U-Haul Holding (UHAL) 10 Feb 222022 Q3 Earnings call transcript

Good morning, and welcome to the AMERCO Third Quarter Fiscal 2022 Investor Conference 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, everyone. today. us joining for Thanks Welcome to XXXX Call. Quarter AMERCO's Third Fiscal Investor the

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

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

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

Thanks, Sebastien.

have since still to customer moving is Demand, are is work stressed. workforce results. both experience. for COVID My quarter on long I continue unnecessarily of and We for to cease. storage our the fortunately, mandates They good our products. strong ready financial another

X there X pipeline disruptions and for vehicle likely years. you repair are As well aware, impact or that will so are do our in the CapEx and budgets

summer for Oxford the very to has While relief deaths. unpredicted this, Like this actuarially insured is hard many OEMs are insurance suffered working unlikely. any life companies, resolve

support of will appreciate well liabilities through and we and our this. your your are assets encourage However, use work services. and I matched

the interaction. you good I'll as that, to it We are through Jason turn With to as next over our customer walk numbers. only

Joe. Thanks,

comparisons third third versus share the my fiscal So quarter quarter compared Throughout going 'XX, $X.XX unless the third this a period to of year to the otherwise a of as quarter my for same in for presentation, XXXX. are noted. be earnings yesterday, $XX.XX fiscal share reported we of

a very of equipment may Regarding revenue, quarter, increase you rental third million. strong year, we posting reported an recall, last $XXX

see $XXX were upon can from approximately with that nearly or million. you As filing to that an able increase this XX% build yesterday's of quarter we

rental greater next market, and mix of revenue revenue rate. growth have improvements literally Improvements per with Within Even quite we some and in we weather, revenue see good our in continue mean transaction. and headwinds a in the January seen transactions continue to when say we headwinds, to month. poor to extent, into one-way the for in-town markets a be U-Move transactions mile per continue I

of year. to resulted we customer fleet we've the the compared it. months that New rental X equipment the number has to million equipment that's growth not slowed rental like new the This last the Capital continues first we In response were demand, this units and first sell. pace of retire the year. the acquisitions of to in for and of see X flow rate at months, expenditures that on would just million into new fleet, $XXX in to $XXX

degree just equipment less Our was with a even even in third for first months. been essentially expectation gross is to volume X quarter $XX equipment Proceeds manufacturers. increased CapEx retired million total a to an for was this sales in due the this surrounding to reduced rental is months. for of XXXX, about the uncertainty net $XXX million by where from it last with being $XXX of XX But for purchases Sales months, of availability year. of sales fleet estimate this the so next million fiscal approximately of X there has the

sale of quarterly used that would somewhere not of $X.XX to Demand from close self-storage fleet. estimate EPS our I unusually strong. retired $X.XX the for truck prices sales However, weakened. improvement have has been came

Our occupied million, year, up continued the last that XX,XXX by same unit a about into compared trend to increased which count is increase. end time were December the and $XX quarter units XX% of January. the at Revenues for

define points or cohort XXX been the blended increase have from an to that rate occupancy of of XX% years. I'll occupancy an last increased for quarter X subset for That year. as these average and that XX% XX% third basis the properties quarter this in to locations all-in stabilized, at that of better occupancy facilities last XX.X%. Our have The experienced of the year

million from projects. investment time improvements development XX largest demonstrating the revenue Capital We $XXX more across had to We've increased investments. our the up about last was spending $XXX that year. foot in also expenditure second first had X Spending million rates That's fit seen properties actively same pace for quarter our in was average well. related indicating ever, real versus the to per have year. square million months. approximately last the that third year estate this feet X.X XXX currently definition increasing of success at the quarterly We we've as

to Within increased building have that XX around segment our to to somewhere operating own, of And not that, but Storage close XX properties on. at $XXX purchase price if close we quarter. $XXX on have have to saw in Operating escrow, million we all we $XXX We for Moving the XXX by somewhere million in them. increased we properties yet totaling expenses we million and elect started million. $XXX earnings

maintenance operating Our that fleet and expenses, for increase. about and X largest of repair X/X personnel accounted

of in of our that increased quarter third last a percent in our Several of other year that categories almost lesser our of costs and a were taxes. even margin operating last was As extent both one Keep of third better ran ever. third quarters revenue, property to shipping mind the with year. quarter

Not plan life is insurance, attribute for risk we you over operating As This quarter. this can at COVID. what is when million effects mentioned, hope our due losses $X.X expect issued to diminish were company or and insurance mortality those down you Joe a to to earnings time. that largely would life the reasonably for,

impending position our improve We and to cash lock borrowing continue development investments to of next cost our and in this anticipation cycle. for in liquidity

of this billion. had are December loan XX, of segment $X.XXX we Storage from availability of existing year, approximately and that Moving facilities cash As and the

entered During note the quarter, million rate those and to The in into purchase in X.XX% a offering. funded weighted placement is agreement senior we January. notes they another rate on unsecured issue fixed average interest $XXX private of

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

first [Operator Instructions] will from Ralston question The Steven come Zacks. with

is year, fiscal pointed -- this was Looking at know unusually we especially which others. has quarter, out strong. in line just past, But seasonably third the than that you the weaker the last with been quarter quarter in

So the still underlying fundamentals that strong. it a seems proper rental deduction? like Is strong the and the vehicles and demand is being the pricing quite equipment of

that Yes, wide and are moving Joe. People we're of reasons, this Absolutely. fair tremendously is share still our for variety getting business. a of

it any take it's color more you're like really upping because your a in as you're And this well that might resolve least acquiring expenses. know it to this. managing it vehicles at years you pretty say you it best I X maintenance seems foggy And through difficulty you managing outlook, add like can? to but new the seems Can

at piece Well, a I you what its don't of can is you on you we're on you the run equipment. an very amount happens at miles working if of But basically run think life. hard end believe when And you basically it. you're have buy it, of

So is way bring to bit more useful bring we're useful running life on little essentially the their equipment in more a shortening and lives more miles the you is equipment.

undershoot those wearing more this in we X,XXX we next year, by if normally need year, that So to we trucks addition out. trucks X,XXX are

manufacturing just at build get operations. of that point, to So boxes little a we're assembly now, about of the and on it that's trucks, because difficult Right but problems it OEMs, the addition done. quite we our not becomes getting with done XX% a box physically

as as chassis the access stressed highly to get be they'll OEM. we So soon from or

couple problem. out, the So been it. it We're working at of this to and of I've the it. takes bubble a understand work years through We that's before, kind

much facilities because storage And even and in rental how it's tackling business, the you the seen blocking are time spending expanding quite doing more this though I've active? you're in time been management's --

balance I've the committed a and lot so of management time is working to far. that, we're out

same be Of distract course, people do them our I I specific. get as as customers, geographically moving functions you both soon to have from careful don't

So we're doing okay.

to able just we're that. XX have -- thing we have to add getting in stuff about want this or last We I replace ginned and up. months, this to quicker close than being we stuff the have deliver

[Operator next Management. Instructions] with comes question Wilen The Wilen Jamie from

fellas. questions. A Another phenomenal quarter, couple of

the months quantify able rate you you've to XX achieve percentage-wise? Can self-storage. increases over been on the First last

is that rate and Sure. at Jason. still on This of different to stabilized. trying stabilize. a I So to a have up we that that don't activity right? break properties They it quite -- have properties pieces, then couple are are into of the look portfolio see the you you those, have

-- per or revenue compared quarter to X to months for close year. the is for probably average up our foot I'm properties, stabilized last sorry, on So X% the

a last what new you we're charging versus year at If probably on also asking little rents X% about average up. a over this look customer that's year,

to in occupancy increase and to increases, frame is your know for rates now? unit used but years, it what And time going I what down to the rate Okay. rapid X stabilization a reach given is new it now? be

of Well, when one assuming these, X the investment still we're in we're mapping out years.

seeing years. in However, today's X.X, think I in ramp X of some up environment, these we're

represents really Okay. cap, as at similar we Storage this the and to an is self-storage as truck $XX entire what equivalent we managed market yet look And billion business rental as is our in How cap And owned XX% our revenues. they a far of only competitors entire almost close value worth are units well. what Life I rather when XX% similar we at revenues have and business, trading of footprint in units. market that almost gap a look U-Box if have our the And for. our company has that have obviously do I which self-storage nice to

more It's Jamie. question. cap I'm have to figure that key level, discussed of a what little is think the at a driving up now, on little driving news It's are business gets project, way, that. is you -- so put the kind strategy. And but how good products selfish the can work Board hopefully, spent question at we more there a questions is are your year my level. And trying okay? what -- rate is these of that we'll right question more we're see. Board I and getting those a is for just more the I'm regularly do out, questions, we But on bit time some We're we'll entirely to before this almost bit long-term other and

So I and moving it. I'm an shareholder on don't myself to going -- like to up. so cap market consider determine to cap. like our are see We're But I'd market you going we're I moving a like what's our expert

Okay.

XX% volume front, On when if -- company? we to incremental of own segment? year, become that enjoying it quarter, growth this read the margins I think in the are how to U-Box rest I And versus the when the last profit the does had correctly, its relative U-Box close

large as portable management any Storage it is This statements, separately Moving are. overseen publicly. From From and else segments Jason. the reports one a is other their kind perspective, of financial business our of no being

I right do we that would We're now. XX-month revenue is, a not that. to when it for of XX% requirement think, Our period, becomes close

say, of point estimations margin. a it's these overall close would it's that the challenged costs. with has it's component across It's stand-alone freight the Regarding and which at margins, for some estimations on programs X.X operating X the year been the of which years, that in freight the business that margin. positive of is country, some to business, this hard. say rough X about within from We've big a or costs very Otherwise, and where how boxes costs it's component of shipping overall last but business is one-way bounds, a we we're move allocating what Storage apart percent we're a these like it we've revenue the cost quarters the to program higher Freight of a collecting, we over, end operates have basis, talked up. the been historical I it it's at of XX have on of years. out really have that not this look but it's break what internally, last paid as

had on your XX, Got rate it. there's truck rentals, to X marketing at -- to something your of the give scale somewhere more if north months. stock I share of you self-storage, digits. $XX And marketing back go you earned X your disconnect once like XX. give U-Box, through XX, on and marketing I a I'd on marketing you on value And of scale to double I'd But the on because X a in when just we've would company, the in I over look lower a to

think it's least And limited. volume start really a time on quarterly instituting several I dividend. share basis. quarterly our at dollars regularly to a is a trading Certainly, somewhat

name trading $XXX of I more create the corporate a reason think do and think change you've that family built $XXX to split the is within X-for-X all so very are I We markets. just value as prudent and some well more to us see it's I little it real of mine time do to as shareholders. these And a stock. your U-Haul be stock steps right we'd time these no world liquidity for bit the a steps And create north inappropriate still and why the be and as trading recognized are to would easy, well. U-Haul to take

sometimes there, you my competitive may penetrating -- hearing works. I'm and Well, be you feedback

So seriously. I'm taking this

Okay?

today you've been and nice look tomorrow. a on to And good. in more a Very this remarkable job to profitability forward manner business. business you're managing able It's enjoy how the prudent grown and

with from comes Partners. Craig Inman Artisan question next The

to in OEMs in business, I'd to to all you terms really migration How would combustion much that One operate the more release the product the committing there thoughts if the be use? mentioned of How the resources there, a more would Any Joe, press electric. thought of becomes great. the that. And that engines your of electric? I throw you hadn't evolution, fleet in about think do about

product us. out Presently, lot there one. no number work a There's is That's for there of talk. that

There's behind and Of mechanical course, as tremendous political these it, talk the follow people. quite much we visit with but not reality. momentum

country is, period long point point, get to And My think see some this developed you'll the that of may well very a suspicion is do you mixed the it. a a with we'll at I can mixed where So fleet. period that long of the see whole in fleet.

to result we're investment. you the In course, have end capital is fuel. basically, Well, we'll vehicles, there's And buying time time. of so spend is more opportunity do that. upfront you electric But the fuel the more not every on and regain our it

not to maybe of say, local electric XX their -- route. I They exactly don't minutes manage much vehicle know an about know it routes UPS they I'm can got realistically. coming we're down know they've become within mileage. how more sure a it their day. So is, They are in, early because quite it. delivery know got they adopter as eager man a They've the

the So there little It's the -- isn't highway. yet. we're letting a people technology go just down

it don't push our have great We from very offer closely. to customers that. So we're a monitoring

even lot a some you of the that but at I to miles. think into is our to to it customers truck and the have think encourage wife the And truck. but will -- economically it, drumbeat really want certainly you if there's feasible, becomes prototypes, at XX isn't there technologically the something level, hands no and ask, accept our us electric customers concepts, they for answer is electric move of consumer and my rent. There's why there point put don't an you they're I no did there's them would

when do going it. it's totally a But take that a So There's comes, of it also redirection infrastructure not we're comes, diesel capital big to gas The electrical going whole that and are issues the timing infrastructure. than and different. in bunch is different to infrastructure. until totally

have UPS say, its back again, they I'll Our fleets fleet. vehicle what a people bring to like, home their to be. some because Well, to going let's idea the don't they're its typically managing and think can base come is base real I condition of group night, they use every back of home

And a strategy gas refuel with is to is how so it's provide like the for they're then X not it a they can which XX-minute or going engine. batteries, operation these

it lot but It's of monitoring as we're speaking there's far So a uncertainties. we're of and muddy, the with very as likely know, most prospects. I

have vehicles technical some electric in our We center. small number of circulating

now at looking minimum. wide to lifespan our Normally it's eyes big And going so muddy. happen to you're truck, nothing than is when truck, XX-year a keeping buy we're But we a X other a open.

X that's to what we're cycle today, are yet. very And so When time. we to as going with Unfortunately, with, refleeting there, try refleeting kind I buy I be. have and that of specific going I can what happening be but I as to XX-year be trucks to that's be uncertain at this into peer to with, very, would happens, not it's about it to the

color. Yes. That's great

part the as where not more is the electric time. point -- which hurting is of on are now, committing so trucks you you're the their to not this in level -- for OEMs at the all. the at That's the to produce issue aren't colliding those resources And ability seeing getting the

don't don't know a really think that. view that. have I suspect I but I of that, I

Of you very at somebody very Jim very, the very, course, he's when to level get Ford, on electrification, the focused or of Farley focused.

whole and everything. people cadre buy the another actually of has plants parts the he and a run Now

this focused the just present be There's and they're products, to conflicts far, going going normal. change. So -- they've kind but to still of on is that's still

I'm today. There's electrification. very is our high focused company. she at responding interfaces us at it. the affecting necessarily again, personal level, with levels, this on pressure the But Mary and tremendous So for very, political I her on her she don't to is But think not Berra that's very

that's are she's the where her level of not view point specific parts and So commitment, getting But we plant bet -- us. resource of resource not labor impacting committing of shorted. at the point at it's or view I'll yet

puts up know mean a to it's still few and years been level shape ahead fleet you've experience I buying replacement. mean, I it's average? And you've was a newest you -- but the on pushing the good still Okay. ability, and management a from be of out customer later, you're still I obviously ever which buy it in been, in a able haven't is where on it ago, is position the trucks, wanted you the obviously, pressure shape? in to

I we we some know keep do very And online. or off to at input burned can it's are looked would caloric We doing Well, better this getting the that. now, you want whatever continue. back to walk. And build we to this a that's OEMs we the for into fat system. And then not physical I'm -- we're everything call right we as to long our excess And have eager fat, required come about back we've of a where down. -- it,

rose. if always the thought of for more thought would it's problem rainy I'm to something As people that very instance ever I reasons disruptions a like a we thought particular And I the of which this COVID day fall, demand comfortable, day. kind fortunate feel if one trying knew scenario but through. coupled lot wasn't demand, the had always come, rainy poster away I -- in No going we've to expand vehicles buying for who had had and far we a that put is of as not these was as were demand we then those with that it. one a ever

that. say capacity four lot So we've our we've had months, of was a years putting in. fact fleet. But carrying for right, almost and now been you're we're or But not lot unused would in ago, able more last XX we a to the I do much, pretty I

the replacement required replacing -- In judgment. lower a it fact, replace than in we're our

little up that Now network on a and with obviously we've and can is a ended and repair push there's some everybody have you we big -- bit alert. high repair

but I own, the that OEM our fall. I would have time. really like see the some to relief And -- holding from some with really by we're So they'll some prospect, by there's

and just right? then in but is side, X.X Is XX. then XX And million of development, top the on in so got owned to Okay. not self-storage right, then the there's that escrow feet And this that properties started XXX I building.

Yes.

Okay.

properties that So XXX in isn't number? development the

No.

well than no. to land is No, various because sure and just excuse is uses I'm very all as have totally -- it it uses process which process kind at not and anywhere. stage to COVID permit, unpredictable me better But a problem can't very go building a I. actually the process. And is you use, Land cities literally is -- fact, land in these of that not we're frustrating used you which so know

will Some walk or meetings, to our let could few us jurisdictions. right private we experience, but the ability department plans and you now them Zoom into existing talk of isn't do that. a most a the In do and hire set building in over always cities for just process prior lot of

could simple things pretty You some quickly. out iron

So become time more it's just consuming.

-- size. those those Yes. behind about And all are a that there, similar the development pipeline properties they're Okay. And

or in smaller about them are of getting bigger So they average? could terms or you think

the over months were My ago. is experience not Most at XXX% moment. properties commercial commercial Well, commercial of property. this XX properties

you if paying $XX, were So paying $XX. you're

paying If you gone the $XX, It's $XX. paying were to you're moon.

don't know to that the the is size cost Now the that's up going going go facility. only of component I But is a with the of dollar up.

a going little the a people and doing game. attempting to have have the we But the we course actually for gone we're going always. places we're size to who have economic or property as be that halfway out Jason time so is then believe has rate course, what the pay be to up. years we're look to and is XX do be And bit to things, on of to has been couple and the of we thoughtful customer. all up to judicious open, way just out guessing we're not judicious at going and of we're very but we're Analysts on attract going how get to So these which predicated figure are the and this trying not maybe projects of

the And favorable you is in? had lower that the obviously, Does the you Or to more of more with the allow favorable, aggressively? and than rate other all hurdle your with financings going keep you at private same all Does rate placements points. kind bid that cap do rates?

have during the a can We anticipation kept the same it straightened as XX-year period hurdle rate financing rate we we that this unless it on we out make we not our a property-property most we future. dive can on environment a the high a because take encompasses, in think out conscious favorable one basis we in of decision straighten that may think get we'll such

storage -- that's statement. They're purchasing of for already a or our So not project. XX% competitors competitors expectation. percent the would the taken for there. kind They're of my the buying at I lot We're the -- That's interest so assuming income -- truth. say, well, of X big of -- life not plunge. have a our That's they're

my be So but -- expectation. then that's Now and okay? right, watch be me wrong not

puzzled me, But is is years done, school. taught I went certainly planning I was all rate the to see of it's to within different that Our to a it level. next going none we're what bump XX when

I and the X haven't. wrong. up rates the be would multiple could they thought years over times last So go I

people that But no, haven't forecast from miracle has dropped we low. some there's other making buying stay maybe rate, kept haven't. -- that So some acquisitions us our and

Okay, want miss a don't strategy. different I our that all can opportunity. about with every you, slightly was That's to strategy. But tell I

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

everyone's our the appreciate and May. I after forward Well, to you, attention questions, with results year-end report today you Thank we everyone. in look speaking and we

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

may lines. Have You disconnect day. now a your great