety years of as and There's best don't status we've we push to situation see done we're the is of we've We I both optimizing let's same yet going -- And are we us. the net Ian, best

to -- Sure. equity borrowing out equipment X% anywhere XX%. from is for We program basic the is our

that. The isn't where that current need we're in to So position mix we stress that. we're liquidity continuing to something

with already borrow If many Assistant the or folks. to have at to of doesn't to at fleet fleet be Treasurer But higher our to is do. speak option we it right about. for responsible value things to now, a them that out to groups has reached Our available list loan of top needed to our lending

as been move people fact Okay. easily have out And less I as have earlier? truck the storage thought of can't they not as the much the face had volatiles Particularly truck rental the business, So impact business. would than of things rental? storage that as would storage could in been have

I say run, thing think the short in that's to a Ian. fair

However, are of a as bunch percentage people, population. big stressed know, of you a the

that right. course, move of more impacted, be been service you're but we tenants. people delinquencies as we're or So, everything people as may doing it's have the either of things you -- retain customer them. going evolve service deferred. the And get here stretch keep of usable But give terrific can't these outs we people some and The develops. have that have impact do further, And these in to can will visibility a expect to majority we'll That's don't give quality see I forecast. how to to -- again, vast a to forecast. we we we're through I and retain top try

Okay.

fact the trucks With deferment maintenance new the trucks moving that the fleet expenses and of sale into of the declined could somewhat?

They not. basically a vehicle. maintenance with actually varies probably will the Well, Because age up. go probably linearly of

up to. actually keeping had we'll happen will vehicles intended what end So we some than longer

expense expense, their Ian, mile, repair up. their will So try creep probably per to

vehicles there's rent see to as at can fine, maintenance XX equates they age to last bottom the want over do to the because them. linearly for which will varies experience little no sold we're fleet be mileage, with probably maintenance but our of going not you been a that's bit. and them We but and market years what So, out the you some can that bump

truck US think you has improved hold That this that would you rental? budget. Have Hertz help Okay. do or probably noticed bankruptcy. declared you

issues. not big Well, But even this. more and hopes to is budget those some service give new over were competitors of service level any have budget. is they the right still Avis we connected they they're organization. of markets organization It's I the gaining capital on And actually executing they rate. retaining separate very were customer not demands. And want at providing we're of from now. customer higher the because the or an Hertz from If advantage our And we've customers. reeling the and the out saw financings solvent with the in Organization down kind they're what customers a we're that last going planning on perhaps doubled The

Okay, to did and in down say truck you Jason, XX% back April that rental? was

Correct.

I that sequentially some presume rather is Or may strength. year-over-year. compared show than

a Year-over-year April. what we about is down of in half saw

trending around of it's half XX% maybe the to somewhere XX% it. first for So

Wilen Jamie with Management. will question ahead. from next Our go come Wilen Please

Hi, fellows.

invention Sometimes necessity see and good allocation is capital of glad your sometimes to program, the plant mother it's that seeds. to alternative the

reevaluate expenditures. I'm glad to taking we're pause and the maybe good it's slow and this to Sometimes harvest

for the What So profits. we can harvest you more as move of forward? plan is your self-storage

expansion is And we're live. to committed There's you self-storage new specific as Well the of been the of of, Jamie. don't new product the in coming of product is most see much product. markets. term course, you spoken long market, And online. know lot I've The But experienced that a in the I of where past, and still country can area. whatever in your is considerable

happen So anybody think to I don't what's knows really going with demand.

face going have term process. We I us do, them And to they're this. are cut that the I a mistake in going to it that short that so the on know the financed. basically industry, come to prices in new we'll which don't to And said remarks, in online. think us new of want injure And as these online. different many in it lot And arguably in then But that is we'll the projects going my probably of to I pressure to throats. still people of will from now are our industry. of make I are But I too stop to cut many products process. happen them. people their won't more And because kind your put don't complete overall going product is think is rates be have that bunch and what's plan come the of they coming online. prepared a over

are because But cost So really cost we're these personnel, inevitable fixed The rate property basically people variable there's doing I pressure for taxes. can. projects utilities we think going some have that's is to effect huge going earnings and be and on to what projects. the

be going self-storage the my a best pause business there's would be guess. So, to in

March building we're but intention more to or intend even and May, have pausing don't we pause up April rental. renting course, and no up Of rooms, of we pausing in and we're

that in But fix her saying, for go spend a god, on I more going store get what's real get few if $X me rent could yesterday, and out happening. more stores, don't probably hopefully enjoy million rooms, big being works to So at I'm has XX% who a I'm in rooms. anybody XX was more I years. to think and at were woman well. was Well, The we manages it I'm occupancy. rooms. a just unlikely I another

couple expenditures What are fiscal A -- in the current questions. capital of in self-storage your coming the Okay. estimated year? current

do Jason, a you that? number on have

what and in we much previous year. we've spent provisioned Well the pretty

year So that break it a I'll that. spent say pieces. on $XXX we million -- this down last couple I would into our existing

So, deals down in significantly were from the year. prior escrow

pushed we just in I new to fiscal dates reacts. to have of environment XXXX million. acquisitions back XX down $XXX the deals But the those think have sitting out escrow. about how that properties, XXXX closing fiscal We on we are see

to several have if were have, is be we would that's work million, on years. going that that but like a complete $XXX little everything we complete and spread number over currently we out Now over to to and

the and So have we several us years we to have take work from slowing been input. now

down apples-to-apples last from I $XXX million to pipeline to time probably this about our $XXX So, projects probably of on is think work million year.

So XXXX, to what, million expect your CapEx be in you XXXX? it $XXX the in versus

on could we spend and Well, and seeing. Right we current of up plan back out or kind availability to up development. set out, set $XXX we're upon adjusted opportunistically, I pushed plan opportunities that or when million $XXX capital that million availability the down it's then worth slowed we're, of of cash down we've now based of debt get about what the will a

So probably next how over might that going couple to at months to of fall the just decline is some is not spent be in much we fiscal spend slow this going down to year this a It point. into lead year.

doing rationally we're no until have this ground the and are. we've the where things we're everybody's starts all that can is, we on see going that we just concrete. to of we're in completing act sit completing What time we then property. everything new We're guess; at on and got it's And actually because

sites, we baked into sit current They're can costs. what We our those. bunch and have undeveloped In It's seeing. baked been you've all of all ratio. but whole property words, already on expense taxes the a that's capital baked into already into the other

will that this we'll So million Jason, just did worse property on. get comes fiscal no last square, how and X.X many that year. we see how

X.X.

I between say to real be a put don't And today, we million. in XXst firm number XX, feet a and March to going million close X.X it's have here yet square probably but I'll June that.

come will projects and hopefully those online start up. So renting

lot we kind stuff we'll be -- and to quarters, we that's have what it there. to flow other term, going then a of fire are fueling So next won't but three near call we going completed, get on the have the in

number don't. but I give So, a I could had I wish you, I hard really

prudently, this had says down Jason already turned is and pandemic. this going I to what think it's the been before doing but we is for doing, we'd what months, some we're is act

slow a now. for down build we And so inventory or on. while that that with we And train that sit have down, we to takes can an train out it can slow

expenses something, taxes our to property won’t as a shareholder situation or not going or that cost We’re basically into they’re our aren’t financing disastrous those increased and rolled and not you because, current change much. in X% X% see all a and

Sure.

obviously and productive over relatively traded do self-storage package that number very the are XXX a high have be get to for those them programs that Given that where by value to or to borrow XXX for level. that, value up say, willing would we’ve selling to for our to continue for of credit very able the as thought occupied And facilities up do you don’t XX%. REIT’s What the very full REITs low realizing reinvest fully and very facilities XXX yields, much in XX upside? we obviously pay whatever properties little of packaging that greater at who got and average was we facilities be to and then a facilities

it this number see being a consideration at It’s a don’t serious time. I we of did Well, work hard been years real that. under before upon

the applying two I'm ointment whole I that’s not the to locations concept big you there all term they’re the to near ointment you applying there’s don’t aware do that, they’re big much in three, try they’re so, various or Of -- self-storage and and But these the more out pale. as just also but of move, that the beyond where course, of ways is think company. a that in the can push and read that’s but

So, but I know is I don’t here wish I looking had a more better answer that you’re answer the answer. for what have I of you, really

that help direction somewhat looking in future. Okay, I you consider would it the in near to just

program, U-Box business? current profitable fiscal process? whole that how that what fare your and the within the the this is in On Was year for outlook past did

I’ll let speak Jason to to profitability.

number. this profitable. now. revenue of year what’s It and was improvements in in we’ve slight it was margin dollars happening our absolute strong internally growth on plus calculated It even was kind a during and Yes, right seen

invest And believe prudent we’re on to it’s outpace We say but a our continue that I this growth program, strain industry. to program, on like So, is our would rental of that, still the a the self-storage growth improving we’re huge think growth -- position going capital, that, to and in truck not there. constantly. that’s Jamie going it’s continuing to invest It’s we we’ll investments.

very that modest a I'm measurable doesn’t rental some response in sure complements in We be amount have too. truck our the seem in it customer. It eroding ways some there’s to amount. from but, good a business

months couple had growth viable it to so, it’s ought in year increases So, program. because all I think though last clearly increases of a It now last it’s the and program. had a but the

would forward Just truck it that business rental to do outpace so. should like self-storage, continue and to the look

detail the fourth Okay. little direction? XXXX what’s and Also about outlook down Could quarter. and in corporate you were accounts in your a you Joe mentioned why in bit the that

equipment situation. very, did Amazon. The of us rents, the for many a contractors. more We They revenue damage lot they Sure. very Amazon than of cost generated equipment piece abusive business They’re totally in not agreement actually Amazon equipment. reached they back that They’re personnel. where very stop We those abusive would recently rent damage an Amazon circumstances, under equipment. with to And we the would on to to them.

during they the where we relationships. not would course, Of business other formed period to rent them,

making And profit. business the so to and people Amazon modest knowledge, our to with bringing and some the with now are and At the I FedEx were them, room they we do whether was if, so we modest money be them, extent but those pretty overall no other we losing the both a and simply time, they're losing but transaction. and will equipment do continue can in were where business doing we on losing are us money, were same And the with business we back, it straight elephant profitability have that up with just UPS make Amazon. organizations any money make beat

reduced you relatively though accounting-wise expense even Okay. And versus should flat the are XXXX XXXX forward, in -- lastly, depreciation moving expenditures? be

it's increased it's now increase estate each right we're an but I still see We’re fleet quarter way on for to going that real the through been had think coming; see been the -- depreciation XXXX, that for down. coming has going still the of rate and both --

the fiscal upon the it's flat fleet fleet I suspect by to going would XXXX, that on side. based So end out current of plan, the

go Gilson follow-up is Research. Please Our Zacks next Ian a question from from Investment ahead.

you. the and other If essentially a and problem purchased or a declining let we get some number down a facilities making say you instead bought And trucks or do that up automakers meet a of most your you or if close right. kind All trucks. had to second in their down. go patients, XXXX, flattening The work of than cars reduce what wave projections out to Thank them of of of account depreciation? do will unit does

you down. very automakers they Ian. shut in get them they to If their an give to. re-close question complicated then started, plants, answer That's the a other them accurate and words

production. of amount will heavy forecasted we've We lack lose production in of new of is the coming Ordinarily, why now, that a big not have usually suffered quarter which lot calendar for production to we're year. the of in. forecast a get equipment last We

So it at some to wouldn't impact it this that don't we're If subsequent happen, year, quarter much now. what the is year. Ian, us in you would nearly right replace the we'll the then in it as replace And certainly have them has us. But impact will as have replace point vehicles. them to we

that fleet. markets mean, beyond to customer some bump enough going and accommodate it's a So single I for our market, every I are of assuming years, transactions remain it's that could numbers reduction permanent see not the savaged. in large been to way in amount to these there the economy. money be we have pale have spend in the subsequent that there

out who can are. You figure they

who are enforcing simply of TV, totally down, sort politicians the consumer the they done, gone. state authoritarian and on the the watch you consumer it's some shut If

Now business, to another Utah, go doing like Utah Utah, but different place orientation. a doing government everybody's was they fine, have

declined have won't have the decline. what the bunch other no if of question I expenses if we it. There's And partial a in fall, will and revenue revenue profits economy another smacked. than will or will idea decline revenue will shutdown full get about no decline happen So of

overall XX% the So, which but we've or business. costs, decline some Jason? of aren't those course XX% XX% We saw is XX% or nature what percentage, reduced costs. Jason of quoted we of But costs those what saw and

XX%. April In

XX% April. in

So our don't go expenses down XX%.

went actually up. depreciation Our

leverage I it's real problem. a So, mean negative

let's out profitability that not run But to slaughter in we're run. cash. like short an So event the going of such

year, and Jason. is the will your increases in this see this and down? each without in less do will do. we then pickups do than we of to the orders gain call fleet cargo what shutting towards the less to probably fiscal of Depreciation the typically vans, a will older with and new question probably continue we're To far depreciation? as probably plant to holding the end we're about so the next Ian, of units buying suspect what that equipment decline become I longer disposal selling would due year Just on happened cancellations quarter. today, we we what's the

will that begin disposal little of on longer a the units we those down see trend we the So gain hold bit, the to them.

you cancelled. have date? mean Okay, Does a orders later reorder that you said the to at will were that

Well, can't can't until way that there's And many. afford no we sell can't. we They that trucks we can many. build

it's They to have buy can't we So don't existing the them and of we unhappy sell ones. them kind money an can't because build coincidence. any

Now yet. we signs the and frozen older it market going we're with of And see us in we fear do new to sell not But imprudent we for units, bring and units. that not that. it's improve expect until to can to we're

That's day I can they two us shut a open run if plant, but for it believe whole not guess. day, built day quite for somebody General in would production. send or for a can't restart So they And I correct and it's positive follow for been the it of. get home I'm what any speak place told get production have us. their in the for down week, plants. And you trucks press, test Motors Well, an that, a you They automotive imagine you I've never call trying to saying anybody's to Ford two. and they COVID. Last

XX Okay. words, In that they every other minutes like do normally.

It's definitely they to, cut and that be older they're all automakers. hurting trucks negative would And So tell, values with linearly hurting ultimately going year it's, be Jason as to to can miles. vary less just as it's and for got of mileage. of have these with us. time as because going drastically alluded I sell the is consequences, they're getting when involved, this And to far be do vehicles, the more age sell and volume we the for

we've them. depreciate So to continued

trap So we're in not caught a there.

you thing to is fleet. to out want because try you're we carefully down your continue last in watch to that do depreciate, So and we find the upside

don't presently the we rate down circumstances But dictate We upside our that do that. get there. if not varying in by to we'll fleet. So intend are depreciation

will come with Craig go our Partners. Inman question next Artisan And from ahead. Please

Hey. you guys, hear can Hey, me?

issues out is always locations with other always business manage of trying the you're fleet to in of because migration into certain the One -- areas this areas. of

problems With line? stacking the any up the change is mean, down that created become pandemic, with is that is anymore? -- another issue trucks I that

Certainly all changed Bring it timing. And take has. that. the it's credit

a see away time of students an But and student actually just some is for daily them Ordinarily, just we So year went take them weeks of what just ago. instance. happened entirely, six moves. this of occurred some

out. move now we down what quite to we big the year? going be have already for there's to say, out are phased Yet to that are know some We doing weekend last schools sort out are that through residual So let these can't time. and business schools out this compared been all coming let

on So they're has out whatever XXth contacting ex-building everybody or and to students May. in of move the saying

so little then transactions we that And specific in bump a market. in see

lot of dislocations. caused a it's So

a this also thing, and of see is the time real type year year mushy. of school lot second We home that, again in

broke the in last grade schools I most Arizona, here Friday. of think, this

second a we to with their but predict. we'll luck, to how people go going I can't a are little home pick business little many So up up

six New Connecticut of weeks out say ago. a other we On hand, the New people got York got will who they of homes, had Hampshire, in Maine and second bunch or

better to but bunch disruptions in whole amount out say has is certain -- day would the that put of this will worse. to day we the a that's because normal or of I I it's have that think tiny is I in there's But It's about horribly is they're different. a fleet. have flows problem hope dislocated So are some get we that moving optimist some business managing to timing us not here more a who it's gotten recognize students right. worse overall situation. and a say smoother way very in the a very well us of new -- But out the

this universities to flows already at bunch in And summer, different because the have kind to into and going no of that going a move so we're I the got work will have then going how fall rates. of noticed the into they're strange idea

going totally the disruption some more away, of on distance even going disruption And amount distance moves, were that. Maybe elective. And need short -- effects to we don't short moves distance don't moves, long are a so and normally strangely, people move. to have moves, But really and everything seen short absolute in But -- moves. I distance over I we're take more driven. we short-term do trying phenomenal really that in they're distance they're yes, be and it's I but moves if not do. of whether where we've anticipate, of looking thinking have come in like -- up more more by carry this little maybe they August, all long there's bit less can't and where seen tell COVID that the that a been we be. in end Very huge they'll we've are the up, goes you. difference a to Whether certainly know last back they're to year, June coming will used the what back

said remarks, making over prepared are I -- these some bonuses. They're people year. last as my up in are places As

Florida course of it's want means Connecticut, on, traffic. business there back pay. there Northern maybe, still -- out is the are this normal Jersey, Arizona happening hang shut up. are seemed people areas Boston into there they've don't They those I'm literally those know But week; almost has it come business their afraid. New is down but which to back like Arizona I live, severely and the it in what's in people come well Florida, Southern Atlanta well, a York, New you is there. sales get you for Okay, economy and -- struggle. where Well, and if I us. has are

to And flow. a just be We're trying trying that's there's activity. capitalize see in that of lot We're to and our we of push favor. trying course anytime flow So a different nimble responsive. to be

given that to a that use have said than we distribute is really execute easier to it's And the people You some perfectly, these of could I've who little that, argue if done. but job, mandate better we'd of fleet. the course, disruptions could

can't That's side Okay. GM, or and truck on Ford the if -- good the are you get then the new And auctions the color. and trucks auctions with in -- still closed?

largest their attempt think Yes, virtual transfer to not have that largest. economic reopen business over their to furloughed to I intent XX,XXX collapsed. just open stated a they're starting Well, time during they're the is structure. -- to Manheim to whole changed The people the and virtually, sales

that's And it whether see of I a a just no only have are -- we because bunch Now daily factors. are other we to zero weeks. the on of basis. for to just almost move able a could that formats guess, whole virtual I went couple what of

XX% creeping near, nowhere of it's less would it's would say what XX% but Now Jason, slowly we I -- expected, have back would it's than give or

most. At the Yes.

It's drastic decline.

it's comes every Now we disappointing. the money finally other watch encourage we and each But of kind Jason when we everyday a and into little that. -- we see glow all

well if of social bunch it's who build with I So event social been rubbing to event don't are environment air is -- to whole and in it's people willing that And to people so or People the as they their there ever you with one but is to to what's something. idea be compared If are Manheim each bet. if bustle to right other, that that market environment. happens don't have no I the they all not back to unwilling it's change happen. this I whole may but going what's auction going sales an the hustle big auction and industry. making open going be activity in business know have a as happen around know have business. shoulders

have are you little can't on you back raise scenario truck -- in get auctions but to sell if pressure and operation. in how do they are this that where online and mean GM if I much a Ford we trucks how too does from we a cash or the do So being slower put able environment.

little We more a money will older. We depreciation down. spend way bit that. truck bit gets slow on a The and done we've little

in mileage than bad is problem, say followed things -- has these history The away. seven part best it's big happen. I less My no been ever as far is Our far time there's my life long in think seven Every in because and fleet condition years been my I'm has today maintenance. and is preventative is away. this ever towards today than maintenance working I believer that to real had. If been. newer truck on to we all years schedule had has on it's this comparison. the fleet there a today. would up and trend. be where we good a and, a I'm had by building always there's It

fleet got away something happen. to I'm this there, know So put We fleet; sitting always because trying parts. to it's to maintain them. common right the In going with just how is this case, we're

years without all go single addition. a a support we have We two without totally operating. had go to our if single And years systems addition, two we'd

long would appear easily They tooth. to years have reliability see not to They a the consumer then difference. little same go them the two we would as modern a they in truck. be Now, the But appear. because and rather I would you'd as could same need would the the never

not So choice. I that's that's can going don't happen. happened, to it. going go my to we'll that if I go this two But think where go, That's with years way is that's now. if

construction, and to the trends want purposes. if stuff that's in this, Yes, proceeds, you you, auctions were overall the the cash and already flow do the remain need build self to for good. I mean revenue the are good know. that's shrinking if the you closed, ground for with you that's do under they fleet storage, weak and summed And

down given, turned I this okay. need a mean don't We never them. dollar, a guy No. who's is

wonder has Jason, So, are monitored that them to wants going No, what's but a him. week you Jason but because he's but week is whatever. in color to on give to want where we to need he He ahead? costly do some constantly process I happen. we me to like that, and if proceed this with to know order by

But, the next Jason, auction think not just I'm the for may, as Well, used of into round operations. I'm trucks. reading They're proceeds or typically general if more aren't I Craig, question to this the is not. I buy capital used sure

the round next proceeds that necessary. aren't purchased if So isn't of being the trucks auction then

pickups through if I to So nine stay say cargo vans, would get then year down that, for capital to on of to for have next it'll that's to issues not we'd as another work or issue years. order operations closer But for become than year two facilities trucks and a more so a at it, hold six the or that fund we some something in need planning the the more for we shut in two the auctions to period us, were revolving months, holding least our

meant more a from I that's Yes, cash planning not flow just perspective.

selling wouldn't trucks. as a purposes. you And If you know, just to flexible want top-line isn't and have need pressure, proceeds build flow it cash you self-storage -- to I if can't do that OpEx cash, the got enough from you them don't raise you for be don't

If you're new not trucks. ordering

full of use freeze had up. had, cash time we essentially one of Yes, from a kind the we

had we So thousand to several stopped, the trucks pipeline be delivered. sales when auction still in

So we were in those. pay for that auction didn't pipeline, and we the trucks the have proceeds did for

trucks buy able So to to hasn't a it were But to that problem. and that been cash a one offset deal April had of kind proceeds of it. we with have like auction outflow time didn't use

into rate Okay. And place a seeing you side are a then It's dynamics. place of second. the rents orders. hop key shelter of can in Self-Storage of the similar in I But on because all which component because pressure? Are rates

it'd times month XX% a is okay? to has say to see not move. $XX just okay. is guy person going be be get And to I'm Exactly. manages can worth say going to cut. that's he's little let's worth flinch the would lot -- whatever the we're course the pressure. rate would extreme let's That dive, but $XX that And, cheaper My and And $XX that rate we could one And months I take $XX an one circumstance, to customer it answer move. not a the XX until who $XX first in to high the Downward $XXX with of rate a say.

services locations best are in So not XX% helped, our address matching our rate. other our to And and more be be do to rate. that who in multifamily manager people top. simply U-Haul's entrance it estate is in our been financed security well I oversupply, able to than let's knee believe best ancillary than and under would some real some other or jerk that varies we're high sell seeing by rate But I service us help. won't drop case, because if right I up the the leverage I say But these And the say by are ever there going real you was service. service reactions, see know some or way on location; when there's to recent services is trying our they're about helps issues history. there's it's of probably a And rents I'm combination rate in process. going occupied. apartment at rents

it year whole one your go making would that even to because business cost can't XX% capital. the place going out filled You're be survive of you of

And people perspective. We a who we'll don't that other seen take long-term it. I as nobody it a to transferring title, the I have hope footprint you've damage and estate they're So be go it'll apartment. it, other people And see. essentially real will they people we again, that's I competitor hopefully don't deal two process a But large a What if market. happens? -- reaction. said rates, how a in know business, of bunch it as all there see see. damage they will their would like be and where contained so doubt control -- or cost. financing. of no nationwide on some year But We'll knee there's financings them. some those us one are jerk But will out through that Nobody typical can't specific And more at I -- they'll dump but full view

Management. from come will question next Wilen our go ahead. Please Now, Wilen with Jamie

ability and auctions for expect get outlook diminish would new year? size your equipment, to to fiscal your this fleet Given the you

there's The No don't it's because them. And only because not if get no sells going precisely to point. a we smaller get market, smaller. fleet sales to way get the

Jason Now, extra some and picked wrong. a about I'll talked have we trucks be up that'd number

neck. around picked Let's trucks kind March X,XXX our a in just are Those of early say we up and extra April. late millstone

is get -- to the have regain to marginal we business. we income weekly, program on changing can for the to we We if a start attempt can easily But that see markets them. as deploy to what

reason market, know there's but my no your going prices. no fleet in now to market. player September the in The sales are So, full need don't it and our just market is to dumping we're market. shrink a We There's truck before be don't sales to that we're the go our price getting and go for because we're that's big going able we'll that us bet the intention. into to sale trash, use shrink little market, October trash bit, if a point or I

We merchandise. good have

this auctions might an factories the shut opportunity the been think were have because I if down. been have running,

cars pickups, lot, several used I've vans, read financing. that lot their the them are bank of suppliers up, are and our pickups. standard on for and now low them buy articles mileage put so available And that begging cleaned dealers there's Dealers as for still a

sales that because but auction made So, deal because around of go dealership if states course dealers to -- in close direct we existed, some the the they're some were they we to car these people still and market know we've can able we if constrained, made them industry.

have these seen starting business. see a where are orders. dealer couple government business of friends. has so the really lifted I haven't to they couple And A friends my dealer their

for in exactly do a have friends, one said and hoped really pent-up demand. my year's ago. Saturday, that's the a seen level weeks stay he year would whether three I've Arizona in he Arizona. dealers he on murky last trucks It's now of XX So better. what maybe was some that But Almost picture. ago did

and that and -- doesn't know. bought who he was in but don't should -- I I know people Now have March

forward? If utilization open the reduce going increase to you fleet bit resale up, would like market continues to to the a size

Absolutely. In specific mark.

management remarks. conclude today's to session. any I turn for closing to question-and-answer will would back And like This over it

very Thank of over you of can good the This your going obviously next closing make appreciate as the to earnings out the call. Okay. we're of -- now And comments? much. is Joe. a attention, your question and any fact is things the next circumstances. make bunch Sebastien, we'll I new expect circumstances I out learn facts anybody

We support. your again forward for you look speaking August. to in with Thanks

The attending And concluded. today's now for you conference you now call may Thank presentation. disconnect. has