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.
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.