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Earnings of Interest–At Least to Me

Some earnings that are out that are of interest to me (and maybe you).

Amerco (UHAUL) announced earnings that almost doubled the year ago quarter on strong revenue. Earnings plus non cash depreciation charges amounted to almost $400 million. Those of us in the UHAUL Investors Club always like to see strong earnings from the company.

CHS announced earnings for the year ending 9/30/2020–off about 50% from last year. Crude refining was way down year over year while other segments (i.e. ag) improved somewhat off really low levels. The ag economy has approved very substantially with corn and soybean prices strongly higher in the last few months–maybe it will help the ag business for CHS.

VEREIT (VER) announced earnings which were way up from the year ago quarter. The year ago quarter had a huge charge ($832 million) for litigation which is now behind them. Rent collections are now at 97% (in October after quarter end) while they were 94% for the quarter ending 9/30.

11 thoughts on “Earnings of Interest–At Least to Me”

  1. I like home cooking……whenever the Cenex guys come around to fill our LP tank….I am proud to own CHSCL

  2. Thanks for the update, Tim, good news about VER. I recently beefed up our holding in one account and opened a second. Steady payer.
    And thank you for the MITT report, Mr Earl, noticed it popped but didn’t have time to look for news.

  3. CHS is kind of an energy company cloaked as an ag co-op. Last time I looked energy accounted for less than half the revenues but well more than half the income: diesel, butane, and ammonia. They have their own pipelines, refining and, of course, an ethanol operation.

    I took a look at how the preferreds weathered the covid storm in the Spring. Except for the FF issues I don’t think they fell below about 20-21. A farmer friend and I believe that the preferred may have a large investor group in their farmer customers who are reluctant to sell?

    1. They also have a ‘large’ volume among the many fertilizer delivery systems in the US.
      That small CORR-A position I took the day before the Stifel downgrade was certainly NOT auspicious. I worked around analysts in the industry for a while. Seems most were four year finance grads who were not married, never bot a mortgage and finally had a corporate insurance dental plan that paid for teeth whitening along side a visit to Jos Banks. Seems they were enamored (read:confused) with the financial permutations of the current Online CFP program paid for by the company. Now that is a tough road for a lot of already smart people, but they have to find a way to keep their job, get a bone by pointing at rain clouds and predicting hurricanes.
      Life and business happen through political terms, seasons and commodity cycles. I like my furnace to come on. I like a well maintain house. I am holding this small position just to see if MY prejudice is verified, or negated, over the longer term. I have seen the enemy and it..can be… me. Investing long term is a tough minded practice. My main critique of myself is taking profit too early instead of using the tools I have learned about in my OWN, personal CFP program. Knowing myself is part of this work. Pete Rose only hit about 6 home runs a year. I think most people on this site come out of the same lifeboat.
      Happy Decision Making! JA

      1. Joel A
        I’m in the same boat as you in regards to CORR-A.
        At least we can enjoy the musicians playing on the deck.
        More Ice?

          1. Joel A., Pfizer will have changed the outlook in the REIT and energy Industry.
            One would think that REITS and ENERGY companies will see better days.
            I think REITS are underpriced.
            What do you think?

    2. Thanks for the info on UHaul, Im invested with them. So far they have never missed a payment, lets hope it stays that way.

    3. Potter–many years ago I researched the CHS preferred holdings and the 1st issue they ever sold went to members/owners (8% owner)–and while they could have called this issue they instead changed the optional call date to 2023–originally it was 2008–that is what is called ‘home cooking’ for the benefit of the members.

      1. CHS owns a 10% interest in CF Industries Nitrogen LLC, representing a $2.8 billion dollar investment. That $2.8 bn
        was raised by issuing all of the CHS preferreds (except CHSCO).
        Annual debt service (actually preferred dividends paid out) exceeds $200 million annually. According to the CHS report the CF Nitrogen JV paid CHS $52 million in 2020, down from $73 million in 2019. So $52 million in, $200 million out. No wonder the fertilizer JV is not discussed much


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