Amerco (Uhaul) Announces Earnings

For those that are invested in the Uhaul Investors Club Amerco (UHAL)has announced earnings for the quarter ending 6/30/2020.

While earnings were off a fair amount from the year ago quarter the balance sheet remains very strong.

Earnings available to common holders was $87 million as compared to $132 a year ago as revenues fell about 10% from $1.079 billion to $987 million because of Covid 19.

While earnings fell the company grew their cash balance from 1 year ago from $494 million to $825 million as they slashed their investment in new equipment. I note that the company has huge, non cash, depreciation expenses (last quarter $165 million) so for the quarter the cash flow was quite strong.

Amerco spends dramatic amounts on equipment–the year ago quarter they spent $847 million in the quarter as compared to just $249 million this year–wise cash management in times of uncertainty.

I do note that the company shows $2.3 billion in investments on the balance sheet. These investment are for the benefit of their insurance divisions and generally is not available to the other businesses.

The SEC 10 Q can be read here.

Disclosure–I started investing new IRA money in the Uhaul Investors Club about 2 1/2 years ago and currently have around $35,000 in their notes.

6 thoughts on “Amerco (Uhaul) Announces Earnings”

  1. Appreciate the update Tim. Overall, I believe the company is very well managed and pretty conservative when managing their finances. However, I’m disappointed they have not been offering any real estate backed loans the past few months as those notes paid much higher returns.

  2. Thanks for the update Tim. I continue to participate in the U-Haul notes. I have been sticking strictly to the 2.5% 2 year notes the past few months. I like the idea of laddering their short term notes over a rolling 8 quarters. Helps settle my nerves during these trying times!

    1. I did a 2 year-4 year -8year
      At first I thought it was not good for me when I learned they return some of your principal with each payment. But actually now I like it, lesss risk and you can see your principal go down.

        1. Artemisa – yes, you will receive a 1099 Interest statement at the end of the year if your investments are in a taxable account.

      1. Exactly Max. The quarterly payments received are loan payments with principal returned with each payment.

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