AMERCO: 2Q Earnings Report - Analyst Blog

Self-moving equipment rental revenue increased by $39.9 million for the second quarter of fiscal 2011 compared with the second quarter of fiscal 2010.  In-town and one-way transactions both increased during the quarter.  Revenue was $467 million as compared to our estimate of $460 million
 AMERCO's ( UHAL ) self-storage revenue was $31 million for the second quarter of fiscal 2011,  up $3.2 million from last year and slightly above our $29 million estimate. The average  occupancy during the second quarter of fiscal 2011 increased by just over 601,000  square feet compared to the same period last year and average occupancy increased  from 78.6% to 79.4%. Operating expenses at the Moving and Storage segment   decreased $5.5 million for the second quarter of fiscal 2011 compared with the second  quarter of fiscal 2010 to $270 million, slightly below our estimate of $275 million. 
Oxford Life reported revenue of $$40 million, well above our estimate of $30 million. This difference accounted for nearly all of the difference between reported pretax income and our estimates.
AMERCO has entered the portable storage market. This is a highly fragmented business, very easy to get into and most players are not profitable. Some have been acquired by the large moving companies like Allied Van Lines. U-Haul now has about 4,000 containers for rent, as compared to PODS with 138,000 and Smart Move with 5,000. Many local operators have fewer containers. The U-Haul containers are 35% to 50% the size of the PODS container and do not need any specialized equipment to stack and move.

Written by Ian Gilson, CFA