U-Haul Holding (UHAL) 7 Nov 212022 Q2 Earnings call transcript

Good morning and welcome to the AMERCO Second Quarter Fiscal 2022 Investor Call and Webcast. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Sebastien Reyes. Please go ahead.

Good morning and thank you for joining us today. second XXXX AMERCO’s call. the to quarter investor fiscal Welcome

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

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

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

Thanks, meaningful direction another Sebastian. have Attracting hard their on remains struggle. my are and good Most objectives. of a Well, financial team and teams members report. we retaining had

attractive long-term are ethic is We a to company many many and that people. work blessed persons with

supply replacement Motors General Ford I related desire. have quantity As before, trucks type we are U-Haul unable and and the to with in

to some on winter when warehouses. I in a of do As this late also to results will bigger become a result, expand by spring. maintenance online expense replacement and units CapEx push number I This some blips U-Box must expect cause the increase. available. warehouses have bring

truck U-Box to of fleet. working size also our are container fleet We the and delivery increase

grow. U-Box continues Our business to

strong. beyond, existing a now Jason working continued teams success of to self-storage in above inventory of we team it. one nimble I value product Perhaps the our accelerate have is support. word through of more encouragement. witness units. They continuing new our us and Ramp-up units of need our are of and to member will due hard-working give ever, online. coming our visit the phase every walk them am than you expand to going We I locations continued numbers. organization. a your Should remains

Joe. Thanks,

million. second to a a second nearly average of So share came combination increased off to in equipment due revenue, second approximately period That’s Starting $XXX $XX.XX additional rental being to for miles noted. same was quarter per XX%. $XX.XX increase rate presentation, of are of driven otherwise earnings this XXXX. in and to with The from Throughout rental revenue as be which per transaction, of mile. the compared the the reported going transactions the share compared year last unless saw we for yesterday, the more majority a revenue year, quarter of and we comparisons an both my growth quarter fiscal of

growth seen U-Move have October. the continue revenue for of in We month

last Capital desired. million number in We from at expenditures from new the months that are the on selling. retiring we’re rate mentioned, X Joe but, first were as also year. of $XXX slower manufacturers rental up taking slowed trailers That’s trucks our is million than what of in X and the and new trucks months. $XXX for equipment first We’ve a

possibility Our acquisition year. of relatively this growth year. over this original is a the skewed of half half plans There were having of – heavier first towards fiscal good the activity relatively in heavier second having a still

and we had given plan the in increased customer size since we to of line the orders would demand, before purchase. activity with initially started, set available However, our year more our to equipment have the fleet be customer

the to sales a for do go strong. fiscal and the net availability we to could of months and trucks $XX up that’s but total be to Proceeds sell year, retire rental for X million, self-storage retired decreased to of subject still XXXX for is quite continues in that remain of CapEx first from expectation equipment these choose $XXX Demand frankly, Our fleet million manufacturer in units or this steady. by around the the million $XXX market for down.

million, Our of XX% count to about were September at occupied while same units the increased occupied up a the time quarter. by unit the for improvement end XXX,XXX compared revenues year last is $XX which

second year occupancy quarter of the XX% rate quarter in for to the XX% year. quarter Our an the this all-in last from experienced increase blended in second of

at last time. fall If being under about under the this versus to at these years, increased basis stabilized of this the count XX% XXX you last locations’ look the subset for that year group those points also increased XX definition facilities many quarter of XX.X%. how X that at by definition have this properties occupancy This of of occupancy qualified

seen real estate increased also expenditure X rental first this the million revenue per at to up $XXX related spending to from have months. $XXX We was million improvements year our Capital rates. That’s time. foot last for indicating average

million quarter. of Moving That’s and still of approximately at continues our square goal we’re improvement accelerate And escrow. been saw million by with doing success development segment XX our in this around development In saw feet XXX we that. In million $XXX across an expenses October, to X.X at to spite increase in of seeing currently Operating the new acquisition We some approximately and our Our increase deals $XXX operating we another properties. investment, has on XXX an in Operating margin. $XXX pace increased closed for $XXX earnings of million. increase, to pipeline projects. million currently have Storage properties. the

repair and of the fleet approximately Our operating personnel maintenance, half increase. expenses, and accounted two largest for

costs, a other maintenance property and shipping and items. a the may forward. revenue including quarter for turn thereby to and our the narrowed margin negative taxes maintenance during extent, the improvements, bit the start positive to buildings in increased, less first operating of the of personnel, saw going second than increases Several The we For equipment non-rental that categories lesser are margin. helping fleet impact quarter

We and liquidity position. continue our to improve cash

at As unsecured in of with totaled quarter September Moving XX loan during note a to that Storage in a into cash we was The existing average notes Included rate purchase of our weighted facilities million and rate fixed interest from placement issue year, X.XX%. billion. senior segment of was that agreement the this along $X.XXX $XXX entered availability private offering.

the support our Debbie, locations, of to With U-Box and with use expand to intended self-storage that, our begin space Our to call program. of I the question-and-answer of presence hand to would these operator, is add our funds primarily to in back warehouse like new call. the portion

[Operator Instructions]

ask questions that come Partners. Artisan in and ahead go Craig Inman beforehand have from will two I Debbie, of

is pricing? production thoughts The first weakens course, what management having question management trucks how assumption, truck comes pricing of simple rental views is would influence, production as an environment the be back? new pricing too am so assume the on Would current I sure on if is constrained any, this of helpful.

number. I reviewed But it $XXX-plus exactly – had rental. I $X,XXX overreached rates lower re-priced pricing. they Alright, And our the I a and was will at and a on $XXX. $XXX real very that. back They Pricing I have push budget was pretty on are – the the X paid above Monday. hard is the rate up. what take that done for is I on found feel customer years same previously for press that had rental thoughtful

are said pricing my course, people of So, discounting. we already

kind it’s an of here. So, uncertain journey

course, our are go to to cost equipment going up of they Of are continue and up.

know on But better be are we are over understand any passing the don’t in years. some kind any cycle, costs an than of considerable inflationary We suppliers vehicle next of from to X you. that probably they but I our going

So, don’t it’s believe saw impact had and pricing, from that impact pricing. particular from any whatsoever. I sense our going probably I to already competitors the on prices think has on this transaction some have made either some they I

of lot So, I didn’t frankly. give weight, very it a

think will pact think honor customer we down and inflated to availability. still the that’s But I because try going what the have is prices of will I that. doubt increases, to provider a try to I low-cost increased want a storage and it, services, see as household be to we mitigate moving come we to costs, availability with

with am of increases course, – the vendors on have on is cost on been obviously what increases pushing there Now, I various more on is that, served don’t we we that but And I back price this, give horizon. certainty not. our all of sometimes up seeing are successfully, lot a sometimes

an of overview it. kind that’s So, of

the Great. sheet, balance alluded Cash that positive. you on What plan And for which then kind Jason, stacking all the second is is to up is management’s cash? of question, this.

to has back goal been our So estate. into real reinvesting begin

going support now, conversions of portion X-year, will capital around, Kmart New we we the the several placement the of with sale type to York working with X-year, next to of Chelsea, This was made entered time last organization. XX-year location. round look the maturities round idea which around infusion be this that with lot development help a this and is time versus our the a this for like push development development a ago And the ground-up more which next into largely So, is debt, XX-year big years properties. of private from have capital had of

fit So, of that of we thought that funding type better this type profile. property

Wilen question in next go The with Please Jamie Wilen queue Management. from comes ahead. Okay. the

and outcome. effort It’s quarter. the hard outstanding Hi, the work amazing what produces in

gone have enthused literally increase continuing? June in am basis September, up strength? March On September that is points the with October kind it’s self-storage straightforward like to to XXX to I it of shown increased – And progression. rates that looks a side, from occupancy June and March your Has

say The consider going product I not we yes. what to your am is, I are new online. Well, bringing is to question, enough reason

online. absorbing We bringing are faster product than are we it the

we if So, the don’t be product will more party bring over online.

So, hard of to rented, instead percent. occupancy Jamie, real rooms we run a

to rented No. to consistently. have to have news to that everything, occupancy don’t have it have is enough inventory see will we in our bad at raise percent, and the the The units pace. we we good present but course, it growth. will And but continue Of bills pay is enough occupancy news constrain grow

inexact It’s balance but little So, we is all it’s the with that are than a worse was economy, other years to construction this trying herky-jerky, ago. in normally X because nonsense it out.

products have occupancy, a have plans back occupancy present occupancy, expect online, Jason around been might more that little them So, and bit. All But – we by the has more whatever online. to apart then very you and and are while two products, to kinds have bring falling our cause a put your this, keep slip of together. to that tried to all it’s significant late and stores spring some along I we able

doing this of at time, lot a are So, we build-outs. X Phase

have. Kmart we XX%. only aware of Many the them, stores are out we of You built

to build them, continue on-site. have the So, winter that better and each flow make and cash we been rest can will we of will property of afford out better money through the well rest management enough and the be provide which

So, about time, which they is that murky, spring, half by to part pretty picture this although be round built total the that more bringing ups a The part no several easy at little is on see. have done doubt. lines late are we means will of

So, view. that your appreciate just bit is it’s a see more little to need kind of different. you and so continue I to I it My I can grow. view – inventory I try

numbers? rates rates look rates rental with storage realized rates, year-over-year by that as their increased increase by are the by hand-in-hand rental in XX%, obviously As improving everyone I and LSI goes occupancy have similar for public industry XX%, your at rental

No. And real a They cut cut year a our showing prices, bit X.X and ago cut they March We March mirage. is of Well, prices. ago little prices. solidly. never they what are years a

to a what have you we a know like them don’t increases, is know seeing no, something comparable not on to XX% I trend, comparable. no. what So, trend but do is their on are X-year X-year

being other U-Box that I about Was Okay. a contributor to reading most significant it the the million talked you – am correctly? $XX In XX-Q, increase. revenues of

Yes.

you could give U-Box revenues are today? handle us And a on what

as of competitors that of I that interest starting would enough break where see with It revenue until a movement to the But mentioned public our be space to we can revenue report revenue be largest short-term be is the of of in there would income you it’s number what else in out. because programs that. any income be before, it’s are yet to there the blend since out. require not no information, big required other ancillary XX% revenues our us number other in And Help. like kind are on other would total who it by sort Moving going to some from broken that of It’s component from It’s our to far continue cash.

right is now. what’s in overshadows category far that So, away U-Box

And is corporate point? increase than the – this increase greater at their there percentage

Yes.

And case? everything to margins close that their historically, corporate Is pretty in you for else. are said historical margins all still the

that choose and expenses we It’s we how heavily. sort allocate game allocate of how very to setup, tracking internal have of that we

couple a inclusion helping we running overall this point, it’s of as underwriting the typically storage certainly the it’s new economics of points of we But So, is U-Box our back. certainly are that are finding offering. the projects, moving and – at

fueling you moment? Okay. the And really or the advantage make build being competitive see for give greater room I a there? much U-Box in sure you seem growth self-storage you when a component have – as And you to at U-Box the U-Box. new have those, all that that in you opened, Does is you

it. But I yes. would want say consumers just it’s ultimately,

are I a there you is requests. want markets get that is get their say could at have who try to it to need fair this where big and to it. we mean a We to honor of kind really lot to to you of them going country. people price. into a There It’s just a move

But the no think extensive being. alternative. has do more as customer I a we I And a it get place. extensive as viable see sees the not can we network one a today say as work could network, that as more is that the in I our

on we physical part grow we that, And number there grow business. rental cities lot So, business. the to – to and those a moving market as will we business think presence is containerized I But Truck have mature than a in to truck numbers to hopefully, the rental establish see faster towns. room probably. more and market, is relative that much is are do is accurate continue more things. and share continue from my There just the in a grow no of there the of of experience

And while lastly, Is And you great you seem anything are as Joe, profit as can the don’t the do profitable, margins business in in the Okay. not Canada, there States. the not very, you in self-storage the is are they very that future? in so just possible much the approach up will Is because build-out in to U.S., have that a margins of Canada. is – in of there? Canada logistics do can those what the future or in

own Everything is different are I distinct and it’s no very think little we country that it’s its kidding. proud characteristics. They possible. bit our – as a of are of

presence effect, presence. We as year, are months. storage to of the prohibited our for September predictable – we was have Canada going to okay. unit almost Until That strong from XX don’t this had relative I

on before got I to since hard impact months. Canada personnel into So then, any have other is aggressively. product availability have get and I And have. able my XX management think we Canada been running probably would But have and that

really very are wants hard there it. through. a see of up percolating needs ‘XX States. Canada consumer similar United you But So, the this The and understand and the at deal. It’s We getting of presented. stuff and basic question getting the are really March product maybe in before we

it. Got

Okay. Outstanding great job. number,

Thank you.

This concludes management any would to remarks. I the over our session. turn conference question-and-answer like closing to back for

stores our for one I repeat you just hope support want thank and their from my of I request. go everybody into continued to time-to-time.

say just our that and the somebody of are as go our fingers you when into you you one simple. good of We them work which go or Tell if an are it see they doing good appreciate I you only doing. a stores But my investor stores, job. you our course, last because, one are of when as visit, that cross I always into is

We are counting on them.

Look to you. comments? thank talking in I closing again days. So, to forward you XX any Sebastien,

everyone. We in look with you you speaking to forward February. Thank

has conference for attending today’s presentation. The concluded. Thank now you

You may disconnect. now